FINAL ASSIGNMENT

COURSE:
MULTI-CULTURAL AND TRANSNATIONAL MANAGEMENT
(INE 3223 E1*)

Instructor: Dr. Nguyen Thi Phuong Linh

Name of student: Do Thi Han
Date of birth: November 16th 2003
Student ID: 21050856

Hanoi, 2024
Course: Multi-Cultural and Transnational Management (INE 3223 E*)

Student
Do Thi Han - 21050856

Number of pages
36 (Excluding Title page, Table of Contents, and Appendices)

Module instructor
Dr. Nguyen Thi Phuong Linh

Date of submission:
June 15th 2024

Plagiarism statement
“I confirm that this assignment is entirely my own work and has not been
submitted in full or in part for any other course within or outside UEB. I
confirm that all references are duly acknowledged.”

Signature: Han
 TABLE OF CONTENTS
PART 1: ESSAY QUESTIONS..........................................................................................3

1.1. Impacts of cultural diversity on management activities:......................................3

1.2. Cultural diversity influences on management activities through case of Toyota

in Japan and in the United States...................................................................................5

PART 2: CASE STUDY ANALYSIS...............................................................................10

1. Overview of Coca- Cola Company:..........................................................................11

2. Managerial activities of Coca- Cola company in multicultural environment......16

2.1. Coca Cola’s leadership styles in multicutural environment...........................16

2.2. Motivation of Coca- Cola in multicultural environment:...............................24

3. Coca Cola’s advantages and disadvantages of managing a diverse and

multicultural workforce................................................................................................27

3.1. Advantages:.........................................................................................................27

3.2. Challenges:...........................................................................................................28

4. Suggestions for Coca Cola to make the best of its diverse workforce:.................31

PART 3. COURSE REFLECTION..................................................................................33

REFERENCES:.................................................................................................................34

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PART 1: ESSAY QUESTIONS
In the current era of globalization, how does cultural diversity impact
management activities in general? Utilizing the cultural dimensions' methods
learned in this course, analyze and provide examples of their influence on
management activities. Additionally, offer recommendations if deemed
necessary.
1.1. Impacts of cultural diversity on management activities:
Globalisation allows MNCs to expand their operations wordwide. It also
results in an ability to understand, communicate with, and effectively interact
with people across cultures, and work with varying cultural beliefs and
schedules. Cultural variations between countries brings about many impacts
on management activities as below:
- Leadership: Ethnocentrism and stereotype biases are significant challenges
in cross-cultural leadership. Ethnocentrism, the tendency to judge other
cultures by the standards of one's own, can impact leadership decisions by
promoting favoritism towards individuals from the leader's own culture. This
can lead to biased decision-making and hinder effective management in
multicultural environments. Stereotype biases also affect leadership
perceptions, as individuals may be judged based on preconceived notions
rather than their actual abilities.
According to Frolova & Mahmood (2019), the variations in employee duty
orientation between local and multinational corporations emphasize the need
to consider the impact of leadership styles and corporate culture on employee
attitudes and behaviors within multinational corporations. This highlights the
importance of aligning leadership styles with the cultural dynamics of the
organization to foster a sense of duty and commitment among employees.

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- Motivation: The driving forces behind empoyees’ willingness to put in their
effort, strive to reach their goals and engage in various projects vary across
many cultures due to their distinct preferences, ability to accept risk and their
own personal need and goal. In some cultures, individual recognition and
extrinsic rewards (like bonuses) might be highly motivating, whereas in
others, intrinsic rewards like feelings of accomplishment or contributing to
the team goal might be more important. The difference in cutural values of
countries also affects working motivation in MNCs.
- Human resource management: Employees who are employed in the entities
abroad usually have different cultural background. It is natural to expect that
employees from different countries exhibit different preferences for policies
and procedures. While some human resource management practices may
consider adequate and appropriate, others may be considered inappropriate or
even the unnatural. Since the employees dissatisfaction with human resource
management system can be expressed through low level of organizational
commitment and low level of performances, organizations when design
human resource management system that is going to be implemented in the
entities abroad, this system, at the very least, should be a compromise
between the system of values and standards of behaviour for which
headquarter of the organization is stands for, with a system of values and
norms of behaviour that local population prefer.
- Communication and negotiation: Culture consists of the socially transmitted
behavior patterns, attitudes, norms, and values of a given community, whether
a nation, an ethnic group, or even an organization. When negotiating in a
multi-cultural environment, we can face many many misinterpret due to
differences in all aspect of cultures ( behavior patterns, attitudes, norms, and
values, language..). Coping effectively with cultural differences in

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international negotiations can address issue, find out solutions which benefits
both parties and maintain long-term cooperation.
1.2. Cultural diversity influences on management activities through case
of Toyota in Japan and in the United States.

Toyota is now the world’s leading automobile industry, knocking out rivals
car maker; General Motors (Marr, 2009). The Toyota Motor Company was
established in 1937 and 30 years later it entered the US market in 1967. By
1980, the company already had about 20% of the US car market as the
indigenous car companies started experiencing customer dissatisfaction.
The real reason for the company’s success nevertheless was based on the
introduction of Japanese style of production, operation and management. The
‘Toyota Way’ is a set of standards that harness the Toyota (Japanese) culture.
These standards are applied by the Japanese in virtually all their dealings.
Although they are moderate by nature hardly showing emotions, they are still
very thorough and they apply the successful cultural traits in almost
everything they do. The most important aspect of Toyota America is the
techniques the company has used to stay successful given the obvious cultural
differences between Toyota Japan and its biggest foreign subsidiary. The
Japanese and the Americans have distinctly different business cultures

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however; the company has been able to work in harmony for decades. The
major differences are; communication skills, winning attitude, methodology
of maintaining strategies etc for both the countries – Japan and United States.
Thus, we can say that while establishing a new company in host country,
culture is highly important to consider because of its influences on
management activities across countries.
In this section, we consider to use Hofstede’s theory and Trompenaar’s theory
of cutural dimension for Japan and the United States so that we can see how
different cultures affect management activities.
Hofstede’s theory of cutural dimension for Japan and the United States

1.2.1. Power distance:

According to Hofstede (2003), This is the level of power which is equally
distributed within the society as well as its degree of acceptance by society.
Cultures of high power distance prefer hierarchical bureaucracies, high regard

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for authority while low power distance tends to favour personal responsibility
and autonomy.
The diagrams shows that Japan is greater accepting of power inequality than
the USA, but both coutries are below the world average.
1.2.2 Individualism and Collectivism
This dimensions refer to the level of individual and group interest for different
actions. Cultures of high individualism highly value free will but in a
collective culture group needs are more significant than personal needs.
According to this graph, Americans greatly emphasize personal interest and
individual decision-making as well as seeking positive benefit for the
individual (with over 90 points for individualism). In contrast, Japan has a
collective culture also below the world average of individualism. Japanese
prefer group work and group decision making and try to seek the best group
outcomes.
1.2.3. Masculinity and Feminity
It measures the degree of goal orientation of the society. While masculinity is
a situation in which the dominant values in society are success, money, and
things, feminity is a situation where the dominant values in society are caring
for quality of life and others.
With comparision to USA, Japanese society is considered to be more
masculine where work, status, money take priority over personal life and
families ( with nearly 100 points for masculinity compared to 60 points for
USA). Americans have more relaxed lifestyle and showing concern for others.
1.2.4. Uncertainty avoidance
Cultures of high uncertainty avoidance allow individuals to manage well with
risk and new innovations on the other hand greater job security and high level
of standardization appear low uncertainty culture.

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According the Hofstede cultural dimension, a significant contrast between
America and Japan can be seen in uncertainty avoidance. Japanese are more
concerned with rules and regulations and less informality, but in contrast
Americans are less concerned with rules and regulations, they like to take
more risk and are quite happy to make their own decisions.
Due to the differences in Japanese culture and American culture, the
management acitivities of Toyota in two nations are quite contrary.

-Japanese Corporate Decision-

Making involves group where
Americans make decisions as
individuals.
-Japanese Corporate Decision-
Making involves group where
Americans make decisions as
individuals.
Toyota’s
management Japan The United States
activities

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 Japanese Corporate Decision- Such practices were not
Making involves group where effectively transferred to the
Americans make decisions as employees of USA where
Individuals. they were part of a different
After the Toyota Company had culture. Even though they
Decision – established after global set up different division set
making expansion over different up in different parts of USA,
continents, the main decision all the main decisions were
making power was still with taken from the headquarters
headquarters which reflects the which was in Japan.
control was centralized to
Japan headquarters.
( Collectivisim) (Individualism)
Japanese management is much Performance-based rewards.
more focused on relationships Traditionally, Toyota in
with their employees than rules Japan pays a large portion of
to ensure corporate goals are salary in semi-annual
met. bonuses, but these are tied to
Chief engineers played a vital company performance, not
Motivation role in the organization. individual performance. In
All employees of all levels TTC ( Toyota Technical
were treated as knowledge Center) they developed an
workers individual bonus system
based on performance
Masculinity
Feminity
Japanese management is much All U.S. senior managers
Leadership more focused on relationships were assigned Japanese
with their employees, based on coordinators. The

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 rules to ensure corporate goals coordinators had two jobs:
are met. coordinating with Japan,
where there are continuous
technical developments, and
teaching U.S. employees the
Toyota Way through daily
mentorship. Every day is a
training day, with immediate
feedback shaping the
thinking and behavior of the
U.S employees.
High uncertainty avoidance
Communication Encouraged all employees to Conflict resolution is a
communicate in simple significant aspect of
language and encouraged them Toyota’s cross-cultural
to be a part of different clubs & communication strategy.
groups to share ideas amongst The company adopts a
them. collaborative approach to
resolving conflicts that arise
from cultural
misunderstandings or
differences, ensuring that
solutions are mutually
agreeable and that
relationships are preserved.
By understanding and
embracing the distinct
American corporate culture,
adapting to local

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 PART 2: CASE STUDY
ANALYSIS
In this assignment, you
are expected to draw on the
lectures and tutorials on
managing a diverse and
multicultural workforce.
Choose a multinational company (MNC) with a diverse and
multicultural workforce. Students are expected to address the following
issues:
1. Introduce the company’s history.
2. Based on the content covered in the course, provide examples of how
the MNC has performed managerial activities in a multicultural
environment.
3. Analyze the advantages and problems of managing a diverse and
multicultural workforce in the MNC.
4. On reflection, what advice would you give to that MNC to make the
best of its diverse workforce?
1. Overview of Coca- Cola Company:

COCA – COLA COMPANY

History of Coca-Cola company:

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Coca-Cola started in 1886, when pharmacist John Pemberton created a
caramel-coloured liquid and combined it with carbonated water. The rights to
the formula were bought in 1888 by businessman Asa Griggs Candler for just
$2,300, and the Coca-Cola Company (KO) was subsequently incorporated in
1892. Coca-Cola was first sold from fountains for 5 cents (3p) a glass, and by
1913, one out of every nine Americans had tried it. As competition began
entering the market, Candler sold the rights to bottle Coca-Cola – this
launched ‘the Coca-Cola system’, a franchise partnership that now exists
between the company and more than 250 bottlers worldwide. In 1916, the
signature Coca-Cola contour bottle was introduced to prevent the real drink
being confused with copycats – 100 years later and it is instantly recognisable
around the world.
In 1919, a group of businessmen led by Ernest Woodruff purchased The
Coca-Cola Company from Candler for $25 million. Later that year, Coca-
Cola made its initial public offering (IPO) on the New York Stock Exchange
(NYSE), for $40 per share. As of the 2016 annual report, Coca-Cola shares
have risen so that the company’s market capitalization is roughly $180
billion, and has had 53 consecutive dividend increases. At the end of 2015,
one share of KO stock purchased in 1919 (with dividends reinvested) would
have been worth $12,748,802, an annual growth rate of 14.11%.
Production:

Coca-Cola company is constantly transforming its portfolio, from reducing

added sugar in our drinks to bringing innovative new products to market. We
seek to positively impact people’s lives, communities and the planet through
water replenishment, packaging recycling, sustainable sourcing practices and
carbon emissions reductions across our value chain

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Beverage giant Coca-Cola is responsible for more than 200 brands of drinks,
from sodas to juices to kombuchas. Coca-Cola's reach extends worldwide,
and so do its corporate social responsibility efforts. The company is
concerned with sustainability and recycling, aiming to recycle 100% of its
plastic into new bottles, as well as water security and sustainable agricultural
practices.
Organization structure:

The Coca-Cola Company has a somewhat complex matrix organizational

structure with geographic divisions, product divisions, business-type units,
and functional groups. Product-based divisions help Coca-Cola manage a
portfolio of approximately 200 brands, while there are also various functional
groups to support business operations in multiple departments.

Department Type of Structure Details Advantages Drawbacks

Structure

Global Geographic Coca-Cola is Tailored approach Coordination

Business Structure organized into global to regional markets. challenges
Units business units Quick response to between
(GBUs) that oversee market demands. GBUs.
specific geographic Local market Potential

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Department Type of Structure Details Advantages Drawbacks
Structure

regions, including insights. duplication of

North America, Latin efforts.
America, Europe,
Africa, Asia-Pacific,
and Global Ventures.
Each GBU has its
own leadership and
adapts strategies to
regional market
needs.

Functional Functional Various functional Efficient use of Potential

Departments Structure departments like functional communicatio
marketing, finance, expertise. n challenges.
supply chain, and Streamlined Decision-
HR. These processes within making delays.
departments provide departments.
specialized expertise
in their respective
areas and support
global operations.

Coca-Cola Network Coca-Cola’s products Cost-effective Potential

Bottlers Structure are primarily distribution model. challenges in
distributed through Focus on core aligning
independent bottling competencies like strategies with
partners worldwide. branding and independent
The company’s core marketing. bottlers.
organization focuses Limited

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Department Type of Structure Details Advantages Drawbacks
Structure

on coordination, control over

marketing, and brand production and
management, while distribution.
bottlers handle
production and
distribution.

Corporate Functional Corporate functions Efficient resource Potential

Functions Structure like finance, legal, IT, allocation. disconnect
and sustainability. Consistency in from GBUs
These functions global operations. and bottlers.
provide centralized Standardized Limited
support and services processes. specialization.
to the entire
organization. Operate
independently from
GBUs and bottlers.

Strategic Hybrid Coca-Cola has Specialized product Potential

Business Structure various strategic focus and conflicts
Units business units (SBUs) innovation. between SBUs
responsible for Expertise in and functional
specific product specific product departments.
categories, such as categories. Complexity in
sparkling beverages, balancing
juices, and dairy. product and
SBUs combine functional
product-focused roles.
teams with functional

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 Department Type of Structure Details Advantages Drawbacks
Structure

expertise.

Ventures and Hybrid Ventures and Pursuit of new Complexity in

Investments Structure Investments division growth avenues and aligning
explores new innovations. innovation with
opportunities, Synergy between traditional
investments, and innovation and operations.
partnerships to drive financial expertis Potential risk
innovation and associated with
growth. It combines new ventures.
innovation-focused
teams with financial
and strategic experts.

Today, Coca-Cola operates in 200 countries around the world with 700.000
employes. To manage its vast global operations, many theories are applied in
their international management activities and it also faces many problems
managing a diverse and multicultural workforce.
2. Managerial activities of Coca- Cola company in multicultural
environment.

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2.1. Coca Cola’s leadership styles in multicutural environment.
2.1.1. Coca Cola’s leadership styles in Coca Cola’s home country – the USA.
a. Firstly, we discuss a little about the overview of key American cultural
values.
Key American cultural values are grounded in individualism, democracy, and
entrepreneurial spirit. Americans value personal freedom, self-expression, and
the pursuit of individual goals. Equality and meritocracy are celebrated, with
opportunities available regardless of background. The American Dream,
emphasizing upward mobility and success through hard work, influences
ambition. Innovation and risk-taking are encouraged, contributing to a
dynamic business landscape.
Open communication and directness characterize interactions, promoting
efficiency. These values impact American leadership styles, fostering
autonomy, participative decision-making, and a results-driven focus.
Understanding these values is crucial for effective leadership and
collaboration within American organizations and across cultural boundaries.
The aspect culture of indivisualism profoundly influences the American
leadership approach, emphasizing autonomy, personal initiative, and
empowerment. American leaders encourage employees to take ownership of
their tasks, fostering creativity and innovation. Decisions often involve
diverse perspectives, promoting participative leadership. Recognition of
individual achievements fuels motivation and career growth.
This approach aligns with the American belief in self-determination and the
pursuit of personal success. While fostering a sense of empowerment, it also
requires leaders to balance individual needs with the collective objectives of
the organization.
b. Charateristics of American leadership style

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- Emphasis on individual initiative: The American leadership style places a
strong emphasis on individual initiative, encouraging employees to take
proactive and innovative approaches to their work. Leaders foster a culture of
autonomy, empowering individuals to make decisions and contribute to the
organization’s success. This focus on individual initiative promotes a sense of
ownership, accountability, and personal growth.
It aligns with the American value of self-reliance and the belief that individual
contributions drive collective progress. Successful American leaders inspire
and reward independent thinking, enabling organizations to adapt swiftly and
thrive in dynamic environments while leveraging the diverse talents of their
workforce.
- Egalitarianism and participative decision-making: Egalitarianism and
participative decision-making are core elements of the American leadership
paradigm. Leaders value input from all levels of the organization, fostering a
democratic and inclusive approach. Employees are encouraged to voice their
opinions, contributing to a diverse range of perspectives and innovative
solutions. This collaborative decision-making style enhances engagement,
morale, and a sense of ownership among team members.
Egalitarian values drive the belief that every individual’s contribution is
valuable, regardless of their position. By involving employees in decisions,
leaders tap into a wealth of collective knowledge, enabling organizations to
adapt swiftly and make informed choices while upholding the democratic
spirit of American leadership.
- Goal-oriented and competitive nature: The American leadership style
embodies a goal-oriented and competitive nature, prioritizing achievement
and continuous improvement. Leaders set clear objectives, motivating teams
to strive for excellence and measurable results. This competitive spirit fosters

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innovation and drives employees to exceed expectations. Healthy competition
is encouraged, pushing individuals to maximize their potential while
contributing to the organization’s success.This approach aligns with the
American value of progress and a merit-based society, where achievements
are rewarded. Effective American leaders harness this goal-oriented mindset,
channeling it towards collective goals and leveraging the inherent drive for
success to propel organizations forward in the dynamic landscape of business
c. Leadership styles that Coca Cola company uses in its home country:
There are three main leadership styles democratic, autocratic and the laissez-
faire style.
 Democratic or participative
The democratic leadership style consists of the leader, sharing the decision
making abilities with the group members by promoting the interests of the
group members and by practicing social equality.
This emphasizes on group agreements to generate new ideas. There are two
types of democratic management styles; democratic and consultative
democratic. Democratic is where all the managers, junior managers and
employees are involved in the ideas and final decision process. Out of all the
workers, no-one has a higher level than the others in this management style.
Democratic style is the management style that Coca-Cola adopts. This sort of
management style involves empowerment. In this management style
individuals and teams are given responsibilities and decisions to make,
usually within a given framework. If anything wrong happens then the
individuals and teams are then held responsible for the decisions that are
chosen. With this type of management style it allows the manager to feel
comfortable with other people in the organization making some of the
decisions. Democratic managers will often want feedback from their

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employees on decisions being made. Democratic leaders listen and act on the
opinions of the group. This type of management is good as it makes the
employees happy and productivity is high. This is a very good method
because employee's thoughts and suggestions are listened to by the business.
This makes the employees seem as if they are respected and that their
thoughts are valid. Feedbacks from managers at Coca-Cola’s bottling system
across the globe provide vital information that is incorporated in their
strategies.
 Autocratic or authoritarian
The authoritarian leadership style or autocratic leader keeps strict, close
control over the followers by keeping close regulation of the policies and
procedures given to the followers. To keep main emphasis on the distinction
of the authoritarian leader and their followers, these types of the leaders make
sure to only create a distinct professional relationship.
Where the leader makes all the decisions, there is no negotiation and is very
prescriptive and there is little job satisfaction. However, the job gets done
quickly and there is less conflict between different ideas. This style is hardly
used among the company as they believe that the lack of input could lead to
poor results. Autocratic does save a lot of time as quick decisions can be
made and there is no time wasted on discussion resulting in the business
saving time and money.
On the factory floor at Coca-Cola, there is an autocratic system of
management where the employees are controlled by the managers and follow
their procedures.
 Laissez-faire management style
The Coca-Cola Company has a culture that is run in the laissez-faire style
meaning the ‘hands off’ approach. The laissez faire style is sometimes

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described as the "hands off" leadership style because the leader delegates
tasks to their followers, while providing little or no direction to the followers.
If the workers are meeting their Key Business Indicators, then the managers
and the directors of the company take this relaxed style of coordinating their
business. They have a vision to ‘refresh everyone everyday ’and the values
‘to take pride in their work , to be honest , fair and determined to win and
have a passion for their actions’.
2.1.2 Coca Cola’s leadership styles of Coca Cola company in China
a. Overview of China cultural value:
Traditional Chinese cultural values are deeply rooted in Confucian principles,
emphasizing harmony, hierarchy, and collectivism. Respect for elders and
authority figures is a cornerstone, influencing interpersonal relationships and
leadership dynamics. Filial piety and loyalty to the group drive a sense of
responsibility and duty.
The concept of “Guanxi,” or building strong personal connections, is integral
to business interactions. Face-saving, humility, and indirect communication
characterize social interactions. These values profoundly impact leadership
styles, fostering a team-oriented, relationship-based approach that seeks
consensus and maintains stability within the group. Understanding these
values is crucial for effective cross-cultural leadership in Chinese contexts.
Confucian principles significantly shape leadership behaviors in Chinese
culture. Ren (benevolence) guides leaders to exhibit compassion and
empathy, fostering strong relationships with their teams. Li (propriety)
encourages leaders to set exemplary standards, influencing ethical conduct
and integrity. Xiao (filial piety) and loyalty promote respect for authority,
reinforcing hierarchical structures and obedience. Zhong (loyalty) and Shu
(reciprocity) cultivate trust and reciprocity within teams.

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These principles underpin the Confucian ideal of a harmonious society,
impacting leadership styles characterized by collectivism, consensus-building,
and a focus on maintaining stability and social order.
b. Charateristics of Chinese leadership style
 Collectivism and team-oriented approach
Collectivism and a team-oriented approach are hallmark features of leadership
in Chinese culture. Emphasizing the greater good over individual aspirations,
leaders prioritize cohesive group dynamics and shared goals. Collaborative
decision-making and consensus-building are central, ensuring input from all
team members. The leader’s role is to facilitate unity and mutual support,
fostering a sense of belonging and loyalty among team members.
This approach leverages diverse strengths and encourages shared
responsibilities, promoting a harmonious and efficient working environment.
Understanding and embracing this collectivist ethos is vital for leaders aiming
to navigate and excel in Chinese cultural contexts.
 Hierarchical structure and respect for authority
Hierarchical structure and unwavering respect for authority are integral facets
of leadership in Chinese culture. Leaders occupy positions of significance,
embodying wisdom and experience. Subordinates display deference and
obedience, acknowledging the leader’s superior knowledge. This structured
approach ensures clear lines of communication and decision-making,
reducing ambiguity.
Respect for authority fosters a disciplined work environment, where
instructions are followed diligently. The hierarchical framework also
facilitates mentorship and guidance, enabling the transfer of knowledge from
experienced leaders to emerging talents. Navigating this hierarchical

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landscape with cultural sensitivity is essential for effective leadership and
harmonious interactions within Chinese organizations.
 Harmony and relationship-building
Harmony and relationship-building hold paramount importance in Chinese
leadership. Leaders focus on nurturing strong interpersonal connections,
emphasizing trust, empathy, and cooperation. The concept of “Guanxi”
underscores the cultivation of enduring relationships, both within and outside
the organization. Leaders prioritize maintaining a harmonious atmosphere,
valuing consensus and avoiding confrontation.
This emphasis on relationships extends beyond the workplace, contributing to
a cohesive society. Effective Chinese leadership involves skillful negotiation
and conflict resolution, often prioritizing the preservation of relationships.
Understanding and practicing these relationship-centric principles is essential
for leaders seeking success and cultural integration in the Chinese business
landscape.
c. Leadership styles that Coca Cola company uses in China: Paternalistic

Coca-Cola, like many multinational corporations, adapts its leadership styles

to fit the cultural context of each country where it operates. In China, where
hierarchy and collectivism are traditionally valued, Coca-Cola likely employs
leadership styles that emphasize teamwork, harmony, and respect for
authority. In China, Coca – Cola mainly uses paternalistic leadership styles.

Coca Cola empowers its Chinese employees to innovate and contribute to the
development of new products tailored to local tastes. They encourage
creativity and provide resources for experimentation. Coca – Cola leaders in
China often provide clear direction and make decisive decisions and
instructionn to ensure that organisational goals are met efficiently.

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Beside work- centered behaviour, Chinese leaders take many measure to care
and motivate their employees. Coca-Cola also promotes the Management
Trainee Program in China, where it provides world-class career development
opportunities for fresh college graduates. Every new class of trainees consists
of around 10 candidates for a three-year program. During those three years,
trainees transfer between different business functions, helping to bolster their
professional capability quickly within the Coca-Cola China system. The best
benefit about the Coca-Cola Management Trainee Program is that it provides
staff with broad opportunities to explore and to learn, contributing to their
career development and individual growth, provide collaborating
opportunities with colleagues from different backgrounds. They inspired and
contributed invaluable insights for their own career path. Their talented staffs
are assured to get deserve promotion: outstanding Chinese employees are
assigned to positions at headquarters or other markets, forming a strong talent
pool for Coca-Cola’s global network and setting up a healthy mechanism for
talent exchange.

To support the well-being of our Coca-Cola employees, They offer a variety

of global programs and incorporate well-being practices into daily routines.
These include:

 Mobile and digital platform offering options to track activity and

habits, participate in challenges, get daily well-being tips, and access
digital coaching pathways.
 Mindfulness app supporting staffs’mental well-being through
meditation sessions and courses that help with issues from sleeping
difficulties to reducing stress to boosting overall mood and outlook.

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  Mental health support program providing free counseling sessions and
support for a range of personal and professional challenges.
 Financial education & learning program offering assessments, online
courses, articles, videos, calculators and tools to help you plan for your
financial future.
 On-demand fitness app providing access to hundreds of on-demand
fitness classes in a range of activities, including running, cycling, HIIT
training, strength training, yoga, boxing, barre, and more.

2.2. Motivation of Coca- Cola in multicultural environment:

Cocacola used Maslow theory in motivating its employees:

2.2.1. How CocaCola motivate employees in Viet Nam:

They motivate their worker mainly based-on physiological and safety needs in
Vietnam. (through salary, bonus rewards, shelter, commute, food, health
program)
Coca Cola Vietnam not only develops internal resource through a
comprehensive remuneration system to create opportunities for employment
and training for employees. Staff members can maximize their development
in a comfortable, creative environment. With this system, Coca Cola Vietnam

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helps employees to assess, reward and enjoy benefits that commensurate with
their capabilities. Coca Cola Vietnam's welfare policy is extremely attractive
in terms of employees’ salaries, healthcare, accommodation and and
transportation.
In addition to the 13th month salary, employees also receive annual bonuses
based on work achievements and business results; free lunch with a refreshing
and extremely attractive daily menu, workers can also increase lunch rations,
strictly control input materials; convenient shuttle bus system to and from
different districts in Hanoi, Da Nang and Ho Chi Minh City; all employees
are allowed to attend a free gym and yoga class.
In 2017, the organization of new programs such as the New Generation
Leader, the Coke Spark Talent Recruitment Program or the Super Brother
Program, is done for the purpose of creating the working environment that
suits employees’ desire. This is also an opportunity for employees to openly
express themselves. Coca Cola Vietnam has become one of the top companies
in Vietnam with best working environment. Coca Cola Vietnam is also
situated in the list of the top 5 best places to work in Vietnam in 2017, and
ranked 4th in FMCG industry with the best working environment
2.2.2. How Coca- Cola motivate employees in Japan:
Hofstede's cultural features show that the method by which Coca-Cola is run
in Japan is distinct from the way it is run in Viet Nam. A lack of power and a
desire to avoid doubt are big problems in Japan. People appreciate authorities,
and they do best in organised settings (Kumar et al., 2023). Japan has a huge
power gap, common values, and a focus on the long term, all of which have a
significant effect on how Coca-Cola operates in Japan. The golden rule is a
fundamental value in Japanese culture, and everyone at Coca-Cola Japan
follows it. The method rewards workers for being loyal and subservient while

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encouraging unified decision-making (Bai, 2023). Even in Japan, Coca-Cola
encourages people to work together and agree to an agreement as a way of
accomplishing shared goals. Japanese values of tradition and identification
are a good fit for Coca-Cola's focus on building relationships that last.
Most Japanese belong to love/belonging, esteem and self-actualization in the
Maslow Theory. Understanding that, Coca-Cola has many ways to motivate
employees in Japan.
- More female leaders: The number of female workers who are in the top
position such as a politics is extremely low. Coca Cola company believes it is
important to focus on the promotion of female activities. “Female next leaders
program are organised in Japan since many women lack self-confidence or
have never thought about becoming a manager. Moreover, Coca Cola
promotes their female by a lot of activities: besides the 13 th month salary,
employees also receive annual bonuses based on work achievements.
- Freshman program: Japanese culture is more likely to honour seniority.
While many Japanese young wonder why does age matter for promotion.
CocaCola implimented Freshman Program in Japan for the development of
younger employees, promote them to managers even before the age of 30.
- Related to esteem needs: Japanese cultures had traditional ways of thinking:
hard working and long working hours are prope, justified and beautiful.
Therefore, Coca Cola understand these traits, they allow their worker no
longer under too much pressure when choosing clothes for work, casual
chothes are acceptable.
For the purpose of encouraging each and every employee to proactively think
about their own career and their supervisors to support their capability
development achieve them, Coca cola in Japan conducts the Career plan or
Development plan once a year. They have established a reward system to

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support each employee's "I want to learn!", and are rolling out about 500
different courses such as you can see that Coca Cola have 3 main courses
such as: Elearning, online english lessons and Text book based
correspondence. Coca cola also has courses which allow participants to gain
skills that match each business needs in methods according to the study style
of each employee, to deepen expert knowledge on areas of interest, and to
obtain qualifications.
3. Coca Cola’s advantages and disadvantages of managing a diverse and
multicultural workforce.
3.1. Advantages:
- Enhancing creativity: Our culture influences the way in which we see the
world. Therefore, when Coca Cola operates across multicultural environment,
a variety of viewpoints along with the wide- ranging and professional
experience of an international team can offer new and diverse perspectives for
problem solving and conducting projects.
Multiple voices, perspectives, and personalities bouncing off one another can
give rise to out-of-the-box thinking. By offering a platform for the open
exchange of ideas, businesses can reap the biggest benefits of diversity in the
workplace.
- Enhance relationship with customers:
A multicutural workforce can give Coca Cola an important edge when they
expand their markets. Understanding local laws, regulation and customs as
wel as the competitve landscape can help Coca Cola to thrive. Moreover,
local connections, native language skills, and cultural understanding can boost
international business development exponentially.
Multicutural workforce can immensely strengthen a company’s relationship
with some specific group of customers by making communication more

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effective. This is particular important in customer service, where pairing
representatives with customers from the same area or location can comfy
them and make them connected to the company.
- Multicutural diverse group can prevent groupthink, which is caused by
social conformity and pressure on individual members of a group conform
and reach consensus. When group thinking occurs, group participants come to
believe that their ideas and actions are correct and that those who disagree
with them are either uniformed or deliberately trying to sabortage their
efforts. Multicultural diverse group are able to avoid this problem because
members from distinct cultures don’t think simmilarly or feel pressure to
conform. As a result, they typically question each other, offer opinions and
suggestions that are contrary to those held by others, and must be persuaded
to change their minds.
3.2. Challenges Coca Cola faces when managing muticutural workforce:

In a Multicultural Organization the people who are most vulnerable to the

situation are the employees facing it. Employees who have come together
form different parts of the world, with different backgrounds, with different
code of ethics, have to work with each other and set aside their differences.
The company has many benefits as it is, but these individuals have to face
many hardships in such an environment. Most of these challenges are due to
communication problems, for example language barrier, cultural shock,
attitude toward conflict resolution and non-verbal language.
- Language Barrier and inaccurate communication: Most common problem
found in Multicultural Organization is Language barrier as employees have
more probabilities of meeting and dealing with the people of other languages.
There is no contradicting the fact that English is the dialect of the modern
financial world; and it has become an official standard language for business

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all over the world; but, because of this many non- English speakers can be
ignored and unrewarding because of their ineffectiveness to communicate and
understand English, and thus deliver what they want to say. Even sometimes,
there are probabilities that the managers take a backseat as they are unable to
convey their message sideways.
- Stereotyping or inaccurate bias:
Stereotyping is the conception that we have about a certain set of people and
their culture, value conclusions, overestimation or over-exaggerations. These
typecasts are the main reasons for difference of sentiments about the differing
culture and leads to miscommunication. The popular examples of such
typecasts are: Spanish people are ill-tempered and prejudiced; British are
business men; Japanese are forward-looking, Chinese people make work their
faith, Swiss people like precision, and Brazilians are always late. All these
thoughts are stereotypes against a country and its people, which can
negatively affect the working environment or future staffs. Because of such
already-made beliefs, an employer can exhibit biasness and make a mistake in
hiring and firing process.
- Cultural Relativism:
Another problem faced by employees mangagement in Coca Cola is Cultural
Relativism also known as Ethnocentrism. We can define Ethnocentrism as a
cultural superiority complex: excusing that one’s own culture or group
behavior is progressive compared to all the other groups. It is an arrogance
wherein one’s own cultural experience inadvertently makes us to feel that our
culture is unique. This feeling further increases the level of the anxiety, which
in turn affects the efficiency of the working culture. The staff faces a lot of
issues due to ethnocentrism. Ethnocentrism hampers with collaboration to
other cultures and proves to be a barrier of communication. International

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employees need cultural understanding of local conditions to increase
competence and efficiency. Cultural relativism is the faith where one
compares the ideals and manners of target cultures and measures them against
the customs of what's inappropriate and what's right. This becomes a problem
when one supposes that cultural medians, customs and ethnicities are not right
if they diverge from those of the other culture.
- Conflict Resolution Approach:
Approach toward conflict play a dynamic role for the working environment,
particularly in the team work. The different beliefs of the world decide
clashes in the different ways. For example, the people of United States like to
solve it openly, and face-to-face; whereas, for Easterners, they like to resolve
the conflicts quietly or silently. Such diverse approach towards conflicts can
be very hard for some people to handle.
- Task Competition Approach in which perception of time is different.
Westerners undertake one assignment at a time, and they are distinctive;
whereas, the Asians and African accomplish many tasks at a time, and they
are more into team work. Distinctive cultures like United States and France
are more self-centered and accentuate mostly on their individual goals. People
from individualistic cultures tend to think only of their personal goals. They
stress on their accomplishments in job or private wealth and aim up to reach
more and/or a better job position. As compared to that, collectivistic cultures
have a great importance on groups and think more in terms of "we" rather
than “I”. For collectivists, coherence and loyalty is very important and is
always maintained and conflict is avoided. In China, it is out of the question
to strike down someone's view in public. One has to do that in a more
reserved and personal atmosphere to protect a person from the embarrassment
to lose face. In collectivistic cultures, a direct clash is always sidestepped.

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Such terminologies or phrases are used which define a disagreement or
negative statement instead of saying a clear no. The association between
employer and employee or business partners is based on mainly reliance,
coordination, and a deep understanding of ethical values.
4. Suggestions for Coca Cola to make the best of its diverse workforce:

- Creating innovative environment: Multicutural team is most effective when

they face task requirinng innovativeness, they are far less effective when they
are assigned to routine task. Therefore, creating an innovative enviroment is
very crucial for Coca Cola. This can be conducted through organising
workshop; or providing training program, knowledge sharing. Coca Cola can
offer trainning programs on advanced technology which can be used to foster
productivity. This company can also set up forum for sharing new ideas for
projects or organising competition in which the innovative person will be
promoted and rewarded deservely. All staffs should be empowered fairly to
voive their plan and ideas for any projects. As we can see from Japanese
culture (Kaizen), any suggestion whether it is big or small which can create
effectiveness for company will be given a bonus. We can learn from this.
Moreover, the decentralized decision-making is neccesary for Coca Cola’s
employees to make decisions and have experiment with their new ideas
without excessive bureaucratic oversight. When they are encouraged to take
the ownersip of their projects and innitiatives, this provide them with the
autonomy to innovate more. Leadership should celebrate failure and
normalize failures as learning opportunities and creat a culture where
employees feel safe to take risk.
- Establishment of equal power and mutual respect among members:
Members must have equal power to participate in process. The managers of
teams should distribute power based on each person’s ability and strength, not

32
base on ethnicity. It is also important that all members have mutual respect
for each other. This is often accomplished by managers choosing members of
equal ability, making prior accomplishments and task-related skills known to
the group, and minimizing early judgments based on ethnic stereotypes. This
can be achieved by announcing new projects to all teams’ member and then
each members are encouraged to submit their ideas in group meetings. To
connect all group members, Coca Cola can organize bonding activites like
sport competions, parties, picnics, ....
- Leader should be motivators and decision maker: Because members of
diverse teams tend to have more difficulty agreeing on their purpose and task
than members of hommogenous groups. The team leader’s role now is
indentifying the group’s goal and make informed decision based on group’s
goal. Because teams often have difficulty determining what is a good or a bad
idea or decision, managers must give teams positive feedback on their process
and output. This feedback helps the members see themselves as a team, and it
teaches them to value and celebrate their diversity, recognize contributions
made by the individual members, and trust the collective judgment of the
group.

PART 3. COURSE REFLECTION

Multicultural and transnational management course provides new knowledge

about the strategies that multinational companies use in management
activities when they expand their business activities abroad. How will cultural
differences between countries affect MNCs' management activities
(leadership; decision making; communication and negotiation; motivation and
human resource management). Therefore, MNCs can determine appropriate
management policies for each country they expand their operations to. In

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addition, students can also understand which theories are applied in each
management activity.

Two models of the cultural dimension that impress me are Hofstede's model
and Trompenaar’s model. Thanks to the model, I can see the differences in
the same aspect of different cultures. Thanks to it, I can see how those
differences affect the management activities of transnational companies in
different cultures. In addition, we can acess many other novel models and
theories like Maslow’s model for motivation activies in MNCs.

We not only acquire knowledge through lectures but also practice those
knowledge units by working in groups, applying analytical strategies through
a specific business. Therefore, students can simultaneously practice teamwork
skills and presentation skills. Members can coordinate smoothly based on
each member's different strengths and complete group exercises effectively.

In particular, lecturer Phuong Linh also organized a very useful lesson with a
guest speaker. The guest shared very useful experiences in carrying out
management activities in a multicultural environment, although a few guest
speakers spoke a bit fast, causing us to encounter a bit of a language barrier.
Hopefully in the future, the after-class module can continue to invite guests
with such quality sharing.

Regarding the lecturer, from my perspective, I can feel the lecturer's youth,
enthusiasm, happiness, and approachability. Youthfulness and the ability to
speak English fluently and easily attracted students' attention in the lecture;
makes the lecture not boring. Particularly my best impression is the lecturer's
cultural understanding, which helped me remember that cultural differences
greatly affect the international business management activities of

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MNCs. During course, I received consciencious and helpful guide from Ms
Phuong Linh for both my group assignment and private final assignment. I
want to say that I highly appreciate your help.

REFERENCES:

1. Biljana Đorđević, 2016, Impact of national culture on

international human resource management, Economic themes, 54(2): 281-
300.
2. Dr. Nguyen Hoang Tien, 2019, Staff motivation policy of foreign
companies in Vietnam, Journal of Research in Human Resource Management,
1(2): 07-10
3. Dao Phu Quy, 2010, Theory of A. Maslow's needs with motivating workers,
Journal of Science VNU, Economics and Business, 78-85.
4. Ekene Ezinwa Nwankwo and cooperators, 2024, Cross-cultural leadership
styles in multinational corporations: A comparative literature review,
International Journal of Science and Research Archive, 11(01), 2041–2047.
5. HROne, 2023, Leadership Styles in Different Cultures: Chinese vs.
American Approach, https://hrone.com/blog/leadership-styles/ (accessed
10/06/2024)
6. Longxinyang Li1, 2023, Cultural Influences on Business Practices:
Motivation, negotiation, and partnership in Japanese Companies, Paradigm
Academic Press Law and Economy, vol.2, no.8, 42-48.
7. Mingji Liu and Jinyao Li, 2021, Intermediary management and employee
corporate culture identification mediation and mediation effect verification,
Employee Corporate Culture Identification Mediation,

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8. The Coca-Cola Company, Our business strategy, priorities, and leadership
model,https://www.cocacolacompany.com/content/dam/company/us/en/polici
es/pdf/employment/coca-cola-business-strategy-leadership-model-december-
2020.pdf.
9. Tianxiang Yao, 2011, The effects of Chinese Culture on Internal
Management and Marketing Strategies: Case Study on Coca-Cola (China) and
NEC (China), https://www.diva-portal.org/smash/get/diva2:513578/FULLTEXT03

(accessed 11/06/2024)

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