Competitive Strategies



Competitive Strategies

Difference in Corporate Culture

The corporate culture of coca cola and Pepsi differs in several different ways. The changes in corporate culture have affected the operations and business activities of both the companies. It has been observed that the coca cola tend to have a highly centralized organizational structure that makes up the corporate culture of the company and it is also considered to be a barrier for effective team work within the organization. The teams are not authoritative to work autonomously within the coca cola company. Another aspect of the corporate culture of coca cola is the relatively hierarchical and formal culture of the company. In this way the management style at the coca a cola company is considered to be genteel. It refers to an organizational culture that can be compared and associated to the traditional and southern organizational culture. The management structure and organizational culture at the coca cola company is based upon the concepts of conservatism and class- consciousness. However, the corporate culture of coca cola do not enhance the equality spirit and thus, it hinders the effective participation of team members (De Mooij, 2009).

On the other hand, the Pepsi has a totally opposite corporate culture which fosters decentralization. The high extent of decentralization within the Pepsi cola affects the team work and other operations of the business. The incorporation of decentralization usually encourages the team member's participation and enhances the autonomy of the teams. However, too much decentralization has led the corporate culture towards the lack of coordination and unity among the business units and management. As a market leader in several key areas, Pepsi has been working lately on to the enhancement of its team work participation and coordination because of the focus on innovation where team work is regarded as the ...