OPTIMIZATION OF ORGANIZATIONAL FINANCIAL PERFORMANCE

Olga Andrea Faundez Sánchez

FINANCIAL ADMINISTRATION

IACC Institute

March 23, 2020

 Development

ITEM I

The company that I chose is a multinational company that is “Coca-Cola Company”, for which
its analysis will be carried out based on its administrative structure, which is considered a formal
structure and this will be reflected with respect to the fact that this company has A structural
organization chart that allows them in this specific case to demonstrate their hierarchical levels,
taking into account that organizational levels exist because there are certain limits regarding the
number of people that only the manager should and can supervise with some certainty. Based on
the duly formal organizational structure that Coca-Cola implements, this is more than
demonstrated with respect to its objectives, since it has a great structure in addition to the
existence of specific personnel that in a certain way represents this organization. based on a
section of this company.

- Regarding the size of this company, which is the Coca-Cola Company, its number of
officials based on percentages and without less valuing its market participation, it is one
of the largest in the world at a national and international level, obtaining a market value
in millions of dollars. Dollars. And seeing as an example that in the US alone it is one of
the most recognized brands in the world, in addition to the calculation of personnel that
works both directly or indirectly is an approximate of 8,000,000 people and it is only an
approximation, since currently there is no real accurate calculation, since a real value
cannot be obtained, since they hire personnel every day because they are a multinational
brand.
- Their strategy has been a certain set of plans, in addition to actions regarding planning
since they create and satisfy demand, since they generate sufficient profitability in
addition to adding value to their organization, due to their development regarding human
resources, Since I worked in this company and I realized that they strengthen, in addition
to operating a real quality system. And based on everything mentioned above, they
develop actions and objectives that have finally achieved success in the market.
- Regarding the environment, if we see it from a point of view, this is a set of internal
factors, since Coca-Cola is a company that offers its workers based on a global system
and with great opportunities to develop skills, in addition of professional careers, as it is a
consolidated company, it offers its staff to develop based on knowledge. They have a
culture in which they transform their passion into action and not to mention their salaries,
they are in the market a company with great competitiveness, and this is due to their level
in terms of being a leading company worldwide.
- Based on technology, they have an implementation of techniques regarding knowledge to
be able to satisfy certain needs and resolve problems in the company. This company
stands out based on its technology, especially in the field of inspection, since they ensure
suitability with respect to their manufacturing processes, since they are characterized by
putting their innovation into practice so that in a certain way they can guarantee their
quality standards, and above all, abide by its standards based on quality, safety and,
above all, take care of the environment.

DESIGN OF A FORMAL ORGANIZATIONAL STRUCTURE:

 - Division of work:

 DIVISION OF WORK: Job positions are designed, that is, each worker knows his or her functions. The success of the
Coca-Cola company could not be explained without its workers, with specialized personnel to carry out functions in
each area.

 DEPARTMENTALIZATION: The division of work causes the organization to be departmentalized according to the
criterion of similarity of functions, into activities grouped and identified by the same functional classification.

 FUNCTIONAL DEPARTMENTALIZATION: The division of work is carried out according to the capacity and ability of
each person, some of the people deal with finances, others with personnel administration and others with production.
Functional departmentalization also consists of grouping activities and tasks in relation to the functions carried out in the
company.

 GEOGRAPHIC DEPARMENTALIZATION: Territorial departmentalization is generally used in companies that cover

large geographic areas and whose markets are extensive; especially attractive for large-scale companies. In the case
of Coca-Cola, geographic departmentalization occurs mainly in the marketing and production areas.

 CHAIN OF COMMAND: Each official will know who he or she should address, so each boss will also know which
official will be in charge.

 COMMUNICATION CHANNELS: The communication channel at Coca-Cola is through the spoken medium,
through reports, emails. Between divisions, the communication channel is through Memo and the external
communication channel is through formal communication or email.

 ACCOUNTABILITY: Accountability must be made through the chain of command. This is because they must follow
the regular course when they need to be accountable.

ORGANIZATION CHART: It is the graphic presentation of the structure of a

company, so you can see different divisions, departments, subdepartments.

The organizational chart presented by the Coca-Cola Company is micro-

administrative in nature, since it corresponds to a single part of the company in which
they work. Due to its purpose, it is informative and its objective is to be made available
to the public, therefore it only expresses part or units of the company, its lines of
relations and advisory units. Regarding its scope, it is general, since it contains
representative information of an organization up to a certain hierarchical level. Due to
its content, it belongs to the integrals, which graphically represent all the administrative
units of an organization, and their hierarchy or dependency relationship. Finally,
according to its presentation, it is vertical, since it presents the units branching from top
to bottom starting from the holder.

The company is an SME producer, processor and marketer of canned fish and seafood, “Neptuno
SA”. Located in the city of Tocopilla, for distribution nationwide, responding to an old aspiration
of the unions of artisanal fishermen and shellfish divers of this city.
Formal Organizational Structure

1 Division of Labor: Refers to the specialization and distribution of work, the jobs that exist in
the company:

General Manager: Direct the company in all its aspects, verify the market, competition and
business opportunities, establish objectives and goals for the organization.

Administration and Finance Manager: Worry about the company's budgets, solvency and
liquidity, credit opportunities, negotiations with financial institutions.

Production Manager: Responsible for supervising production in the fish and seafood lines to the
heads of each area, the operators, the times, the use of raw materials, and preparing management
reports regarding production.

Human Resources Manager: In charge of paying salaries and pension obligations, verifying the
entry and exit times of workers, reporting to the accountant the monthly accounting regarding
salaries and related aspects.

Sales and Marketing Manager: Supervise the work of sellers, study the market, see possibilities
for improving sales, prepare advertising proposals, report monthly sales reports to the
Administration and Finance Manager and accountant.

Management Secretary: Reception, classification and order of relevant documentation. Respond

to management requirements.

General Accountant: In charge of preparing monthly financial statements, preparing a budget

together with the Administration and Finance manager and reporting variations. Supervise the
Accounting assistant and the Finance assistant. Verify that the operations that are recorded daily
correspond. Prepare monthly payments, monthly tax returns (form 29) and prepare annual
income.

Accounting Assistant: Record the economic events that occur daily, support the general
accountant in whatever is required regarding accounting.
Finance Assistant: Support the general accountant regarding payments and collections to be
made within the organization.

Human Resources Assistant: Support the Human Resources manager in the monthly preparation
of the remuneration payment sheet, request signatures for contracts, annexes, overtime
agreements, permits and anything that requires a worker's signature.

Warehouse and inventory manager: Responsible for maintaining stock of canned goods from
both lines, issuing purchase orders, maintaining the warehouse, and carrying out inventories.

Operators: workers involved in the different stages of the fish and seafood canning process.

Sellers: Market canned products and report sales to the general accountant daily.

2 Functional Departmentalization

The company has a General Manager and Four Managers in Functional Areas: Administration
and Finance, Production, Human Resources and Sales and Marketing. In the Administration and
Finance Management there is the Manager, the General Accountant, Accounting Assistant and
Finance Assistant. In Production there is the manager, 1 head of the fish area and another head of
the seafood area, each one in charge of 10 operators and the person in charge of the warehouse
and inventories. In Human Resources, in addition to the manager, the Human Resources
Assistant works with the General Accountant to pay salaries. The Sales and Marketing
Management consists of a manager and three salespeople who must report sales to the General
Accountant.

3 Chain of Command: Responsibilities are defined for each position, which people will be in
charge and to whom they must report.

General Manager: Manages the company.

Administration and Finance Manager: is in charge of the general accountant and the accounting
and finance assistants. Must report to the General Manager.
Production Manager: in charge of fish and seafood area heads, 20 operators and the warehouse
and inventory manager. Must report to General Manager.

Human Resources Manager: an assistant in your charge. must report to the General Manager.

Sales and Marketing Manager: Responsible for three salespeople, reports to the General
Manager.

Management Secretary: Must report to the General Manager.

General Accountant: in charge of accounting and finance assistants, reporting to the

Administration and Finance Manager.

Accounting Assistant: Must report to the General Accountant.

Finance Assistant: Must report to the General Accountant.

Human Resources Assistant: Must report to the Human Resources Manager.

Warehouse and inventory manager: Must report to the Production Manager.

Operators: report to the fish or seafood area manager.

Salespeople: supervised by the Sales and Marketing Manager, must report to the General
Accountant.

4: Communication Channels:

General Manager: Communicates with Administration and Finance, Production, Human

Resources, and Sales and Marketing managers in scheduled meetings to receive information on
company and staff performance.

Administration and Finance Manager: Interacts with the General Accountant in order to receive
administrative - accounting documentation and signatures.
Production Manager: Interacts with the fish and seafood area managers, supervising production,
interacts with the General Manager when delivering production reports, interacts with the
warehouse and inventory manager.

Human Resources Manager: Interacts with the Accountant when reporting monthly salary
postings.

Sales and Marketing Manager: Interacts with salespeople, supervises them, and with the
Accountant, delivering monthly sales reports.

Management Secretary: Must meet the requirements of the General Manager and coordinate with
the other Managers.

General Accountant: Prepares financial statements with the Administration and Finance
Manager, requests monthly salary accounting from the Human Resources Manager.

Accounting Assistant: Records economic events daily in the accounting system and passes the
reports to the Accountant for signature.

Finance Assistant: Makes payments and collections for the company, reporting to the accountant
and passing the information to the accountant once a week for signature.

Human Resources Assistant: Prepares payment sheets, remunerations and delivers reports on
everything related to human resources.

Warehouse and inventory manager: interacts with operators, is supervised by the Production
Manager.

Operator: supervised by an area manager and interact with the warehouse and inventory
manager.

Salespeople: They are supervised by the Sales and Marketing Manager and must report daily
sales to the General Accountant.
5: Accountability Accountability is related to the chain of command and communication
channels. It refers to the definition of which people or positions the work will report to, already
described.

6 organization chart:

General manager

Management
Secretary

Administration and Human resources Sales and

Finance Manager Production manager manager Marketing Manager
 Head of Fish Seafood Assistant
General HR Sellers
counter Area Area Head

Operators Operators

Accounting Finance
assistant Assistant
Warehouse
manager.

The organization chart represents the structure of the company, in which the managements that
make it up and their respective areas can be visualized, it illustrates the chain of command and
the communication channels, which are given on a hierarchical scale and in relation to the latter,
the accountability in the organization.
The structure of the organization defines how work tasks are divided, grouped and coordinated,
therefore, its design is a tool through which different tasks to be performed are defined, which,
when coordinated, effectively order activities, processes and operation. of the company, leading
to the manufacturing of the product with efficiency and effectiveness.

The structure of the organization also integrates an informal structure that is made up of
interactions and social relationships between people located in various positions in the
organization. They are people who, without being from the same functional unit, department or
hierarchical level, meet and form interest groups due to emotional motivations, similar tastes and
interests or need for acceptance beyond the job. It is a social structure that can influence the work
of an organization in a positive or negative way. It does not appear on the organizational chart or
any other formal document. It represents a form of activity outside the network of authority and
the system of regulated information flows. An example is the Neptuno SA bowling team made
up of the Human Resources Manager, the management secretary, the Finance assistant, the
secretary's husband, an operator and a salesperson.

ITEM II
For the same company mentioned above specifically the management

Objective 1 : Increase the level of sales by 20%.

Strategy1 : Corporate growth strategy, tactical cost leadership strategy, operational marketing
strategy through frequent high-impact promotional activities.

Objective 1: Increase the level of sales by 20%.

Element Definition
Aim Increase the level of product sales by 20%.
 KPI 1 % Market Share.

KPI 2 % of revenue from new products.

KPI 3 % of income from new clients or geographic

areas.
Responsible for its management Marketing Manager, HR Manager
Formula, scope and dimension KPI 1 (Total company sales/total sector sales) *100
= Market percentage

(New product sales/total sales) *100

KPI 2 = % of income from new products.

KPI 3 (sales to new customers/total sales)* 100 = %

new customer revenue.
Review Frequency Quarterly
Information sources Sales reports and quarterly growth reports

Base level From 10% market share

Expected goal 20% market share in one year
Action policies Undemanding Very demanding
Demanding

80% of the 90% of the goal or

Goal goal more

Objective 2: Position ourselves among the five most important brands in the country.

Strategy 2 : Corporate growth strategy, differentiation business strategy (differentiating

products, creating unique natural products, positioning by attribute).

Objective 2: Position ourselves among the five most important brands in the country.

Element Definition
Aim Position yourself among the five most
important brands in the country
KPI 1 % Market penetration

KPI 2 Number of total clients.

 % of satisfied customers.
KPI 3

Responsible for its management Marketing manager

Formula, scope and dimension KPI 1 (Purchased volume of the brand / by total
volume of the category) *100 = market
share (SOM).

KPI 2 Absolute count.

Satisfaction survey.
KPI 3
Review Frequency Quarterly
Information sources Company sales reports and total market
sales reports, customer surveys.
Base level Eighth position
Expected goal Third position
Action policies Undemanding Very demanding
Demanding

60% of the 80% of the The goal or

Goal Goal surpass it
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