Abstract
Any successful company must have an effective and efficient organizational and management structure. Although the organizational structure and management structure of a company means the same to some individuals, it’s not. While organizational structure refers to the structured groups of individuals established to achieve the company’s set goals, management structure refers to the system and the people who are mandated in executing all the organizational tasks. In general, the organization and management structure of a company refers to the hierarchical array of lines of power, relations, rights as well as the obligations of a company (Shamir, 2017). The organization structure determines how the tasks, power and errands are assigned, controlled and coordinated as well as how the information runs between the different levels of management in the company. In this paper, the organizational and management structure of the Coca Cola Company will be discussed.
Introduction
The Coca Cola Company displays a separate international division structure as far as its management and organizational structure is a concern. It exhibits such a structure because its global workforce normally operates separately in isolation from its headquarters that are located in the United States. However, the Coca Cola Company has got different divisions in every continent in the globe. Each continent has got a president controlling the operations of the Company. Its major continental subdivisions include Eurasia and Africa, Europe, Latin America, North America, and Pacific groups. Every continent has a vice president that controls the sub-divisions in the continents based on regions that comprise groups of countries assisted by the boards of directors. It should be noted that the organizational and management structure of the Coca Cola Company is specifically designed to meet the Company's aims (Woods, 2016). The structure of Coca Cola is flexibly built to encourage teamwork by bringing together teams of employees with a different specialism. In this paper, the various organizational structural units like the manufacturing, corporate as well as the sub-divisions besides the Human Resources management structure will be discussed.
The Coca Cola Company Organization Structure
The decentralization structure was introduced in Coca Cola Company in the 90s. The organization has got the overall Company president then followed by two operating groups namely, the manufacturing or bottling group and the corporate group. Under these two operating groups we have the marketing and finance departments that will be discussed under the management structure. The operating groups are further sub-divided into five units comprising of the continents which are finally sub-divided into geographical locations. Fig.1 below generalizes the organization structure of Coca Cola Company (Donkor, 2016).
Figure 1
The Corporate Staff
The corporate staff can be regarded as the head office of the Coca Cola Company. This segment is mandated for giving overall directions to the company. Providing support to the various sub-divisions of the Company is also the mandate of the corporate staff. The corporate staff of the company is made up of an executive committee that comprises of twelve officers. This executive committee is further broken down to take the Company chair responsibilities as well as to take the responsibilities of the chief executive. From the officer who takes the company chair responsibilities are the chief executive officers of the six sub-divisions when Africa and Eurasia are treated as separate sub-divisions. The other six executive officers take the positions of senior business executives of the company in categories like marketing and finance. Fig. 2 below shows the corporate staff organization structure of the Coca Cola Company (Akhter et al. 2016).
Figure 2
The Regional Structure of Coca Cola Company
The Coca Cola Company has generally succeeded in the market more than their competitors like Pepsi because of its capability to connect with the customers in the ground. This is usually achieved through its strategic regional structure which is designed to meet its mandated aims. The aim of the Coca Cola Company is to serve the people globally. This aim has been greatly achieved through the continental regional structure. The regional structure of the company merges both centralization and localization structures. The strategic business units of the Coca Cola Company are six in number which takes care of all the continents of the globe. Each of the six strategic business units is subdivided into small divisions which consist of a group of countries. Like in Africa there are two operating units namely, the Southern and East Africa Business Unit that has its head office in Johannesburg in South Africa whose vice president is Bruno Pietracci and the West Africa Business Unit with its head office in Lagos in Nigeria whose vice president is Peter Njonjo (Linnander et al. 2017).
In the regional levels, the regional president heads the region with the assistance of vice presidents who head the regional operating units. The continent sub-divisions takes care of the geographical separation of markets, the tastes and preferences which vary from one geographical region to another as well as the revenue consumption patterns of different geographical regions. Also, the development stages of the different markets in the region are also taken care of through continental sub-divisions (Serôdio, McKee, & Stuckler, 2018).
In the local levels of the Coca Cola Company, the management involves a number of functionality specialists. This management is usually the same in all the regions since the management system of the Company is managed from one central head office that is based in New York United States. Therefore one coverage of the regional structure reflects how power and information flow in all the Company's business units. Considering the Great Britain division, the Coca Cola Great Britain division applies both the centralization and centralization elements since the division, as well as the regions, operate like business unit teams whereby each director reports to the division president. The Fig.3 below illustrates this structural scenario.
Figure 3
Another structure which is used in the regional of Coca Cola Company is the matrix structure which is applicable in each function. For instance, the Public Affairs and Communication Director, reports directly to the GB President, and at the same time to the Public Affairs and Communications Director of Northwest Europe. This can be illustrated in Fig.4 below (Anthony, Viguerie, & Waldeck, 2016).
Figure 4
Human Resource Management Structure in Coca Cola
The human resource management is very crucial in any successful organization like Coca Cola Company. The Coca Cola Company has greatly invested in this department for its success and the future of Coca Cola greatly depends on this department. In every single business units in regional levels of Coca Cola Company, the human resources department greatly plays a great role in fostering the company's success. Bearing that Coca Cola is an international company, it becomes impossible to create policies that can be applicable to all divisions of the company, hence the political and cultural differences needs to be taken into consideration during the formulation of Human Resource Management offices of various company divisions. Fig. 5 below shows the various operations of the company that depends on the Human Resources Management office. This shows how crucial this office is to the success of the Coca Cola Company (DeAngelo, & Roll, 2016).
Figure 5
Management Levels in Coca Cola Company
There are three basic levels of management in the company name, the top level, middle level, and the lower level of management. The top level comprises of executives of the company and they are usually twelve in number. They are the one who makes decisions in the company. In the middle level comprises of the company directors who are responsible and answerable to the regional presidents of the company. Like the financial directors reports directly to the regional president. The directors reinforce on the decision made by the top level management. In the lower level, there are the individuals who perform the distribution of the Coca Cola products to the consumers. These are retailers and individuals in groceries. Fig. 6 below shows the levels of management present in Coca Cola Company (Nwachukwu, 2018).
Figure 6
In conclusion, the structural and management structure of Coca Cola Company is important since they greatly help in the company achieving all its goals an objective. Also through its widespread, the company is able to optimally utilize all its recourses hence avoiding wastages. The Coca Cola Company is a sound established organization through the contribution of good management and organizational structures which ensures that no overlapping of efforts within the organization takes place hence ensuring that all the functions are run smoothly and in a coordinated manner (Kohler, 2016).
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