Case Study
Coca-Cola and CEO Douglas Ivester
And
BP and CEO Tony Hayward
1. If Douglas Ivester was so successful, for years, on the executive staff, why did he fail when he was given the CEO/president position? Give an overall impression, broad stroke explanation of why he failed. Ivester was a hardworking, diligent CEO, but he lost sight of the people side of Coca-Cola. In any business people are a very important aspect that needs to be nurtured because without them the business is nothing but a name. Ivester’s predecessor, Robert Goizueta, had a “management mantra -- this is a people-relations business” (Knoop, 11). Ivester seemed to forget that mantra and took over the company selfishly.
2. List the key situational
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From an emotional intelligence perspective I think Douglas Ivester had more failing then successes. Ivester had a high I.Q. but lacked emotional intelligence (E.I.). He failed by not have very good social skills. This was shown by how he dealt with the bottlers of Coca-Cola. He wanted power over them instead of building relationships. Also, he failed by not having empathy for others. His lack of empathy was shown by the contamination scare in Belgium. At the time of the scare many people were dealing with the past scare of Mad Cow Disease in 1994. The Coke contamination made everyone’s emotions heighten. Ivester should have responded more quickly to the situation and with more empathy for the people who were experiencing it first hand. His one success was motivation. Ivester was highly motivated and he seemed to push through all of his setbacks although it seemed he didn’t learn any lessons from his mistakes.
7. What type of leadership approach did Ivester take when he was part of Coke’s executive staff? During the year of being part of Coke’s executive staff Ivester was more of manager instead of a leader. Ivester was able to work up the corporate ladder at Coca-Cola. He became a finance wizard and for twenty-years he was proving himself to the company. He was very competitive at what he did and he was a genius at managing operations.
8. What type of leadership approach did he take once he became CEO? Ivester’s
Harvard Business Review case, The Nuclear Tube Assembly Room, is an excellent example of how managing and leading a team effectively can make a substantial difference in terms of results and goals achieved, all the while creating new ambitious expectations for workers. This particular case revolves around Ralph Langley, general foreman of the process department at American Radiotronics Corporation. Within the first 24 months of being promoted to general foreman, Langley has swiftly changed the mentality and efficiency of the workers in the nuclear tube assembly room. He has changed their terrible reputation into one of the most
Choose two business leaders either living or deceased, and provide three examples that illustrate how they demonstrated leadership characteristics. For each of the people in the chosen examples, compare and contrast the differences between his / her leadership characteristics.
The next stage is a stage of providing the actual change actions. Here, the company has chosen a new CEO and President, Douglas Daft, who was an opposite of Ivestor. Daft was a delegator, who wanted to turn Coca-Cola to a most desired company by employees in the world. He also saw a company as a head of the class, when speaking about diversity of workforce and business. Daft was fast in his actions. He has put Ware on the position of Vice-President for Global Public Affairs, as he was concerned about diversity issues in the company as well. They applied Ware’s suggestions about supporting the diversity from the top-executives and tying compensation increases to the achievement of diversity goals. On this stage, the U.S. District Court for the Northern District of Georgia approved the Settlement Agreement, which was used to non-hourly U.S.-based workers of the company, excluding its bottlers and called for pay-back to employees, future pay equity and equal employment opportunity. Task Force was created to provide an independent supervision of company’s compliance and was reporting on implementation of these programs. On this stage, Coca-Cola learned a lot about its past mistakes and provided dozens of changes to its policies and procedures. As it is not possible to change a whole organization in a short-time period, Coca-Cola was implementing changes during the next decade after a lawsuit and even created a document, called “Manifesto of
He recruited Harlan clever, to be the chief technology officer, David Barry to be COO (chief operating officer) and Doug Vlchek to lead the organizational change and culture building efforts. When he came to lead the company October of 1999, the organization was in a mess. It had financial operational regulatory and moral difficulties.” They were technically bankrupt, and being investigated by SEC, they were sued by shareholders, had turnovers at twice our current level, was almost out of cash and in general, wasn’t the happiest of place.”(Thiry)
He dedicated all his time and skills towards ensuring that he improves the company’s performance. The company had not been performing well until he exhibited his skills and expertise in the sector. He possessed great dreams and had great plans for the company right from day one he became the CEO. The company had been in the industry for more than 80 years and was a big name already. There were times it used to be the industry’s giant, but Greg came with a lot of potential and desire towards changing it completely. He didn’t have a choice but to work for its growth through teamwork, hard work, commitment and more innovations. He had the desire of changing the railroad industry through the company and worked to be the leader in the North America region.
The Coca Cola Company is very cautious and responsive to change; they act with urgency and have the courage to discourse when needed to work more efficiently. Coke’s focus is to administer its system assets to build values and rewards for the people who take risks by finding better ways to solve problems. Coca Cola Company feels they are accountable for their actions and inactions and hence answerable to the people. They learn from their outcomes and understand what works or what doesn’t for them.
He was a good manager but not a leader as he was exceptional planner and controller but was unable to have a good relationship with the team members. All of us never felt motivated by him to work.
After a frustrating year and a half, Dick was suddenly made plant manager of an old British company which had just been purchased by Tri-American. He left his first English assignments with mixed and moved from London to Birmingham. In Birmingham, he become a plant manager and operated much as he had in his troubleshooting job for the first couple of years of his change from sales to administration. He did some changes in Birmingham. Training and reduction programs were instituted for all supervisors and managers who survive the initial purge. He tried to focus/ control on relationship between production and the needs from sales by simplifying and redesign in order to increase profit. Later the company showed a small profit for the first time in many years. For this successfulness, then he requested transferred back to United States.
Clearly, Jager was unable to change the dynamics of the company in a positive way using his methods and techniques. Do not provoke your employees, because leadership is established by trust and understanding (Proverbs 16:12). Overall, the loss of profit, disregard for employees and the loss of profit along with his abrasive leadership led to his demise. The company continued falling further into disarray and dissatisfaction with the current leadership. It was time for a change and Procter and Gamble decided to make the change and hire a new Chief Executive Officer.
When the competition started increasing and the market started decreasing, Boyer as a leader, wasn’t able to adapt to the changing environment and instead relied on his managers when its should be visa versa. The managers could not cope with the change and ended up blaming each other. If managers are set on the correct path and lead by an ambitious leader, they are able to adapt and change and once again grow to gain back their market shares.
Evaluating his approach to bringing about change in his organization. Comparing his approach with that of Jack Welch.
One specific instance of when he practiced resonant leadership was during a time when the organization was going through a time of restructuring and change. Quarterly earnings were out and unfortunately they were not meeting
managed to rebuild a low morale and a high turnover Unit selecting entrepreneurial minded people. He truly believes in
Dr. John S. Pemberton is the man that created the drink today that is one of the most popular beverages in the world called “Coca-Cola.” He created his own flavored syrup but it was his partner Frank Roberson who deserves the credit for the name. The key governance guidelines for the company are as follows: Board Mission and Director Responsibilities, Board Leadership, Director Qualifications, Director term and tenure, Determination of Independence, Committees of the Board, Director Access to Officers, Employees and Information, Director Orientation and Continuing Education, Annual Chairman of the Board, Management Success, Annual Board Performance Evaluation, Director Compensation, and Board Interaction with other Interested parties. One
Building companies requires the know-how to build long-lasting teams. This is why most managers never become leaders and why most leaders never reach the highest pinnacle of leadership success. It requires the ability to master the “art of people” and knowing how to maneuver hundreds (if not thousands) of people at the right place and at the right time. It means knowing how each person thinks and how to best utilize their competencies rightly at all times. It’s playing a continuous chess match – knowing that every wrong move that is made can cost the company hundreds of thousands, if not millions of dollars (just ask BP and Enron).