CROSS-CULTURAL PRACTICES AND INTERNATIONALIZATION
The Case of Coca Cola Amatil Table of Contents
Introduction 2
Overview of the Company 3
Results of the Survey 4
“14 Principles” at the Company 4
Internationalization and Sustainability 7
Cross-Cultural Awareness Policies of the Company 9
Impact of Policies on Management Processes 11
Strengths and Weaknesses of the Company 12
Discussion and Analysis of the Company 13
Roles and Responsibilities of Top, Middle and First-Line Managers 13
Process and importance of the leadership function 14
Recommendations 16
Challenges faced in the Research and overcoming them 17
Key Learnings 18
Conclusion 20
References 22
Introduction
In the current era of globalization, the new economic and political reforms has made it evident and clear that leaders of organization not only need to build trans- global competence, but there is also a need to build cross cultural competence. Cross- cultural competences is known to be enhancement of flexibility and awareness for having the capability and ability for thriving and surviving across the global era as a business organizations (Jonsen, 2010).
As per the 14th Annual Global CEO Survey by Price Waterhouse Cooper for the year 2011, the need had been identified to bridge the gap of global skills as one of the biggest concerns, specifically for companies considering attraction, recruitment, development and retention of talents across the globe (Moran, 2014). Costly mistakes, frustration, and
Kreitner, R. (2009). International Management and Cross-Cultural competence. (11th ed.). Management. Mason, Ohio: South-Western Cengage
The authors of the white paper conducted a series of interviews designed to solicit the knowledge and opinions of 18 CEO’s and C-suite executives of Fortune 500 companies to put together a list of characteristics and prerequisites that are vital to the successful trajectory of an effective business leader. Among a series of such requirements, global exposure through global assignments was a repeating mantra. Hand in hand with this was cultural sensitivity. One of the quotes cited in the white paper declared, “You have to have a very open, inclusive, global perspective – the ability to connect the dots, to really assimilate different
Globalization of business has had a large impact on the field of management. Those seeking management roles in large, multinational corporations must have a different set of skills than in previous generations. In his article “Globalization on the Homefront”, Harold Torrence (n.d.) wrote, “As a direct result [of globalization], management teams are racing to develop the skills and competencies needed to comprehend and appreciate an onslaught of values, assumptions, beliefs and traditions that are fundamentally different from their own.”
In a global economy, U.S. companies are becoming more diverse, whether through a global customer base, or through acquisition of other companies based outside of the U.S. With these developments the workplace becomes an amalgamation of individuals with different worldviews. These differences are the result of different educational backgrounds, and cultural norms. Though there are sometimes impediments that are created due to a conflict in viewpoints, overwhelmingly the benefits from the variety of perspectives outweighs any of the detriments. This view is not only one held by me personally, but one that most quality managers of successful international companies hold true as well. My interview with my direct manager, Dianna Ulrich-Hope, proved valuable in confirming my notions. As a Director of Pricing at Micro Focus, a global software company, her insights regarding international collaboration amongst professionals helped see how my cultural agility competencies align, and how to leverage them.
In order to form a leadership that keep on with the passage of time, international leaders and managers ought to demonstrate likely competences in cross-cultural cognizance and practice. It is vital they recognize the value of leadership and managerial potentials, and to grow and sustain effective leadership approaches and methods for abiding diversity management (Ulrich and Smallwood, 2012). The conjecture emerges is that successful and effective international leaders and managers holds key to solve the secret of working with diverse workforce and dealing with them for the purpose of organizational development in order to enhance competitiveness.
Firstly, learning may influence work attitudes and ethics. For instance, work commitment and ethics are the backbones of a particular culture.
As organizations become increasingly global, the success of organizations is dependent on the leader’s skills in merging diverse cultures in building high performance teams across multiple countries. Global organizations are required to adapt to continuous changes in culturally diverse global business environment. Multinational leaders must become adapt to leading a culturally diverse workforce if the organization is to become transcontinental. Therefore, there must be an emphasis on diversity training and cultural sensitivity training across the organization, especially among members of executive leadership. Inclusive leadership has been presented as the most applicable global leadership style as businesses make the transition from a local to global mindset. This synopsis will discuss integrating varied perspective, negotiating strategies and cultural mindsets, and communicating methods that facilitate organizational strategy, This document will conclude with a summarization of this discussion.
Leaders who understand how to work with a diverse groups of individuals will reap the benefits of building relationships with global companies that can lead to outsourcing resources that can aid in greater profit margins (McFarlin, 2016). Leaders who understand the people benefit of globalization will want a divers business culture for it attracts motivated, creative, insightful, adaptable, resilient group of people. (Maddux, Galinsky, 2013). Leaders who can make globalization work in their favor will have a huge competitive advantage by gaining insight into different market cultures from a management and market point of view (McFarlin,
Coca Cola is an international organization which is operating in more than 400 countries. It deals in the beverage industry and is leading the industry for years. Coca Cola is a competing brand, which has made its place in the market competing against several brands. Coca Cola is considered as the leading brand and is ranked as number 1 international brand, according to the ranking of 2011. Coca Cola deal in the beverage industry and provides people with several products. It is a well-known name and people all around the world knows about it. Headquarters of Coca Cola is in Atlanta, and the company has been operating for more than 126 years (Wise and Baumgartner, 1999). In 1886, the company was formed and since then it has been serving millions of people around the globe. Coca Cola is the lead brand of Coca Cola Company, which is the greatest reason of its recognition. Despite many competitors like Pepsi Co, the company has been able to maintain its position in the
Globalization has brought the world closer in communication, economics, politics, and especially business. The Internet and technological improvements have allowed instantaneous communication almost anywhere, and even poor women in India are using Smartphones to manage their banking portfolios. The idea of globalism continues to break down cultural barriers. As this continues it will be essential for organizations to not only understand, but embrace cultural differences and styles (Trebing and Estabrooks, 2005). Clearly, the changing demands of global stakeholders require new ways of approaching divergent customer bases. There are differences in style, skill, education and attitude in every organization now accentuated when we think of the multi-national organization. Correctly managed, this diversity can be a huge bonus to the organization. Organizations are far more effective once they understand and use diversity within their strategic and tactical planning process. Also, the new paradigm for global management includes creating and maintaining a diverse work environment in which cultural diversity is encourage and celebrated, rather than simply acknowledged (We need to identify and understand how our differences impact our relationships with other employees and customers. We also must create and maintain an inclusive work
The world is growing smaller in a way that has increases the ability for organizations to expand globally. As organizations seek to expand globally, they must develop and implement a cultural mindset among a diverse global group of employees. Global organizations must seek out integrating perspectives that will lead to success, develop negotiation strategies to craft a common cultural mindset and communicate effectively over a diverse group of employees.
of global strategy: the company’s mission, vision and identity, brand strategies, and communications. Drawing upon Geert Hofstede’s
Organization wants to achieve the objectives of sustained growth and increased profitability, organization must constant innovation its product or service, also need to carry out some plans to expand its business to enable an organization to have a better development. Organization expands its business cannot be confined to the domestic market must also move abroad, which effectively allows an organization closer to the global market and broadening the scope of business and profitability. However, business expansion is not as easy in this global environment, globalization has not only changed the enterprise competitive landscape also influence the way leaders conduct business (Caligiuri, 2006). Furthermore, with globalization, global leadership in terms of cultural knowledge needed to become more acute and require more advanced level of cognitive ability on the complexity of managing the demand of multiple cultures while completing managerial tasks (Caligiuri, 2006, Grosse, 2011). Therefore, the development of global management skills is very important for the global organizations and managers. Only effective in developing global management skills can help the organization reduce the risk of international business
Both the authors have taken descriptive approach to elaborate in detail their respective areas of cross cultural management. As per article, “Rethinking Cross Cultural Management in a Globalizing Business World” by Soderberg & Holden (2002), due to globalisation and its increasing trend, the organisations and its environment has gone through significant changes. Thus the traditional way of defining the cross cultural management needs amendments. Further the author has elaborated that in this commitment the authors are contending for a split far from the conventional method for considering and portraying diverse administration for two fundamental reasons. To begin with, the winning idea of society as-substance, which in this logical connection is vigorously connected with national societies (and, by augmentation, country states) is distant with the hypothetical improvements of conceptualization of society and character. Moreover a conceptualization of hierarchical and national society’s too characterized and homogeneous substances is out of stage with the new economy, with its accentuation on systems administration, hierarchical learning and information as the fundamental hierarchical asset, which rises above firm, industry, and national limits. Second, the new economy requires not simply new skills and 'worldwide education but also needs to adopt 'the worldwide attitude'. A globalizing business world too needs suitable calculated apparatuses and expository methodologies of advantage to both analysts besides, specialists. Consequently the article “Cross cultural Differences in Management” by Amman & Jordan (2012) has concluded that due to cross cultural environments, the managers can encounter different impact on different areas of management. These impacts can create many limitations and barriers on different areas of business. Therefore, managers of the
the skill sets and aptitudes to manage in global organizations. These skills include the culture, the