Institution
There have been rapid changes in technology in the 20th century. The changes have been crucial drivers of globalization. The developments in computerization, telecommunication and transportation has slashed the costs operation and increased the speed and ease with transmitting of people, goods and information. In many cases, Coca Cola sees globalization as an aspect of assuming a superior business model and later geographically extending it. This is of course accompanied by necessary modifications in maximizing the economies of scale of the firm. From such perspectives, the main strategic challenge remains to be the determination of the amount to be adapted by the business model. The level of standardize among different countries versus the degree of localization in response to the local differences is also an influential factor in Coca Cola’s competitive strategy (Kapferer, 2012).
Recently, Coca Cola has moved towards a more localized approach and less product standardization. However, irrespective of how the company balances standardization and localization, Coca Cola views global strategies in ways that focus on product similarities across the world. The potential of including the scale economies materializes where commonalities unlock their primary sources and outcomes of added value (Hill & Jones, 2012). The combination of communication and technology produces favorable infrastructure for coca cola and enables the possibility of the immediate flow of movements and information of worldwide funds. In turn, Coca Cola’s organizational forms are generated and allow the company to cross national borders to reach both the international customer bases and communicate with subsequent parts of the company. In an age of vast globalization, international movements with respect to commodities continue persisting as trends in globalized markets.
Based on the industrial organization model, Coca Cola’s organizational support systems have different impacts on the efficiency and effectiveness of the teams and in the provision of the necessary resources for these teams that operate in multi-team environment. In such a case, the resources provided will include different resource types through which teams need to be more effective. In chartering of entirely new teams, all organizational enabling resources lie first in the identification list (Hitt, Ireland & Hoskisson, 2012). Some examples at Coca Cola enabling resources will include leadership, equipment, facilities, training and information. In regards to planning for resources, the contingencies therein will include constraints that are imposed on organizational resources which are not directly earmarked for exclusive application. The different types of resources which are scarce in nature need to be shared among the multiple teams.
The basic principles that Coca Cola uses encourage as well as develop and reward innovation include creating design teams which are aimed at acknowledging employees with the highest contribution of time, ideas, and effort. Such recognition comes from direct leaders and through peer recognition. They also seek to provide special elements of recognition to innovators as they keep names that are associated to the contributors. It is also prudent to actively disseminate success theories concerning invention (Dagnino, 2012). Coca Cola makes innovation self-rewarding including the perception of remaining a …