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Apply Henri Fayol’s Five Rules of Management to the Coca-Cola Sample

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Harmonizing to Fayol’s five regulations. the first regulation is about foresight ; the 2nd regulation is about organisation ; the 3rd regulation is about bid ; the 4th regulation is about coordination and the 5th regulation is about control ( cited in Chris. 2005 ) .

See the first regulation. it refers to either thought or program for the hereafter development in a company. In the instance of Coca-Cola. they showed a clear and proper manner for their foresight. See the undermentioned instance. Coca-cola had decided to construct a new bottling works in Malaysia on 16 March and the works is expected to open before the terminal of 2011.

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“With the new works. one of the most modern of its sort in this portion of the universe. we will be able to back up our nucleus trade names of Coca-Cola and Sprite in the coming old ages ” said Glenn Jordan. Coca-Cola’s president of the Pacific Group ( IndustryWeek. 2010 ) . Furthermore. Coca-Cola announced that their net income increased 55 % in the 4th one-fourth due to significantly increased in the developing states such as India and China.

( IndustryWeek. 2010 ) Coca-Cola Company can do a thought of constructing a new works in order to carry through their farther addition in selling of drinks. which need more bottles for their drinks. Besides. their sale figures proved that their program of constructing new works is a proper and right manner to cover with their production demand.

The 2nd regulation is corporation. which means that the company can let flexible in utilizing their resources. The company did an first-class occupation in this issue. For illustration. the company set up a alone Coca-Cola System which provide better corporate with its providers like bottling spouses ( Coca-Cola. 2011 ) . Through the system. Coca-Cola Company can roll up and consolidate different types of informations like economic and societal informations in order to the environmental informations collected by themselves already. so the company combined all these informations to supply a certain grades of flexibleness in their concern. such as altering production and selling schemes.

The 3rd regulation is bid. which means to set up and choose suited staff to accomplish a sustainable and best work inside a company. Harmonizing to the instance survey. Douglas Daft. CEO of Coca-Cola Company. who set up a 10-person executive direction squad. composed of different rubrics responsible for specific occupations. “Twenty-four division and operations presidents study to the head runing officers” ( Para 7 & A ; 8. p. W-117 ) . The direction inside Coca-Cola can be strengthened ; particularly Coca-Cola is a global enterpriser. it is really of import to hold a clear division of work which can ease the task-oriented direction inside Coca-Cola Company. Besides. the resources in each section can be expeditiously used. For illustration. five executive frailty presidents of the Coca-Cola Company are responsible for different parts of concern in the universe. such as Europe. Eurasia and etc. Members of staff in each section can concentrate and responsible for their work undertakings with their office or executive presidents in order to accomplish a better public presentation in the company concern.

The 4th regulation is coordination. which refers to organize and pass on between staff and section to ease their day-to-day plants. Mention to the illustration given in the 3rd regulation. the 24 division and operating officers can maintain on tracking the procedure of their plants. As sections are separated with specific undertaking. so staff can easy portion their informations and information within the section. Most of import. Coca-Cola Company had concern in worldwide. so sharing of information such as concern figures and selling hunt is a indispensable component in the company. Besides. information can be to the full utilised within sections can drive profitable growing. which is one of their six strategic precedences in Annual Report ( Para 8. p. W-117 ) .

The 5th regulation is control. which refers to the company should supervise their plants and do alterations if necessary. Mention to the illustration given in the 3rd regulation. the 24 division and operations can wholly supervise their plants which can run into the company’s aims and ends. Besides. the illustration of doing new spirit of soft drink in Coca-Cola Company is another illustration to demo that they make alterations if necessary. In recent old ages. people have been aroused awareness towards healthy diets. particularly people know that traditional Coke contains a higher proportion of sugar. which can non run into the general demands in the market. so Coca-Cola Company decided to present “Coca-Cola Zero” in 2004 and it contains zero sugar and nothing Calories ( Coca-Cola. 2011 ) . By presenting “Coca-Cola Zero” . it showed the company recognize the market demand and make a new spirit to carry through the alteration of penchant in their clients.

How does Coca-Cola mark on the eight properties of public presentation excellence?

Coca-Cola Company can be scored eight out of 10 in the eight properties of public presentation excellence found by Tom Peters and Robert H. Waterman in 1982. The first property is “A prejudice for action. active determination making” ( cited in Wikipedia. 2011 ) . Sing to the information given in the instance survey. Coca-Cola Company set up six strategic precedences and all persons. employees and spouses worldwide should follow these precedences. Employees understand their ends. so proper and active determination can be made. The 2nd property is “Close to customer” ( cited in Wikipedia. 2011 ) . Coca-Cola Company is ever customer-oriented and willing to happen out what their customer’s demand. For illustration. “Coca-Cola Zero” has its ain Facebook and Twitter website for clients to have the latest merchandise information and clients can give out sentiments towards the trade name ( Coca-Cola. 2010 ) . The 3rd property is “Autonomy and entrepreneurship” ( cited in Wikipedia. 2011 ) .

This company ever has invention in their merchandises like presenting new Coke with cherry. lemon. orange favours. Besides fluctuation in their traditional carbonated drinks ( Coke ) . the company besides produces fruit juices. tea and javas with a merchandise list of over 3300 drinks ( Coca-Cola. 2011 ) . The 4th property is “Productivity through people” ( cited in Wikipedia. 2011 ) . Sing to the instance. the new direction construction introduced by Douglas Daft can heighten the on the job efficiency in the company. Every section is responsible for their ain undertakings and follows the six precedences ; issues can be easy handled and no affair senior and junior employees can work in a right path. which can farther force up the productiveness and turnover. The 5th property is “Hands-on. value-driven” ( cited in Wikipedia. 2011 ) . Although direction was divided into 10 squads. they still normally shared the six strategic precedences. such as broaden drink trade names. service clients with creativeness and etc ( Para 8. p. W-117 ) . We can clearly see that each precedence had an apparent and clear thought to follow. which can assist the company to hike their net income and gross revenues. ”

The 6th property is “Stick to the knitting” ( cited in Wikipedia. 2011 ) . Mention to illustration given in the 3rd property ; the company perfectly focuses on either carbonated or non-carbonated drinks. as these points are the core portion of the concern. Besides. concentrating on their nucleus concern can beef up their market leading in the universe because they have already experience on making drinks concern for over 100 old ages. The 7th property is “Simple signifier. thin staff” ( cited in Wikipedia. 2011 ) . The most obvious issue is that CEO Douglas Daft axed 6000 employees and rearranged the direction into 10 individual executive direction squad ( Para 7. p. W-117 ) . By making so. it is much easier to pull off and command the company because the complexness of direction is minimized. so sections can work expeditiously and officers can easy follow managerial undertakings.

The 8th property is “Simultaneous loose-tight properties” ( cited in Wikipedia. 2011 ) . which refers to flexibility inside the company. Coca-Cola Company shows a higher grade of flexibleness in the selling schemes. The company knows that people in different states have different positions and penchant about the Coke. For illustration. Coke with calcium hydroxide was introduced in the United Kingdom and North America ; the Coca-Cola Cherry was non introduced in the UK. but in the America and Canada. These fluctuations provide flexibleness in their concern and beef up their repute around the universe. Do you believe Douglas Daft will be successful in recovering the growing and value experienced under Roberto Goizueta?

Personally talking. I do non believe that Douglas Daft will be that successful in recovering the growing and value experienced under Roberto Goizueta. When Roberto was making the Chief executive officer in 1980 to 1997. Coca-Cola Company may hold better selling research. schemes and advertisement than other rivals. These elements allow the company to stand on a vantage place. It was non surprised that the market value was seemingly increased about 38 times in 1980 to 1997 like mentioned in the instance survey. However. once it become a successful company. other rival may copy your concern theoretical account. operating schemes and even modified to go a more comprehensive and better schemes and so follow in their company. doing a direct competition with Coca-Cola Company.

Presently. there are many rivals around the universe and do a menace to the net income of Coca-Cola Company. such as Pepsi in worldwide. New Cola in Mexico. Robert robinsons in the UK. Qibla Cola in the Middle East and Future Cola in China ( Wikipedia. 2011 ) . Obviously. Coca-Cola Company is confronting a vigorous competition with its rivals. Without uncertainty. Douglas Daft made alterations in the direction and six strategic precedences which are governable inside the company ; nevertheless. clients have more picks than before which means the penchant of clients is unmanageable. particularly people become cognizant of their wellness. so they possibly tend to imbibe less Coke in the hereafter. Furthermore. the monetary value fluctuation of natural stuff such as oil monetary value and aluminium monetary value cause barriers in recovering the net income. These elements are indispensable for fabricating plastic bottles and aluminium tins so the company will be extremely influenced by the monetary value fluctuations.

What are Coca-Cola underlying beliefs? What insights does it supply?

The underlying beliefs of Coca-Cola Company including “to refresh the world” . “To inspire minutes of optimism and happiness” and “To create value and do a difference” ( Coca-Cola. 2010 ) . By and large talking. the company wants to go a well-known and with good repute company around the universe. For illustration. the company widens their merchandise list of drinks and makes advanced alterations in different topographic points in order to give out impressive memories to clients through advertizements and publicities. These issues allow the company to suit with their three chief beliefs and keep a sustainable development in the hereafter.

The penetrations which the company provided are 6 “P”s. including net income. people. portfolio. spouses. planet and productiveness ( Coca-Cola. 2010 ) .

See net income. the company gain money in each twelvemonth. which can fulfill their stockholders and stakeholders ; nevertheless. the company do non pretermit the importance of corporate societal duty. For illustration. the company ensures that they do non engage kid labour in their operations and their provider web ( Coca-Cola. 2011 ) .

See people. they tend to supply a better working environment to their employees. “We value the relationship we have with our employees. The success of our concern depends on every employee in our planetary enterprise” ( Coca-Cola 2011 ) . The company knows that employees is the most of import resources inside a company. so they focus on their employees such as supplying a just and better workplace to them. For illustration. “The Coca-Cola Safety Management System” ( TCCSMS ) was introduced in order to supply a safe and ideal workplace to its employees ( Coca-Cola. 2011 ) .

See portfolio. the company maintain doing investing to their concern such as bring forthing truths of new drinks and bettering their production installations. By presenting new spirit of Coke. it can by and large run into the customer’s need and benefits to their repute. For illustration. presently the company had more than 3. 300 drinks in the drink portfolio ( Coca-Cola. 2011 ) .

See spouses. the company know the importance of keeping a good relationship with its spouses particularly providers. which can smoothen the operation of the concern. For illustration. “Our Supplier Guiding Principles ( SGPs ) pass on our values and outlooks for our bottling spouses and concern partners” ( Coca-Cola. 2011 ) . This guarantee the company with non hold struggles with its providers. as both Coca-Cola Company and providers have the similar rules and thoughts. so it can derive satisfaction with each other.

See planet. they aimed to go a “responsible planetary citizens” ( Coca-Cola. 2011 ) . The company make alterations in the constellation of the fountain. ice chests and peddling machines. which aimed to cut down pollution to the planet. For illustration. normally ice chests contain a chemical called “Chlorofluorocarbons” ( CFCs ) . doing nursery consequence to the planet. The company realized the issue and decided to halt utilizing ice chests with Chlorofluorocarbons. which had already reduced 52. 5 million metric dozenss of Chlorofluorocarbons to the planet ( Coca-Cola. 2011 ) .

See productiveness. the company stated “Be a extremely effectual. thin and fast-moving organization” ( Coca-Cola. 2011 ) . For illustration. there are merely 7 runing groups leading in the company and each group focal point on specific undertakings which can to the full use their ain resources in each section. The division of operating groups shows simpleness in direction that can ease trade with runing issues such as planning. forming and organizing inside the company.


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Cite this Apply Henri Fayol’s Five Rules of Management to the Coca-Cola Sample

Apply Henri Fayol’s Five Rules of Management to the Coca-Cola Sample. (2017, Jul 18). Retrieved from https://graduateway.com/apply-henri-fayols-five-rules-of-management-to-the-coca-cola-essay-sample-810/

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