Organizational Structure. Coca-Cola - American multinational company

Organizational Structure
Student Name
Institutional Affiliation
Organizational Structure
Coca-Cola is an American multinational company that specializes in the manufacture of nonalcoholic beverage concentrates and syrups. Being a multinational company, Coca-Cola has, over the years, made changes to its organizational structure to enable it become more efficient. PepsiCo is another company in the soft drink industry. Both companies have remained competitors in the industry for a long time. This analysis will focus on the organizational structure of the Coca-Cola Company and compare it to that of PepsiCo.
In terms of vertical differentiation, the Coca-Cola Company is more decentralized (Banutu-Gomez, 2012). The international staff members operate separately and in isolation from the head office. However, the head office controls some aspects of the company including finance, marketing, and strategy. Additionally, its horizontal differentiation is divisional. The company has various divisions in the five continents. Each continental division has a president who controls it. Further, each continental division has vice presidents who are responsible for controlling the various subdivisions, which are often based on regions or countries.
The decentralization enables the management of the company to concentrate on long-term planning. High-level management focuses on issues that are necessary to drive the company forwards. This enables them to make strategic decisions that are critical for worldwide success of the company worldwide. Furthermore, the divisional structure allows the various divisions to respond to market demands in their regions (Baah & Bohaker, 2015). The Coca-Cola Company appreciates that different markets have different requirements. As a result, the head office needs to appreciate the diverse market the company operates. Hence, the top management allows the various divisions to respond to the multiple needs of the consumers. The combination of decentralization and divisional approach to management increases the effici...