Assignment One: Coca Cola Company Analysis 1

ASSIGNMENT 1 ESSAY – COVER SHEET

21512 Understanding Organisations: Theory and Practice

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 Assignment One: Coca Cola Company Analysis 2

Analysis of Coca-Cola Company

Introduction
Generally, famous and successful companies provide vivid information for research or
educational purposes. This paper will critically analyze the organizational culture as well as
practice theory as the practical tools in the understanding organization and their management
protégé. Studying a company can be hard to archive without incorporating specific approaches to
assist in the investigation. Basically, this paper will analyze the Coca-Cola Company by using
the organizational culture as well as the Practice theory. The choice of Coca-Cola as the case
study of this article is inspired by how the company has been able to go global and keep their
revenue income increase year by year. The company is, however, rated among the top successful
companies in the whole world. These two theories will assist to investigate the Coca-Cola
Company and their ways of doing things, especially in how they have managed to thrive for
decades, surpassing their competitors by a tangible gap Shahzad et al. (2012). More so, a better
view of employee's co-relation with themselves and their superiors will be achieved. Such
theories will also depict how the organization managed to build up culture with a strong
foundation for many years, distinguishing Coca-Cola from other beverage companies. Their
ways of practice and how they offer their services will be analyzed by the practice theory and see
how they have adjusted to the current wave trends of technology and innovation.
Background and Overview of Coca-Cola Company

Coca-Cola is an American Company formed in 1892 by Asa Griggs Candler and was
fully engaged in the manufacture of syrup and Coca-Cola concentrate. Currently, Coca-Cola is a
company owned by shareholders, and the most significant shareholder is Warren Buffet. The
company is rated as the number one nonalcoholic beverage organization globally. Coca-Cola
Company is home to $15 billion products, counting Diet Coke, Fanta, and sprite, not to mention
but a few (Coca-Cola World 2015). The company has been diversifying towards offering a broad
of quality products that are limited in the market. More so, Coca-Cola holds a license of an
average of 500 beverage brands indulging itself in providing bottled water, energy, sports drinks,
and hot beverages. Being an international company, Coca-Cola serves a vast market of more than
200 countries. However, despite the company having a large market space, approximately 40%
of its revenue is majorly generated by the U.S market. Being a multinational company, the
 Assignment One: Coca Cola Company Analysis 3

company has a mission of refreshing the world, inspiring instants of happiness and optimism,
and value creation and making a difference. The company has a culture of believing that Coca-
Cola's success depends on its capability of providing a wide variety of optional beverages to
counter the customers' needs and desires.

Additionally, the beverage company holds a strong vision that associates several aspects
directly linked to the company. The company’s vision is to be a conducive environment for
people to work on to be inspired to do their best. Another concept is to be responsible citizens
who make a difference by assisting in building and supporting sustainable communities. Finally,
the company is willing to form collaborations with partners to create a mutually consistent value.
Theory of Analysis selection
Organizational Culture
Various institutions have specific values and ways of doing things around the business
and outside the organization. For a better understanding of culture in an organization, one ought
to put in use the theory of organizational culture to defragment and analyze a company.
Corporate culture can be described as comprehended personality and characteristics, which can
be traced through the origin of the company. There are several speculations that organizational
structure results from people and processes conducted by the organization while it is merely
unexpectedly tangible values (Morcos 2018). Morcos depicts the theory, corporate culture to be
an excellent tool to differentiate the tremendous successful companies from the rest in a specific
industry. The device can also be used to be of potent competitive advantage. When one examines
successful companies, their organizational culture is very distinct, which symbolizes their effort
in making their culture as a dominant priority.
Additionally, it is useful to get the correct definition of culture and the values it has on an
organization. Shahzad et al. (2012) provide specified data to describe culture as a collection of
attributes that define and differentiate an organization from others. Furthermore, culture is
summative thinking of minds that form a difference between people of one group to the other.
Further understanding organizational culture, it depicts cultural ideas which must be learned
from the organization as well as shared inside the surroundings of the organization. The concept
idealizes culture as a scheme of fundamental standards, which are able to be approximated that
members can label comparable institute culture even though the members can be of different
 Assignment One: Coca Cola Company Analysis 4

levels at different background inside the organization. Organizational culture is also associated
with the organizational system of the organization. Morcos helps use to breakdown
organizational culture into four filters. As much as many organizations have a common goal of
creating a conducive environment for their employees to be happy and comfortable, how they
archive can be unique; hence every culture is unique (Morcos 2018). Secondly, the core function
of managers in an organization is to provide clear guidelines and take their sub-ordinates through
them by example. Culture provides managers with clear guidelines in managing the organization
as well as finding appropriate employees to fit for the jobs. Companies hire employees who will
definitely thrive through the cultural guidelines of the organization, increasing the odds of
success. Thirdly, culture needs to be natured and grown just like any other relationship in the
organization, which describes it as fluid-like. Culture grows due to the external factors as well as
the growth of the company. Every organization aims to expand and grow, and when this comes
to reality, the missions and goals change, making the culture adjust to the changes. The culture of
most organization retains its core while they change their values. The fourth filter is enticing as
some organizations opt to create their external identity from the roots of internal cultures.
Organizational Culture in Coca-Cola
When one talks about Coca-Cola, the red color always pops up as their bright red color
with beautifully shaped bottles distinguishes it from the rest. In regards to organizational culture,
Coca-Cola has collective beliefs, principles as well as values of the company's members, which
makes them stand out in the beverage industry (Coca-Cola World 2015). The company’s culture
includes their norms, symbols, visions, language habits, not to mention but a few that originate
way back from history. The organization stories and heroes are among the culture that Coca-Cola
embraces and believes it can manipulate and alter their employers, depending on the leadership
of the company. More so, this can bring motivated employees and improve the effectiveness and
efficiency of their work.
A research conducted by Maisoni et al. (2019) narrates that, to see some of the effects of
the organizational culture of Coca-Cola in Indonesia, the cultural aspect of leadership goes hand
on hand with compensation on employee engagement. Both compensation and leadership aspects
have significant impacts on the level of employee engagement in Coca-Cola Amati Indonesia.
Conversely, it is believed that organizational culture does not affect employee commitment.
 Assignment One: Coca Cola Company Analysis 5

However, administrative ethos has a tremendous and progressive impact on the governance of
Coca-Cola present in Indonesia.

More so, the researches argue that with higher the organizational culture, the better the
company operates within the limits of leadership. Experts also agree that organizational culture
goes beyond the power and human orientation in the Coca-Cola. The same culture affects the
choices of leaders as there varies on the types of organizational culture; thus, the different forms
of leadership in the company. It serves as the observable character within the organization, which
drives the employees, and its results provide an outline of anticipated opinions and values. For
example, in Indonesia, the Coca-Cola company workplace environment works within the
corporate culture, which serves as the primary source of employee motivation, which dictates
their production levels. With a high engagement in organizational culture, employees perform
exceedingly tremendous and vice versa. Thus, the organizational culture promotes excellent
leadership, and in turn, with excellent leadership, it promotes employees' attachment, and they
become more engaged and accountable.

Practice Theory

It is a theory that is commonly referred to as Praxeology theory of social practices

comprises of a family of theories that seek to understand and give an explanation to the cultural
and social world. It does this by analyzing the standard procedures based on the knowledge that
interconnect on different practices to create other complex social entities like social fields,
lifestyles, groups along with entire societies. As outlined by the founder, Pierre Bourdieu, the
theory concentrates on the explanation of human relationship which obtains action together with
a global entity that is commonly known as the systems. The approach, in view, seeks to find
solutions to conflicts present on the classical social theory which accounts for the methods
between collectivist and individualist actions. Therefore, bringing a closer explanation on all
social phenomena when looking at the intentional personal acts. Practice theory is significantly
linked to Pierre Bourdieu, a French theorist and sociologist due to the concept of habitus that
represents the formulation of principles in theory. The notion of habitus is directly linked to the
stable internalization of social order experienced in the human body.
 Assignment One: Coca Cola Company Analysis 6

Additionally, practice theory uses the approach of highlighting principles considerations

that are believed to create practices into a central theme in theory. The regulations include
practices, rules and norms whose considerations differ from one theorist to the next. Therefore,
the central model behind the theory lies in the domain of notions on the culture of activities in
institutions that are governed by rules with meaningful performances. For example, such concept
of the theory of practice is evident in the domain that traces back to Kant behaviour that
contrasted to natural law and actions that are supposed to follow the guidelines maintained by a
conception of law like a norm. The same normative governance oversees standards and the
culture of a company to understand the responsible nature present within the leadership aspect.
The point of practice highlights all activities of a company, including the actions conducted that
is a contrast to the behavioral approaches, highlighted by human sciences. Majorly, practice
theory theoretically and methodically investigates the behavioral aspect influenced by social
sciences in the organization. The theory encourages the attention to publicly access the
performances instead of the private mental state or events present in the organization. The
intention is to avoid intentional omission while making them accessible together with
comprehensive. More so, the theory intends to focus on outward performance instead of the inner
desire as argued by Rouse (2007). Therefore, all aspects are discussed broadly or are given many
descriptive forms rather than the light terms adapted by behaviorists. Furthermore, the claim is
that activities and human performance are significant instead of having a meaning that is
generated and infused to the organization by animating desires, beliefs as well as intentions.
Therefore, norms, rules and concepts acquire their meaning, force and normative authority from
the publicly accessible activities.
Coca-Cola Practice Theory
Since the company is a global organization, their practice theory mainly attributes the
external environment which compulsions for the companies to align their operational schedule.
For instance, in India, the government has proposed a bill that dictates how companies will
behave. According to the government, in a recent development, all organizations with a gross
value of Rs 500 crore or added will establish a board of three associates on the board to supervise
the CSR policy, reports and observing operations of the companies. The approach has increased
its importance in the region, and Coca-Cola Company has elevated its strategy as well to fit in
the rankings (Narayan et al. 2012). The leadership team in Coca-Cola persuades means that are
 Assignment One: Coca Cola Company Analysis 7

helpful for employees to generate an opportunity and develop skills through learning to improve
the kind of services they offer as a practice theory. The behavioral aspect suggests that leaders
are created rather than born, thus the activities to nurture their employees and promote their level
of marketability in the business world, to benefit the company in turn with the services they
offer. Through the employment of practice theory, Coca-Cola creates behavior that is
comparatively easier while assessing leaders on the market board, and the same leaders can
discover patterns quickly. The available patterns are employed and raise above the failures to
create a different understanding of the second approach, which makes a higher bar than
discourages loss within the organization. It is cultural in Coca-Cola Company to evaluate the
workers according to their work constructions and habits as a practice behavior to monitor the
external characters of operations. The company focuses on the retention of features and skills as
a confirmation of a successful goal market which is attributed to practice theory. Additionally,
the organization believes in posting of goals and perspective which in turn manages the
information generated at all levels; thus, there exist zero gaps in communication, and this helps
promote effectiveness in the organization. Employees develop up to their full capacity while the
organization still maintains on fulfilling goals and targets while advocating for close monitoring
of external behavior that aligns with the practice theory.
Perspective Differences between Organizational Culture and Practice Theory
The two theories both serve a significant role in examining organizations and their
managerial practices and their way of conducting functions uniquely. However, the two views
have a different perspective approach in the analysis of companies. Mazur (2010) argues that
Practice theory emphasizes on publicly accessible performances rather than private perceptual
states. More so, the approach has the aim of making companies' practices to be understandable
and accessible, differentiating it with the organizational culture which aims in typically avoiding
normative locutions. Practice theory focuses on individuals' behaviors and group relations, which
explains the social responsibilities. Corporate culture is a broad theory that covers a more
comprehensive range inside and outside the organization. The thesis focuses on the culture of the
organization and how a company can be uniquely identified from other companies.
Organizational Culture depicts behaviors of the organization employees and their comfort in
working with the institution. Additionally, the theory, at some point, describes the company and
 Assignment One: Coca Cola Company Analysis 8

its ways of providing services. The idea can also be used to formulate a culture trademark of a
company in the micro as well as macro environment.
Conclusion
In summary, the examination of any organization is quickly done when one uses
analyzing theories, especially organizational culture, and practice theory. The Coca-Cola
Company is demonstrated clearly by the used approaches, and one can understand the
administrative functionality. Additionally, the Coca-Cola organization has a complex nature
related to management and leadership. More so, organizational culture plays a big role in an
organization as it assists employees to exist peacefully amongst themselves. Leadership protocol
formulated by managers eventually evolves into a culture that employees grow with. Amongst
lessons that a manager can learn through the case study, communication is a crucial factor when
it comes to managing a massive company like Coca-Cola in order to have information, and
charges are received as they are supposed to. By use of practice theory, a manager can learn that
incorporation of outward performance gives a chance for a company to gain experience on a
broader descriptive form of organization operation.
 Assignment One: Coca Cola Company Analysis 9

References List

CoCa-Cola World. 2015, September 1. Organization culture. Coca-

Cola. https://ccocaworld.wordpress.com/about/
Mazur, B. 2010. Cultural diversity in organisational theory and
practice. https://www.researchgate.net/publication/281080822_Cultural_diversity_in_or
ganisational_theory_and_practice
Maisoni, H., Yasri, Y., & Abror, A. 2019. Effect of organizational culture, leadership and
compensation on employee engagement in Coca-Cola Amatil Indonesia central
Sumatra. Proceedings of the 2nd Padang International Conference on Education,
Economics, Business and Accounting (PICEEBA-2
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Culture_Leadership_and_Compensation_on_Employee_Engagement_in_Coca-
cola_Amatil_Indonesia_Central_Sumatra
Morcos, M. s2018. ORGANISATIONAL CULTURE: DEFINITIONS AND
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Rouse, J. 2007. Practice theory. Philosophy of Anthropology and Sociology, 639-
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Shahzad, F., Luqman, A., Khan, A. R., & Shabbir, L. 2012. Impact of Organizational Culture on
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