- 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.
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.
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:
- Europe, Middle East & Africa (EMEA).
- Latin America.
- North America, and
- Asia Pacific.
The company also has two non-geographic divisions which it also calls segments:
- 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.
- 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:
- North America.
- Latin America.
- Eurasia and Middle East.
- Japan and South Korea.
- Greater China.
- ASEAN and South Pacific.
- India and Southwest Asia.
Operational leaders of all geographic divisions and business-type units report to current President and COO Brian Smith.
Product-based categories help Coca-Cola manage its portfolio of around 200 brands. These categories include:
- Sparkling Flavors.
- Hydration, Sports, Coffee and Tea.
- Nutrition, Juice, Dairy, and Plant, and
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.
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:
- General Counsel.
- Investor Relations.
- Global Community Affairs.
- Global Finance Operations.
- Mergers & Acquisitions.
- Services Operations.
- Global Flavor Supply.
- Communications, Sustainability, and Strategic Partnerships.
- Technical and Innovation.
- Corporate Development.
- Securities and Capital Markets.
- Matrix Organizational Structure: The Coca-Cola Company employs a matrix organizational structure that encompasses geographic divisions, product divisions, business-type units, and functional groups.
- Geographic Divisions: Coca-Cola is divided into four geographic segments: Europe, Middle East & Africa (EMEA), Latin America, North America, and Asia Pacific.
- Business-Type Units: Two non-geographic segments are Global Ventures (GV) for brand acquisitions and investments and Bottling Investments Group (BIG) for company-owned bottling operations.
- New Business Units: Introduced in 2021, nine new business units were established to eliminate resource duplication and expedite the introduction of new products. These units are also based on geography.
- Product-Based Divisions: Coca-Cola manages its extensive portfolio of around 200 brands through product-based categories such as Coca-Cola, Sparkling Flavors, Hydration, Sports, Coffee and Tea, Nutrition, Juice, Dairy, and Plant, and Emerging.
- Function-Based Groups: Various functional groups are organized based on shared employee skill sets and experience. These groups include Marketing, General Counsel, Security, Investor Relations, Global Community Affairs, and more.
- Operational Reporting: Operational leaders of geographic divisions, business-type units, and product-based categories report to the President and COO.
- Marketing Leadership: Each product-based category is led by a President who reports directly to the Chief Marketing Officer, facilitating a networked approach to building the Coca-Cola brand.
- Diverse Brand Portfolio: Coca-Cola’s complex structure helps manage the vast diversity of its product offerings, from traditional beverages to emerging trends.
- Global Presence: The matrix structure allows Coca-Cola to manage its operations across the globe, catering to various regional preferences and market demands.
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.
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Read Also: Coca-Cola Business Model, Coca-Cola SWOT Analysis, Coca-Cola PESTEL Analysis, Coca-Cola’s Business And Distribution Strategy, Coca-Cola Mission Statement and Vision Statement, Coca-Cola Vs. Pepsi, What Does Coca-Cola Own, Coca-Cola Competitors, Business Model Of The PepsiCo.
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