coca-cola-organizational-structure

Coca-Cola Organizational Structure

  • The Coca-Cola Company has a somewhat complex matrix organizational structure with geographic divisions, product divisions, business-type units, and functional groups.
  • Coca-Cola has a total of six business segments, with four of these geographic divisions and the remainder business-type units for the company’s acquired brands and bottling operations. In 2021, the company introduced 9 new business units to eliminate the duplication of resources and introduce new products more quickly.
  • Product-based divisions help Coca-Cola manage a portfolio of approximately 200 brands, while there are also various functional groups to support business operations in multiple departments.

Origin story

The Coca-Cola Company was founded in 1892 by Asa Griggs Candler who purchased a beverage brand and recipe from pharmacist John Stith Pemberton. After three short years, Coca-Cola was available in every state in the union.

Today, the Coca-Cola brand is one of the most valuable in the world and is available in all but two of the world’s 195 countries. To manage its vast global operations, the company has a somewhat complex matrix organizational structure with geographic divisions, product divisions, business-type units, and functional groups.

Interested in learning more about how this gigantic company is structured? Let’s delve into the details below.

Geographic divisions 

The Coca-Cola Company is structured according to four geographic divisions not unlike other companies with similar reach. 

These divisions, which the company calls segments, are:

  1. Europe, Middle East & Africa (EMEA).
  2. Latin America.
  3. North America, and
  4. Asia Pacific.

Business-type units

The company also has two non-geographic divisions which it also calls segments:

  1. Global Ventures (GV) – this was a unit that was created after Coca-Cola acquired coffee chain Costa Ltd in 2019. Today, the Global Ventures unit houses any other brand, acquisition, or investment the company feels it can scale globally. This includes energy drinks, juices, smoothies, and tea.
  2. Bottling Investments Group (BIG) – incorporating all company-owned bottling operations. At present, these facilities are located in parts of Africa, Bangladesh, India, Malaysia, Nepal, Oman, Philippines, Singapore, Sri Lanka, and Vietnam.

Effective January 1, 2021, the company also introduced nine new business units to eliminate the duplication of resources and allow new products to be introduced more quickly.

Business units are also based on geography and include:

  1. North America.
  2. Latin America.
  3. Europe.
  4. Africa.
  5. Eurasia and Middle East.
  6. Japan and South Korea.
  7. Greater China.
  8. ASEAN and South Pacific. 
  9. India and Southwest Asia.

Operational leaders of all geographic divisions and business-type units report to current President and COO Brian Smith.

Product-based divisions

Product-based categories help Coca-Cola manage its portfolio of around 200 brands. These categories include:

  • Coca-Cola.
  • Sparkling Flavors.
  • Hydration, Sports, Coffee and Tea.
  • Nutrition, Juice, Dairy, and Plant, and
  • Emerging.

Each category is led by a President who works across a networked organization to build Coca-Cola’s brand. Each also reports directly to the Chief Marketing Officer.

Function-based groups

Coca-Cola has a number of specialized function-based groups where the organization itself is divided according to shared employee skill sets and experience.

Functional groups include:

  • Marketing.
  • General Counsel. 
  • Security.
  • Investor Relations.
  • Global Community Affairs.
  • Global Finance Operations.
  • Mergers & Acquisitions.
  • Services Operations. 
  • Global Flavor Supply.
  • Communications, Sustainability, and Strategic Partnerships.
  • Technical and Innovation.
  • Accounting.
  • Corporate Development.
  • Securities and Capital Markets.

Read Next: Coca-Cola’s Business And Distribution, Coca-Cola Mission Statement and Vision, Coca-Cola Competitors, What Does Coca-Cola Own?, Coca-Cola PESTEL Analysis, Coca-Cola SWOT Analysis, Coca-Cola Vs. Pepsi.

Coca-Cola Connected Business Facts

Coca-Cola Business Strategy

coca-cola-business-strategy
Coca-Cola follows a business strategy (implemented since 2006) where through its operating arm – the Bottling Investment Group – it invests initially in bottling partners operations. As they take off, Coca-Cola divests its equity stakes, and it establishes a franchising model, as long-term growth and distribution strategy.

Coca-Cola Mission Statement

coca-cola-vision-statement-mission-statement
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”

Coca-Cola SWOT Analysis

coca-cola-swot-analysis
Coca-Cola is the market leader of the soft drink industry. It is also the most widely recognized brand, with a Business Insider study revealing that a staggering 94% of the world population recognizes the red and white logo. However, Coca-Cola faces significant challenges with increasingly health-conscious consumers and less access to water resources.

Coca-Cola PESTEL Analysis

coca-cola-pestel-analysis

What Does Coca-Cola Own?

what-does-coca-cola-own
The Coca-Cola Company is an American multinational beverage corporation founded in 1892 by pharmacist Asa Griggs Candler. Many consumers associate the company with its signature soda in a red can or bottle. In truth, however, The Coca-Cola Company owns a plethora of soft drink, juice, tea, coffee, and other beverage brands. 

Coca-Cola Competitors

coca-cola-competitors
The Coca-Cola Company has 21 different billion-dollar brands or brands that generate more than $1 billion or more in revenue each year.  The company also sells its products in nearly every country in the world, with Cuba and North Korea the only two countries where it is not sold officially. What’s more, the Coca-Cola brand is worth $87.6 billion, making it one of the most valuable among all companies. Though these figures allow Coca-Cola to enjoy market dominance in many countries, the company is nevertheless subject to intense competition.

What Does PepsiCo Own?

what-does-pepsico-own
PepsiCo was founded in 1902 by American pharmacist and businessman Caleb Bradham as the Pepsi-Cola Company. Bradham, who hoped to emulate the success of Coca-Cola, marketed the beverage from his pharmacy and registered a patent for its recipe the following year. Today, Pepsi is a global company with a portfolio of 23 billion-dollar brands, or brands earning more than $1 billion in annual revenue. Sixteen of these brands are beverage-related, while the remaining seven are associated with snacks and other food products.

Pepsi Competitors

pepsi-competitors
In 1965, PepsiCo acquired Frito-Lay in what the chairmen of both companies called a “marriage made in heaven”. The resultant company transformed PepsiCo from a soft drink organization and set it on a path to becoming one of the world’s leading food and beverage companies.  Today, PepsiCo claims to operate in more than 200 countries and territories around the world with seven distinct divisions and many successful brands.

Read Also: Coca-Cola Business ModelCoca-Cola SWOT AnalysisCoca-Cola PESTEL AnalysisCoca-Cola’s Business And Distribution StrategyCoca-Cola Mission Statement and Vision StatementCoca-Cola Vs. PepsiWhat Does Coca-Cola OwnCoca-Cola CompetitorsBusiness Model Of The PepsiCo.

Read Next: Pestel AnalysisSWOT AnalysisPorter’s Five ForcesSTEEP AnalysisSOAR AnalysisBCG MatrixAnsoff Matrix.

Organizational Structure Case Studies

Airbnb Organizational Structure

airbnb-organizational-structure
Airbnb follows a holacracy model, or a sort of flat organizational structure, where teams are organized for projects, to move quickly and iterate fast, thus keeping a lean and flexible approach. Airbnb also moved to a hybrid model where employees can work from anywhere and meet on a quarterly basis to plan ahead, and connect to each other.

eBay Organizational Structure

ebay-organizational-structure
eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.

IBM Organizational Structure

ibm-organizational-structure
IBM has an organizational structure characterized by product-based divisions, enabling its strategy to develop innovative and competitive products in multiple markets. IBM is also characterized by function-based segments that support product development and innovation for each product-based division, which include Global Markets, Integrated Supply Chain, Research, Development, and Intellectual Property.

Sony Organizational Structure

sony-organizational-structure
Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.

Facebook Organizational Structure

facebook-organizational-structure
Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams based on the main corporate functions (like HR, product management, investor relations, and so on).

Google Organizational Structure

google-organizational-structure
Google (Alphabet) has a cross-functional (team-based) organizational structure known as a matrix structure with some degree of flatness. Over the years, as the company scaled and it became a tech giant, its organizational structure is morphing more into a centralized organization.

Tesla Organizational Structure

tesla-organizational-structure
Tesla is characterized by a functional organizational structure with aspects of a hierarchical structure. Tesla does employ functional centers that cover all business activities, including finance, sales, marketing, technology, engineering, design, and the offices of the CEO and chairperson. Tesla’s headquarters in Austin, Texas, decide the strategic direction of the company, with international operations given little autonomy.

McDonald’s Organizational Structure

mcdonald-organizational-structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.

Walmart Organizational Structure

walmart-organizational-structure
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.

Microsoft Organizational Structure

microsoft-organizational-structure
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time it also became more hierarchical, however still keeping its hybrid approach between functions, engineering groups, and management.

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