Positive and Negative Reactions of Control Systems
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Positive and Negative Reactions
Companies invest in control systems in order to properly guide employees to organizational goals. “The lack of controls or the wrong kinds of controls–frequently cause irreparable damage to organizations” (University of Phoenix, 2007, Chap 16, p.5). Although, utilizing the control systems can be beneficial to a company, they can be detrimental as well if not implicated properly. Environmental management is a key part of Coca-Colas business planning and is fully integrated into their corporate governance structure. To ensure that they have management systems required for sound environmental stewardship. Coca-Cola has established an environmental management organization with direct accountabilities, standards and audits to maintain compliance and improve performance, and engagement programs with bottling partners, business partners and external stakeholders (The Coca-Cola Company, 2007). For example, Coca-Cola conducts audits of its environmental, health and safety (EHS) performance and practices, documents the findings and takes necessary improvement actions. In addition, The Company establishes mechanisms to communicate effectively with employees, consumers, governments, shareowners and other stakeholders on environmental performance, including environmental reporting.
Coca-Colas diversity of the management structure allows each group to tightly control all of the functional areas. With an operation of this size this system is of great value. If the corporate structure was that of a single head overseeing the entire operation it is conceivable that the head would lose touch with the arms. “The way we see it, we would much rather manage a business in nearly 200 countries than try to build a business in nearly 200 countries” (Ivestor). This statement was included as part of a letter to the share holders in Coca-Cola Co. In recent years, due to the changing global economies Coke has taken a less aggressive stand in the market place. Despite this stance, Coke stock and market share has continued to rise. A company should always remain dedicated to building a better business. This is the promise that a company makes to its stockholders every day. They promise to do the best that they can to increase the profits of their business. Coca-Cola really needs to reconsider the impact of this statement and re-evaluate its goals for the future.
Although Coca-Colas decentralized management structure can be strength, it can also be a weakness. The company currently does not set common