Coca Cola In Vietnam Case Study Analysis


Home >> Kelloggs >> Coca Cola In Vietnam >>

Coca Cola In Vietnam Case Study Analysis

Background and Facts

Coca Cola In Vietnam a workplace supplies merchant for small and also average sized companies has just recently been associated with planning for a merger with its competitor House Deport, which has actually affected performance degrees in departmentswith the senior manager involved in lawful difficulties presented by the federal Profession Commission. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With challenges in the kind of a potential cultural adjustment and also reduced employee spirits, the company is in need of a full reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising division of Coca Cola In Vietnam is raising unpredictability in the workplace resulting in numerous challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting critical decisions given that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Given the fact that the store has a global visibility with branches in UK, USA, Canada and Germany, political factors in each of these nations might have the ability to affect performance or critical goals. Federal Trade Commission's antitrust match against the merger took up important time of the company's senior monitoring recommending that 'political' factors can have serious implications for a worldwide business.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide circumstance suggest that Coca Cola In Vietnam is prospering in an atmosphere where there is possible development of services. In addition to this, truth that shop consumers are mainly looking for office products for home offices suggests that the market has an increasing trend of business owners as well as home based services.

Social factors: Social patterns in the economic situation show that consumers are searching for ease as well as eye-catching costs. Marketing research demonstrates how the customer for Coca Cola In Vietnam lacks recognition regarding locating remedies which can provide a mix of benefit as well as low costs.

Technical factors: Technology plays a crucial role in Coca Cola In Vietnam's company strategy specifically as the company is piloting Technology centers which would provide modern technology sales and assistance in the form of memory upgrades, peripheral installments. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Coca Cola In Vietnam's case as highlighted in this area.

Worries about cultural change: There is uneasiness concerning a social adjustment that would certainly occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the employee already showing unhappiness over this prospective step. This anticipated modification has actually created tension in the workplace which has been paired with the past anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is lack of workers that can match the stressful environment of a fast-paced organization. Not only does this result in trouble in finding the appropriate individuals, it places stress on brand-new hires as can not withstand the rate and pressure that the organization anticipates them to bear.

Dual Reporting Lines: Newbies locate this organizational society troublesome and also difficult to handle specifically as dotted line relationships are suggested to be weak in general and unbiased setting as well as efficiency examination is still done by the strong line supervisor. This suggests that newcomers could shed quality concerning their corresponding functions and purposes especially as dotted line reporting does not maintain them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and also ideal for the work yet the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Task Instability: Worry and also instability can be identified as two major concerns that Lewis would certainly be handling specifically as the merging has currently be cancelled as well as two elderly executives of the marketing department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a social change but would additionally need to show herself in her new function.

Inappropriate Administration Style of Leader: Lewis's administration style and its incompatibility with the advertising department's duty can additionally be seen as an OB challenge specifically as she has been made use of to dealing with issues in the operations division where personnel are educated to focus on processes and get them right. The advertising and marketing division on the various other hand can be seen as a team of individuals who are used to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments between three divisions, advertising, merchandizing and also operations specifically over the appropriation of the advertising mix can be determined as one more OB issue. The advertising department does not share the very same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and procedures divisions do not concur over the marketing mix allotment amongst one another either.

Disintegration in Advertising Department: Disintegration in between the advertising and marketing divisions can be determined as one more OB problem which can require further interest. The truth that the marketing and advertising areas in the advertising and marketing department are disconnected is preventing both divisions from acquiring from each various other's experience and also proficiency. Assimilation of marketing with merchandising and also procedures would come to be more difficult if the marketing department itself is degenerated which can be one more possible OB problem.

Coca Cola In Vietnam Analysis

Various theories have actually been used to discuss the scenarios to obtain more clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that staffs are easy as well as careless, have little ambition as well as resist modification. The hard version of this concept highlighted coercion, limited controls, dangers and punishments. Over time it generates reduced efficiency, refined sabotage and also rivalry (Offer, 2003). Although the situation at Coca Cola In Vietnam is not completely following Concept X, it can be seen that brand-new hires are discovering this environment rather demanding which may at some point bring about a better inclination of the management towards Theory X. As per McGregor's supported view, which he called Concept Y, the necessary task of the administration is to set up organizational conditions to ensure that people can achieve their own goals best by routing their efforts in the direction of business benefits. If people locate no contentment in their job, the monitoring would have little choice however to count on concept X as well as exterior control (Deal, 2003). Also while evaluating Lewis's administration design, theory X might have been suitable in the procedures department somewhat but the Advertising and marketing division would call for dependence on Theory Y so as to get the creativity as well as originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue regarding bringing harmony in between the advertising and marketing division is concerned, this would originally bring about contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, during the initial stage of team growth, people might not bond, as they are active discovering their area in the group. By incorporating the advertising and marketing department's job, there may coincide preliminary disconnect which might lead to the second phase of 'storming' where the teams challenge each other. Nonetheless, it is only during the third stage or 'norming' when they would collaborate to share ideas prior to the team can produce synergy in the fourth phase 'performing'.

When people are provided with adjustment, they enter stage one and so there might be feelings like despair, uncertainty, disappointment, anger, anxiety, denial and also disorientation.The scenario at the advertising and marketing division of Coca Cola In Vietnam is similar so Lewis can get comfortable with the concept that it is not amazing actions. It is during this stage that Lewis will certainly have to give guidance to the division so that they can find a feeling of instructions. It can be seen just how Krasnow has already made this transition less complicated by making Lewis get included in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has reviews the value of 'safety and security needs as being a reduced level demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel secure and also out of danger' is at the 2nd level of demands. Before a staff member can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Security' requires met.

SWOT Analysis for Coca Cola In Vietnam Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous theories to comprehend exactly how to manage the current scenario at hand. The adhering to 3 choices have been suggested to assist Lewis take care of the organizational difficulties in the advertising department. Each of these choices has actually been suggested for reducing the change required to bring the advertising and marketing department according to the requirements of the market and for making the social modification that would adhere to as soon as the current leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Production features. Integration of Advertising And Marketing with Operations.

Assessment of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The in-house advertising agency of Coca Cola In Vietnam is already stamina for the organization in terms of conserving up on expenses associated with advertising and promotion. Considering that no new employment has been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising feature, this is a desirable opportunity for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business advertising in addition to firm and retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The benefit of this approach is that it will integrate both features while reducing the requirement for hiring an additional resource for advertising and marketing. Along with this, Lewis would certainly be heading the advertising and marketing department and regardless her replacement would be required for the current function that she is executing. The downside of this choice is that outside hiring may bring about resentment from internal personnel who might be looking at the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Provided the competitive stress and high top quality work called for from the advertising firm, it is advised that Lewis must permit the production device to be a different feature from the advertising system. Because many advertising companies had these two functions as different devices, it makes even more sense to adhere to the norm.

Combination of Advertising And Marketing with Operations: Because Lewis is currently dealing with the marketing and operations departments at the same time; it makes good sense to integrate the two functions because she has actually been successfully taking care of both ends. The truth that the two departments currently have major distinctions over allocation of resources recommends that this assimilation might be able to cause consistency specifically as Lewis would be heading both ends.However there are different disadvantages of this action particularly as it would place way too much burden over Lewis's shoulders. The fact that Lewis has to adapt her monitoring design for the advertising department suggests that these two departments would certainly be culturally diverse. Lewis may not be able to apply one type of leadership style to both departments which might result in inefficiency in either one of the 2 features.


An evaluation of the three alternatives shows that assimilation of advertising and marketing and also operations would certainly not be a possible action because of the huge differences between both departments despite the fact that presently Lewis is dealing with both. While separation of the manufacturing function may have been a beneficial relocation for the marketing division, the reality that it would certainly suggest placing a third feature under Lewis's wing means this ought to be prevented. The integration of the advertising and marketing department is the most effective choice in regards to obtaining the optimum arise from the department. An activity prepare for this alternative is talked about listed below.

Activity Strategy.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

Judith Shapiro will be employed to take Lewis's area as SVP of marketing and advertising.

Manufacturing feature will certainly remain component of advertising and marketing under marketing function.

Lewis will divide herself from procedures.

An autonomous leadership style with worker empowerment will be made use of in marketing division.

Open up door policy and focus on cross department interaction will be focused on getting rid of dissonance.

Backup strategy.

If the combination does not work out as planned, a contingency plan would adhere to which would divide the manufacturing feature from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing function will definitely be separated by placing it under an SVP manufacturing.