Coca Cola Case Study

Introduction

There is a famous Greek philosophy, which says that the only thing constant is change. This change is applicable to any individuals , organizations and even on the entire economy. However the importance of change is most important for business organizations, because they are working in an ever challenging and dynamic environment (Rosenbaum et al., 2018). The internal environment of any business is controllable and therefore the change might not seem evident , however the external environment provokes changes in order to stay at par with the external forces and stay competitive in the market. 

Company’s Profile and factors inducing organizational changes

Coca Cola is one of the top brands globally. They are known to be one of the major brands of food and beverages. They are operating in more than 200 countries and have a diverse portfolio of around 380 different food and beverages products under various brand names. Organizations, which are operating on such a huge scale, requires changes both domestically and globally. They are facing competition and other external challenges, which require solutions; the solutions require organizational changes. These changes might be induced due to: 

Changes in technology

The technological environment is ever changing and any business requires to change its technology before its methods or operations turns obsolete. Not only they can get obsolete but with time they might lose their competitive advantage and becomes easier to imitate by competitors. This changes help in gaining quality and efficiency which provides cost effectiveness and competitiveness in market. For instance, Coca Cola need a constant investment in methods to lower their cost, minimize wastage and bring innovation in products and production processes (Pollack & Pollack, 2015). 

Changes in consumer expectations, tastes and preferences

Coca Cola is not only known to be leading beverages manufacturer but also known for producing beverages which are mostly synthetic and unhealthy. Currently the taste of consumers and brand loyalty overshadow this perception, but with increasing awareness and inclination towards organic, healthy and natural products , there will be time soon when competitors will start taking market share from Coca Cola , mainly because their products are considered to be unhealthy or synthetic (Brodoni, 2020). 

Changes in competitors’ strategy

The carbonated and juice industry is highly competitive globally, and therefore it is imperative for Coca Cola to make organizational changes to meet the competition effectively. These changes are mostly related to supply chain strategies, production methods, restructuring organization, creating or merging strategic business units and introducing or divesting in brand portfolios. 

Changes in political and legal climate

Operating in more than 200 countries , Coca Cola has to face many challenges related to changes in macro-economic landscape. They require responsive strategies to counter any changes in legislations , legal requirements or taxations. 

Changes to increase employees performance

The multinational brands usually implement similar organizations structure and policies globally. However, every market requires modification is methods, policies and organizational structure, based on domestic environmental forces.