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MBA501 Managing Organizations


Introduction: Management challenges refer to the issues that a business organization has to face while running the commercial activity. These challenges include all the problems related to the employees as well as the stoke holders of the company, technical failure, shortage of resources and many more. These issues may bring negative repercussion on the growth of an organization. That is the reason every company needs to handle these challenge with a great care. In this project the individual has discussed the key management challenges those are faced by the company Coca Cola. In addition the individual has also illustrate the issues relevant to planning, relevant to organizing , relevant to leading and controlling. Further the person has provided some recommendations in order to fight the challenges of Coca Cola.

Question 1: Identify a key management challenge faced by an organization of your choice.

Answer: Background of the Company: The company ‘Coca Cola', the largest manufacturer, distributer as well as the merchandiser of the non- alcoholic beverage, was founded in the year 1886 by John S. Pemberton (Lee, 2019). The company has been able to hold its position in the domain of the international business since last 130 years. Presently the organization is running more than 500 various sparkling as well as still brands (Cox et al., 2017). It also offers around thirty nine hundred beverage choices including the key product, which is Coca Cola. Since the year 1889 the company has joined hand with other franchises in order to sell its products more than two hundred countries. A study reveals that the company sales nearly 2 billion servings throughout the world every day.

Key management Challenges: As per an official reports the volume of soft drinks that is consumed in the south east Asia and Sri Lanka is around twelve million liters in the year 2013. It is true that Coca Cola has been able to gain one of the top most positions in the world's market of the beverage. However, the country Sri Lanka has created an exception. The world - leading brand Coca Cola has been laid behind a local brand in this country. Coca Cola Company has tried a lot of business strategies in order to allure the consumer s of the country however; the company has not been able to gain significant success in the local market. Hence, the Elephant House which is popularly known as "Aliya Beema" is in the top most position inside Sri Lanka. It is quite significant that the brand value of Coca Cola is being eroded in the state. A research shows that in the year 2014 the shares of Coca Cola company was valued around 33.7 billion dollar, whereas after four years that is at the end of 2018 the share value decreased to 31.8 billion dollar. That means the company has to face a loss of 1.9 billion dollar or 5.4 % of the total brand value (Mohamed & Omwenga, 2015).

The main reason of such loss is the decline of user ship as well as the in sufficient management strategy. In spite of the immense growth in the world wide soft drink industry the company has lost sales in respect to the heather beverages such as Juices, flavored water as well as various health drinks. The reason of such situation is that the consumers of the modern society prefer to have the healthier drink rather than Carbonated Soft drink such as Coca Cola. In addition the emergence of the RTD (ready to drink) tea or RTD coffee as well as water mixers the choice of the consumers has been shifted to these products that have arrived recently.


Question 2: Discuss the key dimensions of Planning, Organizing, Leading and Controlling (where relevant) in relation to the above challenge.

Answer: The problem with Coca Cola Company is that the management did not pay enough attention to the changing circumstance. As a result, the organization has to face a lot of issues related to the field of planning, organizing, leading as well as controlling of the company (Wilson, 2017).

Issues relevant to Planning: The reason of the decline in sale of Coca Cola product in the island country is hidden in the strategy of the planning of the company. There is no doubt that the company has to face such a loss because of the insufficient planning. As a result of in efficient planning the managers of the Coca Cola Company failed to indentify the potential barriers in the way of the company's growth. These barriers include the aspects that have been discussed below (Greenhalgh, 2019). 

Inadequate planning: It is true that all managers of the Coca Cola Company are not inborn planner. Specially, in the island country most of the managers do not belong to the commercial background. Even they lack the education as well as the ability that are required to handle the challenges of the organization (Greenhalgh, 2019).

Inferior information: The data which are of inferior quality or out of date can be mentioned as the barriers or obstacles to planning. The most efficient plan also cannot bring the expected outcome if it is based on irrelevant information or data. Even in that case the plane can simply fail. This is one of the reasons of the down fall of Coca Cola Company (Carroll, 2016).

Lack of attention to execute the planning process: Lack of commitment or the proper execution of a plan was another reason of the down fall of the company. The managers of Coca Cola did not paid adequate devotion in the execution of the plan in order to continue the growth of the organization.

Focusing on the present at the expense of the future: The management of the company did not focus on the future obstacles. Rather, they paid extra attention in dealing with the short term problem. As a result they did not realize that the emergence of the latest health drinks can snatch the market from Coca Cola.

Concentrating on controllable variables: Most of the managers of Coca Cola have concentrated on the issues that they controlled.

However, they failed to handle the outside aspect like poor economy. Obviously this affected the company's advancement.

Over reliance on the planning department

Coca Cola is an international company; therefore, it has a separate department of planning as well as development. Undoubtedly, the department devote ample amount of time in planning for the improvement of the firm. However, very few plans have been executed still now which has brought the adverse effect on the company's growth.

Issues relevant to organizing

Managers of Coca Cola have various duties as well as responsibilities that they need to carry out in order to ensure that the company is running well. Among such responsibilities planning is one of the important procedures. There is no doubt that planning of the business strategies is an ongoing process that developed the mission of the company. In other word planning help a business enterprise to achieve its target or to accomplish the company's objectives. The managers of Coca Cola failed to organize the strategies in order to fight the above challenges (Gaither& Austin, 2016).

• Motivation

Motivation is the key factor that controls the progress of every business enterprises. The management of Coca Cola Company failed to motivate their staffs (Gaither& Austin, 2016). That is the reason the company has to face the grievance of the employees and when they fail to satisfy the needs of the labours, they left the company in the toughest situation that was raise because of the extreme competition. As an irreversible effect the production of the Coca Cola Company declined.

• Communication

The management failed to communicate with the staffs properly. As a result they failed to understand their requirement as well as the grievance. In the same way the management was not able to convey the target of the company to the workers' mind.

• Discipline

Discipline is one of the key factors for the improvement of an organization. It was noticed that the indiscipline inside the company premises let the company to the down ward trend.

• Group Dynamics

The employees in the Coca Cola Company hardly get the chance of proper interaction with each other. The corporate environment has wiped out the possibilities of the group dynamics. Thus the organization has lost the chance of coming across the innovative and latest ideas that could have been fruitful in order to fight the latest challenges.

• Internal organizational structure

The internal organizational structure refers to the coordination of the asset or the resources, adequate flow of data as well as latest technology. The managers of the company need to control the task as well as they needs to ensure that the employees are getting proper opportunity to add their significance. The management of the Coca Cola Company failed to improve the internal structure and therefore the company has to face the severe loss.

Issues relevant to leading

The next management function that has a great significance in the growth of a business organization is the leadership. The leaders of a company are responsible for the employees' motivation, effective communication with the staffs as well as the introduction of the corporate culture inside the company premises. There is no doubt that Coca Cola Company pays enough attention in order to motivate the workers. The organization considers its staffs as human capital. However, the situation is quite different in the South East Asia as well as Srilanka. The reason behind it is the over population of these countries. The leaders as well as the managers did not pay enough attention to motivate their employees here. As a result, the employees cannot find any emotional attachment with the organization and therefore, they do not pay the devotion and hard work to bring the success of the Coca Cola Company (Jones & Comfort, 2018).

Secondly the leaders have been failed to communicate with the staffs in these countries. As a result they could not identify the problems as well as the requirements of the workers of the Coca Cola Company. Therefore, company's management failed to satisfy the demand of the labours or minimize their grievance. The in efficiency of the leader to handle the employees led the organization to the way of down fall. In addition the inappropriate corporate culture has also play a significant role to down fall of the Coca Cola Company. The top management of the organization generally tries to maintain the corporate culture inside the company. In the case the superior officer acts as the role models and the subordinate staffs follow the path of their superiors. However, the indiscipline of the higher officer has diverted the labour force. As an inevitable effect the Coca Cola Company is losing the battle ground in the commercial sector.
Issues relevant to controlling

The last but the most significant activity of the management team of an organization is ‘controlling'. In this case the management authority of an business enterprise accomplish the evaluation of their performance. The company also assess whether they have achieve their goal or not. In order to carry out the function the company takes a couple of strategies (Khojastehpour, Ferdous & Polonsky, 2015).

• The reporting system of a sales person

• The evaluation system of the sales person

There is no doubt that the Coca Cola Company applies both of these strategies in order to ensure its success. However, there are some loop holes in accomplishment of the tasks. The sales persons of Coca Cola company need to submit the report of the per day sales to their market developer. In this case they can get the help from their supervisors or market developers. The attendance of the sales person is maintained with punch cards that resister the arrival and departure time of the sales person. However, the corruption as well as the wrong information provided by the sales persons has affected the company's progress.


Question 3: Give clear description of the existing state and suggestions for improvement using flow charts, tables and figures wherever appropriate (Use IRTOO tabular form with Issue, Recommendation, Timeline, Output and Outcome)

Answer: On the other hand the evaluation of the sales person is carry on once in every four menthes. Based on such evaluation the employees get the promotion as well as the monitory reward. It is also the procedure of the employee's motivation. However, it is already discussed that due to the inefficient management the leaders have been failed to motivate the staffs which is the reason of the down fall of the Coca Cola Company(Austin & Gaither, 2016).


IRTOO tabular form



Time line

Out put


Inadequate planning

The managers need to make efficient planning to identify the potential barriers


The barriers will be addressed

Management can take step to fight the barriers

Inferior information

Double check the data

Every week

Authentic data will be acquired

Plans can bring the expected outcome

Lack of attention to execute the planning process

More dedication are required to execute the plans



Company can experience the growth

Focusing on the present at the expense of the future

The managers need to focus on the future obstacles

Twice a year

The management will be prepared for future obstacle

The company can fight with barriers that can emerge in the upcoming days

Concentrating on controllable variables

The managers and other staffs needs to be trained properly


The staffs' efficiency will be increased

The managers will be able to handle different issue

Over reliance on the planning department

The management need not be over depended on planning department  


Dependency on planning department will be reduced

Every department will be independent

Issues relevant to organizing

  • Motivation
  • Communication
  • Discipline
  • Group Dynamics


The management needs to arrange a meeting with the staffs on a regular interval to motivate and interact with them


The staffs can get the chance to interact with each other and thus communication, group discussion will be enhanced

The staff will be motivated and reenergized to achieve the target

Issues related to internal organizational structure

Coco Cola Company need to improve the infrastructure and introduce the latest technology and trained the staffs to increased production

Twice a year

The company' infrastructure will be updated

Production will be increased

The recommendation that is required in the management are the true vulnerability of the analytical generalization of the reflection in the diversity. The capture of the organizational diversity needs specialist trust, acute trust, and the care trust. In terms of the wide variety of commitment in the organization, the assumption of the trust did undergo the substantial changes during the course of the research. However, the contextual influences are not the mere effect of the detailed company structure of the Coca Cola Company. The main purpose leadership role is the managerial diversity, which are of the equal importance. The first aim of the research is to manage the team and producing the employable in privileging of the management, the result had the more complicated and the contested in socialization in the externalization in the gaps of the mobilization. he ethnographic study of the managers in their access of the source of knowledge in which the element of research in the application of the research in the extended the explore of the management knowledge and the process of learning in changing primary and the secondary care of the domain. The value management of the leadership in the research analysis has a widespread of the Coca Cola Company. The programs also need to balance of an emphasis on the leadership with the present in the management practice on the ground. The management play a role is the total distinct of an effective management skill.


Conclusion: From the analysis of the research paper, the employee communication is an effective with the employees. The expectation of the setting of the clear goal and encourages the productivity for the hiring of the team. The overcoming challenges help the organization to learn, develop, and grow. The perseverance is a big part being a leader and the leadership management is the primary strategies all about. The effective communication with the employees and the shifting from the coworker to the boss and setting the clear goals and the expectation of the employees, which encourages the productivity and that, becomes the root cause of firing an employee. The building of the effective communication with the employees will provide us with the foundation that is strong in the communication quality on the impact of the teams to the levels of vulnerability and the trust. It is the important factor that needs to the communication dynamics.

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