FIRST THINGS FIRST Coke Needs Shaking Up
“We feel pretty good about the way the company is moving. We just have bumps in the road that are so doggone visible.”
—JIMMY WILLIAMS, DIRECTOR, COCA-COLA
At the peak of Coca-Cola’s dominance of the soft-drink industry, about 1996, the company seemed invincible. Coke’s then-CEO Roberto Goizueta and many industry observers dismissed PepsiCo as a loser in the cola wars. Goizueta convinced stockholders that cola purchases were steady through both strong and weak economic conditions, and that cola drinkers were willing to pay a premium price for the number one soft drink. Yet over the last ten years, Coca-Cola’s tale has been one of poor strategy, weak leadership, shoddy implementation, and innovation failures. Everyone failed to predict the coming health backlash against soft drinks, with water and sports drinks replacing cola as the trendiest beverages. Unfortunately for Coke,
LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Justify the importance of history and theory to management and discuss precursors to modern management theory. 2. Summarize and evaluate the classical perspective on management, including scientific and administrative management, and note its relevance to contemporary managers. 3. Summarize and evaluate the behavioral perspective on management, including the Hawthorne studies, human relations movement, and organizational behavior, and note its relevance to contemporary managers. 4. Summarize and evaluate the quantitative perspective on management, including management science and operations management, and note its relevance to contemporary managers. 5. Discuss the systems and contingency approaches to management and explain their potential for integrating the other areas of management. 6. Identify and describe contemporary management issues and challenges.
Coca-Cola has struggled in recent years, in... [continues]
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