3.0 Putting Strategy into Action
3.1 Organizational Structure
An organization structure is defined as a pattern of relationships among members of an organization (Diasz, 2017). It defines how activities within the organization are coordinated and directed towards achieving organizational goals. The structure can be a functional structure, SBU structure, Territory, geographic or market structure, a matrix structure or network structure.
The Organizational structure of Coca Cola Sri Lanka is a functional structure with a flat span of control. This structure exhibits simple control mechanism, ensures a clear definition of responsibility and has specialists positioned in all the senior and middle management levels. However, this structure tends to lure away senior managers from strategic issues, as they are over burdened with routine matters. There is also gap between in each function as the structure itself is not made to cope with diversity and hence, coordination between each function can be difficult.
In order to overcome this position, Coca-Cola Sri Lanka could gradually move towards a matrix structure. This is where the reporting lines in the company structure are set up as a grid or matrix instead of the traditional hierarchy. For an example, the marketing department will have a HR business partner, Finance Business partner and legal business partner. The business partners report their functional heads and well as the marketing head. This enables the business partners