The Universe of Coca Cola - Case Study Example

 Coca Cola: Coping with Diversity in the Age of Globalization Introduction Coca Cola is one of the world’s biggest companies dealing in a wide range of beverage products (Coca Cola 2011: Online). The company produces, markets and sells more than 500 established beverage brands, globally (Coca Cola 2011: Online). The Coca Cola brand claims to be the number one producer and seller of beverages and related products like ready-to-serve teas and coffee, juice pulp based beverages and juices (Coca Cola 2011: Online). As per the company policy, it also ascribes to corporate social responsibility by pledging allegiance to sustainable communities, environment conservation and a broad based development of the societies in which it operates (Coca Cola 2011: Online). The thrust of the HR is to develop a trusted pool of global leaders. The objective of this essay is to analyze as to how Coca Cola manages its diversified operations in a globalized world, while being sensitive to local social, environmental, legal and regulatory expectations and norms. Corporate Vision As per Muhtar Kent, the Chairman and CEO of the Coca Cola Company, in a contemporary context, the primary objective of the company is to produce and sell brands that are trusted and respected around the world (Coca Cola 2011: Online). Thus, the goal of the company is to respond to the changes taking place in the region specific markets by creating a decentralized organizational structure and by respecting and exploiting local expertise and knowledge (Coca Cola 2011: Online). To accomplish this mission, it is imperative for Coca Cola, to make sure that its managers and personnel placed around the world share a common vision and concern, while customizing their approach as per the local requirements and preferences (Coca Cola 2011: Online). HR Policy- Global Vision and Localized Application It was way back in the early 90s that Coca Cola accepted the fact that being a global enterprise; it has a truly global employee base. Hence, the company is well aware that the set of issues related to its employment policy are bound to have ample variations and differences (Anfuso 1994, p. 113). So managing its human resources operating in more than 195 countries, with the accompanying individual aspirations and mobility requirements has always been considered a big challenge at Coca Cola (Anfuso 1994, p. 114). Thus, talent management is a core strategic issue for Coca Cola, going by the fact that more than eight percent of its income accrues from overseas sales (Anfuso 1994, p. 116). Coca Cola has 25 operating divisions spanning across six regional groups (Anfuso 1994, p. 115). Each division is expected to operate on its own while exploiting its global skills and adapting them to local knowledge and values (Anfuso 1994, p. 115). Coca Cola encourages its expatriate managers to practice local responsiveness, while assuring global integration (Anfuso 1994, p. 115). The managers based at each division are expected to act as if the division has to sustain on its own, while benefiting from the leverage associated with being tagged to a truly global group (Anfuso 1994, p. 115). The work culture at Coca Cola is one of diversity (Anfuso 1994, p. 117). The role of HR at Coca Cola is to extend broad philosophies oriented around essentially human issues, while helping local leaders to customize and implement these philosophies as they find suitable for the region in which they operate (Anfuso 1994, p. 117). The thrust of Coca Cola has always been to develop a sound global leadership base that is willing to and deft at adapting to the regional cultural, legal and regulatory variations. Thrust on Global Leadership The talent management approach at Coca Cola has a discernable predilection for developing global leaders (Bass 2007, p. 36). The point is not only to develop leaders who are good at managing global operations, but who are also good at effectively acting across cultures (Bass 2007, p. 36). The expatriate managers and employees are it administrative or technical, are expected to let the cultures in which they operate, shape their leadership skills and requirements (Bass 2007, p. 37). An individual who acts successfully in one culture may not be able to do so in a different culture. Thus, right from the start, the HR at Coca Cola lays stress on the identification of talent and the associated capabilities required to work across cultures (Bass 2007, p. 37). The HR at Coca Cola tries its best to assure that the recruited personnel constitute a much diversified talent pool that is not only comfortable with mobility, but also has the ability and expertise to succeed in varied cultural, legal and regulatory frameworks (Pendergrast 2000, p. 47). The thrust of the leadership training at Coca Cola is to inculcate a taste for cultural flexibility and to develop the technical and managerial skills needed to achieve the planned outcomes in variegated legal and regulatory environments (Hays 2005, p. 27). Right from the day they join, the managers are encouraged to develop an understanding of the perceptions harbored by the vendors, customers and the employees at the specific locale in which they are to operate (Hays 2005, p. 52). The crux of the executive coaching at Coca Cola is to develop a set of highly mobile leaders who can effectively lead culturally diverse teams; can communicate lucidly and precisely in a multi-cultural work environment and can extend positive mentoring at varied levels and geographical locations (Pendergrast 2000, p. 66). The top management at Coca Cola makes it a point to extend mentoring, coaching and leadership to the expatriate employees posted along diverse geographical locations and exercising leadership at varied levels. The interactions of the expatriate managers are monitored over time so as to furnish prompt feedback and inputs (Pendergrast 2000). To qualify for propitious successions, the leaders at Coca Cola are mandatorily expected to have work experience in their home country as well as in other countries (Hays 2005, p. 53). Challenges Involved in Expatriate Assignments The expatriate leaders at Coca Cola do come across challenges affiliated to varied concerns and disciplines that are environmental, administrative or community related in their scope. Often, these challenges are made more unwieldy owing to the legal and regulatory context associated with them. Hence, the accompanying problems often requires a tight rope walking by the expatriate managers, which involves securing an optimal mix of company targets and sensitivity to local aspirations and requirements. Things become clearer as we analyze some practical situations faced by these managers in geographically diverse locations. In Egypt, Coca Cola faced aspersions as to not being environmentally responsible towards the exploitation of water resources at its bottling facilities (Daily News Egypt 2010: Online). So to allow for an image makeover and to secure local and legal acceptance, the locally posted managers struck a partnership with a local NGO CARE to provide clean drinking water to the population of the governorate of Beni Suef (Daily News Egypt 2010: Online). This initiative also aimed at enhancing the hygiene standards prevalent in the selected community, and to promote environmental awareness (Daily News Egypt 2010: Online). No doubt, this challenge not only required the expatriate managers to work closely with the partner NGO and the local community, but furnished them important insights as to how the local perceptions develop and how to manage the larger public opinion to gain social and regulatory support. Working closely with local companies and legal frameworks, makes way for the development of much expertise and skills. In 1999 Coca Cola struck a deal with Cadbury Schweppes, as per which it bought various Cadbury brands like Crush, Canada Dry, Dr. Pepper and Schweppes (The Columbian 1999: Online). However, later it was realized that this deal needs to be revised as Cadbury Schweppes faced antitrust challenges in various EU nations (The Columbian 1999: Online). So, as per the feedback extended by the local managers, Coca Cola had to alter this arrangement to cater to the impediments imposed by the local regulators. Crises are considered to be an exercise in learning and adaptation at Coca Cola (Hays 2005, p. 17). Global leadership, as envisaged by Coca Cola is not about fixed dogmas and norms, but the ability of a manager to customize its leadership style as per the local environment, beliefs and concerns. Conclusion It goes without saying that to a great extent, Coca Cola has been successful in augmenting its stock of efficient global leaders over the years, which are deft at responding to local aspirations and concerns and in adjusting their approach while taking them into consideration. Operating successfully in a globalized world calls for being sensitive to the region specific expectations and laws. For a company like Coca Cola, which has a bulk of its profits accruing from overseas sales, it is more than imperative to assure that its future leadership is adapt at operating across regions and cultures. So, as far the attitude of Coca Cola towards its expatriate leaders is concerned, it unexceptionally expects them to be malleable, flexible and sensitive. Reference List Anfuso, Dawn 1994, ‘HR Unites the World of Coca Cola’, Personnel Journal, Vol. 73, no. 11, pp. 112-117. Bass, Bernard M 2007, ‘Executive and Strategic Leadership’, International Journal of Business, Vol. 12, no. 1, pp. 33-40. Coca Cola 2011, About the Coca Cola Company, Coca Cola, viewed 2 February 2011, . Daily News Egypt 2010, ‘Coca Cola and CARE Launch Water Initiative’, Daily News Egypt, Al Bawaba (Middle East), HighBeam Research, viewed 2 February 2011, < http://www.highbeam.com/doc/1G1-234188056.html > . Hays, Constance L 2005, The Real Thing: Truth and Power at the Coca Cola, Random House Trade Paperbacks, New York. Pendergrast, Mark 2000, For God, Country & Coca Cola (2nd ed.), Basic Books, New York. The Columbian 1999, ‘Coca Cola Revises Deal to Bypass EU’, The Columbian (Vancouver WA), McClatchy-Tribune Information Services, HighBeam Research, viewed 3 February 2011, < http://www.highbeam.com/doc/1P2-23423027.html >. Read More