what are the characteristics of the Henri Fayol theory? 

what is behavioural approaches to Management 3) 

How have the share prices performed since 2005 for Coca-cola ? pany; in 2005 they accounted for 80 percent of sales. Coca-Cola's

T 1 i What are the characteristics of the Henri Fayol theory? what is behavioural approaches to Management W-8 FOR CRITICAL 3 How have the share prices performed since 2005 for Coca-Cola ? pany; in 2005 they accounted for 80 percent of sales.8 Coca-Cola's acknowledgment of changing consumer tastes, however, has fostered a continued expansion of its line of noncarbonated bev- erages. Growth in sales of non- carbonated beverages varied across their portfolio in 2005. The largest increase was seen in energy drinks, with growth of 200 percent making Coke num- ber three in the United States energy drinks market in less than a year. This growth has been fuelled both internally and through acquisitions and licens- ing agreements.9 Coca-Cola is hoping to achieve profitability through economies of scale and by capitalizing on its existing distribution system. The Coca-Cola Company has positioned itself for growth by moving key decision making closer to local markets and by fostering deeper connections to consumers. It has also restruc- tured, with a management team coordinating a new, nimble, and entrepreneurial network. As one of his first acts during his time as CEO, Daft axed 6,000 employ- ees, many of them middle and senior at its head- managers quarters in Atlanta. There is now, under Isdell's leadership, a 15-person executive manage- ment team in place, including six executive vice-presidents who are chief operating officers for the Eurasian, African, North American, Pacific, European Union, and the Latin American groups. Twenty-uve division and operations presidents report to the chief operating officers in each of the international re- gions.10 This group of individuals, along with Coca-Cola employees and partners worldwide, are re- sponsible for implementing what Isdell calls the "Manifesto for Growth" that was developed in 2004.11 The manifesto in- cludes statements concerning the mission, vision, values, capa- bilities, incentives, goals, met- rics, and growth paths of the company. Sustainable growth for Coca-Cola is defined in terms of the five P's: Profit-maximum return for the shareholder; Peo- ple be a great place to work; Partners nurture mutual loy- alty; Portfolio-brands that an- ticipate and satisfy people's needs; and Planet-responsible global citizens who make a dif- ference. The manifesto also pro- vides a 10-year objective for each. According to Isdell, all five elements must be equal, obvi- ous, and interconnected with each component of Coke's busi- ness model. Products are what Coke wants in the marketplace, and they also make possible what the company aspires to be- come over the long term. The portfolio of brands that are made available to consumers through Coke's partners will allow the company to generate the profits it needs to reach its goals for people and the planet. As part of the Manifesto for Growth, Isdell and his team have identified strategic growth paths: acceler- ate the growth rate of core brands, especially Coke's histori- cal product, carbonated bever- ages; expand the portfolio of products; develop products, such as tea and soy beverages, in the health awareness area; nur- ture production system health in all the markets; create customer value; and develop adjacent businesses, such as iCoke and ingredient licensing.12 Will the restructuring and the new strategic initiatives identified by Neville Isdell help (researc Coca-Cola achieve its mission of "benefiting and refreshing everyone it touches," as well as regain the growth and value ex- perienced under Roberto Goizueta? REVIEW QUESTIONS 1. Apply Henri Fayol's five rules of management to the Coca-Cola case. 2. Consider the following quote from Coca-Cola's statement on diversity: "The Coca-Cola Company com- mits to excel among Fortune 500 companies in promot- ing and fostering equal op- portunity in compensation, promotion, and career ad- vancement for all employ- ees in all levels and areas of the business, regardless of race, color, gender, religion, age, national origin, or dis- ability, and to promote and foster an environment of in- clusion, respect, and free- dom from retaliation."13 Relate this quote to the case and to the behavioural ap- proaches to management. 3. How does Coca-Cola score on the eight attributes of performance excellence? 4. Do you think Neville Isdell will be successful in regain- ing the growth and value experienced under Roberto Goizueta? YOU DO THE RESEARCH 1. While stock prices have declined since 1998, what has happened to revenues and income over the same period?