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boundaries. The bottling plants are, with some exceptions, locally owned and operated by
the independent companies that are native to the nations in which they are located.
Bottlers provide the required capital for investments in land, buildings, machinery,
equipment, trucks, bottles and packaging. Most raw materials are purchased from local
sources, often creating new supply industries, and areas of employment in the local
economies. The company supplies the concentrates to manufacture the products. It
provides management assistance to guide its bottlers in ensuring the profitable growth of
the business. The production system ensures that the highest quality and uniformity
standards are maintained by the bottlers. Product manufacturing, quality control, plant
and equipment design, marketing and personnel training are some of the areas in which
the company shares its expertise to its business associates. The strong commitment of the
bottlers to achieve their business growths helps to meet Coca-Colas global strategic
goals in terms of worldwide production, distribution and marketing.
Management Structure
The companys management structure consisted of five geographical groups, and the
Minute Maid division.
1. North American: comprises the U.S. and Canada.
2. Latin America: includes the Companys operations across Central and South
America, from Mexico to Argentina.
3. Greater Europe: from Greenland to Russias Far East, including some of the most
established markets in Western Europe and the rapidly growing nations of East and
Central Europe.
4. Africa and Middle East: the Companys most populated operating group
encompasses the Middle East and the entire continent of Africa.
5. Asia Pacific: operations from India through the Pacific region including China, Japan
and Australia.
6. Minute Maid Company: the companys juice business is located in Houston, Texas.
It is the worlds leading marketer of juices and juice drinks.
In January 2013, the company implemented a new organizational structure of three
operating businesses: Coca-Cola Americas, Coca-Cola International and Bottling
Investments Group. This is part of their continuous improvement exercises.
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Operating Structure
To stay current with new governments regulations, industrys best practices, and
marketplace conditions, the company consistently reassesses the relevance of the
requirements and guidelines in manufacturing, and the entire supply chain. They
continually refine the requirements to further insure that the bottlers conform to the most
recent and stringent manufacturing processes. To establish a governance process, every
bottler has to implement the documentation system and maintain a safety and quality
system in accordance with the companys requirements. They have launched a
productivity and reinvestment program to create $550 million to $650 million in annual
savings by 2015.
Ensuring the safety and quality of the products have always been at the core of the
business and is directly linked to the success of the company. The company's Global
Product Quality Index rating has consistently reached averages near 94 since 2007; with a
94.3 in 2010; while the Company Global Package Quality Index has steadily increased
Assignment Questions
1. Evaluate two aspects of operations management that Coca-Cola selected to
implement its global strategy. (10 marks)
2. The company engages its bottling business associates to manufacture the products
across the globe. Describe two strategic reasons for it to do so. (10 marks)
Plagiarism
Plagiarism is not acceptable in any form. It includes:
1. Deliberately copying another students work.
2. Copying directly from textbooks and other sources without using quotation marks.
3. Not acknowledging the sources you have used in your work (i.e. you must cite the
reference).
4. Re-submitting an assignment used in one course as an original piece of work for
another course.
5. Work, which shows evidence of plagiarism, will be penalized in line with the
seriousness of the case. This may involve work being returned unmarked. In
extreme cases, the University academic disciplinary procedures may be invoked.