INTERCULTURAL MANAGEMENT

• Introduction
• Intercultural management
• SWOT analysis of Coca cola
• Recomodation
THE WORLD WE LIVE AND WORK IN IS NOW INCREDIBLY INTERNATIONAL. WE HAVE NEVER BEEN MORE LIKELY TO WORK
AND LIVE ALONGSIDE PEOPLE FROM DIFFERENT BACKGROUNDS TO OUR OWN. CULTURAL DIFFERENCES, BASED PRIMARILY
UPON NATIONALITY, AND REGIONAL HERITAGE, FORM AN IMPORTANT DIMENSION TO THE DIVERSITY WE EXPERIENCE
TODAY. CULTURE ALSO CAN BE SEEN WITHIN INDUSTRIES, SECTORS OF BUSINESS, OCCUPATIONS OR PROFESSIONS AND
SPECIFIC ORGANISATIONS THEMSELVES. THIS MODULE WILL FOCUS PRIMARILY ON NATIONAL CULTURAL DIFFERENCES AND
WILL INTRODUCE YOU TO HOW SUCH DIFFERENCES CAN BE UNDERSTOOD AND MANAGED. IN ADDITION WE WILL EXPLORE,
AND ENCOURAGE YOU TO DEVELOP SKILLS, WHICH WILL HELP YOU WORK AND LIVE EFFECTIVELY ALONGSIDE OTHER
CULTURES. THIS MAY PROVE QUITE CHALLENGING ON A PERSONAL AS WELL AS AN ACADEMIC LEVEL, BUT SHOULD PROVE
REWARDING FOR YOUR INTERNATIONAL CAREER.

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Intercultural Management
The intercultural management can be defined by the
organizational response of companies in order to
adapt to the labour market and manage human
resources. In addition, it is often described as the
process of adopting human resources policies and
practices that aim to create an inclusive work
environment where diversity is embraced, where
differences are respected and where the full
participation of all staff is encouraged. Correlation
between the management of intercultural diversity
and the performance of the company Indeed, a
company gives itself a strategic and competitive
advantage if it incorporates the principles of
diversity management. A team made up of people of
several nationalities can therefore constitute an asset
and an asset for a company.
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Intercultural management comes in the context of the relocation of
teams, confrontation "micro-cultures" professional following an
acquisition or a corporate merger, employee mobility, increased
trade, the creation of subsidiaries abroad, the proliferation of
partnerships and cross-border bilateral agreements, offshoring,
etc., are all contexts that require intercultural management capable
of forging a strong and lasting social link, by opting for a mode of
operation favouring diversification profiles within organizations.
Intercultural management, when it is mastered and relevant,
allows companies to make the most of new talents, whatever their
origins, to gain in competitiveness and guarantee long-term
development

Culture shapes management practices. In the United States, for

example, the approach to work is very practical and task-
orientated, where niceties can be left out in email communication
among colleagues for the sake of time-saving efficiency.

More than just awareness, Intercultural Management is an

understanding and respect of other cultures within an international
context. In practice, it means cultural differences being
acknowledged and managed openly, rather than ignored.

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 COMPANY: THE COCA-COLA COMPANY
 CEO: JAMES QUINCEY
 YEAR FOUNDED: 1886
 HEADQUARTER: ATLANTA, USA
 NUMBER OF EMPLOYEES (DEC 2019): 86,200
 PUBLIC OR PRIVATE: PUBLIC
 TICKER SYMBOL: KO
 MARKET CAP (OCT 2020): $218.25 BILLION
 ANNUAL REVENUE (DEC 2019): $37.27 BILLION
 PROFIT |NET INCOME (DEC 2019): $8.92 BILLION

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STRENGTHS
Strong brand identity – Coca-Cola is a highly popular brand with a
unique brand identity. Its soft drinks are the most-selling drinks in history.
Extended global reach – It is sold in more than 200 countries with 9
billion servings per day of Company products. It has introduced more
than 500 new products globally. Some of these are variations of Coca-Cola
beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are
known to touch every lifestyle and demography.
Greatest brand association and customer loyalty  diabetes. Coca-Cola is the biggest manufacturer of carbonated beverages.
SWOT Analysis
OPPORTUNITIES of
Introduce new products and diversify its segments – Coca- Coca-Cola
Cola has the opportunity to introduce new offerings in health and
food segments just like Pepsi. It can contribute to their revenue,
and they can branch out from carbonated drinks.
Increase presence in developing nations – Many regions with
hot climate have the highest consumption for cold drinks. Thus,
increasing presence in such locations can be excellent – Middle
Eastern and African countries are a good example.
Bring advanced supply chain system – Coca Cola’s business is
entirely dependent upon logistics and supply chain.
Transportation costs and fuel prices are always on the rise. Thus,
coming up with some advanced and improved systems for
distribution can be an opportunity.
Packaged drinking water – Coca-Cola owns several packaged
drinking water brands like Kinley. There is a great potential for
expansion in this segment for Coca-Cola. There is an opportunity
to expand and bring more healthy drinks in the market to avoid
WEAKNESSES
Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-
Cola. Had it not been Pepsi, Coca-Cola would have been the clear market
leader in the beverage.
Product diversification – Coca-Cola has low product
diversification. Where Pepsi has launched many snacks items like Lays
and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi leverage
over Coca-Cola.
Health concerns –Carbonated drinks are one of the major sources of
 sugar intake. It results in two grave health issues – obesity and
Many health experts have prohibited the use of these soft drinks. It is
a controversial issue for the company. However, Coca-Cola hasn’t
devised any health alternative or solution for this problem yet.
THREATS
Water usage controversy – Coca-Cola has faced many criticisms over its water
management issue. Many social and environmental groups have claimed that the
company has a vast consumption of water in water-scarce regions. Besides,
people have alleged that Coca-Cola is polluting water and mixing pesticides in
water to clear contaminants.
Packaging controversy – Greenpeace censured Coca-Cola in its published
report in 2017 for its use of single-use plastic bottles. It has also been criticized
over its recycling and renewable sources.
Direct and indirect competition – Although direct competition from Pepsi is
clear in the market, however, there are many other companies which are
indirectly competing with Coca-Cola. Starbucks, Costa Coffee, Tropicana, Lipton
juices, and Nescafe, are the indirect competitors of Coca-Cola which can threaten
its market position.
RECOMMENDATIONS

BASED ON THE ABOVE SWOT ANALYSIS OF

COCA-COLA, WE CAN CONCLUDE THAT COCA-
COLA HAS A DEFINITIVE MARKET POSITION IN
THE SODA INDUSTRY. HOWEVER, IT IS
RECOMMENDED TO BRING MORE INNOVATIVE
CHANGES.
SOME RECOMMENDATIONS ARE EXPLAINED AS
FOLLOWS:

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1.STEPPING INTO THE FOOD MARKET – COCA-COLA NEEDS TO 
INTRODUCE NEW PRODUCTS IN SNACKS AND FOOD SEGMENTS.

2. FOCUSING ON HEALTH-RELATED MATTERS – IT SHOULD BRING SOME SOLUTION

TO ADDRESS THE RISING HEALTH CONCERNS FROM SOCIAL ACTIVISTS.
3. IMPROVING ITS WATER MANAGEMENT SYSTEM AND DEALING WITH THE CRITICISMS
FROM ENVIRONMENTAL AGENCIES.
4. EXPANDING INTO DEVELOPING COUNTRIES WITH HUMID TEMPERATURES – THERE
ARE MANY PRODUCTS OF COCA-COLA LIKE FUZE TEA, DASANI AND HI-C WHICH AREN’T
DISTRIBUTED IN MANY DEVELOPING COUNTRIES. COCA-COLA NEEDS TO INCREASE THE
DISTRIBUTION OF SUCH PRODUCTS.
5. INCREASING THE DISTRIBUTION OF PACKAGED DRINKING WATER LIKE KINLEY.
6. WORKING ON SUSTAINABILITY AND GREEN MARKETING IT CAN IMPROVE ITS BRAND
IMAGE IN THE MARKET.
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 THANK YOU FOR
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