Coca-Cola Strategy Strategic Management Module

Coca-Cola Strategy

Strategic Management Module 5 SLP

Structure

The current company structure of Coca-Cola is centralized though the company is slowly trying to shift to a more decentralized structure. The major decisions in the company come from their Atlanta headquarters which the branch offices making some of the minor decisions. Centralization helps the organization to be globally coordinated and to keep their decisions in line with the goals and objectives of the organization Boney, 1987()

The line of authority and communication in Coca-Cola is from the Managing Director to the departmental heads then to the staff of the company. The Coca-Cola Company encourages team work greatly. Teams are quite valued in Coca-Cola. This is because the teams help to make critical decisions related to the company and to encourage cooperation and working together in the employees. The company believes that it is the people in the company who make the magic that keeps customers happy happen. This is why the company encourages the employees to work as teams since they can combine their varied opinions and ideas into one common idea that keeps customers happy and satisfied Harris, 1995()

System

In terms of budgeting, the Coca-Cola Company invests heavily in advertising and promotion. In fact the company spends more than Microsoft and Apple combined which are multibillion dollar companies. This is because the company feels advertising plays a huge role in driving sales of their products which are luxury products in people's lives. The annual budget is made based on the actual volume of sales of the company for the previous year, their profitability and the target sales for the coming year Foster, 2007()

Coca-Cola has their own internal evaluation system. The senior management evaluates all company employees based on their specified individual goals and objectives Foster, 2007()

People

The Coca-Cola Company has a long time record of hiring qualified and experienced employees from different backgrounds. The company does not discriminate their employees in any way and it ensures that their employees are always satisfied. This has helped the company to have a high employees retention rate and employee satisfaction rate. The company always aims high and this is why the employees are encouraged to be as innovative as possible Veale, Oliver, & Langen, 1995()

Culture

The Coca-Cola Company believes in their own unique culture which they share and why helps to nurture all that the company does. The company culture is driven by one major factor which is passion. This is one of the company values. The other values are leadership, integrity, accountability, collaboration, innovation and quality Foster, 2007()

The company strives in all ways possible to be analytical and creative in a brilliant way. This helps the company to commit to change and to always find more sustainable ways for carrying out the company's activities Harris, 1995()