MGT4225 Individual Report: Analysis of Coca-Cola's HR Strategies

This individual report provides a comprehensive analysis of Coca-Cola's Human Resources department, focusing on various aspects such as situational analysis, employee engagement, employee costs, and turnover rates. The report delves into Coca-Cola's objectives, including hiring talent for innovation and reducing labor turnover. It examines the company's total employee numbers, employee engagement index scores, and training costs. The report also addresses the reasons behind employee turnover, including long working hours, organizational structure changes, and gender inequality. It presents a solution matrix with action plans, pros and cons, and methods to resolve disadvantages, followed by an evaluation of the success of the action plans. Appendices provide supporting data on employee statistics and trade union issues. The report concludes with references to various sources.

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Module
Title:
BUSINESS AND COMMERCIAL
AWARNESS
Module
Code: MGT4225
Assignment
Title: INDIVIDUAL REPORT Date: 8/11/2020
Lecturer: Section: B1
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Table of Contents
1. Introduction...................................................................................................................................3
2. Situational Analysis........................................................................................................................3
3. Total employee of Coca Cola........................................................................................................3
4. Employee engagement...................................................................................................................3
5. Employee cost and turnover..........................................................................................................3
6. Solution Matrix..............................................................................................................................3
7. Appendix.......................................................................................................................................4
8. References.....................................................................................................................................5

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GROUP 6
EXECUTIVE SUMMARY
Report based on Human resource department of Coca-Cola. This report discuss more on
issues of Coca-Cola of short term and long term and its reasons. Besides, Human resource
management consideration on employment rate and turnover by identify the right track to
solve. However, clearly state that Coca-Cola report will shows them ways to improve their
management and company progress by improving employment skills.
INDRODUCTION
Coca- Cola well known soft drinks brand since 1886 by DR. John Pamberton. Now there are
more than 500 soft drinks under Coca cola such as Fanta, sprite and others. Next, total
employee of Coca -Cola from each branch are 700,000. Coca - Cola main branch located at
Atlanta, Georgia.
SITUATIONAL ANALYSIS
OBJECTIVES (CHIEF HUMAN RESOURCE)
 1) Hire a talent and research development to innovate new product and
increase customer base by 15% in 2025(Long term).
 Hire talent for research and development to arrange an effective production plan
and accurate record keeping system by 10% in 2021 (Short term).
 Effective employee training to reduce labour turnover by 20% in 2023 (Long term).
 Effective employee training to reduce labour turnover by 15% in 2021 (Short term).

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TOTAL EMPLOYEES OF COCA-COLA
The total employee are 700,000 highest workers are at Atlanta which is host country 50,000
because the main process of all beverages at Atlanta Georgia. Appendix 1 shows the
percentage of employees working fulltime, voluntary turnover rate, new hire rate and
absenteeism. Each countries have different company size because Coca-Cola distribute
types of products in different countries. Next, Coca- Cola highly focus based on taste
demand in each country. Diversity workplace brings added values and key growth of
business. It’s always play important roles in business as creativity, innovation and
professional. Based on appendix 1 each country has different total employee according to
company size.
EMPLOYEE ENGAGEMENT INDEX
In 2019, Employee Engagement Index score improved by two percentage points from 2018,
to 90%. Employee Participation quite high at 87% of our people performance increasing with
survey research. Appendix 2 shows the CEO measure each employee’s engagement at
workplace. The survey conducting purpose of improving service.
EMPLOYEES TRAINING COST AND WAGES
Coca-Cola United States choose Training I specialist for employee training program and the
cost between “$48,368 to $53,015”. Training I specialist giving specific training requires,
additional skills and workshop for employee and managers. Monitor employee by effective
methods as group training gives better feedback on performance and use for development
purpose. Next, Coca-Cola pays employee wages average from $12.49 to $30.26.
HUMAN RESOURCE TARGET 2025

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There is risky working in Coca-Cola Company where employee review was management not
giving appropriate training for employees and not hire a forklift employees. Most of times
things drop due to lack of handle. Next, employees health issues effected with inhaled gas
compress. Employee wearing a normal mask and Coca-Cola should take into consideration.
Coca- Cola Company take the initiative to overcome employee issues by 2025. The first
issues are reducing accident rate by 0.20% then previous 0.33 of internal company such as
Forklift accident, machinery or heavy metals falls. Appendix 3 shows the percentage of
Coca-Cola initiative takes to reduce employee’s turnovers. Coca-Cola more particularistic on
internal and external accident rate by providing additional insurance coverage. Example
safety of employee in workplace (well train forklift employee) and flow the procedures safety
equipment wear. Next, is Equality of hiring women and men has rights to be in manager
roles in all country branches.
REASON TURNOVER
Coca-Cola employee turnover getting increases. The first issue are Working long hours in
shift based. Majority employee satisfy working in Coca- Cola company and turnover rate
high because of overload work given by MNC corporate where employees has limit time for
resting. Next, organizational structure frequently changing. Employees facing emotionally
(stress) when the organization structure rapidly changing and set new goals. Moreover,
Gender equality happens in most country and branch of Coca-Cola. Example in India Coca-
Cola hire majority male than female and unfair wages women than men.
TRADE UNION
Appendix 4 shows the trade unions issues happen in particular years and Coca-Cola
branches affected. The major problems faced by Coca-Cola is racial discriminations and
advertising portrait white people rather than other ethnic culture. Past 10 years, Coca-Cola
spoil brand image and people sue on Coca-Cola brand represent.

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SOLUTION MATRIX
ACTION PLAN QSPM 1
Business consultant such as Ultra consultant for define both company’s cultures difference
and right way to target market. In terms of taste of consumer and social differences easily
find out by agent. Next, M&A teams are a leader where helps the organization to stabilized
and changing the management structure to ensure its not effect employee also motivate.
Furthermore, HR will take part to ensure the resources are well suit with Acquisition
Company DR Pepper. The new organizational goal depend on match Coca-Cola with new
taste.
ACTION PLAN FOR QSPM 2
Increasing the benefits and pay structure to employee, to make sure employee has easy
access to new industry formulation. By increasing the compensation methods to employee
willing to put more efforts towards fairly wages. Next, Coca - Cola partnering to
Pharmaceutical industry which is Duopharma Biotech to easily making process of new
vitamins able to fulfil the resources needed with specialise advice and good outcomes.
Furthermore Human Resource department will be responsible in reporting daily script on
new progress to managers to ensure the new process flow in right tract without problems.
Human resource department will hire a chemist person to check on the volume of medicine
using and encouraging the company to avoid health issues.

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PROS AND CONS OF ACTION PLAN
Advantages of having business consultant is because not facing failure during acquisition
when the flows are agreed by both parties. Disadvantages is cost involves and human
resource must follow their procedures. Next M&A Advantage is to motivate company to
target profit when employee are fully motivated with benefits and new roles. Disadvantage
are employees may feel stress working environment.
HOW TO RESOLVE
Based on the disadvantage of action plan human resource can hire more man power by
providing a valuable compensation and weekly training by human resource to employee by
having a good progress. Next, increase flexible working hours since Coca-Cola employees
working 9.8 hours daily by assigned difficult task to more skilled employee from that
employee can have break time and reduce over work time. Human resource can have 3
shifted basis with hourly paid for effective productive.
EVALUATE SUCCESS OF ACTION PLAN
Based on objectives of action plan measurable hire a talent research and development to
innovate new product and increase customer base by 15% 2025 where to achieve on
product diversity with Dr.Pepper and entering new industry where Coca-Cola hire a talented
M&A team to support the flow process . Besides, effective employee training to reduce
labour turnover
.To achieve this objectives by have a team leader who keep motivating employees and
increasing of compensation.

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Appendix
700,000
employees
over 200
different
countries
Malaysia
- Company
size 501-
1000
employees
with age of
30 above
- Young great
talent in
Malaysia
about 45%
above 30
years old.
90%
workforce
consist of
local and
young
talent.
Brazil
- 57,000.3
employed.
51,000.19
(Full time
employees)
and 424
(Temporary
employees).
India
- Company
size 50
employees
in
(Bengaluru).
Total 25,000
employees
Atlanta
- Total
employee
more
than
50,000
- 38%
Women
- 31%
diversity
- 23%
citizen
from
another
country.
Appendix 1

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Appendix 2
2025 2019
50% Reduce (lost time) accident per rate 18% progressing due to increase incident of
contract with machinery in production. 19%
accident cause out of control by vehicles and
others.
50% managers are women 38% some country they have women as
manager (Gender equality) e.g. Lithuania
Europe
90% improve employee engagement. Example
training skills
30% benefits for employees
Appendix 3

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TOTAL EMPLOYEES 2018 % 2019 %
Male 17,627 75.8 17,498 74.9
Female 5,638 24.2 5,859 25.1
FULL - TIME EMPLOYEES
Male 17,151 97.1 16,914 97.0
Female 4,872 86.4 5,068 87.0
VOLUNTARY TURNOVER RATE
Male 4 4.1
Female 6.3 7.3
NEW HIRE RATE
Male 4 4.3

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Female 9.2 9.5
ABSEENTEE RATE
Male 4.2 3.6
Female 3.5 1.2
AVERAGE TRAINING DAYS PER EMPLOYEE (HOURS) 13.2 14.4
Appendix 3
Appendix 4
1996
Atlanta
Employee complaint “management position for white people”
USA
A former African- American employee sue Coca cola for racial discrimination for
1999lower pay, less promotion.
California
Nine former employee complaint against Coca-Cola failing to pay proper wages
2002and unfair business practice that illegally modified employee time records.
Cambodia
500 employees strike against Coca Cola for cancelled health care courage
2010

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Solutions Ease of
Implementation
A
Impact
B
Acceptance
C
Score
A+B+C
Decision
1)Working with business
consultant 4 5 6 120 NO
2) M&A team leader to
motivate and helps evaluate the
organizational structure 6
7 6 252 YES
3) Delivery model to ensure
effectively meet organizational
goal
3 8 7 168 MAYBE
Appendix 5
Solutions Ease of
implementation
A
Impact
B
Acceptance
C
Score A+B+C Decision
Compensation strategy
and delivery 6 4 5 120 NO
Partner with
pharmaceutical
company (Duopharma
Biotech).
8 8 5 320 YES