Lee, Bryan
Management 5
Dr. Grace McLaughlin
Fall 2004
Case Analysis - “The Coca-Cola Company: Coke Gets Back to Business”
Review Questions
1. Apply Henry Fayol’s five rules of management to the Coca-Cola case.
In the area of foresight, Daft has designed a plan to make the company leaner
and more entrepreneurial. His goal is to position Coca-Cola for growth in this
way. He has designed his plan to organize, command, coordinate, and control
management and the company in such a way as to achieve this goal. In
organizing his company, Daft has relied on customizing bottling and
distribution in various countries to fit the needs of each one. Further more, in
commanding Coca-Cola’s company, he has reorganized his management and
done away with much of the middle management that was the fat around CocaCola’s waist. He has led, selected, and evaluated workers efficiency to achieve
a “leaner, more entrepreneurial organization.” Daft has also coordinated efforts
by structuring management to deal with regional differences and diversity
through his various presidents and vice-presidents, while at the same time
having information move quicker through a smaller management system in
order to achieve his ultimate goal. Finally, he has controlled his organization by
taking necessary steps to achieve his goal, which he did by firing middle
management.
2. Consider the following quote from Coca-Cola’s statement on diversity: “We
embrace our commitment to diversity in all its forms at The Coca-Cola Company
as a core value. Diversity—of race, gender, sexual orientation, ideas, ways of
living, cultures, and business practices—provides the creativity and innovation
essential to our economic well-being. Equally important is a highly motivated,
healthy, and productive workforce that achieves business success through superior
execution and superb customer satisfaction.” Relate this quote to the case and to
the behavioral approaches to management.
Diversity is indeed important to Coca-Cola, as their customized bottling and
distribution system shows us. This statement shows us that they believe
diversity is also an important asset to their company that will provide
productivity and growth. This can mean that they believe in Theory Y, which
means they believe people are inherently good and will be as productive as they
can possibly be. They also seem to understand the theory of human needs in
order to be productive. Saying that a “healthy” workforce can achieve greater
productivity shows that they want to meet the needs of their workforce, so that
they can be more productive. Also, saying that a “highly motivated” workforce
is also productive shows that they believe in the Hawthorne studies, which state
that the more attention an employee has the more productive they are. In order
to motivate an employee, you need to pay attention to them.
3. How does Coca-Cola score on the eight attributes of performance excellence?
I believe Coca-Cola scores highly on the eight attributes of performance
excellence. Daft has effectively made his decisions and carried them out. His
customized management, bottling, and distribution system ensures that he is
close to his customers. He also supports innovation and change through his
launches of Vanilla Coke, Diet Vanilla Coke, and Diet Coke with lemon. He
also sees value in human resources, which is shown in the previous question’s
statement. He seems to have cut the fat at Coca-Cola to achieve productivity,
which shows he has a clear sense of organizational purpose. He has also
focused on what Coca-Cola does best, which is innovation through it’s new
products and customization to consumer needs with its unique management
style and bottling and distribution systems. He has minimized the management
levels and staff personnel through his downsizing of middle management.
Finally, he has been flexible while staying in control by innovating, but not to
an extreme level and also by being close enough to his management to deal with
problems that might arise.
4. Do you think Douglas Daft will be successful in regaining the growth and value
experienced under Roberto Goizueta?
I think that, with enough effort and careful management, Douglas Daft will be
able to achieve growth and gain value, but I do not think he will experience the
level that Roberto Goizueta enjoyed. The fact is that Coca-Cola may have
reached a peak to growth and value. They are already on the global market and
expansion into new areas is limited, while in Goizueta’s time there were many
more new markets they could expand into.