Organizational Structure: Coca-Cola Company
Write a 1,050- to 1,400-word record in i beg your pardon you pick an company with which you room familiar and present the adhering to items as they said to the organization:
•Describe the organizational structure of your selected organization. Compare and also contrast that structure with two various organizational structures.
You are watching: What type of organizational structure does coca cola have
•Evaluate how organizational attributes (such as marketing, finance, human resources, and also operations) influence and also determine the business structure of your selected organization.
•Explain exactly how organizational style (such as geographic, functional, customer-based, product, service, hybrid, matrix, marketing channels, and departmentalization) helps determine which structure ideal suits her selected organization’s needs.
Format your record consistent with APA guidelines.
Organizational Structure: Coca-Cola Company
An business structure describes how tasks are coordinated, allocated and supervised so as to attain the goals and also objectives of one organization. The structure defines how an company exercises authority with allocation of management responsibilities. By for this reason doing, the company benefits in two significant ways. First, the structure helps in setup a typical procedure that guides operations and also routines. Second, it determines exactly how each and also every employee participates in the decision making procedure and exactly how their views help in shaping the organization. Nonetheless, Amaral and Uzzi, (2007) notes that organizational structures are varied in between different organizations depending upon several factors. The business functions; finance, marketing, operations and also human resource are likely to affect the business structure while additionally organizational design, for instance functional, product, geographic, customer-based, hybrid, service, matrix, departmentalization and marketing channel affect on the determination of a structure that finest suits the needs of this organization.
The practicality of these assertions is made evident with the choice of Coca-Cola Company. This agency operates together a multi-national dealing in the manufacture, marketing and distribution that non-alcoholic beverages. The agency sustains a big supply chain covering 200 nations while serving more than 1.6 exchange rate customer every work (Stevenson, 2009). The plank of directors space based in ~ headquarter in Atlanta, Georgia. The organizational structure because that Coca-Cola is design in together a method so as to suit the transforming needs of the customers. It offers a decentralized device of management, which split into two operating groups; the Bottling Corporate and Bottling Investment. The operating groups are further split to complement the different regions within which the company operates. These areas include; Africa, Eurasia, Latin America, european Union, the Pacific and also North America. These regions are again separated into geographic regions so together to enable for localized decision making. The adoption of the decentralized business structure offers mandate come the local managers and the regional managers to make decisions on instead of of the overall managers based at the headquarter (Borgatti & Foster, 2013). This process facilitates decision making because these local and neighborhood managers deserve to make decisions with urgency so regarding match up to the changes in the market demands. On the various other hand, the higher-level administration based at the headquarter gain the time to focus on long term planning because that the company while simultaneously reviewing the decision made by the regional and local managers.
Within the local offices are corporate departments such as human being resources, finance, innovation, research and development, strategy and planning and also marketing departments. The supervisors of this departments are offered powers to operate autonomously. Your decision do is guided by the vision and also mission of the company thus their decisions, regardless of their gift made at a regional level, need to be in line through those make by the peak hierarchy. An instance is exhibited when the corporate management based at the headquarters make the decision to sponsor the 2002 civilization Cup (Stevenson, 2009). Inclusion to be practiced when the company allowed the local managers to regulate the advertising decisions for their regional divisions. By for this reason doing, the regional managers draft marketing and promotional projects that were appealing to their regional audiences and customers. That is additionally notable that when the company is faced by a difficulty such together low development rate, the top monitoring at headquarter is associated in search a long standing solution. Their decisions are frequently guided by reports made by the neighborhood managers who fulfill in face to challenge meetings through the regional employees and also discuss top top the feasible solutions. By therefore doing, Coca-Cola agency portrays itself together a company that is much more customer oriented.
The company also has actually an intranet device that facilitates genuine time communication in between the managers therefore facilitating sharing of information across the organizational structure. By so doing, Coca-Cola agency has managed to balance in between mutual adjustments and also standardization of the workforce. Additionally, the action of the employees space guided by the password of Conduct, which gives employees adaptability while retaining their focus to the common organizational goal. From this illustrations, the is obvious that Coca-Cola agency employs the usage of a hybrid organizational structure the combines both organic and also mechanic models. The hybrid system allows for the circulation of info from bottom-up and laterally in between the employees. (Stevenson, 2009) ~ above the various other hand, decentralization and also standardization are materials of a mechanistic structure. The mix of these 2 is essential considering the huge customer base and providing coordination among the 94,800 employees.
The hybrid organizational structure employed at Coca-Cola firm can it is in contrasted v two different organizational structure. These 2 structures space functional and divisional frameworks which are used in various companies based on the preferred outcome. To start with the functional business structure, it mostly consist of job allocation, supervision and also coordination activities and that organizes people according come their functions (Lim & Sambrook, 2010). The framework is suited in the direction of coordinating production, accounting, human source and marketing functions. Functional structures frequently lead come operational successfully as employees room made to specialize on attributes they are best suited. Coca-Cola agency cannot perform this structure due to the fact that it provides a rigid communication channel, which slows under decision making. This framework is best suited to small organizations that develop standardized goods. Comparing the structural company structure come the hybrid structure offered at Coca-Cola mirrors that a mix of organic and mechanic structure might be better suited towards managing multi-national organizations because of the boosted communication in between the miscellaneous departments, the employees and also the top-most management. In contrast, whereas functional structure could result into disagreements for huge organizations, it might be improve coordination of employees when used to little firms.
The 2nd organizational framework that will certainly be compared and contrasted versus the hybrid structure provided at Coca-Cola company is the matrix business structure (Burt, 2012). This framework divides the employees based on the products of the firm as well as their functions. A matrix framework combines teams of employees rather than people as watched in the functional structure. By therefore doing, the company takes advantage of team work and also exploits their staminas while comprising for your individual weakness that space common among functional and also decentralized structures. The matrix structure provides a pure organizational structure that ensures control while in ~ the same time regulating the tasks of the employee (Jacobides, 2007). It is best used at Google organization where the employees work together in developing brand-new computer programs. The system is thus suited to the organization industry yet it can be perfectly applied to Coca-Cola Company. That is recommended the a multi-divisional structure would be ideal suited when applied to Coca-Cola firm as that would boost coordination between the divisional level and also corporate level managers and also this will enhance decision making.
Apparently, organizational attributes such together production, accounting, human source and marketing features are watched to influence the an option of the hybrid organizational structure applied to the Coca-Cola Company. Much more so, this is seen in the decision to produce five ordered levels to fit the diverse needs that the supervisors at the that company level (Cogliser & Schriesheim, 2010). That is since of the rising have to coordinate the functions between these organizational features that Coca-Cola agency is striving to adhere to the hybrid structure which combines both mechanistic and also organic structures. By so doing, the agency enjoys the benefits organic and also mechanistic structures thus reducing on the disadvantages the could result from sticking to either the mechanistic or necessary structures. As a result, Coca-Cola has realized rise in their sales and also revenues when the employees have actually remained motivated and satisfied. Furthermore, the instance of Coca-Cola presents proof that the organizational style is varied depending on the functions, geographic coverage, customer base, form of product or service, marketing channels and also departmentalization. These factors influence the needs of the employees, the management and also the client thus producing a have to implement an business structure the promotes inclusiveness so regarding increase the opportunities of success.
Specifically, Coca-Cola company appreciates the a divisional structure will provide the organization a possibility to operate in uncertain an international environment. Separating the worldwide market into regions permits the company to accomplish the varied needs the its client (Dansereau, Graen & Haga, 2010). Because that example, the marketing projects need to be localized come suit certain geographic locations. Again, the decentralization the the company structure allows for the proper functioning the the corporate advertisement regional/local supervisors as castle can emphasis on specific organizational functions. From this illustrations, it is made apt that organizational architecture is affect by one of two people geographic, functional, customer-based, product, service, hybrid, matrix, marketing channels or departmentalization factors.
Amaral, L. & Uzzi, B. (2007). Complex Systems—A brand-new paradigm because that the integrative study of management, physical, and technical systems. Management science Journal, 53 (7), 1033–1035.
Borgatti, S. & Foster, P. (2013). The network paradigm in business research: A review and also typology. Newspaper of Management, 29 (1), 991-1013.
Burt, R. (2012). Structural holes: The social structure of competition. Cambridge, MA: Harvard university Press.
Cogliser, C. & Schriesheim, C. (2010). Trying out work unit context and leader-member exchange. A multi-level perspective. Journal of business Behavior, 21 (2), 487-511
Dansereau, F., Graen, G., & Haga, W. (2010). A upright dyad linkage technique to management in formal organizations. Organizational Behavior and also Human power Journal, 13 (1), 46-78.
Jacobides, M. (2007). The inherent limits of organizational structure and also the unfulfilled duty of hierarchy: Lessons from a near-war. Organization scientific research Journal, 18 (3), 455-477.
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Lim, M. & Sambrook, S. (2010). Organizational structure for the twenty-first century. Gift the annual meeting of The Institute for Operations Research and The administration Sciences, Austin.