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Apply Henri Fayol’s Five Rules of Management to the Coca-Cola Case

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Apply Henri Fayol’s Five Rules of Management to the Coca-Cola Case
Apply Henri Fayol’s five rules of management to the Coca-Cola case

According to Fayol’s five rules, the first rule is about foresight; the second rule is about organization; the third rule is about command; the fourth rule is about coordination and the fifth rule is about control (cited in Chris, 2005).

Consider the first rule, it refers to either idea or plan for the future development in a company. In the case of Coca-Cola, they showed a clear and proper way for their foresight. Consider the following case, Coca-cola had decided to build a new bottling plant in Malaysia on 16 March and the plant is expected to open before the end of 2011. “With the new plant, one of the most modern of its kind in this part of the world, we will be able to support our core brands of Coca-Cola and Sprite in the coming years " said Glenn Jordan, Coca-Cola's president of the Pacific Group (IndustryWeek, 2010).Moreover, Coca-Cola announced that their profit increased 55% in the fourth quarter due to significantly increased in the developing countries such as India and China.(IndustryWeek,2010)Coca-Cola Company can made a idea of building a new plant in order to fulfill their further increase in selling of beverages, which need more bottles for their drinks. Also, their sale figures proved that their plan of building new plant is a proper and right way to deal with their production need.

The second rule is corporation, which means that the company can allow flexible in using their resources. The company did an excellent job in this issue. For example, the company set up a unique Coca-Cola System which provide better corporate with its suppliers like bottling partners (Coca-Cola, 2011). Through the system, Coca-Cola Company can collect and consolidate different types of data like economic and social data in order to the environmental data collected by themselves already, then the company combined all these data to provide a certain degrees of flexibility in



Bibliography: Agence France-Presse (2010) ‘Coca-Cola to Build Malaysian Bottling Plant’ Industry Week http://www.industryweek.com/articles/coca-cola_to_build_malaysian_bottling_plant_21350.aspx [accessed 27 February 2011]. Chris Jarvis(2005) ‘Fayol (1841-1925) Functions and Principles of Management’ http://www.bola.biz/competence/fayol.html [accessed 27 February 2011]. Coca-Cola (2010) ‘Coca-Cola Zero’ http://www.cocacolazero.com/index.jsp [accessed 26 February 2011]. Coca-Cola Company (2011) ‘The Coca-Cola System’ http://www.thecoca-colacompany.com/ourcompany/the_cocacola_system.html [accessed 28 February 2011]. Coca-Cola (2011) ‘Product List’ http://www.thecoca-colacompany.com/brands/brandlist.html [accessed 28 February 2011]. Coca-Cola (2011) ‘Mission, Vision & Values’ http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html [accessed 28 February 2011]. Coca-Cola (2011) ‘Sustainability’ http://www.thecoca-colacompany.com/citizenship/index.html [accessed 28 February 2011]. R.Schermerhorn John (2005) Management: With Workbook: Personal Management. USA:John Wiley & Sons. Wikipedia (2011) ‘In search of excellence’ http://en.wikipedia.org/wiki/In_Search_of_Excellence [accessed 27 February 2011]. Wikipedia (2011) ‘Coca-Cola’ http://en.wikipedia.org/wiki/Coca-Cola [accessed 25 February 2011].

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