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Organizational development (od) paper
Overview of organizational development
Overview of organizational development
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Introduction
Coca-cola is the world’s biggest beverage company that manufacturers, retails, and markets nonalcoholic beverages. The company is headquartered at Atlanta, Georgia. The company was famed for its beverage Coca-cola which was invented in 1986. Coca-cola Company operates a franchise that distributes its products throughout the world. Its distribution chains and established territories have seen the company remain the most competitive beverage company in the world. At one point, Coca-cola was a monopoly in the world beverage market. However, there are various challenges that the company faces as it strives to maintain its exploits in the beverage industry. One of the challenges that are OD related is the accusations of worker intimidation throughout the world. The company has also been accused of seeking to stifle the operations of trade unions in the world. These issues are grave and have far reaching effects on Coca-Cola’s Organization Development. This essay examines this OD related problem and provides recommendations to this issue using the models and diagnostic instruments developed in previous O.D sessions.
OD Problem Discussion
There has been increased the outcry by international labor organizations accusing multinational companies of foul play when dealing with their workers. Many multinational companies, in a bid, to reduce operation costs and costs of production, end up suppressing their clueless workers. Some multinational companies have gone to the extent on having their central productions being done in low-income earning companies where they would not have many responsibilities to bear for the workers. Coca-Cola, however, has received widespread criticism for its mistreatment of workers and the way it has...
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Advancement pursued by Coke has relied heavily on expansion efforts throughout the globe and within the United States. Elmore describes one particular case example relating to Coke’s drive for increase presence when he states later on in the book that the Coca-Cola corporation created a Foreign Department for the purpose of international marketing. Heavily promoting the economic benefits that accompany the importation of Coke, a task force of five members were appointed to persuade officials overseas to bring the Coke product to their country. Commonly poor countries were preyed upon falling victim to Coke’s ploys, and promise of economic growth allowed Coca-Cola to move production operations throughout the world. Communities deprived of the natural resources to endure Coke’s presence suffered most from the expansion, yet Coke had no regard other but for themselves. Elmore reasons how goals of cutting costs for Coca-Cola have been achieved through exploiting countries on behalf of their own private
The concept of discrimination is complex in the case of “The Big One” in this case, corporations in the United States of America such as Nike, Spalding, Microsoft and AT&T are not willing to change their ways of manufacturing their goods in third world countries and American detention centres, and this causes perfectly able bodied employees in the United States to become unemployed as more and more companies apply this measure to make additional profit for themsel...
Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards.
The exploitation of workers stems from corporation’s ability to identify countries with weak labor restrictions
While this is partially true, brands won’t admit that their factories have problems. Because of the fear of losing customers, they refuse to inform their consumers about what actually goes on in their factories, leaving consumers in the dark. Therefore, consumers don’t even stand a chance at making a change because they don’t realize that there are problems and conditions that need to be changed. Companies hide the truth from their buyers, which allows the sweatshop problem in developing countries to become more severe with each
The involvement of immense corporations and how they make and distribute their products will also be explored. Certain companies will be discussed as to whether they are reliable and dependable sources of products or if they cut corners by getting their materials internationally. One will be able to grasp how a nation’s financial standing impacts other aspects of that country’s well-being. Child labor in America will be another subject matter touched on and if the degree that it occurs at in a more developed nation is much different from other undeveloped nations.
The Coca-Cola Company was founded in 1892. Since its inception, the organization has seen a steady increase in its market share over the years, and to this day has operations in over 200 countries worldwide. To achieve such success in its competitive market, Coca-Cola has employed sound strategies that have helped it become among the leaders in its industry. The Coca-Cola Company utilizes Market Based Management (MBM) techniques as well as Value Driven Management (VDM) techniques within the organization and in its market to help the firm sustain its stronghold of the market.
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By defining “real stakeholders” as those who have a legitimate claim and firm has responsibility towards them and the influence and power are reciprocal (Fassin 2009), the following groups are real stakeholders for whom Coca-Cola HBC is responsible in terms of both management and ethical issues.
For example, in 2012 a Bangladesh factory producing garments for American and European companies caught fire killing 117 factory workers (Cooper, 2014). Additionally, in 2013 another factory in Bangladesh collapsed killing 1,100 workers, which was caused by foundational issues from the upper floors being built without a permit (Cooper, 2014). These incidents ignited outrage over both unsafe and unfair working conditions as well as the exploitation from MNCs, who had extremely profitable contracts with these factories. Consequently, due to public outcry the formation of enhanced government regulations, oversight, business initiatives, and public efforts have surfaced (Cooper, 2014). Although these issues have not been completely resolved, the question over the extent of which MNCs are responsible for adequate workplace safety remains a controversial topic. However, strategic efforts from these companies indicate the importance and necessity of remaining proactive in a globalized economy. These efforts consist of the formation of minimum workforce standards, compliance regulations, financial support, and long-term contractual
Considering individuals are becoming more health conscious it would be beneficial for Coca Cola to continue producing even more healthy products. Producing healthier drinks could potentially get their products back in schools. Researching into cheaper materials as well as environmentally friendly alternatives to plastic would be another recommendation. The main concern for Coca Cola is water supply. Without water Coca Cola would not be able to stay in business. It is recommended for Coca Cola to reduce the amount of water it uses. They have already begun a goal to improve water use. “Our 2020 goal is aggressive and builds on the 21.4% water efficiency improvement we’ve made since 2004. We expect to increasingly assess not just the quantity of the water used to grow our product ingredients, but the impact of that use as well” (Improving,
...orking environments for their factory employees. Even with international groups and organizations keeping a constant watch on companies who outsource work to impoverished countries, there is often little that can be done to control these companies. Lack of local enforcement and overlooked international law makes it easy for money-hungry companies to get away with morally wrong behavior. By bringing attention to these types of situations and not supporting companies who do not treat their workers fairly, executives will be hit where it hurts them the most, their pockets. When their profits decrease, they will be forced to look for alternatives to manufacture their products.
The beverage manufacture and bottling industry is greatly influenced by economic and other market trends associated with consumers. To capitalize on its strengths and opportunities, Coca-Cola targets specific demographic segment through online viral marketing for its product; it uses the new technology tools (Facebook, Instagram) as medium of communication market its products and interact with the consumers. The company use well-known celebrities for their add campaign and sponsor sport events such as the Olympics and world cup soccer game to promote their brands. On the other hand to minimize its weakness and threats, Coca-Cola allocate funds and resources for research “guided by international standards including the International Labor Organization's code of practice on HIV/AIDS and the world of work, and the Joint United Nations Program on HIV/AIDS (www.coca-cola.company.com)”. The company also promotes diversity in its workplace that serves to recognize leadership and fairness to encourage a work atmosphere of open communication and to essentially seek and leverage new ideas.
Provide an understanding of pressures that can affect an international company accused of worker exploitation.
There are many different problems at Coca Cola companies which are not connected to the Human Resource Management nevertheless, the changes need to start first at this department. As it was stated in the introduction, every organization is based on people who are working in it and needs of these people must be satisfied in all four areas: performance evaluation, compensation, career development and succession planning. Coca Cola is a successful international company which manages to create the positive image in the eyes of consumers. Now it needs to invest money and effort in created loyalty and satisfaction among its employees.