The Effectiveness Of The Control Mechanisms Of Coca Cola

Effectiveness of Coca Cola’s Control Mechanisms

Control mechanisms are put in place by business organizations in order to ensure that business is run in a smooth manner and according to plan. These controls set activities for employees as well as direction in order to ensure that the company achieves its goals (Bateman & Snell, 2007). The main control mechanisms applied by Coca Cola include clan, market and bureaucratic controls. Coca Cola’s bureaucratic control mechanism is made up of regulations and rules that establish organizational authority regulate behavior of workers as well as set standards within the company. The market control mechanism is used as a tool to examine losses, profits and competition within the market. This economic information is used in business strategy development. The Coca Cola’s clan control mechanism has no formal regulations, analysis or rules. Its mechanism works under embracing of common company values, goals trust within the organization.

Coca Cola’s bureaucratic control mechanism has been effective in ensuring that the company operates profitably. The company has a set committee known as the Coca Cola’s Audit Committee Charter that is in charge of effecting this control. The committee evaluates the integrity of records of finance; it also oversees the evaluation of the company’s audit as well as implementing financial controls. This control has been greatly effective in ensuring the company runs profitably. The profitability of the company attests to the effectiveness of the application of this control (The Coca Cola Company, 2010). The code of business conduct serves as a guideline for that employees take. This control aligns actions to the values and goals of the company. As a result, Coca Cola has had its employees disciplined and able to work towards achieving excellence for the company. This can be said to be working well for the company because world over the Coca Cola’s employees play by the company’s rules. This is also what has led to the creation of consistency, uniformity and success in the all branches of its operation, and thus creating a big brand.

The company has also been able to utilize market control mechanisms to enhance its competitive edge. This is exemplified by the company’s creation of small units distributed geographically and by product. This has been greatly effective in enhancing its competition. As a result, of the breaking and distribution the company has been able to expand greatly and take up a large market share.

References

Bateman, S.T. And Snell, S. (2007). Management: Leading and collaborating in a competitive world. Mc Grew Hill/Irwin Publishers.

The Coca Cola Company, (2010). 2009 Annual Report on Form 10-K.Retrieved on 16^thAugust, 2010 http://www.thecoca-colacompany.com/investors/form_10K_2009.html

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