CASE STUDY ON ORGANISATIONAL CULTURE AT COCA COAL

21-09-2010Amity UniversityAmity Business School, MBA Entrepreneurship 2011

SUBMITTED BY:

GAURAV BAGGA , ROHAN KHARE ,JANMEET BHATIA , RAHI GOMBER

ABSTRACT

The organization culture in various Organizations doesn’t support change. Entrepreneurs

and Management are normally against any kind of change when their business is running

smoothly. They step back when it comes to, changing their business model or accepting

any new concepts.

Coca Colas’ Winning Culture defines the attitudes and behaviors that will be required of

us to make their 2020 Vision a reality.

In todays world it is all about maintaining organizational culture .And change is the only

term which can make it happen. So in order to sustain in present ERA every organization

needs to bring out change and innovation in an organization. The culture of any

organization play a major role in supporting the employees and functioning of any

organization. In order to bring out changes in the culture company should come out with

effective measures and developments to retain its share.

Coca-Cola Enterprises faces strong competition from other beverage companies and

needed a way to work more effectively with its customers and partners. This required

innovation and a new way of communicating within the corporation.

In order to bring out this change the culture and working platform of the organization has

to go for a change. As the communication pattern between the lower level employees and

higher officials was very weak. Most of the diverse CCE personnel work was in a

distributed manner. For that the organization bring out innovation and a new Microsoft

smart tool. Which bring out reasonable change in the working culture of the organization.

And to bring out this culture a leader figure is highly essential. A leader is the one who

brings out the change in the organization by changing its culture. A leader motivates,

supports, guides and sometime forces to bring out the change. Chairman and CEO John

Brock and CIO Esat Sezer come up with the communicating tool to remove hurdles and

make Coca Cola organizational culture work in an effective manner.

OBJECTIVE OF THE CASE STUDY

To find out the existing culture in COCA COLA.

To show how a leader bring out the change in the organization.

To show what changes were brought in after the change in the organization

culture.

To show the growth trajectory of the company after bringing out the change in

culture.

To come out of the existing mindset that if somebody was not able to do it then

that doesn’t mean we can’t do it.

COCA COLA

INTRODUCTION :

The COCACOLA company was first eastablished in 1886 by DR. JOHN STYTH

PEMBETON. Today , the company is the World’s leading manufacturer in the

beverage Industry , operating globally in more than 200 countries with its head

office located in ATLANTA ,USA .

In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies

necessitated its departure. Coca-Cola returned to India in 1990 and over the past

nineteen years has captured the imagination of the nation, building strong

associations with cricket, the thriving cinema industry, music etc. Coca-

Cola has been very strongly associated with cricket, sponsoring the World Cup in

1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in

the late nineties.

HISTORY :

Coca-Cola Enterprises, established in 1986, is a young company by the standards of the

Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of

Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces it’s

beginning to 1886,when an Atlanta pharmacist, Dr. John Pemberton , began to produce

Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899

when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead ,

secured the exclusive rights to bottle and sell Coca-Cola for most of the United States

from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as

independent, local businesses until the early 1980s when bottling franchises began to

consolidate.

In 1986, The Coca-Cola Company merged some of its companyowned operations with

two large ownership groups that there for sale, the John T. Lupton franchises and BCI

Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The

Company offered its stock to the public on November 21, 1986, at a split-adjusted price

of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.In

December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola

Bottling Group, Inc. (Johnston) created a larger, stronger Company, againhelping

accelerate bottler consolidation. As part of the merger, the senior management team of

Johnston assumed responsibility for managing the Company, and began a dramatic,

successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total

revenues were $5billion.

Vision & Mission

Our Vision:

Planet: Be a responsible citizen that makes a difference by helping build and

support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Our Mission:

Our mission statement is to maximize shareowner value Over time.

In order to achieve this mission, we must create value for all .The constraints we serve,

including our consumers, our Customers , our bottlers, and our communities. The Coca

Cola company creates value by executing comprehensive.

To inspire moments of optimism and happiness...

To create value and make a difference.

 

The ultimate objectives of our business strategy are :

To increase volume,

Expand our share of worldwide

Non alcoholic ready to drink beverages sales,

Maximize our long-term cash flows,

Create economic value added by improving economic profit.

Coca-Cola Enterprises Selects Microsoft SharePoint Online to Advance Productivity And Improve The Organisational culture and Communication Barrier

Coca-Cola Enterprises (CCE) employs approximately 72,000 people in 431 facilities

around the globe. Much of its workforce is mobile with 55,000 vehicles and 2.4 million

coolers, vending machines, and beverage dispensers. With increasing competition in the

marketplace, CCE needed a more effective way to collaborate with its employees, to

increase its productivity, to enable better flow of information and to create more time for

sales persons to engage with customers. Its worldwide presence required employees and

executives to spend numerous hours on the road every week, travelling to internal

meetings. With Microsoft® Online Services technologies, CCE can save travel expenses

through online meeting tools and collaboration platforms that span time zones and

geographies.

Situation

Coca-Cola Enterprises (NYSE: “CCE”) is the world's largest marketer, producer, and

distributor of Coca-Cola products. Coca-Cola Enterprises’ growing product portfolio

includes the world’s greatest brands and beverages which it delivers with the industry’s

most effective marketplace execution. Today, it serves 419 million consumers,

throughout North America, the U.S. Virgin Islands, other Caribbean islands, Belgium,

France, Great Britain, Luxembourg, Monaco, and the Netherlands. It employs

approximately 72,000 people and operates 431 facilities, 55,000 vehicles, and 2.4 million

coolers, vending machines, and beverage dispensers. 

Coca-Cola Enterprises faces strong competition from other beverage companies and

needed a way to work more effectively with its customers and partners. This required

innovation and a new way of communicating within the corporation. In 2008, CCE

acknowledged that its current communications platforms were no longer enabling the

innovation and collaboration required to take it to the next level to compete in an

increasingly demanding economic environment. 

CCE required a centralized platform on which to promote the company’s initiatives. Its

messaging was based largely around e-mail, which was unable to reach its largely mobile

workforce. Chairman and CEO John Brock and CIO Esat Sezer agreed that in order to

evolve the company culture and improve customer relationships at CCE, the leadership

team needed the ability to communicate with all CCE employees, especially those

managing day-to-day operations in the field.  Most of the diverse CCE personnel work in

a distributed manner. Employees in manufacturing facilities had limited access to the

corporate network. Its mobile, customer-facing employees, who are on the front line,

making sales and positioning the CCE products in store environments, also lacked

convenient access to company content.   Additionally, CCE needed to drive action and

information to all employees in its business by role. CCE’s infrastructure did not allow

for this, making it difficult for employees to locate appropriate content in a timely

manner. Kevin Flowers, Director of Enabling Technologies, says, “John Brock, our CEO,

challenged us to find better ways to connect all of our employees. He asked us to create a

unified way to reach all of the field resources for more than 400 locations in the U.S.

alone. SharePoint Online addressed those challenges and helped us launch from a legacy

infrastructure to a solution which provided better business value to all of our people.”

Taking on a new project like building a corporate intranet was exciting yet daunting as IT

resources were engaged on many other initiatives as part of their transformation journey.

IT considered using partners to address its messaging needs and wanted to expand this to

include development of its corporate intranet. Both solutions needed to support mobile

devices to reach employees in manufacturing facilities and the field.

Solution

With many older systems, CCE had several partners providing dozens of communication

and collaboration solutions. CCE saw an opportunity to optimize its infrastructure by

broadening its relationship with Microsoft.  With the implementation of Microsoft Online

Services, which includes Microsoft SharePoint® Online, Microsoft Exchange Online,

Microsoft Office Communications Online, and Microsoft Office Live Meeting, CCE

consolidated and streamlined its IT partnerships and enhanced its focus on providing

value to the business. CCE deployed its corporate intranet on SharePoint Online as its

primary collaboration platform, which included content management, enterprise search,

workflow, line of business integration, and rights management capabilities. 

In its assessment of whether to upgrade its current platform or transform the company to

a hosted model, CCE considered options presented by several major software and

service providers. CCE desired a partnership where it could utilize its enterprise software

on premises with integrated software services in the cloud, and turned to Microsoft to

execute upon its objectives. Planning for the project began in mid January 2008 and was

completed by mid May. Microsoft Exchange Online and Microsoft SharePoint Online

received “service acceptance” by July and user migration for both began in September.  

By the end of 2008, 23,000 users had been migrated to Exchange Online, 30,000 users

were on SharePoint Online, and 10,000 users had migrated from IBM Sametime to

Microsoft Office Communications Server for instant messaging. It added Microsoft

Office Live Meeting for Web and video conferencing in April 2008. 

Security

Initially, Tim Smith, the Chief Information Security Officer at CCE needed to be

convinced that Microsoft would provide security measures that matched or exceeded

CCE’s stringent requirements. Visiting the Tukwila data center, Smith was impressed by

the virtual and physical security provided by Microsoft, as well as the third-party SAS 70

audit reports that Microsoft uses to monitor security compliance. Tim Smith, CCE Chief

Information Security Officer, says, “Step one in getting comfortable with giving our data

to Microsoft was visiting one of their data centers.  To understand the physical nature of

what they’re doing to safeguard not only their own information, but also CCE’s, gave us

a great sense of comfort that Microsoft has thought of all the right things.”

A fundamental shift occurred in how CCE viewed Microsoft services and capabilities

running in Microsoft data centers, not as an outsourcing arrangement, but as a security-

enhanced extension of CCE’s own enterprise network.

The Right Information at the Right Time

CCE decided to use Microsoft integrated communication and collaboration tools to

streamline communication across its entire organization. A critical component of the

corporate intranet portal at CCE was the integration of SAP user role information into its

on-premises Active Directory® service and its Microsoft SharePoint Online environment.

This will allow CCE to target the right information to the right employee based on roles

outlined in SAP. By integrating SAP data into SharePoint sites, CCE employees can

access data through recognizable Microsoft Office programs, giving employees the

ability to make information for business operations easy to find, share, and update.

Previously, CCE did not have a common solution that enabled document management. 

Documents that needed to be shared with colleagues were housed in shared folders on

network drives, sent via e-mail, or stored in team rooms, all of which were limited in

access, version control, and searchability.

Ease and Effectiveness of Collaboration Seeing the business need and the ability to

increase its communication and collaboration capabilities, CCE was able to move very

quickly to execute the migration. Lauren Sayeski, Public Affairs and Communications

Manager, says, “We had a massive change agenda that we were trying to communicate to

the organization. We had a lot of objectives with this project, but the two primary ones

were a better way to communicate with our employees while at the same time driving

effectiveness and efficiency.” Content management features on SharePoint Online

include version management, workflow management, and rights management, all of

which enable seamless collaboration across geographies and time zones. John Key,

Assistant Director of Communication and Collaboration Technologies, says, “To have

one source of the truth is very important as teams start to form across the globe. You

want to be sure you always have the latest version of the document you’re working on.

SharePoint Online makes that possible.” 

Knowledge Sharing and Social Networking  CCE’s executive communication prior to its

new corporate intranet was historically top-down. With its Microsoft SharePoint Online

intranet solution, it now has open dialogue with employees communicating to leadership

and with each other. Sayeski says, “We focused on ways for employees to comment back

to the organization as well as communicate with each other. Now we have the ability to

post comments on the intranet and create team sites. We’re finding that employees are

talking to each other and using each other’s resources, sharing knowledge. We launched

our first CEO blog last year and in the first five minutes had more than 40 responses

back.  That’s just the beginning; we know that the intranet can be so much more powerful

as a place of action.”

BenefitsProductivity and Customer Focus

The Microsoft solution enabled CCE to bring new technologies to everyone in the

company, providing them with the information they need, where and when they need it

most. Microsoft SharePoint Online has been embraced by employees across the

company. Within four weeks of enabling users to create team sites, there were over 800

requests for sites focused on business priorities and customer-facing business teams. Tom

Barlow, Vice President of Business Transformation, N.A., says, “From a business

transformation perspective, we have a lot of projects underway which focus on revenue

generation and cost savings.  Through the use of SharePoint Online, we’re able to educate

our team so that they can find information and establish interdependencies across the

different projects. SharePoint allows us to code and manage information so that we can

get it very quickly.”

Worldwide Collaboration

CCE now has a robust intranet portal to support worldwide collaboration and

communication of corporate strategy. Sapient Consulting and Slalom Consulting

designed the custom intranet and collaboration solution on top of Microsoft SharePoint

Online. Sapient created the compelling visual design with a user-based enterprise portal

workflow. Slalom designed and developed custom SharePoint features in accordance

with Microsoft development standards and best practices, as well as provided guidance to

CCE regarding the deployment and configuration options available in SharePoint Online.

Sayeski says, “When you have a workforce like ours, 72,000 strong and geographically

dispersed, that may or may not have access to technology, it can be a challenge to ensure

that the message of the organization is getting through with the clarity and the speed that

you want it to. We focused heavily on the use of video, particularly with our CEO, to

ensure that some of our most critical messages were being captured in a way that the

audience immediately understood. So combining the power of video with the intranet

gave us the ability to touch many more people.”

Powerful Search with Enterprise Content Management 

The corporate intranet also serves as a central location for things like CCE’s HR process

improvement and self-service HR portal and provides a communication platform for

CCE’s desk-based workers. CCE has also increased employee engagement and education

around corporate responsibility and sustainability through the portal content, thereby

addressing the cultural change initiative. Sayeski says, “There have been some particular

areas where we’ve seen that concept of two-way dialogue playing out very well. One is in

our corporate responsibility and sustainability efforts where employees are sharing—

actively sharing their own ideas and their own solutions within their own facilities about

ways they’re generating energy effectiveness.”

Through the intranet, CCE employees are eager to be part of the company direction and

dialogue. Brett Kirkland, Collaboration Architect, says, “The SharePoint Online search

engine is ten times better. It allows us to make items more discoverable, to check them in

and out, and surface particular items that we consider pieces of content that should rise to

the top. The SharePoint solution also gives IT more control and governance over what

content is published and how it is ranked and profiled in search.”

Key says, “Microsoft gave us an incredible platform that allows us to do a number of

things, beyond hosting our portal. It provides workflow management and team

collaboration across geographies and time zones.”

The Road Ahead

In phase II, CCE will be expanding the Microsoft footprint to reach an additional 42,000

deskless workers who work in the field or in sales/distribution facilities. These employees

do not have computers but will be enabled in phase II to have access to the intranet via

Microsoft SharePoint Online through computer workstations at their facilities. 

Additionally, Microsoft is co-developing a sales force automation system that will further

take advantage of SharePoint Online and enable local merchandisers to be more efficient

in getting the things they need into the outlets and stores. CCE will also be using

Microsoft Office Communications Server desktop voice and video for multi-user

applications and adding more than 10,000 BlackBerry users. 

Kevin Flowers concludes, “There was huge excitement and energy around the CCE

partnership with Microsoft. This has been one of the best IT partner projects CCE has

experienced, and we have the added value of a longer IT roadmap with Microsoft than if

CCE had built the solution on premises. This project has exceeded our expectations from

an IT standpoint, showing how well an organization can lay a foundation and transform

the way people communicate in a large company.”