Business Environment & System
Understanding business environment and systems is crucial in formulating and implementation of appropriate business policies critical to organizational success. Ideally, this report provides a critical description of the business environment and system of Coca Cola Company.
Coca Cola Company is an American international corporate that deals with the manufacturing, retailing and marketing of non-alcoholic syrups and concentrates. Having been founded in 1886 by Griggs Candler, the company’s headquarters are currently located in Atlanta, Georgia (Petretti 632). Apart from the company’s namesake beverage (Coca-Cola), the company presently provides over 500 brands in more than 200 territories worldwide. The company has its own anchor bottler located in North America. It is estimated that the company’s servings exceeds 1.7 billion per day. The total number of employees as per December 2011 amounted to 146,200. In terms of finance, it is precise that the company is listed on the New York Stock Exchange. Coca Cola’s 2012 financial report reveal a total revenue and net income of US$ 48.01billion and US$ 9.01 billion respectively.
Organizational Chart
Coca Cola’s organizational chart
Organizational structure
An organizational structure refers to the hierarchical arrangement of lines of communication, authority, duties and rights of an organization. A company’s organizational structure largely determines the manner, in which organizational power, responsibilities and roles are assigned, coordinated and controlled. Moreover, it also determines the flow of information between different levels of management. In general, a company’s organizational structure may be flat or tall. However, based on company analysis, it is clear that Coca Cola exhibits a tall organizational structure. The company’s management levels are organized in a hierarchical form. At each organization level are managers, implying that each manager has limited span of control (Madura 271). With this organizational structure, directions flow down the chain of command.
The Company Quality System
In an interview with one of the Coca Cola’s quality assurance personnel, it is precise the company consists of The Coca Cola Quality System (TCCQS), which facilitates the effectiveness of its quality management system. The system has the utmost processes and standards to ensure steady package and product quality. As from January 2010, the interviewee reveals that the company’s quality system has largely been based on the Coca-Cola Operating Requirements (KORE). KORE guarantees the uppermost standards in product quality and safety, occupational health and safety and environmental standards across the entire organizational system by outlining precise specifications, policies and programs for guiding company operations. Moreover, KORE integrates Coca Cola’s dealing and quality objectives and align them with steady metrics to scrutinize performance.
Regulatory bodies
The process and operations of Coca Cola are directly governed by a number of regulatory bodies, given that the company has its operations in many countries. One of the key regulatory bodies of Coca Cola Company is the government all countries where the company operate, which takes the form of quotas, tariffs and taxes. For instance, the company is operations in European Division are directly regulated by the European Union while in U.S, the company is regulated by the U.S federal government. Moreover, based on the concept of listing, it can be argued that the manner in which company operates in the financial market is under the direct supervision of New York Securities and Exchange Commission.
Enforcement of Ethical Practices
Ethical practices are part of Coca Cola’s day-to-day business operations. Coca Cola’s Code of ethics is enforced by the company’s Ethics & Compliance Commission, which oversees all ethics and compliance program of the company and determines code infringement and discipline. The Ethics & Compliance Commission has an office responsible for educating, monitoring and assessing issues related to compliance and code of business conduct. In addition, the commission provides online training to all business associates on topics connected to ethics and compliance. Similarly, the commission has provided a platform, through EthicsLine, that enables company associates to ask questions about ethics and compliance.
Coca Cola’s manufacturing cycle
The company’s manufacturing process various significantly among its brands. However, despite the existence of distinct process for various company brands, there exists a general manufacturing process for the company (see diagram).
Coca Cola manufacturing process
Source: http://www.coca-cola.com
Works Cited
Daft, Richard L, Jonathan Murphy, and Hugh Willmott. Organization Theory and Design. Andover: South-Western Cengage Learning, 2010. Print.
Madura, Jeff. Introduction to Business. Mason, OH: Thompson/South-Western, 2007. Print. Petretti, Allan. Petretti's Coca-Cola Collectibles Price Guide. Iola, WI: Krause Publications, 2008. Internet resource.
