21st Century Coca Cola globalization in Myanmar
Task: You are hired as a management consultant for a chosen organization in your home country (Coca Cola, in Myanmar). As a consultant, you are assigned to study the impact of globalization and make interventions addressing the following:
Evaluate how drivers of globalization in the 21st century has affected your organization (Coca cola) and the people of your country in Myanmar. Discuss of competitive drivers, technology drivers, government drivers, market and cost drivers. [1,500 Words]
1. Analysis of the demographic, political and social processes that cause changes in the global world today. [1,500 Words]
2. Critically evaluate how globalization has affected the inequalities in various countries in the 21st century world (you may choose three or more countries around the world). [1,500 Words]
3. Discuss how the organization would cope with the challenges of expatriate management of the employees of the chosen organization relocating to various locations around the world (choose two different countries where your employees would be relocating with their spouse and children). [3000 Words]
The present study sheds light upon the concept of Coca Cola globalization within the various parts of the world and the ways it has affected the economic, politics and culture system of the various countries. However, the main focus of the study consists of the intervention and impact of Coca Cola globalization that has expanded its business in third world countries like Myanmar which is still developing in all fronts. The study also discusses the competitive technology, government and market drivers of the Coca Cola globalization that has affected the people of Myanmar. It also analyses the political, social and demographic princess that has caused changes within the global world. The study even evaluates the effects of Coca Cola globalization upon the inequalities in various countries of the world and even on the first world countries. Lastly, it discusses the ways within which the organisation can cope up with the challenges of expatriate management regarding the employees of the Coca Cola Company relocating in various locations of the world.
In the 21st century, Coca Cola globalization refers to the process of integration and interaction among the individuals, organisation and the governments of the different nations and is the process that is driven by international investment and trade and is aided by information technology. As stated by Hopper et al., (2017), it is the interconnectedness of people and the business that eventually leads to the global integration of the economy, politics and culture. Thus, it helps in enhancing the ability of moving and communicating with ease as with others within the world in the procedure of conducting internal business. Moreover, this process has a large impact upon the environment, political system, culture, development of the economy and prosperity along with the physical well-being of humans within societies all across the world. Thus the present study focuses upon the impact of Coca Cola globalization and its intervention within the company in Myanmar and the other countries of the world and the ways in which the countries should cope with the challenges or the advantages possessed by this process.
Drivers of globalisation affecting Coca-Cola organisation in Myanmar along with other people
According to Perraton, (2019, p. 30), the process based on Coca Cola globalization tends to affect the work and business organisations; socio-cultural resources; economics as well as the natural environments for every country that is known to enter within the world market. Myanmar has also experienced the similar process after entering within the global market. Nevertheless, there has been something regarding Myanmar which has not just been joining with the global economy, rather has actually been leaping within it. However, the respective country has been recently placed in an abrupt transition. There have been several bridges that are available within Myanmar such as the international organisations like Coca-Cola which also consists of the foreign laws of investment as well as planned zones of special economy along with different nations over their missionaries and the advisors with local experts.
As per the views of Wouters, (2020, p. 300) considered in the study of Coca Cola globalization, all of these accommodations, there has been one aspect which needs to be paid more attention which is known to be the ‘cultural leap’. This involves working habits along with the mindset of the human resources as well as the motivation, which can be able to produce along with delivering the organisational goals. Thus, Myanmar consists of its own exceptional cultural characteristics while coming for the organisational systems along with the human relations which tend to function with the team.
The long-term commitment based on Coca Cola globalization has been for generating a positive impact through bringing its global brands towards Myanmar and is also considered as Burma. Coke has been working for its establishment of a bottling entity within Myanmar which can combine the global expertise of the organisations through the capabilities for the local organisations of soft drinks. As put forward by Liu et al., (2019, p. 25), the collaboration has always aimed for bringing the best within the global system of Coca-Cola’s business practices towards Myanmar along with leveraging the existing talent of local business as well as insights of the market. The major intent has been to commence the local production quickly while building an initial agreement of distribution that has been established for making the product available across the country. Thus, Coca Cola globalization has been known to consist of a general practice based on operation being a local business within every market where it serves while involving distributing; selling; hiring and manufacturing locally. It has been evidenced that Coca Cola globalization affects the wages of the employees for the respective organisation leading to the free policies movement where the concerned organisation can be sought for outsourcing the cheaper labour through those people who can be readily available to work for a lower salary. Thus, it is stated in this study of Coca Cola globalization that there are several drivers of globalisation that tend to affect the concerned organisation of Coca-Cola in Myanmar. Some of these factors are mentioned below:
1.1 Technological drivers
As opined by Duarte et al., (2019, p. 300), technology has been known to shape along with setting out the foundation related to modern Coca Cola globalization. Innovations within the technology of transportation has also revolutionised the industry. Thus, the major developments within these for the respective company have been the commercial aircraft or jet along with the concept related to containerisation within the late 1980s and 1970s. Inventions have also taken place within the area of telecommunications as well as microprocessors, which has allowed a higher and effective computation along with communication within a lower level of cost. However, a rapid growth based on the internet took place, which comprises the advanced technological driver that has eventually created the global e-business along with e-commerce. Hence, Coca Cola globalization has realised about the natural resources, which are stressed along with the communities that are forced to do much more with less. For instance, it has introduced plant bottle technology which comprises the potential for the reduction of petroleum that have been used across the world as well as increasing use of renewable materials while helping to oversee the shared challenges of the global environment.
1.2 Government drivers
As put forward by Milford et al., (2019, p. 104313), it has been observed that the liberalised rules of trading along with the deregulated rules can result in the lowered tariffs as well as allowing the foreign direct investments across the whole world. Based on the foreign direct investment of Coca-Cola, it has resulted in being an integral part for investing to re-enter within Myanmar with a diligence process that marked to be the longest within the recent history of the organisation. The due diligence process has been in line with the businesses of United Nations along with the guiding principles of Human Rights working for the business. This has been conducted for ensuring the organisation Coca-Cola to understand the market; culture; and industry of Myanmar along with supporting its commitment for truly becoming a part of a local community. Accordingly, in Myanmar, Coca Cola globalization embeds with well-established standards for the workplace and human rights; code of the business conduct; policies; anti-corruption along with the principles for supplier guiding as well as other policies within the business practices.
1.3 Market drivers
As stated by Wouters, (2019, p. 150), as the domestic markets are known to become saturated, there have been opportunities regarding growth that are limited along with a global expansion which is not a way for most of the organisations in choosing to overcome the respective situation. As per the market of Myanmar, the respective organisation of Coca Cola globalization makes use of One Brand Strategy, which tends to extend the global equity as well as iconic appeal based on original Coca-Cola over the trademark while uniting the family of the company under the number one brand of beverage. While coming towards life within a global campaign that makes use of universal storytelling along with some everyday moments for connecting with the customers across the world.
1.4 Cost drivers
Costs along with sourcing efficiency tend to vary from one country to another along with the global organisations, which might take an advantage for the respective fact. However, as opposed by Hill et al., (2019, p. 10), there have been other costs related to Coca Cola globalization which have been the opportunity for building an economy of global scale as well as higher development of products that are known to cost in the recent days. While expanding with the market of Myanmar, the concerned company consists of larger and youthful population, which tend to provide a lower cost of labours, which is attractive towards the foreign direct investment. This helps in contributing to the output based on the sector along with driving its contribution for the economy as well.
1.5 Competitive drivers
Considering the global market, the global competitions of inter-firms tend to increase along with the organisations, which have been forced for an international play. A stronger interdependence within the countries along with higher two-way trades as well as FDI actions are also evidenced to support the respective drivers. The competition in Myanmar such as the other local soft drinks organisations are found to affect the ways through which Coca Cola globalization can operate. It tends to affect the advertisement; price and the programs related to sales promotion and similar other factors (Newell, 2019, p. 30). For instance, the major competition of the respective organisation has been Pepsi, comprising similar sales and pricing figures within the market.
Thus, the activities of Coca-Cola in Myanmar in regards to the lifting, based on the sanctions of US, have been governed through its global and established standards regarding the corporate ethics involving a strict adherence for the workplace policy rights as well as global human, principles of supplier guiding, code of the business conduct along with the anti-bribery policies. In recent years, Coca Cola globalization tends to reach out to Myanmar markets owing to the advantages based on its access to best-practiced technology in beverage industry, which can, in turn, improve the access over clean water along with posing health benefits, thus, aligning the actions with the philanthropic objectives of Coke. This has the capacity to outweigh any of the adverse impacts within the local organisations, culture and traditions and is thus, critical for the success of the organization.
As per the views of Brulle and Norgaard, (2019, p. 900), it has also been observed that Myanmar has been ripped with creativity which is because of the economy for making that place along its creativity trajectory. People within Myanmar hold much creativity while developing economies and products with some limited resources as per a closed system. The respective strength based on the culture should be cultivated in Myanmar by the respective organization for shifting its paradigm through isolation towards a globalised system. This made Coca Cola globalization to align its standards and policies as per the culture; creativity; business regulations and relations of Myanmar which made the organisation to identify common needs of the customers along with the opportunity for making use of the global channels of marketing as well as transferring the marketing for some extent which can result in choosing internationalization.
The company has also been involved within the social issues which have considered a different effort of marketing regarding the international team. As opined by Susman et al., (2019, p. 263), the organisation has provided relief as per the AIDS initiative of the UN. On the other hand, the organisation was also found to enter within the additional ventures of philanthropy along with sponsorships with co-marketing for the popular shows of television in Myanmar as well. Nevertheless, after entering within the market of Myanmar, Coca Cola globalization was found to adopt an international strategy of marketing where its international team constantly looks for a continuous improvement within its different kinds of strategies along with the ways through which the company can diversify the production and marketing as well as outreaching the methods.
Analysis of political, demographic and social processes causing changes in the recent global world
Global changes leads to an increased competition. This type of competition is able to be associated with the service and the product for its price and cost; technological advancements; target market; quick production as well as quick response through the companies and similar others (Káposzta et al., 2020, p. 530). When an organisation is seen to produce with some lesser cost along with selling cheaper, it is known to be able to increase its share of the market. It has been evidenced that the patterns related to the cultural Coca Cola globalization has been the way for spreading theories as well as ideas through a place to another. However, Coca Cola globalization has also been known to affect the world politically, demographically as well as socially for a wider scale. There have been some national boundaries regarding the flow of the services and goods along with the ideas and concepts.
Demography of Coca Cola globalization has been referred to as the distribution based on populations that might be defined within multiple levels such as global, local, national and regional. Demography can be a central component as per the societal contexts as well as social change. Within the course related to demographic transition, it tends to decline within mortality and fertility, which eventually causes some significant changes within the age composition of the population (Jorgenson et al., 2019, p. 554). Generally, the countries within the early stages based on the transition consist of a younger structure of age as compared with the other countries in the later stages. The global population has been growing much slower along with being stabilized within the respective century. As per the recent review of MIT technology in regards to the Coca Cola globalization, the overall big challenges of mega trends have been facing humanity within the next decades where the change of global demography has been much more predictable at a level, which can be most certain.
However, much has been known regarding the scale of challenge that is faced by humanity through the change of climate and the developments of AI. Nevertheless, there have still been some important queries related to the nature and timing of the respective challenges. However, the demographers are known to be certain about the changes that are faced by the growth rate of population as well as the structure.
Figure 1: Population size estimate
(Source: Hawlina et al., 2019, p. 140)
In case of Coca Cola globalization in Myanmar, it has maintained a steady growth of the population over the past century beside its battles for both in ending the rules of the British people along with the ongoing wars of civil society. The country has been known to experience a spike within its population in the year of 1960s. From that time, the nation has been known to grow though at a slower pace. The slow growth of population within Myanmar has been predicted for the continuation over the trajectory. The growth rate in the recent day has been within 1%, which might decrease within 0 by the year of 2050 as the forecast population based on 2020 has been 54,808,276. Thus, the target audience of Coca-Cola in Myanmar has been the youth generation and the youngsters (Desai and Rudra, 2019, p. 101744). The targeting of the Coca Cola globalization did not base under the genders however, the results indicate both the genders such as these products along with making use of it. This made the organisation consider each of its customers being a target or rather a potential customer. However, there have also been certain challenges that are faced by the organisations due to these changes which are mentioned below:
- One of the major challenges noted in this study of Coca Cola globalization is that few employees who might mean about the possibility to generate ideas and an ultimate driver related to the growth of productivity that can be limited.
- The demographics can drive automation within those areas which have not been ageing quickly. It has been evidenced that the impact based on demographics within productivity has been ambiguous as automation is already higher within the sectors for being more amenable for it along with the older countries and the industrial robots as well (Ali et al., 2019, p. 470). As the ageing economies are found to manufacture the robots along with exporting them, these respective technologies might substitute for the labour even within the countries that still consist of a growing workforce.
2.2 Political process
The political Coca Cola globalization has been seen within the changes like democratization for the creation of the world; moving beside the centrality of the nation state; creation of the global and civil society while specifically being the sole actor within the political field. This indicates that Coca Cola globalization to be a process through which goods; capital; labour and services cross the national borders along with acquiring the transactional character and is often accompanied through the flow of the related lifestyles; ideas; tastes along with the values over the boundaries that can help in reshaping the local and political institutions. Myanmar is known to be a unitary republic of parliament within the constitution in the year of 2008 (Coccia, 2019, p. 50). The economist intelligence Unit has rated Myanmar to be an authoritarian regime of 2019. The military based on Burma also tends to hold a larger power within the government beside its end within the last Burmese military dictatorship.
However, there are different factors based on the Coca Cola globalization which can be identified for having a greater deal for being with the contemporary development as well as with the change in the political system of the world such as industrialization; revolution of the rising expectations and the population growth as well within the less developed countries. There has been not any agreed theory for explaining the causes based on political change. However, there has been an unstable system of politics within the countries, which tends to affect the organisations. For instance, in the modern days, greater majority for the political system of the world, which have been experienced through a form to another within an internal welfare while leading to the violent collapse based on the governments within power? As per the views of Kendal and Raymond, (2019, p. 1333) considered herein Coca Cola globalization study, some of the crises tend to increase the likelihood for this type of breakdown. The national defeats of the military, has been decisive within prompting some of the revolutions. The economic crisis results in being another common stimulus for the revolutionary outbreaks as they can produce the obvious pressures based on material scarcity along with deprivation however, has also been a threat for the social position of the individuals which is an insecurity as well as uncertainty in future along with the aggravation of relationships within the social classes.
2.3 Social processes
Social change within the global world deals with transformative; organisational and cultural change. Transformative change tends to involve making the amendments related to community plans. The building blocks related to social change include different and significant factors which need to be fulfilled for achieving the required changes (Tausch, 2019, p. 200). However, it is also clear on this report on Coca Cola globalization that there have been many causes for social change which are recognised as social institutions; technology; environment and population which can impact the changes of society. Social movements and collective behaviour can be considered as the driving forces for social change, which is considered as the change within society and is created through these social movements along with the external factors such as the shifts in the environment or rather the technological innovations. However, any of the disruptive shifts within the status quo, whether it is random or international; natural or human caused, might lead to some of the social changes.
The changes in the social process also consist of certain impacts. For instance, it causes many new conflicts along with the need for social control that have been increasingly in the congested regions (Swinburn et al., 2019, p. 800). This is known to encourage the concerns of manufacturing for moving the production overseas along with forcing the people to find more and more jobs for high technology services and manufacturing. These are the effects of macro level changes whereas, middle level and micro level changes also occur. These changes mentioned in this Coca Cola globalization report endanger the efforts for encouragement of privatization and controlling crime as well. On the other hand, it also pushes much more women within the labour force while creating a need for childcare along with increasing the conflict level within the communities of public conduct; sexuality as well as the likes. As stated by Malkov, (2020, p. 520) in the present context of Coca Cola globalization report, social control also involves an utilisation for different mechanisms along with the techniques for discouraging and restricting the behaviour of those people who tend to constitute the potential or rather an actual problem for the majority. The social processes like increasing awareness regarding the products and the consciousness among the people governs the consumer behaviour and thus, their buying patterns, which is of concern for the businesses dealing in FMCG (Fast moving Consumer Goods) especially and thus, needs to cater to the changing demands of the society, for maintaining their sales figures.
Critical evaluation of the ways in which globalization is affecting the inequalities in various nations around the world in the 21st century.
As mentioned earlier, Coca Cola globalization is the interconnection and interdependence of individuals, organisations and the government of the countries via the increase of goods and service trades, labour migration or the cross border investment of one country with another. However, Hanson et al., (2016), argues that the process of Coca Cola globalization is inevitably linked with inequality but with the polarised and divergent findings. It is assured by many that Coca Cola globalization increases inequality through the effects of increasing trades and specialisation. Others who maintain the claim that the trades based on the competitive advantage incurs the potential for stimulating the growth of the economy and lifting up the per capita incomes are somewhat patently incorrect as this can also lead to the rise of relative poverty within both the developed and developing nations. It is however, true that not everybody is benefited from this process as it even helps in increasing the gender inequality in some areas where the appropriate public policies are absent.
Thus, despite significant enhancement in the agencies and in the access of economic opportunities for the many of the women in various countries, still a large gender gap remains in some of the areas. Arguably Czaika and Neumayer (2017, p. 77), has also stated that Coca Cola globalization has also impacted upon the distribution of the income around the world which has enticed the social inequality as the riches and getting richer and the poor are getting poorer day by day that leaves the poors behind along with causing and deepening the poverty. Thus, all the above-mentioned elements strengthen the fact that Coca Cola globalization seriously impacts on inequality and however, many of the countries are affected due to this. However, wealth and income inequality could be measured through the ways like Palma Ratio and the Gini Coefficient and the Palma Ratio of South Africa is 7.1 whereas in Germany it's just over 3. However, many other factors related to inequality raised due to Coca Cola globalization are as follows:
3.1 Effects of increasing trade and specialisation
The present study on Coca Cola globalization considers the words of Sutcliffe and Glyn (2019), the rise in the trade to GDP ratios indicates the increase in the value loan volumes of trade among the regions and countries. Although, it is mentioned earlier that trade give rise to economic growth and per capita income but it can even cause poverty. For instance, if the countries can now import the low cost steel from the other countries, this will be the contraction within the domestic supply and the fall within the real income and employment within that particular industry of those countries. This leads to the higher ratios in structural unemployment, along with the decline in the living standards. Moreover, the real wages can come under the downwards pressure and thus, the inequality increases. It is similar in the case of countries like the United Kingdom (UK) where deindustrialization is taking place, which is causing the higher ratios within the long term unemployment along with the worsening social and economic deprivation.
Moreover, as projected by Ietto-Gillies (2019), in the United States, the share of the national income has been claimed by the top 1% of its population that climbed from nearly 11% within 1980 to more than 20% in 2014 as compared to 13% for the overall button half of the population. However, as argued by Wouters (2019, p. 301), the benefits of the Coca Cola globalization can offset such challenges such as the traditional produces faster growth in GDP. Thus, the government can see the increase in the tax revenues that might be useful for fund capital investment within public and merit goods along with services that includes the finance for their training programmes for improving the infrastructure within economically backward areas of these countries. Thus, the government should implement the active regional and the industry policies that will improve the employment prospect such as the companies like Coca Cola globalization, that have expanded its market always follows the policies and rules generated by the government if the respective and hence, create provision for efficient employment to the citizens of that country.
3.2 Leading to higher profits for the multinational organisations
Coca Cola globalization is enhancing inequality as it is leading to higher profit generations for multinational companies like Apple Inc, Facebook, and Google that feeds into the generous pay off for the senior executives that increase the dividend for the shareholders. Thus, these multinational companies produced 10% of the annual GDP income of the world and more than 51% if the overall value of the world's trade. Hence, the major economic and political issues in today’s age is the ability of the business in more than a country and as viewed by Humphreys (2017, p. 437), they utilise the shadow pricing along with other forms of avoiding legal tax that reduces their liability for paying tax and increases the return to those with the equity stakes. As due to this avoidance of tax, the national government cannot produce the revenue required for paying the public services and the welfare systems and this progressively affects the final distribution of the annual income. Thus, in 2017, it was estimated by the government of UK that the multinational businesses have managed in avoiding the pay of nearly GBP 6 million of tax revenues.
Moreover, Oxford Committee for Famine Relief (OXFAM), has estimated that the avoidance of tax had cost the developing nations more than $170 billion per year whereas, out of these costs, $100 million would have provided education for 124 million of children along with paying the healthcare services (Colen and Swinnen, 2016, p. 188). In addition to this, the governments could take steps for increasing the tax takes as they can range from the introducing the country by country financial reporting which can become a career where the profits can be made and introducing restriction upon the rates of interest charges from one of the subsidiary of TNC to the other. Hence, in the US, the government has introduced the one off tax upon the offshore cash held by the US businesses as it was found that the US companies had been building up near about $2.6tn within the untaxed cash held offshore, as agreed to the argument presented by (Gozgor and Ranjan, 2017, p. 2706). Thus, the companies like Coca Cola globalization, who pays their taxes without avoiding it, abide these rules and thus, it helps in uplifting the country's economy to which it has relocated its business.
3.3 Increasing demand for and returns for the higher skilled works
Adding to the above, Coca Cola globalization can also increase inequality by increasing the return to and demands for the high skill work that lowers the expected aerining if the individuals within relatively low knowledge and low skilled occupations. The driving force of the foreign direct investment is the resources that tend to flow in which the production unit cost is the lowest. Moreover, this is even the case with the light manufacturing as there were lots of investment flowing to countries like Ethiopia, Bangladesh, Vietnam and Indonesia. The FDI generates more formal jobs and incomes for the people who are employed within these sectors, perhaps at the expense of the similar workers within higher income nations whose skills and knowledge are literally no longer in demand. Thus, as opined by Georgiadis and Mehl (2016, p. 201), these people are therefore at the higher risk for unemployment and the relatively persistent poverty and many of them have also been pushed to the poorly paid employment or jobs in service which is linked to the Gig Economy. Hence, people in the developed countries like USA and UK often feels that they have been left behind by the factors of Coca Cola globalization.
Furthermore, their respective votes might have been the factors behind the Brexit outcomes in UK and the election of Donald Trump in USA who have adopted the Protectionist Approach for the trade policy after becoming the president to one of the powerful country. However, as contradicted by Beumer et al., (2018, p. 705), that the technological processes has raised the demand for the skill laborer as compared to that of the unskilled one rather than the Coca Cola globalization and trade which is assumed to have more impact upon them. Furthermore, often the individuals who lose their jobs are due to the technology and are not the one who get the new jobs which can cause hysteresis within the labor market along with a deep pocket of the long haul unemployment which hits the relative poverty. Apparently, Automation can also threaten the jobs ranging from large for lift drivers the workers within the production and farming lines. Thus, the government of both the developing and the underdeveloped countries should find and implement the right policies of supply sides that will be designed for improving the human capital of the individuals along with lifting up the entrepreneurship and industries like Coca Cola globalization that enhances the human capital to those areas in which they have expanded their market.
How the Coca-Cola (Myanmar, Home country) would cope with the challenges expatriate management of employees (considering example of two countries including the USA and the UK)?
4.1Existing Expatriate Management Policy of Coca-Cola
As mentioned by Wang et al, (2017, p.124), cross cultural suitability is an important factor in case of expatriate management as employees work in a completely different environment with different cultures. In the case of the expatriate employee management process, the management of Coca-Cola focuses on the cross-cultural suitability currently. It has helped the organisation to enhance its position in the international market and leadership position has been developed. Furthermore, the management of Coca Cola globalization also considers the family aspect and hence, in case of the relocation process, employees do not face any problem in terms of family safety. However, the family aspect has not been considered as a significant element of expatriate employee management. This can be a threat to the company Coca-Cola as family is the key factor to an employee in case of relocation. As mentioned by Wang and Varma, (2019, p.2227), the family aspect is a major element in case of expatriate management as an employee has to live safely with social interactions for working in overseas countries.
Coca-Cola in Myanmar considers family matters and cross-cultural suitability appropriately in the 21st century to lead in the market of Coca Cola globalization but more effective policies are essential to enhance the expatriate employee management process. These policies of the company include repatriation training, socialization and so on. In this context, it can also be stated that an employee can face an issue in terms of cultural development and socialization process while the employee relocates with family from an underdeveloped to developed nation. For instance, if employees of Myanmar Coca-Cola have to relocate in other developed countries including in the USA and UK, they would face many problems to cope with culture (Bird and Mendenhall, 2016, p.121). On the other side, there is a work culture difference between the USA and the UK and the management of Myanmar Coca Cola globalization would face issues including language barriers, different work ethics and so on in case of expatriate employee management at the beginning stage.
Figure 2: Existing Expatriate Management Policy of Coca-Cola Myanmar (Home Country)
(Source: Developed by Author)
4.2 Challenges in the Expatriate management of Employees in the USA
4.2.1 Long hours of working
As depicted by Adekola and Sergi, (2016, p.201) long working hours of employees within the office on a regular basis does not provide a fruitful result in terms of productivity. The reason is it creates negative motivation among people within the organisation and conflict has been developed. Hence, in the age of Coca Cola globalization, expatriate employee management is important to cope with new culture and new social policies easily. Employees of Myanmar Coca-Cola have to be conscious regarding long working hours at the time of working in the USA. It is one of the major challenges in terms of expatriate management in case of Coca Cola globalization. Employees are not habituated to work in a long hectic time schedule and hence they would face a problem to maintain work life balance at the initial stage and family conflict can arise.
4.2.2 Lack of family leave
The common rule of the US companies is to reduce family leave as they believe that employee contribution is the key factor to increase productivity in an organisation. If employees do not get minimum family leaves they cannot cope with the US culture and their family interaction and social life would be interrupted (Stock et al., 2016, p.1199). Hence, it is also an important challenge in case of expatriate employee management in the USA. Employees of Myanmar Coca Cola globalization is not habituated to work with a lesser number of leaves for the family purpose. On the other side, in the case of the USA, an employee has to provide sufficient reason in order to take family leave and it is really controversial. Employees would face an issue to cope with a different work culture in the USA.
4.2.3 Different eating habits
As depicted by Gardner, (2019, p.3), employees in the USA consider their lunch or breakfast at the desk which depicts that they do not waste time for enhancing productivity. On the other side, employees in Myanmar are not habituated with this culture and it would create a gap with other employees if expatriate employee management training is not provided. The difference is work culture is needed to be accepted positively otherwise this challenge cannot be overcome.
4.2.4 Difference in the working policy
As stated by Leach-Lópezet al., (2019, p.21), the major problem in case of working policy in the USA is unique type e-mail communication at the workplace. An employee in the USA sends all emails at the end of the day after doing their work. They believe that it helps to maintain the flow of individual work within the team and efficiency level has been increased. Hence, a strong competitive environment exists within the workplace that has not been found in the case of Coca-Cola Myanmar. Hence, the working policy difference would be a key challenge in case of expatriate management to the Myanmar Coca Cola globalization.
4.2.5 High cost of living
As the USA is a leading developed economy throughout the globe, the cost of living of employees in this nation is very high. Hence, the management of Myanmar Coca Cola globalization has to focus on the salary structure of expatriate employees that can enhance their savings to look after family members. As stated by Kaufmann-Buhler, (2016, p.211), cost of living is an important expatriate management challenge that is faced by all organizations throughout the globe. Hence, the management consultant of Coca-Cola Myanmar has to focus on this matter that can help to get an appropriate solution regarding the issue. The tax policy of Myanmar and the USA is different and hence, the salary is the factor in case of ensuring cost of living.
4.2.6 Language Barrier
Based on the view of Baderet al., (2016, p.271), the language barrier is the common challenge to an individual while the question arises to shift from one country to another. However, in the modern globalised world fluency in t English is essential to maintain professional competency. Hence, the management of Myanmar Coca Cola globalization has to arrange a training regarding this matter; otherwise it would be a serious challenge to the employees. The main thing is appropriate pronunciation of English terms is essential. It can be a major problem to the family members of employees as lack of English knowledge can create an issue in terms of communication. Hence, right training regarding communication requires to be considered to overcome the language barrier.
4.3 Challenges in the Expatriate Management of Employees in the UK
4.3.1 Only engaged in Self-promotional activities
As depicted by Zhang and Harzing, (2016, p.781), only self-promotional activity is not enough in terms of organisational development as an organization focuses on team work only. In case of the UK, it is identified that employees want to focus on the self-promotional activities only rather than teamwork. Hence, it is a great challenge to the employees of Myanmar Coca Cola globalization as they are habituated in the team performance only. Hence, employees would face an issue at the beginning stage in the new work culture. The management should arrange a training program to overcome the problem effectively as self-promotional activity is the first priority in the workplace. As self-centred employees are huge in the UK, working hours are not too long in case of that country.
4.3.2 Excessive leave policy
In terms of leave policy, the opposite picture has been found in the case of the UK and the USA. Leave policy is liberal in case of the UK while the same is very strict in the USA (Cox and Soobiah, 2018, p.151). The liberal leave policy and excessive family leave hampers the productivity of the organisation. The management of Coca Cola globalization in Myanmar focuses on flexibility in terms of leave for right employees only. Hence, in this case, employees can face a problem to cope with the work culture in the UK and working behaviour can be changed. As mentioned by Tahir and Ertek , (2018, p.51), excessive liberal and excessive strict policies both are not good in terms of enhancing productivity. Hence, an optimum workplace policy requires to be considered that can maintain stability of the performance in the market.
4.3.3 High Cost of Living
People of developing nations face an issue in terms of cost of living in developed countries as the financial factor is a major issue in the developed nations. Hence, expatriate employee management policy planning is essential for Coca-Cola employees in Myanmar, otherwise, it is difficult for the employees to relocate in different countries with their families. The cost of living is needed to be evaluated before considering the arrangement of relocation as it would help the employees to compete in the market successfully. The cost of living factor is the important matter in the case of the expatriate employee management process as it creates an issue to send employees to other nations. The company cost is also a matter if employees cannot cope with the new culture in the new business environment.
4.3.4 Lack of friendly culture
As depicted by Weetman et al., (2020, p.21) in regards to Coca Cola globalization, friendly culture is essential in case of enhancing workplace productivity as it enhances team effort within the workplace. In the case of the UK, it is identified that friendly culture does not exist within the workplace as employees are always engaged in the self-promotional activities rather than team performance. Employees of Coca-Cola Myanmar can face a problem in terms of cultural interaction in the UK. This is because they are habituated in a friendly atmosphere in the workplace of their home country but that does not prevail in the UK. Nevertheless, employees have to cope with that work culture to maintain professionalism in different nations. Hence, employees of Coca Cola globalization have to consider the new culture and the management has to develop awareness regarding this matter. It would help the employees to manage the new work culture in the new country.
4.3.5 Language Barrier
The language barrier is common for Myanmar employees in the USA and in the UK and effective training is needed for the employees for overcoming the challenge. As a result of this problem sometimes, professional communication has been hampered throughout the globe. Hence, the management of Myanmar Coca-Cola organization has to focus on these challenges strictly so that it cannot hamper performance of employees and their family life in the new country.
Based on the comprehensive discussions in two different countries, it is found that language barrier and cost of living are two major challenges in case of expatriate management of Co-Cola Myanmar. Hence, proper training planning is important at reasonable cost that can provide benefits to the employees of Myanmar Coca Cola globalization.
4.4 Strategies of overcoming challenges and developing quality of performance of Coca-Cola
In order to maintain uniformity in the organisational performance, Coca Cola globalization focuses on the uniformity in the human resource management practices all over the world. In this context, it can be said that expatriate employee management is also important to Coca-Cola for managing different challenges in the different countries in terms of corporate performance easily. Four key strategies including International Training & Development, Pre Departure Training for expatriate employees, Repatriation training and cultural management training can overcome above mentioned challenges. As given by Ruiet al., (2017, p.125), effective training is the key strategy regarding expatriate employee management as it informs employees how to behave professionally and socially in the new country. Key four strategies that are essential in case of overcoming challenges and enhancing quality of performance of Coca-Cola Myanmar are discussed below.
4.4.1 International Training and Development
According to the view of Ohet al., (2018, p.842) considered in this report of Coca Cola globalization, international companies focus on the corporate training and development process for enhancing their performance and maintaining stability in the comprehensive business situation. Continuing along the same line, Hippleret al., (2017, p.33) have stated that uniformity in the corporate training is essential in case of multinational organisations as it enhances quality and stability can be maintained easily. In the case of Coca-Cola also the international training and development technique implementation is essential as it would help to manage expatriate performance easily. In case of employees of Myanmar Coca Cola globalization, the expatriate employee management can be effectively done if an international training program has been followed. The management consultant of the organisation has to consider this policy for enhancing consistency in the performance in the competitive business world.
4.4.2 Pre-Departure Training Programme
After receiving the contract of going foreign countries, the company of the home country has to consider pre pre-departure expatriate management process as it would help to enhance the competency level of each employee and they can lead quality life in overseas countries with their families. The key motive of the training is to improve skills of employees and enhance a good relationship with different communities effectively. According to the view of Desai, (2019, p.514), a pre-departure training programme for expatriate employees is important as it helps to maintain performance quality of multinational companies in the competitive business environment. The intimation regarding housing system, schooling, and medical facilities is important to the expatriate employees as this information would help the expatriate employees to maintain their professional as well as family life easily.
4.4.3 Repatriation Training Programme
As depicted by Aldossari and Robertson, (2018, p.1487), in order to enhance long term concerns of different employees and their family members, repatriation training is important. This is because; the expected gain from the global assignment has been discussed in the repatriation training programme. The adjustment process in the new professional area has been discussed in this technique and employees can identify their growth from the global assignments. As mentioned by Oh et al, (2018, p.851), it is stated in this study of Coca Cola globalization that expatriates and their family members can adapt the norms of host nation and culture easily based on repatriation. It helps to ensure long term achievements of expatriate employees and cultural shock can be reduced. The key focus that is needed to be considered by expatriates in the global assignment is the ability that they want to implement in the foreign countries to attain the success in the project. This programme reveals that employees need to make a contract with organisations as it is essential to make an identity in the foreign country.
Figure 3: Strategies of overcoming issues in Expatriate Employee Management
(Source: Developed by Author)
4.4.4 Performance Management Training
The Coca Cola globalization considers the entire performance management system based on four stages including identification of accomplishment, business planning, analysis of objectives and key performance indicators. The management has to focus on these four factors in case expatriate management also as it would help the existing position in the new business environment. Based on this evaluation employees can identify which areas are essential to develop. In this context, the compensation policy needs to be planned before sending employees to foreign nations. The reason is it would help the employees to evaluate whether payment is properly made or not according to the standards of living in the new country. As asserted by Aldossari and Robertson, (2018, p.1511) success of expatriates has a big advantage to a business entity as it develops competition level of organisations in the market. The performance measurement training can help an employee to identify whether a company has rightly treated them or not. The Coca Cola globalization in Myanmar has a strong focus on business objectives to enhance measurement of performance. Hence, in case of expatriate management, the performance management training would help the employees to evaluate their achievements in long term projects.
4.5 Major Success Factors regarding Expatriate Management
Critical success factor assessment is essential in case of any business organisation as this helps to evaluate key success areas of the business (Zhang and Harzing, 2016, p.782). The Coca Cola globalization business enterprise always focuses on the evaluation of critical success factors for enhancing their business performance and stability in the competitive business environment. Strategic focus, people management, operations, marketing and finances are key areas in case of critical business success-evaluation process. Two major strategies that are essential in case of synchronising above factors are repatriation training and pre-departure training programme.
Based on the view of Green, (2017, p.11), the repatriation training has been considered as a major success factor in the case of expatriate management process. The reason is this training programme helps to identify long-term achievements of expatriate employees. Continuing in the same line, Wang et al., (2017, p.142) have stated that repatriation is important in case of providing effective training to the employees after getting a contract from an overseas company. This is because an estimation regarding outcome can be made easily based on the training. The most important matter that has been considered in the repatriation training is potential long term achievements of global assignments can be evaluated. If the management of Coca Cola globalization in Myanmar considers this policy in the expatriate management, the organisation would get easy success as the long term achievement areas would be evaluated successfully.
Another critical success factor in case of enhancing the expatriate management system is the pre-departure training programme. This is because it would help to identify housing systems and medical facilities related information properly and expatriate employees would identify their situations in foreign nations and proper planning can be made. The pre-departure training would help the organisation to provide right information to the expatriate employees and it would be helpful to get long-term success in the international project. As depicted by Pinnington et al., (2018, p.362), appropriate training can help multinational organisations to enhance strategic performance and people management in the competitive environment. The most important matter that has been considered in the pre departure training is development of interactions with people and it is the important critical success factor in case of business development. Based on the comprehensive discussion in the above, it has been identified that considering repatriation and pre departure-training programmes, the Myanmar Coca Cola globalization can enhance its position in the competitive market.
The present study discusses the concept of globalization in various countries of the world and it mainly focuses upon the intervention of Coca Cola globalization that has expanded its market in Myanmar. Moreover, the study consisted of four questions which have been answered precisely with taking references from the effective sources that have produced efficient information about Coca Cola globalization and its impacts upon all over the world. Firstly, the drivers of globalisation that affected the Coca Cola organisation and the people of Myanmar has been mentioned in the study. Secondly, the analysis of the political, demographic and the social process that has caused changes within the world has been determined. Thirdly, the ways in which Coca Cola globalization has affected the inequalities in various countries of the world has been evaluated. Last but not the least, the ways in which the organisation could cope up with the challenges of the expatriate management regarding the employees of the Coca Cola company as relocating in various locations across the world has been properly discussed in the study.
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