Continue to work on your Final Project. Research your selected organization further. Write a paper addressing the following:
A description of leadership in the organization
The causes of the difficulties you described in the previous module
An analysis of the role of leadership in the difficulties, whether positive or negative
Citation of sources of information
Information is below
Coca-Cola company is a multinational corporation founded in 1886. The company headquartered in Atlanta, Georgia in United stated. The company is in the beverage industry that is well known for its production of carbonated soft drink. The company has diversified its product over the years due to its expansion to sustain itself in the competitive market. In addition to the carbonated soft drink, the company also produces drinking water, alcoholic beverage, juice, low calories drinks and all. It manufactures packaged fruits and vegetables, sauce and jam for its consumers. All beverage that the organization produce have a trademark of Coke. The company also offers different services to its consumers and retailers. Services such as customer services, for example, refrigeration equipment request from a client, they even listen to complaints and put strategies in place to ensure that they produce goods and services that meet the demands of customers. On the other hand, they also handle request installation.
According to DLI production (2014), Coca-Cola company has adopted several strategies such as sales and marketing, innovation and manufacture and distribution strategies that have enabled the company gains a vast market share. They have chosen an advertising method that has tremendously effect on popular culture and society, and these have allowed the organization to sustain itself in the competitive world. They branding system has enabled the organization to be preferred and accepted by different people all over the world. According to Rivenburgh (2014), any organization is facing problems as a result of producing its goods and services across the globe.
Despite having all these strategies, the organization still faces a lot of challenges that the leaders of the organization need to find best alternative solutions. Being a multinational corporation and having branches in different parts of the world production of the product is affected due to inflation and recession in developing and underdeveloped countries. Lack of stable economic level in those countries has a negative impact on the demand for the goods and services. This, in turn, leads to low profits in those countries as the prices of the product would decline hence high production cost.
Secondly, the organization faces difficulty when managing diversity. According to Armstrong (2008) stated that a multinational organization has a pool of employees from different countries (which is a credit to the company) who are from a different culture. Diversity has both negative and positive impact. Significant issues that come with variety are the language barrier, ethical issues and also gender issues as people are from a different culture. In addition to this policy formation and implementation in Coca-Cola as a result of having various branches in different countries that has different laws and regulations. Management has a difficult time creating policy as one policy might get rejected in another country.
Coca-Cola company has adapted the mergers and acquisition strategy to gain a competitive advantage. The organization has acquired many companies in the beverage industry, and this has made it hard for the organization to manage its workforce. Acquisition results to an increased number of employees in the organization and this lead to the surplus of employees. The organization might decide to discharge people from the organization by terminating their employment contract, and this creates a bad company image. This, in turn, makes the company less attractive to competent employees. The downgrading of some Coca-Cola company and lack of control of unrest among employees has led to high labor turnover. The high labor turnover has scared away competent employees who might have the relevant skills to improve productivity.
Last but not least the organization also faces problem while designing compensation system. When an employee deployed to another state, the compensation system is affected. People who work for the company are not paid the same as much as they hold the same position and have same skills and qualification. People who have in developed countries are paid more compared to those in underdeveloped countries due to different living standards.
For someone to be able to find the best solution for this problem he needs to have leadership skills that would enable him or her make informed choices. Managers of Coca-Cola company need to be leaders so that they ensure these problems do not reoccur. Strategies have to be formulated to mitigate the effect of these issues on production and profitability. Diversity training and programs offered in the organization and management should ensure employee engagement in the program and consistency in the program to ensure productivity.
Reference:
Armstrong (2008) A handbook of human resource management practices: London. Kegan page publisher
Rivenburgh (2014) The new corporate facts of life: New York. American management association
DLI production Inc. (2014) The Coca-Cola conquest. Montreal. The national film of Canada.