DECISION MAKING: A case study of Coca Cola

ABSTRACT:
The paper contains an analysis of organizational behavior discussing an issue facing
organizations relating to risks and uncertainties in the company’s decision making.
Recommendations are laid based on the study to address the company’s issue and align
decision making with the company’s structure.

INTRODUCTION:
Decision making is a significant factor in every good and successful organization. A good
decision can be made by relevant information and good interpretation of the information.
Consulting an expertise could also be good advantage so also ability to admit wrong. There
are three approaches to decision making that are;

 Version-led approach (decision depends on the person with the vision)

 Plan-led approach (decision depends on the planner’s point of view)
 Consensus-led approach (based on agreement between the parties)
Most organizations adopt to work on mix approach in the sense that vision, problems and
objectives decisions are based on consultation while experience approach is being used in
developing and reviewing strategies. Hence, the best approach is relatively based on the
situational circumstances.

BACKGROUND:
Coca-Cola has been founded since 1886 in Atlanta, United State. The Coca-Cola company is the
world largest multinational beverage company at the same time the world number one producers
and marketers of soft beverages drinks and the company with the most valuable and recognized
brand globally. This success of the company rotates around five key factors, which includes
recognized brand, quality, marketing, availability and innovation.

A company has a flexible structure that not only focused on product, marketing, distribution
of finance but also profoundly encourages team work in each of their innovations.

FINDINGS:
The Coca-Cola company has an organized structure that foster employee involvement in all
aspect except for decision making. The company’s decision making practice does not match
with any of the company’s practices. The management of an organization are often
challenged with situations of uncertainty and risk. Decision making being a process to
reduce or eliminate the tendency of risks and uncertainties occurring, the decision
managers are the driving force in eliminating the extent to which an organization faces risks
and uncertainty.
Risks and uncertainties both play a significant role in decision-making but its important to
note out the difference, in decision-making uncertainty quite simple effect by slowing
decision. In Coca-Cola company usually when managers are confronted with such uncertain
circumstances, they hold their decisions and put some measures to reduce the uncertainty
level before making a final decision, which clearly delayed the decision-making. Risk on the
other hand, is another form of uncertainty that involve loosing at different level depending
on the result yield by the decision.

RECOMMENDATIONS:
Management approach to decision-making with risks and uncertainty should involve some
parameter to identify and measure the level of risks involves, this will allow the organization
to know the exact business risk involve in the decision-making. Business risks includes
operational risk, legal risks, financial risks and strategic risks. After the management have
identify the type of risks involve, its expected of the organization to quantify the level of the
risk. In this stage organization should make certain of the cost to be encounter if the risk
prevail.
The company can also improve its decision-making practices firstly by frequent switch of
directors to handle relevant tasks, this will enable them to think outside the box in given
suggestions to the board on decisions. Secondly, the company should operate decision open
door policy in which any employee can go to their manager and suggest ideas for solving
different problems. This will allow the management to become aware of small problems
before they become the large ones. By changing the decision making process, they will also
become more accustomed to their recently adopted mission, vision and values. They will
inspire optimism in all stakeholders by making decisions in a timelier manner. By including
more, lower level employees in their decision making process, they will promote leadership
and inspiring collaboration and innovation.

REFERENCE:
https://www.academia.edu/8516165/Organisational_Behaviour_A_case_study_of_Coca-
Cola_Company
NAME: AREESHA MUSTAFA
CLASS: THIRD YEAR (TEXTILE SCIENCES)
SEAT NO: TS-16042
BATCH: 2016-17
COURSE: ORGANIZATIONAL BEHAVIOUR
COURSE CODE: HS-405