Introduction
With globalization, organizational management is influenced by both internal and external demands, innovation and new economic paradigms. The new setting requires that organizations ought to grow, acquire new knowledge and reframe their central operations to meet the new demands (Qiu, Donaldson, & Luo, 2012 p 95). Therefore, the new paradigm is based on system approach, change in technology and the way knowledge is managed at the respective firms. For the purpose of this study, the organization that will be analyzed is Coca-Cola Company, which is a multinational organization. The organization operates in different countries across the globe and is characterized by cultural diversity. The firm mainly deals with the sale of beverage drinks, with Coca-Cola standing as one of the most appreciated drink globally. It is imperative to understand that technology and knowledge are some of the most important aspects that are subject to change over the years. Therefore, the new organizational paradigm is based on innovativeness and introduction of effective knowledge management practices (Muratovski, 2015 p 118). This paper, therefore, seeks to outline organizational paradigm, indicate some of the important aspects that are subject to change and those that are not easy to change with a focus on Coca-Cola Company.
Main Body
It is evident that traditional management approaches and structures are being replaced due to their inefficiency in accommodating to the current complex setting that is characterized by change, extreme competition among other significant changes. Therefore, the management paradigms in the current environment are being updated to meet the new demands. The management paradigm suggested by Taylor, Fayol and Drucker were simple and were more suited to operate in a setting with slow competition, less aggressive and slow growth (Nonaka et al., 2014 p 139). However, with globalization, it is worth understanding that there is the need to develop a management paradigm that accommodates the increased pressure in the international setting.
Development of new technologies has resulted in the creation of new information, a feature that has made the current economy rely more on knowledge. The virtual environment has contributed to the adoption of new techniques, organizational structures, among other significant practices to meet the new demands (Taródy, 2016 p 52). Some of the aspects that characterize the new paradigm include the use of e-mail, the internet, development of virtual office and teams among others. Therefore, globalization requires embracement of virtual management, a feature that adopts a new paradigm while at the same time eliminating the traditional management, which is ineffective.
For instance, Coca-Cola has created a new organizational structure that can maneuver well in the current competitive setting as compared to the traditional management paradigm (Convenience Store News, 2016 Para 1). The new structures, therefore, caters for both internal and external needs of the company such as the different bottling companies that the company conducts business with. Traditionally, it was assumed that Coca-Cola bottles and distributes its beverages, a notion that is not true. However, the company has efficient organizational structure that has aligned with its marketing objectives and has therefore formed a partnership with other distributing companies in the market.
Therefore, to be more efficient, the company works with bottling partners that are fully licensed for manufacturing, distributing, and sale of the branded products to the international market. Therefore, the new organizational paradigm gives the company an opportunity to develop a competitive advantage in the global market, a feature that is beneficial for the business. The above behavior can be adequately explained by the introduction of virtual management, which is a new concept in the market (Segercrantz, Gripenberg & Sveiby, 2012). Moreover, the new organizational structure for Coca-Cola Company is supported by the company's culture that promotes teamwork and empowerment of the company employees (Business Case Studies, 2016 Para 2). However, despite the new change in company structure, innovativeness, and cultural beliefs, some of the aspects that do not easily change include the company's vision or the brand name. For instance, Coca-Colas has maintained its brand name since its establishment and still maintains its vision of becoming a global distributor of beverages.
It is worth appreciating that industrial revolution contributed to the rise of the management tools that are used to date such as porter's five frameworks. However, business internalization has come with new challenges hence call for varied needs in the market to manage the hyper-competition that is a norm in the current business world (Lee, MacDermid & Buck, 2000 p 1216). Therefore, the new form of management otherwise referred to as the virtual management has contributed to a paradigm shift in most organizations such as Coca-cola. With more innovation, consumer's expectations are subject to change, and organizations have to meet the changing expectations to remain relevant in the market (Li & Lin, 2011). Besides, the above rationale is made possible by the rapid expansion of information technology, a feature that makes the organization management to remain informed.
Some of the important aspects that explain the new changes include computerization of most of the business operations hence contributing to lower unit cost and increased productivity (Nicholson & Rod, 2006 p 111). Organizations are therefore forced to be flexible and embrace rapid changing techniques that will fully support new developments. Therefore, this study appreciates that traditional management is inadequate in meeting the needs of the current hyper-competitive and fast changing environment. The old organization paradigm was more suited for a setting with slow and less aggressive competition (Kasahara, 2015). Therefore, modern business environment that is characterized by globalization requires the introduction of new methods and efficient management systems that are more conducive.
New technology supports extensive communication beyond borders, a feature that is assumed to eliminate chain of command, which is a strategy that was used during the traditional management system (Schultz & Hatch, 2006). Therefore, some of the important features that characterize the new organizational management include decreased overdependence on the chain of command, increased dependence on virtual technologies among other significant aspects. Globalization has contributed to efficient power sharing strategies, which are different from the traditional management strategies (Ajmal & Lodhi, 2016). Therefore, the new paradigm seeks to maintain a balance amid the company needs and those of the consumers in at the marketplace.
Conclusion
The modern business setting is characterized by virtual organizations, a concept that is fast becoming a reality to many. It is worth appreciating that different organizations ought to deal with the above implication and adopt new techniques that are relevant in the current business setting. Therefore, organizations such as Coca-Cola are moving from the traditional organizational paradigms to the new paradigms, which have proofed successful. The mere fact can adequately explain the change that traditional management has proofed inefficient in the modern business setting. Besides, different theories and concepts embraced support efficient decision making which is necessary for any business that wishes to prosper in the contemporary world. Therefore, as evidenced by this paper, different reasons support a move towards a new management paradigm to fully exploit the various opportunities in the market. Besides, companies that wish to remain relevant in the modern business setting have no option but to adopt the new paradigm as for the case of Coca-Cola.
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