Gap analysis
Discuss about the Development Leadership and Change Management.
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The leadership is necessary for the organization as it promotes the initiation of the action from every working personnel who are working collaboratively for accomplishing the organizational goals. Shetty (2014) portrays that effective leadership plays a crucial role in motivating their employees and provide them guidance so that they can give their best for the organizational proceedings. Building morale and formulating effective work environment are the two additional benefits of the presence of leadership within an organization. In this business report, the theory of leadership style followed in the COCA-COLA will be analyzed. Moreover, the gap analysis of the concept model of leadership and leadership case in COCA-COLA will also be discussed along with the SWOT analysis of the concerned organization and the application of Lewin’s change model. Lastly, the report wraps up with the recommendation and an overall conclusion of the entire discussion.
The leadership style that is illustrated in the first assignment is the contingency theory and path-goal theory while in the case study of the Coca-Cola is innovative leadership, cross-cultural leadership and visionary leadership. In the first assignment, it is stated that supportive leadership, where the employees are treated as the important assets and participative leadership reflects the sharing of knowledge within the organization. Later in the second assignment, it is seen that bottling partners are in constant contact so that local strategy of the coca-cola can be executed. In addition to that, the first assignment emphasizes on the leadership styles of directive leadership and achievement-oriented leadership.
Directive leadership signifies that the leaders direct their employee to follows one certain procedure; however, Coca-Cola gives importance to innovative leadership (Kerr, 2014). This provides the employee the encouragement to suggest new ideas. This innovation also leads to the investments in the R&D. Adekola and Sergi (2016) defines that Cross-Cultural Leadership is also adopted by the company so that their good features can be taken into consideration like productivity of Japan, hard-work of Indians and punctuality of Chinese; while, in the traditional leadership, diversification is not introduced and it results in conflicts. The gap relies on the taking advantage of the diversified knowledge of the employee so that perception of there can be better understand a customized products according to their need can be developed.
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SWOT Factors
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Analysis of the factors
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Strengths
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· Coca-Cola is a well-known brand across the world and they have their brand popularity everywhere except for Cuba and North Korea.
· They also have some renowned subsidiary brands like Kinley, Limca, and Minute Made, etc.
· Their leaders effectively analyze the trends of the locality and people demands and formulate new products like Diet Coke for health-conscious people (Mirvis et al. 2016).
· Their effective leadership styles also result in the employee strength of around 150,000 people across the globe (Foster, 2014).
· They have some leaders following transformational leadership traits and as a result, they have adopted a modern approach to promoting their brands.
· These leaders also emphasize on the CSR activities and Coca-Cola always donates a portion of their annual revenue for the benefits of recycling, education, health, etc.
· Sports, cultural events and tournaments sponsorship also help them to gain the recognition among the community.
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Weakness
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· Ineffective monitoring of the managing authorities and the leader’s results in poor organizational proceedings- like the presence of traces of pesticides are found in the drink.
· Constant strong competition from other leading organization like PepsiCo over the leadership styles and market shares
· The organization only focuses on the manufacturing of the drink products and not yet started the formulation of the snack item as like other competitors do (Rubin, 2013)
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Opportunity
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· Leadership styles in the Coca-Cola have the chance to identify the requirement of snack products so that more customers can get attracted towards their brand (Pfitzer et al., 2013).
· They have the opportunity to acquire other companies
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Threats
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· In order to expand their business goals, they have the threat of legal obligations of those countries and places.
· Market inflation, economic slowdown and instability of the nations where Coca-Cola is operating their business is a great threat to the concerned organization.
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Table 1: SWOT analysis of the case study
(Source: Created by Author)
SWOT analysis of the case study
Lewin’s change model has three steps to follow- unfreezing, changing and refreezing (van den Heuvel et al., 2013). Manchester et al. (2014) stated that according to Kurt Lewin, the process first starts from the perception that change is required and then bring small changes in the behavior and then transforming those changes in behavior into a norm.
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Lewin’s Change Model Factors
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Explanation
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Application
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Unfreezing
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Worley and Mohrman (2014) defines that an organization when understands that there is a requirement of change, they test the Lewin’s change model. Sutherland (2013) depicts that the prime objective of this step is to evaluation whether the application of the change within the workplace is hindering the organization in some way, as some people do not resist change suddenly. In this process, the managing authority has to evaluate the organizational structure carefully and provide the employees a valid reason for how necessary change is for the organization and what will be the benefits of the changes in applied in the organization.
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In the first stage of the Lewin’s Change Model, the leader of the Coca-Cola identifies that there is a change that has to be made in its products and business strategies that can satisfy the needs of the customers and external environment.
· The first change noticed is the expansion of their business to other countries other than the United States.
· The second change they intend to implement is to promote their brand by doing social work.
· The implementation of the third change was to overcome the situation of financial crisis like in the times of the Asian financial crisis they acquired bottling, coffee and tea shop.
· The fourth change is to innovate their products for satisfying every consumer need and more secure packaging.
· They also desire to change the advertising technique of their brand and target group.
· They also change their activities of Employee Engagement
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Changing
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In this stage, the organization must transition into the new state for the implementation of the change rule (Karnani, 2013). Moreover, in this phase employee struggles with new changes. In addition to that, Kapferer (2012) states that at one hand, some employee takes this change rule enthusiastically while some of them are suffering from uncertainty and fear. One of the positive things about this phase is that people begin to learn the new behaviors and technological advantages that the organization implements in the workplace and education, communication, support and time are provided to employees so that they can learn to utilize these changes for better productivity.
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· Coca-cola takes the initiatives for legal obligations so that they can expand their company to other countries. For this, they need to implement diversification in the company.
· Karnani (2013) stated that for attaining better CSR rating, Coco-Cola took initiatives for the enrolling their employees in voluntary works.
· In order to implement acquisition, negotiation was done that require in the adoption of other organization’s culture and behavior.
· R&D plays a crucial role in the innovation of the products that requires training to the employee so that they can suggest something better for the organization (Cummings & Worley, 2014).
· Training in IT so that new digital media can be targeted for the advertisements (Greenfield, 2016).
· Change in the reward system to motivate employees that may set different goals and targets for employees.
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Refreezing
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The final stage of his change model is the act of reinforcing, stabilizing and implementing the change rule in the workplace. The primary objective to make this change as a norm is to evaluate whether an employee is reverting to their old thinking and business procedure. Benn et al. (2014) further stated that some organization positive rewards and acknowledgment are being offered to the employees so that they can positively reinforce the changed policy in the workplace.
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The effective leadership results in the establishment of 64 plants across the 200 countries to supply drinks.
Coca-Cola provides free drinks and beverages to the needy people and does social work (Metzger, 2014).
They had successfully acquired bottling, coffee and tea shop businesses in Korea and Malaysia so that they can use their technology for the benefits of their brand.
The research has successfully implemented by formulating the health drinks like diet Coke and improved packaging that can prevent the drink from harmful effects.
Change has been implemented in the advertising strategies like a Facebook fan page, Twitter and Instagram (Dempster et al., 2015).
Employee training for gathering the knowledge of the new challenges to achieve the goals while taking advantage of the reward system (Nachiappan et al., 2016).
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Table 2: Lewin’s change model and its explanation and application
(Source: Created by Author)
The managing authorities in the Coca-Cola must ascertain the core problems that are required for the change management. System thinking is used to guide change, and employee defiance has to be reduced. The concerned organization must have to take the initiative to develop the requirement of the change in their organization and encourage them to participate in the changes rather than imposing the thoughts on them. In addition to that, after the creation of the powerful coalition, the change vision has to be communicating with their employees so that they can see the future advancement of the organization.
Conclusion
It can be concluded that Coca-cola has implemented the change management in their organizational procedure for the betterment of their organization. Throughout the years, they have implemented the change management strategies like diversification of the employee so that the penetration of their products in different countries can be easily understood. Unlike the traditional leadership styles, Coca-Cola emphasizes on the transformation leadership skills so that they can values their employee and encourage them to suggest new ideas for improving the organizational culture. The SWOT analysis and Lewin’s change model describes that the leadership follows in the Coca-Cola is effective and as a result, they not only expand their brand in other countries but they also introduce new advertisements strategies like Facebook fan pages, Twitter and Instagram. Moreover, they also take initiatives to offer their products to the needy people for enhancing their CSR ratings and the change in the leadership in Coca-Cola reflects in the employee motivation and reward system.
Reference List
Adekola, A., & Sergi, B. S. (2016). Global business management: A cross-cultural perspective. Routledge.
Benn, S., Dunphy, D., & Griffiths, A. (2014). Organizational change for corporate sustainability. Routledge.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage learning.
Dempster, C., Williams, D. S., & Lee, J. (2015). The Rise of the Platform Marketer: Performance Marketing with Google, Facebook, and Twitter, Plus the Latest High-growth Digital Advertising Platforms. John Wiley & Sons.
Foster, R. J. (2014). Corporations as Partners:“Connected Capitalism” and The Cocaâ€ÂCola Company. PoLAR: Political and Legal Anthropology Review,37(2), 246-258.
Karnani, A. G. (2013). Corporate Social Responsibility Does Not Avert the Tragedy of the Commons–Case Study: Coca-Cola India. Ross School of Business Paper, (1210).
Karnani, A. G. (2013). Corporate Social Responsibility Does Not Avert the Tragedy of the Commons–Case Study: Coca-Cola India. Ross School of Business Paper, (1210).
Kerr, J. M. (2014). Establish Leadership—The Foundation for Change. InThe Executive Checklist (pp. 5-23). Palgrave Macmillan US.
Manchester, J., Gray-Miceli, D. L., Metcalf, J. A., Paolini, C. A., Napier, A. H., Coogle, C. L., & Owens, M. G. (2014). Facilitating Lewin’s change model with collaborative evaluation in promoting evidence based practices of health professionals. Evaluation and program planning, 47, 82-90.
Metzger, K. (2014). The Import of Culture? The Coca Cola Company in America and Australia.
Mirvis, P., Herrera, M. E. B., Googins, B., & Albareda, L. (2016). Corporate social innovation: How firms learn to innovate for the greater good. Journal of Business Research.
Nachiappan, R. M., Anantharaman, N., & Muthukumar, N. (2016). Design of a New Reward System in a Continuous Line Manufacturing Industry. IUP Journal of Operations Management, 15(2), 7.
Pfitzer, M., Bockstette, V., & Stamp, M. (2013). Innovating for shared value.Harvard Business Review, 91(9), 100-107.
Rubin, E. N. (2013). Assessing your leadership style to achieve organizational objectives. Global Business and Organizational Excellence,32(6), 55-66.
Shetty, N. (2014). Leadership Style at Coca-Cola Company. Retrieved July,16.
Sutherland, K. (2013). Applying Lewin’s change management theory to the implementation of bar-coded medication administration. Canadian Journal of Nursing Informatics, 8(1-2).
van den Heuvel, M., Demerouti, E., Bakker, A. B., & Schaufeli, W. B. (2013). Adapting to change: The value of change information and meaning-making. Journal of Vocational Behavior, 83(1), 11-21.
Worley, C. G., & Mohrman, S. A. (2014). Is change management obsolete?.Organizational Dynamics, 43(3), 214-224.
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