Coca Cola Company Analysis - Research Paper

Introduction

The Coca Cola Company is a beverage company that deals with manufacturing and distributing non-alcoholic beverages. The company is a dynamic organization with a clearly defined structure that offers a variety of products to its customers. The dynamic nature of the organization is as a result of the technological advancement that has influenced the performance of the organization. Their main product, Coca Cola is a beverage that is locally available all over the world. The beverage can be purchased from restaurants, local stores as well as vending machines. Coca Cola provides drinks that influence individuals' longing and needs. Furthermore, the successful system between clients, suppliers, shareholders, and employees has further contributed to the success of the organization (Armus, 2005). Based on the corporate success of Coca-Cola and its effective brand in providing the majority of the beverages purchased by the local consumers, it is vital to undertake a more in-depth analysis of its different structures as well as operations.

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Nature of the Coca-Cola Company

The Coca Cola Company was formed in 1886, in Atlanta Georgia. The firm has also been identified as a leading company in the production, marketing as well as distribution of its products. Aside from selling beverages as end products, the company also offers concentrate and syrups to other companies that produce carbonated drinks. Such companies include bottling companies the dilute and package the concentrates into cans. The organization provides a wide variety of beverages that are consumed all over the world. This achievement was made possible when the company became a global company. The organization operates in more than 200 countries. The success of its globalization strategy is due to the simple slogan "Provide a moment of refreshment for a small amount of money - a million times a day" that was adopted by the company.

The distribution system applied by Coca Cola Company as well as its bottling companies can be identified as one of the best systems in terms of production and distribution. This system is designed in such a way that the employees have adopted the objectives of the company as their priority and thus become more dedicated to achieving the goals set. One of the critical corporate objectives of the merchandise is to increase the market-share value for its products. This objective was achieved through collaboration with stakeholders to satisfy consumers while at the same time valuing the interests of consumers. The company also protects its assets and minimizes corporate risks in an attempt to achieve this objective. As a result, the company has been ranked as the best firm in the products they produced.

Types of Products Services Offered by Coca Cola Company

The organization provides a variety of products and services to its customers. The company also has more than 300 beverage brands globally. Majority of the soft drinks offered by this organization includes Coke, Fanta, Sprite, fruit juice and Powerade. The beverages are packaged into either glass, plastic bottles or cans that are in varying sizes. The majority of the population recognizes these products. The popularity of the products has earned the company a good reputation that has further helped to increase the success of the business. Prices of the products vary as per the location, size as well as packaging used. For instance, the cost of Coke in the United States is different from the Coke offered in Indonesia. Aside from products, the company provides a variety of services to its customers. For instance, the company may provide refrigeration equipment to various outlets. Also, the company may also provide services that are specific to an individual customer.

Organizational Structure of Coca Cola

Organization structure is essential to guide the direction which an organization is expected to take (Ingram, 2019). The company structure of Coca Cola consists of a combination of both the organic as well as the mechanic model structure. These two structures merge to address the main concern which is the responsiveness of the target market. The intertwined nature of the combined mechanisms results in standardization as well as centralization of the organizational structure. The organic model adopted by the organization focuses on flexibility as well as the stability of the organization. Also, the combination of the two methods results in a top-down approach in terms of communication. This combination fits perfectly with the objectives of the organization.

Flexibility is essential for the organization as it appeals to a wide variety of markets that are very diverse due to the market being independent. Moreover, high standardization is critical in ensuring the efficiency of the company in production. Thus, the ability of the company in utilizing complex models promotes explicit coordination of the organization in the local and global environment. The ability of the organization to be centralized helps Coca Cola to align its activities with the set goals and objectives.

The current organization structure has enabled Coca Cola to move smoothly in its decision-making processes. The smooth decision-making is due to the ability of the management to quickly access information as a result of high responsiveness. However, the company has recently advanced towards decentralization. Decentralization has further promoted the success of the organization by providing an increase in sales as well as higher rates of employee satisfaction.

External Factors That May Affect Coca Cola’s Success

Numerous factors can affect the rate of a business' success; they can either be external or internal. The external elements comprise of entities that affect the company and can influence the operations of the organization despite their innate inability to be altered (Bush 2016).

These factors comprise of the economic activities that the company may use in forecasting future investment decisions. Some of the economic factors that may affect Coca Cola include inflation, living standards, interest rates, exchange rates as well as the unemployment rate. The wage rate, as well as overall economic growth, are economic factors that are analyzed first before the Coca Cola can make any investment decisions. In the case of Coca Cola, the economic factors differ in various countries where the company operates in and therefore careful analysis is necessary. The economic factors of the country provide Coca Cola with the information that is needed to identify the purchasing power of the potential market in which it wants to invest. Furthermore, the analysis of economic factors helps Coca Cola to determine the wages that it will set in the different countries that it operates in since if the prices for their products are too high, the customers may not be able to afford it.

Social Factors

The social factors in the case of Coca Cola relate to the traditions, cultures, trends as well as health and safety perceptions. Coca Cola needs to analyze the social factors to identify the best practices which will help the company to adapt its practices to suit the social factors that exist in a given environment. Different countries have different cultures and traditions. These factors are diverse as per the different countries, and Coca Cola will need to identify the best practices that will ensure the cultures and traditions of a given country are upheld and respected.

How Primary Stakeholders Can Influence Coca Cola’s Financial Performance

In every organization, some main stakeholders have objectives that they need to accomplish. Some of the primary stakeholders include customers, employees, suppliers, and non-governmental organizations. As part of the stakeholders, customers can influence the performance of Coca Cola by purchasing the products offered by the company. Competition is high in the beverage industry due to the variety of products that are produced. Also, the health perceptions that are advocating for healthy drinks are also creating more completion. Customers can also help improve the performance of Coca Cola by providing recommendations and opinions on the areas that the company needs to improve. The customers can also recommend their preferences as well as participate in the programs that are set by the company.

Non-governmental organizations as part of the stakeholders can influence the financial performance of Coca Cola in the programs that are set by the company.aditions of a given ountry are uphel. These organization can help boost financial performance by providing partnerships that inform and guide the company policies and initiatives. Also, non-governmental organizations can challenge Coca Cola to work on issues that are complex and fast changing. The ability of Coca Cola to address these challenges will further improve their reputation and as results draw customers and investors. Employees can improve a company's financial performance through determination to perform their duties efficiently and effectively. This ability will result in increased production as well as increased sales.

Shareholders and suppliers also have a role to play in ensuring that the company maintains high financial performance. Shareholders can influence the company by making decisions that will result in higher performance of the employees. For instance, the shareholders can support policies that ensure employees are rewarded according to their performance. Suppliers, on the other hand, can influence the performance of the company by providing that Coca Cola has a supply base that is stable and ethical. The suppliers should also ensure that they deliver quality products that are necessary for the success of the company.

Corporate Social Responsibility

Corporate social responsibility denotes how the company can benefit itself while at the same time contributing to society (Reeves, 2012). Coca Cola understands the value of water which is inestimable. As a result, the company is working vivaciously to ration the water it consumes around the world. Furthermore, the company is attempting to renew the water consumed to produce beverages. This attempt is through making the company water-nonpartisan by the year 2020. This objective has become effective has it has resulted in a reduction of the sum per liter of the item. Moreover, the company also reuses wastewater by treating it to stringent gauges before releasing it into nature cleaner than before.

Conclusion

For a company to be successful, it has to learn how to coexist peacefully with all the factors in its environment. This peaceful coexistence ensures that the people will accept the company. The society has significant influence on the overall performance of Coca Cola. Everyone enjoys a cold beverage once in a while. However, the reason why an individual may prefer one company over the other is dependent on the reputation of the company. This reputation often develops from the relationship between the company and society. The better the relationship between the company and the community, the better the reputation and consecutively, they higher the rate of performance.

References

Armus, S. (2005): "Coca-Cola Company." France and the Americas: Culture, Politics, and History: a Multidisciplinary Encyclopedia 2. 273.

Bush, T. (2016, July 18). External Factors that Affect a Business. Retrieved from https://pestleanalysis.com/external-factors-affect-business/

Epstein-Reeves, J. (2012, June 3). Six Reasons Companies Should Embrace CSR. Retrieved from https://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-csr/amp/

Ingram, D. (2019, March 12). Why Is Organizational Structure Important? Retrieved from https://smallbusiness.chron.com/organizational-structure-important-3793.html