Different organizations and different organizational designs
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Different organizations and different organizational designs
Running head: MODULE 4 – CASE
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Organizational design
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Organizational design
Organizational design is a framework which arranges information, people, and technology in effective ways which could enhance general success. Different organizations have different organizational designs. Overtime scholars have kept broadening organizational design to matrix, divisional, and functional, with various variations. In this assignment I will analyzes Coca-Cola Company. I will start by drawing a diagram of the formal structure this organization has, identify the various management positions on the chart and indicate the positions which each would report. In doing this I will also identify various management positions which the chart indicate. The next thing that I will do is describing how work is divided and controlled, the informal structure of the organization, and how it deals with different-integrations. Finally I will complete the paper by analyzing the strengths and weaknesses of the organization design as well as the major improvements to the organizational design.
Organizational Structure
The Coca-Cola organizational design is described as “tall” meaning it incorporates both organic and mechanistic terms. The structure is complexity since it follows the following structure. On top of the organization is the President. Down the chart is it is broken to four assistants who play major parts in operation. They include; “Manufacturing, Corporate Staff, Finance, and Marketing. Coca Cola structure, further breaks to fit in different parts of the world” (Coca Cola, 2017). These divisions includes Pacific, North America, Eurasia, Europe Division, Africa, and Latin America Division.
All these division are further broken to further the operations. This organization has been designed in a way that it will improve effectiveness of all divisions and their efficiency. However, one enthusiastic thing about Coca Cola is that its setting is structured in a more concerned way that offers efficiency of running the business instead of its effectiveness. Coca cola structure occurs in this set up with the aim of reducing the overall costs against other firms which have numerous departments across the globe. Additionally, “it also allows each division to target their specific demographics in their areas they operate” (Coca Cola, 2017).
Coca-Cola has a Board of Directors who are not really individuals with most stock in the organization. According to Coca-Cola, (2017) “the Board of directors is chosen by the shareholders to administer their interests for the long haul wellbeing and the general achievement of the business and its money related quality.” When the board is chosen, they cannot simply do anything they desire. There are still choices that no one but investors can make. The board basically “choose various departments of the board beneath them to direct Coca-Cola’s business around the globe” (Baah, 2015).
Coca-Cola also has a top managerial staff as well as it has seven distinctive standing boards. These committees perform different duties. They include “Audit committee, Compensation committee, Directors and Corporate Governance committee, Executive, Finance, Management Development, and Public Issues and Diversity Review committee” according to Coca-Cola (2017). The Board also can include various panels if they want to, in light of the requirements of the organization. Every board of trustees have their very own individuals who are able to manage operations when they have meetings and the occurrence rate whenever they meet to address certain objectives.
Coca-Cola’s organizational design as said initially can easily be discussed as tall structure which incorporates both
organic and mechanistic models. However, this association has a progressive design, although currently it seems there
are higher developments towards decentralization strategy for management of simple divisions. “The essential issue of
The Coca-Cola Company is its responsiveness in managing their daily operations” according to Munyua, (2014). For
instance complexity in coordinating operations are normal for organic structures. As per various reviews, they did not
make the Company seek growth after standardization and simplification. “Centralization and high institutionalization are
related with a mechanistic design” (Baah, 2015).
This Company has a great informal structure where it believes people are work as a teams. The structure assumes their
employees work as a Global Teams. The company operates around two center resources, its brands, and its employees.
That is the thing that makes working here so uncommon. It is believed that work is in more of a spot you go to
consistently. Therefore, in Coca-Cola it ought to be a position of relational connections, proficient development,
creativity, and exploration. It is tied in with being propelled and spurred to accomplish remarkable things. The company
needs their people to invest heavily in their work and in structure brands others adore. All things considered, it is the
joined gifts, abilities, learning, experience backgrounds and passions of the employees that make the company what it
identity is.
As a result of differentiation and integration issues this company trains and creates awareness to all its employees.
Such strategies help them learn different markets and be able to share those learning quickly thus conquering issues of
product differentiation and integration. As a result of these issues, the organization’s culture has higher collaboration.
Out of their beverage concepts and growth to merchandise Coca Cola makes sure their associates have shared ideas
across different markets and departments in the current integrations. Thusly, their partners are progressively energetic
about their work and are inspired to transform their plans without hesitation. Management change in differentiation of
their operations is characterized by different way of accomplishing their flexible implementation and presentation to
deliberately prevent cases of being resisted.
This organization design has enhanced Coca Cola Company to attain several strengths. Through this structure the
company has been able to dominate market share across the world in the beverage industry. Through this strength, the
company has been able to improve its economies of scale, power over their buyers, reach wide audience, and achieve
market power over their competitors and suppliers. Second, it has “diversified their product portfolio with about 21
billion-dollar brand”. “It distributes and owns over 500 different beverage brands which are most extensive across the
brand portfolio in the general industry” (Walsh, 2012). Third, availability of competent staff. This organizational design
also has some weaknesses affecting their operation. One of them is the changing consumer preference if also a
weakness which the structure is facing. Second is the increased competitive pressure from rival brands. Lastly it is the
challenges in managing water since it is the main ingredient.
One major suggestion which I think if implemented could improve Coca Cola’s organizational design is that is should
identify and remove internal roadblocks which hinder effective performance. It will help the company to proportionally
enjoy high levels of independence. Having effective organizational structure Coca Cola company will be more productive
among all it work groups. They also enhance step-to-step methodologies in operations which identifies dysfunctional
work flow aspects, systems and structures, as well as management procedures.
References Walsh, H. &. (2012). Sustainability and The Coca-Cola Company: The Global Water Crisis and Coca-Cola’s
Business Case for Water Stewardship. International Journal of Business Insights & Transformation, 4 . Coca-Cola (2017)
Corporate Governance Guidelines Retrieved online from http://www.coca-colacompany.com/investors/corporate-
governance-guidelines Munyua (2014) Management styles & Leadership practices at Coca-Cola Retrieved online from
https://www.researchgate.net/profile/Jesse_Munyua/publication/264546311_ Baah, S., & Bohaker, L. (2015). The Coca-
Cola Company. Culture, 16, 17.
Different organizations and different organizational designs
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