Question and Answer
Question 1
Coca-cola in the prior years have used a centralized business structure but have recently moved on to a decentralized business structure. The company uses a duo structure which has both organic and mechanical characteristics. Thus the company uses a hybrid architecture to accommodate the changing needs of consumers. It has branches all over the world, and therefore a decentralized structure serves the company better. Since the world has diverse cultures, every department operates on its own and chooses the advertising method and operations measures that suit the lifestyle it serves. The decentralized culture has aided the company since it uses nostalgia advertising, which requires more knowledge of the people it serves.
Question 2
When Mackey says decentralization with empowerment is a waste of time, he means that an organization that needs to decentralize is already empowered. Thus it needs not empowerment programs since employees and the lower managers already know how the company operates and can even work on their own without further assistance. The root of empowerment is letting people run on their own. Mackey suggests that people are already empowered naturally, and there is no need to empower them. The Coca-Cola Company is aware of this notion and thus does not use empowerment programs but changes how the organization is designed and managed so that the staff can exercise the natural powers that arise from being human.
Question 3
Mackey means that accountability saves the time and efforts that a company uses to solve distracting actions and other fruitless behaviors. Thus when employees are made accountable for their actions, they become more active and learn how to respect and value their jobs. Therefore, accountability makes the team more effective by increasing their skills and confidence. It also fosters trust, which is a significant component of doing business. Employees can, therefore, conduct their daily activities with minimum supervision. The coca-cola company allows the staff from their international branches to work on their own as an individual company. Thus a department is responsible for its actions and behaviors individually. Thus every department has learned how to work on its own and increased the knowledge and skills of employees.
Question 4
Mackey indicates that innovation in business arises from observing customers and listening to their complaints. One can also ask the customers about their preferences and thus become effective in serving them. Customers are the primary purpose of a business. Without them, the company can no longer operate. Therefore there is a need to keep one step ahead of competitors by understanding what the customers need and why they need it. Another way of fostering innovation is by asking the staff. The staffs are close associates of the customer and thus have knowledge of what the customers’ needs and how they like it served. Coca-cola is aware of how their customers’ needs. In every state, they have different adverts and different product designs that suit the preference of the customer. Mostly they use nostalgia advertising that reminds the consumers of the sweet memories of their culture. This means of advertising has ensured that coca-cola stays ahead of its competitors.
Question 5
Indeed innovation without the culture of collaboration is of limited value. Mackey means that teamwork is the best in improving and changing the appearance of a product. Not everyone has the same taste, and thus products should be different to suit the preference of each consumer. To achieve this, the staff of a business should collaborate and share ideas of how a product should be designed and delivered. The efforts of teamwork are more productive compared to those of the individual. For instance, a company that works intentionally cannot depend on its knowledge to design a product. It must involve the staff that works in these branches because they are aware of the sentiments of the customers towards the product and company. Coca-cola allows collaboration in product design as well as in designing their adverts. Thus it has been able to keep ahead of all its competitors.