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Coca-Cola Company: Then and Now

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Case Study Coca-Cola Company: Then and Now

Vladyslav Mozharov vladyslavmozharov@cityu.edu MBA 545: People and Systems in Organizations
John Elmer
Case Study – Coca-Cola Company: Then and Now
May 1, 2014

The traditional change model consists of three steps: unfreezing, i.e. recognizing the need for change because of some event or threat, the actual change actions and refreezing, i.e. incorporating new ways of operating and thinking into everyday operations of the organization. Apply this model to the situation at the coca-cola company at the point when the lawsuit was served in 1999.

As it is stated in the case of Coca-Cola, it was a marketing machine ran by bureaucrats and tried to create an image of their brand more than to give to customers what they want. At that stage, Ivestor, who was a CEO of the company, was focusing more on the numbers and revenues than on what is really going inside of the company. He was described as insecure and arrogant and refused to listen to his own people, working for him. Instead of solving the real problems in the company, he was focusing on keeping profits on the same level. Case gives an example of passivity of his actions by increasing the price of Coke syrup sales to bottlers to keep it. Of course, it was a mandatory action due to the largest product recall in their history, but it only accumulated a racial tension in the company, as he was indifferent to people and focused on financial results. His lack of actions for solving the internal problem led to a lawsuit with his own company, which could be prevented if he has listened to people, who tried to warn him and turn him to actions. However, he ignored them. Ivestor tried to prevent dramatic outcomes of the lawsuit more than to solve the problem and prevent it in the future. His actions increased the number of plaintiffs from 4 to over than 2000 participated

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