Strategic Resource Mng

Fahad Umar
Abstract: The paper as titled strategic resource management focuses on four main
aspects, which include human resource management, management of physical
resource marketing and information system respectively. An explicit analysis of the
four key areas of resource management was conducted, as to how it is applicable in
Coca-Cola Company,

Stratford Collage of Business and Management UK

Table of Contents

Abstract........................................................................... Error! Bookmark not defined.

Introduction..................................................................................................................3

Role of HRM in Coca-Cola Company........................................................................4

Recruitment and retention strategy of Coca-Cola Company ..................................5

Recruitment processes in Coca-Cola..........................................................................6

Techniques used to develop employee in Coca-Cola Company...............................7

Contribution of techniques to employee engagement...............................................8

Stakeholder’s analysis .................................................................................................9

Organisational objectives and physical resources required...................................10

Physical resources in Coca-Cola Company .............................................................11

How marketing activities contributes to achieve organisational objectives .........13

Marketing operations ................................................................................................14

Processes used in developing market .......................................................................16

Information System Management ............................................................................17

Conclusion and recommendations ............................... Error! Bookmark not defined.

Reference ....................................................................................................................19

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 Strategic Resource Management3

Introduction

As reported by United State security and exchange Commission (2006) Coca-cola

Company is a global multinational beverage company with one of the best brand all

over the world. The company produces wide range of non-alcoholic beverages, which

are sold in over 200 countries. The chain of production of Coca-Cola products has to

do with the company producing concentrate and distributing it to its bottling

companies for final production and distribution to final consumers, the bottling

companies usually sale the product to retail stores, vending machines and individuals

directly in some cases.

The company’s objective is to bring a global beverage brand that will quench people’s

beverage desire, to foster the best customers and suppliers network and to create a

mutual and durable value. Aside form the upper mentioned few objectives of the

company it’s also an objective of the company to gain customers loyalty, increase unit

sale and charge a premium. Marketing objective will as well be positive to be

included in the overall company’s objective, sum of which includes increasing

awareness of product, increasing market share value, enduring competitors and

increasing global Coca-Cola enterprise size.

Managing the most important asset of the company will eventually help and foster the

company to achieve its underline objectives; the company has total staff strength of

about 700,000 operating across the world. Effective management of Human capital of

such number will ensure productivity and will enhance the market share value

likewise it will reinforce the company against its competitors, which are some of its

objectives.

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Role of HRM in Coca-Cola Company

Human Resource Management is a very important aspect of development in every

organisation, creating this management department is considered to be the first to the

development and success of the company. Especially for a global multinational

company like the Coca-Cola Company, it’s the people factor that creates such a

global company, and for it being a global company it is almost impossible to have a

global unify policies and regulations for all its branches over the world. The divers

cultural, political and economical differences most be address, human resource

management play a vital role in dealing with such divers differences in it proceedings

for recruitment, performance management, career development, employee

management, succession planning to mention few.

As asserted by the company’s site (http://www.coca-cola.com/recruitment/) Human

Resource Management of the company focused on recruiting and retaining the best

heads so as to maintain its topmost position in the competitive beverage market in the

whole world. The HR is responsible in placing policies, regulations, practices and

guidelines to ensure the company has the right employee at the right place so as to

achieve the overall company’s goals and objectives. Some of their duties include

employee recruiting, employee retention, employee development, succession

planning, working environment, compensation, benefits as well as career mobility. On

this the HR are on constant consultation with operating managers on issues relating to

recruitment needs, existing gaps and how to close them up.

The HR always strive to convince the management in providing the company’s

employee with a favourable environment that foster sense of unity among them so

that they can conduct their duties effectively as an individual and as a team.

Furthermore, the Coca-Cola Company values its employee as its best asset.

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Recruitment and retention strategy of Coca-Cola Company

The coca-cola company is a multi-local enterprise for the reason being a global

company that operate in over 200 countries across the world. The company operate

globally to fit in the local needs, rules, regulations, laws and culture. This is the

reason the company employ many local staffs to operate in their locals. According to

the Director Human Resource Coca-cola Northwest Europeans division the company

strive to limit international employees on field and focus on involving the locals

because the locals are more well equipped to carry out operations at their localities.

Nevertheless, the need for expertise is still important for two good reasons. First is to

fill the need for any specific skills that might not be available in the location. A clear

example is when the company set up a new operations in some Eastern European

countries, there was need for a well experience financial manager which the company

had to provide form Chicago. Second reason is for employee development, there are

some top positions that required international expertise.

The Coca-Cola Company recruits about 700,000 staffs in around 200 countries and

still maintain a strong commitment of ensuring equal opportunities is being given to

all employees as well as valuing their diversity. The Coca-Cola Company also try its

best in maintaining a good working environment free of discrimination and

harassment of any kind.

The company values its employee as its best and most valuable asset. The retention

strategy here has to do with the benefits employee drive form working in the

company, over the past century employee of this company have been working with

unfailing set of values to help the company in achieving its goals and objectives.

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Maintaining those employee values will always be a priority of the company as it’s

vital for its long term success.

Coca-Cola Company provides its employee with a satisfactory wages and salaries

aside from the basic amenities and facilities they are being provided with and the

company embraces its employee development strategy by making their dreams come

true in the sense that, the company are involved in some many innovative programs

that encourage and support employee to do better. This policy of valuing its employee

as its best asset seem to be in other words the retention strategy being used to

motivate and hold employee within the company.

Recruitment processes in Coca-Cola

The recruitment processes of Coca-cola Company is very well organise starting from

ads which is usually given in either company’s website of international newspapers,

the main sequential recruitment processes start immediately when interested qualified

candidate apply with their CV’s and credentials, this will be examine below.

Selection process: The selection processes differs with the nature of the job candidate

applied for, although the company uses a sequence series of Interview, Group

exercises, presentations, Psychometric exam and Situational exams.

The interview is being conducted in a way so the applicant can reveal more his/her

potentials and to test his/her abilities in handling different situational problems. It is

expected of an applicant to be honest and logical in answering those questions, the

group excises is basically more of a team work. The company uses the group exercise

to rate how an effective team member could an applicant be and to know the level of

applicant communication skills while the presentation excises is being used by the

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company to find out how confidence an applicant is as well as how effectively he/she

can address a good number of people. Furthermore, the psychometric test is designed

to test applicant abilities and potentials in some occasions the company uses a

personality tool to find some certain things on the applicant. Lastly is the situational

exercise which is designed to test applicants reactions to different types of situations,

in this regards applicant are being exposed to different kinds of situations and are

being observe on how they react, this will determine the kind of positions they are

suited for.

Techniques used to develop employee in Coca-Cola Company

The Coca-Cola Company as mentioned earlier value its employee as its best and most

important assets, this is why the company the company develop and reward them with

a favourable working environment where they can excel in their various performance,

develop their professional skills and finally help them in achieving their career goal.

As a valued member of the company, the company is committed in supporting,

developing and growing its employees to achieve their various potentials by

enhancing employee performance through learning’s, trainings and career

development. The performance of employees is being monitored using a form called

the IPO (Individual Performance Objectives), employee are being reviewed using this

form at mid-year and end of year performance check and performance appraisal

respectively which are letter joined up to determine the total business objectives.

Meanwhile, as part of the company’s culture, the performance outlook will be

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properly communicated to the employee and will make an impact in the company’s

reward philosophy.

The Company operate under combined structured learning system, coaching, trainings

and feedback. This is also to ensure that employees are capable enough to discharge

their duties in customer relations as well as career goals, the company operate a

philosophy known as 70 20 10 philosophy. The philosophy signifies that 70% of

employee development comes about from Job, 20% from coaching and feedback and

10% from formal learning and development.

At Coca-Cola Company a career is considered to be a journey through which

employee progress with roles and regulations set within the company, progression not

just about getting promotion but about building experience and capability. inside the

Coca-Cola Company, the progression could be through building skills and

acquaintance within employee’s role that will broadening employee’s chance into the

next level.

Contribution of techniques to employee engagement

According to Cole (2006) Effective Strategies an HRM department must used to

support the achievement of organisational strategy to help the Company in achieving

its goals and objectives. These employees also represent the company in their various

environments as Coca-Cola ambassadors where ever they are. The company treats it

employees fairly and respectively on every issue with respect to the company’s

values. As one of its objective is to create good and supporting working environments

that are as diverse as the operation centres across the world.

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Coca-Cola Company has one of the best benefits and compensation package all over

the world, high performing employees and a well setup benchmarked among all

competitors. The company provide its employee with multiple development

opportunities, which includes learning and development programs, coca-cola

university and other training rendered as well.

Creating frequent dialogue with different employees around the world, this is to foster

open communication, cycle of ideas and to encourage teamwork. At such dialogues

the company gain some vital information’s on how to strengthen its business

strategies, increase its awareness and implore avenue to share success and new

opportunities. Example of such is the 2008 Beijing Olympic which the company

organised to promotes its products, this was the idea the company’s employees and

bottling partners.

Stakeholder’s analysis

As shown in the Coca–Cola Company’s report (2006) stakeholder is an individual or

the organisation whose action could be positively or negatively impacted by or collide

with the interest of the company’s government. These are classified into primary,

secondary stakeholders and key stakeholders.

Primary stakeholders are those affected by company’s actions either positively of

negatively while secondary stakeholders is considered to be intermediaries,

individuals or companies working for the mother company that will directly or

indirectly be affected by the mother company’s actions. Likewise, the key

stakeholders are individuals or companies that have a substantial influence within the

mother company.

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Stakeholder analysis is the key part of the stakeholder management. The Coca-Cola’s

stakeholder’s analysis is best positioned in it conflict resolution, in the business

administration and in it project management. This processes helped in identifying the

individuals, teams or groups capable enough to impact on the company’s business

plan. This is what the Coca-Cola Company uses to identify what interests the

company on how to assess the different types of stakeholders, the company will

reflect this assessment on its project plan, its programs, policies and other actions.

Organisational objectives and physical resources required

The Coca-Cola Company report (2006) also suggested that the major objective of the

company is to use its strong assets, which include brands, distribution system,

customer loyalty, global reach, employee commitment and financial strength in

achieving organisational long-team goals.

S/N Objectives Physical resources involve

1 To bring a global The company owns coca-cola enterprises, which is

beverage brand the largest non-alcoholic bottlers in the world,

functioning in 8 countries. Aside from the upper

2 To foster the best mentioned bottling company, the Coca-Cola

customers and suppliers Company has a strong relationship with

network independently owned bottlers, invested bottlers and

owned bottlers which the have no control over, the

one they have interest but no control over and the

one they have ownership of respectively.

3 To gain customers The Coca-Cola Company uses its name, taste and

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loyalty image to gain its customers loyalty. A lot munber of

local and international competitors have tried to

copy the taste and packaging of their products

similar to Coke unfortunately non of them avail

4 To increase unit sale The company invested heavily in marketing to

support and promote its brands, investing in

marketing will significantly foster customer

awareness as well as consumer preference. This will

enhance growth per capital consume, market share

value and total growth in volume

Physical resources in Coca-Cola Company

ElAmin (2007) It’s very important to manage the physical as well as the technological

resources of any given organisation. In Coca-Cola company physical and

technological resources include; buildings, machineries, museums and education

centres, maintenance and safety of premises, drawings, warehouses, designs to

mention few. These are crucial for the Company to function well, specific buildings

for work to be executed and efficient safety and maintenance precautions for effective

machinery and plant work. The Company’s buildings are built in a standard and

professional design with modern smart looking finishing and very presentable.

The company’s headquarter is located in United State of America, in Atlanta city with

many branches across the world, considered as the most diverse beverage brand

collection in the world.

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In the United State of America, the company’s brand collections are harmonized by

the Barq’s root beer, Nestea, Citra, Cherry Coke, Fruitopia, Minute Maid Soda and

Dasani. Likewise in china, the company sell what is known as Tian Yu Di meaning

Teas, Water and Juice. In Japan Mori no Mizudayori meaning mineral water, in Spain

SONFIL meaning juice blend, in Brazil Kuat meaning guarana soft drinks in addition

to this there are many of different local beverages. Adding Schweppes product to its

collection yield the company to about 36 new brands in more than 160 countries

across the world.

Bottlers

Coca-Cola Enterprise is one of the largest bottling company in the world operating in

8 different countries, which is fully owned by The Coca-Cola Company. Aside from

Coca-Cola Enterprise, the company has a strong relationship with three different

categories of bottling companies, first it the independent bottling company the one

that the company has zero ownership of, the second category of it is the one in which

the coca-cola company has interest in due to its investment in it and lastly is the one

owned by coca-cola company thereby having an ownership. The bottling partners

help the company in distributing their products across every continent around the

world, this is very important to the company as it is gaining competitive advantage

over its competitors and promoting its products as well.

Investments and acquisitions

In the year 1997 to 1998 the company’s investments and acquisitions activities sum

up to $1.1 and $1.4 billion USD respectively and in the year 1999 it sum up to $1.9

billion USD with the acquisition of Schweppes Plc in 160 countries.

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In order to meet up company’s long-term objective, the company invested heavily in

marketing to support and promote its brands, investing in marketing will significantly

foster customer awareness as well as consumer preference. This will enhance growth

per capital consume, market share value and total growth in volume.

How marketing activities contributes to achieve organisational objectives

A recent polled company’s site (http://www.coca-cola.cpm/marketing/) mentioned

that the company produces more than 500 different brands of non-alcoholic soft

drinks in over 200 countries over the world and providing over 1.6 billion daily. The

company’s target market is not restricted to gender, age or geographical area. The

company’s target market is to server its products globally with divers distribution to

people at their convenient places, homes, schools, offices, restaurants, parties, bars,

parks to mention few.

Marketing products involves a sequences mix of operations, which includes

producing the right products, at the right price, in the right place and at the right time

with appropriate promotion. Coca-cola Company always invest in use the timeless

principles to address its marketing mix

Acceptability of product, the company with the use of effective marketing strategy

integrate and the product on people’s daily lives. Affordability of product, the

company also maintain an affordable relative prices in it product in term of money

value and lastly is the availability of product which most people can testify to the fact

that the product is everywhere needed with one of the best world recognised band of

soft drink in the world. The company established an effective distribution channel

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globally the guarantees the ubiquity. These marketing activities help the company in

achieving some of its objective of being the global number one beverages company.

Coca-Cola Company marketing departments work effectively to understand

customers need, expectation as well as its competitors so as to come up with strategies

that will help the entire company in increasing unit sale of products and increasing

market share value of the company. The marketing department work as a team made

up of different expertise, this is to ensure absolute maximisation of different

marketing ideas are combined to come up with a single marketing campaign which

might as well be used in different localities across the region. This is why the

company considered the employees to be the strength of its brand and ties it success

directly behind the employees because it’s their ideas and initiatives that make the

company what it is today.

Marketing operations

According to Ukessay (2014) The operations involves in Coca-Cola marketing

include creative services, marketing Asset Management, Advertising, Media,

Customer and commercial leaders, Brand Management, Marketing Research,

Category Management and sales management some of which will be elaborated

below.

Marketing research is considered to be a process of integrating marketers to customer,

consumer and the general public through predefined set of information. Information

assembled together is what marketers used in identifying new opportunities and

problems and how to go about reaching them and avoiding them respectively.

Marketing research explicitly fish out relevant information needed to address some of

those issues, design information collection methodology, sort out collected

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information categorically, absolute analysis of collected data and come up with results

and its repercussions. Marketing research has everything to do with intensive deep

research and supervision of marketing performance of the whole company so as to get

a better view of the marketing processes.

The customer and commercial leaders are put in place to help the company in fasten

result gathering by promoting and encouraging teamwork. The commercial leaders

concentrate on increasing market share value by providing each market with the best

possible commercial capacity. This signifies working hand in hand with Coca-Cola

Company’s subordinates as well as different customers across different locations, to

manage negotiations, bids and tender between them and the company.

Sales management involves local subordinates that put the marketing strategies into

practice in each business unit sale of the product. Gathering vital information on how

to penetrate the product to fit into their different localities, so also building a good

relationship with customers as well as the local bottlers. Furthermore, they work

communication and media affairs to make certain that the company meet its

commercial objectives.

Advertising is one area of commercial that the company is investing heavily so as to

promotes its brand and product across the world. According to the company’s annual

report for the year 2013, the company invested $3.27 Billion USD on advertisement

of it products globally.

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Processes used in developing market

The Company is well known for promoting research and development, which made it

possible for it frequent innovations on it products. The company follows

environmental trends and health conscious in marketing of its productions. This made

it possible for the company to acquire more than 60% market share in the whole

beverages industries. In understanding market of a product, marketing mix has to be

considered. Marketing mix include product, price, place, and promotion.

• Product. The coca-cola company have wide range of products varieties to give

a customer a wide choice range not to restrict it to few certain varieties. The

company produces over 35,000 rage of product few of which were mentioned

above, with coke being the bench mark and other major popular varieties

include Fanta, Sprite, Coca-Cola, Coke Zero, coke light to mention few. The

company majorly produces concentrates and syrups which are being sold to

bottling subordinates across the world to provide packaging and dilute the

syrups for final consumption.

• Price. The company offers a wide range of price rate of products as there are

wide range of varieties, prices are suitable for every class of people a major

strategy that promote the product globally.

• Place. As mentioned earlier, the product is present globally with little few

exceptions, which the company will soon penetrate.

• Promotion. The company uses some promotional tactics to promote it product

across the globe. The company sponsor some games like cricket to promote its

product to fans and audience, another promotion technique being used by the

company is T.V Commercials which takes viewers attention immediately and

has a tendency of staying in their memories for a while.

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Information System Management

As it is in most organisational work settings, working equipments are very important

in running operations effectively, so it is in Coca-Cola Company. The company is

well equip with modern IT facilities, this facilities business processes and flourished

work smoothly and faster so as to achieve organisational objectives. In the absence of

some of these facilities, operations could not be smooth and efficient. Example is

computers or the Internet, with out any of the two operation is almost impossible in

some of the company’s departments ICT for example. Without an effective ISM most

of the departments will be redundant, which will cause a major lost in profit and will

slow production as well.

For a company that is operating globally in more than 200 countries, monitoring

information is very crucial to determine the success or failure of the company. The

Coca-Cola Company started with Information system named the legacy system,

which result to be inefficient and difficult to operate. The system did not automate

most of the company’s operation including financial plans, which has to be inserted

manually on spreadsheet and presented on hardcopies. Those deficiencies of the

system resulted the company to incurred a huge cost.

However, as the company was growing global, there was high need of a system

capable of handling and integrating several aspect of its global corporation, this is

when the company came across a system called the Strategic Enterprise Management.

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An effective functional system that provided the company with several futures,

including financial planning, data collection and retrievals, sales forecast to mention

few. Presently, the company is fully implementing and relaying on the system for

most of its information system operations.

Information System Management is being used in almost every department of the

company because it helps in managing important information which are determinant

of some of it operations, information’s includes; sales transactions, employee records,

company’s financial records, inflows and outflows to mention few. Centralizing those

information will give managers a clear view of company’s position and will also help

the company in decision-making, business innovations and reduce rate of ricks.

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Reference

Ahmad ElAmin (2007). “Coca-Cola reports progress in red environmental impact”

William Reed Business Media. United State.

Coca-Cola Company (2014) “Marketing” Retrieve July 2, 2014 http://www.coca-

cola.com/marketing/

Coca-Cola Company “Sustainability report” Retrieved May 20, 2014

http://www.coca-colacompany.com/sustainability/global-challenges.html

G.A Cole (2006). “Personnel management theory and practices ” Hemisphere D.P

publication Ltd.

United State Security and Exchange Commission (2006) “The Coca-C0la Company”

Report, Washington DC

UKEssays (2014) “Business Environment of Coca-Cola Company Business essay”

Retrieved July 5, 2014 http://www/ukessay.com/essays/business-

environment-of-coca-cola-company-business-essay.php

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