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A Study of Change Management in Coca Cola Essay

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    Harmonizing to a Grecian philosopher Heraclitus “ there is nil lasting than alteration ” . He believed that alteration is the nucleus of existence. This quotation mark describes the importance of pull offing alteration in homo every bit good as organisational life.

    A structured attack to reassign organisation, its people and procedures from current province to a coveted hereafter province is called alteration direction. This procedure gives employees the ability to accept alterations in the bing environment of the concern. Change can be of different type for illustration, alteration in engineering, operations or schemes etc. company needs to implement single schemes to get by with each type of alteration.

    Organizations need to alter and follow dynamic survival schemes to remain alive in unsure political, societal and economic environment ( Hiatt and Creasy, 2003 ) . All environmental factors present in the nature experience alteration on uninterrupted footing. Human nature resists change, so pull offing that opposition requires good planned alteration direction schemes.

    This study is aimed at depicting the importance of alteration direction for organisation its motivations and aims, alteration direction processes, how company can affect all the stakeholders for successful nidation of alteration direction and the schemes that an organisation can follow to implement the successful alteration.

    Reasons for following alteration

    Organizations need alteration for the undermentioned grounds:

    To react to the quickly altering environment

    To better the overall public presentation of the company

    To quickly react to the clients ‘ demands

    To better the effectivity and efficiency

    To increase the employee public presentation

    To make the best patterns inside the organisation and scene criterions for the industry

    To better profitableness and return on overall investing

    Change direction is needed for organisational endurance. So the company should follow to alter direction techniques in order to keep its worth in the industry.

    Importance of alteration direction

    In a survey 327 undertaking directors had responded to the inquiry that “ if you had a opportunity to make it once more, what would you make otherwise? ” Most of them responded that we will implement an effectual alteration direction plan planned manner before get downing the undertaking. This survey highlights the importance of alteration direction in an organisational position. Change direction moderates the hazards that can do failure ( Jeff and Creasey, 2003 ) .

    The alteration direction procedure

    Change direction is being studied by the philosophers, research workers and concern experts for many old ages. A figure of alteration direction theories, attacks and doctrines are developed by psychologists and direction professionals to implement successful alteration in the organisation ( Paton and MacCalman, 2008 ) . There are three stages of alteration direction i.e. fixing for alteration, pull offing alteration and reenforcing alteration. Preparation for alteration stage includes appraisal of alteration capablenesss and capacity and developing a scheme that tantrum to those capablenesss. Second stage i.e. “ pull offing alteration ” stage includes procedures like planning and execution of schemes made in the first stage. Last stage which is the support of alteration includes the procedures like aggregation and analyzing of feedback informations, happening out spreads and get bying with determined grade of opposition from inside and outside the organisation and taking disciplinary actions to successfully reason the alteration direction procedure ( alteration direction acquisition centre, 1996-2011 ) .

    Change direction — — -A instance of Coca Cola Corporation

    Coca Cola is a retail merchant, seller and maker of non-alcoholic drinks and is known worldwide for it coca cola drink. In add-on to its coca Cola trade name, Coca Cola Company offers 500 drinks and non drinks trade names in approximately two 100 states. The company was founded by Asa Candler in twelvemonth 1892. It ‘s headquarter is located in Atlanta, Georgia of United States of America. The company had entire net income of about 11.8 billion US dollars in twelvemonth 2010 with entire figure of employees 139,600 worldwide. Company ‘s trade name i.e. Coca Cola stands figure one in the list of most good known trade names of the universe ( Coca Cola company, 2006-2011 ) .

    Coca Cola is a type of company that requires doing alterations in its merchandises and concern schemes harmonizing to the consumer outlooks and external environment. Here in this survey we would cite different illustrations from coca Cola corporation ‘s history and will analyze that what were the triping events for choosing the alteration and what strategies the company developed and implemented in order to successfully traveling through the transitioning procedure.

    Coca Cola Corporation is among one of the oldest corporations of the universe. It has gone through many internal and external alterations since it has been in being. The company has used techniques of alteration direction in order to last from the effects of those events.

    The company has faced a batch of external alterations, for illustration in universe war II, the company was able to pull off its bing place at that clip and besides entered in many new markets and discovered new niches. The company established 64 workss across the universe to provide drinks to the military personnels ( Coca Cola company, 2006-2011 ) . The company besides provided free drinks to soldiers which were the portion of its scheme to go a loyal symbol for the people of the state. Besides it boosted the gross revenues, so the company achieved two aims by carefully be aftering to react to that external environmental alteration. The workss developed by the company in war epoch helped its enlargement after the war.

    Barton et Al ( 2002 ) reported that Coca Cola Corporation adopted acquisition scheme in clip of Asiatic fiscal crisis. The company acquired bottling, java and tea store concerns in Korea and Malaysia. Beverage is a type of industry where gustatory sensations and penchants of the consumers change on uninterrupted footing. Coca Cola Company besides responded to such consumer altering behaviours in effectual manner by developing new merchandises like Diet Coke and Coca Cola Zero. The company besides committed a selling liquidizer when a rival company launched a black drink with comparatively sweet and smooth gustatory sensation. The merchandise was named as new Coke. But the gross revenues bit by bit went down and company faced terrible consumer critics and protests. The company managed this state of affairs really commendably by reconstructing the old expression and calling the bottle as diet coke ( Kotler and Armstrong, 2010 ) . As people are going more wellness witting and willing to put on wellness based merchandises, coca Cola is developing juices and assorted energy drinks every bit good. This shows the company ‘s scheme to reacting changing consumer gustatory sensations and outlooks and altering itself harmonizing to it.

    The Cocos nucifera Cola company used theory of organisation alteration presented by Kotler ( 1996 ) which elaborated the process to pull off alteration on the people dimension of the organisation. The good known CEO of coca Cola Corporation Mr. Gouizetta who remained CEO of the company for 17 old ages determined and solved the job in fabrication of drinks. He was the cardinal adult male in revising coca Cola ‘s operations and orienting schemes that helped the company standing high among its rivals. He achieved aims of the house by be aftering and taking the undertakings by himself and provided an inspirational leading to the employees. He was the 1 who appointed gifted human resource like Ivester who took great portion in covering the failings and working the chances for the company ( The Coca-Cola company instance. n.d. ) .

    In add-on to doing operational and strategic alterations, the company besides changed its advertisement scheme by aiming assorted groups of consumers like American consumers. African consumers, Middle and far eastern consumers and European consumers. The company altered the packaging of its coca Cola trade name and developed more merchandise lines and broadened them globally ( The Coca-Cola company instance. n.d. ) .

    The present status of coca Cola company worldwide is really good. The company is selling its drinks throughout the universe successfully. But in some states, coca Cola shops are non as harmonizing to the company ‘s chief selling, stock list and efficiency subject. The company is be aftering to aline its public presentation criterions harmonizing to its ain corporate civilization and schemes with the aid of a comprehensive alteration direction program. These alterations will be implemented within the concern operations and direction of the company.


    Employee battle

    The recent alteration direction at coca Cola is directed towards the intrinsic values and motives of the employees and can be referred to as ’employee battle ‘ . The alteration direction procedure, together with internal stigmatization plans is expected to convey about ideal behaviours in employees, which would aline the operations of coca Cola worldwide, and convey approximately efficiency throughout coca Cola across all its concern sections.

    Coca Cola hopes to convey about a exhaustively incorporate system of communications, and concentrate on making trade name relationships with their employees. This would heighten the operations of Coca Cola, as an incorporate attack would intend all employees believe in prosecuting to the full in the values, and this would go an built-in portion of the employees at a personal degree.

    Coca-cola is actively seeking to integrate the alteration into its company if the recent conference on internal stigmatization and and employee engagement held in February,2011 by Robin Gee, Head of Employee Engagement for Coca-Cola Refreshments ( CCR ) is any indicant. Robin Gee is responsible for “ edifice capableness in battle, keeping engagement impulse and guaranting that battle is integrated into CCR ‘s people patterns ” ( Samdahl,2011 ) .

    For this intent, employee battle studies are conducted twice every twelvemonth for all the coca Cola associates, which serve to foreground the countries where action is required, and farther actions and executions can henceforth be executed.

    Coca-cola believes that their concern consequences flexible joint on the dedication of their employees to operational excellence. The company genuinely recognizes the importance of the people to the concern, and knows that to go on to convey approximately enormous consequences it is conveying in, employees throughout the universe should believe in the values per se, and hence the employee battle is being focused on all the states the company serves to aline thoroughly integrate and aline the company so that operational efficiency can be achieved.

    Importance of alteration to coca Cola

    Employee battle is really important to all sections of operations at coca-cola and has translated into public presentation in countries where employee battle is higher.

    For coca-cola, an engaged work force agencies:

    A more committed work force

    Employee public presentation aligned with organisational aims

    Employees have a clear thought of what is expected of them and what are the deliverables

    Customer experience focal point an built-in portion of employees ‘ values, who strives to supply a better experience to the clients. Customer focal point was identified as a cardinal renter of the multi-year battle scheme to be implemented in 2011 ( Gee,2011 )

    When employees are aligned with company ends, they themselves adopt a proactive attack towards issues such as waste riddance

    Employees awareness gives them a voice which helps to act upon statute laws at local degrees

    An incorporate system of communicating is really helpful in the volatile and dynamic markets of today, where conditions change really frequently and the company has to be antiphonal at all times

    Therefore, for all the concern section of coca-cola wherever they are located across the universe, the alteration towards employee battle is justified if they have to harvest the fruits gained by an effectual system of integrating.

    Guaranting the Involvement of Required Stakeholders

    Coca Cola Company can utilize two alteration direction tools to do certain that all people who are required to be the portion of alteration direction procedure. These tools are Force Field analysis and AKADAR theoretical account. Force field analysis is a technique developed by Kurt Lewin to size up the forces that are doing an resistance to alter procedure ( Bass, 2009 ) . By making Force Field Analysis, Coca Cola Company will be able to inductpeople who are in demand of appropriate preparation. Anothr utile tool is AKADAR theoretical account which stands for Awareness, Desire, Knowledge, Ability and Reinforcement. Through AKDAR theoretical account, house creates awareness about the demand of alteration, generate desire in the people to assist in transitioning procedure, give cognition to the people that how they can assist the alteration procedure, develop an ability in the people to travel through the alteration and supply them with uninterrupted support to defy the alteration ( CMLR, 2011 ) .

    Guaranting that alteration is successful

    Some considerations that will ease the alteration direction procedure include:

    productive and eventful duologues and negotiations with employee representatives

    Online and paper studies from all the stakeholders involved in the ‘change ‘ throughout the universe, and with associates to derive an penetration on their perceptual experiences

    Effective communicating at this phase for informing the stakeholders the grounds for alteration and the benefits it would convey

    Get the better ofing the ‘inertia ‘ by taking all stakeholders in assurance. The studies can function as a pre necessity to derive an penetration on the stakeholder position

    Detailss of the action planning procedure communicated to all those who would originate the alteration

    Recommendations for Coca Cola Company

    In the volatile kineticss with which companies operate today, alteration in inevitable. Therefore, the focal point should non be on avoiding alteration, instead conveying about a smooth passage towards the new alteration by communicating about the alteration, and guaranting all parties of the alteration that it is for the best of all those involved. To successfully implement organisational alteration of any nature, a specific respects to organisational construction, design, civilization, direction and leading is required to see whether the alteration would do a best tantrum with the organisational ends and aims.

    First of all the company should determine the nucleus jobs exist in the company for the alteration direction. The company may develop a alteration direction plan for reacting to financially unsure environment of the universe. It can besides develop alteration direction plans for better operations and logistics. The company can present new processs and technological systems to transport out operations. Plans can be introduced in signifiers altering company ‘s mission and corporate civilization sweetenings. For all that, the most indispensable thing is to develop upper direction to supply them with specific accomplishments necessary to efficaciously traveling through the transitioning procedure. Following is the brief look of programs that the company can follow.

    Systems believing

    Systems thought can be used to steer the successful alteration in the organisation. The theoretical account is based on an integrative and synergistic unfastened system which consists of the variables, properties, internal dealingss and environment. The system is based on features like integrity, mutuality, concatenation of influence, demand for balance and adaptability etc in an unfastened system where communicating is seen as an incorporate procedure that facilitates alteration within the organisation.

    Several system features are: integrity and mutuality ( the whole is more than the amount of all parts ) , correlativities, comprehending causes, concatenation of influence, hierarchy, suprasystems and subsystems, self-regulation and control, goal-oriented, interchange with the environment, inputs/outputs, the demand for balance/homeostasis, alteration and adaptability ( morphogenesis ) and equifinality: there are assorted ways to accomplish ends. Different types of webs are: line, commune, hierarchy and dictator webs. Communication in this position can be seen as an incorporate procedure – non as an stray event.

    Establishing new construction

    It is a good known fact that Coca Cola Corporation was a entrepreneurial venture started by one individual who bought the expression from another house and laid foundations of that beverages fabricating house. Current construction of the coca Cola company is simple with minimum labour and direction division. New system that can be adopted by the company may be the “ machine bureaucratism ” which Henry Mintzberg ( 1992 ) defined as an organisation with clearly defined hierarchy, good defined country of operations, standard operating processs, proper regulations and ordinances, good division of labour, formal relationships among the member of organisation, centralized determination devising, proficient competency and standardisation of work.

    Reducing employee rebelliousness

    Resistance of alteration is a common human behaviour. Particularly, in the workplace people resist the alteration in organisational civilization, construction and policies. But in order to successfully and efficaciously implement the alteration direction plan, it is of import for Coca Cola Company that it should develop schemes to cut down employee rebelliousness to change.Kotter and Schlesinger ( 1979 ) explained six schemes which can be utile for coca Cola Company in employee rebelliousness direction. First scheme is to affect the employee in alteration procedure and do them take part every bit far as they can. Second scheme is to pass on the alteration direction plans to the people efficaciously as educate them about the benefits the plans would convey. This will do them comfy in following the alteration. Third scheme is negotiation and understanding. The company should make a consensus on of import alteration issues and with the understanding of all of import stakeholders ; it should establish the alteration direction plan. The opposition degree will be zero on alteration plans that are being launched with the common understanding of all relevant stakeholders. Fourth scheme is that to back up the employees who are due to some disablement or emotional or psychological issue or some other menace unable to accommodate to the alteration. If the company develops and proper channel to experience such people taken attention of, they would set bit by bit to the alteration direction plan. In instance of failure of above mentioned four schemes, company can pull strings the employees by naming brotherhood leader other relevant 1s as 5th scheme. Sixth scheme is to coerce the employees with articulate or non-articulate methods but this is non a really good attack.


    To reason, it may be said that communicating can be a cardinal component to successful alteration direction. Communicate the alterations to the employees, state them why the alteration was inevitable and how they will profit from the alteration. The direction should itself follow a positive attitude towards the alteration so that employees can follow their lead and welcome the alteration. Coca-cola as a company has a heritage of encompassing alteration instead than defy it and it should interpret into their future enterprises towards change direction to guarantee that the organisation is best poised to market and environmental conditions.

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