University of Bedfordshire

Unit Title & Code: Intercultural Business Competencies MAR038-6

Assignment Number and Title: Assignment 2: Report
Assignment Type: Report
Course Instructor: Michael Evans & Codrin Chiru

Submitted By
Name : Md. Shaon Molla
Student ID : 1866650
Course : Intercultural Business Competencies
Program : International Business
Intake : March-2023

Submission Date: 15 September 2023

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ASSIGNMENT 2: REPORT ON INTERCULTURAL BUSINESS
PLAN OF THE COCA COLA COMPANY

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 Executive summary

The Coca-Cola Company, a worldwide soft drink manufacturer, has struggled with cross-
cultural challenges, especially following criticism of its "Try to be Less White" advertisement.
To solve these issues, the company must conduct thorough market research, create an inclusive
environment, teach employees on cultural sensitivity, and promote open communication. This
study offers a comprehensive analysis of cultural shock and its impacts on human behaviour
within the context of teamwork. The study will also, is to apply relevant intercultural theories
to explain the conflicting values, attitudes, and behaviours demonstrated by individuals from
various cultural backgrounds in the context of a joint endeavour. Balanced global marketing
efforts require both the maintenance of brand consistency and adaptation to local cultural
differences. These actions will enable The Coca-Cola Company to effectively handle cross
cultural challenges and thrive in a diverse global market.

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 Table of Contents
Introduction ................................................................................................................................ 5
Findings...................................................................................................................................... 6
Overview of the Coca-Cola Company ................................................................................... 6
Development of ideas in different countries .......................................................................... 8
International business growth strategy of Coca-Cola ............................................................ 9
Intercultural Issue for the Coca-Cola Company ................................................................... 13
Theoretical perspectives ....................................................................................................... 13
Intercultural Issue for The Coca-Cola Company ................................................................. 16
Challenges faced by the company ........................................................................................ 18
Conclusion ............................................................................................................................... 20
Recommendation .................................................................................................................. 20
References ................................................................................................................................ 22
Appendix .................................................................................................................................. 24

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Introduction

The purpose of this report is to describe the concept of cultural shock and the impact of this
shock on human behaviour. This study will focus on Coca-Cola to evaluate the divergent
values, attitudes and behaviour reflect by the people who involve with the company from
different cultural background. It will give details discussion on multicultural theories which
might be used to explain these differences. Coca-Cola, A global company with a presence in
more than 200 countries, is a great place to investigate the cross-cultural circumstance and the
intercultural theories. Due to the company's diverse workforce and its interactions with
customers and other interested parties that come from different cultural backgrounds, there is
a high chance to cultural conflicts, misunderstandings, and miscommunications. The purpose
of the report is to provide the knowledge and skills for the company and its people need to
manage the cross-cultural challenges, and it will accomplish by analysing the difficulties of
cultural shock and implementing the relevant intercultural theories.

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 Findings
Overview of the company

Figure 1: Brands of Coca Cola Company

(Source: Coca-Cola, 2023)

Coca-Cola is a most famous American multinational soft drinks and beverage manufacturer
founded in 1892. They are the biggest concentrated syrup and soft drink manufacturer and
distributor currently serving more than 200 countries and carbonated soft drinks have
traditionally been the Coca-Cola company’s main products. They are rich at creating new
product line and categorised, they offer several kinds of juice, energy drinks, beverage, water,
coffee and tea, Alcohol and so on.

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 Figure 2: Coca-Cola’s total employees from 2007 to 2022

(Source: statista.com, 2023)

Although currently male employees are dominated the Coca-Cola Company, but the company
declare they will lead the women employees to 50 percent by the year of 2030. In the year of
2021 Coca-Cola had 50.4 percent white employees, 20.9 percent black employees, Hispanic
14.5 percent Asian 7.2 percent and other 6.7 percent in the USA workforce (Coca-Cola: Racial
Diversity in the Workforce, GlobalData 2022).

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 Figure 3: Worldwide Revenue distribution of the Coca-Cola in 2022

(Source: statista.com, 2023)

In the year of 2022 Coca-Cola company generated 43 billion US dollars of net operating
revenues in which more than 36 percent of Coca-Cola Company’s revenue comes from North
America and always this region gives the highest margin while 6.6 percent revenue was
generated from global ventures. Second largest revenue sector of Coca-Cola is bottling
investment in which they gained 18.3 percent of total revenue.

Development of ideas across cultures

Coca-Cola Company has recently suffered for its "Try to be Less White" campaign, launched
during employee training sessions. The campaign sought to address racial issues and concerned
about that the campaign might have an effect on white employee’s morale due to the charges
of reverse racism. The project was launched in response to the anti-racial "Black Lives Matter
Campaign's" gaining recognition in several Western countries. Coca-Cola wanted to make a
strong statement regarding the importance of recognising and respecting diversity by
motivating employees to ''Try to be Less White''. Critics raised the questioned about the
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campaign, they were claiming that it will encourage the reverse racism and if the company
could ask for less white, it should also motivate to being less black. These criticisms have
significantly lowered white employees' morale at work for the Coca-Cola Company (coca-
colacompany.com, 2023). Due to this campaign of being less white, white employees may feel
targeted unfairly and critics were claiming this message could be polarised and detrimental to
creating a positive work environment. Allegations of reverse racism made the campaign more
controversy and increased the conflict between supporters and critics. The management of the
corporation realized they needed to address the issues brought up by the public and employees
in light of the growing critiques (Jun et al. 2019). Company understands the situation and feels
to discuss with their staff about their opinions on this undergoing matter. The campaign ''Try
to be Less White'' has come under criticism, which has led to serious concern about its possible
repercussion on their staff morale and perception of reverse racism. The controversy serves as
a reminder that company must hold the specific line when handling racial concern in the
workplace.

Figure 4: Coca-Cola's statistical presence

(Source: coca-colacompany.com, 2023)

Coca-Cola's international business growth approach

As a worldwide business, Coca-Cola has employed a number of foreign business growth

techniques to grow its business over the world. Some places they got the greenfield business
such as in 2010 Coca-Cola started bottling plant in Malaysia and somewhere develop the
strategy to compete with the competitors. Consequently, the following are the main tactics the
Coca-Cola Company follows:
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 Figure 5: Coca-Cola company's franchising and licencing entrance approach

(Source: Business Model Analytics 2023)

Franchising of Global Bottling: Developing independent bottling operations in the USA and
other nations is one of Coca-Cola's most successful business strategies. By franchising its
bottling business, Coca-Cola reduces to make costly investments in each of the bottling plants
that are required to make for its beverages. Additionally, it enables the use of locally available
raw materials and ingredients, which lowers the costs and include a small modification of local
preferences. Outside of its home country, sugar is used as a main sweetener instead of high
fructose corn syrup. Other local variations may include unique flavours that are preferred in
that region.

Strategic Alliances and Collaborations: Joint venture and strategic alliance is another
successful strategy for Coca-Cola. To form joint venture and strategic partnership Coca-Cola
has collaborated with local companies. These collaborations provide the access to knowledge
about the regional markets, distribution channels and cultural understanding. By working with
established companies, Coca-Cola can manage regulatory challenges, penetrate new markets,
and build reliable connections with key stakeholders. In addition, partnerships and joint
ventures allow the Coca-Cola for co-investment, technology transfer, and information sharing,
which help the Coca-Cola company to adapt to local market conditions effectively.

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Merge and Acquisitions: In order to expand the product lineup and gain market share in
international countries, Coca-Cola looked aggressively for acquisition the small competitors
and merge with the giant distributors. By acquiring or merge with local beverage companies,
Coca-Cola can reach developing countries market to expand its product portfolio with well-
known regional brands that will give them quick market access of that region. Last 5 years they
acquired two companies and the biggest acquisition by the Coca-Cola occurred in 2018 when
they acquired the reputed coffee brand Costa Limited by paying 6 billion American dollar. In
2001, they acquired Californian top juice brand Odwalla to increase the variety on non-
carbonated beverage drinks. In 2007 Coca-Cola bought Energy Concept Inc. to improve the
water and energy drinks market.

Figure 6: Brand building strategy of Coca Cola

(Source: investor.com, 2023)

International Marketing and Branding: Coca-Cola has been effective in connecting with a
broad range of people and successful of reinforcing its brand values of enjoyment and joy
across several communities and societies by implementing the innovating ideas and emotional
touch. The Coca-Cola brand, packaging, and advertising campaigns have a significant
emotional impact on worldwide consumers. The company has built a strong and recognisable
brand image through consistent advertising and unique marketing campaigns. The "Open
Happiness" and "Share a Coke" campaigns are two example of the company's foreign

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marketing initiatives. Coca-Cola's marketing initiatives usually include internationalisation
components in order to connect with local consumers. For instance, the company adapts its
promotional slogans, spokespersons, and creative ideas to reflect unique cultural preferences
and variations in the regional culture. This approach ensures that Coca-Cola remains appealing
and trendy in various regions, boosting its awareness as a worldwide brand.

Local Preferences Adaptation: Coca-Cola understands how important it is to personalise its

products to give the local tastes and preferences. In order to suit particular regional tastes, the
company modifies its recipes, flavours, and packaging. With the help of this technique, Coca-
Cola can satisfy a variety of customer requirements while maintaining its global reputation.
For instance, Coca-Cola launched Thums Up in India, a popular cola brand it had acquired in
1993, to satisfy the nation's strong desire for hotter and stronger beverages. In Japan Coca-Cola
provide peach and green tea flavour just to attract this regional consumer.

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 Intercultural Issue for the Coca-Cola Company
Theoretical perspectives

Hofstede's cultural dimensions theory

Geert Hofstede's cultural dimensions provide a framework for understanding how various
aspects of communication and behaviour are seen in different cultures. By applying this theory
on Coca-Cola, researchers may look at how the company handles cultural diversity and adapts
its strategies for different cultural contexts.

Figure 7: Hofstede model of the cultural dimension

(Source: Business2you, 2023)

Power Distance
This dimension reflects how a culture manages power imbalances. People in high-power
distance cultures (like some Asian cultures) expect more authoritarian behaviours from people
in positions of power. In low-power distance cultures (like Western cultures), people want a
flatter power structure.

High Power Distance: In such a culture, Coca-Cola may need to respond in a more formal and
authoritative way, addressing the customer's concerns and promising to fix the situation.

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Low Power Distance: In a low power distance culture, Coca-Cola's response would be more
informal and individualised, focusing a team effort to resolve the problem and maybe even
offering a discount or refund as a symbol of compassion.

Individualism vs. Collectivism

This dimension evaluates the frequency with the people who prioritise their personal interests
over the rest of the group. In societies that value uniqueness, individual rights and viewpoints
are treated in high esteem. In collectivist civilizations, group cohesiveness and loyalty are more
important.

Individualistic Culture: The Coca-Cola Company may response in this culture more
customised to the particular customer's experience and show empathy for their dissatisfaction.
They may focus on coming up with a specific solution for the customer.

Collectivist Culture: In a collectivist culture, the Coca-Cola Company's respond can

acknowledge the customer's dissatisfaction while also emphasising the company's commitment
to improving its overall customer service.

Masculinity vs. Femininity

This dimension examines how gender roles are allocated. While feminine cultures, like
Sweden, emphasise cooperation and humility, masculine cultures, like Germany, tend to
prioritise assertiveness and competition.

Masculine Culture: Coca-Cola's responses in masculine culture can be confident and focused
on a specific outcome, demonstrating the company's understanding of the situation and
willingness to take immediate action.

Feminine Culture: In a feminine culture, where there are enormous differences in emotional and
social roles, the response should be more muted, focusing on sympathy and collaboration, and
perhaps even showing humility when confronted with of the customers negative experience.

Uncertainty Avoidance
This dimension shows how different cultures deal with uncertainty and ambiguity. While
cultures with low uncertainty avoidance, such as the Netherlands, tend to be more comfortable
with ambiguity, cultures with high uncertainty avoidance, such as Japan, prefer standards and
structured communication—even when it means responding modestly to a customer's terrible
experience.

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High Uncertainty Avoidance: While implementing this dimension, responses should be
quick, detailed and encouraging, emphasising the steps Coca-Cola will take to solve the
problem and prevent such problems from occurring in the future.

Low Uncertainty Avoidance: When there is less of a preference to avoid uncertainty, Coca-
Cola could respond in a more flexible way and with open manner, allowing for more discussion
and customer recommendations to come up with a solution that benefits both sides.

Long vs Short Term Orientation

Small firms that are short-term focused often see little or no economic growth, whereas long-
term focused enterprises keep growing and reach a level of success.

Long Tern Orientation Cultures: The Coca-Cola company may emphasise of its commitment
to long-term customer retention and continuous enhancement, even if it may take some time
for changes to be implemented in societies with a long-term outlook, like China.

Short Term Orientation Cultures: Coca-Cola focuses on quick adjustments and improvements
to fix the negative reviews as quickly as possible in countries like the United States where
customer satisfaction is a shorter-term priority.

Indulgence vs Restraint:
Indulgence Cultures: To satisfy dissatisfied consumers in cultures with an appreciation for
luxury, Coca-Cola could be thinking about providing them with compensatory gestures like
discounts, freebies, or extra services.

Restraint Cultures: In societies that respect moderation, Coca-Cola may continue to take a
more restrained tack, emphasising a sincere apology and a commitment to solving the issue
without resorting to excessive gestures of goodwill.

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 Intercultural Issue for The Coca-Cola Company

The Coca-Cola Company faces a variety of cross-cultural issues in different countries due to
its large presence. A significant problem is implementing the necessary cultural changes. When
a company enters new markets, it must negotiate and understand every aspect of each country's
culture. As per considering the example, the business might need to take a more lenient stance
on workplace regulations in the United States, where individual liberties and creativity are
valued. On the other hand, aggressive marketing may need to be modified in nations with strong
health consciousness, like several European countries, due to worries about the effects of Coca-
Cola products on health (Shavitt and Barnes, 2019). A company needs to properly
adapt different national cultures if it wants to communicate with customers and make sure that
its marketing strategies are in accordance with local preferences.

Balancing
Worldwide
Health Issues:
Marketing
Strategy

Managing staff
Diversity

Figure 8: Intercultural issues

(Source: Shavitt and Barnes, 2020)

Health Issues: Coca-Cola also has to face the several problems with intercultural
communication for its products. Health-conscious consumers throughout the world are raising
questions regarding artificial carbonated beverages like Coca-Cola. The company must resolve
these issues and adjust with its appropriate marketing strategies. In order to address shifting
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consumer tastes and keep up with regional health trends, it might need to highlight the wider
range of products it provides, such as healthier options like low- or zero-sugar beverages
(Shavitt and Barnes, 2020). This helps Coca-Cola to preserve its market dominance while
responding to the expanding requirements of customers who are health conscious.

Staff Diversity Management: Due to the multi-national dimension of its operations, The
Coca-Cola Company has challenges dealing with staff diversity. The corporate culture of the
corporation places a strong emphasis on diversity and inclusion. However, promoting diversity
in a variety of cultural situations can be difficult. Due to cultural variations in communication
styles, work practises, and preferences, the company may need to create an inclusive and
supportive environment that respects and includes a variety of opinions. Employees from
various cultural background may develop in mutual respect and collaboration through training
in cultural awareness and establish lines of communication, enabling the company to fully
capitalise on the benefits of a diverse workforce.

Managing global marketing strategies: The Coca-Cola Company always deals with how to
adapt to local markets share while keeping a consistent global brand image. The company's
marketing strategy must find a balance between global consistency and local relevance. While
certain marketing strategies and catchphrases may be well received in one nation, they may not
be as well received in another due to cultural nuances or sensitivities (Roma and Aloini, 2019).
In order to make its marketing messages relevant to regional customs and interests, Coca-Cola
must take great effort in developing them. A detailed understanding of each market, an
understanding of local consumer habits, and effective communication with the local marketing
staff are required in order to create campaigns that engage with the target audience. The Coca-
Cola Company, a multinational organisation with a worldwide brand, deals with a range of
cultural challenges globally. Managing workforce diversity, acclimating to other cultures,
resolving health concerns, and balancing global marketing strategies are key areas of focus.
Coca-Cola can overcome these international challenges and continue to expand in a variety of
nations throughout the world by being aware of and respectful of cultural differences, adjusting
for local preferences, and cultivating an inclusive workplace environment.

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 Challenges faced by the company

The Coca-Cola Company has a number of challenges while conducting business globally in
various cultural contexts. Some of these challenges include managing cross-cultural teams,
coping with local customer preferences, adjusting to various cultural conventions and beliefs,
and getting through communication barriers.

Cross-
Cultural
Team
Management

Adjustment
of different
Cultural
Norms and
Values

Barrier in
communication

Figure 9: challenges in Coca-Cola

Cross-Cultural Team Management: The firm's operations are thought to include considering
cross-cultural management. Within the marketing environment, it faces some significant
challenges. The application of teams is made inbuild with people from different cultural
aspects, as per their contribution, their unique perspectives, communication skills, and working
methods (Popovic et al. 2019). The efficient management of such teams requires awareness of
culture, open channels for interaction, and an inclusive environment. Promoting transparency,
fostering inclusion and diversity, and providing cross-cultural training may help team members
understand one another better and work together more effectively.

Communication Barriers: Communication barriers are a typical source of difficulties for The
Coca-Cola Company in cross-cultural contexts. Language obstacles, styles of communication,
and nonverbal cues may all have an impact on how well people communicate within the
company and with external stakeholders. To overcome these barriers, the company must change
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its communication strategies, use experts or translators when necessary and communication
channels that are suited for the target culture. By investing in cross-cultural communication
training, employers may increase their staff members' intercultural awareness and close
communication barriers. Cross-cultural challenges must be overcome for The Coca-Cola
Company's global operations to be successful. Concentration must be focused on managing
cross-cultural teams, responding to varied cultural norms and beliefs, considering local
consumer preferences, and eliminating communication barriers. The business can overcome
these difficulties by displaying cultural awareness, performing in-depth market research,
encouraging an inclusive workplace, and spending money on cross-cultural communication
training (Eshak et al. 2023). By negotiating cross-cultural circumstances successfully, The
Coca-Cola Company can develop stronger links with customers, foster brand loyalty, and thrive
in a range of countries throughout the world.

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 Conclusion

It is obvious that the information has used a lower performance factor in the context of the
marketplace. The Coca-Cola Company's "Try to be Less White" campaign in multi-cultural
contexts has highlighted significant challenges and potential consequences. Reverse racism
allegations have been levelled against the project, which tries to encourage diversity and
address racial concerns. This situation emphasises how important it is to recognise and deal
with differences in culture and emotions in an international context. From a cross-cultural
viewpoint, it is essential to understand the relevance of cultural norms, attitudes, and consumer
preferences in different countries. It has engaged Cultural awareness, open communication
lines, and an inclusive workplace that are necessary for the effective administration of such
teams. Encourage open communication, advance diversity and inclusion, and provide
multicultural instruction to promote understanding, cooperation, and synergy among team
members. Communication barriers, such as language barriers and communication styles,
provide significant challenges in cross-cultural contexts. To get over these challenges, The
Coca-Cola Company must implement strategies like language translation services and
culturally relevant communication platforms. Cross-cultural communication training can help
employees improve their multicultural knowledge and bridge communication barriers.

Recommendations

If The Coca-Cola Company wants to effectively handle the cross-cultural issues it encounters,
it is essential to put in place an extensive strategy that promotes cultural awareness, adaptability
and inclusion. Here are some recommendations:

Local Market study: Before entering a new market, The Coca-Cola Company should conduct
comprehensive research to understand the cultural nuances, customer preferences, and regional
marketplace dynamics. In-depth analysis of cultural practises, habits and social standards
should be done in this study in addition to demographic information. As a consequence, the
company will be able to adjust its marketing strategies, communications, and products to
accommodate varied cultural contexts.

Localized Marketing Campaigns: To appeal to the cultural values and tastes of the target
market, the company should develop locally adapted marketing efforts. To do this, it is
necessary to adapt marketing material, visuals, and packaging to suit local traditions and
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practises. Coca-Cola can increase customer loyalty and sales penetration by emotionally
connecting customers through efforts that are culturally suitable.

Promote Diversity and Inclusion: The Coca-Cola Company need to aggressively promote
diversity and equality among its workers and at all levels of the business. This may be done by
implementing diverse recruiting procedures, promoting an inclusive workplace, and providing
equitable opportunities for professional advancement. By adopting diversity and
acknowledging other viewpoints, the company may leverage its multicultural employees to
gain insights and adjust to a variety of cultural circumstances.

Regular evaluation and adaptation: The company must regularly evaluate the results of its
cross-cultural programmes and initiatives. When making decisions, it's critical to solicit and
consider feedback from stakeholders, team members, and consumers. Through ongoing
assessment, modifications and adjustments may be made in response to shifting customer
preferences and cultural contexts.

Collaboration and cross-cultural communication: The Coca-Cola Company has to provide

opportunities for people from different cultural backgrounds to communicate with one another.
This may involve cross-functional teams, mentorship initiatives, and regular forums for
exchanging cultures and ideas. Promoting open and honest communication will enable staff to
share their unique viewpoints and experiences.

By implementing these recommendations, The Coca-Cola Company may be able to better

navigate a variety of markets and handle cross-cultural issues. By adopting cultural sensitivity,
doing in-depth market research, promoting diversity and inclusion, fostering cross-cultural
cooperation, and consistently adjusting strategies, the company will be better positioned for
success in a more globally connected world.

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Reference

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coca-colacompany.com (2023). company information. Available at: https://www.coca-

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Appendix

SL No Student Name Student ID

1 Md. Shaon Molla 1866650

2 Gurjot Singh 1972116
3 Sarabjit Kaur 2181961
4 Taranvir Singh 1976785
5 Pushpinder Singh 1977772
6 Jaswinder Kaur 1976224
7 Harvinder Singh 1973055
8 Bhawna Ahlawat 1980486
9 Davinder Kaur 1970902
10 Pooja Saini 1974238
11 HamdeeHamed 2141924

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