Introduction
The nature and needs of firms and organizations are changing abruptly. For these entities to succeed in this competitive business world the need for effective implementation of organizational processes is paramount. Organizational processes are organized ways in which firms define, organize and implement their operations. Such are strategic measures used to improve the performance of the business, cope with competition and capitalize on the changes in the market. Other processes are the improvement of intellectual property and proprietary models that help in meeting the firm’s goals and objectives.
The close relation of process improvement and cycle management which at any stage of operations can analyze inputs and outputs accordingly is that both improve productivity, reduce costs, and control quality. Any Corporation will work towards the improvement of organizational processes to enhance performance. The greatest challenge to organizations today as I have mentioned before is the fast-changing business environment. More and more organizations today face a dynamic and changing environment which in turn requires these organizations to adapt.
This process of organizational change can better be analyzed by systematically going through the stages of the life cycle of the product/service. If the procedures used in each of the stages can be identified then firms can analyze the impact of the changes and improve their organizational processes in order as countermeasures to continue to perform well. The purpose of managing change is that it comes in handy when it comes to the objectives and goals of the organization in regards to organizational development because company development is optimized as resources and capital are effectively integrated.
Red bull and Monsters drink are big international brands making millions of sales all over the world every day. Energy drinks which are produced by these two companies are not as tasty as one can expect but still have managed to pull in millions of dollars in profit. Even with the global financial crisis and the current economic meltdown, the brands have remained as strong and competitive as ever due to their efficient decision-making framework. Considering how technology is “changing jobs”, cultural diversity, competition, social trends, and world politics all affect the companies’ businesses but somehow they have continued to plan themselves through (Gross and Brodt 92).
In this paper, the organizational process used by Red Bull and Monster drink will be reviewed with specific highlights on structure, networks, cultural differences, and change issues. A close examination of the strategic and operational decisions which were critical to the companies’ survival in difficult situations and also obstacles faced by the companies as they establish develop their competitive positions is included. There is no doubt that if internal strategists of a company and dynamic teams are not able to think on their feet to develop new ideas and adapt to the changing needs of an increasingly competitive business environment will make the company fail.
Therefore in this paper, I will explore the challenges faced by the management teams of the two companies, Red Bull and Monster Drink which provoked from them new strategies, processes, networks, and ideas that influenced the companies’ development.
Organizational structure
In any organization, the way tasks are divided and those which are commonly grouped so that they can be easily coordinated to achieve goals and objectives as Robins (462) argues, is what’s known as organizational structure. If you look closely at the definition you will notice that there are actions that have been mentioned namely, dividing, grouping, and coordinating job tasks. In organizations, these are managerial tasks. There is quite a list of issues to be addressed when the organizational structure is being designed. Some of them include work specialization, departmentalization, control and decentralization, and centralization.
Henry Ford in the early twentieth century before he became rich and famous as an example of a manager who knew what was the importance of work specialization. In his automobile assembly- line every worker had a specific, repetitive task. This is a specialization that improved the efficiency of performance and made Mr. Ford a rich man. Those companies that process customers as well as products then process departmentalization can be used. Decision-making processes can prove very costly if not handled well. This is why the persons who make decisions ought to be carefully selected in any organization. Lastly is formalization. This is the extent to which firms standardize the job tasks.
The two companies Red Bull and Monster Drink both have excellent organizational structures. The Red Bull brand thrives on its entrepreneurial structure with a conventional marketing strategy that has managed to maintain a premium price eight times higher than that of coke. Their matrix structures have managed to support excellent organizational processes that brought together all its functional departments to create the greatest products the world has ever seen. The Monster Drink Company has managed to forge such a structure that took the brand to another level. The well-structured departments of the company which coordinates the production, marketing, and supply departments have made Monster Drink and Red Bull, not just brand names but a way of life.
Networks
Networking refers to the establishment of good relations with other organizations to accomplish your objectives. In the current world of such high mobility and dramatic changes opportunities are abundant as well as risks. The need for developing and maintaining a wide range of contacts is as paramount as can ever be and shortly maybe even more so. Not that networking is only for opportunities and contacts but also partnerships and consultations. In the business world networking is an essential organizational process that helps very much in sharing knowledge, increasing efficiency and productivity (Nordberg 31).
Monster Drink and Red bull have managed to establish a network of so many organizations which support their businesses from distribution to marketing. This is a very essential organizational process as I have mentioned before as everyone can see the miracles of eBay, Hotmail, and Starbucks. Networking will also help create and capture consumer surplus and establish mechanisms through which agents share information and strive to innovate new ways to maximize sales. A network of sales teams, distribution agencies, and advertisement companies all across the US, Europe, North America, and Asia have helped the two companies to gain recognition, popularity, and most important loyal customers.
Culture Differences
An organization has got to have members who place meaningful values which will distinguish it from other organizations. This system of values is what is termed organizational culture. In most international organizations cultural differences are inevitable as operation in more than one cultural zone will raise concerns. This meaning that is shared by the members when examined closely is a set of values and characteristics that an organization identifies with and chooses to be identified with. Robbins (485) suggested primary characteristics such as outcome and team orientations which in aggregate constitute the essence of what is known as an organization’s culture.
Other characteristics include the degree to which taking risks and innovation are encouraged to employees, stability, and how careful details are not overlooked. In totality organizational culture is argued that when it is strong enough can help reduce employee turnover. Although culture by definition is very elusive and implicit but contributes considerably to the improvement of performance and stability of the organization. It is termed as social glue (489) that helps bind the organization by guiding employees in what they say or do to the set of agreed standards.
The cultures of the two companies are almost the same in the sense that both companies have developed a culture that is very much aggressive and competitive. When Dietrich Mateshitz was trying to market the thin colored unappetizing new drink which he discovered in Asia saw that the –the-book way of doing things was not doing any good to his product and thus he decided to paint a new physical benefit rather than taste like other soft drinks.
This was aggressive thinking and entrepreneurial genius that built him a multi-billion dollar empire. Hanes also went to great lengths to establish the Monster Drink brand with fans all over the world. An organizational process which in return can do wonders when it comes to strategic ideas such as the unique art used to market the Monsters brand which has managed to pull the monster out of its loyal customers. Careful selection of employees with international quality from different cultures as suggested by Torbion (47) when managed well can transform any organization into a money-making machine.
Not only within Red Bull and Monster Drink Companies that cultural differences were made to improve the organizations’ performance with such disciplined aggressive teams but also to manifest into a product that penetrates through different cultures and traditions to a global level
Organizational Change
As I have aforementioned that the modern environmental business forces keep the pressure on managers and their team to implement comprehensive change programs to keep up with the unexpected variability of the markets. Studies show that when change comes most people and organizations often resist change. In a sense, this, as argued by Sparrow (197) is positive because employees’ behavior can be predicted and thus easily stabilize the harmony of the organization or control the behavior in case of the introduction of changes. Nevertheless, without the resistance, there would have been chaotic randomness.
In organizations, the sources of resistance to change as stated by Robbins (553) are structural inertia, limited focus to change, changes in organizational patterns which cause threats to the expertise of specialized groups, and threats to established power relationships.
All the above-mentioned forces of change can be checked and have been by the Monsters Drink and Red Bull Companies. These World-Class Companies have employed effective tactics over the years which have enabled them not only to stay ahead but also to capitalize on the changes. Red bull saw an opportunity when the popular culture was taking over and the young people became obsessed with funk music and introduced the “cool” personality on the brand to go with the times. Not only Red Bull but Monsters Drink sponsor many music events personalizing their brand and identifying with their young fans in Canada and Europe.
The techniques come with what change brings, the need to cope and adapt. Red Bull’s marketing technique which brought alive the slogan “red bull gives you wiiiings” that we see and hear every day on radio and TV is what team managers who are aggressive and quick to adapt to change.
Strategic and Operational Decisions
In the development of any organization, the management of change is the only way of ensuring the betterment of performance. Education and communication which can be very useful when it comes to the reduction of resistance to change are some of the strategies used by the two energy drink companies. Red Bull for example dedicated its whole organizational structure to education and coaching. This is what brought about the ultimate success in 1988 when the ingredient taurine in Red Bull was being shunned as disgusting.
One of the strategies used by all the companies is the strategy of building on myth. This has given both drinks a considerable boost in their sales as some customers believed that the stimulant that gives you energy comes from cows’ testicles. Both companies manage to build mysteries around their products creating more and more curious as well as customers. Right now in Europe Monster Drink is so much integrated within the young individual to the extent that it has become a way of life. This is because both brands do not rely only on the window benefit but the functional benefit.
Challenges
Indeed organizing like planning must be systematically worked out and implemented to the letter. This process involves the identification of the types of tasks to be accomplished to meet the organization’s objectives. The result of the organizational processes is an organization. One entity in whole is comprised of smaller parts working together with harmony to meet objectives. In a situation where the organizational processes haven’t been conducted well then confusion, loss of efficiency which contributes to frustration and limited effectiveness might arise.
Having said this, I would like to go through the different stages of the organizational processes examining the challenges faced by management teams in and out of the two energy drinks companies. The companies’ objectives are very precise and clear to enable goals to be achieved. Managerial teams have to make sure that every department has its plans examined continuously. The purpose behind this is that change comes with a host of complications that might require a change of plans and even set new objectives.
Red Bull and Monster Drink management teams across Asia and Europe have been the best at this though of course stiff competition keeps them on their toes. Issues such as cultural differences the organization within these international organizations, the changing market, and the volatility of the global market are among the challenges faced by managers.
This has led to the formulation of new strategies and different way of marketing approaches to adapt to the changing needs of an increasingly competitive business environment. Red Bull capitalize on its method of the rumor by omission unless when necessary, denial. Monster Drink came up with the idea of a highly distinctive logo with three claw marks making a letter “M” which they decided to advertise not through the same channels of advertisements. Instead, they took to the streets where customers will get to feel the instant effects of the drinks in sporting events, and with their unique art as depicted by the logo itself, T-shirts and hats also sell as much as the drink itself which is a challenge met by the management.
Conclusion
As I have said in the introduction, the nature and needs of firms and organizations today are changing abruptly. For these entities to succeed in this competitive business world the need for effective implementation of organizational processes is paramount. Organizational processes are organized in ways firms define, organize and implement their operations including teamwork organizational activities, leadership, network, and management structure (50).
In this paper, the structure, networks as well as cultural differences, and change issues concerning Red Bull and Monster Drink Companies have been reviewed. The Red Bull brand thrives on its entrepreneurial structure with a conventional marketing strategy that has managed to maintain a premium price eight times higher than that of coke. Also, the Monster Drink Company has managed to forge such structure that took the brand to another level. These well-structured organizations which coordinate the production, marketing, and supply departments have made Monster Drink and Red Bull, not just brand names but a way of life.
Also, the networking process has brought a lot of money to the two companies from its network of customers, fans as well as other organizations like coca-cola which collaborates with Monster Drinks to introduce the products to emerging markets like Asia and Africa. The companies’ network of sales teams, distribution agencies, and advertisement companies all across the US, Europe, and North America have helped the two companies to gain recognition, popularity, and most important loyal customers.
Cultural differences within the two international organizations have been made part and parcel of the organizations that become stable and with an organizational culture that transformed almost every layman into a loyal customer. An organizational process that has done wonders when it comes to strategic ideas such as the unique art used to market the Monsters brand which has managed to create multitudes of followers and believers.
Not only within the organizations that cultural differences were made to improve the organizations’ performance with such disciplined aggressive teams. The combination of different cultures in these organizations can be seen in how well they manifest into products that penetrate through different cultures and traditions to a global level. Some challenges came about from the ambitious projects done by the companies especially when attempting to sell their brands to different customers in different countries but the management teams managed to forge a relationship with their customers through sports and music. Change and competition were the challenges that brought the best out of both management teams to succeed.
Finally, the strategies used by the companies to compete and develop were to mention a few, building on myth which has to give both drinks a considerable boost in its sales as some customers believed that the stimulant that gives you energy comes from cows testicles.
Both companies manage to build mysteries around their products creating more and more curious as well as customers. This is because both brands do not rely only on the window benefit but the functional benefit. They’re involving the customer through the participatory methods of advertising from a person to another have made Red Bull popular among those who take liquor and also those who don’t and same to Monster Drink which is famous in sports as well as fashion.
Works Cited
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