Answer To: 1. The Individual Report is worth 40%of your final grade. Report (Individual) Due: Week 12...
Soumi answered on Apr 27 2021
ETHICAL CONSIDERATION AND CHANGE MANAGEMENT
Executive Summary
The current report discusses the aspect of ethical consideration in an organisational context and also the subsequent change management for market alignment with a special reference to Coca Cola European Partners (CCEP). The report starts with an overview of the topic and the introduction, which is followed by the details of the chosen organisation and its early history of change management. The report then provides details of organisational module of 12 weeks and gives comprehensive details, necessary to build idea about the implication of ethical, structure and strategic aspects of CCEP. After the week based discussion, the issues faced by the company, the solutions, the suggestions made, the implication of the suggested change on managers and the financial statement of the company is provided, based on which a comprehensive conclusion is formed.
Table of Contents
Introduction 4
Discussion 4
Short Summary of Coca Cola European Partners (CCEP) 4
History of CCEP’s Current Business Model and its History of Change 4
Answers from Organisational Design Module (12 Weeks) 5
Identifying the Problem at CCEP and Probable Solution to the Problem 9
Identifying the Major Stakeholder of CCEP 10
Stakeholders Problems, Objectives and Concerns at CCEP 11
Positive and Negative Views of CCEP’s Current Position 12
Analyzing the Alternative Solution for Issue at CCEP 13
Recommended Business Model as Solution at CCEP 13
Managerial Implications at CCEP 14
Result of Ethics, Sustainability and Human Rights in Decision making Process per Week 14
Financial Implications at CCEP 15
Summary of Organisational Design and Learning 15
Conclusion 16
References 17
Introduction
The need to change the internal functionality of business organisations is necessary as the external market changes over time and the change management becomes inevitable. The primary aim of any change management is to earn profit in consistent or increased manner to sustain and thrive in the market, and the profit and growth centric aim, often deviated the actions towards ethical issues, which lead to employee and management issues. In the current report the impact of change management in context of Coca Cola European Partner has been discussed, for refining the functionality of the internals of the organisation and reduce the issue of ethical breaches in case the prevention of the issue is not possible.
Discussion
Short Summary of Coca Cola European Partners (CCEP)
The Coca Cola European Partners was established in 28th May 2016, as Coca Cola Enterprise, Coca Cola Ibrian Partners and Coca Cola Erfrischungsgetranke merged into one (Coca Cola European Partners, 2018). Prior to the merger in 2016, Coca Cola Company opened bottling plants in France, and within a few years expanded within other European countries such as Germany, Spain, Netherlands and Belgium within 1931. Over the years the company grew rapidly, acquiring bottling rights in all major European countries and became a major section of the global company Coca Cola, as it secured its rights of selling its bottles for selling Coca Cola in European territory and also got the right to sell in Norway and in Sweden. Currently, Coca Cola European Partners producing bottles, that is used for selling 8% of the total production of the company and is operating in eight European countries. Under Coca Cola European Partners, there are more than 250 bottling partners and 900 bottling facilities in total, which helps the company to meet the demands of one of the most popular non-alcoholic drink in the world (Coca Cola European Partners, 2018).
History of CCEP’s Current Business Model and its History of Change
Prior to the official formation of CCEP in 2016, the business model used by its merging companies were based on the aspect of bottling production and selling rights for Coca Cola in different parts of Europe. As mentioned by Gillespie et al. (2018), in cases of large scale production and a new operational frame, the focus is generally placed on organisational capacity of production increase, where as in case of developed business organisations the business models used for deriving value tends to place the sustainability of the social aspects and environment among its core priorities. Starting from the acquiring of bottling rights and later bottling facilities in the first as well as second half of 1900s and the securing of bottling rights for higher production and more profit earning was the main motto and the business model was based on profiting and growth potential retention (Coca Cola European Partners, 2018). It is worth the notice in the initial stage CCEP had only been a manufacturer for Coca Cola.
However, based on the current changes in the market trends, CCEP has changed its business model, as it no longer has the need to expand its business at rapid pace; instead, it has focused on retaining its customers and Corporate Social Responsibilities. As a part of the latest business model of CCEP, the focus on environmental and social quality retention, the quality of the product and its impact on resources has been optimised to cater value and retain healthy investment for investors as well as market growth. CCEP with its tendencies of maintaining a high standard of packaging of the drinks, the sponsoring of sports events for taking part in social programs to generate goodwill, which has given the company a lot of stability in the market and the good reputation and social participation, has given CCEP its values (CCEP, 2018). It is noticeable that CCEP has transitioned from its manufacturer phase to a more of scientific business model in recent times.
Answers from Organisational Design Module (12 Weeks)
Week 1
Coca Cola European Partners or CCEP is the chosen organisation, which was officially formed in 2016 and prior to its merger it has grown through consistent acquisition of bottling facilities in Europe. The organisation manufactures and recycles Coca Cola bottles and it creates value by focusing on quality retention and environmental preservation. The company aims to reduce carbon footprint problem, littering issues and tends to provide superior quality assurance to customers as a part of its organisational mission. The environmental aspect of CCEP is aimed for attracting customers and can opt for use of solar energy for production and anti-littering campaign as well as awareness programs on littering issues. The company however, use its profit percentage and sells figures as its parameters for setting standards and goals.
Week 2
CCEP has a group of investors, shareholders, internal staffs and the customers, posing as their major stakeholders, where the upper level of internal stakeholders aim at organisational growth and profiting, whereas the lower level internal staffs strive for job security and ease of work, which given the tendency of organisational change creates issues. In addition, the customers, who prefer sustainable business from CCEP, also contradict to their core focus on profiting only and negligence of environmental aspects. CCEP has a very formal and corporate leadership, where the CEO, Damian Gammell is within the board of directors of the company, where Sol Daurella is the chairperson and Nik Jhangiani is the CFO (Coca Cola European Partners, 2018). CCEP has divisional managers and the managers control the production quality and capacity, which creates competitive advantage, also owing to Coca Cola for its popularity. The organisation does have a set code of conduct, which however, is not properly optimised, making the managers often act unethically and hints at organisational refinement.
Week 3
CCEP produces bottles made out of plastic and glass as well as tin cans for Coca Cola drinks and is the major product line and as for service, the company also dedicated to recycling bottles for reuse as a part of its environmental safeguarding endeavours (Coca Cola European Partners, 2018). Considering the public awareness about environmental degradation, CCEP has to deal with the product based littering and carbon emission issues. CCEP is formed of three different companies, which had diverse workplace cultures, leading to a complex business model formation. The company has focused on growth of production and the recent need of environment friendly actions along with profitability leads to an uncertain future. The reason of the merger between the three companies had been based on the resource dependence theory, as it was envisioned that higher capacity and collective use of resources would drive production cost down and higher profit earning and CCEP is doing fine as the sales have increased and profit margins soared.
Week 4
CCEP, in terms of its divisions can be placed in moderate category, as the job distinctions include designing, production, and recycling, packaging and labelling departments. The organisation has retained its bottle designs unique, carrying the heritage of the historical brand Coca Cola and has also been very keen on higher production and less profit earning from per unit, acting as its core competences, which rivals in market would find very difficult to imitate. Although merged the scientific business model adaptation makes the different production facilities post-merger work in synchronised manner, Based on the way CCEP functions it is evident that the focus is more on mechanistic approach than organic. Although CCEP performs will, it can also use agent-based business model to reduce its workload and perform better, reduce its internal cost and attain higher capacity and profitability.
Week 5
CCEP has more than 500 production facilities therefore, hiring a huge number of staffs is common and expected. The company, at the time of its merger had an employee strength of 25000, which after the reconstruction has reached 23,500 employees. The organisation harbours a tall organisational structure and has several divisions of work progress, at the top of which stay the shareholders and the board of directors, followed by the executives, managers and then staffs engaged in manual labours. The tall organisational structure does not create problem and rather helps in managing huge taskforce. The CEO has a wider span of control over the organisation, which is not excessive. The de-centralised structure of the company facilities are brought under control by the CEO, who is aided by the CFO and the managers engaged in the management of the staffs, which is seemed to benefitting the organisation, enabling it to perform better.
Week 6
CCEP has a multidivisional structure, where the upper management and board of directors control the functioning of three major sections, namely the three distinct sections of the pre-merger companies. Each section is regulated by upper level managers and all three organisational manager report directly to the CEO and CFO. The managers have lower level managers, for production, packaging and research and development as well as financial aspect management departments. The lower level managers directly operate over the staffs, while the management of the suppliers and marketing aspects are managed by the management. The company uses a multitude of production facilities distributed across Europe through a centralised management system; therefore, it has adhered to the structure, the advantage of which is the synchronisation between the production facility and the disadvantage of having complex managerial layout. CCEP, despite developing an effective organisational structure is facing the issue of managing its excess managerial staffs, resulting from its inception through a three-sided merger...