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Organisation’s Management of Innovation and Change

Executive Summary


Coca Cola Company has been the renowned trade mark, as it manages over 400 brands that attract thousands of consumers throughout the globe. Coca Cola products catch attention of a wide range of customers due its innovation. Due to it worldwide popularity, its goods are purchased in 200 counties. Coca Cola has more active to create product and brand differentiation than its competitors. The innovation and the change management in the company involves positioning, promotional techniques, implementation plan, corporate structure, strategies and the product service innovation. The change and innovation management have been proved beneficial regarding Coca Cola as it enables the structure and potential drivers of the company. Coca Cola Company is well known worldwide and its innovational strategies surpass all other beverage industries. This company has been flourishing over the years; it is still progressing and would continue to grow due to its techniques and perspectives. These objectives of Coca Cola place it to a higher position than the competitors. buy custom  assignment writing service

1 Introduction


Coca-Cola is one of the leading international manufacturer and supplier of beverage and softdrinks. Its headquarter is located in Atlanta and the products and services of Coca Company include Fanta, Coca-Cola, Powerade, vitaminwater, Minute Maid, Georgia, Coca-Cola Zero, Diet Coke, Simply, Coca-Cola Zero and Sprite (Kant et al. 2008). The mission of Coca Cola Company is to refresh the globe, to create a difference, to define values and to express pleasure and optimism. Its vision involves the quality beverage brands, meet the consumer’s needs, quality growth, better environment for its employers, forming an authentic network of consumers and partners, to be a responsible company by aiding the sustainable communities, enhancing responsibilities and modifying the productivity criteria. Pepsico Company and Nestle Company are the leading competitors of Coca Cola (Pendergrast& Mark. 2013).

Coca Cola Company’s beverages are consumed at a ratio of 1.6 billion servings per day by the customers in more than 200 countries. The objective of Coca Cola Company involves staying responsive to innovation, work and progress efficiently, to accept the change as per the requirements, act with courage and urgency, work for progress and for attaining a higher contentment level. The Company has progressed by following these objectives, mission and values with respect to the organisation’s innovation and change management (Kant et al. 2008).

There have been several drivers for innovation and change within Coca Cola Company. For instance, the fairness and equity investment in Monster Beverage Corporation has been a remarkable manner to boost their abilities of fast development and progress. Though the bottled water business of Coca Cola Company faced an environmental impact as well, but this Company is still the world biggest beverage supplier. Lastly the Coca Cola Company had to face the lower consumption and lesser marketing of the carbonated beverages due to its its competitor the PepsiCo Company but it managed to cope up this by enhancing the company to progress and branch out into different juices, sports drinks and bottled water in various packaging.

2 Innovation within Organisation


Innovation refers to the implementation of a new organisation method in an organisation’s practice with the aim to optimize the business operational process and increase the profitability (Mayer et al. 2008). Analysing the concept of innovation within Coca Cola company, it is been found that the Company makes use of the product innovation approach in order to meet the requirements and desires of the consumers. Since the customers’ desires and demands have been continuously changing throughout the market, the Company has developed brand perspectives, priorities, attractive objectives and distinct categories. The Coca Cola Company drives the innovation management by constantly constructing the tough brands family and enhancing new flavours and different packing styles in peculiar markets (Armus& Seth. 2005).

The innovation and change process of Coca Cola Company involves the initiation of accessible brands in new markets and re-instigating and re-stimulating the already existing brands where necessary. For example, Coca-Cola has biodegradable beverage instruments that are developed of ice that essentially dissolve after utilisation and smart equipments that mix, blend and obtain flavours. Furthermore, the company had initiated Coca-Cola Zero in 2008 that had no calories but it had great flavours. 

Recently, the Company has re-devised Nestea, Fanta and Sprite so they now compose of approximately 30% lesser calories, this has appeared as an ongoing method to allow the customers to manage and maintain the sugar level as per their needs. The average calories of the Coca Cola beverages include 31Kcal/100ml which exhibits a decrease of approximately 16%. This promotes and enhances the healthy lifestyles of the consumers due to its product innovation. The Company has also made use of the product innovation in the utilization of natural sweeteners namely Stevia that has zero calories which was plant-based extract and progressed Stevia with Sprite in Switzerland in 2012.

According to SL Adeyemi and AO Salami (2010), the Coca Cola Company has struggled to set the objective of decreasing the packaging utilised by 25% with respect to the beverage by the end of 2012 and a huge range of incentives were pursued to obtain this in a sustainable approach. The Company has also made efforts with partners to enhance the recycled material of packages as utilising recycled rather than the new material which decreases the carbon footprint of the packages.

3 Innovation Process


According to Luthans and Doh (2009), the Coca Cola has been trailing shares to Pepsi in 1980s in the North American market and it appeared as a concerned entity regarding the“Pepsi Challenge” where the customers used to sip minute cups of Pepsi with a great flavour. By depending on the focus group strategies and by utilising the blind taste approach, the company came up with“New Coke” which was also known as “Coke II.” This was quite sugary as compared to the original Coca Cola and to some extent its flavour was similar to Pepsi. In 1985, when New Coke was introduced in the North American market, the consumer’s remarks were controversial because they had not liked the change in the taste. 

Coca Cola did an advertising mistake which curved in the aggressive ratio of their products and they had to face the competitive encounters with different other beverage companies. Coca Cola’s blind tests strategy was backfired quite inadequately and consumers began to the name New Coke. This innovation process made use of around $ 4 billion and it emerged as a flaw of the company’s management.

According to L Gill (2009), after the terrible consequences, the Company made use of its original formula and reinitiated it as Coca Cola Classic in the North American market, but this turned out as a mistake as well because the formula was quite old. Corporations normally learn from their past and this urges them to create a learning environment in order to tackle the external and internal hindrances by making use of the organisation’s management of innovation and change.

Lastly, the Coca Cola Company productively brought together a very abundant tentative attitude with strategic implementations that allowed them to be accountable to the innovative market and different concerns while staying connected to their mission. Every product of the company not only made use of the strong brand equity but also returns to it. The innovative process of the Coca Cola Company also develops a powerful brand experience that cannot be neglected by the consumers which is quite mesmerising and immediately recognisable as Coke.

3.1 Analysis of Innovation Strategy and its Approach


According to Kent and Ignatius (2011), numerous factors are associated with Coca Cola and different innovative strategic planning make this company more competitive in the beverage sector. The leading feature is the character of the creation of an entrenched mission and vision; because of these, the Company can easily make innovation strategies by the management due to the association with the mission and vision of Coca Cola Company. The objectives and values of the company are planned so efficiently that they are obtained within the predetermined goal in such a manner that the company obtains success and higher marketing outcomes in the entire world

The innovation strategies of Coca Cola are dependent on the influential decision makers and their change approaches are fixed and up to the mark due to the fact that this company is receptive within and on the outside (Matsushita et al. 2008). The partnership of all the stakeholders that are interior and exterior develops a massive blend for Coca Cola and this makes the company with the highest stage of brand equity. The overall business strategy of the Coca Cola Company goes around the situations that they should restore the world in different perspectives. 

3.2 Competitors and the Approaches


Pepsi is one of the leading competitor of Coca Cola and the struggle between these is known as the'Cola Wars'. The existing situation has been very complex for both brands because Pepsi needs a sustainable innovative plan in order to attack the Coke (Donnelly& Brian. 2009). The innovative strategies of Pepsi and Coke regarding the target market and initiation of a market mix are very much similar due to the fact that they both have been striving to obtain the market share. Coke captures the whole world while Pepsi’s market share is higher in Asia. Since the rivalry has been appearing as vibrant, massive and dynamic with the passage of time and this has made so difficult to determine the other competitors and identify them.
 

3.3 Implement Innovation within Organisation


Coca Cola has recently taken a remarkable incentive towards developing a powerful system in its market by the conception of a new National Product Supply System (“NPSS”) in the United States (Prakash 2008). The mission and objectives of the NPSS involve the prioritise innovation, allowing system investment and obtaining the lowest best manufactured values.

3.4 Share-a Coke


Share-a Coke has been a fundamental project which was relevant to the innovative strategy taken by the Coca Cola Company. It was based on its objective to reinforce the brand’s attachment with youthful adults and the essential goal was to encourage shared instants of pleasure in the actual and virtual worlds. This was the innovative tactic of the product which celebrated and distinguished the influence of the name’s initial in a lighthearted and public manner which was really creative and innovative. In the beginning, the initiative was visualised with the person's name written in the conventional“Coca-Cola” Spencerian script. But that could not be done because of the trademark concerns and complications so the Coca Cola Company developed an innovative typeface which was stimulated by the“Coke” logo. They called it the“You” that was about the customer rather than the Coca Cola (Roberts& Ian. 2008).
 

4 Innovation Management

4.1 Organisational Structure


The organisational structure in Coca Cola is managed with the help of an upright hierarchy with decision-taking abilities associated with the company’s innovation management. Regular based decisions are developed at the middle by the line managers. Coca Cola has approximately 700,000 organisation recruits, involving their bottling partners. The operations and functions of the company extend over 200 countries accompanied with six geographic segments. The head office of Coca Cola Company provides the company with the outlook and direction to the regional framework (Hu, Fu-Ling& Chuang 2009).

Organisational structure encourages an ethos of creativity and innovation in such a way because every division of Company has an individual market manager, finance director and public affairs director. The strategic decisions of the Company are made by the Executive Committee who manages the board meetings as well and this Executive Committee is also the CEO (Hayashi et al. 2008).When any of the divisions is scheduling to accomplish anything, for instance in case of the advertising campaign then the division has to correspond with their higher authority to obtain endorsement. As the company’s hierarchy is so giant, interaction has to be managed by the headquarters in the U.S, where the final decisions are made by the Executive Committee for different activities.

4.2 Leadership Style


There can be no alternative for the innovative strategic thinking except the effective leadership in the Coca Cola Company (Sicilia, Maria& Palazón 2008). There can be no substitute for appealing and preserving the reliable people except by creating an energetic environment for them and by interacting with the consumers in an effective manner. Coca Cola Company obtains this a by developing a confined and clear vision, making their approaches Coca-Cola achieves this by formulating a clear and compelling vision, getting their system allied behind it, implementing and continually interacting intentions (Ladas et al. 2013)

Leadership style motivates the notion of creativity and innovation by keeping and creating new opportunities which demand both vision and implementation throughout all the branches of the Company and through its amazing approach of the bottling partners. From this point-of view, the company’s leadership style has a compelling vision. Coca Cola Company has developed a convincing approach for their company through the help of its leaders. The leadership skills and capabilities inspire and impress their employers to obtain the vision of the company.
 

4.3 Cultural Aspect


According to B Ghosh (2010), different cultures compose and make up any organisation and this is related to the organizational structure and the leadership style. There have been various types of cultures involving Role culture, Person culture, Task culture and power culture. The Coca Cola Company has implemented the role culture because it greatly go with the hierarchy organizational structure of the company. This kind of culture performs great by every worker who is performing the character that he has been programmed. He has to response and corresponds with the regulations of the Coca Cola Company.

In the Coca Cola Company, all the employers have an authentic and a distinct job to conduct as per their roles. Role culture has been distributed and split up into several operations in the company. Coke has segregated themselves into different operations including marketing, production and finance. Furthermore, this also continues in the hierarchical ordering which exists in the office and this kind of culture acts by reasons, logics and wisdom. Coke makes use of regulations and methods as the chief cause of influence and it utilises position for the major origin of power.

4.4 Values


The values of the Coca Cola Company appear as an essential tool for bringing innovation and creativity within the organisation. Its values aid the company and serve as the tool for its adequate actions and elaborate how it acts in the world. Since the values of the company are comprised of quality, diversity, passion, integrity, leadership, collaboration and accountability. Most importantly, the company struggles to be authentic and passionate about their future and different aspects. The company has the motive of wide-ranging and comprehensive abilities; on the other hand it has the collaboration of intellectual minds (Choi, K.& Curhan 2008).

Furthermore, the feature of diversity and the leadership characteristics aid in reshaping the future to a greater extent. The Coca Cola Company is responsible for the steps, innovative strategies and the decisions they make. These values help in building the structure of the company by creativity and managing the quality as well. The work effectively according to the needs and requirements of innovations within the company as well as they behave as per the necessity of the company. They have the potential and tendency to accept change whenever it is required in the company, on the other hand they look forward to get better by hardworking abilities and stay open to change (Karnani& Aneel. 2014).

According to W Sohn, BA Burt and MR Sowers (2006), the Coca Cola Company pays attention to the requirements and needs of its customers and its partners and has the potential to see the world from a different perspective. They get out and visit the target market of the company, they make sure to observe and determine the essential point-of views of the people. They concentrate in implementing their strategies and tactics in the target market as per the needs which aid in bringing innovation and creativity. They are curious to know about the demands and they behave as per the trends of the market.

Moreover, the Coca Cola Company is responsible for its own decisions and strategies. They learn from their past mistakes and blunders in such a way that they determine what could be progressive or not (Taylor et al. 2011). They take notice on the building framework and focus on the steward system. They take incentives for their employers who determine essential ways to solve different hindrances and they reward their workers for innovative adaptations. They progress by optimism and by being passionate for the progress of the company. They have emerged as the brand, which motivates creativity and innovations in the best possible way.
 

 

5 Conclusion and Recommendations

5.1 Effectiveness of Innovation Management


According to J Barsh (2008), there are various internal and external factors that influence the innovative management within any organisation and Coca Cola is greatly listed in such organisations. Above million times per day, consumers throughout the globe purchase Coca-Cola products for relaxation. The Coca Cola Company is considered as the best-selling soft drink throughout the globe and they cover around 398 million consumers while they hire around 72,000 workers who manage 463 facilities, 54,000 transport vehicles and around 2.4 million retailing equipments, beverage machine and coolers.

Since new trends and change are always found in the market, an organisation should be in the form to handle the customers’ desires because they may get irritated and usually intend to have innovative products. For fulfilling the demands of the customers, an organistaion must bring in innovative strategies and facilities. For the same purpose of meeting the desires of the consumers, the Coca Cola Company developed“C2” that is less carbonated drink. This was developed as a reaction for the desires of customers to have low carbonated diets.

The Coca Cola Company knows the effective of innovative management in their company due to which they keep on striving to develop various products. They introduced“Coca Cola Zero” for the same purpose which is a literally zero calorie soft drink (Smith et al. 2012). On the other hand, they already have lime, Cherry, Vanilla and Lemon associated with Coke and they have taken incentives to bring Raspberry as a new flavour. They have also made use of Splenda (a sugar substitute) in their Diet Coke which is quite applicable and suitable for diabetes patients.

According to PJ Thorburn, AJ Webster, IM Biggs and JS Biggs (2007), there was an online campaign before the 200 Olympics in which the Coke had appeared as a bad influence on environment and this utilised the E-card for the Cokespotlight campaign. This forced Coke to purchase green refrigeration and this was a joint Greenpeace/Adbusters impact. This campaign productively altered Coke’s strategies on climate-killing influence. The Coca Cola Company publicized phase out innovative plans for devastating refrigeration equipments by the occasion of the 2004 Olympics.

The Coca Cola Company initiated approximately 6350 ecological friendly coolers, different equipments and vending machines in 2008 in six co-host cities and in the Olympic Games venues in Beijing. This perspective of merging natural refrigerants and energy competent expertise by the Coca Cola Company exhibited that how innovative management can be effective for any organisation and this converted a challenge into a greater prospect. Approximately 40 million dollars was spent regarding the HFC-free machines to the research and more amounts are frequently utilised in creating green technologies and machine nowadays. The Coca Cola Company is also engaged in the welfare and health industry in“The Beverage Institute for Health and Wellness” with the help of adequate investments.

5.2 Recommendations
1. The Coca Cola Company needs to develop methods to manage different kind of any innovation measures. They need to develop, determine and learn that what are they struggling to do and they should come up with innovative and different concepts and they are required to initiate the seed of any measures into something that could be beneficial. The company should determine their criteria of success and achievement and then they need to work as per the suitable design (Mayer et al. 2008). 

2. The Coca Cola Company should develop framework to access and aid the top global capabilities. They need to attract the partners and the consumers, for this purpose they need to involve the best people that would focus on the financial concerns. Good leadership approaches and straightforward processes can act as the fundamental tool for the innovative management. 

3. The Coca Cola Company should create a share in the value developed, this can be attained by running the company effectively by the organisation’s management of innovation and change (Soosay, A.& Sloan 2005). The Coca Cola Company should negotiate innovative ideas which should be dependent on various objectives and power measures. The Coca Cola Company should be open and should remain authentic throughout the innovation processes.