Coca-Cola’s Packaging and Waste management Sustainability Challenge 1
THE COCA-COLA COMPANY’S PACKAGING AND WASTE MANAGEMENT
SUSTAINABILITY CHALLENGE
BY [NAME]
SCM 463 - Global Supply Chain Management
ASU
Task 2: Innovation Report
November 21, 2020
Coca-Cola’s Packaging and Waste management Sustainability Challenge 2
EXECUTIVE SUMMARY
This report discusses the packaging and waste management sustainability problem at the
Coca-Cola Company. It found out that the Coca-Cola Company still uses glass bottles and
plastics containers, which has brought about its packaging and waste management challenge and
created an enormous industry burden. It found out that there is a need to make changes in the
company to make its packaging more sustainable. It also indicates that Coca-Cola's packaging
has brought about air, land, and water pollution. The creative problem solving through divergent
thinking such as brainstorming and SCAMPER and convergent thinking provides alternative
solutions such as adopting new designs and streamlined packaging, empowering communities,
automation, using modern recycling and using metal cans. The action plan reviewed the market
offer, the business review, customer perceived value, and the market review. It proposed the
democratic/participative leadership for effective action plan implementation and a flat structure
for effective innovation. It found out the culture, systems, and processes, people, and structure
facilitate the implication of the innovation. It concluded that adopting the recommendations
below will allow Coca-Cola to address its packaging and waste management sustainability
problem. The recommendations are listed below.
Adopts participative leadership
Empower communities in sustainable waste management
To procure new equipment designs and align its packaging with its "green
initiatives."
To automate its production phases
To adopt metal cans instead of plastic and glass bottle packaging
Employ modern technology in recycling
Coca-Cola’s Packaging and Waste management Sustainability Challenge 3
TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................ 2
TABLE OF CONTENTS .................................................................................................... 3
1.0 Introduction ............................................................................................................... 4
2.0 Coca-Cola's Packaging and Waste Management Sustainability Problem ................ 4
3.0 Creative Problem-Solving process .......................................................................... 12
3.1 Divergent Thinking ............................................................................................. 12
3.2 Convergent Thinking .......................................................................................... 13
4.0 The Innovation Action Plan .................................................................................... 15
4.1 Coca-Cola's Business Review ............................................................................. 15
4.2 Coca-Cola's Market Review ............................................................................... 16
4.3 Coca-Cola's Market Offering .............................................................................. 17
4.4 Customer Perceived Value at Coca-Cola ............................................................ 17
5.0 Leadership Approach .............................................................................................. 18
6.0 Innovation Implementation ..................................................................................... 19
6.1 Culture................................................................................................................. 19
6.2 Structure .............................................................................................................. 20
6.3 Systems and Processes ........................................................................................ 21
6. 4 People ................................................................................................................. 21
7.0 Recommendations ............................................................................................... 23
8.0 Conclusion .......................................................................................................... 24
References ......................................................................................................................... 25
9.0 Appendices .................................................................................................................. 27
9.1 Divergent Thinking ................................................................................................. 27
9.2. Brainstorming ........................................................................................................ 29
Coca-Cola’s Packaging and Waste management Sustainability Challenge 4
1.0 Introduction
Coca-Coca Company is American cooperation established in 1892. The company
engages in the manufacturing and sale of concentrate and syrup for Coca-Cola. This carbonated
and sweetened beverage has become an international symbol of American beverage tastes. Coca-
Cola also manufactures and sells citrus drinks and other types of soft drinks. It operates in the
beverage industry, which is a mature industry. It is an industry that includes a wide variety of
companies selling alcoholic and non-alcoholic drinks. Coca-Cola is an example of the non-
alcoholic companies in this industry. Compared to the existing opportunities, the opportunities
for growth in this industry's market are quite a few. It is a factor that has forced the majority of
its players to strive towards diversification to gain a competitive advantage. The nature of the
market situation described above has forced many companies to pursue lucrative market
offerings to ensure that it achieves a substantive market share and expands their operations,
geographic reach, and product portfolios. The emergence of new technologies and the need to
meet sustainability and green goals are the key forces in this industry that companies seek to gain
a competitive advantage.
This report was compiled to identify packaging and waste management, which is a
common issue hindering many organizations in their path towards achieving sustainability. It is
an issue that is overshadowed by other sustainability issues that companies deem more
important. It chooses Coca-Cola because it is a leading company in the beverage industry which
should also be a leader in innovating its packaging and waste management activities and
processes.
This report seeks to discuss Coca-Cola’s packaging and waste management sustainability
challenge. It will be done by providing a discussion of the current issues in the industry, provide
a creative problem-solving process for the challenge, and provide an innovation action plan for
it. It will also discuss the leadership and organizational culture that will be required for the
solution and the innovation implementation of the solutions. Lastly, it will provide a conclusion
and recommendations for Coca-Cola in addressing the challenge.
2.0 Coca-Cola's Packaging and Waste Management Sustainability Problem
Defining Coca-Cola’s Challenge
Coca-Cola’s Packaging and Waste management Sustainability Challenge 5
The beverage industry faces the need to reduce environmental impact in its production of
goods and services. Companies such as Coca-Cola have failed to fully implement the removal of
plastic containers and glass bottles in its packaging process. As a result, it leads to producing
waste products resulting from its plastic and glass bottles (Kalia, 2019, p.163). As one of the
world's largest beverage companies, Coca-Cola is at the forefront of addressing sustainability
issues to meet customer demands and corporate social responsibility goals. However, it is falling
behind in its "green initiatives," due to its packaging and waste management challenge.
One of the main factors leading to the environmental problems that Coca-Cola is facing is
their dependence on production and disposal models that are linear. The company's approach, as
Stewart et al. (2018, p. 811) suggest, should be based on the idea of closed-loop supply chains
that are vital to minimizing environmental damage and achieving resource efficiency in the long
term. In some markets, Coca-Cola has initiated recycling programs on a small scale; however,
their systems are not large enough or well-coordinated to significantly lower the amount of waste
generated. Dawson and Andriopoulos (2017, p.62) contend that companies deeply rooted in
traditional ways of production will find it difficult to shift towards circular practices without
completely changing their processes and partnerships. The issue of single-use plastic and glass
packaging that goes on for so long not only leads to an increase in the amount of waste that is
buried in landfills but also to the pollution of the seas and therefore the two give rise to the
company’s risk of reputation and regulation. Barringer and Ireland (2012, p.41) argue that
companies that are already established usually try to avoid a radical redesign of their supply
systems as a result of the sunk costs and operational inertia. As the regulators step up their
inspections, Coca-Cola is under greater pressure to abandon the linear mode of consumption in
favor of closed-loop strategies that put emphasis on recovery, reuse, and material reintegration.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 6
Leadership and innovation practices undoubtedly have a major impact on how Coca-Cola
deals with the issue of packaging, as the successful green change has to be a cross-functional
practice with the support of good governance. Hill et al. (2014, p. 29) state that innovation is at
its best when the leader encourages trials and co-operation among different departments which
are usually separate. At Coca-Cola, the ambitions of environmental protection may disappear if
the decisions on packaging are taken only by the marketing or the cost departments with the sole
aim of maximizing profit and not caring about the environment. Dawson and Andriopoulos
(2017, p.105) make the point that systemic innovation becomes feasible when strategic vision is
incorporated into the actual operational processes which in turn enables enterprises to use cleaner
technologies and redesign product lifecycles. Stewart et al. (2018, p.812) indicate that the
combination of circular economy principles has to come from both the planning stage and the
downstream partnerships with recyclers and municipalities. No matter how far the initiatives
have come, they run the risk of being only symbolic if there is no committed leadership to
oversee these efforts. Barringer and Ireland (2012, p.56) are also of the opinion that structural
change will only be successful when it forms an integral part of the company′s overall strategic
direction and is supported by resources, training and accountability metrics.
The matter is further complicated by consumer expectations and behavior, which can
make it harder for Coca-Cola to put into practice a more sustainable packaging solution.
According to Hill et al. (2014, p.47), companies having innovation as their goal should grasp the
extent of the external stakeholders’ willingness to accept new methods and products. The
customers of Coca-Cola are used to packaging in the form of convenient single-use products;
thus, a sudden change to reusable or refillable systems is not very feasible. Nevertheless, as per
the views of Dawson and Andriopoulos (2017, p.88), the idea of the changes in innovation most
Coca-Cola’s Packaging and Waste management Sustainability Challenge 7
probably comes from the joint creation with the stakeholders, especially when dealing with
environmental issues. According to Stewart et al. (2018, p.814), closed-loop systems, which are
recycling and return programs, require consumer participation as well as corporate design
changes. Furthermore, Barringer and Ireland (2012, p.73) say that businesses could take
advantage of marketing and educational activities to influence user behavior and motivate
sustainable consumption. In the event of Coca-Cola matching packaging redesign with consumer
involvement and circular economy infrastructure on a larger scale, it would be possible to
eliminate waste to a significant extent while meeting the requirements of regulators and society.
The driving forces of that promoting Innovation and Change
Competition in the beverage industry is quite intense with a high possibility of
undercutting Coca-Cola. In this industry, their many competitors with similar products as Coca-
Cola requires that it adopts diverse strategies to ensure that its packaging and waste management
attracts more buyers and suppliers. According to Kalia (2019, p.163) companies in the beverage
industry have to address environmental issues and the “green” issues in their processes to attract
more buyers and suppliers. Therefore, without a competitive approach to the packaging and
waste management problems companies such as Coca-Cola need to take action.
The other driving force is the potential of a new entrance into the industry. According to
Öneren, Arar, and yurdakul (2017, p.511), the company’s power in an industry is affected by the
entrant’s force into the market. It is relatively less costly and it takes less time for start-ups to
enter into the market (Samuel, Oyawale, & Fayomi, 2019, p.204). It means that the new entrants
will weaken Coca-Cola's position as the leading beverage company in the world if it does not
invent strategic ways of addressing its sustainability challenge. The innovation will ensure that it
remains competitive aglint the new entrants.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 8
The power of suppliers is another factor driving innovation and change in the beverage
industry. Öneren, Arar, and yurdakul (2017, p.512) indicate that suppliers can drive up the input
costs to a company depending on their number, the uniqueness of their inputs, and the cost
incurred by a company in switching from one supplier to the other. Kalia (2019, 165) indicates
that there are few suppliers in the beverage industry which is likely to increase the need for
companies to depend one supplier. Therefore, Coca-Cola should strive towards lower its input
costs by ensuring that it maintains its suppliers and adjust to the pressure of its suppliers as they
have the power of driving up the cost of inputs
The power of customers is another driving force for change and innovation in a company.
The number of customers, the significance of each customer and the cost of attracting new
customers a company has affects its price levels and sustainability issues (Öneren, Arar and
yurdakul, 2017, p.512). In the beverage industry, customers associate with products packaged
sustainably, allowing them to avoid environmental (Kalia, 2019, p.166). With this concern,
Coca-Cola must address the packaging problem to ensure that it maintains its wide customer
base to easily charge higher prices to increase its profits.
The threat of substitutes is a big problem for companies. Substitute services and goods
can replace a company product or service creating a threat (Öneren, Arar and yurdakul, 2017,
p.512). Companies with services and products with close substates in the market faces a threat of
losing their customers (Kalia, 2019, p.168). The beverage industry, according to Kalia (2019,
p.168), has many close substitutes, which forces companies such as Coca-Cola to be innovative
in the production, packaging, and waste management to avoid customers foregoing its services
and products for better substitutes.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 9
One of the prominent factors that stimulate Coca-Cola to advance into sustainable
innovation is the demand that regulators place on it not only in one but in several geographic
locations. Government entities at national and global levels are progressively implementing laws
that are more rigid than before and compel companies in the beverage sector to meet tough
recycling goals, reveal the content of packaging materials and lower their contributions to
landfills. Some areas have regulations requiring responsibility schemes for producers, which
means that companies must take full financial or logistical account of waste after the consumer
(Deshwal and Panjagari, 2020, p.2381). This duty raises the necessity of immediate restructuring
of waste management by firms instead of waiting to do it. These changing regulations not only
redefine the expectations of the market but also place firms in positions where they may be
penalized or limited in trade if they do not comply (Wulandari et al., 2017, p.37). Consequently,
conformity becomes both a legal obligation and a strategic issue. As per Samuel et al. (2019,
p.022049) if a company is global and has a presence in more than one continent, then local
policies cause the management to handle and obey the rules. They are different but altogether
lead to circularity. This makes multinationals so big that they become forced to use versatile and
forward-thinking strategies. As the regulatory pressures strengthen, Coca-Cola is compelled to a
thorough rethinking packaging which is the lifecycle of packaging starting from material
selection all the way to recovery at the end of the user without causing any blockage of business
in different markets, maintaining brand legitimacy and avoiding paying fines.
Working in tandem with consumer expectations, shareholder and investor demands also
keep driving Coca-Cola to update its packaging and waste management procedures. Shareholders
want corporations to care about the environment more than anything else and are ready to count
the financial risks of ignoring the environmental part of the concerns (Gersen and Hemphi, 2019,
Coca-Cola’s Packaging and Waste management Sustainability Challenge 10
p.273). They are so powerful, that now, the environmental performance is being linked to the
loyalty of the investors. Institutional investors are already using ESG (environmental, social, and
governance) criteria to help them with their decision-making process. The recyclability and
carbon targets are weighed along with traditional profitability measures (Deshwal and Panjagari,
2020, p.2379). Such a transformation in the evaluation criteria affects how capital is reallocated
between different firms. In case innovations of Coca-Cola are not backed by evidence, the
company is likely to face the sell-off of shares or drop in stock price. The occurrence of the latter
kind of financial consequences can impair long-term planning and market positioning. Samuel et
al. (2019, p.022050) imply that stakeholders take interest in companies that are prepared to offer
resources to tackle the waste problem and to conduct research on eco-friendly packaging as these
are the two ways to signal stability in the long term. Innovating companies benefit from such a
perception of them much more to keep up with the very expectation rather than simply turning it
into their marketing strategy. In an arena like this, innovation is not just a marketing strategy but
rather a means of maintaining the confidence of investors and making the company a bet for
capital allocation and collaborations with other sectors.
Technological change is also one factor that leads Coca-Cola to change its packaging and
waste systems even before the use of traditional materials becomes a problem. Scientific research
that is on the verge of success has made available biodegradable composites, recyclable metal
formats, and lightweight alternatives that help reduce carbon footprints all over the supply chains
(Kalia, 2019, p.169). Deshwal and Panjagari (2020, p.2383) argue that metal packaging
solutions that are technologically sound can increase product lifespan even as they open up
avenues for greater recycling to yield both sustainability and cost recovery. The research results
imply that transitions in materials can even contribute to branding aspects. Those companies that
Coca-Cola’s Packaging and Waste management Sustainability Challenge 11
first start adapting such technologies will have the advantage of gaining a prodigious lead both in
production efficacy and brand positioning. The earliest users also set the trends of consumer
expectations in their respective areas. Wulandari et al. (2017, p.39) point out that in this case,
new processing facilities can become an integral part of the waste segregation system, thus
increasing the value of post-use materials. This proves that these organizations encourage
circular approaches throughout the supply chain. Samuel et al. (2019, p.022053) emphasize that
"these" systems are the waste-to-resource ones that find new ways to easily turn dumped
packaging into energy or new basic materials, thus lessening the environmental impact. Coca-
Cola, if it is a smart company, can use such innovations to completely change the flow of waste
so that it creates income thus she can meet the standards and make her customers happy.
Social and consumer environmental awareness have also become a big part of Coca-
Cola's innovation agenda. More and more, consumers are assessing brands by their ecological
accountability and through the brand's truthful communication about recyclability. Particularly,
younger generations expect companies to take responsibility as part of repackaging reforms that
are visible and accompanied by credible sustainability messaging (Öneren et al., 2017, p.513).
This requirement of responsibility has the potential to influence the direct purchasing behavior.
According to Kalia (2019, p.170), environmental packaging might be the key element that makes
a brand stand out from the rest of the saturated market in which customer loyalty is fleeting.
Thus, competitive positioning should rely on a clear commitment to change. Deshwal and
Panjagari (2020, p.2382) argue that firms mindful of consumer fears can instigate emotional
bonds, leading to the loyalty of the customers and their word-of-mouth promotion.
Consequently, the stronger the brand loyalty, the more the company will be profitable in the long
run. The communities actually motivate businesses to engage in localized recycling programs,
Coca-Cola’s Packaging and Waste management Sustainability Challenge 12
deal with waste production issues, and partner up with municipal initiatives (Wulandari et al.,
2017, p.38). In case of Coca-Cola being indifferent, it will probably experience reputation loss, a
drop in sales, or even be the target of boycotts. Public reaction then becomes a kind of pressure
that limits the scope of doing nothing. Thus, packaging and waste management innovations turn
out to be a way of building consumer trust and loyalty over time.
3.0 Creative Problem-Solving process
3.1 Divergent Thinking
3.1.1 SCAMPER tool
Substitute
i. Replace glass and plastic containers with other alternatives
ii. Empower society regarding waste management.
iii. Use new machine designs and source new equipment designs
iv. Use metal cans in packaging
Combine
i. Combine bottle and drinking glass in the form of a Cottle
ii. Cottle to combine metal and glass
iii. Establish an external waste management team
iv. Establish hybrid waste control combining external and internal management
v. Streamline packaging
vi. Hybrid equipment for manufacture and packaging
Adapt
i. Establish a modern recycling system
ii. Use robotics through automation
Modify
Adjust can sizes
Adjust material used in making cans
Modify packaging to suit "green initiates."
Coca-Cola’s Packaging and Waste management Sustainability Challenge 13
Lower prices
Eliminate
Remove old machines
Remove unnecessary units and departments
Remove redundancies through automation
Rearrangements
Rearrangement machines to fit the new layout
Streamlined packaging and new equipment designs
Use a flat organization structure
Adopt a participative/democratic leadership
3.2 Convergent Thinking
3.2.1 Modern Waste Management through Recycling
The best adaptation for Coca-Cola’s challenge is to adapt a modern recycling system for
plastic and glass containers since its adaptation is cheaper than using robotics. Jull et al. (2018,
p.257) suggest that companies in the beverage industry should adopt simple modern recycling
processes where a modernized single-stream technology is applied in waste management such
that wastes such as bottles are placed in convenient containers for recycling. Therefore, Coca-
Cola should identify convenient locations to place its recycling containers.
3.2.2 Use Aluminum Cans In place of Glass and Plastic bottles/containers
Plastic and glass containers because of environmental pollution. The best alternative
solution through modification is the use of metal cans in place of plastic and glass bottles. Unlike
adjusting sizes of cans and other solutions it effectively addresses these problems as it has less
impact on the environment (Jull et al., 2018, p.257). Also, Jull et al. (2018, p.257) say metal
cans can easily be re-used without any modifications, which reduces packaging costs. Coca-Cola
should increase its use of aluminum cans in place of such plastic and glass bottles.
3.2.3 Automation of the packaging process
Regarding replacement, the appropriate alternative solution automating the product
packaging phases. Unlike the removal of old machines, units, and departments, it is a milestone
in alleviating health-related problems and improving efficiency in a factory setting (Deshwal and
Coca-Cola’s Packaging and Waste management Sustainability Challenge 14
Panjagari (2020, p.23778). It reduces exposure to harmful materials and gasses, resource
wastage, and pollutions caused by spillage.
3.2.4 Employ streamlined packaging, source new equipment designs, and use a flat structure
Unlike other ideas, combining streamlined packaging and sourcing new designs, and
adopting a flat structure serves the organization better than other ideas. Kennedy and Marting
(2016, p.41) articulate that the packaging systems and the production phases can be modernized
using new equipment designs effective in packaging, reducing waste, and increasing raw
materials management. A flat structure empowers employees to part-take in decision-making,
allowing imparts values and skills to adopt new changes (Kennedy & Marting, 2016, p.42).
Coca-Cola should consider sourcing modern equipment designs that reduce the waste of
resources and focus on streamlining its process with the CSR and the green initiative and
increase innovation using a flat structure.
3.2.4 Stage-Gate
This report uses the first two stages and two gates of the Stage-Gate to select one solution
for the sustainability challenge. The action plan replaces the third stage.
Stage 0. Discovery
The problem facing Coca-Cola is packaging using plastics and glass bottles which causes
waste management problems. The alternatives solutions generated include using Aluminum Cans
in place of Glass and Plastic bottles/containers, the automation of the packaging process, using
streamlined packaging, sourcing new equipment designs, and use a flat structure. The viable
solution to address this sustainability challenge is the use of aluminum cans in place of Glass and
Plastic bottles/containers. It is the most viable solution because it addresses the issue of glass and
plastic hence solving the packaging problem causing waste management problems (Jull et al.,
2018, p.257).
Gate 1: The solution is good enough to process to the next stage
Stage 1: Scoping
Coca-Cola’s Packaging and Waste management Sustainability Challenge 15
The strengths of using aluminum cans are that it replaces the use of plastics and glass
bottles which cause waste management problems. It is cheaper than plastics since recycled metal
cans need little modifications. It can be recycling and used without little modifications,
aluminum has a little environmental impact. However, its weakness is that its initially expensive
to acquire aluminum and it is non-biodegradable.
Gate 2: The solution is affected by the non-biodegradability and costs but recycling addresses
the problem. The solution goes to the next stage.
4.0 The Innovation Action Plan
4.1 Coca-Cola's Business Review
The current approach that Coca-Cola manufactures and sells citrus beverages soft drinks
packaged in plastic and glass bottles. Despite combining these methods of packaging its
beverages with plastic and glass bottles. It does not use aluminum cans in packaging, yet, it is the
most effective packaging method to steer it towards achieving its "Green Initiative" (Austin &
Gaither, 2016, p.294). However, due to the packaging deemed old-fashioned and unsustainable,
it is likely to fall short of its goals and objectives on waste management. It operates in an
industry where growth opportunities are quite a few. It is a factor that should force it to strive
towards the use of aluminum cans in packaging to gain a competitive advantage.
An additional overlooked issue in Coca-Cola's current packaging strategy is the lack of
efficiency of its recycling integration, which varies from market to market worldwide. Most of
the areas where the company is located don't have standard and advanced waste recovery
systems, which leads to difficult disposal of glass and plastic (Bista, 2019, p.4). If the brand does
not have a local material strategy that matches the abilities of the community, it will face the
problem of waste streams that it cannot manage effectively. Jull et al. (2018, p.258) suggest that
the progress of recycling classification technologies is a step that can lead to better decisions of
packaging; nevertheless, the technologies must be accompanied by suitable materials and
infrastructure. The fact that Coca-Cola is not completely on board with aluminum recyclable
systems, which are already available in a number of countries, limits its capacity to participate in
large recovery networks. Kalia (2019, p.176) also points out that the use of new materials and
Coca-Cola’s Packaging and Waste management Sustainability Challenge 16
innovations adaptable to the environment can lessen the environmental liabilities and, at the
same time, support brand repositioning. The company's failure in technology scenarios will not
only put into question the operational efficiency but also might lose the markets that strongly
demand sustainability and have sophisticated recycling practices.
4.2 Coca-Cola's Market Review
The beverage industry market is dynamic but has few growth opportunities, requiring
companies to adopt changes by embracing innovation. In 2019, the beverage market was valued
at $1550 billion, with a growth rate of 4%. Coca-Cola had a market share of 61% worldwide and
31.9% in North America (Bista, S., 2019, p.67). Bresciani (2017, p.34) asserts that customers
have become experience-driven as they seek new tastes and product designs than ever before,
which means that companies should be more innovative in packaging and product designs.
Customers are also seeking products with sustainable packaging due to the intensified need for
"clean" and 'green" products that are "beyond plastic." Therefore, using aluminum packaging
will help Coca-Cola Company address this challenge hence attracting more customers.
The process of change management must incorporate the whole community that extends
beyond the organizational boundaries, including customers and advocacy organizations, in order
to align expectations and consolidate the practice of responsible behavior. According to Hill et
al. (2014, p.53), public participation is one of the factors that may lead to an increase in
corporate credibility, especially when reforms in sustainability have an effect on consumer-
facing products. Dawson and Andriopoulos (2017, p.145) also say that organizations get the
most out of stakeholder feedback loops which, during packaging transitions, can be instrumental
in locating the communication and performance gaps. Barringer and Ireland (2012, p.88) state
that environmental agency partnerships, schools, and recycling networks are the main factors that
strengthen the social aspects of strategic innovation. In the case of Coca-Cola, community
stakeholders' involvement in educational campaigns about aluminum recycling has the potential
of generating positive energy, destroying negative stereotypes about material changes, and
making good product acceptance in markets with heavy plastic usage in consumption habits. The
company can, by treating people outside the organization as strategic allies rather than mere
observers, integrate the aluminum shift and thus facilitate the retention of sustainable
consumption behaviors in consumer culture.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 17
4.3 Coca-Cola's Market Offering
Customer satisfaction is a critical aspect of every organization seeking more sales and
increased profits. Bresciani (2017, p.34) pointed out that customers are experience-driven,
seeking new tastes and product designs than ever before. Since Coca-Cola offers beverages and
other products in plastic and glass bottles considered unsuitable and unsustainable in the modern
market, it has to change its strategies. To meet customer demands, Coca-Cola should consider
using an aluminum can packaging considered to be "greener." It should also diversify its
packaging and services and combine it with additional information, services, and products to
ensure that it serves its customers in the best way possible.
4.4 Customer Perceived Value at Coca-Cola
4.4.1 Purchase
The use of aluminum cans in packaging will make the identification of productions in
stores easier for the customers. It also is placed in intelligent dispensers in public places where
customers can easily access it. Austin and Gaither (2016, p.294) say the use of aluminum cans
encourages the use of metallic dispensers making it attractive than plastic, reducing engineman
impacts, and allowing raid purchases by customers.
4.4.2 Delivery
The use of aluminum cans allows for the automation of the packaging since metals are
less likely to be managed in the process. Jull et al., 2018, p.257) says that unlike plastic and glass
bottles it increases packaging speed, unpacking is faster and encourages fast deliveries due to
reduced fears of managing the containers during transportation.
4.4.3 Use
The aluminum can package will involve the use of new machines and techniques which
will require expert assistance and training. Also, Jull et al., (2018, p.257) say it will make the
storage of the drinks easier and it provides attracts all types of users because the cans are durable
and strong from physical and chemical damages.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 18
4.4.4 Supplement
The use of aluminum cans does not require other products or services which will not add
costs to customers. According to Kalia (2019, 169). This lack of supplements will ensure that
customers are satisfied with the innovation’s offer without worries of incurring more expenses in
using the company’s products.
4.4.5 Maintenance
The adoption of aluminum cans will ensure that there are no external maintenances to the
final package products (Austin & Gaither, 2016, p.294). It will add value to the customers
because they do not have to incur costs or expert services to use the product.
4.4.6 Disposal
The major problem addressed by the adoption of aluminum cans is the use of plastic and glass
bottles in packaging at Coca-Cola which was causing a lot of environmental concerns. However,
the use of cans will create waste items that can be recycled and reused with little modifications.
Austin and Gaither (2016, p.294) say that the is no environmental or legal issues in disposing of
aluminum cans and it can be used for other domestic purpose serving other customer needs.
5.0 Leadership Approach
Team management is an important aspect of leadership that every organization should
strive to achieve. The adoption of aluminum can package at Coca-Cola is founded on the need
for flexibility, innovativeness, adoption of recent changes, and more freedom for employees.
Therefore, a more suitable leadership approach for Coca-Cola is a form of leadership that
empowers employees to part-take in decision-making and that imparts values and skills. The
most appropriate approach is a democratic or participative leadership style. Hill et al. (2014,
p.24) says that participative or democratic leadership considers employees' input and feedback. It
fosters team management capabilities by offering members a chance for their choices to be
heard. It drives participation and discussion, fostering innovation flexibility, good mediation, and
creativity in adopting this innovation. Adopting this style at Coca-Cola will ensure that
Coca-Cola’s Packaging and Waste management Sustainability Challenge 19
employees are encouraged to offer their inputs, creativity, and innovative skills adopting
aluminum can packaging.
6.0 Innovation Implementation
6.1 Culture
Organizational culture is critical in implanting an action plan. Coca-Cola must ensure
that it establishes, through its leadership, a culture that will drive it towards achieving the
recommended changes. Leonard and Straus (1997, p.112) emphasize that the appropriate
leadership in an organization instills values, virtues, and mindsets that create an environment that
embraces the adoption of aluminum cans. Therefore, through the democratic or participative
leadership proposed above, Coca-Cola will effectively address the packaging and waste
management by making its employees accept the proposed changes and apply them in the
process. The leaders will facilitate the changes as employees implement them, leading to a
successful transition.
Organizational culture needs to have a strong and stable cultural base which has to do
with the alignment of the core internal values with the main environmental objectives of the
organization. The goal should be such that the coming of aluminum packaging is not seen as just
a routine but as the shared identity of the organization. Leonard and Strauss (1997, p.114)
observe that when leaders incorporate change into daily norms and communication patterns,
employees are more likely to absorb and promote new practices. To support this reconciliation,
the management of Coca-Cola has to facilitate the interaction. They can do this by presenting the
environmental issues for discussion, awarding the environmental leadership and exposing a part
of the organization to early success to draw confidence. Forming cross-divisional teams of
factory workers, shipping experts, and members of the environmental protection office can
ensure the interaction coexists with the packaging reform. The employees' resistance to change
will decrease when they understand that the adoption of aluminum is going to be in the long-run
and it is going to be good for brand credibility, regulatory compliance, and market
differentiation. Leonard and Strauss (1997, p.116) also stress that cultural change can be
sustained over the long term if the leaders practice the new expectations through their own
decision-making and resource allocation. Being able to link innovation, accountability and
environmental responsibility as part of organizational identity through the culture that is created
Coca-Cola’s Packaging and Waste management Sustainability Challenge 20
by Coca-Cola, the move away from traditional plastic and glass packaging not only becomes
sustainable but also can be replicated in their worldwide operations.
6.2 Structure
Organizational structure is critical in the delivery of services and production processes.
The proposed structures include the sourcing of new equipment. The most appropriate structure
for Coca-Cola in implementing this innovation is a flat organizational structure. It provides an
effective way of managing teams within an organization in implementing strategic innovation
and changes as it suits best the international business (Stewart et al., 2018, p.16). It is a structure
suitable for Coca-Cola because its business operations cover over 200 countries. It also suits its
action plan implementation because it offers unit and departmental collaboration capabilities to
address the adoption of aluminum can packaging.
Along with that, a flat organizational structure also brings about the faster making of
decisions that are necessary when coordinating sustainability initiatives which are spread out in
different areas. By cutting down on hierarchical bottlenecks, Coca-Cola is able to make regional
managers more powerful so that they may adjust the adoption of aluminum packaging to suit the
local regulations, resources and expectations of consumers (Stewart et al., 2018, p.18). Jull et al.
(2018, p.259) support this view with their statement that decentralized authority leads to a
quicker bringing-in of the technologies which are to be used for sorting, recycling, and recovery
of the material, a situation that is very important when the change from plastic and glass to
aluminum is going on. Besides that, the change in the reporting channels to a flatter one has also
made it possible for the employees from different departments such as operations, supply chain,
and marketing to now have more access to the management as they can simply share their ideas
about how they can improve packaging processes. Bista (2019, p.14) maintains that
sustainability reforms would be more lasting if employees felt more like the implementers and
less like the recipients of the top-down directives. In addition to that, a flat structure also
supports accountability as cross-functional teams can take up the role of supervising the progress
of can adoption and also troubleshooting the challenges together. This model of shared
responsibility which allows for adaptability, diminishes the wastage of resources and at the same
time, facilitates innovation at each organizational level.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 21
6.3 Systems and Processes
Coca-Cola should ensure that leadership plays a significant role in ensuring that all facets
of aluminum can packaging are incorporated into the systems and processes. According to
Kelley and Hyunsuk (2010, p.1009), systems and processes should be unbureaucratic and faster.
Suppose Coca-Cola adopts the unbureaucratic and faster processes and systems. In that case, it
will effectively incorporate new ideas and support the adoption of aluminum cans in packaging.
It has to make adjustments through its participative leadership apply them freely, improve
collaboration, and establish effective customer relations regarding the adoption of aluminum
cans.
If Coca-Cola is to incorporate aluminum can packaging in a successful manner, they will
also need to change their digital tracking and operational monitoring systems to be able to
accommodate material changes across production lines. With the help of a modern enterprise
resource planning platform, companies are able to more accurately track material usage,
recycling rates and supplier compliance (Jull et al., 2018, p.261). When organizations redesign
their internal processes with the aim of supporting sustainability objectives, they get the visibility
of the performance indicators and waste reduction outcomes. According to Bista (2019, p.17),
streamlined systems can also lead to supplier collaboration, enhance the level of trust and reduce
the cost of coordination during packaging transitions. Moreover, as a result of the combination of
process automation and participative leadership, employees from different departments can
receive the feedback on the performance gaps or equipment needs (Kalia, 2019, p.176).
Introducing continuous improvement mechanisms like regular process audits and cross-
functional planning sessions can make Coca-Cola locate the inefficiencies in a very short time
and turn its change to aluminum-based packaging into a smoother one.
6. 4 People
People refer to those within the organization and those outside of the organization whose
behavior and actions affect the company in one way or the other. Barringer and Ireland (2012,
p.83) say that there is a need to reduce the friction caused by the people's resistance within and
outside an organization to implement change effectively. Also, Barringer and Ireland (2012,
p.83) indicate that people should also have the appropriate knowledge and skills for strategic and
innovation implementation. Therefore, Coca-Cola's leadership should ensure that its recruitment
Coca-Cola’s Packaging and Waste management Sustainability Challenge 22
process effectively gets the right people with the right skills to implement the adoption of
aluminum in the packaging of its products.
One more aspect which greatly influences the way people are managed during change is
definitely the emotional and psychological response that occurs when employees are asked to
give up the practices they are used to. Resistance, in most cases, is not to be found in the form of
a complete opposition to the stated idea but rather uncertainty about its personal impact and role
security is what the resisters' mindset is based on (Dawson & Andriopoulos, 2017, p.59). When
administration through open communication conveys the turnover to aluminum packaging and
also delivers the message of how roles are to change, the staff will most probably respond in a
constructive way. Hill et al. (2014, p.41) say that one of the ways is through inclusive
conversation, holding training sessions, and setting up awards, all this to provide employees with
a reason for the innovation initiative. This method not only reduces the number of conflicts but
also stimulates the accountability of the employees. Barringer and Ireland (2012, p.90) also say
that the company can gain the support of its external stakeholders, for example, suppliers,
community partners and advocacy groups, in addition to that of the employees by demonstrating
that the shift is in accordance with the wider sector and is, therefore, a legitimate change.
Through the use of well-planned communications, Coca-Cola can mobilize those who are
resistant to change, thus, making them the brand's packaging strategy supporters rather than
recusants.
Moreover, this change will be successful a lot depending on the fact that the team
dynamics have been changed in such a manner that the teamwork is the main characteristic
instead of the solitary decision-making. Cross-functional teams allow employees from such
departments as operations, marketing, sustainability and procurement to be the aluminum
packaging supervisors together, thus, being the owners of the idea together (Hill et al., 2014,
p.74). Dawson and Andriopoulos (2017, p.112) state that change is more sustainable if
departments work together to coordinate the tasks rather than dealing with each other in the
struggle for resources or autonomy. According to Barringer and Ireland (2012, p.85), one of the
ways in which employees can get better at solving problems as a team is through joint training
and mentorship programs, which also make it easier for them to accept the new manufacturing
techniques and technologies. When team structures are such that members can be accountable for
Coca-Cola’s Packaging and Waste management Sustainability Challenge 23
the same, knowledge transfer becomes a more efficient process and the resistance fades with
time. This type of cooperation is, however, very much applicable to large multinational firms
like Coca-Cola, where the various regions have different logistical problems. By giving the
power to the different teams, the management is making sure that the change to aluminum
packaging is in line with both the global goals and the local operations.
In the end, change management activities must, besides everything else, involve external
communities, customers, and advocacy organizations to be on the same page regarding
expectations and to give off the same message of responsible practices. According to Hill et al.
(2014, p.53), corporate credibility is the one that gets enhanced through public participation,
especially when sustainability reforms in consumer-facing products have been the changes.
Dawson and Andriopoulos (2017, p.145) state that organizations get the stakeholder feedback
loops, which can be a source for uncovering communication and performance gaps during
packaging transitions. Barringer and Ireland (2012, p.88) hold that collaborations with
environmental agencies, schools, and recycling networks not only support but also strengthen the
social dimensions of strategic innovation. For Coca-Cola, community stakeholders' involvement
in educational campaigns about aluminum recycling may be a source of generating positive vibes
and removing the wrong ideas that frequently arise when materials change. This also leads to
improved product acceptance in markets where the use of plastic is deeply ingrained in
consumption habits. Dawson and Andriopoulos (2017, p.147) conclude that by treating people
outside the organization as strategic allies rather than as mere observers, Coca-Cola can simplify
the transition to aluminum and integrate sustainable behavior into consumer culture.
7.0 Recommendations
There is a need for Coca-Cola to make adjustments to ensure that its packaging reduces
environmental impact and meets the market needs. The following recommendations will help it
in realizing this goal.
Coca-Cola should embrace change by accepting innovation. It can be achieved by
adopting a participative leadership approach that will empower employees to
adopt the use of alluvium packaging.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 24
Coca-Cola should also empower the communities it serves. Doing this will give
them knowledge about the importance of proper waste management and provide
them with modern waste recycling containers.
Coca-Cola has to procure new equipment designs and align its packaging with its
"green initiatives." To meet the adoption of aluminum can packaging.
It also has to automate its production phases. This type of automation reduces
wastages and improves efficiency.
It has the mandate to adopt metal cans instead of plastic and glass bottle
packaging to reduce health problems and pollution.
Coca-Cola should use modern technology in recycling to reduce environmental
impact and improve its waste management.
8.0 Conclusion
The report indicates that Coca-Cola's use of glass bottles and plastic containers has
brought about its packaging and waste management challenge. Since the beverage industry seeks
CSR and sustainable practices, it has created an enormous industry burden. There is a need to
make changes in the company to make its packaging more sustainable. Its packaging has brought
about air, land, and water pollution. The creative problem solving through divergent thinking
such as brainstorming and SCAMPER and convergent thinking provides numerous ideas and
alternative solutions such as adopting new designs and streamlined packaging, empowering
communities, automation, using modern recycling, and using metal cans. The stage-gate filtered
the adoption of aluminum cans in packaging to reduce environmental impact. The action plan
reviewed the market offer, the business review, customer perceived value, and the market review
for the innovation. It discussed the leadership approach and discussed innovation implementation
of the aluminum cans in packaging as the solution to the challenge.
Coca-Cola’s Packaging and Waste management Sustainability Challenge 25
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Coca-Cola’s Packaging and Waste management Sustainability Challenge 27
9.0 Appendices
9.1 Divergent Thinking
Brainstorming Tool and SCAMPER
Tool: Scamper: It is used to stimulate new ideas in the facilitation of the solution's brainstorming
in Coca-Cola's sustainability problem.
Substitute
Replace glass and plastic containers with other alternatives
Empower society regarding waste management
Use new machine designs
Use metal cans in packaging
Combine
Combine bottle and drinking glass in the form of a Cottle
Cottle to combine metal and glass
Establish an external waste management team
Establish hybrid waste control combining external and internal management
Streamline packaging and source new designs
Hybrid equipment for manufacture and packaging
Combine similar units and departments
Adapt
Establish a recycling pant
Use robotics through automation
Modify
Adjust can sizes
Adjust material used in making cans
Modify packaging to suit "green initiates."
Lower prices
After-sale services
Coca-Cola’s Packaging and Waste management Sustainability Challenge 28
Eliminate
Remove old machines
Replace plastic equipment
Remove unnecessary units and departments
Remove redundancies through automation
Rearrangements
Rearrangement machines to fit the new layout
Use a flat organization structure
Adopt a participative/democratic leadership
Coca-Cola’s Packaging and Waste management Sustainability Challenge 29
9.2. Brainstorming
The tool facilitates idea generation for the sustainability problem caused by Coca-Cola's
packaging and Wastage management.
Divergent Thinking Reminder
a) Ensure that the choices are no track by checking objectives
b) Give an equal chance to each choice by being deliberate
c) Improve and strengthen the ideas
d) Before the elimination, consider ideas to be affirmative
e) Embrace new ideas
Fifteen Ideas
Communicate using satellite
Recycle using robots
Robotics to support human capabilities
Automate using computer technology
Conduct sustainability surveillance
Establish environmental awareness initiatives
Replace human mechanics with robot mechanics
Encourage smart packaging sensors
Print bottles using 3D technology
Inorganic plastics should be replaced with milk plastics
Produce prawn shell containers
Use stone plastics in packaging
Replace inorganic paper with a metalized paper
Package using sugar processing bagasse
Use plant-based plastic
