Cocoa Cola System

Introduction

Systems theory which is "the transdisciplinary study of the abstract organization of phenomena: independent of their substance, type or spatial or temporal scale of existence" (Sudana Rao, 2011, p.2) has been used to help understand and is beneficial in guiding change within organizations (Sudana Rao, 2011). According to this theory in order to fully understand an organization as a whole it is important to first understand and view the organization as a system and understand how the individual parts of the system function interdependently (Kotelnikov, nd). The first step in understanding how systems theory can help initiate change within an organization is to understand what a system is. A system is typically made up of smaller subsystems that all work together to accomplish a goal or a set of goals. Systems are often systematic, meaning that the entire function or flow of the system can be affected if one of the subsystems is changed (Sudana Rao, 2011). A system can either be closed or open. Most systems are considered to be open. Anytime an organization uses environmental resources such as information, material and personnel they are considered an open system (Sudana Rao, 2011). Within an open system these environmental resources are considered inputs. Inputs are received from the environment and in exchange outputs are released (Sudana Rao, 2011).

Taking a systems approach to management allows you to view an organization as a system made up of individual business sections. Although each business section has its own role and responsibility the overall effectiveness of the entire organization is what is of importance and not necessarily the effectiveness of each subsystem (Francis, 2010). Within this approach the system as a whole is made up of five basic parts: input, process, output, feedback and environment (Francis, 2010).

Inputs are considered the basic concepts and material the organization uses such as personnel, ideas, money and technology. Processes are the activities and functions used by the subsystems to generate outputs from the inputs. Outputs are tangible and include the results, products or service generated by the organization(Mc Namara, 2005). The environment is either internal or external. The internal environment is those things within the organization while the external environment is thing outside the organization but can affect the organization such as the economy and technology. Lastly feedback is used within the system to help with evaluation and provide the organization with the data needed to learn and adapt (Mc Namara, 2005).

Content and Analysis

The Coca-Cola Company is a large global organization. One of the way in which this organization has been able to grow so large and continue to remain effective is due to the Coca-Cola system. This system from both a legal and managerial perspective consists of Coca-Cola and more than 250 bottling partners (Coca-Cola, 2014). Although most, including Coca-Cola's consumers view Coca-Cola as a single entity, each of these bottling partners are responsible for manufacturing, packaging, merchandizing and distributing the products to consumers and vending partners(Coca-Cola, 2014). Because the organization is made up of numerous smaller entities it is important that each of these subsystems work together as a whole to remain effective (Coca-Cola, 2014).

I have chosen to use the S-Model to evaluate the Coca-Cola Company as a system. This framework looks at seven elements with an organization to determine their effectiveness and whether or not the organization will be successful. The seven elements used in evaluation are strategy, structure, systems, style, skill, staff and shared value (Kotelnikov, nd).

Shared values is at the center of the model and analyzes the organizations belief and values (Kotelnikov, nd). Coca-Cola beliefs and values are clearly defined in their mission, vision and values. These beliefs focus on the goal of the organization and the benefits to the stakeholders.

The second element of evaluation is strategy and focuses on the plans an organization has in place to reach their stated goals (Kotelnikov, nd). Coca-Cola has put in place a specific strategy in order for them to attain their "2020 vision" (Coca-Cola, 2014). This vision as stated is a part of the organization's long term goals. The strategies the organization has outlined will work to create a winning culture within the organization and make their 2020 vision a reality (Coca-Cola, 2014).

The third element of the 7-S Model is structure. The structure within an organization indicates the organizational structure and how the business units within the organization relate to each other (Kotelnikov, nd). Coca-Cola previously held an extremely formal centralized organizational structure. The hierarchy of authority and managerial processes was clearly outlined. Due to criticism of this structure, the organization has begun to decentralize in order to become a more localized global organization (Coca-Cola, 2004).

Systems is the fourth key element in evaluating the effectiveness of an organization using the 7-S model. Systems define the flow of the organization to include inputs, process and outputs(Kotelnikov, nd). In order to produce a product that has the same high quality each time it is consumed, the Coca-Cola Company works to ensure that they have in place standard process and develop close relationships with their bottling partners out of mutual concern for a quality product (Coca-Cola, 2004).

The last three elements of the 7-S model: skills, staff and style although just as important as the first four, are "soft Ss" (Kotelnikov, nd). The style refers to management's behavior in the company's effort towards attaining established goals. The staff refers to the personnel within the organization and the skills refer to the competence of the personnel within the organization (Kotelnikov, nd). Coca-Cola employs more than 900,000 employees from all over the world. Management is selectively placed throughout the organization and possesses both global and worldly mindsets. Coca-Cola works hard to reward and develop its employees providing employees with a series of developmental opportunities including the Coca-Cola University. Each employee brings with them their own unique talent and is placed in positions within the organization that help the organization