Managerial Issues of a Networked Organizations.

Abstract.

The main aim of the paper is to bring to attention the managerial issues encountered by

the Coca-Cola company. In this information age most enterprises are opting for a networked

environment. The paper stipulates the various network in existence, how to cope and maintain

the networks. With the aid of Coca-Cola company as example, the issues that any management

encounter the in the formulation and control of network. Strictly, the paper shows integration of

internal network to external network. Furthermore the paper instead of dealing with the external

networking forces alone, it also shows the influence of internal network to external network. The

logical flow of paper is from the conceptual embarking on the management order.

Introduction.

In the last decade, the principle assumption pertaining the management are being

scrutinized to mold them to accommodate today’s issues. As a result of the rapid growth of

information and communication technology, eminent and ever-evolving possibilities of

coordination and conformation of activities that are overwhelming to a single organization. Thus,

the firms are reorganizing their managerial and organizational structures. The managerial best

practices are no longer propelled by the potential to attain the foreseen scale and scope coverage

of the firm alone. However, the company is also affiliated to the interest of the suppliers,

consumers and other stakeholders whether major or minor. The company’s relationship portfolio

is regarded at all levels of transactions. The company’s flexibility to adapt to the variation and
the rate of response to collaboration with other organizations is the focal point of the firm’s

success.

Management settings in the networked organizations.

The management of a networked firm contrasts the traditional management methods

on the fundamental assumptions, for it purports for negotiation context without the ownership

control. Even though most resource and practices are strictly under the control of the

management. The distinction factor of networked management is that task execution cannot be

authorized through the managerial authority. The formulation of value using within controlled

activities and resources is highly influenced by the co-alignment of practices and resources

enacted by actors without the organizational realm. The relationship linking becomes the focal

point of the managerial influence. For the network cannot assume a hierarchical control, the main

task carried out by the management is creation of access, campaigning for, developing and

coordinating resources and practices based on other organizations. The fundamental aim of this

is enhancement of the firm’s positioning and exposing it to an array of opportunities. Designing

the architecture on which the collaboration will be based on, generating inducements for

partnership and importance of employees’ collaborative and skills needed for networking within

and beyond managerial boundaries become a vital drawbacks of the management. (Ojasalo

2004)

It is not yet clear, what the new forms of networked firm clearly means to the

management activities and what impacts it might impose to an institute to implement

management in linkages. However networks contributions are becoming clearer, therefore need
for a conceptual frameworks for describing the elements of management in the network.

Furthermore, the contributions pave way for integrative architecture for network management.

Basic elements of a networked management.

The Coca-Cola company position in the network influences allot the management.

This eludes that a network is mapped from the centric position to horizontal direction. The Coca-

Cola Company, ties other key players to the production and how they link in to the broader

network of which the company is part of. Hence, a linkage position both shows a tactical sphere

of influence resources and doings the ownership and to what extent other partners of the

company depends on and might seek to influence the focal company, Coca-Cola company. The

position at which the company has taken is crucial for understanding the calculated

maneuverability of the any collaborators of the company, compared other position. The eventual

goal is to fortify the strategic position of the company on a framework of heterogeneous

resources which may take place for different value on the consumer and the distributor as well.

Coca-Cola company has there managerial principle activities that guide the linkage

with its collaborators. These practices purposely initiates and establishes new relationships

concerning the gaining of access to resources and activities which are beyond reach within the

present network frameworks. The company has taken an initiate for alliances and collaboration

between two or more firms illustrates this objective. These activities aims at generating and

coordinating practices and resources pursue to make value through coordination activities within

and without managerial jurisdiction. (Paul 2007)

The Coca-Cola Company’s managerial jurisdiction stretch on the network is further

classified into three. Firstly, management is in charge of the internal doings of the organization.
Secondly, the management influence is spread to the dyadic affiliation level. Thirdly, the

managerial outreach spreads to the network level. In their practices guidelines, they bring out the

dividing lines separating the internal and the exterior activities of the company as well as the

dyadic and the network. In addition, the three levels together represent nested hierarchy in that,

the managerial activities enacted on the network level drives and pin point decision made on the

collaboration and on the company’s level. This doesn’t mean that strategies are plans which are

trailed and then enacted in a linear manner.

Main activities of the management in a network.

The Coca-Cola Company, the formation of the new business relations pertains

gaining access to the activities and resources managed by Coca-Cola Company in the network in

order to renew the business opportunities. Thereof, the creation of new partnerships is a

paramount importance as well as the regular renewal of the partnerships. So as to maintain the

trust of the partners the company assures regular renewal of partnership terms. This are some of

the activities deployed by the company to sustain the collaboration.

Firstly, The Coca-Cola Company, assures to stipulate the network position it

assumes. Based on the network position ensures the fore seeing and communicating the chances

and limitations that emanated from to date network horizon of the firm. Several years ago, new

possibilities of shifting the positioning is always on constant evolving. Realizing these

possibilities is s critical job for a better management of the network.

A key factor regarding the formulation of Coca-Cola collaborations is that the

company define possible positional advantages with regard to existing practices. The focal

optimization challenge in a collaboration context is with scarce resource, to attain access to the
variety of diverse but complementary resources. Creation of the network objectives on the

collaboration level of a potential networking partners influences other partners than the company

itself. Depending on the approach to the company, sometimes Coca-Cola Company’s

formulation process is a however an explicit and ex ante join of forming a new collaboration. For

instance, the world cup and the Coca-Cola company collaboration. The tour has specified

guidelines by FIFA. Whereas, others are not strictly specified but as the process is on enactment

the responsibilities and unique characters attached to a specific person crystalize.

The company has enacted frameworks for reinforcement of the material decision-

making mainly focus on the collaboration positioning and the addition of new collaborations

from an addition vales point of view. In that the company minds on how the collaboration will

distort and reconstruction of the existing resources, hence leading to the entirely creation of new

forms value. The company not only considers the compatibility of formulating new relationships

and creating tactical innovation advantages, it also evaluates the positioning gain emanating from

adding or distorting collaboration of the alike kind that he company may be actively involved in.

(Burney 2006 )

The crucial factor that the company considers is the level of relationship. From the

management standpoint, the creation of business collaboration both calls for a systematical

assessment and procedure, while at that time there is allowance fir adaptation to the unique traits

of the business partners. The development and enactment of best practices of the collaboration is

created in the entire company’s structure. For this utilizes most of the scope of economies in the

course and exploit more entirely what has been obtained from the prior collaboration, hence

creating efforts in a crucial task for collaboration manger as the point to bank on in collaboration

creating. Furthermore, the ability to enact periodicals to start a new collaborations and reinforce
the activities when at most required. The company follows, outlined guidelines that standardize

the strategic value potential alliances. At the same time the company has follow up program in

charge of all potential leads calls for investment of resources and practices and cannot be

exploited at the same time. The management has the capacity of selecting and deselecting

possibilities for initiating relationship and affiliations and allocation or responsibility for the

parties in the network.

The management of the company stipulates the boundaries and conditions for

personal connecting. Business relationship is a social activity in nature. The parties involved

with the company have developed the element of trust. In the company, the employees have the

ability to create personal ties and utilize this element in pursuing a common goal in the project

handling. As a result this is reflected in as well in the all the collaborations the Coca-Cola

Company has been involved with. The cognitive skills are of paramount importance is the

selection the company’s employees. These are the basis on which the company is banked on. The

company has enacted semi-permeable boundaries that are highly adaptive depending on the

situation encountered. Therefore, managerial support of personal networking activities brings

about loyalty among key employees and support sharing of the knowledge within and without

the company. The company puts more emphasis on social networking. The company’s

managements on social networks has throughout supported the workers inducement for learning

outside the company’s boarders and deploy the acquired knowledge and skills to the benefit of

the company. The company takes pride to have mastered the act of careful balancing of personal

networking actions not only promoting the interest of the company but as well as personal.

However, the company is cautious in that the personal interests doesn’t entangle the company’s

interests. (Burt 2005)

 Coca-Cola company management ensures that there is the presence of conditions for

systematic networking. The management is required to implicate and facilitate the principle for

how the company member should be approached, maintain personal relationship formed in

connecting to the company’s activities.

As stipulated by the Coca-Cola Company’s constitution, the management of the

company is in charge of allocation of actions and resources. The thriving of the company entirely

depends on the provided resources by the external partners for tactical leverage. The resource

allocation and activities within and without the company is strictly defined by the fact that it’s a

beverage company. Thus the business model defines what and who to relate to. Thus all partners

in the network immensely dictated the chain position each party will take. Mostly, the

relationship is a long term relationship. This strengthens the collaboration as the parties’

encounters the endeavors as a team.

For administration, the resources must be well allocated in response of supporting the

collaboration. For instance, the Coca-Cola Company instead of increasing the pressure of the

cost, they liaise with the distributors in order to develop their competences and drives the cost

low through reducing the cost of transportation. The criteria that is used in making the decision

always assures to consult both sectors of the network. All these depends on both sides

collaboration. Usually, there are regular meetings to assure the allocation of resources are in

favor of the two side.

Another managerial issues faced by the company is to bring to stable and fruitful

mutual networks. From the management of the relationship point of view, it is always important

to ensure that it is generally understood among all the parties that any contact to involved

member of the partner of the company contributes at all levels of the performance of the
company. Uniquely, the company collects systematically collects the kind of information and

acts upon. Apparently, the other focus is on enabling the communities in order to enhance

collaboration stability, accommodating and facilitating arenas for contemporary interests of

distributors, consumers and any other constituents to debate. The debates will handle the

stabilizing and the routinizing the relationship. Combined and jointly accepted norms reduces the

chances of attacks for communication failure and reinforce the process of jointly specialization

and the starting of efficient of problem-counter heuristics through company boundaries.

(Parvatiyar 2001)

The management is responsible to align the company with the collaboration and

networks. Apart from creating and stabilizing collaborations, it is responsible to terminate or

even provide relationship to a third party. The Coca-Cola Company, is diverse and highly

adaptive to its environs. The company has aligned its elements to co-align with the relationship

as well as the network. Perhaps, all the networks are prone to be changing. This fact makes the

company to be an outstanding as the networks are dynamic.

In conclusion, the Coca-Cola Company has a new perspective for managerial

activities. The company has developed a variety networks. The company is seen to be the focal

point in almost all the collaboration. Usually the company is open to all the collaboration

regardless of the policies. Developing and enactment of the networks are well propelled by the

managerial activities.
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