What Really Happened to Coke Essay

1762 Words Jun 14th, 2008 8 Pages
Introduction and structure
Sometimes even the most brightest of minds fail. Doug Ivester, head of the Coca-Cola Company for only a little more than two years, resigned after an unofficial meeting with the two board members Warren Buffet and Herbert Alan. Fostered by former CEO Goizueta for over 10 years, he took over this position of one of the highest ranked global brands after Goizueta’s unforseeable death. As it turned out, Ivester could not generate the results he was expected to (Morris & Sellers 2000).

What happened along his short road as CEO? How and why could such a long time inducted person flop so badly? In a first step, this essay examines Ivester’s actions, taken into account different theoretical leadership approaches.
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This, in turn, gives an insight into what qualities to seek in a new leader. As highlighted before, Ivester’s leadership style is best summarized by the transactual leadership approach. To be more efficient with people in organizations, transfomational leadership should be used, because it “has a greater effect on followers and collectives than does transactual leadership, which in turn is focused on promoting self interest and thus limited in scope and impact” (Antonakis & House 2002). Transformational leadership is mostly based upon five characteristics, such as inspirational motivation, intellectual stimulation, individualized consideration and charisma. Emotions play an important role in all of these characteristics, especially in charisma (Johns & Saks 2008).

The importance of emotional intelligence
Therefore the new CEO should contain a high level of emotional intelligence, because “leadership is an emotion-laden process from both the leader’s and follower’s perspective. Thus, emotions and moods should play an important role in leadership, and emotional intelligence is very likely a key contributor to leadership effectiveness.” (Johns & Saks 2008, p.329). In his research, Goleman (1998), who was the first person to adapt the concept of emotional intelligence to business, found out that not only traditional qualities like intelligence, toughness, determination or vision are required to be successful as a leader. They are only the

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