A Case Study on Coca -Cola based classwork
Good example of control and change management based coursework
Coursework Question: Present the detailed analysis of control management and change management at Coca-Cola
1. Control Management at Coca cola
Looking at things in an optimistic manner conflicts can be utilized to make the process for decision making much better and smoother. But these same conflicts can be detrimental once they hamper production or prevent decision making on important aspects. If too much power is vested at the top the adaptability to change goes down which is critical for survival in this present day ever changing environment (Jones, 2008, pp.229). The department related to marketing is also very important to any organization and same is the case with Coca cola. Consumers are the most important irreplaceable resource for Coca cola and the marketing department helps to increase the numbers. But this importance given to the marketing department takes attention away from the department involved with research, development or distribution which is also important to improve profitability. The reach of the marketing department can be used to improve the result for the other departments for example the company can use the marketing base to conduct specific market research and come up with solution accordingly. The allocation capital in the budgeting process to the campaigns for marketing helps to structure them to suit the local sensibilities and value systems. The research of the market helps to bring the costs down as well. The concentration on marketing has given Coca cola the added edge over its competition as they have gained more recognition and thus control more power related to bargaining. All tasks undertaken are aimed at giving Coca cola the competitive edge over its competitors and also help to sustain this lead (Keller, 2008, pp.634). They have a very strong foundation in terms of product and its popularity and they just need to build on to it. They do not only manufacture aerated drinks and sell them for profits they aim to inspire their consumers and make them stand apart from the others. The events which are organized for the benefit of their consumers are very different and make maximum effort towards giving back to the society and working towards overall improvements.
2. Managing Change
Coca cola has a major global presence and the environment is constantly changing. They have to constantly adapt to this uncertainty in the environment. The competition is always on the rise globally as well as locally. The most important aspect on which this competition is based is consumers and their retention. Though for Coca cola the competition is just not confined to the consumers but also to the source of their raw material which is critical for the manufacturing process of their products. Something as basic as water which forms the base of their drinks is not available in the pure form in some countries. That makes the situation unmanageable for Coca cola. Some of the material which is needed for producing the final products is sourced from one or two dealers only (David, 1999, pp.645). That makes the situation difficult for the company as dependence on them is high and any situation change in the dealers state would directly affect Coca cola and could result in heavy losses. The competition to get the most competent employees is very high. This problem is not with respect to the labor but with regard to the management. The company has the added advantage of having the ability to come up with funds but at a low cost as they enjoy a credit rating which is high. This is mainly helpful at the time they want to venture into markets which are new to them or take over brands which are new. The dynamic state of the environment in which Coca cola exists is unpredictable and tough to control as the operations are global. If any problem is being faced by the company with regard to the market it will directly affect their production process or disrupt its distribution process. Some of the risks which the organization would face would be like strikes, stoppage of work or distributors facing rough times economically and cannot meet the business requirements. The other factor which results in its environment being dynamic is the kind of ingredients which are used in the production process. Some of the ingredients are climate dependent and its price changes with the production state and this in turn would affect the cost related to production for Coca cola as well.
The environment in which the company operates in is very complex because of the factors which affect the operation process and how they are interdependent and interconnected. All over the world now the factors which are social, political, environmental and cultural are all interconnected. The area in which the companies operate need to be looked into and consideration should be given to the safety of its environment and its preservation.
Change Management Coursework
The stakeholders are a very important entity for Coca cola and their interests should also be protected. Many techniques are utilized by the company for this purpose and the most important out of them is alliances which are strategic (Mousumi, 2006, pp.44). Specific contracts are made with the alliances partners mainly for bottling purposes as well as the consumers. Coca cola’s contract with burger king and Pepsi Co shows the strength of their brand name and its importance to other entities in the market. It’s not that the actions taken by Coca cola have been perfect in terms of handling their environment. From some areas of operation like in India and Colombia it has gained publicity which is negative and has harmed its image in the market. Though this negative publicity has been bad but not to such an extent that the average consumer has started thinking negatively about the brand. This stands to show that the ability to handle and manage damage has been efficient and good. The suppliers have been one entity which has still not been affected by this ever changing and uncertain environment. The best way to completely deplete the chances of any affect to suppliers is vertical integration only so that Coca cola’s future is more secure.
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