The Coca-Cola Company is the world leading beverage organization in manufacturing industry with a history of 126 years, operating in more than 200 countries worldwide. Coca-Cola is the world’s most valuable brand in which the company features 15 billion dollars brands that includes Diet Coke, Coca-Cola Zero, Sprite, Fanta, Minute Maid and others (The Coca-Cola Company, 2006-2012). The company is not a single entity as the organizational operations required cooperation with almost 300 bottling partners globally, which is known as the Coca-Cola system (The Coca-Cola Company, 2006-2012). The role of Coca-Cola Company is to manufactures beverage bases, concentrates and syrups and hence sells their manufactured products to bottling operations. The bottling partners are responsible in packaging, merchandising, and distributing the final products to vending partners and also consumers.
The Coca-Cola Company has a divisional structure. The divisional structure consists of a set of autonomous self contained units (Robbins, Barnwell, 2006). Each division is operated by separate management and is a profit centre. Every divisional manager is responsible for all associates in their region and subsequently report to the corporate headquarters.
Figure 1.1 Regional Structure of the Coca-Cola Company
(The Coca-Cola Company, 2006-2012)
Spatial dispersion refers to “the degree to which the location of an organization’s offices, plant and personnel is dispersed (Robbins, Barnwell, 2006).” Spatial dispersion in The Coca-Cola Company is high as the operations of the organizations are widely spread geographically to regions as shown in Figure 1.1. These geographic segments are known as strategic business units (SBUs) in which all of these units must operate accordingly to achieve organizational objectives.
Figure 1.0 Hierarchical level in The Coca-Cola Company
(Scribd Inc, 2012)
Vertical differentiation refers to “the number of hierarchical levels between top management and operatives; sometimes referred to as layers of management (Robbins, Barnwell, 2006).” According to Figure 1.0, the organization structure is considered tall as there are at least five layers of management in the organization. Tall structure in an organization makes decision making less effective and information are passed from one level to another which is time consuming.
In each region, different departments are formed to help in the daily operation of the organization. There are six functional departments within the company such as Marketing, Finance, Sales, Packaging, Research and Development, and also Administration. The classification of departments is known as horizontal differentiation. Each of the departments carried out different operations according to employees’ specialized knowledge and skills. Marketing department is responsible for marketing, advertising and promoting the products. Finance department’s duty is responsible for financial record keeping whereas packaging department duty is to package the products in an attractive manner to enhance consumer purchase. Besides, Research and Development is responsible for investigate new product possibilities and product improvement. Sales department requires managing and coordinating selling program. Last but not least, Administration department exists to assist in business operations.
The Coca-Cola Company is high in formalisation as it practices strict Code of Business Conduct within the organization. Code of Business Conduct exists to guide all associates in the organization which define the standardized behaviour of employees as representatives of the organization. In addition, the code addresses staffs’ responsibilities to the organization, to each other, and to customers, consumers, suppliers and governments. The company offers online training course to all the associates in which ethics and compliance is discussed including Anti-Bribery...
References: BusinessDictionary.com, 2012, Mechanistic Organization, viewed 28 October 2012, http://www.businessdictionary.com/definition/mechanistic-organization.html
Hellriegel, Don, John W
123HelpMe.com, 2000-2011, The Coca-Cola Company, Departments of Coca-Cola, viewed 28 October 2012, http://www.123helpme.com/view.asp?id=148943
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