1
,Table of Contents
Question 1 (6 marks) .................................................................................................. 3
Question 2 (6 marks) .................................................................................................. 4
Question 3 (22 marks) ................................................................................................ 5
Question 4 (16 marks) ................................................................................................ 9
Question 5 (20 marks) .............................................................................................. 12
References ............................................................................................................... 17
2
, Question 1 (6 marks)
Make a judgement with regard to the absorptive capacity of The Coca-Cola
Company. In your answer, define the concept of absorptive capacity (2 marks)
and then make a judgement with regard to the absorptive capacity of the Coca-
Cola Company based on the four dimensions that determine the absorptive
capacity of an organisation. (4 marks, of which 1 mark will be allocated for each
one of the four dimensions of absorptive capacity and the application thereof to
Coca-Cola.)
The Concept of Absorptive Capacity
Absorptive capacity is a critical strategic capability defined as an organisation’s
ability to recognise the value of new, external information, assimilate it, and
successfully apply it to resolve pressing business challenges (Lynch, 2021). The
Coca-Cola Company exhibits an exceptionally high level of absorptive capacity as
it continuously adapts to complex environmental, social, and regulatory dynamics
within its operational markets, particularly South Africa.
Acquisition of External Information
The first dimension, acquisition, refers to an organisation's ability to gather relevant
information from its external environment notes Munna (2021). Coca-Cola
demonstrates strong acquisition capabilities by actively monitoring and interpreting
dynamic local conditions, shifting consumer preferences, and critical policy
changes, such as the implementation of South Africa's Health Promotion Levy (sugar
tax).
Assimilation of Acquired Information
The second dimension, assimilation, is the ability to analyse, make sense of, and
distribute acquired information across the organisation (Porter, 2023). Coca-Cola
successfully assimilates information by studying the decline in taxable beverage
consumption and utilising its five interconnected operating segments to transfer
knowledge, capability, and innovations across its vast global system with speed.
Transformation of Knowledge
The third dimension, transformation, involves combining existing organizational
knowledge with newly assimilated insights to develop novel perspectives (Widayanto,
3
,Table of Contents
Question 1 (6 marks) .................................................................................................. 3
Question 2 (6 marks) .................................................................................................. 4
Question 3 (22 marks) ................................................................................................ 5
Question 4 (16 marks) ................................................................................................ 9
Question 5 (20 marks) .............................................................................................. 12
References ............................................................................................................... 17
2
, Question 1 (6 marks)
Make a judgement with regard to the absorptive capacity of The Coca-Cola
Company. In your answer, define the concept of absorptive capacity (2 marks)
and then make a judgement with regard to the absorptive capacity of the Coca-
Cola Company based on the four dimensions that determine the absorptive
capacity of an organisation. (4 marks, of which 1 mark will be allocated for each
one of the four dimensions of absorptive capacity and the application thereof to
Coca-Cola.)
The Concept of Absorptive Capacity
Absorptive capacity is a critical strategic capability defined as an organisation’s
ability to recognise the value of new, external information, assimilate it, and
successfully apply it to resolve pressing business challenges (Lynch, 2021). The
Coca-Cola Company exhibits an exceptionally high level of absorptive capacity as
it continuously adapts to complex environmental, social, and regulatory dynamics
within its operational markets, particularly South Africa.
Acquisition of External Information
The first dimension, acquisition, refers to an organisation's ability to gather relevant
information from its external environment notes Munna (2021). Coca-Cola
demonstrates strong acquisition capabilities by actively monitoring and interpreting
dynamic local conditions, shifting consumer preferences, and critical policy
changes, such as the implementation of South Africa's Health Promotion Levy (sugar
tax).
Assimilation of Acquired Information
The second dimension, assimilation, is the ability to analyse, make sense of, and
distribute acquired information across the organisation (Porter, 2023). Coca-Cola
successfully assimilates information by studying the decline in taxable beverage
consumption and utilising its five interconnected operating segments to transfer
knowledge, capability, and innovations across its vast global system with speed.
Transformation of Knowledge
The third dimension, transformation, involves combining existing organizational
knowledge with newly assimilated insights to develop novel perspectives (Widayanto,
3
