Colgate- Palmolive Case Study

Managing International Careers

-Shraddha Kolte (19)

-Kanishk Pathak (26)
-Prachi Patil (27)
-Dipendra Rele (31)
-Meetali Welinkar (119)
 FLASHBACK
• 1857 - "Colgate & Company" formed by Samuel Colgate
• 1928 - Palmolive-Peet bought Colgate to form Colgate-
Palmolive - Peet Company
• 1961 – C-P’s spread over 85 countries and 53% of
revenues was overseas
• 1983 – Developed International Assignment Policy (IAP)
• 1993 – 66% of revenue from international sales
• 2009 – Sales over 15 Bn$ from 200 countries
majority from international sales
 Why international assignment?
• Rapidly changing international business environment

• Expansion of the C-P to become a global company

• Developing an international cadre of executive managers

to rise above ethnocentric perspective

• Competitors like P&G, GE started training programs for

international assignments
Need for International Assignment
Policy
• Major Business from international sales

• International experience essential for entering Top Cadre

• No formal expatriate policy

• No Help in housing, child education, etc.

• Difficulty in habituating to local conditions

• Difference in the cost of living

• Unavailability of single pension policy

 International Assignment Policy
• Objective-intended to be progressive, comprehensive, and sensitive to employee and family
needs.
• Structure
– Before acceptance
• 5 days trip to assignment location, expense by company
– After acceptance
• Manager and his/her spouse offered language course, expense by company
• Medical examination for entire family
• Reimbursed the cost of private school tuition for children age 4-19
• Annual home leave
• Similar level of disposable income as their counterpart at the corporate headquarter
• Helps to achieve financial parity
– Goods and service allowance
– Housing supplements
– Tax equalization program
• 1992 Two new program
– The spouse Assistance Program
– Orientation program
 International Assignment Policy
Benefits employee
• Important step in pursuing global career
• Increased income level
• Family benefits

Benefits to company
• Key role in continual development of global market
• Employee getting global perspective
• Developing global strategies
• Assessing opportunities and risk around the world
• Knowledge sharing among the countries
• Local responsiveness
 Selection & Training
• Screening Criterion:
– M.B.A. degree from an American university
– Speaks at least one foreign language
– Has lived outside the U.S.
– Strong computer skills and prior business experience
• Training:
– 24 months training program
– Additional language instruction
– International business trips
– Exposure to global business development secrets like
revamping an existing one in various foreign markets
• No initial postings to native countries
 Concerns with the International Assignment Policy

 Company Concerns :
 High cost (150% to 400% of domestic employee)

 High admin overheads (5 additional FT employees were needed)

 Time consuming

 Employee Concerns :
 Inadequate orientation process

 Differences with the host nation w.r.t. religion, social practices, language, health, &
safety
 Dissatisfied spouses w.r.t. employment eligibility & suitability

 Loss of income
 Spouse Assistance Program
• First of kind a US MNC introduced a ‘Spouse Assistance Program’
in 1992

• Objective: Reduce rejections of international assignments by the

potential candidates due to dual career issue

• Features:
– Orientation program
– Assist to obtain work permit using external/internal sources,
– Networking assistance and provide referrals to MNC
– Reimbursement Account : One time payment of $ 7,500
– Tuition reimbursement

• Issues:
– Spouses were professionals with high paying careers
– $ 7,500 could hardly compensate for the lost income