Planning

The vision of the Coca-Cola Corporation is to become the biggest and the best anchor bottler in
the world and its mission is to refresh everyone which guides its management team in the
planning process.

The top management of the company engages in formulating five year longer term plans as
well as shorter term planning for the next year or so. The idea behind this type of planning is
to have a strategic vision extending over a longer period as well as a flexible and adaptive
strategy to change according to the imperatives of its external environment.

Apart from this strategic planning, the top management at Coca-Cola also engages in tactical
planning in consultation with the middle management who in turn acts on the feedback from the
salespersons on the ground.

The planning at Coca-Cola entails setting targets for all employees at all levels that are
periodically reviewed for either success or failure in meeting the targets and in case of the latter,
feedback is sought from the managers and the employees who have failed to meet the targets
about the reasons for the same. This is then incorporated into the decision making loop so that
the next year’s plan can address and redress the shortcomings as well as set new targets taking
into account these aspects.

An example of how planning at Coca-Cola works can be gauged from this year’s target for the
managers to increase sales by 20% over last year’s target and increase the total customer based
by 10%.

This is the micro level planning which is complemented by the macro level planning which can
be seen from the objectives of increasing market share ranging from 5 to 30% for the middle
management in the various markets in which it operates. Further, there are operational goals
which are set for the salespersons on the ground and which are to do with the point of sale and
the other front end supply chain interfacing roles to actualize coordination and cooperation
among the partners, bottlers, vendors, and distributors.

Organizing
Coca-Cola follows the decentralization within centralization model of organizing itself. This
means that while the global headquarters retains its overall decision making, the corporation is
divided into regions and geographical territories in which it operates. These regional divisions
are then organized into the functional departments which in its case comprise the Production,
Industrial Relations, Sales and Marketing, and Human Resources departments.

The key to understanding the organizing function at Coca-Cola is to recognize that

employees with similar skills and common work functions are grouped together. This helps
the company avoid redundancies in problem solving processes as well as bestowing a certain
functional autonomy at all levels.
Further, the organizing function at Coca-Cola follows the maxim of the span of control not
exceeding five direct reports which means that no employee has more than five others reporting
to him or her. Having said that, it must be noted that there is cross functional reporting as well
which is in the case of the managers and the functional heads reporting to the other divisional
heads in addition to the country heads.

Moreover, the managers at all levels are afforded a high degree of autonomy which empowers
them to decide according to the specific local needs.

Finally, the organizational structure is such that redundant layers in the hierarchy are eliminated
and the layers of direct and dotted line reporting ensure that information flows through the
organization without the clogging of the organizational arteries due to bureaucratic mindsets as
well as blockages due to communication gaps.

The overall responsibility for each country or region is with the country or regional head and the
functional heads under him or her also report to the global functional heads. Similarly, the
responsibilities are clearly defined which means that accountability is taken care of as is the
aspect of transparency.

Leading
Though Coca-Cola is organized around geographical regions and then the various departments
for each region, the company emphasizes the importance of transformative leadership at both the
Global and the Local levels.

This means that local managers and the heads of departments in addition to the Country Heads in
the various markets that the company operates in are free to decide on the appropriate strategies
for their territories as long as they conform to the global norms and global culture that permeates
the organization. This decentralization within centralization is the hallmark of the Glocal
approach which has been stated in the thesis.

Apart from this, the leadership at Coca-Cola believes in a democratic and laissez faire
approach to leading which is necessary considering the business it is in which is heavily
dependent on both the macro level vision and mission that need to be translated and transformed
into micro level execution.

Typically, the General Manager is at the top of the regional hierarchy who in turn reports to the
country head. These general managers have other managerial subordinates such as the ones
referenced for this article who have mentioned how the organization practices behavioral
leadership that is based on acting on the specifics of the situation at the micro level.

The managerial styles of these managers also follow the incentive based system for actualizing
peak performance from the salespersons. In this system, monetary and non monetary incentives
are provided to the salespersons to motivate them and make them meet or even exceed their sales
targets.
The monetary incentives include pay hikes, bonuses, and commissions based on the sales
achieved whereas the non-monetary incentives include vouchers for vacations, travel, and
discounted holiday packages for the employee and his or her immediate family.

Controlling
The controlling function in Coca-Cola is done through periodic reviews of managerial and
salespersons performance. Towards this end, an appraisal system based on objective evaluation
of whether the employee being appraised has met his or her targets forms the backbone of the
controlling function in the company.

Though managerial performance goes beyond evaluation of targets and their compliance as the
managers typically perform other roles such as people management and strategic planning, the
salespersons are appraised based on the Sales Person’s reporting system and the Sales Person’s
evaluation system.

The former tracks the activities of the salesperson on a daily basis whereas the latter is done
according to the appraisal cycle and the results of which are used to determine promotions,
bonuses, and other incentives. The evaluation period is usually a year for sales managers whereas
it is a quarterly cycle for the market development roles, and a monthly cycle for the salespersons.

Apart from these performance measures, the employees are also evaluated according to their
contribution to the actualization of the overall goals of the organization as well as on their soft
skills including communication, people management, coordination, and service quality.

Further, the controlling function also ensures that a performance development plan is prepared
which takes into account the salespersons meeting the targets such as growth in sales, market
development, and completion of customer and partner calls including conversion of cold calling,
attendance, and the punctuality of the salesperson.

The key point to note about Coca-Cola’s controlling function is that it follows a Glocal approach
wherein the performance measures vary according to the local conditions of the markets in which
it operates.

Management Function

PLANNING

Definition

Planning is the process of setting goals, developing strategic, outlining tasks and then deciding how best
to accomplish them. As a result of the planning process, everyone in the organization knows what
should be done, who should do it, and how it should be done. It is a detailed programmed regarding
future course of action. Plan also a blueprint specifying the resource allocations, schedules, and other
actions necessary for attaining goals. It defining goals and then determining the activities and resources
required to achieve them. Planning can be difference of type, an organisation can classify some of the
important types of plans which are the financial and non financial plans, formal and informal plans,
specific and routine plans, strategic and functional plans, long range and short range plans and the last
administrative and operational plans. Planning function is important to the managers, managers need to
plan so that the worker’ activities are consistent with the organisation goals and the correct type and
amount of resources also can be acquired. A planning function requires information, judgment and
decision making.

Theories

According to Dror (1974), he says that planning is the process of preparing a set of decision for action
in future, directed at achieving goals.

According to Professor Stoner (1997), he says that planning is of establishing objectives and
appropriate courses of action before taking action.

According to Archibugi (2008), say that planning is a method of making rational decision; a method
that is, to some extent, common to many areas.

Real Practice

For a Coca-Cola company, planning is very important to them because according to Joel Ross and
Michael Kami theory, they think that an organisation without the strategy planning is like a ship without
a rudder, going around the circle. It’s like a tramp that is no place to go to. Strategic planning,
implementation and formulation are the core management function. One of the biggest factors for
determining whether the organisation performs up to its potential or not is the extent to which the
management team performs, the strategy making and strategic implementing function. Coca-Cola
organisation thinks that only the good strategic and good implementations are the most trustworthy
proof of good management. A strategic plan is the bridge of the future, which an organisation uses to
lead from what it is to what it envisions it can become.

Planning also can be a future course of action. Planning is concerning itself with look forward into the
future and determining the vision, mission and objective of the project or program. Vision is that
provides the overall frame of reference within which mission statements are written and goals selected.
It also is the desired future state of organization. According to Peter F. Drucker, objectives are essential
in all the key areas where performance and results directly contribute to the growth and survival of a
business. The vision of the Coca-Cola organisation is to become the best and the biggest anchor bottler
in the world. They mission are to refresh the world, to create value and make a difference everywhere
they engage. In the Coca-Cola organisation, most of the goals setting and planning activities are handling
by the top management. The top manager had set three objectives for the Coca-Cola organisation. The
objectives of Coca-Cola can be classified as the strategic goals, tactical goals and operational goals.
Strategic goals are statements of what an organisation wish to achieve over the period of the strategic
plan likes over the next years, next five years. The strategic goals are considered when company is
thinking of the long-term objectives. This strategic goal is set up by the top management with
consultation by the parent company head quartered at Singapore. The top managers have to make sure
that they are in line with the changing environment that they have to review in the annual meeting
every year. This goals is to make sure that Coca-Cola company can continue provide the quality products
to the valuable customers, to project an outstanding corporate and try to satisfy the customer through
extra ordinary service and an excellent service along with the complete tactical and operational support.
The managers also need to select and retain in professional people for the organisation. Another, the
tactical goals which are define the outcomes that major divisions and departments must achieve for
organization to reach its overall goals. The top managers of the Coca-Cola Company on an annual basis
devise these goals together with the consultation of the lower level employees. After that, each
departmental director have to subdivide the annual tasks on the quarterly or monthly basis to have a
proper check to make sure that these objectives are achieved mainly through the marketing after the
annual tasks is given. For this year, managers need to ensure that Coca-Cola can increase the revenue by
20% of the compared last year and increase the total retail customer around 10%. They also have to
increase the market share by 5% and 30% of the reactivate the discounts of customers. Last, the
operational goals which is that the managers set to ensure that each employees can achieve their own
goals and told what are expected of them and then they are evaluated on the basis of certain rules and
regulations followed evenly by the company. This operational goals may arise some issue which is
some fresh salesman cannot reach their goals so the managers need to ensure that the salesmen can
find the new customer, retain existing one and bring back the discontinued accounts by giving them
some training.

In addition, planning is vital in making management decisions. Decision making is the study of identifying
and choosing alternatives based on the values and preferences of the decision maker and it is the
process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to
be made from among them. A bad decision making will have a bad result so a good manager must good
in decision making, they have to must sure that every decision they make is good for the organisation.
The decision making process in the Coca-Cola company is centralized. There are six step in the decision
making of the Coca-Cola company which are recognize need to make decision, generate alternatives,
assess the alternatives, choose among alternatives, implement choose and last the learn from feedback.
In Coca-Cola company, decision which always takes by the top manager can related to the packaging
positioning, trade discounts, advertisement, price reductions and distribution.
So as a conclusion of planning, planning is the first tool of the four functions in the management
process. It is rightly said “Well plan is half done”. Compare to the theory and real practice, both of them
are concerning with the future action which is how to achieve the organisation’s goals with those
objectives that are setting up by the managers. The difference between a successful and unsuccessful
manager lies within the planning procedure. So for me, a successful manager should have a planning
skill for achieve the organisation’s goals.

ORGANISING

Definition

Organising is one of the four managerial functions which focus on allocating and arranging human and
non-human resources so that the plans can be carried out successfully. It also means constructing an
organisational structure that is compatible for the accomplishment of the agreed purposes, lines of
authority, and responsibility defined, and a system of rules and procedures which lead the performance
of subordinates lay down. Organising is how the plan will be carried out so the goal is achieve. Once a
plan is planned, the next step in the progression is to agree on which individuals will need to be include,
who will be in charge, who will keep individuals held responsible, and what resources will be
necessitate, who will be in charge for getting those resources, who will keep an eye on the progress?
Those phases are all part of the organising process in the project. Hence, organising is next to planning
because once the plan is planned, the next natural move in the progressions is to get organised so the
plan comes to fruition. Organising is also the talent of receiving people who do not work for you to
realise things. As a conclusion, organising refers to the categorising of activities and possessions in a
reasonable way.

Theories

According to Chester I. Barnard (1886-1961), “the acceptance theory of authority, which states that
people have free will and can choose whether to follow management orders. An order is acceptable if
the subordinate understand it, is able to comply with it, and views it as appropriate given goals of the
organisation”.

According to Chester I. Barnard (1888-1961), “organization allows people to achieve what they could not
achieve as individuals.

REAL PRACTISE
Base on the basis functional approach, Coca-Cola Company is divided into different departments in the
real practice. Individuals who possess the same on the basis of common skills and work activities are
grouped together. This method helps the company in attaining the economies of scale through high
excellence of problem solving and lesser needs of guidance of the subordinates. Coca-Cola Company is
leaded by the General Manager. There are a total of five mainly departments at Coca-Cola Company
which are Production department, Industrial Relation department, Sales and Marketing department,
Human Resources department, and Finance and Accounting department. Each department has their
own functions and responsibility toward the company. Production department is in charge for the
overall production of the Coca-Cola Company. Industrial Relations department is in charge for handling
with problems connected to the operational surroundings of the staff and the matter linked to the labor
unions. Sales and Marketing department is accountable for the producing the goods obtainable in the
market and to deal with the problems associated to the advertisements of the goods. Human Resources
department is in charge for looking the proficient pool of workers, choosing the professionals and make
them pleased so that they should remain faithful to the company. Finance department deals with overall
costing and pricing of the goods. They also deal with the trade in correlated concern of the company.
Accounting department lend a hand to the sales department in making bill of lading and payroll entries.

Example hierarchy of Departmentalisation for Coca-Cola Company:

Figure : The departments under the General Manager of Coca-Cola Company.

Coca-Cola Company each executive is made in charge for only a specific role that he or she expertise as
the work specialisation is important. Each salesman is encountering different type of individuals as there
is no tediousness or repetitiveness. The job is tough and promotions are based on performance. The
executive of Coca-Cola Company receives report from the Salesman. These Sales Managers are in charge
for the performances of the salesmen which they need to provide them timely comment. Assistances
are requiring to be provided by Sales Manager at any time and it is a problem connected to the
performance of the staff. The administrators keep an eye on an on-going basis toward these salesmen
which serves as an efficient managing mechanism. The staffs have a lot of power, liability and
information relative to the job that they are responsibility Nevertheless, every part of the information
and authority relative to the work is provided by their individual supervisors. These procedures are the
similar in the other subdivisions as well.

Figure
Coca-Cola Company each executive is made held responsible for the actions of his or her underlings. An
accurate advices and assistance is given at time to time to attain the purpose by the particular
executives. Every supervisor is responsible for motivating their juniors so as to increase the effectiveness
and efficiency of the staffs apart from the delegation. Human Resources department lend a hand staff so
they could recognise their potential and uses various technique to encourage them. In return, they offer
the most excellent to their supervisor. Thus boost their performance, excellence of work and consumer
satisfaction. The span of control is the amount of staff who report directly to a prearranged Coca-Cola
Company supervisor. It is most excellent to have a minimum of 3 staff and a maximum of 5 staff
reporting to their supervisor. This low pattern is as a result of the actuality that the organisation is a
perpendicular and there are various individuals having different works to do so. When there are more
than 5 individuals, it is hard to be managed. Hence when there is an utmost of 5 people, the possessions
and staffs still can be supervise in an effective manner.

To the extent that resources allocation is concerned, the executives of each department in the Coca-
Cola Company have the power to exploit the organisational assets whenever the assets are required for
the purposes of their department. Special permission has to be approved by other superintendents if
these assets belong to other superintendent. These resources may be capital, work force or other. When
there are required positions in Coca-Cola Company and not on reserve basis, employment will be
performed. The employment begins whenever a superintendent wants a salesperson. Foremost, it will
send to be agreed by the General Manager of Coca-Cola Company before sending it to Human Resource
department, HR.

Example of the recruitment process: