The input to this system
The Coca-Cola Company is arguably the most recognizable company the world over. Although its trade secret is closely guarded, its operations follow a clearly laid out system that can be identified by a myriad of factors. Its manufacturing operations strive to convert inputs into finished outputs. The company’s bottling department is involved in a range of processes aimed at transforming resources into bottles and cans of some of the world’s most favourite beverages (Regassa & Corradino, 2011). The input to the Coca-Cola as a system comprises of employees, managers, machinery, technology, and its franchises. Given the highly competitive nature of the beverage industry, the Coca-Cola Company counts on its several franchises to continually improve its processes in a bid to meet the highest quality standards that the company has come to be associated with. The secret formula of the company is another major input.
The output
The primary output of the company is the finished resources: cans, bottles and soft drinks. The high-tech bottling and canning processes employed by the company ensures the production of strong and light packaging materials, including bottles and cans. The syrups and a broad rang of other beverages are also the company’s output (Regassa & Corradino, 2011). Given Coca-Cola does not produce the end product, its output process are presently the greatest sources of uncertainty. The company manages to stay ahead by pushing its franchises to produce high quality beverages. As the overseer of hundreds of franchises and subsidiaries, the Coca-Cola Company strives to manage and demand the outputs at the end of the chain of production.
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Boundary of the system
Coca-Cola’s boundary could be said to be its closely guarded trade secret that defines the inputs and outputs and keeps competitors at bay. Additionally, Coca-Cola’s corporate brand, which is as much about America as it is about refreshing soft drinks is also said to form its operational boundaries linking inputs and outputs (Jofre, 2011).
Components of the Coca-Cola Company
Following Mintzberg’s generic organizational model, the Coca-Cola Company is made up of five components: the strategic apex, which is made up of top-level management and personnel tasked with ensuring that the company’s franchises operate within its mission while maintaining a working relationships with other components and the environment (Jofre, 2011). The Middle line personnel, on the other hand are tasked with actualizing plans. The Technostructure and the support stuff ensure that the company’s administrative functions are carried out as needed.
Constraints
The company faces a myriad of challenges owing to the fact that it is a multi-international company with many variables to balance to ensure smooth operations. For instance, each of Coca-Cola’s market segments has its own unique and trends and demands that must be taken into account. The company also faces constraints stemming from the varying socio-political and cultural differences in its markets. In the US, for instance, consumers, particularly of soft drinks are increasingly becoming health conscious. Besides the political challenges stemming from its operations across the globe, there is also the constraint of raw materials, as some of them can only be sourced from a few limited sources (Raman, 2007).
Purpose
Besides profit maximization, which like any other company is Coca-Cola’s primary purpose, it seeks to instil a sense of unity and pride into its workforce. The other purpose of the company is to market its outputs outside of the United States through its franchises and a wide system of distributorship. Despite its quest to inspire consumers to create moments of optimism and happiness, the company also seeks to create value in its products and make a difference. In engaging in wide range of CSR activities, the Coca-Cola Company hopes to fulfil its purpose of making a difference in the world. The company also purposes to be a highly effective and fast-moving organization in a bid to maximize long-term returns to its shareholders while giving back the community. Arguably, the Coca-Cola Company exhibits a wining culture in many aspects of its operations, both within the parent company and the franchises and subsidiaries.
Interfaces
The Coca-Cola Company’s interfaces are made up of many factors, including transaction costs, corporate strategies, Corporate Social Responsibilities (CSR), standards, modularity, and innovation and its management. Most of the company’s transaction costs are the exchanges of information and technology, commerce, and marketing (Raman, 2007). The company manages its transaction interfaces by standardizing the interface by focusing on non-transaction related interfaces. Given the company is primarily a series of interfaces between the various units of production, manufacturing, and distribution, franchises, departments and personnel, the effective communication between these factors, the company emphasizes on the creation of transaction interfaces.
Environment
A myriad of factors within and without the company’s system affect its day-to-day business operations. The influence and interconnectedness of the internal and external forces that the company finds itself in make its environment complex and difficult to navigate. In the US, for instance, the Coca-Cola company is struggling to cope with inter-woven factors: sociocultural, political and natural environment (Raman, 2007). The company has in the pas been hipped with negative criticism for its operations in India, including claims of damaging the local water supply systems and pollution. Internally, the company employs a wide range of techniques to deal with its stakeholders. Strategic tool, for instance has been the company’s go-to tool for managing its interactions with internal environment. Overall, the company has made huge strides in managing most aspects of its internal environment, but the same is yet to be reflected by its external environment.
References
Jofre, S. (2011). Strategic Management: The theory and practice of strategy in (business) organizations. DTU Management. Retrieved August 26, 2017 from http://orbit.dtu.dk/files/5705108/rapport1.11.pdf
Raman, K. R. (2007). Community—Coca-Cola Interface: Political-Anthropological Concerns on Corporate Social Responsibility. Social Analysis, 51(3), 103-120.
Regassa, H., & Corradino, L. (2011). Determining the value of the coca cola company — a case analysis. Journal Of The International Academy For Case Studies, 17(7), 105-110.
