Presented by-Group 1
Case facts
Coca cola : worlds most successful multinational
Operations in 200 countries
80% income from- International market
Philosophy of THINK GLOBALLY, ACT LOCALLY
gives freedom to national business to operate in the manner they think is fit
Tries to establish a common mind set among all employees
Manages its global operations through 25 operation divisions
Internal alignment through common HR philosophy within the
company.
External alignment by aligning with industry in different countries and
gathering and sharing knowledge
Coca Cola follows a common salary philosophy where the total
compensation package is competitive with best companies
Coca cola staff its operations with local personal for better
performance in home location
Coca cola needed Expatriates in the system for
Fill the need of specific set of skill
To improve employees own skill base
Glocalization
Q1. Importance of think global, act local
strategy for a MNC
Importance of Global vision
Helps in profit maximisation - Intensive market expansions across
countries and continents.
Importance of adoption of measures according to local needs
Different - markets, political system, religion of people, culture, standard
of life etc. These differences find their reflection on consumer
behaviour, customer expectation and other related matters.
From Coca-colonization to Cocalocalization
Globally standardized product
Until 1980s Centralized control (both operations & Marketing)
Marketing concepts developed in HQ Atlanta, minimal local inflection
Most revenue derived from US market
1990s Sales in the Asian market dipped => Globalization and
strategic localization
Need for more understanding of cultural, geographical & economic complexities
was felt
Coke restructured marketing communications and operations
Designated 13 countries as creative hub designed ads for 200 countries
Developed new products non-cola drinks
Corporate HR policies as guidelines to develop local HR practices. E.g. Compensation
package to be competitive with best companies in local market
Glocalization of Coke - India
Introduction of 200ml at Rs 5/- in reusable bottles to attract the
price sensitive Indian customers
Advertisements in regional languages with attractive tag lines like
Thanda matlab coca cola
Accompanying celebrity endorsements
Promotion of Coke accompanying regionally relevant food combos
Adaptation to distribution in diverse conditions - branded
rickshaw vans, tricycles and lahris (pushcarts)
Glocalization of Coke
Coke is positioned differently in different countries.
Ex: North America - attuned to values of family and security
Brazil and China - Innovation
Different websites for different countries like [Link]
(South Africa), [Link] (China), [Link]
(Germany).
Acquisition of local brands. Ex: two-thirds of Coca-Colas sales in
Japan are from local beverage brands
Q2. HRM orientation session at Coca-Cola
Conducted twice a year
Organised by corporate HRM group
Two-week orientation session
Participants HR staff from its 25 operating divisions
The session covers the following
An overview of the company's HRM philosophy
How local units can translate corporate HRM
philosophy into local HR policies.
Benefits of the session
Information sharing on best practices and approaches to
solving common problems
Provide a platform for communication
Facilitates learning from each other
Promotes rapid transfer of innovative and valuable HRM
tools from region to region.
Provides international exposure
Advertising the 200ml coke at Rs. 5/in Gujrathi
Coke and food combo in southern
style
Regional Campaign in Gujrathi
Award winning Add (Thanda
mathlad coca cola)
Thank You