The Organisational Behaviour of the Renowned Coca-Cola Company - Case Study Example

MANAGEMENT RESEARCH METHODS RERSEARCH PROPOSAL Submitted Submitted By: Umair Candi Number: 24th October 2008 CONTENTS Abstract ……..……………………………………………………………………….1 Management Research……………………………………………………………….1 Introduction to Coca-Cola……………………………………………………………3 Task 1/Hypothesis…………………………………………………………………….3 Task II…………………………………………………………………………………4 Research Methodology ……………………………………………………………….4 Conclusion……………………………………………………………………………..17 References……………………………………………………………………………… PART I RESEARCH PROPOSAL ABSTRACT The present research proposal aims to study the organisational behaviour of the renowned Coca-Cola Company with special reference to its business environment, corporate culture, strategic plans, PESTLE Analysis and future schemes under the atmosphere of perfect competition and challenging corporate milieu of the contemporary era. It also estimates the recent trends and developments as well as growth, strengths, weaknesses, opportunities and threats faced by the company. The main purpose behind the research is to find out the significance of corporate responsibility in present-day world of industrialisation and technological advancement. The report focuses on the implication of company’s internal and external analysis for meeting the targets and tackling with new challenges in a determined, productive and highly innovative way. Since it is an ethical duty of an organisation to apply corporate governance in its management, the companies look into their management, products and staff requirements properly for the unabated growth of their products and popularity. Based on the management research methods, the present report defines how the industry, under study, can enhance its trade level according to the growing requirements by increasing the sales volume and presenting its products to the consumers in a more refined and an innovative way. The researcher suggests the use of interview-schedule as the tool for data collection for the present research, because it offers face to face interaction opportunity while collecting the data. Quota (non-probability) sampling will be applied in order to interview the population consists of the employees working in different areas of the city at various positions and departments in order to represent the whole corporate community of the Coca-Cola Company. MANAGEMENT RESEARCH: Management research methodology refers to the technique that concentrates on the professional performance of the owners, directors, managers, employees and staff members through the information and given data related to the administrative and management activities of the personnel within their organisation. In other words, management research is the systematic procedure for the collection and analysis of data regarding some specific activities related to administration and corporate culture of the organisation under study. Management research supports the industries and companies for a comprehensive and an analytical assessment in respect of the views, preferences, requirements as well as prospects and perils related to the human resource of their organisation. The data gathered and interpreted during management research significantly supports the organizations draw out future plans according to the changing trends and scenario of the global business environment. It is considerably helpful in enhancing the organizations’ communication and interaction consequently expanding the volume of production and sales. “Management Research Methods”, Tharenou et al. submit, “is a comprehensive guide to the design and conduct of research in management-related disciplines such as organisational behaviour, human resource management, industrial relations, and the general field of management.” (2007: p 18) INTRODUCTION TO THE COCA-COLA COMPANY: Coca-Cola is one of the most admired brands among all the world-class products and industries in general. Its title, brand and logo are thought to be the symbol of excellence and confidence. The corporation has completed so much achievements during nearly quarter past century that it is not dependent of even an introducing itself any longer. It serves like a landmark in the history of recent public beverages and food manufacturers that are thought to be very popular among people belonging to each and every age-group and socioeconomic class alike. Coca-Cola was introduced in May 1886 in Atlanta, Georgia and in the beginning the sale was less than its product. (Quoted in the thecoca-cola company.com). Presently, it is thought to be at the top in respect of sales among the soft drinks, mineral water and food products of the globe. “The Coca-Cola experience”, Lin observes, “offers a fascinating example of the participation of an international business in local and global market development. The pace, accelerated by its preparations for possible accession to the World Trade Organization (WTO), global business systems like Coca-Cola may help stimulate economic growth, employment, and tax revenue and reshape corporate responsibility subsequently.” (12-23-1999). TASK 1: HYPOTHESIS: The primary stage in a research process is the development of a cleared, precise and well-knitted proposal. (Lusk 2004) Management research is always conducted either to affirm or reject the already existing administrative structural theory or to find out and prove new realities for the support of recently developed hypothesis and proposition. Since the present research proposal aims to estimate organisational behaviour of TCCC, the research is interested in finding out if there exists or not any relationship between learning methodology, unique corporate cultural traits and strategic planning on the one hand, and the growth and development of an organisation on the other. The main objective behind discovering emplyees’ relationships with their corporate culture and learning methodology is to discover the role of management to keep the organisation at sound pace. The research will also be helpful in respect of determining the paradigms for bringing improvements in the corporate sector. The following hypotheses is suggested to be formulated for the present research: Hypothesis 1: Stronger the communication and co-operation between the employees at departmental and inter-departmental levels of the organisation, more the chances of its sound teamwork and subsequent growth under the contemporary state of perfect competition in corporate environment Hypothesis 2: Better the formal and informal training methodology of the organisation, higher the level of learning and development of its employees Hypothesis 3: Broader the vision of the board of directors of a corporate organisation, brighter would be the chances of devising and revising of corporate strategy according to the changing global business environment Since the research being conducted has been proposed to examine the organisational behaviour, the hypotheses, above-mentioned, aim to accomplish an analytical study to accept or reject the concepts and variables, applied in the present research proposal. TASK II: Since Coca-Cola is a giant brand, under which thousands of employees are working at different positions, which belong to divergent social, religious, racial and ethnic groups. The diversity always gives a go either to the acculturation and assimilation, or the competition and conflict. It is the dynamic leadership that helps the employees working jointly towards a positive and creative direction without taking these apparent differences in mind. The research methodology applied for the present research seeks to observe the work environment and corporate culture of the company. The main purpose behind selecting the population of New York City is to assure the representation of individuals from divergent socioeconomic and ethnic groups working at various levels and departments of the Coca-Cola Company. In addition, since the research hypotheses look for the interaction level, communication style and inter-departmental co-operation among the staff members and employees of the company under study, it is therefore the following research design has been developed for the current research work, which is as under: RESEARCH METHODOLOGY: Universe: As the researcher is the student of the New York University, he aims to select members of the white, yellow, brown and black staff of Coca-Cola Company working in the New York City. Sampling: The researcher intends to apply quota/non-probability sampling to represent divergent staff members of the organisation. The research will be comprised of employees from directorial, managerial, supervisory, technical, accounts, marketing and labour departments, to get the complete representation of the organisation. The universe will study the staffs, which has been rendering services for the last five to ten years to the organisation under study. Being the vast topic containing distinguished departmental elements, the researcher is interested in conducting the research in the culturally diversified city of the USA. Tool for Data Collection: Interview-schedule will be applied as a research tool in order to gather the data from the respondents. Interview schedule will be consisted of twenty nine questions and will be divided into three parts. First part will be about the general enquiry including the questions related to age, socioeconomic status, profession and other basic information. Second portion of the study will be formulated to enquire about professional life and job experience of the employees as well as the atmosphere in which they are working. The final section will represent the level of inter-departmental co-operation as well as strategic planning of the organisation. Pre-testing: The researcher will conduct pre-testing to draw out errors and flaws in the interview schedule. At first, ten individuals will be interviewed and changes will be made in the questions, if required, after the pre-testing. Data from Head Office: The researcher intends to contact the Admin of the Head Office of the Coca-Cola Company and will seek permission of the high personnel in order to conduct research work. On the basis of the comprehensive data, as well as the permission allotted by the personnel, the researcher will visit different offices of the organisation in order to get them interviewed for the collection of data for the present research. The participants will be assured that their identity, statistics or any material or information related to them or their personal and professional life will not be disclosed at all, which has been enquired from them during the gathering of data from them. Advantages of the Research Work: The present research work will be highly beneficial in estimating the level of the intimacy and learning phenomenon of the Coca-Cola. The readers may seek knowledge out of the research findings and analyses. In addition, the present research work will also open new dimensions of study for the future students conducting research on the same or related topic on management and organisational behaviour. TASK III: ACTION PLAN: Management Research in Theory and Practice Management research concentrates not only on the devising and revising of strategic management according to the needs of the employees, but also it discusses how these alterations can be met with by exercising some specific strategies according to the growing requirements within a commercial set up. In the same way, a researcher tries to explore the personnel’s views regarding the problems they undergo in communication, incentives, facilities, promotion structure and growth in career in comparison with the rival and competitor companies and brands with the passage of time. As the contemporary era is the era of perfect competition and there are plenty of companies in each and every field, a successful corporate firm has to keep an eye on the business strategic plans and innovations of the competitor companies in order to sustain its position within the business environment. The present study looks for entering into the PESTLE, SWOT and other relevant analyses in order to estimate the management of the Coca-Cola Company with the political, environmental, social, technical, legal and economic changes taking place far rapidly than it happened in past. The researcher will start conducting one-on-one interviews with the Director Management and Director HR in order to get the approach of the top management in respect of the corporate behaviour of the directors towards their sub-ordinates. It may take one week in getting the data from the Board of Directors. After this, the researcher will conduct interviews with the managerial staff, and ten managers administering finance, HR, Marketing and Accounts Departments will be interviewed. The researcher will personally visit all the branches of the company under study, which may take approximately three weeks in the collection of data. Supervisory data will consist of eighteen respondents belonging to different departments. The number of executives as respondents will be twenty four, while the remaining twenty four respondents will belong to lower management categories and labour stratum of the organisation. The whole research process will be completed from seven to eight weeks, and then the data will be carefully analysed. The researcher will apply ANOVA Test for the present research. Theoretically, many concepts are discussed under this topic, though practically, management research is the process based on all the developments being made in the business environment in everyday life. Kenneth D. Bailey (1987) has defined five steps of research process including choosing the research problem and stating the hypothesis, developing the research design, gathering of data, coding and analysis of data and the interpretation of findings on the basis of the data gathered. (1987: pp 9-10). Almost all the researchers follow these steps while conducting both marketing as well as social research processes. PART II TASK IV Collecting and Reviewing Secondary and Primary Data Management and marketing researches are generally conducted in order to collect the data in respect of a corporate firm and its culture as well as the products it manufactures and sells. The researchers divide the data into two categories i.e. primary and secondary data. The primary data is one which is collected by the researcher himself by conducting surveys, interviews, observation, participant observation, focus group discussions and logs. In all these cases the researcher himself is involved to study the population and collect first hand information for the research process. The same is the case with the current research, where the researcher aims to collect all the primary data by conducting interviews of the employees on the one hand, and entering into face to face discussions on the other. In the same way, secondary data is also utilised for the gathering of information during the research process. Research articles, newspapers, books, magazines, periodicals, reviews, radio and television channels, internet websites, public records and learnt information from the people are included in the secondary data. “Secondary analysis”, Heaton argues, “involves the use of existing data, collected for the purposes of a prior study, in order to pursue a research interest which is distinct from that of the original work; this may be a new research question or an alternative perspective on the original question (Hinds, Vogel and Clarke-Steffen 1997, Szabo and Strang 1997: Quoted in Heaton, 1998). The researcher intends to visit various websites containing the material related to TCCC including the web page of the Coca-Cola Company. In addition, the business periodicals and journals containing the researches already made revealing different aspects of the company, would also be consulted and referred to during the current study. Data Collection: After pre-testing and finalizing the schedule, the actual data will be collected. The researcher personally interviewed all the eighty eight respondents. The researcher will include twenty nine questions in the questionnaire, and the focus of the study would be on the organisational behaviour of the staff. The researcher will included each and every thing which he considers pertinent to the upper, middle and lower management of Coca-Cola. The following table indicates the distribution of respondents on the age basis: TABLE 1 Distribution of the Employees on the Age Basis Age in Years Frequency Percentage 20-25 6 6.82% 25-30 11 12.50% 30-35 22 25.00% 35-40 17 19.32% 40-45 12 13.64% 45-50 8 9.09% 50-55 7 7.95% 50-60 5 5.68% Total 88 100.00% The above table indicates the very fact that half of the respondents belonged to age groups from 25 years to 40 years, while nearlyr one forth of them were from 40 to 50 years age group of TCCC. Figure 1 Distribution of the Employees on the Age Basis TASK V: Analysis and Interpretation of Appropriate Qualitative And Quantitative Data “Management and marketing researches are stated as the process of planning, collecting and analysing data relevant to a marketing decision.” (Lamb et al, 2005: p 219) Qualitative Research is collecting, analyzing, and interpreting data by observing what people do and say; whereas, quantitative research refers to counts and measures of things. In addition, qualitative research refers to the meanings, concepts, definitions, characteristics, metaphors, symbols, and descriptions of things. (Quoted in geocities.com) In simple words, qualitative research concentrates upon the reasons of the individuals views regarding some specific product or services, while quantitative research is eager to collect and gather the data to find out the percentage and ratio of the individuals using the product. One of the most important matters of grave concern while conducting a research is the validity of the data collected for this purpose during the whole process. “Statistical data analysis”, Bailey views, “is the culmination of the long process of hypothesis formulation, instrument construction and data collection.” (1987: p 390) The most appropriate methods to test the accuracy and soundness of primary data is to produce in the form of table presentation, univariate presentation, percentages and bivariate presentation. All these include the most appropriate methods of analysing both primary and secondary data. The tabular form, with percentage, ratio and frequency distribution support in estimating mean, mode , median, standard deviation and other methods of calculations to find out accurate and precise results. The power point presentation has brought revolution in respect of splendid staging of data in a precise and gorgeous way. Research Planning and Result Planning is an essential part of research work, without which the process is not valid and reliable at all. The planning is developed during the research process keeping in mind which of the population is to be studied to get accurate findings related to the topic under study. Similarly, sampling is drawn by applying latest research techniques and methodology; and tools for the collection of data must also be appropriate according to the nature of research work so that there can occur no flaws while conducting the whole procedure. The questionnaire or interview-schedule should be comprehensive and precise to cover the relevant questions. The researcher intends to apply the same techniques while conducting the research process, where unnecessary questions will be excluded from the tool for data collection. Similarly, the questions which can ignite the sentiments of the respondents are also avoided. The researcher exercised no biased ness while preparing and conducting the research process. The focus is laid on the extraction of replies and responses. Unnecessary involvement in personal information is against the ethics of research process. Statistical formulae are applied in respect of finding out the results to stage them in tabular form. Table 2 Daily Work Hours of the Employees Work Hours Frequency Percentage 5----6 7 7.95% 6----7 24 27.27% 7----8 38 43.18% ≥ 8 19 21.59% Total 88 100.00% Table 2 shows the very fact over seventy percent of the respondents paid heed to their professional activities from 7 to 8 hours a day, while one fifth of them spent their time on duty more than 8 hours per day. Figure 2 Daily Work Hours of the Employees TASK VI RECORD FINDINGS: The data in the contemporary researches is not only collected and analysed in a systematic way, but also record is well arranged and managed properly in order to make further comparative analysis with the previous as well as future researches. The record keeping in conducted on the basis of following research work: Data Analysis and Recording: Data analysis refers to the assessment and estimation of the data gathered and collected during the research process. By this all the information could be gathered so that the management and administrative aptitude could be estimated. Management decision problems are different from marketing research problems. The former lays stress on making the decisions regarding the management of particular issues according to the changes in business environment. Actually, marketing research problems, on the other hand, refer to the problems researchers face while conducting the whole marketing research process. The selection of research topic, selection of population under study and gathering as well as analysing of data to get accurate findings—all these factors are included in the marketing research problems. Use of proper techniques during the whole procedure, tools for data collection and proper coding and interpretation of results are also marketing research problems. A researcher has to be dexterous in all the steps, research methodology and terminology to conduct the whole course properly. Further, a researcher should remain absolutely neutral to conduct the whole process without any slightest biased ness or prejudice. He should conduct research on the basis of facts and figures without implementation of values or favouritism to the topic. PART III TASK VII: Present and Summarise the Findings Using Suitable Methods: Presentation and summarising of the research findings are also very significant in respect of management research methods. The presentation and summary of the present study can be made under the following headings: Corporate Governance of Coca-Cola: The term corporate governance refers to the rules and regulations introduced to regulate the firms, companies and business corporations. In other words, it is a systematic way of managing and controlling the affairs of a corporation. The main purpose behind corporate governance includes the motivation, welfare and growth of both the company and its employees in a systematic and an organized method. In the same way, it urges in presenting a product which is highly beneficial for the customers, clients and public as well. Strategic analyses are inevitable for the smooth running and rapid growth of an organization, which determine and form these rules necessary for the proper growth of an organization. “Western management thinking”, Mair views, “has traditionally assumed trade-offs between products quality, cost and delivery; high quality cost more and took longer; low cost meant low quality too.”(1996:667). Coca Cola Industry has introduced training sessions in its corporate culture in order to make the employees updated and teach them business ethics and corporate responsibilities. Motivational factors are always kept in mind during these training sessions, meetings and seminars. Famous psychologist Abraham H. Maslow has elaborated five levels of motivation in his famous Need Hierarchy Theory (1943). These levels include physiological, safety, social, ego and self- actualizing ones. Maslow opines that as the motivation takes start from the lowest level, so requirements of the employees must be fulfilled in priority to motivate and inspire them towards their work and to develop their interest in the tasks they are to fulfil. He submits that if senior management is interested in patronizing the addressing of most significant motivational factor in the staff of an organization, all these above mentioned levels of motivation should be satisfied. Physiological needs offer an employee happiness and satisfaction and the interesting work is the first and foremost factor of motivation and the part of his concept of self-actualizing factor. In addition, if an employees salary or wages are not sufficient to obtain basic needs, his motivation level will surely be low. The Coca Cola Beverage Industry keeps this point in view while developing its strategy. They assign the employees targets and tasks according to their aptitudes and talents. Similarly, admiration and appreciation from the management on showing commendable performance raise employee’s self-esteem and he works more arduously in future. The Coca Cola industry announces promotions, souvenirs and salary-increase on showing extraordinary performance in different departments. They learn that hard work and determination win applause and admiration in life. A satisfactory and appreciable environment is created out of this all, and the employees feel secure and envy their work atmosphere. Job security is the fourth one in Maslows list of motivational factors. If an employee’s job is not secure, he may be involved in searching out some other job, and his energies will not be focused on the tasks he has been assigned with. It is manager who motivates the employees and members of staff regarding the achievement of tasks determined by the top management. All the famous brands of global reputation including Honda automobiles, Coca Cola beverage industry, Microsoft Corporation, Virgin Atlantic Airways, Hitachi automotive production company and others exercise different aspects of motivational factors in their strategic planning in order to increase their market volume as well as widen the canvas of their sales and production consequently. The strategy of a company lays stress upon the services being offered to clients and customers, management and staff. Organizations divide their business units into different sections for proper work performance, among which quality control section serves as the backbone in an organization’s growth; it is therefore, companies pay special attention in recruitment of technical staff because they represent their company while presenting the product before customers. Moreover, production department is the window through which consumers judge the quality and price of products as well as standard of the organization. It is therefore companies make comprehensive recruitment plans and apply various methodologies to hire accurate persons. It can support the management explore the secrets of the unabated accomplishments, sound reputation, overwhelming business activities and corporate culture of the company. TASK VIII: The researcher has applied comparative corporate methodology in order to elaborate the management methods of TCCC, which can show the corporate culture of the company. In addition, Maslow’s Need Hierarchy has been applied for the present study. The following heading defines the corporte culture of TCCC: Corporate Culture Of Coca Cola The Coca Cola maintains a unique corporate culture and magnificent business traditions. Though, with the inclusion of various rival beverage companies at international levels, the Coca Cola Industry has to face the situation of perfect competition, yet the product is as popular today as it was in past. Even then there always exists an urgent need of exploring innovative ways to make it more and more attractive for the consumers. The Coca Cola Beverage Industry has successfully combated with the rival mania with the help of its comprehensive strategy and hard efforts of its management and employees to earn far more business than its rivals could only dream. It is therefore the industry has exceedingly been concerned in introducing corporate culture, so that employees can prove themselves not only hardworking and loyal staff members, but also can become productive and useful citizens of society. Its corporate governance strategy is successfully fulfilling its obligations towards the staff and environment alike according to the prescribed rules of law. TASK IX: CONCLUSION To conclude it is evident that a management research aims at finding out the management of a corporate firm in order to estimate the achievements of a magnificent organisation on the one hand, and support it by giving suggestions to enhance its sales volume. A corporate firm must be careful while devising methodology and implementing strategy in its set up. No action, activity or policy of a firm can be against the interest of employees and environment. A company must be aware of abiding by the prescribed rules to save the environment and do least harm to it during the course of its production procedure as well as destroying its fossils and remnants. The high management and personnel of director or senior managerial levels must adapt themselves in such a way that the junior staff and employees can learn something new while interacting with them for the benefit of the company and public. The great industries like Coca Cola which is the symbol of wonderful achievements and series of triumphs must be more attentive and conscious in respect of corporate governance and responsibilities, which help the industry in respect of making distinction with other companies as well as its unique cultural characteristics will serve as role model for the business community to imitate. RECOMMENDATIONS A true researcher must always observe all the appropriate techniques and research methods while conducting a research. In addition, professional ethics must also be kept in mind in order to make the whole research process a complete success. Professional ethics refers to the rules and regulations, based on moral values, prescribed to define the patterns of professional behaviour. This behaviour supports to illustrate rights and obligations of individuals to some specific sort of work. As it is a fact beyond doubt that all corporate firms and business organizations outline plans to improve the degree of their sales and production and boost their commercial activities, these plans determine their future way of action as an important ingredient of their strategies. But it does not mean that it should concentrate on profit and sales generation altogether. On the contrary, there always exists the need for a comprehensive and transparent methodology of formulating a corporate approach and revising it according to the changes taking place in corporate sector in a very fast pace. The foundation and methodology of a great organization is always based upon the political, economic, social, technical, legal and environmental demands and requirements. The same is the case with the Coca Cola Beverage and Food Industry. It is proposed to the high authorities of the Coca Cola Industry that it must arrange technical and corporate training workshops not only twice a year to sustain its position as the biggest and most successful beverage brand of the world, but also instruct them work for the betterment of society. The personnel from the head office should be appointed for examining the place and area where the product is being manufactured. They must view that no production process could harm the environment or inflict pains and sufferings to public at large. Further, PESTLE (political, economic, social, technical, legal and environmental variations) and SWOT (strengths, weaknesses, opportunities and threats) analyses should also be the part of all strategic plan. It will help the employees looking into their performances and analyzing them individually and collectively. Many of the matters are settled due to the adaptation of some specific cultural traits, which promote high observance of discipline and co-operation within the boundaries of the industry. REFERENCES: Andrews, K. R. (1971) The Concept of Corporate Strategy. Homewood: Dow Jones: Irwin, Inc. USA. Chapter 1 p.2 Johnson, Gerry & Scholes, Kevan. (1993). Exploring Corporate Strategy. Text and Cases. Third Edition. Prentice Hall New York. p 197. Lin, Justin Yifu, Ping Xinqiao, and Young Daiyon. The Economic Impacts of Coca-Cola System on Chinese Economy. China Centre for Economic Research (CCER) at Peking University. China. 12-23-1999.(Yergin and Stanislaw, 1998, p. 14). Maslow, Abraham. H. (1943). A Theory of Human Motivation. Psychological Review, July 1943. 370-396.www.Funderstanding.com www.thecoca-colacompany.com Wit, Bob De & Meyer, Ron (2003). Strategy Process, Content, Context Third Edition Newman, William H And Logan, James P. (1976). Strategy, Policy, and Central Management Seventh Edition, South-Western Publishing Company, West Chicago. P 31 Heaton, Janet. (Autumn 1998). Social Research Update Issue 22. (Quoted in http://www3.uakron.edu/witt/rmfcs/SRU22.html). Corporate Governance. University of Technology Sydney. (Quoted in ccg.uts.edu.au/corporate_governance.htm) Tharenou, Phyllis., Donohue, Ross. & Brian Cooper (2007) Management Research Methods Cambridge University Press ISBN-13 978-0-52169-428-5 pp 15-18 (Retrieved in www.cambridge.org/catalogue/catalogue.asp?isbn=9780521694285&ss=fro) Read More