Final IB Draft Sashi Ratnayake
The final and third chapter would be to understand how the company responds to the Integration Responsiveness Framework (IRE) and the pressures it face when local responsiveness is been discussed along with how the company reacts to global responsiveness. The key learning and the findings after formulation of the report are, The Coca-Cola Company is one that followed geocentric policy but now it’s a recognition policy. Due to unfavorable situations, in its performance the company moved to the transnational strategy from the global strategy.
Coca-Cola as a company holds a higher stake in the integration responsiveness ramekin while it concentrates on worldwide learning and flexibility. Acknowledgement would like to take this opportunity to express my profound gratitude to our lecturer Dry. Mashes Samaritan for her tremendous support and guidance throughout this assignment. It is due to her teaching, supervision and encouragement that I have been able to successfully understand and complete this assignment. Would specially thank my parents for helping me out financially and morally to plan my career for the following two years.
And I would like to thank all the staff members at PIPIT city campus and all hose of the individuals, who’s the names are not mentioned. Without the help of you all, the completion of this assignment would have never been possible. This exercise is not done with the soul intension of obtaining good grades but to increase my work skills and business skills in planning out a bright future ahead. Thankful again. The report is formulated in such a way to explain how The Coca-Cola Company came up in rankings as the world’s largest beverage manufacturer, while evaluating its international business environment.
The report will critically evaluate the following questions and sub sections:
- Chapter 1- Aim 1 is to critically analyze how The Coca-Cola Company executes their international staffing policies and how the company develop global managers Aim 2 is to demonstrate how Coca-Cola’s overall Human Resource Management (HARM)
- Chapter 2- Aim 1 is to critically analyze Coca-Cola’s internationalization strategy and the advantages that they derive from that particular strategy. Aim 2 is to critically evaluate how Coca-Cola achieves efficiency, flexibility and worldwide learning.
- Chapter 3- Aim 1 is to analyze Coca-Cola’s Integration responsiveness framework Aim 2 is to analyze the pressures that Coca-Cola faces for local responsiveness and lobar integration
Source
Authors work
The structure of the report will critically unveils the companies’ values, culture, entry strategies, internationalization strategy, ethical standards and the impacts faced by other competitors for local responsiveness. Meanwhile, to prepare the following report key reference books, leading journal articles and relevant websites utilized in the area of International Business were used. We strive to have a limited number of international people in the field because generally local people are better equipped to do business at their mom locations,” argued Peters, director of HER for corporate finance and human resources in Atlanta, previously HER director for Coca-Cola’s Northwest European division, Infusion (1994). According to Permute (1969) Mac’s were thinking about doing business on a global scale, and how this mindset was shaping the companies orientation towards doing business around the world.
The orientation of a NC can be reflected in its product offerings, organizational culture, methods to managing foreign workers and recruitment of employees for top positions.
- Ethnocentric Orientation – home country
- Polytechnic Orientation – host country
Geocentric Orientation
Whole world Recalling the above statement from one of the key individuals of the Coca- Cola Company it is evident that Coca-Cola sees itself not as a global organization, but as a transnational enterprise following a geocentric policy which has been extended into a recognition policy.
Coca-Cola’s transnational strategy allows business operations in more than 200 destinations worldwide while operating under the respective local laws, trends and cultural differences. Therefore the technique used by the beverage giant is to employee many nationals in its international business. Though such a trend exist within the boundaries of the company the need of expatriates have been arousing based on two reasons. As argued by Sweatshops (2010) one reason is to fill a need for a specific set of skills that may not exist at a particular location. The second reason according to Sweatshops, (2010) is that if employees cross borders and relocate themselves in different locations and subsidiaries it would be for their own development. Infusion (1994) explains how Peters supporting this argument said, “before you take on serious senior managerial accessibility in the company, you should have had an international exposure. The above statement also touches upon how Coca-Cola develop individuals till they reach the level of global managers while focusing on how much international exposures is there before selecting global managers who should possess international caliber.
The best use of human resources Building a cadre of international employees compatible with any culture Multidimensional transfer of core competencies help in creating value through an experience curve of different economies According to the Coca-Cola Company (2010) the above advancements in the year 2009, when they entered the Great Place to Work Institute United Kingdom’s rankings for Great Britain for the first time as No. 26.
The reads Host government restrictions on staffing Very high expenses due to the need of providing for the families of transfer employees Meanwhile, Coca Cola focus on human resources development by incineration on the education and training of its employees spending millions every year for training. After significant investigation and researches, Coca Cola In 2007, launched Coca-Cola university (Call) a virtual, global university for all learning and capability-building activities across the Company. E-Learning was used to train Coca Cola newly recruited managers and expatriates (Sweatshops, 2010).
According to Bandmaster (1995) introduces four methods that is now used by Coca-Cola to train expatriates for international assignments,
1. Pre-departure training for expatriates
These training sessions will provide expatriates and their family with information related housing, schools, shopping, and health care facilities in the host Country.
2. On-site training for expatriates
At the host country the expatriate will receive additional onsite training to familiarize the expatriate with the local working procedures and work environment.
These formal programs will deliver orientation about the host country customs and cultures.
3. Repatriation
Expatriates and their family Will adapt the host country norms and culture especially in long-term assignment. Usually they will experience high level of tress and cultural shock when return to the home country as a result Of changes that have taken place since their leaving.
4. Training for Host Country Nationals (Hess) and Third Country Nationals (Tics)
All employees from team leaders upwards are given an annual skills assessment and development plan.
When looking at the above facts and figures, it is evident that the Coca-Cola Company is a geocentric company trying to extend the branches to grow as a recognition company. The staffing methods used by Coca-Cola can be praised due to the allocation of labor units throughout the world while ongoing what is best for the company and the locality of the subsidiaries. The overall HARM structure of the company also lies at a very high stake with a promise to grow more with a high level human friendly environment. Boozer (201 1) argued that, “the key for international companies is finding the right mix of global and local in their operations.
