Coca Cola or Coke, which it is commonly referred as has consistently been a market leader in the production of soft drinks all over the world. After having first started production in the 19th Century, 130 years ago as a patent medicine has over the years created a world-dominance in the field of soft drinks. However with the change of the decade around the corner, a number of factors have gone through or are stated to go through a lot of change. With this change happening around it, a corporation even as big and legendary as the Coca Cola Company will have to make some changes.
Here are some of the important factors which will matter the most with the change of the decade:
Any big company needs to have a structure in place for its everyday functioning. And when it comes to a company as big and widespread as the Coca Cola Company, the structure needs to be such that not only does it foster company growth but in today’s times foster speed, agility and inspirational leadership. The company has 5 continental divisions:
- Eurasia & Africa Group
- Europe Group
- Latin America Group
- North America Group
- Pacific Group
Each of its divisions, function as an extended arm of the parent company and the operations are similar all across the globe. The head office maintains a tight chain of command over the divisions.
- Challenges: In 2020, the baby boomers will be stepping out of their roles in organisations. This gap will be fulfilled by the millennial’s, but due to their small number, it would be difficult for the organisation to find the needed talent.
- Solution: The company needs to let leaders emerge and take the responsibility and the control for their divisions as each division handles a different terrain of the globe with different economic challenges and the company needs to be robust enough to handle those issues locally.
- Workforce Diversity
Coca cola is a global organisation. A global organisation also has a global workforce which is situated in the different parts of the world. The Coca Cola Company which produces the patented concentrate in its factories in Atlanta and supplies it further to the bottlers around the world. Some of them, the company owns a share in but most of them are individual entities. Coca Cola has over the years tried to maintain workforce diversity when it comes to its production as well as management divisions. However a lot more needs to be done to effectively increase the workforce diversity.
- Challenges: These are always challenges in diversifying the workforce which a company faces off and on. Finding the right talent takes preference over workforce diversification.
- Solution: Coca Cola needs to attract, develop and motivate a workforce that reflects the diversity of the communities in which they operate. More and more women need to be encouraged to work in structures that were traditionally seen as a man’s department.
- Market/Consumer Diversity
The Coca Cola Company is currently a leader in market share over all its rivals. Till the writing of this report, Coca Cola is available in all the countries in the world except two, Cuba and North Korea.
With such a wide market share and consumer engagement, the company definitely has a far more global reach than any other product in the world. Over the years, the company has taken into account the needs of all of its markets. Catering to some of the requirements of the market or by acquiring the local competition it has kept up with the needs and the numbers prove it’s leadership.
- Challenges: The world is constantly changing and so do the needs and tastes of the customer. Today a regular customer is more open to try new things. They are also increasingly becoming health conscious and thus soda sales have constantly been plummeting from the last century. 2020 will bring with it even bigger challenges.
- Solution: The Company needs to keep itself ahead with the times and be able to predict the market change. They need to put a greater focus and energy on their other offerings such as bottled water and natural packaged juices.
- Communications Technology: Today the world has become one big interconnected huddle where everyone is connected to everyone. With the advent of the social media, everyone has an opinion and it’s heard. No matter how small and how right or wrong. Technology is also forever evolving. With the evolving technology comes automation which has most of the workforce scared. Companies becoming lean and focussing on efficiently manage their processes with the help of technology. Coca Cola Company has also over the years been one with the times being increasing aware of the brand they have created. Today the brand Coca cola is ranked number 3 in the world.
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