Change can be described as a introduction of something exclusive, new that totally differs from the past and present state of any thing, condition or scenario and is always uncertain to predict. In context to business organization change could be describes as a response to some specific problems encountered or some market opportunity faced by business which is based on internal and external stimuli (Popovic and Plank, 2016). Thus for an organization there could be three major factor that motivated or induce them to adopt change in its business operations i.e. to be more competitive, more customer oriented or to be more efficient in terms of performance.
Coca Cola was world's biggest and most renowned company which was established in 1892 with its headquarters in Atlanta. It is leading brand in beverage industry and is currently having its operations in more than 200 countries across the world selling approx 500 brands under its name.
This assignment writing will focus on planned and unplanned approaches of changes and how change management is essential for a firm along with a brief description of the shift from calm waters to white waters. Major implications of theories on human resource department and various steps that a manager takes in order to handle this shift are mentioned in this assignment.
Planned and unplanned approach of change
Changes are the only constant in universe. They are unpredictable and can cause both positive and negative impact on company. Thus, it is beneficial for an organization to be proactive and prepared with plans which can be used at the time of change to get maximum return and higher profits (Johnson, 2016). Change management thus is a approach that enables an organization to systemically implement and deal with modification in organizational goals, technologies, procedures and policies. It also helps an organization to successfully apply these changes which are initially resisted by mangers, employees and business owners as they hesitate and feel inconvenient to shift from their familiar comfort zone to an entire new and unknown working environment. A systematic and well planned and organizational change management supports an a firm to adopt all those strategies that are requisite to effectively tackle modification like new and altered roles and responsibilities,new tools and techniques, planning and executing effective communication among different management levels and providing comprehensive training associated with the change. It is thus of vital importance for a company to identify and adhere with changes that are occurring in environment. It is crucial to understand the value of having a structured, disciplined and comprehensive Organizational Change Management mindset baked into their culture are well positioned to continually and effectively transform themselves and achieve or exceed the benefits expected with their initiates (Seale and Cross, 2016).
White water metaphor is used to denote the situation when changes are frequent and uncertain to be forecasted by any means. With the emergence of fierce competitors like Pepsi and many other brands Coca Cola faces new challenges on daily basis as it requires to make changes in its products and business strategies in accordance to its consumers expectations and external environment. Through its well planned approach Coca Cola constantly is working towards achieving its vision of sustainable, quality
For instance, following “ if you cant beat them ,join them “ approach when in 2006 was alleged for rising levels of human rights abuse and obesity accused of putting locals at risk by pollution ground water and soil causing water shortage. Coca Cola was also abused due to pesticide controversy which lead to decline in sales by 11% sales in India in 2003. Moreover Diet Coke which was introduce as no sugar or calories substitute, with growing scepticism about artificial sweeteners that may cause weight gain lead health conscious consumers to shy away . That was not sufficient that due to high inflation sales declined by 6% year over year leading to declining profits to $1.24 billion which was earlier $10 billion.
To cope up with sugar content controversies Coca Cola reduces sugar in more than 500 of its drinks and introduced low and no sugar drinks like Coca Cola Zero in 2005 leading to further introduction of Cola Coal Light and Coca Cola Life in 2016. By adopting a multifaceted approach to meet customers requirement of healthy drinks and to wash out the allegation on its drink to be promoting obesity Coca Cola made changing in its product line and introduces new product line like organic tea, coconut water, dairy , grab and go coffee. To boost up its sales in India during pesticide controversy company introduced 200 ml size for Rs five and further reduced the price of the standard 300 ml version (Dawson and Andriopoulos, 2014). At the end, it can be said that this company successfully managed some unpredictable changes but up to a limited extent.
Implementing change management
Various areas where changes can be introduced to achieve business objectives and goals are mentioned below:
Company's cultural – Organizational culture consists of policies, values, beliefs, behavioural norms and attitude of employees. Introduction of changes can be made effective and less resistive by employees by involving them in decision making process and motivating them to give inputs which will make them feel associated with company. IN 2012, company went through a total restructure. To implement its change management strategy company directed towards intrinsic values and motivation of its workforce through employee engagement. Being a global company follows a diverse work culture which integrates various concepts like integrity, quality, performance, efficiency and responsibility under an effective leadership (Moxen and Strachan, P. eds., 2017). The main catalysing factor behind company's sustainability from long run goes to its cooperative and innovative culture which supports its people to modify their working pattern according to changes emerging in business environment.