Table of contents

I. Summary ........................................................................................................ 2
1. Company overview ..................................................................................... 2
2. Business operation ...................................................................................... 2
II. PESTLE analysis ........................................................................................ 3
1. Theory ......................................................................................................... 3
2. Analyze PESTLE model ............................................................................ 3
3. The Most Impact Factor ............................................................................ 6
III. International compensation....................................................................... 6
1. Theory ......................................................................................................... 6
2. International compensation at Coca Cola ............................................... 7
3. General issues ............................................................................................. 7
4. Specific issue ............................................................................................... 8
IV. Recruitment and selection ......................................................................... 8
1. Theory ......................................................................................................... 8
2. Recruitment and selection at Coca Cola .................................................. 9
3. General issues ........................................................................................... 11
V. Training and development .......................................................................... 12
1. Theory ....................................................................................................... 12
2. Training and development at Coca Cola ............................................... 13
3. General issues ........................................................................................... 14
4. Specific issue ............................................................................................. 15
VI. Recommendation ...................................................................................... 15
VII. Conclusion ................................................................................................. 17
VIII. REFERENCE ........................................................................................ 17
Contribution........................................................................................................ 19

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I. Summary

1. Company overview

The Coca-Cola Company, American corporation founded in 1892 and today

engaged primarily in the manufacture and sale of syrup and concentrate for Coca-
Cola, a sweetened carbonated beverage that is a cultural institution in the United
States and a global symbol of American tastes. The company also produces and
sells other soft drinks and citrus beverages. With more than 2,800 products
available in more than 200 countries, Coca-Cola is the largest beverage
manufacturer and distributor in the world and one of the largest corporations in the
United States. Headquarters are in Atlanta, Georgia.

The Coca-Cola Company’s operational structure includes four geographic

operating segments: Europe, Middle East & Africa; Latin America; North
America; and Asia Pacific. The company reporting structure also includes the non-
geographic segments of Global Ventures and Bottling Investments Group (BIG).

2. Business operation

The Coca-Cola Company manufactures, markets, and sells certain beverage

concentrates, syrups, and finished beverages to authorized bottling partners.
Depending on the product, our bottling partners combine the concentrates with
sweeteners, still water, and/or sparkling water, to prepare, package, sell, and
distribute finished beverages.

Coca-Cola is ranked number 1 as the global provider of their non-alcoholic

beverages. These beverages consist of, but are not limited too, Coca-Cola, Sprite,
Fanta, Dasani, Simply orange, PowerAde, and Vitamin water. The Coca-Cola
Company’s main competitors consist of PepsiCo, Dr Pepper Snapple Group, and

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Groupe Danone Water Division. The company’s main focus is the soft drink
industry, resulting in most of the company’s revenue.

II. PESTLE analysis

1. Theory

PESTLE analysis is a framework of macro-environmental elements utilized in the

strategic management process of environmental scanning. When doing a strategic
analysis or market research, it is a component of an external analysis that provides
an overview of the many macro-environmental aspects to be taken into account. It
is a strategic instrument for determining market expansion or contraction, company
position, potential, and operational direction.

2. Analyze PESTLE model

a. Political factor

Political factors can directly affect the business conditions of a corporation. If a

country's political status isn't stable, the company may suffer a loss despite
investing a good amount of money and time.

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Here are some political conditions that can affect the business of Coca-Cola:

Changes in taxation, labor laws, and employment conditions can affect the sales of
Coca-Cola.

There are also conditions where the government favors the business of a company
and subsidizes it.

The trade relations of other countries with the US can impact the business of Coca-
Cola in those countries. For instance, thanks to the trade relations between Burma
and the US, Coca-Cola cannot sell its product in Burma.

Manufactures, markets, and sells certain beverage concentrates, syrups, and

finished beverages to authorized bottling partners.

b. Economic Factors:

Most companies are hooked into the nation's economic conditions to determine
how much they should invest in the country.

As a beverage company, Coca-Cola has already earned a customer base. Other

competitors can start their businesses with similar carbonated drinks. However, the
loyal customer base may help the company survive in the competitive market.

The revenue of Coca-Cola is primarily (70%) tied to countries outside the US. The
market conditions of those countries can have an impact on the development of the
country.

Besides,the cost of the raw materials for the beverages and the trade conditions
with the suppliers can affect their business.

c. Social Factors

When a corporation does business in a particular area, its socio-cultural condition

significantly impacts the corporation. Here are some sociological scenarios that
can work toward the development of Coca-Cola:

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Coca-Cola primarily sells carbonated sugary beverages. As more consumers lean
towards healthy alternatives, the shortage of them from the brand can result in a
fall in their revenue generation. However, the firm must have more products like
Coke Zero, which may target health-conscious customers.

Coca-Cola must consider the tastes of the countries in which it has expanded its
operations.

Coca-Cola is one of the most well-known brands, and it is the mastermind behind
many marketing campaigns. They need to concentrate on several social conditions
while branding and campaigning.

d. Technological Factors

Though technological issues don't directly impact the growth of beverage brands,
there are certain other conditions associated with technology that can indirectly
affect them.

Technological development has also increased the number of smartphone users.

The corporate sector can use social networking sites for promotion and marketing,
which may help them strengthen their brand recognition.

They can also use online polls to conduct market research on new products and
customer preferences, as well as to solicit feedback on their services. It can
decrease their costs of research and merchandise development.

e. Ecological Factors

For beverage companies, ecological issues may have a brand awareness-related

impact.

The company needs to consider more eco-friendly packaging options. They will
replace their plastic bottle with other easily recyclable materials.

The company can use advanced technology for waste management, which can help
the company strengthen its brand image or raise awareness by launching creative
campaigns or donating to environmental causes.
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The company has been using water-smart farming methods like RAIN and CARE.
It's helped them to attract people who are concerned about the environment.

Legal Factors

Here are some legal conditions that will indirectly influence the brand’s
development:

The use of sugar in beverages has previously been regulated in a number of nations.
They must take it into account given the variety of services offered by Coca-Cola.

Many countries set a defined amount of caffeine in every beverage. Due to its high
caffeine level, Coca-Cola has already paid for the cases and suffered as a result.

The company must value employment ethics and consider labor conditions. If they
provide fewer wages to the laborers and do not provide healthy working conditions,
they'll face legal issues.

3. The Most Impact Factor

Due to shifting consumer preferences, societal variables currently have the most
effects on Coca-Cola. As consumers grow more health conscious, they consume
less carbonated beverages and other beverages with high sugar, calorie, and fat
content. Given that Coca-Cola serves primarily carbonated beverages, this poses
the greatest threat to the company.

III. International compensation

1. Theory

There are primarily four theories for international compensation propagated. Those
include-

• Contingency theory - Expatriate compensation to be based on particular

contingencies or situations prevailing in the host country

• Resource based theory - MNC should pay well to attract and train competent
people who contribute to its competitive advantage
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• Agency Theory - Focuses on the divergent interest and goals of an organization's
stakeholder and the way that employee compensation can be used to align the
interests and goals

• Equity Theory Believes that there should be an equal balance between what the
expatriate contributes and what he receives as a compensation

2. International compensation at Coca Cola

Support the implementation of different compensation projects (i.e. market

benchmarking) by providing data and implementing adjustments.

· Perform due diligence in order to identify opportunities or concerns with ongoing

plan administration, including monitoring vendor performance against SLAs.

· Review and consult on compensation package offers for new hires, promotions,
lateral moves respecting internal and external equity.

· Provide detailed, constructive impact analysis of proposed plan and legislative

changes from legal, administrative, participant and other resources through in-
depth research, monitor changes and development in labor codes/legislation, and
inform the Center of Expertise accordingly.

· Responsible for successful implementation of annual rewards management cycle

(including but not limited to training managers, supporting them on the
recommendations, ensuring accurate rewards statements), off-cycle compensation
process and implementation of global and local bonus plans; responsible for
delivering compensation training (either virtual or in-class) to managers and
associates per the need.

3. General issues

Given that Coca-Cola is a multinational corporation that must make compensation

payments all over the world, they face numerous difficult challenges. In particular,
the compensation program does not ensure that expatriates, host and third-country
nationals are treated fairly: expatriates may miss out on opportunities and

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promotions. Furthermore, requiring equal treatment on the total remuneration
package is difficult. The program is not competitive enough to attract, motivate,
and retain qualified personnel: due to local competition and personal issues,
employees and managers do not always accept international assignments.
Uncertainty about the value of international assignments: in fact, international
assignments are undervalued in their home country.

4. Specific issue

The Coca- Cola company has made a specific issue of unequal base salary between
home and foreign countries.

Coca-Cola is truly a global company that follows the regional base salary methods.
As a results, the difference in living standards between a country with the average
of region could lead to the unsatisfied with amount.

Therefore, employees feel a lack of respect and equality in payroll, then they would
not do international assignments. Subsequently, Coca-Cola may face the lack of
control and control quality overseas, that could lead to decrease in their global
business.

IV. Recruitment and selection

1. Theory

The continual process of locating, choosing, assessing, and establishing a working

rapport with present or potential employees is referred to as staffing. Manpower
needs, hiring, placement, training, career development, promotion, transfer,
assessment, and pay decision are among the ten components of staffing.
Recruitment and selection will be the main topics of this section.

Recruitment is the process of seeking for and acquiring qualified potential

employees so that an organization can choose the best individuals to fill open
positions.

The act of selecting people for positions involves obtaining data for evaluation and
decision-making reasons.
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 2. Recruitment and selection at Coca Cola
a. Staffing, recruitment, and selection

The Coca-Cola Company has a geocentric personnel style, which is one of the
things that makes them successful. At first, Coca-Cola encountered numerous
issues as a result of the various cultural variances present across all levels of
personnel. They acknowledged these challenges, however, and stated that they
would "handle cultural differences through organization design by creating a
variety of flexible structures and partnerships that can complement different
markets and through staffing by valuing international assignments and giving our
best people exposure to different cultures and ways of conducting business."

Here are some features that connect to Coca-hiring Cola's process: sources,
types,...There are 2 main types of recruitment in The Coca-Cola Company: Internal
recruiting and External recruiting. With internal recruiting, the company will fill
the vacancies by seeking suitable applicants among those who are currently
employed. This helps reduce the training time, boost the process faster and
motivate employees. With external recruiting, the company will seek applicants
outside the organization externally. Therefore, the workplace culture may be
diversified and facilities are improved. Coca-Cola uses many recruitment sources
such as Media Advertisement, E-recruitment, Employment agencies, Executive
search firms, Special events recruiting, College Recruiting, Summer-internships,
but their major source is E-Recruiting.

About selection at Coca-Cola, the company has high required quality and
standards of recruitment which can be divided into 2 considerations:

• Person-job fit: job analysis identifies required individual competencies for

job success.
• Person-organization fit: the degree to which individuals are matched to the
culture and values of the organization.
b. Application process

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Normally, when applying for Coca Cola, you must go through at least 5 rounds:

Round 1: Application form

You need to apply to Coca Cola through the online application page at the website.
If you want to pass the round when you have to compete with thousands of
candidates, your resume needs to be concise, impressive, and simple to win
sympathy from the application reviewer at Coca Cola.

Round 2: Online testing

This is the capacity test round through the online test after you have been passed
through the first round. In this round, you need to show your logical thinking as
well as your extensive knowledge through how to answer tests given by Coca Cola.

Round 3: Preliminary interview

This is the round that will take place about 2 weeks after Round 2 ends and you
will participate in a preliminary interview at Coca Cola. This is the round where
you need to show your strengths as well as share your own strengths that can
impress employers at Coca Cola.

Round 4: Solving actual business case

This is a comprehensive evaluation round after you passed the preliminary

interview at Coca Cola. In this round, the Coca Cola employer will give you the
actual situations that happened or are assumed to happen, in the process of working
through which to consider your reflexes as well as problem solving skills.

Round 5: Final interview

The final interview round decides whether you should be listed on the Coca Cola
employee list. In this round, you might be lucky to get the chance to meet face-to-
face and receive comments from the senior management of Coca Cola.

c. How does Coca-Cola evaluate candidates?

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There are 3 main ways that Coca-Cola uses to evaluate their candidates:

• Checking information: Coca-Cola checks the reliability and validity of

candidate’s information through background investigation.
• Testing ability: Coca cola conducts various tests to qualify candidates,
including knowledge and skill testing, health testing, and behavior testing.
• Interviewing: Coca cola uses interviewing for final evaluation, then makes
the decision of selecting or not.
3. General issues

The following are some of the challenges that a multinational corporation, such as
the Coca-Cola Company, typically encounters when beginning operations in
another country, according to Rosenfeld et al. (1999):

• Lack of knowledge about local operating

• Lack of local personnel incentives
• Difficulties in recruiting people with high talent and experiences.
• High cost of transferring managers from the home country to foreign
country
• Many Expatriate failure
3.1. Specific issue

High employee turnover is a special problem for the Coca-Cola firm.

To look into this issue, Charan (2011) did a study to look into the reasons why
workers might leave Coca-Cola, and the findings are as follows:

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 • 36% of employees leave for higher paid job
• 24% leave for higher level of positions
• The remaining 40% consists of many different reasons such as: higher
study, work pressure, organizational culture.

Lower salary packages and less prospects for career progression have thus been
highlighted as the two main causes of Cocoa-high Cola's turnover rate.

Therefore, if the Coca-Cola Company does not properly analyze this issue, a high
number of employee resignations could lead to a shortage of low and middle level
workers, which would then indirectly damage the company's performance in the
near future.

V. Training and development

1. Theory

The aim of training is to enhance employees' existing work behaviors and skills.
The typical topics are: communications, computer skills, customer service,
diversity, ethics, human relations, quality initiatives, safety.

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Learning that is aimed at enhancing skills for a future position or job is called
development. The typical areas include training of employees, evaluation of
employee qualities, transfer of employees, promotion of employees.

Putting training and development into practice has several benefits, some of which
are: raising job satisfaction and morale, motivating employees, increasing
productivity, making money, embracing new technology and methods, innovation,
and lowering staff turnover.

Herman and Kurt (2009) argued that training and development are important
resources for people on their own, in groups, in organizations, and in society at
large.

2. Training and development at Coca Cola

Coca-Cola has used a variety of training methods throughout the years, however
there are certain general criteria that have been established recently:

Training objective:

Coca-Cola will identify areas that need to be improved if there is a discrepancy

between employee performance and corporate criteria and consumer expectations
(training objective).

Training needs assessment:

Coca-Cola evaluates current issues and upcoming difficulties based on the existing
demands. After that, it was made clear who in the company needed training and in
what capacities.

Planning a training program:

Coca-Cola will create a training schedule with the following specific information
included: timeframe, topic, trainers, trainees, and facilities required after
determining who and what needs to be trained.

Implementing the program:

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• There are 2 types of training programs: internal (taught by Coca-Cola workers)
and external (taught by someone outside of Coca-Cola).

• Methods: lectures, roleplays, videos, PowerPoint presentations, sessions, and e-

learning.

• Training topics include self-development training and work-development training

(organizational culture, designated working, etc). (personal finance management,
stress handling, basic etiquette, time management, negotiation skills, ...)

• The training program will aid in providing the necessary information and
qualified teachers in order to guarantee the success of training sessions.

• Fact: Coca-Cola allocates 0.4% of its net sales for worker training and
development.

Evaluation and follow-up:

Participants are provided feedback forms to provide evaluations and suggestions

once the training program is over. As a result, future training initiatives will be
enhanced.

3. General issues

With so many workers from different nations, races, and ethnic groups working for
Coca-Cola, training is a difficult task. Numerous training-related difficulties have
been discovered along the way, including:

Aggressive timetables: All levels of Coca-Cola employees, particularly talent

management, must endure intensive, short-term training programs in order to fulfill
quality standards. The constrained schedule might impair employee satisfaction
and lower corporate productivity.

Lack of uniform training: Because Coca-Cola has a geocentric strategy, its training
curriculum varies globally. There is complexity in the management process as a
result of some commonalities between nations.

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Demographically diverse audience: Coca-Cola employees represent a range of
demographic backgrounds, including area, nation, ethnicity, color, and religion.
Coca-Cola finds it challenging to determine whether training is appropriate for
each individual.

Controversial views: As a multinational corporation, Coca-Cola has to deal with a

variety of contentious topics, particularly those that touch on sensitive subjects like
the environment, racism, and ethnicity.

4. Specific issue

Recently, the Coca-Cola company faces a specific issue of Training in Racism

awareness.

Racism has been one of the most controversial problems in recent years. To ensure
the degree of understanding about race treatment among employees, Coca-Cola
decided to practice a training program in the E-learning platform. Although the
content of training course is about discouraging race discrimination, the way it
presents the lesson is controversial. In specific, at the end of the presentation video,
there is a slogan: “TRY TO BE LESS WHITE” with the idea that everyone should
not act like white people with negative behavior such as oppressive, arrogant.

Subsequently, society has made many criticisms of Coca-Cola because of raising

“reverse-racism”. In contrast, Coca-Cola said that the presentation video was
available in a study platform of Linked in therefore they had no link and
responsibility in this problem.

As a result, the brand image of Coca-Cola has been lowered and indirectly had
negative effects on business activities.

VI. Recommendation

Needs and expertise evaluation:

Once the Human Resource Department has established training goals and describes
the powers that users must take, the next step is to determine what skills they
15
already possess, and identify what needs are not met. The assessment of needs and
abilities of the audience is an important step in the process of developing effective
training. The interests of employees in measurement, the identification of the tasks
they need to implement and test their skills will help design a curriculum that meets
the needs and captures the interest of the organization.

Need evaluation:

The focus of a needs assessment is to gather information about what employees are
interested in learning, or the department needs to know to perform the activities
required of them.

Training:

At Coca cola on the job training is accustomed to the absolute importance. At

aboriginal a salesman is accustomed to advice about the product, sales ambiance
and aggregation behavior and procedures. Ethical behavior is emphasized best so
as not to actualize any array of bad habits which can account for abundant problems
for the company.

Organizing Seminars

Coca Cola additionally arranges some blazon of seminars, assignment shops and
modules accompanying the sales management, Forecasting of the circadian sales,
merchandising, affairs skills, authoritative techniques and added areas
accompanying the sales.

Coca cola's reward system must be highly functional to make employees more
loyal to organizational goals, values and standards. On the other hand it also
motivates the employees. And the reward management system should be in a group
task because the organizations are more tend toward group tasks rather than
individual performance. One of the important and appealing reasons is that it
requires interaction between groups and sharing of ideas which brings more
effectiveness and efficiency results in better outcomes for the company.

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VII. Conclusion

Conclusively, International HRM departments promote viable expatriation

provisions in the realms of recruitment, training, and evaluation of prospective
employees. This presentation focused on Coca-Cola Company discerning
recruitment and selection processes for expatriates. Concurrently, Coca-Cola
endeavors to improve its current selection and recruitment criteria using whole-
person assessment.

Whole-person assessment approach is an important consideration in selecting

workers for international duties. As indicated earlier, Coca-Cola Company has
been taken as a case study to demonstrate the aspects whole-person assessment
approach in selecting the right expatriates for foreign assignments. Without proper
selection and induction of expatriates, Coca-Cola might hardly achieve proper
implementation of its aims and objectives in a foreign country. A whole-person
method presented the most painstaking method of assessing the suitability of an
individual for foreign duties.

VIII. REFERENCE

Edrawsoft. 2021. 'Coca Cola SWOT Analysis | EdrawMax Online', PESTLE

Analysis, [online]. Available at: https://www.edrawmax.com/article/coca-cola-
swot-analysis.html (Accessed 10 November 2022).

Farooq, U., 2021. 'Pestle Analysis of Coca Cola | Marketing Tutor', Marketing
Tutor, [online]. Available at: https://www.marketingtutor.net/pestle-analysis-of-
coca-cola/ (Accessed 10 November 2022).

Frue, K., 2021. 'PESTLE Analysis of Coca Cola', PESTLE Analysis ,[online].
Available at: https://pestleanalysis.com/pestle-analysis-of-coca-cola/ (Accessed
10 November 2022).

Team, M., 2021. 'Coca Cola PESTLE Analysis | PESTEL Analysis of Coca Cola |
MBA Skool-Study.Learn.Share', MBA Skool-Study.Learn.Share ,[online].

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Available at: https://www.mbaskool.com/pestle-analysis/companies/18043-coca-
cola.html (Accessed 10 November 2022).

https://www.scielo.br/j/rae/a/sVDrrT7WPqZBRfwjtjdTqkd/?format=pdf&lang=e
n

Company, T.C.C. (no date) Compensation & Benefits Analyst - The Coca Cola
Company - Warsaw - WIZBII, Wizbii.com. Available at:
https://en.wizbii.com/company/the-coca-cola-company/job/compensation-
benefits-analyst-13 (Accessed: November 15, 2022).

4. The process of recruitment and selection at Coca-Cola, retrieved in:

https://d1wqtxts1xzle7.cloudfront.net/

Training and development at Coca-Cola, retrieved in:

(DOC) TRAINING & DEVELOPMENT COCACOLA HINDUSTAN

BEVERAGES HR | how-to do - Academia.edu

9. About the Coca - Cola company. Available at: https://investors.coca-

colacompany.com/about

10. Coca-Cola: International Human Resource Management. Available at:

https://studycorgi.com/coca-cola-international-human-resource-management/

11. Evaluating Human Resource Management within Coca Cola. Available at:
https://www.ukessays.com/essays/business/evaluating-human-resource-
management-within-coca-cola-business-essay.php

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Contribution

No. Name Sudent ID Work process

1 Nguyễn Đăng Hưng 20070204 100%

2 Phạm Hương Giang 19071343 100%

3 Đỗ Thị Huyên 19071174 100%

4 Hoàng Mai Linh 18071132 100%

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