The role of an organizational structure is to provide three main components of an organization; allocation of activities, coordination of orders, and supervision of work as a whole. Coca-Cola publishes its organizational structure as a part of its yearly Coca-Cola SWOT analysis.
The essential features of Coca-Cola’s organizational structure include two main operating areas.
First, it helps the design maintain a thorough procedure developed through years of expertise, and second, it paves the way for each employee to participate in the whole system.
So, here are four essential features of Coca-Cola’s organizational structure.
-
Multinational logistics
The logistical apparatus of Coca-Cola is enormous and probably one of the biggest in the world. A local Case study solutions published in 2020 provides details of four multinational dealing of Coca Cola on an international scale
- Manufacturing
- Marketing
- Sales
- Distributing beverages (non-alcoholic)
The distribution chain is spread across 200 countries and caters to a customer base of 1.6 billion a year.
The primary organizational character of Coca-cola is diverse and decentralized. The main two divisions are Bottling Investment and Bottling Corporate. Each of these divisions is subdivided into a group of countries such as Asia, Africa, Latin America, the European Union, Eurasia, North America, and the Pacific.
-
Decentralized nature of the organization
As said earlier, the organization is pretty decentralized. Thus, local managers of each division enjoy greater power in decision-making.
It helps the management respond to an unpleasant incident or errors quickly and spontaneously. This is why higher operatives at the headquarter can focus on brand building and innovation.
-
Departmental divisions
Within each regional division, there are the following departments
- Planning and strategy
- Research and development
- Finance
- Innovation and brand building
- Human resources
All departments have top-level managers who enjoy autonomy in decision-making. But the core point is to align the decisions with the company’s overall objective so that the local level orders never deflate the organizational mission.
As a result, the regional offices enjoy much greater independence in marketing and planning.
One such example is the 2002 World Cup. The marketing team from Coca-Cola’s headquarter in Atlanta decided to become the brand ambassador. But marketing and branding of each region depended on the local level management.
-
Effective communication and networking
The company has an intranet system that is responsible for maintaining the communication network of the whole company. The two primary features of Coca Cola’s networking management are:
- We were mutually agreed upon internal adjustments.
- We are maintaining standard communication among the entire workforce.
The organization believes in a hybrid model that combines a mechanical and an organic decision-making attitude.
-
A hybrid structure to maintain flexibility
The main features of a hybrid system are
- Maintaining a bottom-up and lateral communication order between employees.
- Keep a composite character of decentralization and standardized policies
Coca-Cola manages a workforce of 95,000 people strongly by strictly following these two principles.
So, these are the primary characters of Coca-Cola’s organizational structure. The company has acquired size and design compared to none in the history of beverages.
Summary: The article discusses the four characters of Coca-Cola’s organizational structure. In simple terms, Coca-Cola combines organic and mechanistic values to maintain the standard. But, on the other hand, it incorporates decentralization in decision-making to encourage innovation.
Author’s Bio:
Karen Hamada is a professional blogger and academic content writer at a reputable organization in the UK. She has been working as an independent essay Help and Assignment Help for decades and has had his works published in the top magazines like Forbes, The Telegraph, and the English Heritage Member’s Magazine.
