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Coca-Cola's Global-Local Strategy

Coca-Cola is the world's largest beverage company operating in over 200 countries. It generates 80% of its income from international markets and follows a philosophy of "Think Globally, Act Locally" by giving national divisions freedom to operate locally while maintaining a common mindset. Coca-Cola manages its global operations through 25 divisions and achieves internal alignment through a common HR philosophy and external alignment by understanding local industries. It staffs operations with local employees and uses expatriates when needed to fill skills gaps or improve skills. Coca-Cola has localized in countries like India by introducing smaller, affordable bottle sizes and advertising in local languages featuring celebrities and food combos.

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590 views14 pages

Coca-Cola's Global-Local Strategy

Coca-Cola is the world's largest beverage company operating in over 200 countries. It generates 80% of its income from international markets and follows a philosophy of "Think Globally, Act Locally" by giving national divisions freedom to operate locally while maintaining a common mindset. Coca-Cola manages its global operations through 25 divisions and achieves internal alignment through a common HR philosophy and external alignment by understanding local industries. It staffs operations with local employees and uses expatriates when needed to fill skills gaps or improve skills. Coca-Cola has localized in countries like India by introducing smaller, affordable bottle sizes and advertising in local languages featuring celebrities and food combos.

Uploaded by

apoorvaprasanna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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 cocacola.co.za


(South Africa), coca-cola.com.cn (China), coca-cola.de
(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

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