Strategic Resources Management: A case study of Coca Cola Company PDF

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Strategic Resource Mng Fahad Umar Abstract: The paper as titled strategic resource management focuses on four main aspects, which include human resource management, management of physical resource marketing and information system respectively. An explicit analysis of the four key areas of resource m...

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Strategic Resource Mng Fahad Umar Abstract: The paper as titled strategic resource management focuses on four main aspects, which include human resource management, management of physical resource marketing and information system respectively. An explicit analysis of the four key areas of resource management was conducted, as to how it is applicable in Coca-Cola Company,

Stratford Collage of Business and Management UK

Table of Contents Abstract........................................................................... Error! Bookmark not defined. Introduction..................................................................................................................3 Role of HRM in Coca-Cola Company........................................................................4 Recruitment and retention strategy of Coca-Cola Company ..................................5 Recruitment processes in Coca-Cola..........................................................................6 Techniques used to develop employee in Coca-Cola Company...............................7 Contribution of techniques to employee engagement...............................................8 Stakeholder’s analysis .................................................................................................9 Organisational objectives and physical resources required...................................10 Physical resources in Coca-Cola Company .............................................................11 How marketing activities contributes to achieve organisational objectives .........13 Marketing operations ................................................................................................14 Processes used in developing market .......................................................................16 Information System Management ............................................................................17 Conclusion and recommendations ............................... Error! Bookmark not defined. Reference ....................................................................................................................19

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Strategic Resource Management3 Introduction As reported by United State security and exchange Commission (2006) Coca-cola Company is a global multinational beverage company with one of the best brand all over the world. The company produces wide range of non-alcoholic beverages, which are sold in over 200 countries. The chain of production of Coca-Cola products has to do with the company producing concentrate and distributing it to its bottling companies for final production and distribution to final consumers, the bottling companies usually sale the product to retail stores, vending machines and individuals directly in some cases. The company’s objective is to bring a global beverage brand that will quench people’s beverage desire, to foster the best customers and suppliers network and to create a mutual and durable value. Aside form the upper mentioned few objectives of the company it’s also an objective of the company to gain customers loyalty, increase unit sale and charge a premium. Marketing objective will as well be positive to be included in the overall company’s objective, sum of which includes increasing awareness of product, increasing market share value, enduring competitors and increasing global Coca-Cola enterprise size. Managing the most important asset of the company will eventually help and foster the company to achieve its underline objectives; the company has total staff strength of about 700,000 operating across the world. Effective management of Human capital of such number will ensure productivity and will enhance the market share value likewise it will reinforce the company against its competitors, which are some of its objectives.

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Role of HRM in Coca-Cola Company Human Resource Management is a very important aspect of development in every organisation, creating this management department is considered to be the first to the development and success of the company. Especially for a global multinational company like the Coca-Cola Company, it’s the people factor that creates such a global company, and for it being a global company it is almost impossible to have a global unify policies and regulations for all its branches over the world. The divers cultural, political and economical differences most be address, human resource management play a vital role in dealing with such divers differences in it proceedings for

recruitment,

performance

management,

career

development,

employee

management, succession planning to mention few. As asserted by the company’s site (http://www.coca-cola.com/recruitment/) Human Resource Management of the company focused on recruiting and retaining the best heads so as to maintain its topmost position in the competitive beverage market in the whole world. The HR is responsible in placing policies, regulations, practices and guidelines to ensure the company has the right employee at the right place so as to achieve the overall company’s goals and objectives. Some of their duties include employee recruiting, employee retention, employee development, succession planning, working environment, compensation, benefits as well as career mobility. On this the HR are on constant consultation with operating managers on issues relating to recruitment needs, existing gaps and how to close them up. The HR always strive to convince the management in providing the company’s employee with a favourable environment that foster sense of unity among them so that they can conduct their duties effectively as an individual and as a team. Furthermore, the Coca-Cola Company values its employee as its best asset. 4

Strategic Resource Management5

Recruitment and retention strategy of Coca-Cola Company The coca-cola company is a multi-local enterprise for the reason being a global company that operate in over 200 countries across the world. The company operate globally to fit in the local needs, rules, regulations, laws and culture. This is the reason the company employ many local staffs to operate in their locals. According to the Director Human Resource Coca-cola Northwest Europeans division the company strive to limit international employees on field and focus on involving the locals because the locals are more well equipped to carry out operations at their localities. Nevertheless, the need for expertise is still important for two good reasons. First is to fill the need for any specific skills that might not be available in the location. A clear example is when the company set up a new operations in some Eastern European countries, there was need for a well experience financial manager which the company had to provide form Chicago. Second reason is for employee development, there are some top positions that required international expertise. The Coca-Cola Company recruits about 700,000 staffs in around 200 countries and still maintain a strong commitment of ensuring equal opportunities is being given to all employees as well as valuing their diversity. The Coca-Cola Company also try its best in maintaining a good working environment free of discrimination and harassment of any kind. The company values its employee as its best and most valuable asset. The retention strategy here has to do with the benefits employee drive form working in the company, over the past century employee of this company have been working with unfailing set of values to help the company in achieving its goals and objectives.

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Maintaining those employee values will always be a priority of the company as it’s vital for its long term success. Coca-Cola Company provides its employee with a satisfactory wages and salaries aside from the basic amenities and facilities they are being provided with and the company embraces its employee development strategy by making their dreams come true in the sense that, the company are involved in some many innovative programs that encourage and support employee to do better. This policy of valuing its employee as its best asset seem to be in other words the retention strategy being used to motivate and hold employee within the company.

Recruitment processes in Coca-Cola The recruitment processes of Coca-cola Company is very well organise starting from ads which is usually given in either company’s website of international newspapers, the main sequential recruitment processes start immediately when interested qualified candidate apply with their CV’s and credentials, this will be examine below. Selection process: The selection processes differs with the nature of the job candidate applied for, although the company uses a sequence series of Interview, Group exercises, presentations, Psychometric exam and Situational exams. The interview is being conducted in a way so the applicant can reveal more his/her potentials and to test his/her abilities in handling different situational problems. It is expected of an applicant to be honest and logical in answering those questions, the group excises is basically more of a team work. The company uses the group exercise to rate how an effective team member could an applicant be and to know the level of applicant communication skills while the presentation excises is being used by the

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Strategic Resource Management7 company to find out how confidence an applicant is as well as how effectively he/she can address a good number of people. Furthermore, the psychometric test is designed to test applicant abilities and potentials in some occasions the company uses a personality tool to find some certain things on the applicant. Lastly is the situational exercise which is designed to test applicants reactions to different types of situations, in this regards applicant are being exposed to different kinds of situations and are being observe on how they react, this will determine the kind of positions they are suited for.

Techniques used to develop employee in Coca-Cola Company The Coca-Cola Company as mentioned earlier value its employee as its best and most important assets, this is why the company the company develop and reward them with a favourable working environment where they can excel in their various performance, develop their professional skills and finally help them in achieving their career goal. As a valued member of the company, the company is committed in supporting, developing and growing its employees to achieve their various potentials by enhancing employee performance through learning’s, trainings and career development. The performance of employees is being monitored using a form called the IPO (Individual Performance Objectives), employee are being reviewed using this form at mid-year and end of year performance check and performance appraisal respectively which are letter joined up to determine the total business objectives. Meanwhile, as part of the company’s culture, the performance outlook will be

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properly communicated to the employee and will make an impact in the company’s reward philosophy. The Company operate under combined structured learning system, coaching, trainings and feedback. This is also to ensure that employees are capable enough to discharge their duties in customer relations as well as career goals, the company operate a philosophy known as 70 20 10 philosophy. The philosophy signifies that 70% of employee development comes about from Job, 20% from coaching and feedback and 10% from formal learning and development. At Coca-Cola Company a career is considered to be a journey through which employee progress with roles and regulations set within the company, progression not just about getting promotion but about building experience and capability. inside the Coca-Cola Company, the progression could be through building skills and acquaintance within employee’s role that will broadening employee’s chance into the next level.

Contribution of techniques to employee engagement According to Cole (2006) Effective Strategies an HRM department must used to support the achievement of organisational strategy to help the Company in achieving its goals and objectives. These employees also represent the company in their various environments as Coca-Cola ambassadors where ever they are. The company treats it employees fairly and respectively on every issue with respect to the company’s values. As one of its objective is to create good and supporting working environments that are as diverse as the operation centres across the world.

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Strategic Resource Management9 Coca-Cola Company has one of the best benefits and compensation package all over the world, high performing employees and a well setup benchmarked among all competitors. The company provide its employee with multiple development opportunities, which includes learning and development programs, coca-cola university and other training rendered as well. Creating frequent dialogue with different employees around the world, this is to foster open communication, cycle of ideas and to encourage teamwork. At such dialogues the company gain some vital information’s on how to strengthen its business strategies, increase its awareness and implore avenue to share success and new opportunities. Example of such is the 2008 Beijing Olympic which the company organised to promotes its products, this was the idea the company’s employees and bottling partners.

Stakeholder’s analysis As shown in the Coca–Cola Company’s report (2006) stakeholder is an individual or the organisation whose action could be positively or negatively impacted by or collide with the interest of the company’s government. These are classified into primary, secondary stakeholders and key stakeholders. Primary stakeholders are those affected by company’s actions either positively of negatively while secondary stakeholders is considered to be intermediaries, individuals or companies working for the mother company that will directly or indirectly be affected by the mother company’s actions. Likewise, the key stakeholders are individuals or companies that have a substantial influence within the mother company.

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Stakeholder analysis is the key part of the stakeholder management. The Coca-Cola’s stakeholder’s analysis is best positioned in it conflict resolution, in the business administration and in it project management. This processes helped in identifying the individuals, teams or groups capable enough to impact on the company’s business plan. This is what the Coca-Cola Company uses to identify what interests the company on how to assess the different types of stakeholders, the company will reflect this assessment on its project plan, its programs, policies and other actions.

Organisational objectives and physical resources required The Coca-Cola Company report (2006) also suggested that the major objective of the company is to use its strong assets, which include brands, distribution system, customer loyalty, global reach, employee commitment and financial strength in achieving organisational long-team goals. S/N Objectives 1

To

bring

Physical resources involve a

global The company owns coca-cola enterprises, which is

beverage brand

the largest non-alcoholic bottlers in the world, functioning in 8 countries. Aside from the upper

2

To

foster

the

best mentioned

customers and suppliers Company network

bottling

company,

has

strong

a

the

Coca-Cola

relationship

with

independently owned bottlers, invested bottlers and owned bottlers which the have no control over, the one they have interest but no control over and the one they have ownership of respectively.

3

To

gain

customers The Coca-Cola Company uses its name, taste and

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Strategic Resource Management11 loyalty

image to gain its customers loyalty. A lot munber of local and international competitors have tried to copy the taste and packaging of their products similar to Coke unfortunately non of them avail

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To increase unit sale

The company invested heavily in marketing to support and promote its brands, investing in marketing

will

significantly

foster

customer

awareness as well as consumer preference. This will enhance growth per capital consume, market share value and total growth in volume

Physical resources in Coca-Cola Company ElAmin (2007) It’s very important to manage the physical as well as the technological resources of any given organisation. In Coca-Cola company physical and technological resources include; buildings, machineries, museums and education centres, maintenance and safety of premises, drawings, warehouses, designs to mention few. These are crucial for the Company to function well, specific buildings for work to be executed and efficient safety and maintenance precautions for effective machinery and plant work. The Company’s buildings are built in a standard and professional design with modern smart looking finishing and very presentable. The company’s headquarter is located in United State of America, in Atlanta city with many branches across the world, considered as the most diverse beverage brand collection in the world.

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In the United State of America, the company’s brand collections are harmonized by the Barq’s root beer, Nestea, Citra, Cherry Coke, Fruitopia, Minute Maid Soda and Dasani. Likewise in china, the company sell what is known as Tian Yu Di meaning Teas, Water and Juice. In Japan Mori no Mizudayori meaning mineral water, in Spain SONFIL meaning juice blend, in Brazil Kuat meaning guarana soft drinks in addition to this there are many of different local beverages. Adding Schweppes product to its collection yield the company to about 36 new brands in more than 160 countries across the world. Bottlers Coca-Cola Enterprise is one of the largest bottling company in the world operating in 8 different countries, which is fully owned by The Coca-Cola Company. Aside from Coca-Cola Enterprise, the company has a strong relationship with three different categories of bottling companies, first it the independent bottling company the one that the company has zero ownership of, the second category of it is the one in which the coca-cola company has interest in due to its investment in it and lastly is the one owned by coca-cola company thereby having an ownership. The bottling partners help the company in distributing their products across every continent around the world, this is very important to the company as it is gaining competitive advantage over its competitors and promoting its products as well. Investments and acquisitions In the year 1997 to 1998 the company’s investments and acquisitions activities sum up to $1.1 and $1.4 billion USD respectively and in the year 1999 it sum up to $1.9 billion USD with the acquisition of Schweppes Plc in 160 countries.

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Strategic Resource Management13 In order to meet up company’s long-term objective, the company invested heavily in marketing to support and promote its brands, investing in marketing will significantly foster customer awareness as well as consumer preference. This will enhance growth per capital consume, market share value and total growth in volume.

How marketing activities contributes to achieve organisational objectives A recent polled company’s site (http://www.coca-cola.cpm/marketing/) mentioned that the company produces more than 500 different brands of non-alcoholic soft drinks in over 200 countries over the world and providing over 1.6 billion daily. The company’s target market is not restricted to gend...