Drivers of Change & Organisational Impact - Case Study

Understanding the Dynamics of Change Management in Coca Cola

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Introduction of Drivers of Change and Organisational Impact

Managing the change is a challenging task for the businesses. There are different factors which develop the need for change in the organisation. In this report the impact of change and it's management will be discussed in the context of the case company. For this report the case study of Coca Cola is being considered in which the company is making multiple changes in the firm. Coca Cola is an international company which is having effective market presence across the world and is having global reach. The company is offering wide range of beverages to the customers across the world. Due to changing business environment and on-going development the case company has undergone through different changes in the history as stated in the case study (Cameron and Green, 2019). Also the impact of different changes on the organisation will be discussed. Along with this the different recommendations minimising the effect of change with better planning will be suggested.

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Overview of organisation case study

Coca cola is one of the famous companies which are manufacturing and selling soft drinks. As the business environment is evolving Coca cola has undergone through major changes in terms of their product range, internal structure, processes and a lot more. With time due to the different drives of change such as market, legislation and the competition in the industry the company has undergone through multiple changes (Tien et. al. 2019). The case study of Coca Cola has explained that how the company has undergone through multiple changes related to different factors. Also the case study has highlighted that how the company had managed the different changes and has incorporated it in the company strategies and operations.

Logo of Coca Cola

Figure 1: Logo of Coca Cola

(Source: Vecteezy, 2022)

PEST/SWOT Analysis of Coca Cola for identifying drives of change

In the fast changing business environment there are different factors which create the need for the businesses to make changes in their firm. The companies need to understand the difference drives of change associated with the internal and external business environment. For this effective models are required to be used by the firm for understanding the factors which are developing the need to make the change in a successful manner. Pestle and swot analysis are the effective models which are used by the businesses for identifying the drives of change which are motivating the firm to make changes (Grgi?, 2020). Coca-Cola has faced different challenges in the market and has undergone through multiple changes related to the product, operations and internal processes for managing the firm successfully. The different drives of change for Coca-Cola are well explained by using the Pestle and swot analysis in the reference to the case study of the company.

Pestle analysis of Coca Cola

Figure 2: Pestle analysis of Coca Cola

(Source: Cuofano, 2022)

Pest Analysis of Coca-Cola

  • The changing market conditions and the political factors also develop the need for change.
  • The legal factors related to the rules and regulations of healthy lifestyle have affected Coca-Cola. In this reference the company has to make changes in the firm.
  • With the changing technologies in the industry the company has to adopt the new technology for making their operation management effective.
  • With the change customer taste, preferences and social factors also the company has to undergo through major changes related to the products (Zhang, 2019).

Swot Analysis of Coca-Cola

  • The increasing rivalry in the industry is one of the important threat for Coca-Cola.
  • The fast changing market and customer preferences are creating new opportunities for the company.
  • Wider customer range and similar product offering is an weakness for the company.
  • Having effective market position and effective strategies are an important strength for the firm.

Drives and impacts of change on organisational strategy

There are different factors related to the market which develops a need for the company to make changes in their operations, structure, products, etc. Like this only the case company has also undergone through multiple changes due to the different drives of changes related to the business environment. As Coca Cola is facing tough competition from the major players such as Pepsi, etc. As both the companies are having similar product range there is a need to make changes in the product for gaining competitive advantage over others. For this only the Coca cola has focused on making multiple changes in their product ranges and has focused over rebranding for maintaining market position.

As the customer demands and market trends are changing the company needs to ensure that they are making changes in the firm for satisfying the customers. The fast changing technologies is also a most important drive for change which is motivating the company to make changes in their business processes (Singaram et. al. 2019). When all these factors are affecting the company then the case company has focused on multiple strategies to take advantage of the changing industry situation for gaining competitive advantage over others. In this context the case study has stated that different changes are being made for maintaining their position and moving towards the long term goals of the company.

As a result of the different drives of change the case company has focused on making use of better strategies. The company has focused on making use of rebranding themselves for gaining competitive advantage over others.  In support to this the company has paid attention over making regular improvement in the quality. As per the case the company has made different changes in their Sprite for rebranding and gaining advantage over others. The changing rules and regulations are also an impact factor which has driven the changes in Coca cola. As stated in the report in 2005 as the concern for the health is increasing and the government is concerned for the health of the population the customer preferences started changing. In this condition the Coca Cola has focused on taking an advance of the situation and has launched the Diet Coke and the Coca-Cola Zero (Bekimbetova et. al. 2021). These products of the company are having less risk to the health of the human and fitness. This is one of the best moves made by the company as they have reacted well to the changing market conditions and customer preference.

Comparing the impacts of change and their effect on organisation’s strategy and operations

Whenever the company undergoes through any of the change in the firm then it affects the company to a greater extent. As discussed in the case study there are multiple changes made by the company. All these changes has affected the company to a greater extent in terms of the organisational strategy and operations. For an instance when the company has made the changes related to the products such as Sprite and introducing the new brand then it has affected the company operations to a greater extent. The manufacturing process of the products are being changes due to the concept of Diet coke. All this has affected the company in number of terms as it has made changes in the total cost of the coke manufacturing and different areas as well. 

In comparison to this when the company has made the changes related to the quality of Sprite for rebranding then the manufacturer operations are not changes to a greater extent. But it is important to understand that when the companies undergoes through the large scale changes which includes changes in their core product range then it affect both the organisational strategy and operations to a greater extent. When the company is making changes related to their products, operations, etc then the organisation also need to ensure that everyone should support the changes in the firm. For this the company need to make changes in their human resource management changes for motivating the employees to accept the changes.

For understanding this in better way let us consider the example of Amazon. One of the top most e-commerce company of today's business world is once an small scale online book selling company. As the company has undergone through the changes the entire strategy of the firm to work and to manage the Ecommerce businesses operations has affected the company in number of ways. It is important to understand that whenever the company undergone through the changes related to the product then the different strategies such pricing, marketing, promotions, manufacturing all are being highly affected. Along with this the way the company is managing the different operations are also affected.

Impact of change on leadership, individuals and team behaviour

When the change is being made in the firm then it is important to implement and accept the change in an appropriate manner for making at successful. Here the organisational culture of the firm is having a major role to play (Holten et. al. 2019). If the organisational culture of the firm is collaborative and the decision related to the change are being made with better collaborative efforts of all the important stakeholders.

The leader of the company is having a crucial role to play when it comes to change management. The leader needs to make effective decisions and should implement better leadership for encouraging better change management (Harmon, 2019). The major impact of change on leadership is that the leader has to work with the other managers and the employees for ensuring that the change is well incorporated in the day to day business operations. For this leader also need to make use of effective change management strategy and making better efforts to support the changes in the firm.

It is important for the firms to understand that how the teams and the individuals are responding towards the change. For managing the behaviour of the team and the individuals related to the change the case company had applied effective strategy. While undergoing through the change Coca-Cola tests the changes and allows the employees to understand the difference between the new systems and the previous once so that they can understand the difference (Ilesanmi and Odewale, 2020). This helps them a lot in motivating the entire teams and the individual to accept the change and work accordingly. This is important because in case if the employees are not happy with the change then it can led to staff resistance towards the change then the expected positive outcomes are not received even by making effective changes in the firm.

Evaluation of how impact was minimised and models used to plan and process change efficiently

There are different factors related to the change process which can create a risk for the change management. The companies need to make use of better strategies and practices for minimising the factors which can affect change management adversely. The different factors such as staff resistance towards the new change, organisational culture and changes related to global market and wider customer base can affect the company's change management process (Stouten et. al. 2018). For this is necessary to make sure that the change is being made by considering it's impact on all the important stakeholders such as employees, customers, etc.

For making a change successful in the company it is important to make sure that the change is well implemented in the organisation. As per the case study Coca-Cola has focused on making use of better strategies and effective planning while making the changes. For an instance when the company has started facing higher level of competition then they have focused on conducting market research for identifying that what is the best they can do for gaining competitive advantage over others. Here it can be argued that the case company has focused a lot over effective planning.

Later on when the need for the change is being developed then the proposal related to the change is being discussed with the senior team. Before launching a new product in the market the company has focused on conducting a pilot study for exploring that how the customers will react to the change (Lacy-Nichols et. al. 2020). This is something which has helped the company in ensuring that they are making the best suited change per the situation. The internal and the external audits which are being conducted by the company for making a change are successful. Before making a change conducting effective market research for understanding the market situation is effective. When the internal and external audits are being conducted by using different models such as Pestle, Swot and competitive analysis can help the company in understanding the current situation in an effective manner.

Evaluation of long-term implications of change to inform conclusions and recommendations for minimising effects of change through planning

For managing changes in an effective manner it is necessary to make use of better strategies and models related to change management. Also the company needs to focus on having informed decision-making and should ensure that the employees are involved while making the changes. From the case study it is clear that Coca-Cola has focused on working with the experts for making the changes successfully and for better planning related to it. But then also the company is having the changes to face the issues in acceptance of the change by the customer and the employees of the firm. For this it can be suggested that when the company focuses on change management then it is important to make use of different change management tools and models which helps the company in managing change effective. The Lewis change management model is the effective one which can help in preparing the team to accept the change and making the changes successful in the firm (Hussain et. al. 2018).

For managing change effective it can be recommended that the need for the change is well discussed with all the important stakeholders. Along with this for ensuring that the employees are making better use of the new system it is important to offer effective training. This can help in developing the skills and knowledge which is required for the employees to work with the new system (Younas et. al. 2020). In support to this the leaders need to work closely with the employees and should create an organisational culture which is ready to accept the change in the firm. All this can help a lot in reducing the different risk factors and can help in making the changes successful.

Conclusion

As per the above mentioned report it can be stated that there are different factors related to the internal and external business environment which has led different changes in Coca cola. With time the company has undergone through different changes. These changes are affecting the company but the organisation has made use of better planning for managing changes in an effective manner. Through the case study evaluation it is clear that Coca Cola has undergone through different changes related to product and strategies for reacting effectively towards the change. As per the report it can be suggested that the businesses need to focus on different drives of change and then focus on better leadership, culture and getting support from the team for making the change successful for the company.

References

Bekimbetova, G.M., Erkinov, S.B. and Rakhimov, U.F., 2021. CULTURE AND ITS INFLUENCE ON CONSUMER BEHAVIOR IN THE CONTEXT OF MARKETING (in case of “Coca-Cola” company). Deutsche Internationale Zeitschrift für zeitgenössische Wissenschaft, (7-2), pp.4-6.

Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.

Cuofano, G., 2022. Coca Cola Pestle analysis [Online]. Available through: < https://fourweekmba.com/coca-cola-pestel-analysis/>.

Grgi?, J., 2020. Coca-Cola internationalization strategies (Doctoral dissertation, University of Zagreb. Faculty of Economics and Business. Department of International Economics).

Harmon, P., 2019. Business process change: a business process management guide for managers and process professionals. Morgan Kaufmann.

Holten, A.L., Hancock, G.R. and Bøllingtoft, A., 2019. Studying the importance of change leadership and change management in layoffs, mergers, and closures. Management Decision.

Hussain, S.T., Lei, S., Akram, T., Haider, M.J., Hussain, S.H. and Ali, M., 2018. Kurt Lewin's change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge, 3(3), pp.123-127.

Ilesanmi, O.B. and Odewale, T.T., 2020. Effect of classic soft drink Coca-Cola as a solvent in the administration of tramadol and diazepam on biochemical and histological changes in liver and kidney. Ukrainian Journal of Nephrology and Dialysis, (3 (67)), pp.33-41.

Lacy-Nichols, J., Scrinis, G. and Carey, R., 2020. The evolution of Coca-Cola Australia’s soft drink reformulation strategy 2003–2017: A thematic analysis of corporate documents. Food Policy90, p.101793.

Reddit, 2020. The differences between Diet Coke and Coke No Sugar [Online]. Available through: < https://www.reddit.com/r/Soda/comments/konpk7/the_differences_between_diet_coke_and_coke_no/>.

Singaram, R., Ramasubramani, A., Mehta, A. and Arora, P., 2019. Coca Cola: A study on the marketing strategies for millenniums focusing on India. International Journal of Advanced Research and Development4(1), pp.62-68.

Stouten, J., Rousseau, D.M. and De Cremer, D., 2018. Successful organizational change: Integrating the management practice and scholarly literatures. Academy of Management Annals, 12(2), pp.752-788.

Tien, N.H., Vu, N.T. and Tien, N.V., 2019. The role of brand and brand management in creating business value case of Coca-Cola Vietnam. International Journal of Research in Marketing Management and Sales1(2), pp.57-62.

Vecteezy, 2022. Coca Cola Logo Vector Art [Online]. Available through: < https://www.vecteezy.com/free-vector/coca-cola-logo>.

Younas, A., Wang, D., Javed, B. and Konte, A.G., 2020, January. Inclusive leadership and change-oriented organizational citizenship behavior: role of psychological safety. In Proceedings of the 2020 4th International Conference on Management Engineering, Software Engineering and Service Sciences (pp. 169-173).

Zhang, Z., 2019. Risk Analysis of Two Leader Drink Company: PepsiCo and Coca-Cola. Asian Business Research4(3), p.42.

 

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