Coca Colas Corporate Communication Strategy

Coca Colas Corporate Communication Strategy 1. INTRODUCTION Communication is the medium through which companies both large and small access the vital resources they need to operate (van Riel 1995). Without effective and integrated communication systems an organization will be unable to develop an appropriate structure for its corporate communication strategy. Given that its corporate communication entails selectively communicating the organizations views and objectives to its stakeholders (whom it relies on for the success of its business), it can therefore be described as a key management strategy. This report will critically assess Coca Colas Corporate Communication strategy through the evaluation of communication frameworks and models. It will look at the internal structure of Coca-Colas organization and how the company utilises corporate communication strategies to both epitomize their corporate identity to stakeholders and improve their reputation. It also looks at the corporate ethics and culture of the company and the impact of Corporate Communication management on the organisation 1.1 Background Information The Coca-Cola Company: Coca-Cola was invented on May 8, 1886, in Atlanta, Georgia by Dr. John Stith Pemberton. It was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was then patented in 1887, when another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. It was registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. By the late 1890s, Coca Cola was one of Americas most popular fountain drinks, largely due to Candlers aggressive marketing of the product. With Asa Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Today the Coca-Cola Company operates in more than 200 countries and markets nearly 500 brands and 3,000 beverage products. The company employs over 92,400 associates worldwide and has a consumer serving (per day) of nearly 1.6 billion, with a net operating revenue of over $31.9billion (as of December 31, 2008). Throughout the world today, no other product is as immediately recognizable by its brand as Coca-Cola. (www.thecoca-colacompany.com.html, 2009) 2. CORPORATE COMMUNICATION ‘Corporate refers to complete, entire or total entities of the organization, while ‘communication means to impart, share or make common. Therefore, ‘corporate communication can be defined as a total communication of the organization or integrating different messages of organizations under one banner (Christensen et al. 2007). Van Riel and C. Fombrun (2006, p.25), cite Jacksons (1987) definition of corporate communication as ‘the total communication activity generated by a company to achieve its planned objectives. That total communication represents all the different forms of communication that is occurring within the organization, including marketing, managerial and organizational interaction. An organisation such as Coca-Colas corporate communication strategy plays an important role in aiding stakeholders understanding of the organization and communicating the organizations identity. Corporate communication within an organization is essential for the implementation of strategic objectives, build brand and reputation and thereby create economic value. It is therefore a set of activities involved in managing and orchestrating all internal and external communications aimed at creating favourable starting points with stakeholders on whom the companies depend (Fombrun and van Riel 2006). Freemans (1984, p. 46) stakeholder approach defines stakeholders as: â€Å"any group or individual who can affect or is affected by the achievement of the firms objectives.† The stakeholders of The Coca-Cola Company (see Figure 3 below), include: consumers, customers, suppliers, employees, government and regulators, NGOs The local communities Strong centralized functions with direct connection to the Chief Executive Officer (CEO) is the best way for a company to ensure the success of its corporate communication function. (Argenti, 1998). This was evident in Coca-Cola Company, under the leadership of the former CEO Douglas Ivester whose highly formalized, centralized organizational structure, with clear hierarchy of authority and a mechanistic management process has helped maintain control and drive aggressive marketing and expansion plans. This management structure was criticized by the external communities, claiming that the companys perspective was too global and ignored the local communities. Under the direction of the companys new CEO, Coca-Cola began decentralizing some of its activities in order to become more localized. Increased horizontal communication is now occurring within the organization. Sutherland and Canwell (2004, p.130) define horizontal communication as â€Å"informal communication between peers or colleagues on the same level of the organizational structure†. Coke immediately began realizing economies of scale and scope, as well as low-cost production from a globalization strategy that enables product design, manufacturing and marketing to be standardized throughout the world. Corporate communication if strategically implemented within an organisation helps build favourable corporate reputation, which in turn is influenced by corporate identity, behaviour, symbolism and has an impact on organizational performance (van Riel and Balmer, 1997). According to Argenti (1998) corporate communication model below (Figure 2), an organization communicates to its stakeholders through messages and images, who then respond by associating themselves with that particular organization. It affects the perceptions of stakeholders about the organizations prospects and so influences the resources that would be available to them (Fombrun and van Riel, 2006). Image, Identity and Reputation, Crisis Management, Community Relations and Corporate Ethics, Employee Relations and Human Resource Management (HRM) are all essential functions of an organization that depend on effective corporate communication to be successfully implemented. 2.1 Image, identity and reputation Corporate identity is the reality and uniqueness of an organization, which is integrally related to its external and internal image and reputation according to Gray and Balmer (1998), and is a means to achieve a competitive advantage (Schmidt, 1995), while the ‘Image of a company is the reflection of the organizations reality. It is the corporation as seen through the eyes of its stakeholders (Argenti, 1998). Corporate image has 3 dimensions: Relational dimension relationship the company has with the government, the local community and its employees; Management dimension – what the corporate goals, decision-making processes, knowledge management and understanding of company objectives; Product dimension – product endorsement and support, competitive advantage and promotional distinctiveness. Coca-Colas corporate communication strategy within the company includes conducting stakeholder analysis to understand their individual stakeholders needs and attitudes. This involved a series of focus groups with consumers aged 18 and over and with employees of the Coca-Cola Company. It also included interviews with customers, non-governmental organizations and the media. The consistent use of the colours red and white, the lettering and the model-wave over time is an integral part of the companys corporate visual identity and is important to all stakeholder groups. If managed effectively corporate reputation can be a valuable asset that makes an organization more resilient in todays competitive environment. â€Å"Corporate reputation is influenced by the way in which the company projects its image via behaviour, communication and symbolism† (Gotsi and Wilson, 2001, p. 30).It is a ‘multi-stakeholder construct that can be used to measure how effective an organizations communication system is (Fombrun and van Riel, 2006). When information that stakeholders need to make a decision about a company is insufficient, they will sometimes turn to the reputation of that company to seal the decision. 2.2 Crisis management and culture According to Jones (2000), a good reputation acts as a buffer to companies in times of crisis. After over 200 people, including school children reported feeling unwell in 1999; Coca-Cola was forced to issue recall of its soft drinks in countries in Western Europe including Belgium, France, the Netherlands and Luxembourg (Taylor, 2000). Taylor (2000) explained in his case study that a companys public relations and communication strategy should be executed on a global scale. He did this using Hofstedes (1980) theory of cultural dimension, which explained how values are influenced by culture in differing nations. Taylor (2000) proposed that in countries with high uncertainty avoidance and high power distance, citizens reacted more strongly to this tainting crisis, by forcing the government to place bans on the sale of Coca-Cola related products, while the governments of countries with low uncertainty avoidance and low power distance did not really react to the crisis. Culture management was also needed to accurately understand the environment they were embarking on. Cultureconsists in those patterns relative to behaviour and the products of human action which may be inherited, that is, passed on from generation to generation independently of the biological genes (Parson, 1949 p. 8). Under the guidance of the new CEO, the company adopted a think local, act local approach to marketing, which highlighted the importance of addressing the cultural needs of customers in the local market. Daft maintained the view that although Coca-Cola is a global brand, customers do not drink Coca-Cola globally. As a result, Coca-Cola has been adopting a localized strategy in marketing, advertising, and public relations by carrying out extensive stakeholder analysis as seen in Figure 3. The company also adopted a risk management approach that includes financial, operational, social, environmental and ethical considerations and are of the view that by identifying these risks and the potential consequences they could have on the business, they can proactively focus on these areas and identify ways to more effectively manage their impact on their operations. 2.3 Community relations and corporate ethics Coca-Cola is now working to become a model citizen by reaching out to local communities and getting involved in civic and charitable activities. Like reputation, corporate ethics and relationship with the external stakeholders is very important for building a positive image. Coca-Colas social responsibility and corporate ethics helps build company integrity. In 1960, Keith Davis suggested that corporate social responsibility refers to business decisions and actions taken for reasons at least partially beyond the firms direct economic or technical interest. Stakeholder management is important here as it reconciles the companys objectives with the claims and expectations being made by them of various stakeholder groups. 2.4 Employee relations and Human Resource Management Human Resource Management (HRM) is one of the most important forms of management within an organization and effective communication is essential for HRM to be successful. HRM is as defined by Bratton and Gold (1999): that part of the management process that specializes in the management of people in work organizations. HRM emphasizes that employees are critical to achieving sustainable competitive advantage, that human resources practices need to be integrated with the corporate strategy, and that human resource specialists help organizational controllers to meet both efficiency and equity objectives. The Coca-Cola Company links employee (internal) communications and employee relations and believe that they are integral components needed for the success of the organization. Employee Relations, according to Heery and Noon (2001), involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals, which arise out of or affect work situations. The employees are the most valued internal stakeholders, as they communicate the product to the companys external stakeholders. Internal Corporate Communication falls under the organizational management department, as seen in van Riel (1995) model of integrated corporate communication. It is defined, according to Welch and Jackson (2007) as communication between an organisations strategic managers and its internal stakeholders, [in the case of Coca-Cola, its employees] designed to promote commitment to the organisation; a sense of belonging to it; awareness of its changing environment and understanding of its evolving aims. The Coca-Cola Company follows a similar structure regarding internal communication as depicted in Welch and Jacksons (2007) model (Figure 2). Within the company, corporate messages relayed directly to employees aid in reinforcing employee commitment towards the overall organizational objectives. On the same level, direct communication between managers and their employees helps create a sense of belonging to the organization. This sense of belonging then motivates employees to promote awareness and understanding of the corporate brand to the external stakeholders. Guest (1990), in his approach to strategic HRM draws on the Harvard model (proposed by Beer et al., 1984), which was associated with the softer side HRM and the Michigan model (proposed by Fombrun, Tichy and Devanna, 1984), which proposes the hard HRM approach. Hard HRM see human â€Å"resources† as mainly a factor of production, an expense of doing business rather than the only resource capable of turning inanimate factors of production in to wealth. In contrast, soft HRM places an emphasis on human side of things. The soft model focuses on treating employees as valued assets and a source of competitive advantage through their commitment, adaptability and high quality skill and performance (Legge, 1995). The Coca-Cola Company incorporates both ‘hard HRM and ‘soft HRM within their organization reflected in the ‘Choice Model adapted by Analoui (2002, p. 30). This model depicts a more holistic approach to HRM as seen in Figure 5 below. The Input Stage of HRM policies and frameworks This model represents the communication strategy with emphasis on HRM, being used by global organizations like Cola-Cola. It explains how the input stages of HRM policies are formulated at senior management levels based on the knowledge and information attained from internal, personal and external sources. These policies are then passed on to the functional and line management level where they are implemented, and finally ends at an output level that affects the individual, organisation and society bringing about, improved performance and effectiveness and quality of work life. This model proves effective as it takes into consideration the culture of the organization, as well as individual and stakeholders perception of the company and can be interpreted on an international basis for a company such as Coca-Cola. CONCLUSION This report critically reviews the corporate communication strategies being utilized within the Coca-Cola Company. It reflects on the nature, scope and focus of corporate communication, with emphasis on Human Resource Management and Employee Relations. It describes how corporate communication is essential for corporate image, identity and reputation to be understood by stakeholders. It explained how under the corporate communication strategy, Cola-Cola is able to formulate a more holistic approach to HR management, linking the needs of the internal stakeholders with those of its external stakeholders to achieve a more effective organization. Finally it concludes that company performance and efficiency is linked to the corporate communication strategy of an organization and how successful its implementation is. Bibliography Analoui, F (2002) The Changing Patterns of HRM. UK: Ashgate. Argenti, P.A. (1998) Corporate Communication. 2nd ed. Boston, MA: Irwin McGraw-Hill. Beer, M. et al. (1984) Managing human assets. New York: The Free Press Bratton, J. and Gold, J. (1999) Human Resource Management: Theory and Practice. 2nd ed. London: MacMillan Press. Christensen, L.T., Cornelissen, J.P. and Morsing, M. (2007) Corporate communications and its receptions: a comment on Llewellyn and Harrison. Human Relations Journal, Vol. 60 (4), p.653-661. Cornelissen, J.P. (2008) Corporate Communication: A Guide to Theory and Practice. 2nd ed. London: Sage Publications Ltd. Davis, K. (1960) Can business afford to ignore its social responsibility? California Managements Review, Vol. 2 (3), p. 70-76. Freeman, R.E. (1984) Strategic Management: AStakeholder ApproachBoston, MA: Pitman Fombrun, C.J. and Riel, C.B.M. van (2006) Essentials of Corporate Communications: Implementing practices for effective reputation management. Dawsonera [Online]. Available at http://dawsonera.com [Accessed: 08 November 2009]. Fombrun, C.J et al. (1984) Strategic Human Resource Management. New York: John Wiley Gotsi, M and Wilson, A. (2001) Corporate reputation: seeking a definition. Corporate Communications: An International Journal, Vol. 6 (1), p. 24-30. Gray, E.R. and Balmer, J.M.T. (1998) Managing Corporate Image and Corporate Reputation. Long Range Planning. Vol. 31 (5), p. 685-692 Guest, D. E. (1990) Human resource management and the American dream. Journal of Management Studies, Vol. 27 (4), p. 377-397. Heery, E and Noon, M. (2001) A Dictionary of Human Relations. Oxford: Oxford University Press. Jones, M.H. (2000) Reputation as reservoir. Corporate Reputation Review, Vol. 3(1), p. 21-29. Legge, K. (1995) Human Resource Management: Rhetorics and Realities, Basingstoke: Macmillan. Oliver, S. (1997) Corporate Communication: Principles, Technique and Strategies. London: Kogan Page. Parson, T. (1949)Essays in Sociological Theory: pure and applied.New York: Free Press. Riel, C.B.M. van (1995) Principles of Corporate communication. London: Prentice Hall. Riel, C.B.M. van and Balmer, J.M.T. (1997) Corporate identity: the concept, its measurement and management. European Journal of Marketing, Vol. 31 (5), p.340-355. Schmidt, K. (1995) The Quest for Corporate Identity. London: Cassell Sutherland, J. and Canwell, D. (2004) Key Concepts in Human Resource Management. New York: Palgrave Macmillan. Taylor, M. (2000) Cultural variance as a challenge to global public relations: a case study of Coca-Cola tainting scare in Western Europe. Public Relations Review, Vol. 26, p. 277-293. Welch, M. and Jackson, P.R. (2007) Rethinking internal communication: a stakeholder approach. Corporate Communications: An International Journal, Vol. 12(2) p. 177-198. http://www.cokecorporateresponsibility.co.uk/index.html (2009) [Online]. [Accessed: 27 October 2009] http://www.thecoca-colacompany.com.html (2009) [Online]. [Accessed: 15 October 2009]

Ethics in Modern Marketing

Ethics in Modern Marketing Abstract: The success of every marketing company depends upon their involvement towards their customers. The modern marketing concept mainly stresses the importance of developing a good relationship by every marketing company with its customers to enhance their business and to withstand in the competition. During the last two decades, marketing professionals were increasing their awareness of customer/ client relationships; society has become much more aware of ethical issues.As competition increases, the marketers are involved in some unethical activities to compete and attract the customers. But the customers are more aware and they have more options for every product. They are giving high importance for quality rather than cost. Unethical practices will create a bad opinion over the product and the marketer and in turn it will result in vanishing of that business. Keywords: Modern marketing, customers, ethical issues, competition, customer relationship. Introduction:Marketing can be defined as an activity or process that involves â€Å"creating, communicating and providing value delivery to the clients and the relationship with them in advantage of the organization and its shareholders†. From this definition apparent role in society of those involved in marketing activities are: to be responsible for carrying out actions to persuade consumers in different markets segments, that, for a price, to benefit from products and services that meet their needs and fulfill their expectations and desires.Considering that the marketing aims at determining and influencing the purchasing behavior and that competition in modern economy is more intense and unscrupulous, an important issue that arises is that workers in marketing, as well as professional category may be tempted to behave unethical to achieve their objectives. Marketers today face big challenges as they try to make their marketing messages heard. Practitioner estimates suggest that consumers are exposed daily to thousands of marketing communications.This proliferation of marketing communications not only has created unprecedented levels of perceived disorder; it also has led to heightened contempt for corporations by many consumers who actively seek to avoid marketing communications from any source. Modern marketing concept: An academic called Grnroos defined marketing as â€Å"to establish, maintain and enhance relationships with customers and other partners, at a profit, so that the objectives of parties involved are met. This is achieved by mutual exchange and fulfillment of promises. † By engaging with their customers marketing professionals are able to secure report business.Loyalty schemes are a device for building that loyalty within the retail and customer service sectors. Marketing professionals talk in terms of fulfillment, meaning fulfillment of their relationship with the customer. During the last two decades, while marketing professio nals were increasing their awareness of customer/ client relationships, society has become much more aware of ethical issues. Ethical issues are concerned with making appropriate responses to social situations. Failure to make the correct social response can expose a business to reputational issues, the unwelcome attention of political activists and legal sanctions.A modern business that is interested in developing long term relationships with their customers and other stakeholders has to take an interest in ethics. Ethical problems raised in modern marketing Not a few times, marketers are usually blamed for launching and promoting on the market, the low quality products to compete in certain segments of the market price. Also the complaints relate to a significant increase in the price (to preserve brand image, or to save profits encumbered by high costs of advertising campaigns). thus depriving clients with smaller financial possibilities of access to some products and services. A lso, marketing responsibility for handling consumer raises an important ethical problem, namely, if marketing and those working in the field can create needs and cause consumers to buy things that are really has no need. Another responsibility of marketing in direction of ethics is influencing the value system and the promotion of non-values. Products advertised are not always perfect, and the ads are not designed with original concept and do not reveal the reality of the product.Ethical issues in marketing are an important consideration for a modern business. First consider marketing, our understanding of what is required of a marketing professional has changed over the last decade. It used to be adequate to discuss product, promotion and price. A modern marketing professional is also expected to develop his/her relationship with the customer or client. TOP 5 ETHICS ISSUES IN MARKETING Every business relies on marketing to attract customers and to sell products or services. The pro blem is that marketing can sometimes promote products or services in unethical ways.What can businesses do to follow ethical standards in their marketing strategies? What are the top 5 ethical issues in marketing? 1. HONESTY The news of corporate scandals seems to be a daily occurrence. Consumers have lost trust in the integrity in many corporations because of the unethical and sometimes illegal behavior that seems to be embraced in the organizational culture of the corporation. Companies need to realize that company reputation is part of the honesty factor. People seek alternatives when they know a business engages in unethical practices.The claims of â€Å"sweat shop† assembly lines has forced more than one company to change its supply chain policies simply because of the damage to brand that resulted from unethical behavior. Another important facet of honesty is an accurate representation of the product. People want to know they are receiving the quality of product that wa s presented to them through marketing. Promises made should be promises honored. A return policy is a necessary component in fostering honesty in marketing. 2. FAIRNESS Fairness is the need to balance the interests of the company with the needs of the customers.That is, companies want to sell more products in order to increase profits. Fairness is conveyed in recognizing that customers want to feel they are engaging in a transaction that will result in them receiving something of value. Value is associated with the product and with the quality of customer service. Fairness is the company treating the customer in a business to consumer transaction the same way it would want to be treated in a business to business transaction. The long term benefit of fairness is customer loyalty. 3. RESPECT Customers want to know they are respected by the company.Respect means the company sees the value of stakeholders. Groups are not subjected to stereotypes and tolerance is demonstrated for the int erests and values of others. Respect means that feedback from stakeholders is welcomed and heard. The long term benefit of respect is the company positive association with company that should foster company and brand loyalty. 4. SOCIAL RESPONSIBILTIY Social responsibility is the recognition that a company must do no harm to individuals and the community. Companies incur a trust that they will operate in such a manner as to protect the welfare of the customer.Dangerous products or lapses in safety can quickly erode confidence and trust in a company. Companies have a responsibility to â€Å"give back† to the community. Part of this marketing strategy is to convey the idea that the company is a neighbor. The company cares about the quality of life of its â€Å"neighbors† in the community at large. One way to do this is by responding to the interests of non-customer stakeholders such as through supporting local education, sponsoring environmental awareness projects, and as sisting in community enrichment efforts. . TRANSPARENCY Transparency means the marketing strategy conveys honesty about the operations of the business. A company is practicing transparency when it admits to and corrects operational problems or areas of stakeholder concern. Transparency in marketing means the company is honest about a product’s limitations. The recall policy of the automobile industry is a great example of transparency. Car companies issue recall notices to acknowledge design or mechanical flaws in automobiles.Granted, failure to do so would bring down the wrath of the federal government as this would constitute a violation of national safety standards. When voluntary, the practice of recognizes weaknesses and then seeking to correct the problem conveys the company recognizes its commitment to the customer. The long term benefit is trust. CONCLUSION Marketing includes the promotion of a company rather than the promotion of a product or service. The above point ed five issues work together to create the marketing image of the company. Unethical behavior will destroy the reputation, the name and fame and ethical image of a company.

Binary Relation and Woman

The movement for the emancipation of woman has gained ground all the over. In some western countries woman have more rights than in India. But still every where even In the most advanced countries of the world, they suffer from a number of disabilities and are regarded a social inferiors of man. It is a man-made society and man continues to dominate and exploit woman.There should be a better and fuller understanding of the problems peculiar to woman, to make a olution of those problems possible. As these problems centre round the basic problem of Inequality, steps should be taken to promote equality of treatment and the full Integration of woman In the total development efforts of the country. Woman should get equal pay for the same work, and she be treated as an equal partner in the task of strengthening world peace. Suitable steps should be taken to secure these ends.These are near unanimity on the urgency and signifi rise of democracy, the movement for the emancipation of oman has gained ground all the over. In some western countries woman have more rights than In India. But still every where even In the most advanced countries of the world, they suffer from a number of disabllltles and are regarded a social inferiors of man. It is a man-made society and man continues to dominate and exploit woman. There should be a better and fuller understanding of the problems peculiar to woman, to make a solution of those problems possible.As these problems centre round the basic problem of inequality, steps should be aken to promote equality of treatment and the full Integration of woman in the total the urgency and signifl India. But still every where even in the most advanced countries of the world, they taken to promote equality of treatment and the full integration of woman in the total rights than in India. But still every where even in the most advanced countries of the world, they suffer from a number of disabilities and are regarded a social inferiors of the urg ency and signifi

The Healthcare Reform Occupational Therapy - 998 Words

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