case study of change management in the coca cola corporation

Coca Cola Change Management Case Study

Change is an inevitable part of running a successful business, and companies must adapt to remain competitive. However, managing change can be a daunting task, especially for large organizations. 

One company that successfully navigated the challenges of change management is Coca Cola. Over the years, Coca Cola has undergone several significant changes, ranging from product diversification to restructuring its organizational structure. 

In this blog post, we will take a closer look at Coca Cola’s change management journey, exploring the strategies the company used to overcome challenges, and the successful outcomes that resulted from these efforts. 

The blog post aims to provide valuable insights for businesses looking to implement change management strategies, exploring the importance of effective communication, strong leadership, planning, and implementation, and the role of employees in the change management process. 

Background and History of Coca Cola 

Coca Cola is one of the world’s most recognizable brands, known for its signature soft drink, which was first introduced in 1886 by a pharmacist named John Pemberton.

The original formula for Coca Cola included coca leaves and kola nuts, which gave the drink its name. The company quickly gained popularity, and by the early 1900s, Coca Cola was being sold in every state in the United States.

Over the years, Coca Cola has expanded its product line to include a variety of beverages, including Sprite, Fanta, and Dasani. Today, the company operates in more than 200 countries and has over 500 brands under its umbrella.

Coca Cola has also undergone several significant changes in its organizational structure, including the creation of a global business unit system in 2007, which aimed to streamline operations and improve efficiency.

Despite its success, Coca Cola has faced several challenges over the years, including changing consumer preferences, increased competition, and shifting market trends. To remain competitive, the company has had to adapt and implement change management strategies to navigate these challenges effectively.

Coca Cola’s need for change 

As a large and established company, Coca Cola has faced numerous challenges that have necessitated change. One of the most significant challenges the company has faced is the changing consumer preferences, particularly in the area of health and wellness.

Many consumers are seeking healthier alternatives to sugary drinks, which has led to a decline in sales of Coca Cola’s traditional soft drinks.

To remain competitive, Coca Cola has had to diversify its product line, introducing low and no-sugar options, such as Diet Coke and Coca Cola Zero, and expanding its portfolio to include juices, teas, and water. This diversification has required a significant shift in the company’s product development and marketing strategies, as well as changes to its supply chain and distribution networks.

In addition to changing consumer preferences, Coca Cola has also faced increasing competition from other beverage companies, including PepsiCo and Nestle. These companies have developed their own product lines and marketing strategies, posing a significant threat to Coca Cola’s market share.

To remain competitive and meet the changing demands of its consumers, Coca Cola has had to implement change management strategies to navigate these challenges effectively. These strategies have included restructuring its organizational structure, investing in research and development, and leveraging technology to improve efficiency and streamline operations.

Change Initiatives the Coca Cola successfully implemented in the past 

Coca Cola has implemented several successful change initiatives over the years to remain competitive and adapt to changing market trends. Some of these initiatives include:

• Diversification of product line: Coca Cola has expanded its product line to include a variety of beverages, including low and no-sugar options, juices, teas, and water, to meet changing consumer preferences and compete with other beverage companies.
• Restructuring of organizational structure: In 2007, Coca Cola implemented a global business unit system, which aimed to streamline operations and improve efficiency. This restructuring allowed the company to respond more quickly to market changes and better meet the needs of its customers.
• Leveraging technology : Coca Cola has leveraged technology to improve efficiency and streamline operations, including the use of automation in manufacturing processes, the implementation of digital marketing strategies, and the use of data analytics to inform decision-making.
• Investment in research and development: Coca Cola has invested heavily in research and development to create new products, improve existing ones, and remain competitive in the market. This investment has included the development of new sweeteners, packaging innovations, and sustainability initiatives.

Change Management Strategies of Coca Cola

Implementing successful change initiatives requires effective change management strategies. Coca Cola has implemented several strategies to manage these changes, including:

• Clear communication: Effective communication is essential in managing change. Coca Cola has made a concerted effort to communicate changes clearly to its employees, customers, and stakeholders. This communication has included regular updates on the progress of change initiatives, explanations of why changes are necessary, and the benefits of the changes.
• Strong leadership: Strong leadership is critical to the success of change initiatives. Coca Cola has emphasized the importance of leadership in driving change, providing training and development opportunities for leaders, and setting clear goals and expectations.
• Planning: Effective planning is essential in managing change. Coca Cola has developed comprehensive plans for implementing change initiatives, including timelines, budgets, and milestones. These plans have been regularly reviewed and adjusted as necessary to ensure that they remain on track.
• Employee involvement: Engaging employees in the change process is crucial for success. Coca Cola has encouraged employee involvement in change initiatives, seeking input and feedback on proposed changes and involving employees in the planning and implementation process.
• Continuous monitoring and evaluation: Monitoring and evaluating the progress of change initiatives is essential in ensuring their success. Coca Cola has established monitoring and evaluation mechanisms to track the progress of change initiatives and adjust them as necessary to ensure that they remain on track and achieve the desired outcomes.

Challenges in implementing change initiatives  

Coca Cola has faced several challenges in implementing change initiatives. Some of the most significant challenges include:

A. Resistance from employees: Change initiatives can be met with resistance from employees who may be hesitant to change established work processes or fear that the changes may affect job security. Coca Cola has addressed this challenge by emphasizing the benefits of change to employees, providing training and development opportunities to equip employees with the necessary skills and knowledge, and involving employees in the planning and implementation process.

B. Difficulty in changing company culture: Company culture can be difficult to change, particularly in large and established organizations like Coca Cola. The company has addressed this challenge by implementing change initiatives gradually, ensuring that the changes align with the company’s values and vision, and involving employees in the process to create a sense of ownership and accountability.

C. Technological challenges: Implementing new technologies can be challenging, particularly in an industry as complex as the beverage industry. Coca Cola has addressed this challenge by investing in research and development to identify and implement new technologies, partnering with technology companies to develop and implement new systems, and providing training and development opportunities to employees to ensure that they are equipped to use new technologies effectively.

D. Addressing these challenges: To address these challenges, Coca Cola has developed strategies to manage change effectively, including clear communication, strong leadership, effective planning, employee involvement, and continuous monitoring and evaluation. By implementing these strategies, Coca Cola has been able to navigate these challenges and successfully implement change initiatives to remain competitive in the beverage industry.

Final Words 

The importance of change management in large companies cannot be overstated. Change is a necessary component of growth and competitiveness, particularly in today’s rapidly changing business environment. Effective change management strategies are essential to ensure that change initiatives are successfully implemented, and the desired outcomes are achieved.

Coca Cola’s change management journey is an excellent example of how large organizations can navigate change successfully. The company’s commitment to effective change management strategies has enabled it to remain competitive in the beverage industry, adapt to changing market trends, and continue to grow and innovate. Overall, Coca Cola’s journey underscores the importance of effective change management in achieving long-term success in today’s business environment.

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Coca Cola Change Management Case Study (2024)

Change is an inevitable part of running a successful business, and companies must adapt to remain competitive. However, managing change can be a daunting task, especially for large organizations.

One company that successfully navigated the challenges of change management is Coca Cola. Over the years, Coca Cola has undergone several significant changes, ranging from product diversification to restructuring its organizational structure.

In this blog post, we will take a closer look at Coca Cola’s change management journey, exploring the strategies the company used to overcome challenges, and the successful outcomes that resulted from these efforts.

The blog post aims to provide valuable insights for businesses looking to implement change management strategies, exploring the importance of effective communication, strong leadership, planning, and implementation, and the role of employees in the change management process.

Background and History of Coca Cola

Coca Cola is one of the world’s most recognizable brands, known for its signature soft drink, which was first introduced in 1886 by a pharmacist named John Pemberton.

The original formula for Coca Cola included coca leaves and kola nuts, which gave the drink its name. The company quickly gained popularity, and by the early 1900s, Coca Cola was being sold in every state in the United States.

Over the years, Coca Cola has expanded its product line to include a variety of beverages, including Sprite, Fanta, and Dasani. Today, the company operates in more than 200 countries and has over 500 brands under its umbrella.

Coca Cola has also undergone several significant changes in its organizational structure, including the creation of a global business unit system in 2007, which aimed to streamline operations and improve efficiency.

Despite its success, Coca Cola has faced several challenges over the years, including changing consumer preferences, increased competition, and shifting market trends. To remain competitive, the company has had to adapt and implement change management strategies to navigate these challenges effectively.

Coca Cola’s need for change

As a large and established company, Coca Cola has faced numerous challenges that have necessitated change. One of the most significant challenges the company has faced is the changing consumer preferences, particularly in the area of health and wellness.

Many consumers are seeking healthier alternatives to sugary drinks, which has led to a decline in sales of Coca Cola’s traditional soft drinks.

To remain competitive, Coca Cola has had to diversify its product line, introducing low and no-sugar options, such as Diet co*ke and Coca Cola Zero, and expanding its portfolio to include juices, teas, and water. This diversification has required a significant shift in the company’s product development and marketing strategies, as well as changes to its supply chain and distribution networks.

In addition to changing consumer preferences, Coca Cola has also faced increasing competition from other beverage companies, including PepsiCo and Nestle. These companies have developed their own product lines and marketing strategies, posing a significant threat to Coca Cola’s market share.

To remain competitive and meet the changing demands of its consumers, Coca Cola has had to implement change management strategies to navigate these challenges effectively. These strategies have included restructuring its organizational structure, investing in research and development, and leveraging technology to improve efficiency and streamline operations.

Change Initiatives the Coca Cola successfully implemented in the past

Coca Cola has implemented several successful change initiatives over the years to remain competitive and adapt to changing market trends. Some of these initiatives include:

• Diversification of product line: Coca Cola has expanded its product line to include a variety of beverages, including low and no-sugar options, juices, teas, and water, to meet changing consumer preferences and compete with other beverage companies.
• Restructuring of organizational structure: In 2007, Coca Cola implemented a global business unit system, which aimed to streamline operations and improve efficiency. This restructuring allowed the company to respond more quickly to market changes and better meet the needs of its customers.
• Leveraging technology : Coca Cola has leveraged technology to improve efficiency and streamline operations, including the use of automation in manufacturing processes, the implementation of digital marketing strategies, and the use of data analytics to inform decision-making.
• Investment in research and development: Coca Cola has invested heavily in research and development to create new products, improve existing ones, and remain competitive in the market. This investment has included the development of new sweeteners, packaging innovations, and sustainability initiatives.

Change Management Strategies of Coca Cola

Implementing successful change initiatives requires effective change management strategies. Coca Cola has implemented several strategies to manage these changes, including:

• Clear communication: Effective communication is essential in managing change. Coca Cola has made a concerted effort to communicate changes clearly to its employees, customers, and stakeholders. This communication has included regular updates on the progress of change initiatives, explanations of why changes are necessary, and the benefits of the changes.
• Strong leadership: Strong leadership is critical to the success of change initiatives. Coca Cola has emphasized the importance of leadership in driving change, providing training and development opportunities for leaders, and setting clear goals and expectations.
• Planning: Effective planning is essential in managing change. Coca Cola has developed comprehensive plans for implementing change initiatives, including timelines, budgets, and milestones. These plans have been regularly reviewed and adjusted as necessary to ensure that they remain on track.
• Employee involvement: Engaging employees in the change process is crucial for success. Coca Cola has encouraged employee involvement in change initiatives, seeking input and feedback on proposed changes and involving employees in the planning and implementation process.
• Continuous monitoring and evaluation: Monitoring and evaluating the progress of change initiatives is essential in ensuring their success. Coca Cola has established monitoring and evaluation mechanisms to track the progress of change initiatives and adjust them as necessary to ensure that they remain on track and achieve the desired outcomes.

Challenges in implementing change initiatives

Coca Cola has faced several challenges in implementing change initiatives. Some of the most significant challenges include:

A. Resistance from employees: Change initiatives can be met with resistance from employees who may be hesitant to change established work processes or fear that the changes may affect job security. Coca Cola has addressed this challenge by emphasizing the benefits of change to employees, providing training and development opportunities to equip employees with the necessary skills and knowledge, and involving employees in the planning and implementation process.

B. Difficulty in changing company culture: Company culture can be difficult to change, particularly in large and established organizations like Coca Cola. The company has addressed this challenge by implementing change initiatives gradually, ensuring that the changes align with the company’s values and vision, and involving employees in the process to create a sense of ownership and accountability.

C. Technological challenges: Implementing new technologies can be challenging, particularly in an industry as complex as the beverage industry. Coca Cola has addressed this challenge by investing in research and development to identify and implement new technologies, partnering with technology companies to develop and implement new systems, and providing training and development opportunities to employees to ensure that they are equipped to use new technologies effectively.

D. Addressing these challenges: To address these challenges, Coca Cola has developed strategies to manage change effectively, including clear communication, strong leadership, effective planning, employee involvement, and continuous monitoring and evaluation. By implementing these strategies, Coca Cola has been able to navigate these challenges and successfully implement change initiatives to remain competitive in the beverage industry.

Final Words

The importance of change management in large companies cannot be overstated. Change is a necessary component of growth and competitiveness, particularly in today’s rapidly changing business environment. Effective change management strategies are essential to ensure that change initiatives are successfully implemented, and the desired outcomes are achieved.

Coca Cola’s change management journey is an excellent example of how large organizations can navigate change successfully. The company’s commitment to effective change management strategies has enabled it to remain competitive in the beverage industry, adapt to changing market trends, and continue to grow and innovate. Overall, Coca Cola’s journey underscores the importance of effective change management in achieving long-term success in today’s business environment.

What change management model does Coca-Cola use? ›

The coco cola company used theory of organization change presented by Kotler (1996) which elaborated the procedure to manage change on the people dimension of the organization.

There are many drivers for change, including the continuous advancement of technology, internal processes, acknowledgment of risk, consumer preferences changes, rival force, acquiring and alliances, and company restructuring . (Coca-Cola, 2019).

• Gain more consumers.
• Gain market share, especially in hot drinks.
• Strengthen stakeholder impact.
• Equip the organisation to win.

Lack of executive support and active sponsorship . Lack of effective communication led to misalignment. Lack of change buy-in and solution support created resistance. Limited knowledge and resources for change management.

Coca-Cola bottler makes major change to aluminum can packaging : 'First of its kind' A Philadelphia-based bottling company is ditching the so-called “six-pack” plastic rings featured in most packs of soda cans.

New co*ke, reformulated soft drink that the Coca-Cola Company introduced on April 23, 1985, to replace its flagship drink in the hope of revitalizing the brand and gaining market share in the beverage industry .

Change within Coca-Cola is triggered by either internal processes, regulatory sources, or the dimensions of the market . Generally the main reason why organizations need to change is to create better systems and procedures of its internal and external environment.

There are five primary forces that drive supply chains to adapt and evolve: social changes, technology, the environment, economics and politics . These five drivers of change can be simplified by the acronym, STEEP.

• Demographic. A changing work demographic might require an organizational change in culture. ...
• Social. Changing social trends can pressure organizations into making changes. ...
• Political. Government restrictions often force change onto organizations. ...
• Technology. ...

It analyses the 4Ps ( Product, Price, Place, and Promotion ) of Coca-Cola Company and explains its business & marketing strategies.

What are the strategic problems faced by co*ke? ›

The problems faced by Coca-Cola Company are high sugar harmful to health, increase in competitors, plastic bottle waste and water scarcity . These issues will lead to many negative impacts to social and natural environment.

The Coca-Cola Company purpose remains clear: To refresh the world and make a difference . This purpose is uniquely us. It's why we exist, and it's needed now, more than ever.

• 1) Managing multiple teams. ...
• 2) Differentiating the needs of multiple sites. ...
• 3) Updating appropriate documents to align with changes. ...
• 4) Juggling multiple simultaneous changes. ...
• 5) Lacking visibility into your change processes.

Top reasons for change management failure limited understanding of the change and its impact . negative employee attitudes. failure to involve employees in the change process. poor or inefficient communication.

They may be uncomfortable with the unknown or perceived risk . They may misunderstand or disagree with the goals and/or the strategy of the change initiative. They may fear what change means for their role or even their job security. They may lack trust in the management team or the organization.

Coca-Cola needs to increase the distribution of such products . Increasing the distribution of packaged drinking water like Kinley. Working on sustainability and green marketing It can improve its brand image in the market.

Coca-Colonization Coca-Cola has expanded its reach into many cultures and lives all over the world. Its influence can be seen in its presence in our movies, television programs, decorations, vending machines on every corner, and its myriad advertisem*nts . In addition, Coca-Cola has worked its way into traditions.

On 23 April 1985 New co*ke was introduced and a few days later the production of original co*ke was stopped. This joint decision has since been referred to as 'the biggest marketing blunder of all time'. Sales of New co*ke were low and public outrage was high at the fact that the original was no longer available .

Blind taste tests suggested that consumers preferred the sweeter taste of the competing product Pepsi, and so the Coca-Cola recipe was reformulated. The American public reacted negatively, and New co*ke was considered a major failure .

Manufacturers stood to save money by switching to corn-based ingredients. In 1980, Coca-Cola began using HFCS in its beverages, and by the mid 80s most other soft drink companies had followed suit.

What changed in the New co*ke Zero? ›

The recipe for co*ke Zero was also tweaked then, four years ago, but this 2021 rebrand is significantly more daring in terms of the visual and flavor evolution of the product. Gone is the primarily black can, replaced with one where red is now the dominant color, offset by black font .

• Executive Buy-In. ...
• Employee Support. ...
• Change Champions. ...
• Precise, Measurable Goals. ...
• Adaptability. ...
• Comprehensive Training.
• Understand Change.
• Plan Change.
• Implement Change.
• Communicate Change.

The Coca-Cola Foundation has three major priorities: Women: economic empowerment and entrepreneurship . Water: access to clean water, water conservation and recycling. Well-Being: active healthy living, education and youth development.

Hiring a Change Management Professional The 4 C's of a world-class change manager— commitment, connections, communication and creativity —may represent innate personality traits, trained capabilities, or most likely a combination of the two.

• Identify the need for change.
• Guide the organization through the transition period.
• Reinforce and sustain change once it is implemented.

Before you begin a system implementation, a transformation program, or any initiative involving change for your organization, remember to integrate the six key principles of successful change management: Leadership, Inclusion, Communication, Metrics, Enablement, and Reinforcement .

While there are many ways leaders can manage change, some of the best change management strategies include planning, transparency and honesty, communication, and employee participation .

co*ke aggressively markets its product lines through advertising across multiple mediums and channels , including TV, online ads, sponsorships, etc. Coca-Cola's sponsorships include NASCAR, NBA, the Olympics, American Idol, etc.

Coca-Cola is a global brand, appealing to a worldwide audience. The Coca-Cola target consumer is both male and female, covering almost the entire socio-economic spectrum, from average to high income earners.

What is Coca-Cola weakness and strength? ›

The strengths of Coca-Cola brand are brand equity and company value, strong marketing and advertising and largest market share. For weaknesses, Coca-Cola is word of mouth, health issues and brand failure . The opportunities are about word of mouth, health issues and brand failure.

Even one or two colas a day could increase your risk of type 2 diabetes by more than 20%. Sugar intake is linked to high blood pressure, high cholesterol, and excess fat, all of which increase the risk of heart disease. Colas and other sugary drinks have been linked to an increased risk of pancreatic cancer.

The competitive pressure from rival sellers is the greatest competition that Coca-Cola faces in the soft drink industry. Coca-Cola, Pepsi Co., and Cadbury Schweppes are the largest competitors in this industry, and they are all globally established which creates a great amount of competition.

Coca-Cola offers a monetary incentive to hardworking employees as a reward approach. Bonuses, raises in pay, airline tickets, and scholarships for the employees' children are among the financial benefits. Employees who perform poorly are not fairly compensated.

Leaders at Coca-Cola Commit to: Be the Role Model, Set the Agenda, and Help People Be Their Best Selves .

The ten marketing success factors of Coca-Cola Company are market research, market analysis, selecting target market, SWOT analysis, marketing mix, positioning, factors that influencing customer choice, innovation, brand development strategy and implementing, monitoring, controlling.

• Establish a Clear Vision. ...
• Leverage the Change Management Timeline. ...
• Support Your Employees. ...
• Ensure Effective Two-Way Communication. ...
• Focus on Skill Development.

Prosci research participants revealed their top five obstacles: Lack of executive support and active sponsorship . Lack of effective communication led to misalignment. Lack of change buy-in and solution support created resistance.

Letting go of our current state is one of the most difficult aspects of any change. A lack of leadership through this necessary step is one reason organizational change fails. The good news is there are things we can do to make letting go easier.

• Tracking project health.
• Evaluating change management efforts.
• The Willingness of Employees to Change.
• Incorrect Planning.
• Insufficient resourcing and Change management buy-in.

What is the number one rule of change management? ›

Leaders can increase their probability of success with any change initiative by keeping in mind these four simple rules. 1. Do not delegate large-scale organizational change to middle management . Senior leaders are best positioned to address large-scale change, despite their desire to empower middle managers.

Coca Cola exhibited the efficient change management as the part of the strategic management process . Change management is the process in which it manages the change in the side of the people . Their individual change management and the organizational change management are the theories of the change management .

The Coca-Cola Company is controlled through a vertical top-down hierarchy , with decision-making authority residing with the company's upper management and flowing down the organizational hierarchy.

The Coca-Cola Company owns and develops its brands while Coca-Cola HBC is responsible for producing, distributing, and selling these beverages, using concentrate we buy from The Coca-Cola Company under an incidence-based pricing model .

The SCARF model was developed by David Rock, 2008, and is primarily applied in a Change environment . However, it is also useful in developing the best approach to collaboration, coaching, and training situations.

These regional divisions are then organized into the functional departments which in its case comprise the Production, Industrial Relations, Sales and Marketing, and Human Resources departments .

Coca-Cola offers a monetary incentive to hardworking employees as a reward approach. Bonuses, raises in pay, airline tickets, and scholarships for the employees' children are among the financial benefits.

Coca-cola depends on its management teams, quality control process as well as production policies . With a network of branches and bottling partners, the company produces more than 300 brands across the globe. Its operation on the global arena concentrates in over 200 countries (Pendergrast, 2000).

Participative Leadership Theory : Team based decision making is better and more committed than individual persons. Coca Cola Company uses this theory and focuses on the development of teams for more focused and cooperative decision making rather than being alone.

Culture Coca-Cola inclusive workplace culture consists of seven core values: leadership, passion, integrity, collaboration, diversity, quality, and accountability .

What are the 8 business functions of Coca-Cola? ›

Coca Cola Company's Main Business functions areas are Accounting, Finance, Marketing, Production, Human Resource management, IT Support, Other functions, Research and development, Information Services .

Coca-cola effectively uses a low pricing strategy a lot to penetrate new markets that are very price-conscious. They set the prices around the same level as the competitors to enable Coca-cola to be distinct but affordable . They do this to beat the competition on price and raise the awareness of the Coca-Cola brand.

• Step 1: Unfreeze. Lewin identifies human behavior, with respect to change, as a quasi-stationary equilibrium state. ...
• Step 2: Change. Once you've “unfrozen” the status quo, you may begin to implement your change. ...
• Step 3: Refreeze.

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Change Management at Coca-Cola Corporation Report

Coca-cola corporation, the firm status before taking a decision of change, trigger event that had forced this firm to feel the need for change, main purpose of change, change implementation process, consolidating change, the obstacles that firm might encounter and how it had overcome them, the ultimate outcome of changes made at coca-cola, works cited.

Coca-Cola is the world’s leading carbonated drinks manufacturers; the company’s management has withstood hard economic times like the World War II and the Asian Financial Crisis. To remain competitive, the company’s management keeps changing its strategies, policies, and products to meet customers’ expectations and enhance efficiency.

When adopting new strategies and policies, the company engages the services of its change management team. Change management is a structured approach which aims at translating/shifting an organization, functional teams, or individuals from current/past state to a desired future state.

The process of change starts by systematic diagnosis of the situation to transform and gauging the capability to change; the process involves all stakeholders at different levels (Newman 12-78). This paper examines the various changes that have occurred at Coca-Cola Corporation; it will further discuss the change management approach that the company has undertaken.

Coca-cola was founded on 8 th May, 1886 by a local pharmacists in Atlanta called John Pemberton,; initially Coca-cola, the product from the company, was sold as a drug to cure diseases like dyspepsia, morphine addiction, headache and impotence.

A year later, the drug was selling well in the market; Asa Griggs Candler noted the trend in the market and obtained a stake in the John Pemberton, invention. In 1887, Asa Griggs Candler advised that the production be done at a company level; jointly they incorporated a company and called it Coca-Cola.

To protect the formula, the company sort for legal rights and exclusive rights for the formula which was granted; since then the company has kept changing its business approached to remain competitive.

Over the years, people, systems, and environments have evolved; the only thing that has remained constant is change. Change is evident from the physical, environmental or situational attributes of the business environment.

It is enacted in either internal or external attributes of a business. Changes that have occurred at Coca-Cola can be classified products change, process change, internal structure, and processes changes and changes in markets (Coca-Cola Official Website).

The status of Coca-Cola before a change varies with the condition of the market then; the main trigger of change at Coca-Cola has been the forces of the market and legislations that have likely affected the business. The business environment is challenged by competitors like Pepsi and other international carbonated beverages companies.

After the invention made by John Pemberton, Coca-Cola has been on the forefront coming up with products that fit the market effectively and beat its rivals. In 1961, the company was facing fiancé competition from a brand by Pepsi called 7 Up and decided to develop a product that specifically addressed the competition; they came up with Sprite.

With the product performing well in the competitive environment, the company in 1974 rebranded the brand to Sugar Free Sprite” in 1974, then was renamed to “Diet Sprite” in 1983, the rebranding was in the effort of creating more customer satisfaction and creating the impression that the product is superior than the original one.

In 2008, the company introduced a different taste of Sprite and named it as Sprite Green, the product was sweetened with Truvia in the effort of improving customer satisfaction.

The new changes and brand improvements that have been made at Sprite is an indication of how the company uses change to develop and improve quality of its products. the diagram below shows a packaging for Sprite:

In the year 1985, Coca-Cola was facing fiancé and aggressive competition from its rival Pepsi; the then management decided to reformulate its popular carbonated drink to suit their consumers. The decision that was arrived at is making of a sweeter soda which was named as new Coke.

Surprisingly even after the invention, the products was a market failure and the company had no option than revert back to its original product. With the revert to the older version, the management was determined to change and make the product look superior than the original product, they named the product as Coca-Cola Classic although it was the same product they had packaged earlier (Sadler and James 56-123).

The move of 1985, by the company to change and invent another products to fight its competition rhythms with the need for change; change is enacted to improve an organization’s competitiveness and improve its internal process.

The failure of the company’s change was an eye opener to the management on the quality and loyalty that its customers had with the products.

In a manner likely to boost consumers’ satisfaction, the management rebranded the consumer preferred products to Coca-Cola Classic, the rebranding was aimed at creating an impression that the product was superior to the other one. This was a psychological approach to customers through a change process.

In the year 2005, the United States was concerned about their population health situation; there was much advocacy on the kind of foods and drinks the people were eating.

Coca-Cola management realized the campaigns and the effects they had in the carbonated drinks markets and invented the Diet Coke and Coca-Cola Zero brands. The diagram below shows a diet coke parked in canes and also Coca-Cola Zero brands:

The brands were manufactured in a more special manner to enhance their quality and reduce any risk on human health and fitness. The move to Diet Coke and Coca-Cola Zero is seen as a responsive approach to changes affecting the industry; it came at the time that campaigners of good health and fitness were advocating for avoiding taking such carbonated products.

The attempt can be seen as a strategic management approach where the company sort to respond to changes in the market and devised products that were responding to the needs of its customers (Coca-Cola Official Website).

Change within Coca-Cola is triggered by either internal processes, regulatory sources, or the dimensions of the market. Generally the main reason why organizations need to change is to create better systems and procedures of its internal and external environment.

Change is aimed at improving current position of an organization to another better situation with the need or aim of taking advantage of opportunities offered by the market and mitigating any risks and threats as a result.

At Coca-Cola the following are the main purposes that change that has occurred has been done for:

• Change in technology being utilized; under the method, the company aims at adopting a technology level that is most efficient within the industry. When efficiency is maintained, then management is able to manage processes for quality, affordability, and cost management.
• Change in tastes and expectation of consumers, consumers are the backbone of an organization; to attain, maintain, and develop customer loyalty, the company keeps changing its products tastes.
• Changes to face competition; the carbonated soft drinks industry is highly competitive, to ensure that Coca-Cola remain competitive, the management has to keep coming up with formulae’s, and strategies to address the competition
• Changes in supply chain and distribution chains; when the world changes in the methods and systems to provide goods across different areas, the management has to align with the new methods for better approach.

Changes of legislation by the government and modifications in the economy whether locally or internationally; Coca Cola operates in more than 200 countries, with such a base the management has the role of responding to changes in both local and international markets (Kalmar 45).

The success of change program is dependent on how well it has been implemented; implementation starts with the change planning and enactment of methods that will facilitate fast adjustment of stakeholders likely to be affected by the change.

Personnel attitude towards change determines the degree at which the change process will be effective; the following process is followed when implementing change at Coca- Cola:

• Planning change

Coca-Cola’s leaders who are mostly the change agents recognize the need for change, they analysis the prevailing condition in the industry to get the areas that need to be improved.

The need for a change is triggered by the need to move from current state to another better state; internal and external audit are conducted to ensure that current position in market is recognized. For example when faced with fiancé competition, the management analysis the situation to see the best method it can adopt to fight back the competition.

• Pilot study and management sensitisation

After current states that need to be changed has been recognized; the change agents discusses their findings and recommendations with the top management. The exercise is important since it improves the management understanding of the change.

The nature of the change to be adopted by Coca-Cola determines the kind of pilot study they will undertake. For example when the company has settled to develop new product, it tests them in the market to get the response of the people. It is through the response that it works and controls the change.

When changing risk areas should be established to ensure that mitigation measures have been established; some risks associated with change include staff resistance, and poor decisions by the change agents.

• Staff sensitization and involvement

The success of change process is determined by the degree at which human resources operating in an organization will adopt. From planning stage, the management should involve their subordinates and consider their inputs in the process. Initially employees are likely to have a number of questions regarding the change and how will be affected by the change.

Change agents should be well versed with the expected change results and the effects it is likely to have on employees; explanations sort by employees should be offered effectively and timely. In case some employees have some recommendations to the change, their views should not be locked out but should be included in the change process as long as they will not contradict the objectives targeted by the change.

When adopting change, Coca-Cola management understands that it’s a tension period thus they keep affirming to their employees that they are part and parcel of the change process and the process should not be implemented on them rather they should be fully involved in the change process.

The last stage of change implementation is consolidation of the change; this stage is only done when all things are set to go and attitude of employees towards the perceived change is positive. In the event there are some issues that can be handled before implementation, Coca-Cola management addresses them in good time.

Before switching the old strategy of doing things, the new strategy and the old one should be run concurrently to test the new strategy. During testing, employees interact with both system and appreciate the differences and superiority of the new system.

Change management involves the numerous and continuous processes that management will be engaging in to ensure that the implemented change has been maintained and offer room for future changes. The method involves analysis situations occasionally and ensuring any differences on expectations have been addressed accordingly (Hiatt and Creasey 45-78).

When undertaking a change, there are numerous challenges and obstacles that organizations face; at Coca-Cola the main challenges are staff resistance, diverse market, and organizational culture. When adopting internal process changes, the human resources of the company sometime repel or take some time before they adopt the change fully.

Personnel resistance to change is brought about by the power of inertia; this is the tendency that people have to stick to their usual way of operation and feel not willing to change their system of doing things.

Coca-Cola operates in more than 200 countries; all these countries have customers with different needs, expectations, and attitude towards the company’s products. When a change has been implemented, it is likely not to go well with all stakeholders and customers it will affect.

International customers are likely to repel a certain change that domestic customers have accepted. When such occurrences take place, then the company is challenged on the way forward as every change need to be supported by reliable market base for it to be economical.

Although Coca-Cola has an organizational culture that supports change, there are some instances that the culture affects it negatively. Where people are working together, there are always some opinion leaders whom in the event they are not okay with the decisions of change, they are likely to influence the entire team to repel change.

The best strategy to overcome change resistance at Coca-Cola is adopting and adhering to effective change management strategy. When adopting change, the management engages the service of consultants, market researchers, and other professionals related to the area of change.

By so doing both internal and external resistances/challenges to change are addressed effectively before the change has been fully implemented. So far the method has been successful and when failed the management was quick to act and change the process (Hayes 23-45).

The changes that have been implemented at Coca-Cola Corporation have made the company maintain competitiveness in the industry.

The company has been successful for over 125 years despite hard economic times like the world war 1 , the World War 2, the Great Depression and recent Global Financial crisis. The success has been attained because of effective changes enacted by the management.

According to the company’s website, the company has about 500 brands that are served in over 200 countries; every day the company serves about 1.6 billion servings.

The improved product quality has created an impressive business for the company to qualify to be part of DJIA, theRussell 1000 Index, S&P 500 Index, and the Russell 1000 Growth Stock Index. To its investors and shareholders, the company has been able for pay dividends in the last 49 years consequently (Coca-Cola Official Website).

Coca-Cola Official Website. Coca-Cola Corporation. Coca-Cola Corporation, 2011. Web.

Hayes, Johns. The Theory and practice of Change Management . New York: Palgrave Macmillan, 2010. Print.

Hiatt, Jeff, and Creasey Timothy. Change management: the people side of change. Colorado: Prosci, 2003. Print.

Kalmar, Anthony. Human Resource Management, A Strategic Approach. South-Western, Thomson Learning, 2002. Print.

Newman, Janet. Modernising Governance . Belmont: SAGE Publications, 2001. Print.

Sadler, Philip, and James Craig. Strategic management . London: Kogan Page Publishers, 2003. Print.

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IvyPanda. (2019, March 28). Change Management at Coca-Cola Corporation. https://ivypanda.com/essays/change-management-at-coca-cola-corporation/

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Change Management – Coca Cola Corporation

How it works

The Coca-Cola Company is a leading nonalcoholic beverage company, owing or licensing and marketing more than 500 brands. Among the world’s top five nonalcoholic sparkling soft drink brands, four of them is owned and marketed: Coca-Cola, Diet Coke, Fanta and Sprite. There are two main businesses ‘concentrate business’ consists of beverage concentrates and syrups as well as fountain syrups; and ‘finished product business’ implies finished sparkling soft drinks and other nonalcoholic beverages are manufactured and sell in the markets. Generally, net operating revenues generated by finished product operations is higher but lower gross profit margins than concentrate operations.

Coca Cola Corporation has gone through many internal and external changes since it is among one of the oldest corporations of the world. The use of techniques of change management and innovation helped Coca Cola to survive from the consequences of those events.

Change can be alternations in people or in structure or in technology. Basically, “change is a variation in the common way of doing things. Whenever people perform a task in a certain way, they get accustomed to them. They develop methods which they can implement routinely to achieve these tasks. Any variation in these methods is nothing but CHANGE.” (L1-Changement, p3) Change occurs due to external and internal factors. External factors are such as marketplace, government laws and regulations, technology and economic, while internal factors are technology, workforce, corporate strategy, equipment and employee attitudes. (L1-Changement, p4-6)

According to MacCalman and Parton, external environment is the most influential factor that triggers changes in an organization:

• “due to competition, changes occur
• the tastes and expectations of the consumers changed
• the value systems of the society changed
• the supply chain and the distribution chain changed
• due to modifications in the economy whether local or internationally, changes occur
• technology being utilized changed
• because of legislation by the government, changes occur
• the communications media changed”

Resistance to change can adversely affect organizations resulted in higher risks and losses. In this case, “Coca Cola like any other company is a type of company that requires making changes in its products and business strategies according to the consumer expectations and external environment.”

“The nonalcoholic beverage segment of the commercial beverage industry is highly competitive and Coca Cola’s competitive challenges include strong competition with from small to large and well-established companies in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage suppliers and individual retailers’ own store or private label beverage brands. Significant competitors in many other countries including the United States are PepsiCo, Inc., Nestlé S.A., Keurig Dr Pepper Inc., Groupe Danone, Mondel?z International, Inc., The Kraft Heinz Company, Suntory Beverage & Food Limited and Unilever. It also competes increasingly, against smaller companies that are developing micro brands and selling them directly to consumers through e-commerce retailers and other e-commerce platforms.” (10-K filling report)

“Products are competitive which are sold to consumers in both ready-to-drink and other than ready-to-drink for, including numerous nonalcoholic sparkling soft drinks; various water products, including flavored and enhanced waters; juices and nectars; fruit drinks and dilatable (including syrups and powdered drinks); coffees and teas; energy, sports and other performance-enhancing drinks; milk and other dairy-based drinks; functional beverages, including vitamin-based products and relaxation beverages; and various other nonalcoholic beverages.” (10-K filling report)

“Competitive factors impacting its business include pricing, advertising, sales promotion programs, in-store displays and point-of-sale marketing, product and ingredient innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, contracting with marketing assets (theaters, sports arenas, universities, etc.) and brand and trademark development and protection.” (10-K filling report)

Coca-Cola is the market leader in the non-alcoholic beverage industry, with sales of $ 42 billion and serving more than 500 brands in more than 200 markets. Soft drinks seem to be a mature market to some extent, but the market is still growing at an annual average of 4%. Coca-Cola has a clear value creation model that it has a consumer-centric brands and shares the value gained by brand stretching among companies, intermediary companies, customers, etc., and enhances brand value by further investing in systems. (Investor Overview)

However, environment is changing over time and it is facing the issues such as the natural environment, sugar and functionality, digital evolution, changes in shopping patterns, and increased awareness of importance of social license.

Thus, Coca Cola is in the midst of change to transform the company as below:

• Accelerating a consumer-centric brand portfolio
• Reducing sugar footprint
• Driving top-line growth and operating margin expansion
• Segmented revenue growth strategies
• Delivering productivity
• Implementing a new operating model
• Leading a system of strong aligned partners

At the beginning of 2014, it focused on 5 strategic actions to drive their transformation: focus on core business model; streamline and simplify; drive efficiency through aggressive productivity; focus on revenue through segmented market roles; disciplined brand and growth investments. And it had revitalized activities such as organizational capacity and leadership structure, brands, portfolios, bottling systems, cost reductions, and marketing communication. These actions have resulted in higher core business sales compared to the market environment (Personal Consumption Expenditure).

In 2016, it delivered growth and operating margin improvement. As a result, overall sales increased 3%, core business sales increased 4%, and profits increased 8%. But accelerated underlying performance had been offset by currency and structural impact as compared to previous years. (Investor Overview)

The key strategies for 2017 were “accelerate growth of consumer-centric brand portfolio, drive revenue growth, strengthen its system, digitize the enterprise- ‘Click’s reach of desire, unlock the power of its people. It grows its portfolio in 3 ways: innovate locally; scale globally; drive M&A. Five actions were taken to reduce sugar footprint 1. focus on zeros 2. Reformulate to reduce sugar 3. Drive small packs 4. Downsize select single-serve packs 5. Accelerate portfolio expansion of low/no added-sugar drinks.” In order to drive revenue growth, dividing the market into two segments- emerging markets like China and developed markets like North America. By strengthening the system to improve local market performance, franchise system had been significantly changed, and merger of bottling companies and expansion in various geographic regions had been executed.

After the transformation, Coca-Cola’s share of the entire supply chain would be significantly smaller, with independent bottlers in each region account for 97%. Also, as it transferred employees to independent bottlers, the number of Coca-Cola employees would be reduced from 100,000 in 2016 to 39,000. (Investor Overview)

Coca-Cola needs to increase sales and improve profitability while responding to environment changes. The environmental changes include the importance of corporate responsibility (such as sugar reduction) and the acceleration of the digital evolution. To do so, Coca-Cola is promoting changes in its product portfolio and organizational structure. Growth of product portfolio is based on products development, globalization, and M&A, in particular, developing products with reduced sugar and downsizing packages. Due to changes in the organizational structure, the staff of Coca-Cola itself will be greatly reduced, and the proportion of bottling companies in the entire supply chain will increase from 85% to 97%. By doing so, Coca cola aims to achieve both cost reduction and more efficient sales, as well as improved sales and profitability.

Innovation is an essential part for the growth strategy of the Coca-Cola Company. Over the past few years, by accelerating the pace of innovation, it has accomplished sustained growth and success stories in most global markets such as Coca-Cola Zero Sugar. Innovation contribution to unit case volume includes innovation launched in the past 3 years has increased from 9% in 2015 to 17% in 2018. Moreover, the Coca-Cola ® flagship brand has been improved through a more consumer-oriented approach by introducing several innovative beverages around the world which also helped to connect with the modern consumer, including Coca-Cola Plus (with fiber), Coca-Cola With Coffee, and Coca-Cola Energy.

If we look back on history of Coca-Cola, we can learn how innovation helped it to survive against stiff competitions. In 1961, the company developed a product called Sprite to compete against with Pepsi product called 7 Up. Also, in 1974 it was rebranded to Sugar Free Sprite and renamed to “Diet Sprite” in 1983. In 2008, the company introduced Sprite Green which has a different taste of Sprite. During 1985, Coca Cola decided to reformulate its popular carbonated drink, making of a sweeter soda which was named as new Coke.

However, it reverts back to its original product due to market failure, and renamed the original brand as Coca-Cola Classic. “The rebranding was in the effort of creating more customer satisfaction and creating the impression that the product is superior than the original one. This was a psychological approach to customers through a change process.” (IvyPanda, 2019)

Coca Cola should analyze its strengths, opportunities, weaknesses and threats as below Table-1, and identify the need to change by utilizing strengths and opportunities to overcome weaknesses and threats before implementing change management.

The trend in health and fitness and consumer tastes and lifestyles had significantly impact on the business of Coca Cola. Specifically, public concerns about the negative health consequences of certain ingredients in its beverage products, such as non-nutritive sweeteners and biotechnology-derived substances may affect consumers preferences and that could result in additional governmental regulations related to the marketing, labeling or sale of its beverages; possible new or increased taxes on its beverages and threatened legal actions against them or other companies in this industry could damage the reputation and may reduce demand for its beverage products.

If Coca Cola cannot achieve their growth strategy through innovation activities, financial results may be negatively affected. Therefore, Coca Cola should focus on consumer trends and obtain necessary intellectual property protections, and avoid infringing on the intellectual property rights of others. Moreover, if Coca Cola is not able to adapt and thrive in the digital evolution, it will not achieve to increase sales and reduce costs. Therefore, it should find ways to create more powerful digital tools and capabilities for the Coca?Cola system’s retail customers to enable them to grow their businesses; and digitizing operations through the use of data, artificial intelligence, automation, robotics and digital devices to increase efficiency and productivity.

When the expected scenario is left unclear. ‘Details’ and ‘what should be’ are not specifically recognized, there will have issues in change process so it is important to have a clear ‘expected scenario’ that they want to do for themselves.

In most business organizations which are poorly performing do not fully recognize even ‘current problems’, and it is also important to foresee the prospect of what will happen to the business if this situation continues.

To have a sense of urgency or crisis is very important, however, there are still many people in poorly performing companies who do not feel a sense of crisis.

People who have a sense of crisis in the current situation always ask themselves, ‘What kind of action should I take?’ And ‘Why did this happen?’ In other words, a cause analysis is needed before starting the action.

Successful strategies are always simple. Strategies that cannot be explained without taking a long time are likely to be poor strategies. The “scenario for change program” must be as simple as possible.

If leaders of change management are going to push into truly drastic changes, they must choose high-risk options and make decisions step by step. However, those who do not have the insights of experience tend to procrastinate by saying, ‘I have not decided yet.’

It often happens against change scenario that dispute against each subject matter, the details of the action plan are ambiguous and skip to make decisions when there is lack of ability such as precision and leadership.

Change process can be slow due to the repetition of an action and lack of setting a projection and non-stop competitions.

Hinders the achievement: the rewards for those who take the risk are often unreasonably low and not rewarded in terms of promotions or monetary.

Therefore, it is important to embrace change rather than resisting it, ensuring change will bring advantages to all the parties involved by communicating properly the reasons of the need of change so that a smooth transition towards the new change can be implemented in any types of organizations such as organizational structure, design, culture, management and leadership. Moreover, before-and-after implementing change, it is critical to evaluate whether the change would make a best fit with the organizational goals.

I think, we should address the following issues and make changes for our business’s future growth; to change the company culture; to get aligned with the company philosophy and vision; to raise awareness of managers and unleash the potential of employees to create strong teams; bring out the initiative of field employees. It is said that changing the organization may take an average of three years. However, in order to increase organizational strength, we should take an approach to start from a stage where our change plan can be implemented quickly.

• The members do not have the subjective consciousness like ‘ what I want to do? ‘
• No awareness and actions committed to organizational purpose
• Lack of thinking what they can do alone. Passive character with no mindset to take action

Firstly, it is necessary to make friends since we cannot perform everything ourselves, but also to find someone who have the same goal. Although having a lot of friends seem to be better, at first, we should connect with friends only who have the same aspirations. If we fail to do so, we may not be able to perform well due to having a lot of non-serious friends. So, if we want to change something, we will need serious attempts until we succeed, otherwise, negativity from other members can hinder at any phase of our change program. Hence, at initial stage, we should look for some friends who can share the same thoughts.

Secondly, we should look out the things around us instead of working on big things suddenly. The main important factor is that we just do what can do even though it may be too easy to execute. Many people think that the bigger target is more challenging but we should not stop doing what we can do if it is trivial or challenging. The purpose is to create a decent track record. If we can implement small changes and make achievements, people around us will see differently. In other words, if we did not do anything and have no track record, people around us may see negatively as ‘only words’ or ‘why you were so proud of yourself ‘. In order to prevent this from happening, it is important to start from possible thing and execute to achieve results.

It is interesting to note that when we decide what to do, it should be align with future changes. We need to choose something that will bring even a millimeter closer to our vision what we really want to do in the future. Otherwise, even if our change program is in progress, we will not be able to reach the goals we set.

Finally, achieving results are very important and then we can connect further. Once we decide to do it, we should make sure it works in the next step. Since we are trying on what we can do, we should be able to make it possible, however, we just have to stick to the visible results because as mentioned above, this result will lead to increase more members and to gain trust from our superiors. After we gain an achievement from our efforts, we can move forward to the next step. In order to challenge a little more difficult, we should look for new members. We may need to get permissions from our superiors depends on the situations, so we must appeal about our achievements and consult with them. After that, we can repeat the same steps step by step as discussed above and gradually lead up in a spiral path, then we will realize that our company environment has be changed suddenly.

To conclude, if we want to make a change, it is important to consider taking a small step at the beginning. We may be scared of moving in the wrong direction or sometime we may lose our faith and want to give up, it may not be as easy as we think, however, without executing the change just with considering and planning, we will not see the actual changes after all. We can fix if things go wrong so we should start from a small change and take a step forward. If we have a vision, we should try to change and evaluate each stage of changes by approaching toward that vision is essential, I believe.

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Coca-Cola Marketing Strategy: A 2024 Comprehensive Case Study

Introduced over a century ago, Coca-Cola remains the world’s most consumed soda, illustrating its unparalleled ability to engage and captivate consumers globally. This case study explores the marketing strategy of Coca-Cola that continues to make it the leading manufacturer and licensor of nonalcoholic beverages, offering a staggering 3,500 varieties across more than 200 countries. 

From Pharmacist's Elixir to Global Refreshment Drink

On May 8, 1886, Dr. John Pemberton created what is now known as Coca-Cola. Originally sold at a pharmacy in Atlanta as a medicinal elixir, Coca-Cola has transformed into a global refreshment enjoyed daily by millions. 

What is Coca-Cola's Marketing Strategy?

The strategic marketing decisions made by Coca-Cola are largely responsible for its success. The company's approach includes comprehensive branding , widespread distribution, creative advertising, and innovative customer engagement tactics. Coca-Cola’s overarching vision continues to drive its global agenda, remaining focused on refreshing the world in mind, body, and spirit and making a difference to the people and communities it serves. This vision has enabled the company to maintain direction and momentum through periods of uncertainty.

Coca-Cola Target Audience

• Age : Targets youths (10–35 years) with celebrity endorsements and vibrant campaigns, while also catering to health-conscious older adults with products like Diet Coke and Coke Zero. ‍
• Income and Family Size: Offers various packaging options across different price points to ensure affordability for students, middle-class families, and low-income groups. ‍
• Geographical Segmentation: Tailors its formulas to suit regional tastes, such as sweeter versions in Asia, to resonate with local preferences. ‍
• Gender: Differentiates offerings like Coca-Cola Light for women and Coke Zero for men, focusing on taste preferences linked to gender.

Advertising

From early advertisements in newspapers to groundbreaking campaigns like "I’d Like to Buy the World a Coke," Coca-Cola has always known the power of effective advertising. Each campaign not only promoted their product but also cemented Coca-Cola’s place in the cultural landscape. Coca-Cola’s advertising campaigns are designed to resonate on a global scale while maintaining local relevance. These strategies include:

• Creative Campaigns: Engaging and visually appealing ads that capture the essence of joy and refreshment. ‍
• Emotional Branding : Utilizing regional languages and culturally relevant content to connect emotionally with consumers. ‍
• Celebrity Partnerships: Collaborating with local and international celebrities to widen reach.
• Wide Coverage: Utilizing multiple channels, from traditional media to digital platforms. ‍
• Engagement : Interactive campaigns and social media strategies to engage with a younger audience.
• Sponsorships : Long-standing partnerships with major events like the Olympics, FIFA World Cup, American Idol and popular TV shows enhancing brand visibility and consumer connection globally. ‍

Coca-Cola has also embraced personalization in its past campaigns, from names on bottles to personalized marketing emails, enhancing consumer loyalty and personal connection with the brand.

1. "Share a Coke" Campaign

Launched initially in Australia in 2011, the "Share a Coke" campaign is one of the most celebrated and successful marketing strategies in Coca-Cola's history. The campaign was groundbreaking in its approach—replacing the iconic Coca-Cola logo on bottles with common first names. The idea was simple yet powerful: personalize the Coke experience to encourage sharing and create a personal connection with the product. Consumers could find bottles with their names or the names of friends and family, making it not just a purchase but a personalized social experience. The campaign heavily leveraged social media, encouraging people to share their Coca-Cola moments online with the hashtag #ShareaCoke, which amplified the campaign's reach exponentially. After its initial success in Australia, the campaign rolled out in over 80 countries with country-specific names and designs, each resonating with local audiences and cultural nuances.

2. "I'd Like to Buy the World a Coke" (Hilltop)

Originally aired in 1971, the "Hilltop" commercial for Coca-Cola, also known as "I'd Like to Buy the World a Coke," remains one of the most iconic advertisements in the history of television. Conceived by Bill Backer of McCann Erickson, the commercial featured a diverse group of young people from all over the world singing on a hilltop in Italy. The ad's simple yet profound message of hope and unity, expressed through the lyrics "I'd like to buy the world a home and furnish it with love," struck a chord during a time of political unrest and social change. The commercial became more than just an ad; it became a cultural icon, evoking feelings of peace and camaraderie at a global scale. The ad's popularity led to several remakes and re-releases over the decades, including a famous 1990 version featuring the original singers and their children, and a Super Bowl version in 2011.

3. "The Happiness Machine"

As part of its "Open Happiness" campaign, Coca-Cola launched "The Happiness Machine" video in 2010. The campaign featured a specially designed Coke vending machine placed in a college campus that dispensed not just bottles of Coke but surprising acts of "happiness" – from pizza and flowers to balloon animals. The video quickly went viral, thanks to its genuine, unscripted reactions and feel-good vibe. It amassed millions of views on YouTube, bringing widespread attention and goodwill toward the brand. This campaign emphasized Coca-Cola's focus on selling experiences and emotions associated with the brand, not just the product. It highlighted the brand’s commitment to spreading joy and happiness. The success of the "Happiness Machine" led to the creation of similar campaigns globally, harnessing the power of viral marketing and showing the brand's innovative approach to engaging with younger audiences.

Social Media and Digital Marketing

Coca-Cola has evolved its marketing strateg y from traditional mediums to a more integrated, multi-channel approach. The focus is now on building personal connections with consumers and leveraging digital platforms for targeted and engaging marketing campaigns. This shift has allowed Coca-Cola to maintain its relevance. Coca-Cola has embraced the digital age with robust online presence across platforms like Facebook, Twitter, Instagram, YouTube, and Snapchat. The brand leverages SEO , email marketing , content marketing , and video marketing to engage a broader audience effectively.

Coca-Cola Marketing Strategy

Coca-Cola employs a dual-channel marketing strategy :

• Personal Channels: Direct interaction with consumers to build personal connections. ‍
• Non-Personal Channels: A mix of traditional and digital media, including newspapers, TV, social media, email, and outdoor advertising, to ensure widespread reach. ‍

Coca-Cola’s Marketing Mix: The 4 Ps

• Product Strategy: Coca-Cola boasts an extensive portfolio of 500 products, positioned strategically within the market to maximize reach and profitability. Coca-Cola’s commitment to maintaining its original formula and ensuring product quality has fostered deep brand loyalty . Even when new recipes were introduced, such as New Coke, the public’s attachment to the original formula brought it swiftly back. To cater to diverse consumer tastes, Coca-Cola has expanded its product portfolio to include juices, teas, coffees, and other beverages. This diversification strategy helps the company penetrate different market segments. ‍
• Pricing Strategy: Initially maintained a constant price for decades, it now employs a flexible pricing strategy to remain competitive without compromising perceived quality. Coca-Cola's pricing strategy is carefully crafted to remain competitive while ensuring profitability.  ‍
• Place Strategy: Operates a vast distribution network across six global regions, supported by an extensive supply chain involving bottling partners and distributors, ensuring global product availability. ‍
• Promotion Strategy: Invests heavily in diverse advertising strategies to maintain brand visibility and consumer engagement across various platforms. ‍ ‍

Coca-Cola's Growth Strategy

• Winning More Consumers : Expanding the consumer base through effective marketing and innovative product offerings. ‍
• Gaining Market Share: Outperforming competitors by understanding consumer needs better and responding quickly. ‍
• Maintaining Strong System Economics: Ensuring profitability and sustainability across the supply chain. ‍
• Strengthening Impact Across Stakeholders: Building a positive influence on consumers, communities, and environments. ‍
• Equipping for Future Success: Preparing the organization to meet future challenges through continuous learning and adaptation.

Additionally, sustainability is integral to Coca-Cola's growth strategy. The company has focused on reducing its environmental footprint, using resources more efficiently, and promoting recycling. These efforts are aligned with its mission to make a difference, ensuring that growth is sustainable over the long term. 

These objectives serve as the north stars for Coca-Cola, guiding all strategic decisions and initiatives.

Brand Portfolio Optimization

The iconic Coca-Cola logo and the classic bottle design are instantly recognizable worldwide, making branding a cornerstone of their strategy. This section examines how consistent branding across various platforms plays a critical role in Coca-Cola's marketing . Keeping a uniform visual identity and engaging in significant sponsorships have allowed Coca-Cola to remain relevant and beloved by generations. In a significant move to optimize its brand portfolio , Coca-Cola reduced its brand count from 400 to 200 master brands. This strategic decision was aimed at focusing on those brands that align with and support the company's growth objectives. By doing so, Coca-Cola has ensured that it invests in brands with the highest potential for growth and profitability, balancing global, regional, and local brands to cover all drinking occasions.

Managing Missteps With Grace

Coca-Cola’s ability to handle marketing and business errors gracefully, such as the New Coke debacle, shows a brand well-versed in crisis management and responsive public relations.

Lessons for Marketers

• Brand Identity is Essential: A strong, consistent brand identity is vital for long-term success. ‍
• Prioritize Product Quality : High product quality should always be a priority, supporting marketing efforts and building consumer trust. ‍
• Strategic Pricing is Key: Effective pricing strategies can significantly impact brand perception and customer loyalty. ‍
• Explore New Markets: Expanding into new markets can drive growth and help maintain relevance. ‍
• Responsive PR Matters: Managing public relations actively and effectively can mitigate potential damages and boost brand image. ‍

What Makes Coca-Cola’s Marketing Strategy So Successful? ‍

Coca-Cola’s enduring success is attributed to its ability to adapt to consumer needs, maintain a strong emotional connection with customers, and continuously innovate its marketing strategies .

Coca-Cola's success story is a playbook for marketers aiming to build a lasting brand that not only survives but thrives through changing times. By understanding and implementing these strategies, other brands can aim to replicate Coca-Cola's enduring appeal.

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Change management - A case study on Coca Cola Corporation The company has faced a lot of external changes, for example in world war II, the company was able to manage its existing position at that time and also entered in many new markets and discovered new niches (Coca Cola company, 2006-2011). The company also provided free drinks to soldiers which were the part of its strategy to become a patriotic symbol for the people of the country. Also it boosted the sales, so the company achieved two objectives by carefully planning to respond to that external environmental change. The plants developed by the company in war era helped its expansion after the war. Barton et al (2002) reported that Coca Cola Corporation adopted acquisition strategy in time of Asian financial crisis. The company acquired bottling, coffee and tea shop businesses in Korea and Malaysia. Beverage is a type of industry where tastes and preferences of the consumers change on continuous basis. Coca Cola Company also responded to such consumer changing behaviors in an effective way by developing new products like Diet Coke and Coca Cola Zero. The company also committed a marketing blender when a rival company launched a black beverage with comparatively sweet and smooth taste. The product was named as new Coke. But the sales gradually went down and company faced severe consumer critics and protests. The company managed this situation very commendably by restoring the old formula and naming the bottle as diet coke (Kotler and Armstrong, 2010). As people are becoming more health conscious and willing to invest on health based products, coca cola is developing juices and various energy drinks as well. This shows the company’s strategy to responding varying consumer tastes and expectations and changing itself according to it. The coco cola company used theory of organization change presented by Kotler (1996) which elaborated the procedure to manage change on the people dimension of the organization. In addition to making operational and strategic changes, the company also changed its advertising strategy by targeting various 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 brand and developed more product lines and broadened them globally (The Coca-Cola company case. n.d.). The present condition of Coca cola Company worldwide is very good. The company is selling its beverages throughout the world successfully. But in some countries, coca cola stores are not as according to the company’s main marketing, inventory and efficiency theme. The company is planning to align its performance standards according to its own corporate culture and strategies with the help of a comprehensive change management plan. These changes will be implemented within the business operations and management of the company.   Employee engagement The recent change management at coca cola is directed towards the intrinsic values and motivations of the employees and can be referred to as ’employee engagement’. The change management process, together with internal branding programs is expected to bring about ideal behaviors in employees, which would align the operations of coca cola worldwide, and bring about efficiency throughout coca cola across all its business segments. Coca cola hopes to bring about a thoroughly integrated system of communications, and focus on creating brand relationships with their employees. This would enhance the operations of Coca cola, as an integrated approach would mean all employees believe in engaging fully in the values, and this would become an inherent part of the employees at a personal level. Coca-cola is actively seeking to incorporate the change into its company for “building capability in engagement, maintaining engagement momentum and ensuring that engagement is integrated into CCR’s people practices” (Samdahl,2011). For this purpose, employee engagement surveys are conducted twice every year for all the coca cola associates, which serve to highlight the areas where action is required, and further actions and implementations can henceforth be executed. Coca-cola believes that their business results hinge on the dedication of their employees to operational excellence. The company truly recognizes the importance of the people to the business, and knows that to continue to bring about tremendous results it is bringing in, employees throughout the world should believe in the values intrinsically, and therefore the employee engagement is being focused on all the countries the company serves to align, thoroughly integrate and align the company so that operational efficiency can be achieved. Which model do Coca apply to change? Analyze it and compare to the theory that you studied. Do you suggest any other models, or any solutions for Coca?

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Change management - A case study on Coca Cola Corporation

The company has faced a lot of external changes, for example in world war ii, the company was able to manage its existing position at that time and also entered in many new markets and discovered new niches (coca cola company, 2006-2011). the company also provided free drinks to soldiers which were the part of its strategy to become a patriotic symbol for the people of the country. also it boosted the sales, so the company achieved two objectives by carefully planning to respond to that external environmental change. the plants developed by the company in war era helped its expansion after the war..

Barton et al (2002) reported that Coca Cola Corporation adopted acquisition strategy in time of Asian financial crisis. The company acquired bottling, coffee and tea shop businesses in Korea and Malaysia. Beverage is a type of industry where tastes and preferences of the consumers change on continuous basis. Coca Cola Company also responded to such consumer changing behaviors in an effective way by developing new products like Diet Coke and Coca Cola Zero. The company also committed a marketing blender when a rival company launched a black beverage with comparatively sweet and smooth taste. The product was named as new Coke. But the sales gradually went down and company faced severe consumer critics and protests. The company managed this situation very commendably by restoring the old formula and naming the bottle as diet coke (Kotler and Armstrong, 2010). As people are becoming more health conscious and willing to invest on health based products, coca cola is developing juices and various energy drinks as well. This shows the company’s strategy to responding varying consumer tastes and expectations and changing itself according to it.

The coco cola company used theory of organization change presented by Kotler (1996) which elaborated the procedure to manage change on the people dimension of the organization. In addition to making operational and strategic changes, the company also changed its advertising strategy by targeting various 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 brand and developed more product lines and broadened them globally (The Coca-Cola company case. n.d.).

The present condition of Coca cola Company worldwide is very good. The company is selling its beverages throughout the world successfully. But in some countries, coca cola stores are not as according to the company’s main marketing, inventory and efficiency theme. The company is planning to align its performance standards according to its own corporate culture and strategies with the help of a comprehensive change management plan. These changes will be implemented within the business operations and management of the company.

Employee engagement

The recent change management at coca cola is directed towards the intrinsic values and motivations of the employees and can be referred to as ’employee engagement’. The change management process, together with internal branding programs is expected to bring about ideal behaviors in employees, which would align the operations of coca cola worldwide, and bring about efficiency throughout coca cola across all its business segments.

Coca cola hopes to bring about a thoroughly integrated system of communications, and focus on creating brand relationships with their employees. This would enhance the operations of Coca cola, as an integrated approach would mean all employees believe in engaging fully in the values, and this would become an inherent part of the employees at a personal level. Coca-cola is actively seeking to incorporate the change into its company for “building capability in engagement, maintaining engagement momentum and ensuring that engagement is integrated into CCR’s people practices” (Samdahl,2011). For this purpose, employee engagement surveys are conducted twice every year for all the coca cola associates, which serve to highlight the areas where action is required, and further actions and implementations can henceforth be executed.

Coca-cola believes that their business results hinge on the dedication of their employees to operational excellence. The company truly recognizes the importance of the people to the business, and knows that to continue to bring about tremendous results it is bringing in, employees throughout the world should believe in the values intrinsically, and therefore the employee engagement is being focused on all the countries the company serves to align, thoroughly integrate and align the company so that operational efficiency can be achieved.

Which model do Coca apply to change? Analyze it and compare to the theory that you studied.

Do you suggest any other models, or any solutions for Coca?

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• Suppose you are employed by BTC as one of the senior managers. The company is goingthrough so many changes after the Government decided to commercialise it. You are one of thepeople spearheading the change process. You are required to answer the questions that followrelating to this task ahead of you. Explain the stages that you should incorporate in the change process to overcomeresistance to change. Conduct an industry analysis on the Performance Sport Apparel Industry, using the analysis tools below.  Then, use the results of your analyses to draw conclusions regarding the Opportunities and Threats that face firms in the industry.  Use as much space as necessary.  Remember, you are analyzing the industry, not a particular company in that industry. Please use bullet points. Driving Forces of Change (list and explain the effect of each on firms in the industry): “A lot of companies have chosen to downsize,and maybe that was the right thing for them.We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets”. Who said this?
• What are the challenges that businesses are facing to develop a positive image. You will focus on the necessity do something for the community (social and/or environmental) and propose an example of a crisis that highlights the need to develop more sustainable practices. The example will be about some a difficult relationship between the International Olympic Comitee (and a sponsor) and/or a clash with fans. Why is it necessary to change? Provide examples of companies that embrace change for the betterment of their business. What are the old ways, and what changes do they bring? Suppose you are employed by BTC as one of the senior managers. The company is goingthrough so many changes after the Government decided to commercialise it. You are one of thepeople spearheading the change process. You are required to answer the questions that followrelating to this task ahead of you.
• 6. Global economic pressures force organizations to become more change oriented. true /false Identifying Opportunities to Execute Change at Bank Leumi What are the advantages of incubating a new business or service line outside the mainstream of the core organization? What are the key challenges of integrating the new business or service line into the core organization? What actions could lead to a greater likelihood of success? Mini-Case: Taking CleanSoaps to the next level…… The bigger and stronger the competition is, the better an entrepreneur’s marketing strategy needs to be. That being the case, Sharon John and Jill Scott may need your help with a marketing strategy. Sharon and Jill have started a business which breaks into the $150 million laundry detergent market, competing directly with the likes of Procter & Gamble, P&G, an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United Stated formed in 1837 by William Procter and James Gamble. It is a Global manufacturing, distribution and marketing company focusing on providing branded products with superior quality and value. They started their business by making and selling only soaps & candles but then the company provided over 300 brands reaching consumers in about 140 countries. Since 2000 their sales had grown more than 40% & profit had more than doubled. They have acquired many products brands…
• Mini-Case: Taking CleanSoaps to the next level…… The bigger and stronger the competition is, the better an entrepreneur’s marketing strategy needs to be. That being the case, Sharon John and Jill Scott may need your help with a marketing strategy. Sharon and Jill have started a business which breaks into the $150 million laundry detergent market, competing directly with the likes of Procter & Gamble, P&G, an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United Stated formed in 1837 by William Procter and James Gamble. It is a Global manufacturing, distribution and marketing company focusing on providing branded products with superior quality and value. They started their business by making and selling only soaps & candles but then the company provided over 300 brands reaching consumers in about 140 countries. Since 2000 their sales had grown more than 40% & profit had more than doubled. They have acquired many products brands… Mini-Case: Taking CleanSoaps to the next level…… The bigger and stronger the competition is, the better an entrepreneur’s marketing strategy needs to be. That being the case, Sharon John and Jill Scott may need your help with a marketing strategy. Sharon and Jill have started a business which breaks into the $150 million laundry detergent market, competing directly with the likes of Procter & Gamble, P&G, an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United Stated formed in 1837 by William Procter and James Gamble. It is a Global manufacturing, distribution and marketing company focusing on providing branded products with superior quality and value. They started their business by making and selling only soaps & candles but then the company provided over 300 brands reaching consumers in about 140 countries. Since 2000 their sales had grown more than 40% & profit had more than doubled. They have acquired many products brands… Assume that you are the CEO of an organisation of South African Breweries. With the passage of time, the organisationhas seen a decrease in its overall performance, effectiveness, and competitiveness. Sales have plunged, market has beenlost and customers are unhappy with the organisation. In response to this situation, you and your executive team havedecided to pursue a turnaround strategy to return the organisation to it former competitiveness.   With this scenario in mind and using examples, discuss how you would ensure that the turnaround strategy is successful.

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Change Management in Coca Cola | Case Study

Published Date: 23 Mar 2015 Last Modified: 02 Jan 2018

Disclaimer: This essay has been written and submitted by students and is not an example of our work. Please click this link to view samples of our professional work witten by our professional essay writers . Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of EssayCompany.

According to a Greek philosopher Heraclitus "there is nothing permanent than change". He believed that change is the core of universe. This quote describes the importance of managing change in human as well as organizational life.

A structured approach to transfer organization, its people and processes from current state to a desired future state is called change management. This process gives employees the ability to accept changes in the existing environment of the business. Change can be of different type for example, change in technology, operations or strategies etc. company needs to implement individual strategies to cope with each type of change.

Organizations need to change and adopt dynamic survival strategies to stay alive in uncertain political, social and economic environment (Hiatt and Creasy, 2003). All environmental factors present in the nature experience change on continuous basis. Human nature resists change, so managing that resistance requires well planned change management strategies.

This report is aimed at describing the importance of change management for organization its motives and objectives, change management processes, how company can involve all the stakeholders for successful implantation of change management and the strategies that an organization can adopt to implement the successful change.

Reasons for adopting change

Organizations need change for the following reasons:

• To respond to the rapidly changing environment
• To improve the overall performance of the company
• To rapidly respond to the customers' demands
• To improve the effectiveness and efficiency
• To increase the employee performance
• To create the best practices inside the organization and setting standards for the industry
• To improve profitability and return on overall investment

Change management is needed for organizational survival. So the company should adopt to change management techniques in order to maintain its worth in the industry.

Importance of change management

In a study 327 project managers had responded to the question that "if you had a chance to do it again, what would you do differently?" Most of them responded that we will implement an effective change management program planned way before starting the project. This study highlights the importance of change management in an organizational perspective. Change management moderates the risks that can cause failure (Jeff and Creasey, 2003).

The change management process

Change management is being studied by the philosophers, researchers and business experts for many years. A number of change management theories, approaches and philosophies are developed by psychologists and management professionals to implement successful change in the organization (Paton and MacCalman, 2008). There are three phases of change management i.e. preparing for change, managing change and reinforcing change. Preparation for change phase includes assessment of change capabilities and capacity and developing a strategy that fit to those capabilities. Second phase i.e. "managing change" phase includes processes like planning and implementation of strategies made in the first phase. Last phase which is the reinforcement of change includes the processes like collection and analyzing of feedback data, finding out gaps and coping with determined degree of resistance from inside and outside the organization and taking corrective actions to successfully conclude the change management process (change management learning center, 1996-2011). According to "Lewin's 3 step model", change is "episodic" i.e. it can be easily planned into three stages:

• "Unfreezing

Managers at Coca Cola Company can motivate workforce in the "unfreezing" stage by informing them about the vitality of change being planned in context of organization benefits. Training to the staff members can make them more adept at accepting the transformational stage.

In the "changing phase" the company can initiate practical steps with regard to the strategic plan for change. It can be achieved by developing strong relationships and offering rewards.

"Refreezing" phase allows Coca Cola Corporation to make recently innovated change a part of their strategy so that workforce does not get back to the previously used operational methods of the organization (Robbins and Coulter, 2008).

Change management-----A case of Coca Cola Corporation

Coca Cola is a retailer, marketer and manufacturer of non-alcoholic drinks and is known worldwide for it coca cola beverage. In addition to its coca cola brand, Coca Cola Company offers 500 beverages and non beverages brands in about two hundred countries. The company was founded by Asa Candler in year 1892. It's headquarter is located in Atlanta, Georgia of United States of America. The company had total net income of approximately 11.8 billion US dollars in year 2010 with total number of employees 139,600 worldwide. Company's brand i.e. Coca Cola stands number one in the list of most well known brands of the world (Coca Cola company, 2006-2011).

Coca Cola is a type of company that requires making changes in its products and business strategies according to the consumer expectations and external environment. Here in this study we would quote different examples from coca cola corporation's history and will examine that what were the triggering events for opting the change and what strategies the company developed and implemented in order to successfully going through the transitioning process.

The need for change in an organization is often created by external and internal factors, where external ones encompass governmental laws, labor markets, market conditions, economin scenario etc. and internal factors are the workforce, resources, attitudes of workers and strategy adopted by the organization (Robbins and Coulter, 2008). Coca Cola Corporation is among one of the oldest corporations of the world. It has gone through many internal and external changes since it has been in existence. The company has used techniques of change management in order to survive from the consequences of those events.

The company has faced a lot of external changes, for example in world war II, the company was able to manage its existing position at that time and also entered in many new markets and discovered new niches (Coca Cola company, 2006-2011). The company also provided free drinks to soldiers which were the part of its strategy to become a patriotic symbol for the people of the country. Also it boosted the sales, so the company achieved two objectives by carefully planning to respond to that external environmental change. The plants developed by the company in war era helped its expansion after the war.

Barton et al (2002) reported that Coca Cola Corporation adopted acquisition strategy in time of Asian financial crisis. The company acquired bottling, coffee and tea shop businesses in Korea and Malaysia. Beverage is a type of industry where tastes and preferences of the consumers change on continuous basis. Coca Cola Company also responded to such consumer changing behaviors in an effective way by developing new products like Diet Coke and Coca Cola Zero. The company also committed a marketing blender when a rival company launched a black beverage with comparatively sweet and smooth taste. The product was named as new Coke. But the sales gradually went down and company faced severe consumer critics and protests. The company managed this situation very commendably by restoring the old formula and naming the bottle as diet coke (Kotler and Armstrong, 2010). As people are becoming more health conscious and willing to invest on health based products, coca cola is developing juices and various energy drinks as well. This shows the company's strategy to responding varying consumer tastes and expectations and changing itself according to it.

The coco cola company used theory of organization change presented by Kotler (1996) which elaborated the procedure to manage change on the people dimension of the organization. In addition to making operational and strategic changes, the company also changed its advertising strategy by targeting various 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 brand and developed more product lines and broadened them globally (The Coca-Cola company case. n.d.).

The present condition of Coca cola Company worldwide is very good. The company is selling its beverages throughout the world successfully. But in some countries, coca cola stores are not as according to the company's main marketing, inventory and efficiency theme. The company is planning to align its performance standards according to its own corporate culture and strategies with the help of a comprehensive change management plan. These changes will be implemented within the business operations and management of the company.

Change Management at Coca Cola

Organizational change might be referred to as any change brought about in structure technology or people of an organization. Change in structure is maintaining the span of control, specifying different work roles, redesigning job scenarios etc. Change in technology could be an introduction to new innovative methods for improving the product's quality launched by the organization. While change in people is to bring about alterations in the way people think and act. It means to modify their behavior towards the betterment of organization (Robbins and Coulter, 2008, p.364).

Employee engagement

The recent change management at coca cola is directed towards the intrinsic values and motivations of the employees and can be referred to as 'employee engagement'. The change management process, together with internal branding programs is expected to bring about ideal behaviors in employees, which would align the operations of coca cola worldwide, and bring about efficiency throughout coca cola across all its business segments.

Coca cola hopes to bring about a thoroughly integrated system of communications, and focus on creating brand relationships with their employees. This would enhance the operations of Coca cola, as an integrated approach would mean all employees believe in engaging fully in the values, and this would become an inherent part of the employees at a personal level. Coca-cola is actively seeking to incorporate the change into its company for "building capability in engagement, maintaining engagement momentum and ensuring that engagement is integrated into CCR's people practices" (Samdahl,2011). For this purpose, employee engagement surveys are conducted twice every year for all the coca cola associates, which serve to highlight the areas where action is required, and further actions and implementations can henceforth be executed.

Coca-cola believes that their business results hinge on the dedication of their employees to operational excellence. The company truly recognizes the importance of the people to the business, and knows that to continue to bring about tremendous results it is bringing in, employees throughout the world should believe in the values intrinsically, and therefore the employee engagement is being focused on all the countries the company serves to align, thoroughly integrate and align the company so that operational efficiency can be achieved.

Importance of change to coca cola

Employee engagement is very significant to all segments of operations at coca-cola and has translated into performance in areas where employee engagement is higher.

For coca-cola, an engaged workforce means:

A more committed workforce

Employee performance aligned with organizational objectives

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

Customer experience focuses an inherent part of employees' values, who strives to provide a better experience to the customers. Customer focus was identified as a central tenant of the multi-year engagement strategy to be implemented in 2011(Gee,2011)

When employees are aligned with company goals, they themselves adopt a proactive approach towards issues such as waste elimination

Employees awareness gives them a voice which helps to influence legislations at local levels

An integrated system of communication is very helpful in the volatile and dynamic markets of today, where conditions change very often and the company has to be responsive at all times

Therefore, for all the business segment of coca-cola wherever they are located across the world, the change towards employee engagement is justified if they have to reap the fruits gained by an effective system of integration.

Ensuring the Involvement of Required Stakeholders

Coca Cola Company can use two change management tools to make sure that all people who are required to be the part of change management process. These tools are Force Field analysis and AKADAR model. Force field analysis is a technique developed by Kurt Lewin to scrutinize the forces that are causing an opposition to change process (Bass, 2009). By doing Force Field Analysis, Coca Cola Company will be able to induct people who are in need of appropriate training. Another useful tool is AKADAR model which stands for Awareness, Desire, Knowledge, Ability and Reinforcement. Through AKDAR model, firm creates awareness about the need of change, generate desire in the people to help in transitioning process, give knowledge to the people that how they can help the change process, develop an ability in the people to go through the change and provide them with continuous reinforcement to withstand the change (CMLR, 2011).

Ensuring that change is successful

Some considerations that will facilitate the change management process include:

productive and consequential dialogues and talks with employee representatives

Online and paper surveys from all the stakeholders involved in the 'change' throughout the world, and with associates to gain an insight on their perceptions

Effective communication at this stage for informing the stakeholders the reasons for change and the benefits it would bring

Overcoming the 'inertia' by taking all stakeholders in confidence. The surveys can serve as a pre requisite to gain an insight on the stakeholder perspective

Details of the action planning process communicated to all those who would initiate the change

Recommendations for Coca Cola Company

In the volatile dynamics with which companies operate today, change is inevitable. Therefore, the focus should not be on avoiding change, rather bringing about a smooth transition towards the new change by communicating about the change, and ensuring all parties of the change that it is for the best of all those involved. To successfully implement organizational change of any nature, a specific regards to organizational structure, design, culture, management and leadership is required to see whether the change would make a best fit with the organizational goals and objectives.

First of all the company should ascertain the core problems exist in the company for the change management. The company may develop a change management program for responding to financially uncertain environment of the world. It can also develop change management programs for better operations and logistics. The company can introduce new procedures and technological systems to carry out operations. Programs can be introduced in forms changing company's mission and corporate culture enhancements. For all that, the most essential thing is to train upper management to provide them with specific skills necessary to effectively going through the transitioning process. Following is the brief expression of plans that the company can adopt.

Systems thinking

Systems thinking can be used to guide the successful change in the organization. The model is based on an integrative and interactive open system which consists of the variables, attributes, internal relations and environment. The system is based on characteristics like wholeness, interdependence, chain of influence, need for balance and adaptability etc in an open system where communication is seen as an integrated process that facilitates change within the organization.

Several system characteristics are: wholeness and interdependence (the whole is more than the sum of all parts), correlations, perceiving causes, chain of influence, hierarchy, supra-systems and subsystems, self-regulation and control, goal-oriented interchange with the environment, inputs/outputs, the need for balance/homeostasis, change and adaptability (morphogenesis) and equifinality: there are various ways to achieve goals. Different types of networks are: line, commune, hierarchy and dictator networks. Communication in this perspective can be seen as an integrated process - not as an isolated event.

Establishing new structure

It is a well known fact that Coca Cola Corporation was an entrepreneurial venture started by one person who bought the formula from another firm and laid foundations of that beverages manufacturing firm. Current structure of the coca cola company is simple with minimal labor and management division. New system that can be adopted by the company may be the "machine bureaucracy" which Henry Mintzberg (1992) defined as an organization with clearly defined hierarchy, well defined area of operations, standard operating procedures, proper rules and regulations, well division of labor, formal relationships among the member of organization, centralized decision making, technical competence and standardization of work.

Reducing employee defiance

Opposition of change is a common human behavior. Particularly, in the workplace people resist the change in organizational culture, structure and policies. But in order to successfully and effectively implement the change management program, it is important for Coca Cola Company that it should develop strategies to reduce employee defiance to change. Kotter and Schlesinger (1979) explained six strategies which can be useful for coca cola Company in employee defiance management.

First strategy is to involve the employee in change process and make them participate as far as they can.

Second strategy is to communicate the change management programs to the people effectively to educate them about the benefits the programs would bring. This will make them comfortable in adopting the change.

Third strategy is negotiation and agreement. The company should create a consensus on important change issues and with the agreement of all important stakeholders; it should launch the change management program. The resistance level will be zero on change programs that are being launched with the mutual agreement of all relevant stakeholders.

Fourth strategy is that to support the employees who are due to some disability or emotional or psychological issue or some other threat unable to adapt to the change. If the company develops proper channel for such people, they would adjust gradually to the change management program.

In case of failure of above mentioned four strategies, company can manipulate the employees by calling union leader other than relevant ones as fifth strategy.

Sixth strategy is to force the employees with articulate or non-articulate methods but this is not a very good approach.

To conclude, it may be said that communication can be a key element to successful change management. Communicate the changes to the employees; tell them why the change was inevitable and how they will benefit from the change. The management should itself adopt a positive attitude towards the change so that employees can follow their lead and welcome the change. Coca-cola as a company has a heritage of embracing change rather than resist it and it should translate into their future endeavors towards change management to ensure that the organization is best poised to market under all sorts of environmental conditions.

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