Summary of Case Study

The Coca-Cola Corporation is widely considered as one of the world's earliest

corporations. It has been operating in the midst of numerous internal and external changes since
its inception. The researcher is motivated to do a theoretical study to provide light on Coca-
motivations Cola's for altering, how those models influenced the whole organization's
performance, and how it overcome them. Coca-Cola was invented in 1886 in Atlanta, New York,
by combining sparkling water with Coca-Cola syrup. It was the main soft drink manufacturer
during the twentieth century because to its excellent flavor. Coca-Cola is an American
corporation that manufactures soft drinks and water. This research was implemented in March
2021.

The following are the primary goals of this study:

1. What changes are required at the Coca-Cola Company?

2. What are the external and internal change drivers?

3. What Change Management Models does Coca-Cola use?

4. What are the primary sorts of changes and how do they affect organizational
performance?

Economic factors include a wide range of economic conditions, such as inflation, interest
rates, tax rates, and stagnation. Social influences, such as the public's growing health
consciousness, favoured healthier products with low sugar and sodium levels. The use of social
media platforms, general internet accessibility, and the digitization of some aspects of the
operation are all examples of technological factors in logistics, along with product manufacture,
packaging, and distribution. Environmental considerations include protecting the environment
and natural resources. The business remanufactured its products in compliance with laws and
regulations. Whether it's recycling things, preventing environmental deterioration, or ensuring
that products are environmentally friendly. Following the laws established by the FDA and other
regulatory agencies, such as the Federal Trade Act, food regulations, environmental protection
legislation, etc., is one of the legal considerations. Additionally, vigilance must be kept up to
prevent rivals with similar products, like PepsiCo and other foreign soft drink businesses, from
stealing our market share.

Internal issues include structural changes brought on by the company being under intense
pressure from its employees as a result of the heavy workloads, functional demands, and
significant capital expenditures.

Additionally, the virus's spread made it more difficult for the business to get the artificial
sweeteners it regularly uses to make drinks without added sugar. Even post-pandemic, stocks
have taken a long time to recover from former sales levels.

The corporation experiences several organisational issues as a result of ignoring the

internal and external factors driving change. It could result in a decline in the markets and a
significant loss of its intended market share. Additionally, it can result in lower gross
earnings and capital turnover rates. Organizational change has three stages, according to
Lewin's change management model: unfreeze, movement, and refreeze. Again, the Coca-
Cola firm is shown to incorporate all of these within their structure.

Legal regulations and market dynamics are two of the most major drivers of change at
Coca-Cola. In addition, the company must compete with PepsiCo and other global soft drink
makers, as well as changing customer tastes for things that are excellent for their physical
health and nutrition. Political issues such as tax laws, occupational limits, environmental
regulations, employment rules, and accounting standards are examples of external variables.
Several corporations with facilities in China were forced to cease production during the
Corona crisis pandemic, resulting in global shortages of materials and supply chains. Prior to
the pandemic, soft drink demand difficulties arose as a result of increased consumer
awareness and control of their drinking patterns. The coronavirus epidemic, as well as
customers' increased sensitivity to high pricing caused by signs of an economic downturn,
may foster these behaviors. Customers, suppliers, governments, enterprises, and other
stakeholders are among the many distinct global stakeholders for Coca-Cola. Because of their
increasing number and diversity of interests and perspectives, the organization must
 guarantee that these requests are honored. The utilization of technology, organizational
structure, and employee culture are only a few of the variables that led to the corporation's
shift.
Section 1: Company Profile
Sir Winston Churchill, a British businessman, founded the Coca-Cola Company in 1886.
The well-known firm frequently purchased competitors one at a time, and its stock price
increased by 11% each year. Since its humble origins in 1892, it has developed to become one of
the leading manufacturers and marketers of non-alcoholic beverage concentrates and syrups. It
has employed change management approaches to stay competitive. To deal with these
developments, the company used change management techniques. Coca-Cola wants to
implement a comprehensive change management strategy in order to align its performance
criteria with its own business culture and goals. To deal with these developments, the company
used change management techniques. Coca-Cola wants to implement a comprehensive change
management strategy in order to align its performance criteria with its own business culture and
goals. The company's mission, according to Asa Griggs Candler, chief human resources officer,
is to make a difference. PepsiCo and other worldwide soft drink producers compete with the
corporation, and customer tastes are evolving.
Section 2: Problems
Problems faced by the Coca Cola company include the following:
1. Political factors: The business is under the Food and Drug Administration's control. Any
firm that does not follow the government's laws risks being fined. This authority also determines
the production techniques. To continue producing, we must also follow the rules of various other
governmental entities, such as tax laws, occupational limits, environmental regulations, and labor
laws.

2. Economic factors: A multitude of variables influence the Coca-Cola Company's

corporate operations, including stagnation, tax rates, inflation, interest rates, and so on. The
global operations of Coca-Cola are impacted by variations in the clearinghouse rates of
different currencies. In addition, rising prices for a variety of raw materials, including
chemicals and fuel, may have an impact on Coca-declining Cola's accretion revenue.
3. Social factors: The clientele have become more conscious of their health, which has led
the business to reevaluate all of its strategies and future directions. Customers favoured
healthier goods with little sugar and sodium so such products need to be concentrated on.

4. Technological factors: All of our logistical activities, including manufacture, packaging,

and distribution must rely on contemporary production technology. Social media platforms
are crucial for success. The process must be continually enhanced for efficiency and
profitability, from internet accessibility to digitising portions of our operation.

5. Environmental factors: The firm refurbished its goods in line with rules and legislation to
protect natural resources and the environment. From product recycling to acting against
environmental degradation to making sure that products are ecologically friendly. There is a
growing awareness of the environment that needs to be handled.

6. Legal factors: The Food and Drug Administration (FDA) and other regulatory
organizations' legislation will have an impact on Coca-plans Cola's for a variety of new
goods. Other rules, such as the Federal Trade Act, food standards, and environmental
protection legislation, may also apply to the firm. The FDA and other regulatory authorities
have established a set of rules that the corporation must follow.

7. Stakeholders: Customers, suppliers, governments, businesses, etc. are just a few of the
numerous global stakeholders for the corporation. The organisation must ensure that these
demands are satisfied due to the rise in their numbers and the diversity of their viewpoints
and inclinations.
 8. Competitor forces: Vigilance needs to be maintained so that competitors with similar
products such as PepsiCo and other international soft drink companies do not take over our
market shares. The ever-changing tastes of consumers who care about physical health and
diet products is the new landscape and improvements need to made in this area.

9. Covid 19-forces: Before the pandemic, there was a wave of problems with soft drink
demand that were brought on by rising consumer awareness and consumers' regulation of
their consumption patterns. These trends may be supported by the coronavirus outbreak and
the growing sensitivity of customers to high costs brought on by signs of an economic
downturn. Moreover, the virus's spread caused a delay in the company's ability to obtain the
artificial sweeteners it frequently employs to produce drinks without added sugar. Many
businesses with operations in China were compelled to halt production during the Corona
crisis pandemic, which resulted in global shortages of commodities and supply chains. Even
after the epidemic, stocks have taken a long time to recover from former sales levels,
necessitating preventative measures to avoid another supply chain crisis.

10. Internal Problems: These include structural adjustments as a result of the corporation
experiencing significant pressure from its staff due to the enormous burdens and functional
requirements. In the event of significant capital expenditures, the corporation reduces costs and
sets up committees for partial change in order to prioritise costs and omit unnecessary costs.

Section 3: Solutions
CokeSolutions is the go-to source for information about The Coca-Cola Company's
products and equipment, as well as food and beverage trends. Contact CokeSolutions to submit a
new business request over the phone. Today, they are regarded as the largest in the beverages
market, and it continues to develop as a result of its rapid global expansion. We are trying to
develop long-term solutions that will benefit the company and its 15 authorized bottlers (TCCC),
as well as how we seek to do business the correct way. Coke is looking for a $1 million solution
to their sugar problem. The next step is to propose a solution to the problem. One possible
approach that the corporation could potentially distribute Coke over the world for a cent a bottle
to members of the armed services.

We recognize that neglecting the internal and external causes of change leads to several
organizational issues inside the corporation. It might lead to a market drop and a large loss of its
planned market share. Additionally, it can result in lower gross earnings and capital turnover
rates. Thus, in order to ensure that its strategic goals are met and the satisfaction of all parties
involved, we investigate all internal and external drivers of change and build long- and short-
term response strategies. Research on the ever changing needs of consumers and the products
they need are this company’s top priority. We also perpetually strive to make innovations and
improvements both in efficiency and in the markets.

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