Coca Cola Organization

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The Coca Cola Company, founded in 1886 in Atlanta, the United States, is the world’s largest nonalcoholic beverage company. Coca Cola currently owns and markets more than 500 beverage brands (Anonymous, 2010), including waters, sports and energy drinks, juices, tea and coffee, which are distributed in over 200 countries throughout the world. Along with Coca Cola, the company also owns Sprite, Fanta and Diet Coke, which are four of the world’s top five nonalcoholic beverage brands (Anonymous, 2010). As a company with a history of over 120 years, the Coca Cola Company now has an operating structure with seven operating segments and approximately 139,600 worldwide employees (Anonymous, 2010). Today, Coca Cola has subsidiaries around the…show more content…
Simultaneously, higher-level management can have the authority to take control of the overall strategies and concentrate on the company’s distal goal. The Coca Coca’s big success is not only due to its continuing effort on producing different beverage, but also its moderate organizational structure plays a salient role. Firstly, because the Coca Cola Company, based on the annual report, has over 400 products, the product structure seems to be too costly and unrealistic to implement. Therefore, the multidivisional structure is an appropriate structure and brings benefit for the company. A significant strength of this structure can allow the company to react to changing and uncertain environments while also maintaining a level of stability. Moreover, the specific decision and strategy can be made by regional managers to suit particular situation of one area without triggering some conflicts. For example, when one region wants to conduct a specific marketing promotional strategy which is not be appropriate for another region due to the diverse marketing environment, so decisions about specific marketing tactics are made closer to that region. And thirdly, within each region, the structure is mainly divided based on the functional departmentalization, and undoubtedly, communication among each functional unit’s members is free and efficient because of the same knowledge and expertise. Thus, the work and decision can be done more efficiently.
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