Organizational Structure Of Coca Cola

1552 Words 7 Pages
Introduction Businesses who understand and implement a full spectrum of management tools are far more likely to be successful, than those who focus on one or two. More often than not, businesses set goals and implement strategies to obtain their goals, however, their goals are all focusing on the bottom line. By conducting this type of business practice, management is setting their organization up for failure. These type of business practices are not being utilized within the Coca-Cola Company. Coca-Cola Company is an extremely diverse organization; extending their product line worldwide, working with various countries to sell and bottle that nations soda as well as Coca-Cola’s brand. Global operations require a great deal of diversification …show more content…
When looking at the five different types of organizational structures Jacob Moran (2015), he talks about a flatter organizational structure where information flows both upward and downward. When comparing Coca-Cola with other large businesses who operate globally, General Electric holds a unique strategy as well, while they a central location to help manage the various divisions. Coca-Cola does as well, and the one difference is their organizational structure. General Electric is more of Mastering Strategic Management (2016) a traditional organization, where all decision making comes from the Chairman and Chief Executive Officer. This type of structure limits communication and not necessarily, the best type of structure for an organization as diverse as these two. The Flatter Organization is more what Coca-Cola Company uses as all information flows back to the top where the decisions are being made along with their Board of Directors. Unlike many other companies, Coca-Cola’s Board of Directors asses and hold positions on seven different committees to ensure the company is successful (Coca-Cola Company, 2017). Currently, there are 12 board members who either chair or sit on these seven committees, which are: Audit, Compensation, Directors and Corporate Governance, Executive, Finance, Management …show more content…
We know their 12 board members hold chair positions within the seven committees and this is an internal control mechanism proven to be successful for the company. Additionally, Coca-Cola maximizes all three types of organizational control systems. First, is the output control, thanks to what is known as augmented reality (AR), Mr. Terrell uses this process to reduce the amount of downtime as Coca-Cola transitions their famous 12-ounce can to an 8-ounce glass bottle to increase production output (Moye, 2017). One area that has been successful for Coca-Cola is to have multiple companies bottle their products around the globe. This eliminates additional costs due to shipping and at the same time creates jobs for other nations. Now, Coca-Cola ensures their bottlers are a reflection of Coca-Cola as they represent the U.S. based company. Another example of their control is when Bray (2015) three European bottlers choose to merge into one and bringing 50 different plants, and 27,000 employees under one umbrella. The only for this type of merger to work is if independent bottlers Coca-Cola Enterprises and Coca-Cola Iberian Partners with Coca-Cola Erfrischungsgetränke receive Coca-Cola’s approval, which the company planned on entering a 10-year agreement with an additional 10-year option (Bray, 2015).

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