Unit 17 Understanding & Leading Change Assignment Sample

Understanding and Leading Change Strategies in Organizations Assignment

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Introduction Of The Understanding & Leading Change Assignment

Continuous transformation for an organization is very important according to the requirements of the business and other operations to improve business culture and environment. The entire study is focused on the transformation of Coca-Cola in its business and other organizational operations. There are also 5 different case studies based on the organizational change and transformation of the organization. The conducted SWOT and PEST analysis is also capable of improving the leadership ability and team behavior among the business and organization. All the adopted case studies have the potential to demonstrate the effectiveness of the entire business.

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Overview of the adopted case studies

The five adopted case studies

Figure 1: The five adopted case studies

(Source: Self-Created in SmartArt)

Case study 1: Financial analysis

This particular study is based on the transformation of strategic management and financial analysis of Coca-Cola and PepsiCo (Genget al. 2021). The Coca-Cola Company focuses on the brand building, innovation, resource allocations whereas the PepsiCo Company focuses on the positive agriculture, choices and value chains. The transactional perspective between the financial accounting system and the digital method of accounting is also elaborated in the study for analyzing the current business situation of Coca-Cola and PepsiCo. This is also very important to determine all the further changes and management in the business and financial sector of Coca-Cola and PepsiCo.

Case study 2: Organizational business procedure

Coca-Cola is in the transformation of brand preference advertising campaigns and also controls the trademarks. Bottling companies produce, bottle, market, and supply tasty drinks to clients and dispensing companies, who subsequently market the goods to customers (Brondoni, 2019). Its product lines either mix sugars into the extracts. On the other hand, the PepsiCo Company has a wide range of products in the food industries along with the beverage industries. The Company is selling different types of snacks like potato chips, nachos, fruit juices and oats which give them a huge market in the food and beverage industries. The Company implements various operational methods in which they reduce the use of plastic, increase the use of recycling items for packaging, maintain the product’s quality, improve the functionality of the supply chain system and the location strategy in order to attract more customers. They focus on spreading business in the underdeveloped markets where the competition is less.

Case study 3: Influence of other organizational strategy

The differences between the organizational culture of Coca-Cola and its biggest competitor PepsiCo are mentioned in the study. At the end of the 20th century, PepsiCo made its main promotion in the organization's background when it set security signs for the business in every region of the world. This activity critically engaged giving customers of both beverage companies’ two glasses of each product in a transparent pot. Some people are selected to choose their favorite one from the two beverages. Most of the involved people selected PepsiCo as their favorite. Let the flavor of what users want to consume, PepsiCo is urging the general public (Sciencepub.net, 2022). According to the majority of research, problems with the carbonated beverage market before the pandemic were brought on by rising consumer consciousness and individuals' restriction on their consumption patterns. The study can play a very important role in the future growth and development of Coca-Cola.

Case study 4: Impact of international organizational culture

The content delivery system of Coca-Cola Company is known and adored everywhere. The process organization has followed had a huge impact on its growth. The Business also seeks to delicately satisfy the unique demands of regional markets, and as such, its corporate structure must do the same. This Case Study serves as an example of how the Company created a leadership strategy that is both reliable and adaptable enough to satisfy these specific needs (Academics.epu.ntua.gr, 2022). The current business and infrastructure of this organization, have implemented some effective business infrastructure, whenever feasible, to promote cooperation. For instance, each newly developed product at Coca-Cola Great Britain brings together groups of people with various specialties. The direct store delivery system (DSD) of Pepsi Company is also famous among the businesses. Their DSD system helps in the growth of the Company. This system uses the centralized IT platform to interact with their clients. This system also assists in managing inventory. The leadership strategy of the Company enhances the growth of the financial and competitive performances. The current business and infrastructure of the company have implemented some effective infrastructures that promote the bulk sales as well as gathering a huge number of customers.

Case study 5: Change Management

The adopted change management of the organization is mentioned in the study with the help of a brief analysis based on the operational scenario. Coca-Cola is an example of an organization that focused on its goods and marketing philosophy in the concept of transforming market requirements and other factors (Ukessays, 2022). In this research, researchers focused on different areas from either the history of the Coca-Cola Corporation and analyze what factors influenced their decision to make the shift as well as the tactics that the organization arrange different narratives to critically evaluate the changing process effectively. An institution's need for transformation is frequently prompted by both external and internal variables. Intrinsic factors include the employees, mineral wealth, work engagement, and the strategic plan that the organization has chosen. Environmental factors include governing rules, labor markets, economic factors, economic circumstances, etc. One of the largest companies on the planet is the Coca-Cola Company. PepsiCo Company focuses its business to deliver sustainable long-term development as well as to leave an effective impression on the society and environment. In order to transform its business market, PepsiCo now focuses on the sustainable food system, healthier food products and less production of carbonated drinks.

PEST/SWOT analysis

Case 1: SWOT

Strength · The transformations in the financial system are applicable for introducing the profitability structures to the organizations. · The strategic change in the organizations improved the businesses and all the organizational operations of the companies by fulfilling the determined goals of the management. · The implementation of a balanced scorecard is also applicable for having the potential to influence the present capital and the resources of the entire organization Coca-Cola. · The implementation of innovative portfolios by PepsiCo for the betterment of the people and planet influence the concerns of a huge number of customers caring for nature. · “Meet-the-competition pricing” strategy of Coca-Cola makes their products affordable to the customers. · “Hybrid Everyday Value” strategy of PepsiCo provides a wide range of pricing according to the product quantity which can be affordable to the consumers. Weakness · The continuation of the traditional financial perspectives can increase huge challenges in front of the businesses and the entire organizations. · The lack of efficiency and capability of the present organizational structures of Coca-Cola and PepsiCo are also responsible for encouraging all the challenges raised in front of the organizations (Elijah and Millicent, 2018). · Without the help of an effective breakdown structure, the development of the organizations might not be possible along with all the efforts and contributions made by the management.
Opportunity · The transformed financial capabilities of the organizations also played a very crucial role for providing huge efficiency within the businesses. · It might also be very helpful for maintaining the clear outlines for the development of the businesses and the organizations. · The impacts of a strong and effective financial system are also related to the strong and improved style of leadership and management which is followed by Coca-Cola and PepsiCo. · Reducing all the financial issues and challenges also can be possible with the help of these transformations. Threat· The issues existed from the traditional financial perspectives are also capable of decreasing the efficiency of the businesses and the entire organizations. · The determined growth and extension of the businesses also cannot be possible for all the existing issues and risk factors (Angira, 2021). · It might also impact the current assets, short-term investments, and all the securities of the businesses. · Competition between these organizations affects their market share and profitability. · Slowdown economy in the post pandemic era hinder the businesses of the organizations.

Table 1: SWOT analysis of case study 1 (Source: Self-Created)

Case 2: SWOT

Strength · All the initiatives taken by the management are applicable for reducing all the issues and risk factors in front of the organizations. · The study created a suitable outline for the development of the businesses for the upcoming future of the organizations (Keller and Schaninger, 2019). · The study also can be very helpful for comparing the businesses and organizational perspectives between Coca-Cola and PepsiCo. · Coca-Cola’s partnership with the different types of establishments helps to spread their products among the customers and to promote their brands. · Reaching the underdeveloped markets increases the business operation of PepsiCo and their special promotional strategies attract the consumers from different regions. Weakness · The methods of maintaining suitability can increase the initial costs of the businesses and other operations. · This can create a huge impact on the mentality and involvement of the stakeholders in both the companies. · The increasing expenses might also decrease the business efficiency without the control of the related management. · The merger and acquisition of global business opportunities might also face a challenge due to the factors evaluated in the entire study.
Opportunity · Coca-Cola has many valuable brands which run the businesses in the global market. The variety of beverage products help to increase the market share of the Company than PepsiCo. · These factors, like a wide variety of products, partnership with several establishments and the unique packaging systems are also capable of reducing all the issues and challenges in front of the business and the Coca-Cola Company. · Introducing sustainability in the business is applicable to maintaining the durability of the business and all the products of the organization (Tien et al. 2019). · The study has the potential to recommend all the further processes of development of the business Coca-Cola by evaluating the business scenario of PepsiCo. Threat · The lack of control and focus on the PepsiCo might impact the conventional business method of Coca-Cola. · The connection between the employees also may be reduced by a huge margin for which the business can be affected in the future. · The increasing issues and challenges might also be associated with the organizational structure of Coca-Cola in the future. · PepsiCo has a wide range of products in food industries along with the beverage industries which can affect the market value of Coca-Cola as its products are mostly based on a variety of beverages.

Table 2: SWOT analysis of case study 2 (Source: Self-Created)

Case 3: PEST

Political · All the food products of Coca-Cola are not alcoholic and maintain all the policies or guidelines implemented by the government and drug administration. · Controlling the business and service along with better quality belongs to the primary responsibility of the management of that particular organization to continue their business. · The directions of the FDA and the legislation of the government are critically maintained by the business and other services of Coca-Cola. · The management is also very capable of maintaining the work culture and environment. Economical · The present company trades have the potential to maintain the tax rates stagnation, rate of interest, and other important factors (Ahmed et al. 2019). · The financial stability of the organization is also applicable to the global expansion of the business and company. · In many cases increasing the cost of raw materials might increase the business and operational expenses of Coca-Cola. · This might be possible for the lower accumulation of revenue of the business.
Social · The involvement in international business is responsible for involving a huge number of people from different backgrounds and cultural aspects. · Focusing on the health and safety of the customers is the primary criterion of the business and organization. · The business of Coca-Cola depends on the diversity of the employees and the customers at the same time. · Fulfilling the needs and requirements of the customers also can be possible through the efficiency of the management. Technological · The use of the technological aspect of Coca-Cola primarily belongs to the market and manufacturing units. · During the Covid period technology is also utilized in the method of the supply chain of the entire business and organization (Gómez, 2019). · On the other hand, using strong and innovative technology by the management applies to maintaining business efficiency. · It is also capable of iterating with the clients and the stakeholders related to the business and the organization.

Table 3: PEST analysis of case study 3 (Source: Self-Created)

Case 4: SWOT

Strength · The primary strength of Coca-Cola is its relationship with the customers and the stakeholders. · The well-structured business and organizational operations are also very helpful to compete with PepsiCowith the determined efficiency of the management (Chiu et al. 2019). · The contributions and efforts made by the employees also play a very crucial role in the development of Coca-Cola. · The skill and attributes of the management are very helpful for the huge expansion of business all over the world. Weakness · The external factors of the organization are capable of affecting the business culture of Coca-Cola. · The involvement with the brand from almost 200+ countries can increase the challenge of monitoring and control in front of the business of Coca-Cola. · Without the help of effective policies and business laws, the organizational operations of the organization might face a huge issue. · The management should be more focused and capable of determining all the factors related to the business.
Opportunity · The modern work culture of Coca-Cola is continuously encouraging teamwork by which the organizational health of the organization might be maintained. · The marketing structure of the organization is also applicable for involving more people in the business and other operations in that company (Chua et al. 2020). · The management has a huge focus and contribution in the emphasis on teamwork, empowerment and other essential factors for the determined growth and success of that particular organization. · By highlighting the shortcomings of the existing situation and the significance of making changes and modifications, this phase tries to prepare the organization to embrace change. Threat · The direct involvement of different people at the same time in the business might create a cultural inequality among the business and other organizational operations. · Additionally, via planning and presentation, an openness to new information, efficiency, and current technologies must be prepared. · Executives at the Coca-Cola Company may motivate employees during the "unfreezing" phase by emphasizing the benefits of a change initiative in all spheres. · The interactions, business policies of PepsiCo are more advanced than Coca-Cola which can affect the competition. · The leadership strategy of PepsiCo focuses on the bulk sales for which the Company introduces products with different quantities and with different pricing which can attract the customers of Coca-Cola as they do not have the product variety on the basis of quantity and pricing.

Table 4: SWOT analysis of case study 4 (Source: Self-Created)

Case 5: SWOT

Strength · The research produced an appropriate plan for the organization's future commercial development. · The major criterion of the business and organization is to focus on the health and safety of the clients. · The strategic adjustment in the organization enhanced the company's business and all organizational activities by achieving the management's predetermined aim. · The method of conducting the business and other organizational activities also refers to the strength of Coca-Cola. Weakness · During the Covid time, technology is also used in the way of the complete business and organization's supply chain. · In many circumstances, raising the cost of raw materials may raise Coca-Cola's operating expenditures (Bekimbetovaet al. 2021). · Without the assistance of appropriate policies and business rules, the organization's organizational activities may face significant challenges. · The relationship between employees may also be weakened by a large margin, affecting the firm in the future. · PepsiCo produces non-carbonated drinks that are more affordable than the non-carbonated drinks produced by Coca-Cola.
Opportunity · Managers at the Coca-Cola Corporation can inspire employees during the "reactivating" phase by explaining the importance of the anticipated alteration in the context of organizational advantages. · All the trained workers might play a very crucial role in absorbing the state of transformation. · The transformation of the organization and business applies to the primary vision of transformative actions taken by the management for successful business expansion. · Employee education provides individuals with a platform, which influences local policy. Threat · Professionals adopt an active stance toward problems like waste minimization whenever they are in sync with the firm's aims. · In today's unpredictable and unpredictable marketplaces, where presence is emerging often and the business must always be flexible, a continuous communication strategy is particularly important (Okoye-Chine, 2021). · The huge business growth also can be a factor of thread in front of the business and the entire organization. · PepsiCo focuses on producing bottles with recyclable objects which is better than the packaging system of Coca-Cola as most of the people are now concerned about the nature and the harmful effects of the plastic products.

Table 5: SWOT analysis of case study 5

(Source: Self-Created)

Analysis of the other organizations for influencing the change of this company

The management of this organization is continuously focused on the transformation of the products and services to increase the public interest and involvement in the business. When a competing firm introduced a black drink with a relatively pleasant and smooth flavor, the producing and selling engaged in misleading advertising (MaaniHessariet al. 2019). Facts to know about Just the Coca-Cola Company include 42.7% of the UK market for soft drinks containing carbonation. There are two types of media: textual communication and moving images. Publications, tabloids, trade and corporate media, and online are all examples of published media.

Influence of other organizations in the business culture

Figure 2: Influence of other organizations in the business culture

(Source: Self-Created in SmartArt)

Pepsi is the nearest and most effective business rival of Coca-Cola. The strong business organization and culture of the rival groups also have the potential to reduce all the issues and risk factors through the efforts and contributions made by the management. Similarly, the business might also be influenced by the government and non-government organizations all over the world to continue their business (Guo and Wen, 2021). Unquestionably, PepsiCo and Coca-Cola are well-known for the refreshments they produce underneath a variety of trademarks, but they really produce a wide range of supplementary goods. PepsiCo has types of items that are incredibly diverse and tries to give each product the same amount of attention. The other sector where PepsiCo is present is the consumer packaged products sector. In actuality, PepsiCo's goods in the snacking world of food contribute to close to 40% of the business' overall revenues. The organization's broad business strategy has allowed it to develop and purchase a number of close substitutes in the production of food. The corporation only depends on its drinks and beverage brands when that refers to Coca-Cola, on either extreme (Greenhalgh, 2021). Apart from that, the PepsiCo Company packages its beverages products into different quantities which assists to serve their similar products to the customers in a wide range of pricing. Television, radio, movies, advertising and direct marketing are examples of both auditory and visual media. Coca-Cola was able to differentiate its brands from those of its rivals by emphasizing image, durability, and affordability via the use of references including brand image and premium pricing (Struckellet al. 2022). These tactics helped Coca-Cola to carve out a competitive niche and succeed.

To minimize the unfavorable effects of Coca-Cola, two theories can be implemented viz. PDCA cycle or the System Theory.

PDCA cycle

The SWOT and PEST analysis explains a variety of problems, which needs to be solved by Coca-Cola. To reduce the problems, the Company should follow a series of actions. For this purpose, the PDCA cycle is suitable to minimize the negative effects. The PDCA cycle consists of four sets of actions, such as plan, do, check and act. In the first step, Coca-Cola needs to recognize the challenges that create unfavorable effects. After that, the Company must plan some strategies in order to reduce the effects. In this case, the major challenges are related to heavy use of plastic materials, limited range of products in a particular category, expansion of the business market and the brand value and market share of the company. To overcome these challenges, the Company should make a plan to expand its market by increasing the brand value and market shares. Along with that, a plan is required to lower the usage of non-recyclable products in packaging. In the second step, Coca-Cola’s management needs to perform necessary actions in order to execute the plans. Here, the Company recollects all its packaging materials and recycled them to use for further packaging. Along with that, the company focuses on reducing the unfavorable effects on the environment caused by the company. The Coca-Cola Company promotes its products by associating with numerous establishments such as eateries, groceries, cinema halls, shopping complexes etc. where a large number of people can view their products. This helps to increase the brand value of their products and with the increasing brand value, the market share of the company is also increased. In the third step, all the activities which are performed to execute the plan are checked or evaluated for its efficiency (Smith, 2021). Here, the management assesses the effectiveness of the plans. The company is able to reduce the 25% emissions of greenhouse gas from their factories and improves the watershed health in the areas which suffer from the scarcity of waters. In the last step, when the evaluation of the activities is completed, the final plan is implemented to minimize the negative effects of the company. Here, the company focuses on reaching net zero carbon by 2050 and the recent market value of the company is greater than their rival companies, especially PepsiCo.

Evaluation of leadership and team behavior change

The Coca-Cola Company has separated its services by area, but every territory has a director. In 2018, the corporation modified its worldwide operational plan to better utilize its key executives. As a result, the firm recently reorganized its operating organization into three primary groups: “Southeast Asia, managed by John Murphy, EMEA, headed by Brian Smith, and Latin America, led by Alfredo Rivera” (Suay, 2020). According to the leadership context, the origin of this attribute may be seen in path theory, in which the leader enhances the demand for innovation. Coca-Cola's CEO believes in creatively developing the company.

Leadership and behavioral change

Figure 3: Leadership and behavioral change

(Source: Self-Created in SmartArt)

They specialize in making investments in research and improvement to identify innovative ways to serve the institution's consumers and staff. Coca-Cola Company uses both communication and collaboration to construct the appropriate promotional platform's domestic and foreign infrastructure. Official management is to create a good workplace culture for organizational workers in which ideas are freely exchanged at all levels of administration and among firm personnel (Brondoni, 2019). Coca-Cola leadership accomplished this by compensating all administrative and group employees inside the organization. These facts also played a very crucial role in maintaining organizational behavior.

Every organization is changed due to the different barriers. In Coca-Cola Company, the major barriers are the market dimensions, customers’ concern towards nature and the marketing strategies. The products of the Company are limited to the beverages which confined the company only in the beverage industries. Their main products are carbonated beverages which affect the customer's health (Paavola and Cuthbertson, 2022). These carbonated beverages affect the marketing of the Company as people are more concerned about their health and most of the people have restrictions to consume these products. The rival companies spread their business market by implying various unique ways of branding which attracts the customers to consume their products. Due to the unique business strategies, the brand value of other beverage companies become high which affect the Coca-Cola’s market. Additionally, the rival company PepsiCo uses recycled materials for their packaging.

The Coca-Cola Company is one of the leading contributors to the plastic pollution which makes consumers abstain from using their products. These barriers force the Coca-Cola Company to focus on reducing the usage of non-recyclable plastic-based materials in packaging, obtain unique marketing strategies and reach a large number of consumers to increase the brand value of the Company. In order to meet these objectives the Company focuses on the requirements of the customers, perspective of the customers towards their products, gathering the used plastic materials of the company in order to recycle those, advertising of the products and the technological changes (Shahid and Ashfaq, 2021). Though there are different driving forces to fulfill the objectives, there are also some restraining forces that can hinder the completion of the objectives. The lack of researchers can affect the invention of latest technologies by which the Company can lower the use of non-recyclable products and increase the use of recyclable products for their products’ packaging.

The poor interaction system of the company can affect the sales. The huge pressure of the customers can derail the company to follow their objectives. In order to remove the barriers, the most important factor is the customers’ concern and expectation from the company. As the company has its brand image, Coca-Cola needs to produce superior quality beverages with the recyclable packaging to satisfy the customers.

Effective models of change efficiency

The capacity of Coca-Cola to develop and flourish in new areas is a key factor in its success. Road improvements happened as a result of strategy implementation at Coca-Cola. Additionally, to a greater selling rate, effective performance communication is key (Serôdioet al. 2018). The business began acting in 19 nations, including Mexico and the Philippines. Such a partnership will help Coca-Cola succeed in the global industry in the world (Greenhalgh, 2019). The fact that Coca-Cola Industry's returns increased in 2014 compared to the prior years, suggests that the alteration that was done was successful. Additionally, teach individuals how to advance while maintaining revenues. For a Coca-Cola business transformation to be successful, it must not just influence employee behavior inside the company, but also take a methodical approach. Furthermore, choices are taken at Coca-Cola by operating as a worldwide team, allowing the firm to satisfy its career progression and attain originality (Maisoniet al. 2019). The standard way is via preparation, which is the act of creating objectives and the skill of establishing stated objectives while describing tasks. The Coca-Cola Company is now putting importance on reducing non-recyclable products for their packaging systems as the customers are now more concerned about nature before using any products. The Company’s main competitor has already used recyclable products for the packaging purpose which forces the Coca-Cola Company to use recyclable materials for the packaging purposes of their products. The Company is now packaging their beverages under one liter by using recycled plastics which put a positive impact on the Company’s marketing strategy as well as on the emotions of the concerned customers (Maisoniet al. 2019). Apart from that, the Company is now working with their distribution strategy which earlier was only focused on affordability of the products. To compete with the bulk sale strategy of their rival company PepsiCo, Coca-Cola spreads its products in the major areas where the engagement of the customers are huge, such as supermarkets, gas stations, restaurants and convenience stores. The Company gives importance to direct distribution rather than indirect distribution as these can enhance the interactions with their clients and customers[referred to Appendix 1: Functional change of Coca-Cola].

Evaluation of the model

Coca-ethics Cola's and occupational codes of conduct form the basis for conformity with global requirements. A company's standards of responsibility in terms of ethical behavior, particularly in trade, are clearly stated in its code of ethics and behavior (Zhang, 2019). The Coca-Cola ethics code entails first understanding why there is a code, then making some good moral dilemmas, protecting company resources, demonstrating personal responsibility, dealing fairly with each other, being compassionate for the communities, ignoring ethical dilemmas and building a straightforward partnership.

The firm has already started by improving its working culture (Deshpande et al. 2020). The corporation employs the expertise of its implementation of a group of people for a particular task. Providing training by the leaders will be very helpful for the further development of the people in their future along with a particular role and responsibility.

The Company also has some ethical models on the environment as this is one of the most important factors in recent times. The Company offers recycled plastic packaging to their products in around thirty markets. As the packaging material can affect the environment as well as the climate, the Company aims to reach net-zero carbon by the year 2050 (Singaramet al. 2019). This assists to reduce the plastic wastes in the world and enhances their “World Without Waste” campaign. Apart from that, the Company reduces the emissions of greenhouse gas by 25%. The water strategy of the Company focuses to improve the watershed health in the areas which suffer from the scarcity of waters[referred to Appendix 2: Growth Strategy of Coca-Cola].

For the improvement of the consumers’ health, reduction of sugar usage is most important for the beverage company (Airaodion et al. 2019). Coca-Cola reduces the amount of added sugars in their products and supplies their nutritional products.

Conclusion

The entire study is centered on Coca-Cola's and other organizational procedures. The impact of all factors in the changes and transformations made is also capable of increasing the efficiency of the Coca-Cola business. There are additionally five further case studies that have been executed in the context of organizational change and transformation. The simultaneous participation of numerous people and organizations may be extremely advantageous to Coca-Cola's success. The impact of all factors in the changes and transformations made is also capable of increasing the efficiency of the Coca-Cola business. However, only by innovative management can a corporation maintain its number one position. These courses include much information on the company's objectives and plans. This has helped the firm create better results, and corporate employees are taking orders more seriously and putting them into action.

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