Coca Cola Organizational Structure Essay – 700 Words | Bartleby

ORGANISATIONAL DESIGN
Before the nineties the Coca-Cola company was having a centralize system of control, but after sometime they realized that if they had to meet the demands of the customers they should adopt a decentralized system in which the authority of decision making is distributed between different managers so that every sector can be managed effectively. This system was implemented in the nineties by the company’s board of directors. Now the organization is having two groups who are responsible for operating:
 Bottling Investments
 Corporate
Operating groups are also divided by different regions i.e. Africa, Asia, Middle East, European Union, Latin America, North America etc. All the divisions are further divided into geographical

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ORGANISATIONAL STRUCTURE
Coca-Cola is “Tall” in terms of organizational complexity. Coca-Cola is controlled through a vertical hierarchy, with decision-making authority residing with the company’s upper
Coca-Cola has more than 700,000 system employees, including their bottling partners. The company’s operations reach over 200 countries worldwide, with six geographic operating segments. Coca-Cola’s head office is responsible for providing the company with an overall direction and support to the regional structure. The company’s Executive Committee makes key strategic decisions for the company. The Chair of the Executive Committee acts as a figurehead for the company and chairs the board meetings. He is also the CEO and is the senior decision

The turnover has been reduced because the employees feel more engaged in the work. The organization’s growth rates increased and the return of equity for by Isdell proved to be good for the organization and the employees were also happy with the change which is reflected by the end results of the company..ORGANISATIONAL STRUCTURECoca-Cola is “Tall” in terms of organizational complexity. Coca-Cola is controlled through a vertical hierarchy, with decision-making authority residing with the company’s upper management . Daily and routine decisions are made by the line managers at the middle level.Coca-Cola has more than 700,000 system employees, including their bottling partners. The company’s operations reach over 200 countries worldwide, with six geographic operating segments. Coca-Cola’s head office is responsible for providing the company with an overall direction and support to the regional structure. The company’s Executive Committee makes key strategic decisions for the company. The Chair of the Executive Committee acts as a figurehead for the company and chairs the board meetings. He is also the CEO and is the senior decision

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When one of these divisions is planning to do something, an advertising campaign for example, the division has to communicate with their superiors to get approval. Since the company’s hierarchy is so tall, communication has to travel back to corporate headquarters in the U.S, where the Executive Committee has the final decision making power for activities the divisions have proposed. Below is an organizational chart of the company.
ORGANISATIONAL GOALS
Coca-Cola is both effective and efficient, as they have made it their objective to succeed in these areas. Coca-Cola is more focused on efficiency than effectiveness, but they still achieve in both. Regardless of what they specialize in, their organizational goal is to maximize profits for shareholders by selling Coca-Cola products worldwide to a wide range of customers. They are able to do this by having a very vertically hierarchical organization that allows them to take advantage of a low cost strategy, limiting expenses and increasing revenues.
LEADERSHIP