Coca has not only managed to create a strong organizational culture, but has successfully imprinted its mark on the minds of its consumers all over the world. It is not only a part of the culture, but has created culture, from the vision of Santa Clause, to a time-less vision of mid-century American life.

1. Coca Cola’s
Organizational Culture
By Virginia Varela

2. What is Organizational Culture?
• “Organization culture” is a common
perception held by the organization’s
members that distinguishes the organization
from other organizations, i.e. “personality.”
• Because organization culture represents common
perceptions shared by the organization’s
members, though individuals may have different
backgrounds or levels in an organization, they will
tend to describe in similar terms the organization’s
dominant culture shared by the majority of the
organization’s members.

3. Coca Cola’s Organizational Culture
Beginnings
• In 1886 - Atlanta, GA, pharmacist John
Pemberton, searching for a quick cure
for headaches creates a caramel-
colored liquid formula mixes it with
carbonated water at Jacob’s
Pharmacy, and invents Coca Cola.
• Between 1888-1891, Pemberton sold
the Coca Cola Company to Atlanta
businessman Asa Griggs Candler, a
natural born salesman, who
transformed Coca-Cola from an
invention into a business by distributing
clock, urns, calendars, and apothecary
scales bearing the Coca Cola brand to
his distributors.
INTERESTING FACT #1:
Until 1905, the soft drink,
marketed as a tonic,
contained extracts of cocaine
as well as the caffeine-rich
kola nut, hence the name
Coca Cola.
INTERESTING FACT #2:
John Pemberton was a
morphine addict and
advertised Coca Cola
"temperance drink."

4. Coca Cola’s Organizational Culture
Beginnings
• 1899 two Chattanooga lawyers,
Benjamin F. Thomas and Joseph
B. Whitehead, began bottling Coca
Cola, and made the drink portable.
• 1916 - the invention of distinctive
contoured bottle was created to
assure its consumers they were
getting the genuine article from
copy-cat beverages.

5. Coca Cola’s Organizational Culture
Beginnings
• In 1923, Ernest Woodruff purchased the
company from Asa Candler. His son Robert
Woodruff, was a marketing genius who
captivated foreign markets with innovative
campaigns: Coca-Cola traveled with the U.S.
team to the 1928 Amsterdam Olympics, the logo
was emblazoned on racing dog sleds in Canada
and the walls of bullfighting arenas in Spain.
• Woodruff pushed development and distribution of
– the six-pack
– the open top cooler
– and all innovations that made it easier for
people to drink Coca-Cola.
– When it became clear to the company that
housewives would be more inclined to buy
six-packs they could open easily at home,
women were sent door to door, installing
branded Coca-Cola openers.

6. Coca Cola’s Organizational Culture
Beginnings
2 key points of the founders’ philosophy
Innovative Spirit:
– Pemberton’s idea for a quick fix to the common headache
– Robert Woodruff Use of the Olympics as global marketing forum, across
the world.
Marketing Prowess
– Asa Candler aggressive promotion of Coca Cola with commonly used objects
used in businesses as marketing materials containing the Coca Cola logo
– Invention of immensely recognizable contoured bottle shape
– The six-pack
– The open top cooler

7. How is Culture Created?
Culture creation occurs 3 ways:
1 - Founders hire and keep only employees who think and feel
the same way they do.
2 - They indoctrinate and socialize theses employees to their
way of thinking and feeling.
3 - The founder acts as a role model that encourages
employees to identify with him and thereby internalize his
beliefs, values, and assumptions.

8. Organizational Culture &
Dependent Variables
A strong organizational culture is:
• a “control mechanism that guides and shapes the attitudes and
behavior of employees”
• it enhances organization commitment
• increases consistency of employee behavior
• and advantageously promotes low turnover
Understanding the importance of the organizational
cultural is a means for an organization and its
managers to control the dependent variables of:
• Productivity
• Absenteeism
• Turnover
• Job satisfaction.

9. Coca Cola’s Functions &
Dysfunctions
Benefits of understanding organization cultures
• Eliminating the dysfunctions when the core values are not in
agreement with those that will further an organization’s effectiveness.
• When cultural compatibility inhibits mergers and acquisitions.
• Paradox when the existing core values become barriers to diversity
and when diversity inhibits core values.
Diversity Advantages
• Competitive Advantage - cost, resource acquisition, marketing,
creativity, problem solving, and systems flexibility arguments
Diversity Disadvantages
• Conflict in an organization: stereotyping, prejudice, racism, sexism, etc.
• Must be maintained by both individuals and the organization itself:
understanding, empathy, tolerance, and willingness to communicate.
• Organizational approaches: policies, practices, diversity training, and
culture.

10. Coca Cola’s Sustaining of
Organizational Culture
Coca Cola Employs Strategic Workplace Programs
• Diversity programs: Cultural Sensations Program (Learn about different
cultures and regions of the world in which they do business with art, music,
dance, food and special events.)
• The Diversity Advisory Council (Representatives from all levels, functions
and business units of the organization, develop recommendations for senior
management on advancing the company's efforts towards achieving diversity
objectives.)
• Employee Forums in the United States (Connect employees who share
similar interests and backgrounds)
– The Coca-Cola Company Administrative Professionals
– African-American Employee Forum
– Asian Pacific American Employee Forum
– Latin Employee Forum
– Gay & Lesbian Employee Forum
– Women's Forum
INTERESTING FACT #3:
The diversity of an
international cast
was displayed by
Coca’s Cola’s
1971 commercial,
who’s song
“I’d Like to Buy the World a Coke”
became a Top 10 hit.

11. Coca Cola’s Sustaining of
Organizational Culture
Employment Practices
• The selection criteria - Identify and hire individuals who have
knowledge, skills, and abilities to perform the jobs successfully, but the
decision as to who is hired is significantly influenced by the decision-
makers’ judgment of how the candidates will fit into the organization.
• The result is hiring people who have values is socially consistent with
those of the organization.
• In addition, the selection process provides information to applicants
about the organization. Candidates learn about the organization and
can choose for themselves whether or not they will fit into the
organization. Selection therefore becomes a two-way street.

12. Coca Cola’s Sustaining of
Organizational Culture
Strong emphasis on the well being of its employees, including respect and
openness to diversity, as seen in Coca Cola’s employee benefits
package.
Immediately from the date of hire employees, spouses, and dependents,
including same-sex domestic partners, are eligible for:
• Medical, dental, vision, life and disability insurance programs, 401(k),
Tuition Aid Program, Flextime, Summer Hours, Adoption Assistance
Program, Employee Assistance Program (confidential counseling
services) Active Living Program (reimbursement for employees to join
a health club), and Matching Gifts Program (employees donate monies
to education, arts or cultural institutions, which The Coca-Cola
Company matches in part per calendar year.)

13. Coca Cola’s Sustaining of
Organizational Culture
Top management behavior (Senior executives’ behavior filter down to the
organization)
Socialization ( The process that adapts employees to the organization’s culture,
helps sustain a strong organizational culture.)
Philosophy, company jargon, orientation, and socialization.
• 3 stages:
1. Pre-arrival (All the learning that occurs before a new member joins the
organization)
2. Encounter (When the new employee sees what the organization is really like
and confronts the possibility that expectations and reality may diverge)
3. Metamorphosis (When the new employee masters the skills required for his
or her job, successfully performs new roles, and makes adjustments to
workgroup values and norms.
Rituals (Repetitive sequences of activities that express and reinforce the key
values of the organization such as chants, songs, etc.),
Material Symbols (The company headquarters, company car, corporate jet, sizes
of offices, elegance of furnishings, executive perks, etc.)
Terminology, acronyms (Descriptions of equipment, key personnel, suppliers,
customers, or products that relate to the business)
INTERESTING FACT #4:
John Pemberton's Bookkeeper,
Frank Robinson, had excellent
penmanship, and it was he who first
scripted "Coca Cola" into the
flowing letters which has become
the famous logo of today.

14. Coca Cola’s Sustaining of
Organizational Culture
Stories are meant to convey what an organization is about, i.e. spirit
of innovation, commitment, mistakes, etc.
Coca-Cola’s advertising helping create the modern image of Santa
Claus with the commission of famous painter Haddon Sundblom.
Norman Rockwell created a time-less vision of mid-century American
life.

15. Coca Cola’s Sustaining of
Organizational Culture
The Story of New Coke
• April 23, 1985, “Marketing Blunder of the Century,"
when The Coca-Cola Company changed the formula.
• Why? The reality is that Coca Cola had a continual 15-
year decline in share lead over its chief competitor,
Pepsi. The fabled secret formula for Coca-Cola was
changed for a formula preferred in taste tests of nearly
200,000 consumers.
• Consequences? Consumers panicked; protest groups
popped up around the country; Songs were written to
honor the old taste.
• Message Sent: Chairman & CEO Roberto Goizueta
"…the most significant result of 'new Coke' -- by far,
was that it sent an incredibly powerful signal ... a signal
that we really were ready to do whatever was
necessary to build value for the owners of our
business."
•Moral: What these tastes
tests didn't show, of
course, was the bond
consumers felt with their
Coca-Cola - something
they didn't want anyone,
including The Coca-Cola
Company, tampering with.
The original formula, now
called Coca-Cola
classic®, returned a few
months later.
INTERESTING FACT #5:
In 1985 Coca Cola was
the first soft drink ever
in outer-space.

16. Conclusion
Coca Cola’s core values:
• Innovation
• Entrepreneurship
• Respect for diversity
• Coca has not only managed to create a strong
organizational culture, but has successfully imprinted its
mark on the minds of its consumers all over the world. It is
not only a part of the culture, but has created culture, from
the vision of Santa Clause, to a time-less vision of mid-
century American life.