In my presentation I will be talking about Coca-Cola which is a profit organisation and the second one is Oxfam which is a non-profit organisation.
The Coca Cola Company is a public company as it trades it shares on the New York stock exchange. This means that the company is owned by thousands of shareholders and investors around the world.
The Coca-Cola company’s organizational structure consists of a board of directors elected by the shareholders, who have final decision-making power in the running of the company. The Coca-Cola Company currently employs approximately 94,800 employees. According to general organizational chart obtained from the company’s website, there are “more than 5 hierarchical levels at the corporate level.” 1
Due to its tall structure, the organization has experienced communication problems. One of the problems was that the people and the company “lacked clear goals.” 2 Tall hierarchies also cause motivation problems, which is why the organization is attempting to get employees more engaged. The company is attempting to increase the communication between every level of employees and allow upper management to effectively communicate to the front-line employees so that they are aware of what they’re required to do without it being misinterpreted.
The company try various ways in order to engage their employees and keep a healthy and rewarding workplace.
Allowing employees, the opportunity to grow in their skills and be trained to do even more is a big focus at Coca-Cola. The company offers a number of development programs to encourage and motivate employees. The company believe that in order to attract and retain the best individuals, they need to “invest in their development. We take training and development very seriously.” 3
Coca-Cola also offers financial rewards to motivate employees to reach greater pinnacles. “A Coca-Cola Red Tag program rewards employees with travel and merchandise as a way to recognize exceptional performance.” 4 Employees also get tuition reimbursement, and their children can qualify for scholarship funds. Car discounts, free parking and employee discount programs are also offered.
Employees are he most important assets of every company, so it is vital to give them importance. If the employees are satisfied with the working conditions, then they will work hard and give their best in return but if they are not satisfied with the companies policies then they will leave the company which in turn will effect the company as they will be required to hire new workers in which they may have to invest money into training them for the role of the job.
Coca-Cola believe it is a” priority to treat our people well, help them develop and give them a rewarding working life.” 5
Types of Structure
Functional = Coca-Cola is functional as it organises its employees into certain departments such as marketing, finance, human resources etc. This is effective as employees have clearly defined roles and an example of this is how the Coca-Cola company has “around 134 people employed at their London HQ” 6 who are responsible for marketing and developing new and existing brands.
Geographic = The company operates in over 200 countries
Type of Customer = Coca-Cola aim to reach new potential customers by producing different varieties that they believe will succeed and along with it bring huge quantities of customers. Coca-Cola have moved on from their traditional concentrated syrup into mass producing different variants such as even going into the energy drink sector and even hitting the water bottle sector.eg. Smart water
The company is owned by shareholders and therefore to look after their interests, the shareholders decide the directors. The managers are then appointed by the directors to run the business on an everyday basis.
The major responsibility of a Managing Director is to run the company, which includes setting targets for the company and taking care of all the departments and to ensure that everything is in order.
The Distribution Manager is responsible for supervising the drivers as well as the transport of goods to and from the company.
All the financial connections of the company are controlled by company Accountant and is responsible to produce management accounts and reports predicting the sales and turnover etc. They are also required to inform of how much money is being spent as is responsible for keeping track of how much profit is being generated so that the board of directors are aware of their company financial records and therefore will make suggestions according to it.
Finance = It is highly important for a company to attain accurate financial records. This is because the financial side of the business may affect future long-term decisions of the business. Moreover, keeping accurate records allows a business to be able to pay the correct amount of tax and avoid penalties and a negative image for not paying enough. Also, as Coca-Cola is a limited company it is required to publish their accounts at the end of the year publicly.
Marketing = Marketers use market research in order to understand the customers and attempt to ensure that the product match the customers needs. Marketing needs to work closely with the production department to ensure that the goods and services produced match what the marketer promised to consumers otherwise the company would be accused of false advertising which would damage the company’s image and status.
The marketing team works hard to increase sales, market share and profit by understanding their customers, consumers and the competition. The team’s knowledge and ideas help the company build cohesive marketing strategies and reach new grounds.
Human Resources = HR are responsible for managing the people that work within the business. The purpose of this functional area is to ensure the correct amount of people are employed, that the workforce has the correct skills and are paid correctly.
Customer Service = The aim of customer service is to attempt to meet the expectations of customers. Training is essential to ensure standards are met. A customer service assistant represents the organisation.
Oxfam is an organization whose primary goal is to find solutions to poverty and injustice around the world. Oxfam work in more than 90 countries as part of the Oxfam International confederation, their main objective is to provide a service and not to maximise profits. Oxfam is in the private sector and the tertiary sector as it provides services to vulnerable people around the world.
“The day-to-day operation of Oxfam is overseen by a corporate Leadership Team comprised of the Chief Executive and seven divisional directors. The Chief Executive is responsible to the Trustees for the management of Oxfam.” 7
Charities try to have less managers to keep costs down and most of the trustees are volunteers and don’t get paid. Oxfam’s organisational structure is geographic because they work around the world with lots of different countries, helping people who are less fortunate than others. Oxfam’s line on control will be smaller which means it will be easier to set work out because the functional areas aren’t as big. This makes it easier for decisions to be made as there doesn’t have to be as many meetings and it won’t be as difficult to get to the top person of a functional area. Because of the small structure of Oxfam, it is easier for managers to deliver messages and requests without it being misinterpreted, this also allows decision making more quicker as it is only needed to be discussed with a certain number of people. In addition, the views of the trustees and volunteer are able to be heard and be taken into consideration.
Oxfam is an organisation with very committed staff who care deeply about our mission of overcoming poverty. Oxfam strives to make its staff feel more special by listening to their views and give them a chance to voice their opinions. In response to this they initiated a process which became known as “Oxfam Listens”.
The results of the most recent staff survey showed a significant improvement in staff engagement and satisfaction. “For example, 90% feel respected by the colleagues they have day to day contact with and 89% of staff enjoy their job.” 8
Oxfam work in more than 90 countries which is highly beneficial for Oxfam as most of their employees are volunteers and so it does not Oxfam money, but it is also easier for Oxfam to respond to emergencies as they have employees spread around all over the world. This allows Oxfam to complete their goal effectively as it is their mission to help people worldwide.
Functional areas are a good way for Oxfam to organise their business as employees would be able to see who they are required to report to in their department, this would be highly useful to employees in different areas as Oxfam is geographical and so employees can see who to talk to in which area of the world.
Oxfam will want to care or their customers or children and families in this case. They would want to build a strong relationship with the trauma affected children/families as their job is to protect and care for the inflicted people.
This area is responsible for keeping records of financial activity. It is highly important for a company to attain accurate financial records. This is because the financial side of the business may affect future long-term decisions of the business.
This area is responsible for the amount of staff needed and not needed. They also deal with specific training to employees such as basic first aid etc.
Oxfam’s strategic plan includes their objectives over a certain period and the impact. Outcomes that they expect to achieve during the period. Oxfam’s core theme and objective is about justice and the power of people against poverty. “A world in which people can influence decisions that affect their lives, enjoy their rights, and assume their responsibilities as full citizens of a world in which all human beings are valued and treated equally.” 9
Oxfam have six goals which they abide by and hope to achieve, these are:
1. Help people claim their right to a better life
2. Champion equal rights for women
3. Save lives, now and in the future
4. Safeguard global food supplies
5. Help people claim a fairer share of natural resources
6. Increase money for basic services
As Oxfam is a not for profit organisation their aims and objectives are tailored to reach their overall goal, which is to help the poverty-stricken people as much as possible all around the world. In addition, as Oxfam is in the public sector, their aim is to provide a high quality of service as well as keep their costs as low as possible as they rely on donations (not for profit organisation)
A SMART objective helps a business reach its long-term aim. SMART stands for:
External factors can affect a business when trying to provide goods or a service.
Stakeholders = A person who has an interest in a business or who is affected by the decisions of a business. If a stakeholder feels that their money is not being invested in the right way, then they may leave which would affect the business as others may follow which as a result will mean less money for the business to be able to provide high quality services.
The business environment = For example if there was an increase in the government tax then the business would have to increase prices in order to retain profits, however in doing so they may see a decrease in customers as there may be a few who are not willing to spend extra.
In addition, if Oxfam’s supplier for blankets for example, made their prices higher then this would affect Oxfam greatly as they would now have to raise more in order to distribute the blankets or they could find another supplier which would be time consuming.
Coca-Colas mission is to:
• To refresh the world in mind, body and spirit
• To inspire moments of optimism and happiness through our brands and actions
• To create value and make a difference.
Coca-Colas Company Vision
People: Inspiring each other to be the best we can be by providing a great place to work
Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy people’s desires and needs
Partners: Nurturing a winning network of partners and building mutual loyalty
Planet: Being a responsible global citizen that makes a difference by helping to build and support sustainable communities
Profit: Maximising long-term return to shareholders, while being mindful of our overall responsibilities
Productivity: Being a highly effective, lean and fast-moving organisation. 10
An example of a SMART objective for Coca-Cola would be to reduce the amount of energy wastage by 20% by 2020.Coca-Cola have ambitious goals and recognise that they are able to help the environment massively by making the right decisions. Coca-Cola have already installed energy saving lighting throughout their factories and are also focusing on reducing the amount of packaging material they use.
Economic =Coca-Cola sales are greatly impacted by a set of economic factors that are far beyond the company’s control. These factors include tax rates, currency exchange rates and inflation etc. For instance, previously a 2-litre bottle of coca cola would cost 99p whereas today a 2 litre bottle costs £1.98. Due to inflation the price of an identical bottle of Coca Cola has doubled in price.
In my opinion, I believe that changes in the currency exchange rates would affect the company the most as Coca-Cola operate in a vast amount of countries and decrease in the exchange rates would affect the company immensely.
Factors such focus groups and pressure groups could affect the company’s image as the pursuit of a healthy lifestyle and increasing levels of consumer health concerns towards obesity fuelled by sugar filled drinks can be seen as the most important social change that puts a significant effect on the company’s sales. “The amount of soft drinks consumption in the US has experienced a steady decline during the past 15 years, at the same time the level of consumption of bottled water and sports drinks has increased substantially.” 11
The private sector is the part of a country’s economic system that is run by individuals and companies, rather than the government. Most private sector organizations are run with the intention of making a profit.
The private sector is made up of businesses or corporations owned by people. The private sector includes malls, grocery stores etc. To make a profit in the private sector, a business must earn our money by offering us products and services that we want or need.
The Public Sector is usually comprised of organizations that are owned and operated by the government and exist to provide services for its citizens. Similar to the voluntary sector, organizations in the public sector do not seek to generate a profit.
The public sector is not supported by profits, so it doesn’t have to compete for our money.Instead.the public sector uses our tax money to fund its services, so we pay for these programs. The government decides how our tax money should be spent in the public sector no matter how much or how little we use them.