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TITLE PAGECentralization&Decentralizationof decision making.
Introduction of theorganizationFounded in 1886, the Coca-cola company is theworld’s leading manufacturer, marketer, anddistributor of nonalcoholic beverages,concentrates and syrups.The company’s corporate headquarters are inAtlanta, with local operations in over 200countries around the world.
History of coca colaPakistan• The Coca Cola company is a global company. InPakistan the company started it’s business in 1953.Today the company has a major share in beveragemarket. The company has its production units atKarachi, Multan, Faisalabad, Rahimyar Khan,Gujranwala, & Lahore.• The company provides a fair amount ofemployment to local citizens and deeply involvedin the life of local communities in which itoperates
Vision, mission & values• Vision:• “To become a market leader in ready to drinksegment while adding best-in-class value to allstakeholders”.• Mission:• “ CCBPL exists to refresh the consumers, inspiremoment of optimism through our brands & actionsas well as benefits all stakeholders, which we willdo with highest social responsibility & withuncompromising commitment towards quality ofour products &
Vision, mission & value• Integrity in our operation.”• Values:• We value & respect our people.• We communicate openly.• We have integrity.• We win as a team.• We drive quality & innovation.• We are accountable.
Introduction to the topic• Centralization is said to a process whereconcentration of decision making is in a few hands.Centralization: the degree to which decisionmaking is concentrated at single point in theorganization is called a centralization process, inthis process no lower employee is involved indecision making.
Introduction to the topic• Decentralization is a systematic delegation ofauthority at all level of management & in all ofthe organization. In decentralized companies,authority is retained by the top management fortaking major decisions & framing policiesconcerning the entire process of the company’swork. Rest of the authority may be delegated tothe middle & lower level of management
Practical study oforganization• In Coca Cola the decision making process iscompletely centralized and all decision are beingtaken by top level management and those decisionare implement by middle and lower levelmanagement .• Various departments make their annual plans andgive their plans to the top level management, themanagement will decide how to execute the plan.•
Practical Study ofOrganization• 5 years ago the CCBPL was operating with adecentralized management structure, wheredecision making process involved the local andterritory level management as well.• The company, after a massive study of its workingand the local working condition decided totransform its structure into centralization.• Decentralization was not considered appropriate tocompete in the market.
Practical studyCentralized decisions are taken in the presentstructure of CCBPL.All the major decisions regarding marketing andfinancial are taken by the respective directors inCorporate office like supply chain, human resource,commercial and technical, etc.TCM( territory commercial manager) can plan forSale & marketing at locations & forward theirbusiness plans to corporate office for approval.
Practical study• Hiring & firing from worker to managers & to thedirector level is approved by the corporateauthorities.• Compensation & benefits approved by corporateauthorities.• All contracts & agreements are approved bydirector legal. All litigations are processed,pursued by him.
Swot Analysis• Strengths:• Decisions are taken without prejudicesness andfavor.• Decisions are visionary and final.• Lengthy process in taking decision is discouraged.• Uniform decisions are taken for all territoriallocations and employees.• Personal likings and disliking at locations for anyreasons except on merit are discouraged andunaccepted.
Swot Analysis• Weaknesses:• Delay in decision due to non availability of thedeciding authority.• Delay in decision results in indulging unnecessarylitigations and problems especially in companyvehicle accidents, etc.• Delay in settlement of financial matters.• Delay in insurance and medical claims andreimbursements thereof.
Swot Analysis• Opportunity:• Talented and qualified individuals irrespective ofreligion, gender, race, locality, and section canavail and seek opportunity of employment andassociation.• Carrier growth and job advancement.
Swot Analysis• Threats:• Threats by competitors like Pepsi in the market asthey take timely and immediate decisions.• Removal of empty stock of coca cola productsfrom the market by the competitors to minimizesale volume.• Disallowing the local authorities to take counteraction at their level to save the damages.• Litigations are caused due to delayed decisions.
Conclusion• Conclusion:• No system introduced and made by mankind isfinal or perfect.• Each and every system carries strength andweaknesses.• Coca Cola has a worldwide system having thelargest sale volume of high quality products.• The company business is growing rapidly &successfully.• The company’s performance proves thatcentralization of their policies are right andappropriate .
Data collection sources• Web & Internet.• Officials and management of Coca Cola beveragesPakistan , Sialkot.• Magazines and Newspapers.• Television