- The Coca-Cola Company has a somewhat complex matrix organizational structure with geographic divisions, product divisions, business-type units, and functional groups.
- Coca-Cola has a total of six business segments, with four of these geographic divisions and the remainder business-type units for the company’s acquired brands and bottling operations. In 2021, the company introduced 9 new business units to eliminate the duplication of resources and introduce new products more quickly.
- Product-based divisions help Coca-Cola manage a portfolio of approximately 200 brands, while there are also various functional groups to support business operations in multiple departments.
| Department | Type of Structure | Structure Details | Advantages | Drawbacks |
|---|---|---|---|---|
| Global Business Units | Geographic Structure | – Coca-Cola is organized into global business units (GBUs) that oversee specific geographic regions, including North America, Latin America, Europe, Africa, Asia-Pacific, and Global Ventures. Each GBU has its own leadership and adapts strategies to regional market needs. | – Tailored approach to regional markets. Quick response to market demands. Local market insights. | Coordination challenges between GBUs. Potential duplication of efforts. |
| Functional Departments | Functional Structure | – Various functional departments like marketing, finance, supply chain, and HR. These departments provide specialized expertise in their respective areas and support global operations. | – Efficient use of functional expertise. Streamlined processes within departments. | Potential communication challenges. Decision-making delays. |
| Coca-Cola Bottlers | Network Structure | – Coca-Cola’s products are primarily distributed through independent bottling partners worldwide. The company’s core organization focuses on coordination, marketing, and brand management, while bottlers handle production and distribution. | – Cost-effective distribution model. Focus on core competencies like branding and marketing. | Potential challenges in aligning strategies with independent bottlers. Limited control over production and distribution. |
| Corporate Functions | Functional Structure | – Corporate functions like finance, legal, IT, and sustainability. These functions provide centralized support and services to the entire organization. Operate independently from GBUs and bottlers. | – Efficient resource allocation. Consistency in global operations. Standardized processes. | Potential disconnect from GBUs and bottlers. Limited specialization. |
| Strategic Business Units | Hybrid Structure | – Coca-Cola has various strategic business units (SBUs) responsible for specific product categories, such as sparkling beverages, juices, and dairy. SBUs combine product-focused teams with functional expertise. | – Specialized product focus and innovation. Expertise in specific product categories. | Potential conflicts between SBUs and functional departments. Complexity in balancing product and functional roles. |
| Ventures and Investments | Hybrid Structure | – Ventures and Investments division explores new opportunities, investments, and partnerships to drive innovation and growth. It combines innovation-focused teams with financial and strategic experts. | – Pursuit of new growth avenues and innovations. Synergy between innovation and financial expertise. | Complexity in aligning innovation with traditional operations. Potential risk associated with new ventures. |
Table of Contents
Origin story
The Coca-Cola Company was founded in 1892 by Asa Griggs Candler who purchased a beverage brand and recipe from pharmacist John Stith Pemberton. After three short years, Coca-Cola was available in every state in the union.
Today, the Coca-Cola brand is one of the most valuable in the world and is available in all but two of the world’s 195 countries. To manage its vast global operations, the company has a somewhat complex matrix organizational structure with geographic divisions, product divisions, business-type units, and functional groups.
Interested in learning more about how this gigantic company is structured? Let’s delve into the details below.
Geographic divisions
The Coca-Cola Company is structured according to four geographic divisions not unlike other companies with similar reach.
These divisions, which the company calls segments, are:
- Europe, Middle East & Africa (EMEA).
- Latin America.
- North America, and
- Asia Pacific.
Business-type units
The company also has two non-geographic divisions which it also calls segments:
- Global Ventures (GV) – this was a unit that was created after Coca-Cola acquired coffee chain Costa Ltd in 2019. Today, the Global Ventures unit houses any other brand, acquisition, or investment the company feels it can scale globally. This includes energy drinks, juices, smoothies, and tea.
- Bottling Investments Group (BIG) – incorporating all company-owned bottling operations. At present, these facilities are located in parts of Africa, Bangladesh, India, Malaysia, Nepal, Oman, Philippines, Singapore, Sri Lanka, and Vietnam.
Effective January 1, 2021, the company also introduced nine new business units to eliminate the duplication of resources and allow new products to be introduced more quickly.
Business units are also based on geography and include:
- North America.
- Latin America.
- Europe.
- Africa.
- Eurasia and Middle East.
- Japan and South Korea.
- Greater China.
- ASEAN and South Pacific.
- India and Southwest Asia.
Operational leaders of all geographic divisions and business-type units report to current President and COO Brian Smith.
Product-based divisions
Product-based categories help Coca-Cola manage its portfolio of around 200 brands. These categories include:
- Coca-Cola.
- Sparkling Flavors.
- Hydration, Sports, Coffee and Tea.
- Nutrition, Juice, Dairy, and Plant, and
- Emerging.
Each category is led by a President who works across a networked organization to build Coca-Cola’s brand. Each also reports directly to the Chief Marketing Officer.
Function-based groups
Coca-Cola has a number of specialized function-based groups where the organization itself is divided according to shared employee skill sets and experience.
Functional groups include:
- Marketing.
- General Counsel.
- Security.
- Investor Relations.
- Global Community Affairs.
- Global Finance Operations.
- Mergers & Acquisitions.
- Services Operations.
- Global Flavor Supply.
- Communications, Sustainability, and Strategic Partnerships.
- Technical and Innovation.
- Accounting.
- Corporate Development.
- Securities and Capital Markets.
Key Highlights:
- Matrix Organizational Structure: The Coca-Cola Company employs a matrix organizational structure that encompasses geographic divisions, product divisions, business-type units, and functional groups.
- Geographic Divisions: Coca-Cola is divided into four geographic segments: Europe, Middle East & Africa (EMEA), Latin America, North America, and Asia Pacific.
- Business-Type Units: Two non-geographic segments are Global Ventures (GV) for brand acquisitions and investments and Bottling Investments Group (BIG) for company-owned bottling operations.
- New Business Units: Introduced in 2021, nine new business units were established to eliminate resource duplication and expedite the introduction of new products. These units are also based on geography.
- Product-Based Divisions: Coca-Cola manages its extensive portfolio of around 200 brands through product-based categories such as Coca-Cola, Sparkling Flavors, Hydration, Sports, Coffee and Tea, Nutrition, Juice, Dairy, and Plant, and Emerging.
- Function-Based Groups: Various functional groups are organized based on shared employee skill sets and experience. These groups include Marketing, General Counsel, Security, Investor Relations, Global Community Affairs, and more.
- Operational Reporting: Operational leaders of geographic divisions, business-type units, and product-based categories report to the President and COO.
- Marketing Leadership: Each product-based category is led by a President who reports directly to the Chief Marketing Officer, facilitating a networked approach to building the Coca-Cola brand.
- Diverse Brand Portfolio: Coca-Cola’s complex structure helps manage the vast diversity of its product offerings, from traditional beverages to emerging trends.
- Global Presence: The matrix structure allows Coca-Cola to manage its operations across the globe, catering to various regional preferences and market demands.
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