coca cola case study an analysis of organizational behavior

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Organisational Behaviour: A case study of Coca-Cola Company

Abstract: The paper contains a detail analysis of organizational behavior discussing issues facing cutting age organizations on leadership behavior, organizational effectiveness, organizational structures and human resource management. The paper further analyzed the structure and culture of Coca-Cola Company with emphasis on issues relating to ricks and uncertainties in the company’s decision making. Recommendations are laid based on the study to address the company’s issues and align decision-making with the company’s structure

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Home » Management Case Studies » Case Study: Analysis of the Ethical Behavior of Coca Cola

Case Study: Analysis of the Ethical Behavior of Coca Cola

Coca-Cola is the world’s largest beverage company that operates the largest distribution system in the world. This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. The marketing strategy for Coca-Cola promotes products from four out of the five top selling soft drinks to earn sales such as Coke, Diet Coke, Fanta and Sprite. This process builds strong customer relationships , which gives the opportunity for these businesses to be identified and satisfied. With that being said, customers will be more willing to help Coca-Cola produce and grow.

Pepsi and Coca-Cola, between them, hold the dominant share of the world market. Even though Coca-Cola produces and sells big across the United States, in order for the company to expand and grow, they had to build their global soft drink market by selling to customers internationally. For example, both companies continued to target international markets focusing on traditional soft drinks, new-age drinks and expanding into the snack-food businesses. With these new changes, Pepsi has 60% of the U.S. Snack-food market while Coca-Cola contributes 85% of its sales outside of the United States.

Increasing market share is one of the most vital goals for a business such as Coca-Cola and Pepsi. Competitions between other soft drink companies, false market share reports and other business conducts can cause certain obstacles if the top selling companies allow them too. However, Coca Cola’s strategy, from the early and late 1800s, of achieving goals such as the international mergers , big market shares, snack food production and overall performance allowed them to strive then and continue to succeed today. Today, most of coke sales are spread throughout the world in the 2004 Annual Report, “Coca Cola had gallon sales distributed as follows: 28% in the United States, 26% in Mexico, Brazil, Japan and China and 46% in spread throughout the world”. This means that Coca Cola makes 70% of its profits from other countries. Coca-Cola must remain vigilant to keep their brand untarnished and their ethical issues to a minimum; their brand is their main key to success.

Coca Cola’s Reputation

Coca-Cola is admired and known for its strength of brand. It is the most well recognized logo and brand across the world. Coca-Colas strong emphasis on reputation they have created loyalty, trust among their customers, and the strongest brand recognition of all time. Coca-Cola retains a commitment and plan to attract, satisfy, and keep customers for the long run. The company has a reputation of having the most loyal customers of the industry. It is this reason that has made Coca-Cola the market leader in the beverage industry year after year. Coca-Cola continues to earn numerous awards including Responsible CEO of the year (2010), most socially responsible company (2008), Worlds most accountable companies (2007), and top 50 most admired companies (2010). Coca-Cola has sought not only to be the world’s largest beverage company but also to improve the quality of life of the communities they serve.

Coca-Cola is extremely active in all aspects of society and environmental issues. Coca-Cola has made numerous steps to prevent harm to the environment in its production of products. Some of these steps include eco friendly facilities and equipment. Coke has been a leader when it comes to environmental issues throughout the years with a major goal of being water neutral, which means every drop of water used by the company will be replenished by 2020. Coca Cola also has a commitment to helping the local aspect by collaborating with different groups and organizations to help with many local and health issues. An example of this would be Coca Cola’s collaborating with UNAIDS to help with the HIV/Aids epidemic throughout the world. Coca Cola has also had a vast impact on improving education. They have had many programs over the years, which include a scholarship program that has given out over 22 million dollars in grants.

Social Responsibility Focus

Many companies do not realize the importance of having a connection with the community and to be seen in their eyes as a very strong ethical company. Coca-Cola has taken up a few different social projects that have given them a good amount of support from the public. For example, they have done a philanthropy known as “Education On Wheels,” in which children are placed into a classroom that history is brought to life, giving them a very rich learning environment. They do different activities that really get the children thinking and force them to develop critical thinking methods. This is a huge thing for Coca-Cola and in our opinion for companies as a whole. The first thing that you must engage in a customer is their emotions , the strongest buying point that people act on. If people start recognizing that a company is doing community based activities for children, they are going to be very prone and likely to want to support and buy the products from the company.

The second thing that Coca-Cola has done is setup multiple scholarship funds available for high-school seniors as they make their way into college and the real world. Coca-Cola was very smart when they went about setting up these different funds for students. There is a huge market with kids graduating high school and those who are currently in college, appealing to these kids will grow a strong interest in their company and will build up their brand image more than ever. It states in the book that it is beneficial to the shareholders by doing this. This is so true with every company because shareholders and people who are invested in the company want to make sure that they are involved in a company that is making ethical decisions and who are giving back to the community in some way, shape or form.

As long as Coca-Cola keeps being persistent with how they give back into the community and monitor what they are doing on an ethical standpoint, they will keep their customers and stakeholders happy.

Crisis Situations

Coca-Cola has not always been a squeaky-clean company that never had problems. The stock price of the company is the same price as it was 10 years ago, and this is due to the ethical and legal issues that were associated with the company. A small problem occurred in Belgium in 1999 when a few children fell ill after drinking a product with the Coca-Cola brand on it. They had a recall on the product there in Belgium, but soon after, every item Coca-Cola made was pulled off the shelves in every store. This caused a loss of reputation, which, in turn, made people lose respect for the company and investors started selling their stocks in Coca-Cola. Neighboring countries, such as Luxembourg and the Netherlands, soon followed suit and recalled all products throughout both countries.

After Coca-Cola found the root of the problem, that being a bad batch of carbon dioxide, they made an announcement regarding the situation. Being a few days after all this happened was a little too slow for the media, and they ate up the story making Coca-Cola look worse than what was said about them. However, this was not the only occurrence. France supposedly had about one hundred people become sick due to mold in the products they consumed. Every single product was banned throughout France until the problem was resolved, but Coca-Cola had yet another slow response to the problem and their reputation was further diminished.

During this crisis, Coca-Cola started to run into different problems with their marketing in European countries with anti-trust laws. They wanted to create a merger with themselves and Orangina, a French company, but their overaggressive style turned off the other companies in the deal, which became a problem. Their strong-arm tactics proved to be too much for the foreign countries, and creating a competitive advantage seemed to cross the line of the anti-trust laws in which they were sued for the by the country of Italy. Italy won the court-case, which caused investigations of the company’s competitive practices, which is never a good thing for business.

Racial Discrimination Allegations

Coca-Cola faced a lawsuit in the spring of 1999. Fifteen hundred African American employees sued Coca-Cola for racial discrimination . Later, the number grew to 2,000 current and former employees. The company was being charged because they put African Americans at the bottom of the pay scale. An African American could have the same job as a Caucasian, but the African American would make $26,000 less each year. This is a huge difference in pay especially if it is only based on the color of a person’s skin. In the lawsuit, it states that the top management of Coca-Cola knew about the discrimination for four years and did nothing to stop it. The company denied the accusations, but the public had strong reactions to the case. To rebuild their image, Coca-Cola created a diversity council and paid $193 million to settle the racial discrimination lawsuit.

Problems with the Burger King Market Test

Just three years after the racial discrimination lawsuit, Coca-Cola found themselves in another allegation. Matthew Whitley, a mid-level Coca-Cola executive filed a whistle-blowing suit. Whitley revealed fraud in a market study that Coca-Cola did on behalf of Burger King. In 2002, Coca-Cola wanted to increase sales so they paired up with Burger King to launch a frozen Coke as a child’s snack. Before launching nationally, Burger King wanted to test the product out in the market. Burger King launched a three-week trial run in Richmond, Virginia to see if it was worth the investment. Customers received a coupon for a free frozen Coke when they purchased a Value Meal. When the test first started, sales of the frozen Coke were not looking good. Therefore, Coca-Cola decided to pay at least one individual $10,000 to take hundreds of children to Burger King to purchase Value Meals including the frozen Coke. U.S. attorney general for the North District of Georgia discovered and investigated the fraud. Coca-Cola had to pay Burger King $21 million, the whistle-blower $540,000, and a $9 million pretax write off had to be taken. Coca-Cola disputed the claim; however, it was extremely costly for the company. Not only did they lose millions of dollars, but also the case attracted a lot of negative publicity. In addition, it ruined any relationship that they had with Burger King.

Inflated Earnings Related to Channel Stuffing

Along with the other ethical dilemmas Coca-Cola was faced with, the company was accused of practicing channel stuffing. Channel stuffing is the practice of shipping extra inventory to wholesalers and retailers at an excessive rate, typically before the end of a quarter. The use of channel stuffing is deceptive and a company utilizes it to inflate their sales and earnings figures. When a company ships out their product to a distributor, it is counted as a sale. However, when a company participates in channel stuffing, they count the sale and usually the product is returned or it remains in a warehouse. The company sends their retailers more than they can sell, falsely demonstrating that there is a high demand for the product. It can also be used to hide when the demand of a product declines.

The benefit the company would receive from channel stuffing is more earnings on their financial statements and misinforming their investors. In Coca Cola’s situation, they were accused of sending extra concentrate to Japanese bottlers from 1997 to 1999 to dishonestly inflate their profits. Even though Coca-Cola settled the accusation, the Securities and Exchange Commission concluded that channel stuffing did occur. The company then pressured bottlers into purchasing extra concentrate in return for extended credit.

Coca-Cola promised the SEC to avoid engaging in channel stuffing in the future. At this time, the company created an ethics and compliance office, who verifies each financial quarter that they have not altered the terms of payment or extended special credit. Coca-Cola agreed to try to reduce the amount of concentrate held by the international bottlers. Even though they settled the predicament with the SEC, Coca-Cola still faces a lawsuit with shareholders for channel stuffing in Japan, North America, Europe, and South Africa.

Trouble with Distributors

Coca-Cola also faced serious issues with their distributors beginning in 2006. The company had deliveries of Powerade sent to Wal-Mart in a small Texas test area. When they tried to expand the delivery of Powerade directly to Wal-Mart warehouses all over the US, fifty-four of their bottlers filed lawsuits. Coca-Cola had an agreement regarding Powerade bottlers and that it was a breach of the agreement to provide warehouse delivery to Wal-Mart, even with the use of a subsidiary agent for warehouse delivery. The subsidiary agent, CCE, and Coca-Cola claim that they were trying to meet a request from Wal-Mart for warehouse delivery, just how PepsiCo distributes Gatorade. CCE proposed making payments to some other bottlers in return for taking over the distribution of Powerade. The bottlers were concerned that the proposed arrangement would violate antitrust laws. In addition, they believed that moving forward with their warehouse delivery would deteriorate the value of the bottlers’ businesses.

This dilemma had a serious impact on the reputation of the company. When one firm in a channel structure suffers, all the firms in the supply chain suffer in some way as well. Coca-Cola adopted a new enterprise resource system that made their classified information available to a group of partners. Since there is a lack of integrity between Coca-Cola and their partners, the partners assume a greater risk when forming a partnership with the company. These problems with their distributors took a toll on their partner companies, their stakeholders, and finally, their bottom lines.

Problems with Unions and Coke Trade Secrets

Amongst other international problems faced by Coca-Cola, they ran into trouble related to labor unions as well. The major cause of these problems occurred in Columbia where there were unfortunate deaths of Coca-Cola workers as well as forty-eight who went into hiding and another sixty-five who received death threats. The labor unions claimed that Coca-Cola chose to be involved with illegal dealings surrounding these deaths, death threats and disappearances. Coca-Cola denied any of the allegations and claimed that only one of the deaths was on the premises of the bottling plant that Coke worked with while the other ones were located off the premises where Coke had no involvement. Rather than take swift action Coca-Cola made itself look bad by not offering to help to any of the workers or their families. The further denial along with not providing any aid or action caused animosity with labor unions regarding the case and put another black mark on Coca-Cola’s currently sliding ethical reputation. Sure there may have been other circumstances behind the problems in Columbia but Coca-Cola did nothing to help anyone else or themselves in the situation.

Another problem Coca-Cola faced came a little closer to home. Coca-Cola had three employees get arrested in 2006 for fraudulently and unlawfully stealing and selling trade secrets from Coca-Cola. One of the people accused in the case contacted Pepsi and told them he was a high level employee with Coca-Cola. He then offered them very confidential and detailed information regarding the Coca-Cola Company. Coca-Cola then received a letter from Pepsi about the offer and contacted the FBI. The FBI found out the informant’s name was Ibrahim Dimson from Bronx, NY. He provided the FBI with fourteen pages worth of confidential information marked classified as well as top secret products from the Coca-Cola company. Ibrahim got his information from Joya Williams who was an executive administrative assistant for Coca-Cola’s global brand in Atlanta . She had access to all of the information given to the FBI by Dimson who is known in the case as “Dirk”. This is a big problem for Coca-Cola because not only are the actions of employees a direct responsibility of the company but it also makes the company look bad if there is internal problems. Any company that has people who are willing to give trade secrets to the direct competition need to evaluate the people who are in charge and make a change if the employees feel that disloyal towards a company that is very well known and successful globally. The company should have a system in place to protect it’s secrets because otherwise any person on the street can go take the syrup formula from Coke and give it to its competitors. This is another ethical situation where the right leadership and system in place could have resolved the issue before it started. Because of poor leadership now Coca-Cola’s reputation is once again tarnished ethically and 3 company employees are being charged with serious crimes.

Ethical Recovery?

Even after all of these problems presents, the customers in Europe said that they still feel like coke would behave correctly during these times of crises. Even after all of this they are still ranked third in a PricewaterhouseCoopers survey of the most respected companies in the world. Coke then donated $50 million to a foundation to support programs in minority programs, and hired an ombudsman who reports directly to the CEO in order to settle the racial discrimination lawsuit shown above. Coke is taking the initiative to fix their problems and the international community is seeing that. It seems that since they are taking these precautions to prevent further problems in the future, the European nations, in addition to the United States will be more trusting of Coke in their decisions in the future.

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Coca Cola Case Study: An Analysis Of Organizational Behavior

Task: Drawing on your own personal workplace experience , write a mini case-study (max 1200 words ) on: The key components of my effective team.

Following the case-study, two questions are to be posed which encourage the reader to analyse different aspects of the case in close detail. Students should also provide a brief 200-250 word example answer for each question in order to demonstrate the potential learning outcomes of the case. A minimum of four distinct references from academic journals are to be included in the assignment. They can be part of the case, the example answers, or spread across the two sections.

Introduction Organizational behavior in this coca cola case study refers to the study of activities or behavior of the employees inside a commercial enterprise. The reflective case study has been made depending on the issues faced the famous soft drink company Coca Cola. The aim of this coca cola case study is to figure out the strategies with which the company can utilize it human capital in order to make the organization a better place to work. At the same time, I have described the opportunities through which the company can continue its growth in the local market.

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Background Coco Cola has been serving the world for more than 130 years however, the organization is facing extreme problem in the market of the island country like Sri Lanka. The company is facing a downtrend regarding its brand value. In the year 2014 the brand value of Coca Cola a around 34 billion dollar whereas it has decreased to nearly 32billion dollar in the year 2018. It means the company has faced an acute loss of around 5.4 percent. In this coca cola case study discovered certain factors that have caused such an acute downfall of the branded organization. One of the factors is the mismanagement inside the organization. In the following coca cola case study, I have highlighted how the improper workforce management of Coca Cola has leaded the company to such an adverse situation.

Reasons of the downfall of Coca Cola Company Communication: In order to identify problem lied behind the downfall of the Coca Cola Company discussed in this coca cola case study, I found certain issues and communication is one of such issues. The entire set up of the organization is so much corporate like that the employees hardly get time as well as scope to share their opinion or thought with other. It has affected the growth of the company in two different ways. First of all the staffs has could not get chance to share their problem with their leader. As a result, they could not develop their skill in order to improve their performance. On the contrary, the company lost the opportunities of utilizing the innovative ideas of the workers that could have been fruitful for the Coca Cola Company.

Feedback sharing: The HR of the team leader did not pay proper attention on sharing the feedback with the staffs of the. As a result, the employees did not get the chance to improve their skill. Sometimes, they lacked of the proper knowledge of using the latest technology while producing the various products. This situation had a negative repercussion on the company’s growth as a lot of employee left the firm out of lack of dissatisfaction. As an irreversible effect, the company had to face an acute shortage of labour that has hindered the production rate. In my opinion the shortage of the human capital is one of the most important factors that has affect the growth of Coca Cola Company in a profound way.

Motivation: I think motivation is one of the factors that are responsible for the shortage of the staffs inside the organization. It is true that Sri Lanka is one of the densely populated area in South Asia. As per the recent report held on 8th May, in the year 2019, which is refered in this coca cola case study the entire population of the country is 21,008,582 (Chandrajith et al., 2019, pp-12, pp-37) which is approximately 0.27 percent of the entire population of the world (Wijesuriya et al., 2019). As a result of such huge population the country enjoys the facility of plenty human capital. May be that is the reason that the company treated its staff as a factor that can easily be replaced by some other employ. The management of the company did not pay attention in order to motivate the employees. For instance in this coca cola case study, they did not arrange proper compensation or increment which was quite demotivating for the staffs. As a result, the employee showed less interest in order to enhance their performance.

Absence of proper training: I found in this coca cola case study that one of the reasons of the downfall of Coca Cola Company is the lack of training the needed to be provided to the employee in order to enhance their performance. Like other country like Australia, UK and many more the company did not have proper training facility for their employees. I think, that is the reason why the staffs that were unable to perform well were easily demotivated. In addition, the management did not take any measure in order to increase the efficiency of their workers. This situation had a adverse effect on their work performance which consequently followed by the decrease in products’ quality.

Improper human resource management: Before writing this coca cola case study, I had gone through certain researches, which illustrate the error of the human resource management of Coca Cola Company. For instance, the company has collaborated with four bottling firms that created a big issue as the organization brought around ten thousand workers (Chiu, Fischer and Friedman, 2019, pp-109). It was actually double of the entire work force. As a result of such collaboration the company had to encounter with the problem of complexity of the unnecessary staffs as well as resignation of termination of employees (Chiu, Fischer and Friedman, 2019, pp-98). It created an unstable situation inside the organization that had a negative impact on the reputation of the company. In addition, the human resource managers did not show proper interest in order to attract or retain the quality employee who could play significant role in betterment of the company.

Attitude of team leader: The team leader failed to motivate their team members. Most of the time they could not encourage their subordinate staffs and thus they could take proper initiative in order to achieve the company’s target. In addition, the team leader r the supervisors did not perform the proper monitoring of the tasks of their subordinate team members. Even they showed reluctant to share proper feedback which could improve the quality of the performance of their team members. The irresponsibility of the team member or the management of the Coca Cola Company has increased the uncertainty among the subordinate staffs of the organization. In my opinion this kind of attitude of the higher authority was quite responsible for the loss of status of the world famous Coca Cola Company.

Relation between the management and the staffs: I discovered that the company management was failed to build a lateral relation between the employees as well as the team leader inside the company premises. I have discussed earlier in this report that the workers hardly got chance to talk about their problems whatever they faced at the time of performing their task. The management of Coca Cola Company hardly arranged meetings in order to discuss the problems of their staffs as well as the possible remedies to resolve those problems.

Proper working environment: The management failed to create the proper working environment that can encourage or motivate the employees to give their best performance (Jones and Comfort, 2018, pp-43). As I have earlier mentioned that Coca Cola Company provided a strict corporate environment to its employees. This situation created obstruction in building an emotional attachment between the workers as well as the management of the organization. As a result, the employees failed to understand that their improvement was closely related to the success of the company (Jones and Comfort, 2018). That was the reason in this coca cola case study why the workers of the Coca Cola Company did not take enough enthusiasm in order to provide their best performance for the organization’s upliftment.

Questions and Answers Question 1: What are the factors that are responsible for the downfall of the Coca Cola Company in Sri Lanka? The coca cola case study has been resulted in the identification of the downfall reasons for the successful execution of the works for the company. The study had narrowed the reasons for the major issue alignment including the lack of the information, absence of the training and development, and lesser motivational strategies had resulted in the downfall of the company. The integration had resulted in the major issues for the development of the facilities and implying the management of the works for enduring the continuation of the facilities. The lack of information was the major reason behind the implication of the issues of the Coca Cola for the enduring of the works. The information management had resulted in the cognitive management of the factors aligning the successful and effective completion of the development.

The issues in the team management had also ensured the cohesive and managed performance development for the work information management. The human resource management issues resulted in the major setback for the continuation of the innovative work alignment and development. The formation would also enable the effective formation of the works that can result in the major issues of the continuation and development. The issues of the works would result for making compilation issues in the formation of the effective work development. The major issues in the alignment of the human team management of Coca Cola were issues in the HR department for implying effective communication process.

Question 2: Suggest some possible remedies through which the company can overcome such situation? The major identified issues of the Coca Cola were the lack of the information, absence of the training and development, and lesser motivational strategies that had resulted in the major setback for the company. The coca cola case study resulted in highlighting the major issues in the completion of the works. However, the use of the effective strategies can result in the cohesive and effective development of the plan for easing the operations of the Coca Cola. Some of them have been explained below,

Proper Training and Development: The proper training and development referred in this coca cola organizational behavior would be marked for managing the effective formation of the works that can endure the management of the works. The training and development would also ensure the compilation of the works. The ensuring of the facilities would also make sure that the works are effective completion of the works.

Induction and Communication Program: The induction and communication program would be developed for the enduring the continuation of the works for aligning the management of the works. The communication and induction program would enable the completion of the works. The alignment would also ensure the completion of the works.

Information Sourcing from Credible Sources: The sourcing of the information from the credible sources can be used for ensuring the effective development and improvement of the information for Coca Cola. The sources in this coca cola organizational behavior would be genuine and provide authentic information for the completion of the strategy development. The information management would also ensure the successful completion of the works.

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Reference List Chandrajith, R., Weerasingha, A., Premaratne, K.M., Gamage, D., Abeygunasekera, A.M., Joachimski, M.M. & Senaratne, A., 2019. Mineralogical, compositional and isotope characterization of human kidney stones (urolithiasis) in a Sri Lankan population. Environmental geochemistry and health, pp.1-14.

Chiu, H., Fischer, D. & Friedman, H., 2019. Board Diversity in Audit and Finance Committees: A Case Study of Coca-Cola. In Diversity within Diversity Management: Types of Diversity in Organizations (pp. 95-113). Emerald Publishing Limited.

Jones, P. & Comfort, D., 2018. The Coca Cola Brand and Sustainability. Indonesian Journal of Applied Business and Economic Research, vol. 1, no. 1, pp.34-46.

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Coca-Cola Company: Organizational Behavior’ Importance Essay

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The Coca-Cola Company is one of the world’s most recognizable brands. For more than a hundred years, the company has managed to hold the dominant position in the market of non-alcoholic beverages. Also, Coca-Cola is an example of successful market diversification, as its products are currently present in over 200 countries worldwide. The current paper aims at identifying the elements responsible for the success of the company, such as leadership, motivation, and teamwork of the employees, and identifying their impact on the organizational behavior, as well as analyzing the benefits of the said strategies for the organization as well as the community.

Leadership is often recognized as one of the defining components of organizational behavior. Successful and well-organized leadership defines the acts and attitudes of the employees as members of the team rather than individuals and facilitates the commitment to the goals and values of the company. While its definitions and requirements vary depending on the leadership style and other factors, the dominant consensus is the presence of such factors as vision and mission.

The transformational leadership model suggests that a leader can conceive the vision and mission of the organization and project it at his followers, successfully transforming their view rather than forcing them to follow it as mandatory (Kumar & Meenakshi, 2009).

Such is the case with Coca-Cola’s 2020 Vision. Conceived by Scott Figura, Global Director of Productivity and Operational Excellence, the 2020 Vision comprises the creation of inspiring and friendly workplace, the production of quality beverage brands, the orientation toward market diversification by forming international partnerships, constantly improve quality standards of production, and work towards profit maximization. It is also worth noting that the 2020 Vision includes a separate part that tackles the environmental issues, stating the readiness to decrease the possible adverse effects of its activity and be a responsible Earth citizen (The Coca-Cola Company, 2012).

While the profit maximization is an obvious solution for a business entity, the environmental aspect is used to boost the commitment and belief in corporate values. The research has previously shown that employees exhibit stronger affiliation with the organization if they generally perceive its activities as benevolent and contributing to the well-being of humankind (McAlister & Ferrell, 2002). As a result, a survey conducted among the Coca-Cola employees showed that the majority feel that being affiliated with the company makes them feel empowered and make a difference, which results in increased productivity (Hill, Stephens, & Smith, 2003).

Teamwork is another important element that defines organizational behavior. The whole idea of a successful organization is to make their employees work as a single body rather than a set of individuals. At Coca-Cola, the company’s culture facilitates teamwork on all levels. The members of all departments are encouraged to voice opinions and contribute ideas. The suggestions of the process optimization are highly valued and rewarded.

Rewards are organized in such a way that the department usually benefits from the member’s contribution, which results in a constant flow of ideas and possible improvements in the production chain, marketing, and sales. Besides, the communication policies are oriented toward teamwork as well, with the scheduled meetings of a leadership team, department teams, and sessions involving employee teams. Finally, the company emphasizes the diversity of their team.

This specific detail is important for two reasons. First, the diverse workforce provides better opportunities for the successful introduction of their product to the new markets and addressing the cultural difficulties in the markets where the drink is already introduced. The multicultural team that works in unison and readily participates in solving the corporate problems will most likely provide the most appropriate solution. This is best illustrated by the ad campaign launched by the company in the U.S. in 2013.

The ad showed several people singing “America the Beautiful” in seven languages. The campaign was a tremendous success primarily because of its inclusive nature, as it targeted the overwhelming majority of the country’s population and aligned with its diversity. Second, the diversity of the team currently constitutes the recognition of the current social trends and adds to the company values and, by extension, to productivity and commitment.

Finally, motivation is boosted at several levels in the company. An appropriate motivation program is crucial for the performance of the employees. The Coca-Cola company secures it on several levels. First, it provides fair financial and career opportunities. The direct monetary awards include competitive compensation, annual merit review, equity plans for employees in specified grade levels, among other things (The Coca-Cola Company, 2011).

Additionally, the company offers a series of discounts and services present on the site of work. Besides, it provides social benefits, such as a wide range of medical services and a retirement plan. However, these benefits account only for the existing category of the ERG theory suggested by Clayton Alderfer (Kumar & Meenakshi, 2009). The needs of relatedness are satisfied with the implementation of the 2020 Vision values discussed above. Finally, the Growth needs are accounted for by providing various training programs, developmental forums, the opportunities provided by the Coca-Cola University, an online resource for improving and building new working skills.

Besides, the company offers several types of incentives that can be used for education, such as the scholarship fund and tuition reimbursement. As a result of these benefits, the surveys show a steady increase in the percentage of employee involvement incorporate activities, with the most recent number being 84% (The Coca-Cola Company, 2010). The involvement results in increased efficiency and productivity, not to mention a healthier working environment.

The Coca-Cola Company recognizes the importance of organizational behavior and works towards establishing a formidable level of employee involvement. The progress made by the company in the U.S., as well as multiple foreign markets, proves the success of the strategies chosen by its management. The identifiable transformational leadership model establishes the goals and values of the company, known as the 2020 Vision by encouraging the employees to embrace and utilize the values rather than repeat them unenthusiastically.

The inclusion of values contributing to common good strengthen the workers’ belief in the company and add the feeling of empowerment and making a difference, ultimately adding to the motivation to work. Other motivation techniques, including the financial incentives and the possibilities for career and personal growth, further contribute to the overall level of involvement of the staff.

Additionally, the management encourages participation in group activities and rewards voicing opinions and providing feedback that may turn out to be useful in improving any part of the company activities. The diversity of the team both strengthens the feeling of empowerment and contributes to the idea pool available to solve current issues and secure future shortcomings. All the techniques viewed above may and are encouraged to be used by the other companies for the benefit of both the staff and the stakeholders.

Hill, R. P., Stephens, D., & Smith, I. (2003). Corporate social responsibility: an examination of individual firm behavior. Business and Society Review, 108 (3), 339-364.

Kumar, A., & Meenakshi, N. (2009). Organizational behavior: a modern approach . Jangpura, New Dehli: Vikas Publishing House.

McAlister, D., & Ferrell, L. (2002). The role of strategic philanthropy in marketing strategy. European Journal of Marketing, 36 (5/6), 689-705.

The Coca-Cola Company. (2010). Employee engagement . Web.

The Coca-Cola Company. (2012). Mission, vision & values . Web.

The Coca-Cola Company. U.S. employee benefits . (2011). Web.

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Coca-Cola's organizational culture: Balancing innovation, creativity, and employee well-being

Coca-Cola fosters a networked approach to break traditional hierarchies, enhancing global collaboration and innovation, while prioritizing empathy in innovation and employee well-being to drive a culture of creative problem-solving and personal growth.

• Cultural transformation for global success : Coca-Cola's shift from centralized to networked approaches breaks traditional hierarchies, fostering collaboration and innovation sharing across business units. This approach not only enhances scalability and adaptability in a global market but also leverages local market knowledge within a global network, addressing hierarchical challenges for success.
• Empathy in innovation : Prioritizing stakeholders' experiences and well-being in product/service design fosters a courageous experimentation culture, driving innovative culture and personal growth. This focus on empathy ensures that innovation efforts align closely with enhancing both customer satisfaction and employee well-being.
• Creative culture and employee well-being : Valuing personal growth and satisfaction attracts and retains talent, establishing a culture where failure is seen as a stepping stone to success. This environment encourages continuous improvement and innovative problem-solving across teams, highlighting the importance of a supportive and nurturing workplace.
• 5x20 Initiative and Women's Leadership Council : Sparked by senior leadership, the 5x20 Initiative empowers women in business and communities, while the Women's Leadership Council, chaired by Muhtar Kent, amplifies female voices, shaping an inclusive corporate culture. These initiatives demonstrate Coca-Cola's commitment to diversity and inclusion, integral to fostering a creative and innovative organizational culture.
• Innovation through risk and a culture of learning : Embracing failure as part of the learning process, Coca-Cola encourages a culture where risk-taking is supported. This approach is foundational to fostering a creative and innovative environment where employees feel safe to explore new ideas and solutions.
• Employee development and recognition : Continuous improvement and goal alignment foster a culture of growth, innovation, and personal achievement. Programs like the "Go for the Gold" campaign highlight corporate value exemplars, inspiring excellence and recognizing employee contributions to innovation and creativity.
• Learning and development : Coca-Cola's approach promotes continuous improvement and adapts to market demands, integrating IT tools for employee growth. This flexible organizational structure supports employee well-being by ensuring opportunities for development and advancement.

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Managing Human Capital: A Case Study of Coca Cola's Organizational Behavior

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Shaking Things Up at Coca-Cola

• An Interview with Muhtar Kent by Adi Ignatius

Listen to an excerpt of the interview.Download this podcast Since Muhtar Kent took the helm of Coca-Cola, in July 2008, he has set a course for ambitious, long-term growth—even in a supposedly mature U.S. market—with the goal of doubling revenue by 2020. Kent has tried to rejuvenate an inward-looking, “arrogant” corporate culture and has reinvested […]

Reprint: R1110F

When Muhtar Kent took the helm at Coke, in 2008, he had two top priorities: to establish a long-term vision and to restore growth in North America. The vision called for doubling Coke’s business in 10 years—something “not for the fainthearted,” Kent says, “but clearly doable.” In this edited interview he talks about the role of social media (Coke has 33 million Facebook fans), which today get 20% of the company’s total media spend; the importance of creating sustainable communities to preserve the future of the business; and Coke’s commitment to water neutrality by 2020—which means giving back a liter of water for every one the company uses. As the CEO of a company with 140,000 employees, Kent says, “you can only influence.” He takes a low-key approach, treasures the team, and loves to visit supermarkets and observe customers.

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Organization Behavior in Coca Cola Company - Case Study Example

• Subject: Human Resources
• Type: Case Study
• Level: Undergraduate
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Valuing your talent: Coca-Cola

Case study on how the HR analytics team were able to increase data maturity and improve business performance

Data analytics journey

• Standardising and reporting: towards a basic scorecard
• Consulting to the business: HR as a centre of "people expertise"
• Moving from descriptive reporting towards correlation analysis
• Building analytics capability within HR at CCE
• Utilising predictive analytics: CCE's approach

The HR analytics journey within CocaCola Enterprises (CCE) really began in 2010. Given the complexity of the CCE operation, its global footprint and various business units, a team was needed which was able to provide a centralised HR reporting and analytics service to the business. This led to the formation of a HR analytics team serving 8 countries. As a new team they had the opportunity to work closely with the HR function to understand their needs and build a team not only capable of delivering those requirements but also challenge the status quo.

"When I first joined Coca-Cola Enterprises in 2010, it was very early on in their transformation programme and reporting was transitioned from North America to Europe.

At that point we did not have a huge suite of reports and there was limited structure in place. We had a number of scheduled reports to run each month, but not really an offering of scorecards or anything more advanced." 

The first step was to establish strong foundations for the new data analytics programme. It was imperative to get the basics right, enhance credibility, and automate as many of the basic descriptive reports as possible. The sheer number of requests the team received was preventing them from adding value and providing more sophisticated reports and scorecards.

CCE initiated a project to reduce the volume of scheduled reports sent to customers, which enabled them to decrease the hours per month taken to run the reports by 70%. This was a game changer in CCE’s journey. Many of the remaining, basic, low value reports were then automated which allowed the team to move onwards in their journey and look more at the effectiveness of the HR function by developing key measures. The analytics team was soon able to focus on more "value-adding" analytics, instead of being overwhelmed with numerous transactional requests which consumed resources.

"In the early stages requests were very basic. For example, how many people am I supporting? How many people have started or left? How many promotions have there been in my part of the organisation? The majority of requests were therefore very descriptive in their nature. There was an obvious need to automate as much as we could, because if we could not free ourselves of that kind of transactional reporting, there was no way we were going to add any value with analytics.’’

Standardising and reporting: towards a basic scorecard

The team soon found that the more they provided reports, the more internal recognition they received. This ultimately created a thirst within HR for more data and metrics for measuring the performance of the organisation from a HR perspective. The HR analytics function knew this was an important next step but it wasn’t where they wanted the journey to end. They looked for technology that would allow them to automate as many of these metrics as possible whilst having the capability to combine multiple HR systems and data sources.

A breakthrough, and the next key milestone in the journey for CCE, was when they invested in an "out of the box" system which provided them with standard metrics and measures, and enabled quick and simple descriptive analytics.

Instead of building a new set of standards from scratch, CCE piloted preexisting measures within the application and applied these to their data. The result was that the capability to deliver more sophisticated descriptive analytics was realised quicker and began delivering results sooner than CCE business customers had expected. 

‘‘We were able to segment tasks based on the skill set of the team. This created a natural talent development pipeline and ensured the right skill set was dedicated to the appropriate task. This freed up time for some of the team to focus on workforce analytics.

We implemented a solution that combines data from various sources, whether it is our HR system, the case management system for the service centre, or our onboarding / recruitment tools. We brought all that data in to one central area and developed a lot of ratios and measures. That really took it to the next level.’’ 

As with any major transformation, the evolution from transactional to more advanced reporting took time, resource and commitment from the business, and there were many challenges for the team to overcome.

"There were a lot of lessons. With the workforce analytics implementation we probably underestimated the resource and the time needed. Sometimes less is more and we provided too many metrics at first. The key was to really collaborate with our HR leaders and understand what the key metrics were."

With the standards in place CCE then turned to establishing a basic scorecard approach to illustrate the data. Scorecards are a common instrument used by many organisations to provide an overview of the performance of a function. Typically they consist of clear targets illustrated in a dashboard fashion and are utilised by senior management to guide their leadership of the organisation. The leadership team's familiarity with the scorecard methodology meant that the analytics team could simply fit in to a standard reporting process. But for CCE to create its HR dashboard it was apparent that a clear purpose and objective for the analytics was needed, and that the development of future scorecards should be as automated as possible.

Consulting to the business: HR as a centre of "people expertise"

At CCE it’s clear that HR analytics, insights, and combining HR and business data is an illustration of the value that HR can add to the business. CCE has developed a partnership approach which demonstrates the power that high quality analytics can deliver, and its value as a springboard to more effective HR practices in the organisation. By acting in a consultative capacity HR is able to better understand what makes CCE effective at delivering against its objectives, HR ensures both parties within the partnership use the data which is extracted, and find value in the insights which HR are developing.

"To be a consultant in this area, you have to understand the business you’re working in. If you understand the business problem then you can help with your understanding of HR, together with your understanding of all the data sets you have available.

You can really help by extracting the right questions. If you have the right question, then the analysis you are going to complete will be meaningful and insightful."

Moving from descriptive reporting towards correlation analysis

There are numerous examples where the HR reporting and analytics team have partnered with the HR function and provided insights that have helped to develop more impactful HR processes and deliver greater outcomes for the business. As with many organisations it is the engagement data with which the majority of HR insight is created. Developing further insight beyond standard survey outputs has meant that CCE has begun to increase the level of insights developed through the method, and by using longitudinal data they have started to track sentiment in the organisation. Tracking sentiment alongside other measures provides leaders with a good indicator for sensechecking the power of HR initiatives and general business processes. The question is whether the relationship between engagement and business results is causal or correlative. For CCE this point is important when explaining www.valuingyourtalent.org 4 the implications HR data insights to the rest of the business.

"There have definitely been a number of examples where we are starting to share insights that are being acted upon. One example is our engagement survey that is run every couple of years. Within the survey there are three questions related to communication.

The business was keen to understand if there was a correlation between how an employee scores a manager, in terms of communication, and key performance indicators across our sites.

We demonstrated that across all of our sites there was a positive correlation between how leaders communicate and business outcomes. That is great but it is not implying causation. There is something there to explore further, but we cannot go and say, good communication causes better business performance."

Building analytics capability within HR at CCE

For CCE's analytics team one of the most important next steps is to share the experience and knowledge gained from developing the analytics function with their colleagues, and build capability across HR.

"We are also reviewing the learning and development curriculum for HR to see what skills and competencies we need to build. One of the competencies that we have introduced is HR professionals being data analysers.

For me, it is not only understanding a spreadsheet or how to do a pivot table, it is more understanding what a ratio is, or understanding what their business problems are, or how data can really help them in their quest to find an intervention that is going to add value and shape business outcomes."

As with any long journey the analytics team at CCE have faced numerous barriers. The challenges they list are common to most HR professionals attempting to establish a significant new process, but it is the challenge of establishing new capability and embedding fit-for-purpose technologies which has created the greatest challenge at CCE.

"In terms of barriers, technology is one. For example having the right data warehouse in place that allows you to extract the data very quickly. From a HR perspective we are well placed, however extracting data from the rest of the business, is a challenge. At CCE HR is trying to branch out and get the data from other parts of the business, which is probably quite unusual. People probably do not expect HR to be that kind of driving force.’"

CCE recognises a recruitment challenge centred on sourcing the capabilities to develop high-impact HR analytics, which includes hiring individuals with the ability to analyse data, develop insights and the communication know-how to share across the business. One challenge for HR is to sell the profession as suitable for analytical high-potentials to build their broader business acumen: to move away from the traditional view of transactional HR with little or no analytical capability, to a function based around high-quality data and business insights. For CCE this represents a significant opportunity – high-calibre analysts must see HR as a profession in which they're able to build a lasting career.

"At conferences I have listened to major firms who have PhD students in their business intelligence teams, who appear to be very good at not only analytics but also presenting information. They are few and between and I believe that people who have that skill set would not naturally go into HR. If I reference the recent big data conference I went to, and the projects that some of these companies were doing outside of HR with customer data, Twitter data, really what I would call ‘big data,’ it may seem a lot more appetising and appealing than HR analytics. If I was a PhD student, I am not sure I would consider HR as a place to go to develop my career and also, whether I would see any longevity in it. As a function we need to change that."

Utilising predictive analytics: CCE's approach

For organisations like CCE, natural progression in analytics is towards mature data processes that utilise the predictive value of HR and business data. For most organisations this can too often remain an objective that exists in the far future, and one which without significant investment may never be realised. Alongside the resource challenges in building capability there also exists the need to understand exactly how data may provide value, and the importance of objective and critical assessment as to how data can be exploited. Without appreciation for methodological challenges, data complexity and nuances in analysis, it may be that organisations use data without fully understanding the exact story the data is telling.

"Predictive analytics is difficult. We are very much in the early stages as we are only starting to explore what predictive analytics might enable us to do, and what insights it could enable us to have. If we can develop some success stories, it will grow. If we go down this route and start to look at some predictive analytics and actually, there is not the appetite in the business, or they do not believe it is the right thing to do, it might not take off.

If you think about the 2020 workplace, the issues that we have around leadership development, multi-generational workforces, people not staying with companies for as long as they have done in the past, there are a lot of challenges out there for HR. These are all areas where the use of HR analytics can provide the business with valuable insights.’"

For CCE it appears that analytics and HR insight are gaining significant traction within the organisation. Leaders are engaging at all levels and the HR function is increasingly sharing insights across business boundaries. This hasn't been without its challenges: CCE face HR's perennial issues of technology and the perceived lack of analytics capability. However their approach of creating quality data sets and automated reporting processes has provided them with the foundations and opportunity to begin to develop real centres of expertise capable of providing high quality insight to the organisation. It is clear CCE remains focused on continuing its HR analytical journey.

"It's a great opportunity for HR, and we should not pass up on it, because, if executed well, HR analytics combined with business data allows us to highlight the impact of people on business outcomes. 

It’s about small steps, pilots, where you start to demonstrate the power of combining HR and business data. If you understand the business problems and can come to the table with insights that had previously not been seen you enhance HR’s credibility and demonstrate the value we can add as a function.

What amazes me as a HR professional, with a lean six sigma background, is that companies are often great at measuring and controlling business processes but very rarely consider the importance of people in that process. People are without doubt one of the most important variables in the equation."

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