Coca-Cola Company - Nadler and Tushman's Model - Example

Coca-Cola Company-Nadler and Tushman’s Model Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Organizational Analysis 4 2.1 Performed Tasks 4 2.2Organisational People 5 2.3 Organizational Structure 7 2.4 Environment and Organizational Culture 9 3.0 Strategies Evaluation 10 3.1 Performed Tasks 10 3.2 Organizational People 11 3.3 Environment and Organizational Structure 12 3.4 Organizational Culture 13 4.0 Recommendations 14 4.1 Competitive Distribution 14 4.2 Supplier’s Management 15 4.3 Reward System Expansion 16 4.4 Creative Culture Adoption 18 5.0 Conclusion 18 Works Cited 20 1.0 Introduction The global market is gradually and drastically changes. In this regard, the external environmental factors such as political changes, economic, social and technological changes, that organisations lack control over increase the need for organisations to adjust and change accordingly. However, in order to initiate a successful change process, organisations need a critical system evaluation and review to establish on the strengths ought to retaining a well as weaknesses for improvement. One such applicable evaluation model is the congruence model as developed by Nadler and Tushman. In its review, the model states that an organizational success in the market and competitiveness establishment is based on four critical factors namely the tasks, people, structure and culture. In order to evaluate on the practical application of this model, the research developed a review of the Coca-Cola Company a renowned global leader in the soft drinks industry (Bodden 11). The soft drinks industry is the third largest beverage drinks by popularity across the globe as illustrated below. As such, the evaluation evaluates on the organization’s four key areas as well as the established challenges. Finally, the research offers recommendations on strategic improvement required to ensure that the Coca-Cola Company remains competitive and influential in the soft drinks beverage industry both in the present and into the future. 2.0 Organizational Analysis 2.1 Performed Tasks The Coca-Cola Company is involved in various tasks in logistics and supply chain management. One of the tasks accredited to the organization is the manufacturing function. In this regard, the organization is directly involved in the process of manufacturing and producing its various beverage brands. In this case, the organization has over the years established manufacturing outlets for its respective brands. As such, the organization is involved in a creative task approach. In this case, as a measure to ensure that the production and manufacturing process remains up to date and efficient. Therefore, the process involves the development of creative and innovative manufacturing system especially in the light of changing and evolving technologies requiring changes in the manner and approaches in production and manufacturing organisations. In addition, the organization is involved in the task of distributing its products across the market. In this case, the venture is tasked with the task of developing approaches, infrastructure and strategies through which to avail the products into the global market for increased gains and revenues. In this regard, the distribution function is an involving task that requires not only market knowledge but also relationship building abilities. Therefore, in order to develop a lasting and sustainable distribution structure, the organization is involved in a creative endeavor for the social and relationship skills development. As such, the organization is actively involved in market surveys to understand the global market dynamics as well as evaluating the ideal and strategic market expansion distributors’ potentiality. Therefore, this analysis evidences that the Coca-Cola Company is involved in innovative and creative tasks that require market specific skills and knowledge as well as a continuous employee workforce training and development programs to increase and sustain efficiency. 2.2Organisational People Similar to other multinational organisations in the global market, the Coca-Cola Company has rich employee human resources to enable the successful execution and completion of its tasks. In this regard, the organization has both administrative ad staff employees. On one hand, the administrative employees are involved in the direct management and organization of resources in the organization. In this regard, the employees are charged with the mandate and responsibility of consolidating and organization the organizational resources (Bodden 12). Therefore, they are scheduled to function and serve as support to the organizational listed tasks execution at increased efficiency. On the other hand, the organization has its employees as staff employees. The chart below illustrate the key driving forces in people employment is illustrated below. In this case, the staff employees are employees equipped with specific expert knowledge and skills on avenues and approaches through which to execute the organizational tasks. In this regard, the organization relies on its staff employees to execute the listed tasks such as the manufacturing function as well as enable increased distribution success. As such, the employees are production experts, nutrition and food hygiene as well as logistics, supplier relations and transportation experts. Moreover, in order for the employees to function effectively, the organization developed integrated employee systems. As such, while as there are staff managers in the respective core departments, there are line managers as well. In this respect, the line managers ensures on the coordination of the staff managers function to facilitate the development of strategic developments for eventual organizational success in the market. 2.3 Organizational Structure A basic overview of the Coca-Cola Company management and organization structure establishes that the organization has an organic structure. On one hand, the organization has a decentralized management system. In this case, although the venture has a centralized headquarters in Atlanta GA, it as other regional subsidiaries. In this regard, the headquarters offers strategic decisions on product development and features as well as quality standards (Bodden 16). On the other hand, the regional subsidiaries have dispersed mandate of developing market specific decisions. In this regard, the subsidiaries develop unique and localized market penetration approaches such as the distribution partner’s evaluation and appraisal. However, in order to enhance retained standardization on the adopted procedures, the organization has standardized suppliers and distributors’ engagement regulations the policies are share across the regions. The chart below illustrates the organizational structure In its strategic approach, the organization has a relatively flexible management structure through which regional heads and managers are mandated to execute and develop changes as the market demands. Therefore, the organic organizational structure allows for the development of distinct market units. In its case, instead of developing joint units for marketing and selling its brands, the organization has established brand differences thus allowing for the management of the brands as distinct profit and management units across the globe. Finally, in terms of compensation, the organization mainly rewards its employees through salaries and wages. However, as Armstrong (13) stated, an additional measure to increase and enhance employee the organization adopts the use of non-financial rewards such as promotion and recognition on its employees. Therefore, through this strategic measure, the organization intends to persuade the employees to increased retention as well as productivity development over time. 2.4 Environment and Organizational Culture An organizational culture is classified as the approach and belief adopted in an organization. In this regard, a culture can be described as the manner in which organizational employee execute and conduct their businesses in the market. Therefore, an organizational adopted culture is one that influences the approach and perception of organizational employees in their duties execution. Based on this theoretical argument, an evaluation of the Coca-Cola Company is based on ethics. In this regard, the organizational employees are guided by the basic and fundamental principles of ensuring that the executed duties are ethical. On one hand, is the concept of quality. In this case, the organization has established a strong culture on quality delivery that transcends across all the supply chain activities. For instance, it has established an increased reputation on quality of the products as well as on customer care services and relationships with the distributors. Moreover, the organizational workforce has a culture on collaboration. As such, the employees are bent towards working together. As such, this has increased the application and use of teams as well as project oriented. Over the years, the organization has established a platform in which the employees are included and enjoined in project programs that are drawn from across the organizational units and functions as well as regions. In this case, the culture further promotes increased diversity representation where the workforce is comprised of diverse cultural backgrounds. Finally, the organization has an integrity and transparency culture. In this regard, the culture advocates for employees increased commitment to transparency. As such, the approach has enabled the organization establish an increased market reputation in that the public and the society at large can trust the organizational information flow thus raining the overall industry and global market reputation and perception levels against the organizational competitors such as Pepsi 3.0 Strategies Evaluation As already discussed in this revaluation research, a congruence analysis model establishes the application of diverse tasks, culture, structure and people in the Coca-Cola Company. However, it is imperative to evaluate how the discussed strategies and practice are suitable in the changing global market dynamics as well as their contribution role in the overall organizational success possibilities into the future. Moreover, this research section seeks to point out on any emerging weaknesses and challenges in the organizational operational strategies 3.1 Performed Tasks As the research discusses, the organization is mandated with two strategic tasks namely the production and distribution tasks. As Maidment (45) stated and similar to other multinational organisations, the Coca-Cola Company is directly involved in the production process while serving indirectly through partnerships in the distribution function execution. In this regard, a critical evaluation on the changing beverage industry needs and dynamics establishes that the adopted organizational tasks approach as satisfactory. On one hand, a direct involvement in the production process has a wide range of benefits in the current global market. One such merit includes increased efficiency in production. The organization has direct links with the consumer base. Therefore, it has enough data and information on the beverage needs in the consumer needs thus allowing for the production of the desired market products of the right quality. Moreover, the direct involvement allows for increased economies of scale through mass production. Consequently, this has facilitated a reduction in the organizational production costs thus allowing for reduced price in the market. Today’s consumers seek for money value. Therefore, in order to increase their money value on purchased products, the reduced product prices ensure that the consumers purchase more quality products for less. On the other hand, the organization establishes forward integration strategy in its distribution function. In this regard, it develops relationships with exclusive regional distributors who are selected on regional bases. Moreover, instead of licensing numerous distributors, the organization offers a single distribution license to a given distributor over a given geographical area. Consequently, this reduces undue competition and thus increases the distributors’ profit margin, serving as a motivational aspect for their increased delivery and distribution services as well as quality promotion. As such, the strategic approach adopted by the organization has increased its support and relationships level between it and the distributors. Nevertheless, the adoption of this geographical zoning for the distributors hinders the organizational development. The global market growth advocates for free market spaces that promote competition and quality. As such, the distribution guarantee offered to the organizational suppliers reduces their competition level a virtual that at times led to reduced distribution services quality in the market. 3.2 Organizational People The global market is experiencing changing production and marketing needs. In this regard, it demands for increased employee skills development and improvement as an avenues and approach through which their skills are matched with the market needs. In this context, Aswathappa (200) argued that such a skills and market needs matching approach is only achieved through employee training and development. Therefore, based on the adopted organizational training and development programs by the Coca-Cola Company, the venture has developed an up to date employee workforce that integrates and delivers as the per the changing market needs. In its training and development programs, the organization has both in-house and external training programs. One of the most ideal training programs by the venture is the Coca-Cola University and training center. In this case, the venture employees can seek and acquire rapid and real time responses to their queries. Therefore, the application of this approach has increased employee efficiency as well as service quality as they seek assistance and acquire it in real time. Moreover, the approach has played a vital role in reducing the cost of training and development. Although a vital component, the changing market needs demand for the reduction of operational costs especially on the noncore factors, of which training and development falls. Therefore, the adopted trading and development on the organizational employees has not only enables the organization increases its functional and performance efficiency, but also reduce on production costs, thus allowing for increased returns on investments and shareholders’ value maximization. 3.3 Environment and Organizational Structure Finally, the congruence model analysis in the research on the Coca-Cola Company established that the organization has an organic management structure, where sharing and interactions are propagated and executed. As such, the adoption of this management structure increases the organizational success rates in the current market context. As Aubry (437) stated, the current market situation is based on the context of competitive edges development through intangible assets such as knowledge and information within organisations. In this regard, the Coca-Cola Company organic structure allows for increased information and ideas sharing between its managers to increased rationality in the decision making process. Moreover, the evaluation establishes that the organization has diverse brands serving as distinct profit centers. In this regard, the approach allows for the development of unique target markets for the various brands thus expanding the overall organizational consumer base across the globe a virtue imperative in ensuring increased organizational revenues as well as stability across the annual seasons and regions. However, the decentralized decision-making structure for the various regional heads increase the cost of decision making, duplication of the decision making efforts as well as the time taken to develop decisions, all of which should be eliminated in order to allow for increased organizational flexibility in the changing global market contexts. 3.4 Organizational Culture As discussed, the organization has incorporated an ethical organizational culture, where each of the organizational activities and employee functions are weighed against the acceptable social ethical framework. As such, the application of this organizational culture has enables the organization establish a strong brand name, image and reputation in the market with both the internal and external stakeholders. Therefore, the culture allows for increased stakeholders’ integration an approach in line with current market needs. Currently, in order for organisations to succeed, stakeholder’s involvement and inclusion in the strategy formulation and decision making processes is imperative. Therefore, through this strategic approach, the inclusion increases decisions perception diversity as well as reducing change execution resistance in the market. Therefore, this research review establishes that the adopted Coca-Cola organizational culture increases stakeholders’ participation thus ensuring support and successful execution of the respective organizational strategies and policies. Nevertheless, the adopted organizational culture has its limitations. In the current market conditions, increased [performance and sustainable edges development is based on innovation and creativity among organisations. However, the adopted culture within Coca-Cola although argued to promote innovation, hinders creativity. In this regard, conformance to established societal rules causes the employees to adopt a logical thinking approach in their functioning rather than a creative and unique functioning approach that would promote creativity. Therefore, although perceived as satisfactory in the present context, the strategy will lead to an organizational creativity decline into the future, thus risking its losing its creativity competitive edge. 4.0 Recommendations Based on the congruence model analysis on the organizational tasks, people, structure and culture of the adopted strategies, the research evaluations evidenced the existence of weaknesses in relation to the dynamic beverage industry market changes. As such, in order to offer a remedy to this organizational challenge and mitigate the risks of failure into the future. The strategic recommendations are as discussed below. 4.1 Competitive Distribution One of the system identified weaknesses is the application of geographic dominance approach by the organizational distributors. In this regard, although the organization applies the forward integration approach in building distribution relationships with the viable and qualified industry distributors, its single sourcing approach serves as a weakness In this regard, due to the lack of competition and increased dominance over others in the industry the approach exposes the various distributors into reduced efficiency and competitiveness (Stewart, Gruys and Storm 169). Therefore, this poses the risk of reduced market spread and penetration in the market. Consequently, this research evaluation recommends the organizational approach change in the market. In this case the approach advocates for the adoption of a competitive based approach. As such, instead of selecting single distributors to serve in a given geographic region, many such distributors should be licensed. Consequently, this would have tremendous positive implications on the organizational change process. On one hand, the competitive approach would increase distributor’s efficiency. Due to the posed need to facilitate and increased competition, the organisations device innovative and strategic approaches to reach out to an increased consumer base as well as retain them. Therefore, this would ensure that the distributors reach out to an increased number of consumers in the market. Consequently, this has a positive market implication on the organization in that the consumer base outreach is enhanced an approach sustainable into the future. Therefore, based on this increased market success potential success, the research recommends the adoption of a competitive distribution partners approach by the Coca-Cola Company into the future. 4.2 Supplier’s Management The global market is dynamically changing as already discussed. In this regard, with decreasing sustainability and competitiveness through the adoption of tangible assets such as capital and economies of scale, organisations re evolving and resulting to the application and use of intangible assets as a basis for increased competitive edges. In this case, the concept of supply chain management has increased and grown in popularity due to its ability to promote and retain organizational market competitiveness. Smeltzer (41) stated that one of the fundamental supply management aspects is suppliers’ management. In this regard, suppliers have a direct impact on organizational production quality and statements in the market. Therefore, in this regard, the Coca-Cola Company is directly involved in the process of manufacturing the soft beverage in the market. Therefore, in order to ensure that the organization retains and upholds quality and on time delivery, it should liaise with the respective stakeholders in the supply base. In this case, it should establish a supplier’s management system to organize and adjudicate their relationships. Such an approach would develop the system for selecting the suppliers as well as appraising them. In particular, the system should be based on supplier appraisal system to ensure their increased quality delivery and production efficiency. In this case, through increased supplier appraisal, the organization would increase efficiency in materials quality and delivery thus increasing its own production efficiency and reducing the overall costs of production. As such, in the long run this research evaluation state that with increased supplier relationships, the Coca-Cola Company will in the long run increase the its production efficiency as well as reduce on its production costs in the market, thus creating a supply chain sustainable market edge in the soft drinks beverage industry. 4.3 Reward System Expansion A reward system is an approach through which organisations compensate their employees and other stakeholders for their services offered in the entire supply chain management process. As it currently stands, the organization offers the employees an increased proportion of financial rewards, with reduced focus on the non-financial rewards, an approach contrary to the present organizational systems. In this regard, the evaluation research argues that changing human needs, as evidenced by theories of motivation such as Maslow’s Theory ranking of human needs, necessitate the development of increased reward systems to the employees (Dubrin 375). Therefore, this evaluation research concludes that the Coca-Cola Company should expand its employees reward base to include non financial rewards. Such rewards should be in the form of internal CSR programs where instead of only rewarding the performing employees, their families are rewarded through avenues such as health covers and paid up holidays among others. In addition, the organization should expand its reward system to the external consumers as an approach to enhance increased consumers retention and loyalty. In this regard, the organization should establish systems such as through a point earning procedures that culminate in the award of discounts and free supplies to the loyal and frequent products consumers. As such, the expanded rewards system would ensure that the organization retains its current consumer base in the market to counter competition threats from peers such as the Pepsi Cola Company. In addition, the organization can include an additional reward system for its managers and other executive staff. In this case, instead of paying them through cash rewards, such can be rewarded through shares allocation. Consequently, the managers become part of the organizational shareholders enhancing the possibility for their increased commitment in the organizational productivity and performance. Therefore, this would ensure the managers increased commitment in a bid to ensure that their earned shares in the organizational ownership systems increase the overall productivity levels due to enhanced motivation by the expanded alternative reward system. 4.4 Creative Culture Adoption As identified in the analysis, the Coca-Cola Company has developed and established an ethical organizational culture that has enabled the organization earn increased market success through transparency, team work and overall market reputation development. However, the adopted culture has a major shortcoming in its reduction of increased creativity through increased adoption of the logical thinking approach (Flamholtz and Randle 25). Therefore, based on these reviews, this research establishes that in order to match up the global dynamic external environment the organization should develop and instill an innovation culture. In this regard, besides retaining the current culture, the organization should motivate its employees to increased innovation. This strategy could include improved training and development of innovation and entrepreneurial culture as well as increased rewards for creative practical innovations. Consequently, whichever the adopted strategy of the two, the organization would stimulate innovation and thus allow it to develop proactive products and strategies to mitigate and meet the emerging market needs in the dynamic global societal setting. 5.0 Conclusion In summary, the evaluation research developed a critical analysis review on the operation and strategies adopted by the Coca-Cola Company. As such, the evaluation applies the congruence model which highlights four critical organizational performance features namely the tasks, people, culture and structure. As such, a critical analysis of the tasks establishes that the direct manufacturing involvement as well as forward integration approaches in distribution increases the organizational efficiency. Moreover, the presence and interactions between the staff and lie managers increase their success. Further, the review establishes that the ethical based culture has promoted the organizational reputation globally while the decentralized structure increases its flexibility. However challenges such as distributors’ regional dominance, reduced innovation and creativity as well as reducing employee motivation emerges as key among the organizational operational system challenges. Consequently, as an approach to mitigate the challenges, the research offered a series of executable and applicable organizational strategy changes both in the present and into the future. The recommendations included a culture change, rewards system expansion as well as the adoption of a competitive distributors approach. Consequently this research argues that on the basis of the congruence model, application of the recommended strategies would increase the organizational global market success into the future. Works Cited Armstrong, Michael. Employee Reward. London: Chartered Inst. of Personnel and Development, 2002. Print. Aswathappa, K. Human Resource and Personnel Management: Text and Cases. New Delhi: Tata McGraw-Hill, 2005. Print. Aubry, Monique. "The Social Reality of Organisational Project Management at the Interface between Networks and Hierarchy." International Journal of Managing Projects in Business 4.3 (2011): 436-57. Bodden, Valerie. The Story of Coca-Cola. Mankato, MN: Creative Education, 2009. Print. Dubrin, Andrew J. Essentials of Management. Mason, OH: Thomson Business & Economics, 2009. Print. Flamholtz, Eric, and Yvinne Randle. Corporate Culture: The Ultimate Strategic Asset. Palo Alto: Stanford University Press, 2011. Print. Maidment, Fred. "International Off-Shoring: The Changes in the World Economy." Journal of American Academy of Business, Cambridge 15.1 (2009): 43-8 Smeltzer, Larry R. "The Meaning and Origin of Trust in Buyer-Supplier Relationships." International Journal of Purchasing and Materials Management 33.1 (1997): 40-8 Stewart, Susan M., Melissa L. Gruys, and Maria Storm. "Forced Distribution Performance Evaluation Systems: Advantages, Disadvantages and Keys to Implementation." Journal of Management and Organization 16.1 (2010): 168-79 Read More