Colgate- Palmolive Case Study Managing International Careers

-Shraddha Kolte (19) -Kanishk Pathak (26) -Prachi Patil (27) -Dipendra Rele (31) -Meetali Welinkar (119)

"Colgate & Company" formed by Samuel Colgate ‡ 1928 .FLASHBACK ‡ 1857 .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 .Palmolive-Peet bought Colgate to form ColgatePalmolive .

GE started training programs for international assignments .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.

‡ Difficulty in habituating to local conditions ‡ Difference in the cost of living ‡ Unavailability of single pension policy .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. etc. child education.

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 ‡ . Structure ± Before acceptance ‡ 5 days trip to assignment location. and sensitive to employee and family needs. expense by company ± After acceptance ‡ Manager and his/her spouse offered language course. comprehensive.International Assignment Policy ‡ ‡ Objective-intended to be progressive.

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 .

A.S.Selection & Training ‡ Screening Criterion: ± ± ± ± ± ± ± ± M.B. Strong computer skills and prior business experience 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 ‡ Training: ‡ No initial postings to native countries . degree from an American university Speaks at least one foreign language Has lived outside the U.

health.r.r.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. social practices. religion. employment eligibility & suitability  Loss of income . & safety  Dissatisfied spouses w.t. language.t.

Spouse Assistance Program ‡ First of kind a US MNC introduced a µSpouse 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 could hardly compensate for the lost income .500 ± Tuition reimbursement ‡ Issues: ± Spouses were professionals with high paying careers ± $ 7.

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