Change management is an important process that helps in formulation and assimilation of changes in an organization. The objective of change in an organization is to introduce new systems in work organization or adoption of new marketing strategies. Business organizations like the coca cola companies undergo changes in stability management and production which can include changes in the company’s mission, reformation of business operations, application of new technologies, or options of new programs (Kotter, 2012). The Coca Cola Company as a leading brand in the international market must embrace change rather than oppose it. Change management in the company ensures that the organization is composed to face any market an environmental conditions.
The Coca Cola Company change management process
Organizations are obliged to change and adopt vibrant survival tactics to survive in times of uncertainty triggered by the political social or economic environments. Due to the changing nature of factors in the business environment, it is crucial to develop well-planned change management strategies. The Coca Cola Company known for its manufacture of non-alcoholic drinks and beverages is continuously required to make changes in its products and business strategies to fit consumer expectations preferences and demands as well as the external environment. The company presents a historical case of change management through the implementation of its acquisition strategy in the Asian financial crisis.
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During this era, the business acquires bottling coffee and tea shops in Korea and Malaysia and implemented new products to keep up with the diverse tastes preferences of their consumers. The company responded to the consumer changing behavior was through the introduction of new products such as the Diet Coke and Coca Cola Zero. The company committed a marketing blender which they named the New Coke in their efforts to counter their rivals’ new beverages with a similar sweet and smooth taste and to keep up with market competition (Kotter, 2012). The change of product led to a decline in sales and consumer critics and protests. The implemented change failed to generate the expected outcomes an instead led to decreased sales and affected their consumer consumption preferences and tastes.
Leadership Styles and Approaches
The company responded to competition by using the contemporary leadership styles which are characterized by leaders’ ability and allowance to make mistakes and find solutions for them. The leaders of the company during this period displayed charismatic and visionary, transformational and transactional leadership styles. The leadership styles allowed the leaders to focus on the organizational goals and visions as opposed to the pursuit of their own goals. The CEO of the coca cola company introduced the market blender with the aim of meeting consumer needs and to compete with the rivals’ beverages which were not a success despite following the right steps and leadership styles (Kotter, 2012). The leader exhibits the transactional leadership style that involves supervision organization and performance which focus on the company performance in sales despite the risk of exploitation and failure.
Styles and Approaches Contribution to Outcomes
The leadership styles led to changes in operation and strategies such as advertising and presentation of products. The changes influenced the results of reduced sales and consumer protests and complaints due to their failure to consider consumers contribution and preference and its concentration on competition and the market environment. The leadership by altering the tastes an preferences of the consumers, in efforts to counter competitive products, lead to exposure and weakness in the company in its desire to exploit opportunities by competition triggered by the goal to maintain its position in the market.
Actions Taken To Address the Challenges
The leaders had several operations at their disposal to address the challenges, disappointments, confusion, and failures. Actions include:
Involvement of the required stakeholders
Before implementing the changes, the leadership of the coca cola company should have engaged with the involve stakeholder who in the situation were the consumers. The administration should have conducted surveys, interviews, and polls to determine the position of the consumers on the intended change (Kotter, 2012). The leadership through stakeholders’ involvement would have been saved from the disappointments, frustrations, and confusion.
Employee engagement
The Coca-Cola Company in its efforts to eliminate competition, sales and production challenges would have engaged their employees in change management tools through the awareness, desire, knowledge, ability and reinforcement model (AKDAR) to assist the company in creating awareness on the need for change an enhance the desire in the people to help in the transition. Employee engagement helps in facilitating changes through forums such as the provision of knowledge to assist in acceptance and reinforcement to internalize and withstand change.
Communication
The Coca Cola Company in its desire to facilitate the change management process would have engaged its main stakeholders such as the employees and consumer in productive and consequential dialogues and talks (Kotter, 2012). Conducting online and paper surveys form all stakeholders and analysis of their views on change were instrumental in dealing with the challenges of decline in sales and consumer protests. Effective communication is essential to inform the stakeholders on the intended changes, reasons for the changes, details of the action plan and the expected benefits from the sales. Communication helps the company to gain insights on stakeholder’s perspectives which influences their overall decision on change.
Conclusion
The business environment presents a volatile environment which makes changes inevitable. The focus of many companies is based on the process of evolution as opposed to avoidance of change. Change management and transition in companies can be made effective through communication and engagement of stakeholders in the change process. Companies should consider factors such as structure design, culture, management, and leadership to determine the suitability of change in a particular organization and to ensure that it is in line with its goals and objectives.
References
Kotter, J. P. (2012). Leading Change, With a New Preface by the Author. Boston: Perseus Book LLC Ingram.
