International HRM Practices: Coca-Cola & Pepsi Expatriate Success

This essay explores the association between international human resource management (IHRM) practices and the successful completion of foreign assignments for expatriates, focusing on a comparative analysis of Coca-Cola and Pepsi. It delves into prominent theories and models related to foreign assignments, such as the social creativity model and social identity theory, highlighting the impact of globalization and labor mobility on expatriate assignments. The essay identifies key factors in IHRM practices that significantly affect expatriate success, including cultural diversity, new laws, and the understanding of foreign markets, alongside the challenges of transferring and adopting HRM operations. By comparing the IHRM practices of Coca-Cola and Pepsi, the essay examines the effects of these practices on expatriate assignments within each organization and concludes with managerial implications for organizations with poor IHRM practices and provides recommendations for improvement. This resource is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.

Running Head: INTERNATIONAL HRM 1
HUMAN RESOURCE MANAGEMENT
STUDENT’S NAME
COURSE
UNIVERSITY
DATE

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Executive summary
Expatriates are any persons who have gone to work in the foreign company out of their
individual needs, or they are sent there by their respective companies. The increased
globalization around the world is one of the major factors fuelling the increase in the number of
expatriates working in various enterprises away from their home nations. Most multinational
companies spend a lot in ensuring that the expatriates are in a position to work efficiently in the
respective organization’s subsidiaries. Despite the various expenditures incurred by the
multinational companies into seeing that the expatriates perform well there are challenges and
issues that the companies face, and the expatriates face while ensuring they perform well in the
various assignments. Moreover, certain success factors have to be considered to ensure that the
expected results are achieved in the whole process.

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Table of Contents
Introduction....................................................................................................................................4
Prominent theories and models on foreign assignment of expatriates.....................................5
The impact of international HR practices on foreign assignment of expatriates....................7
The factors of international HR practices that have significant effects on foreign
assignment of expatriates..............................................................................................................9
International HR Practices of Coca cola v Pepsi......................................................................12
Comparison of the International Hr. practices between the two companies.........................14
Effects of international HR practices on foreign assignment of expatriates in each
organisation..................................................................................................................................14
Managerial implication for the organisation with poor International HR Practices............15
Recommendation.........................................................................................................................15
Conclusion....................................................................................................................................15
References.....................................................................................................................................16

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Introduction
International human resource management is the recent trend in the field of human resource
management. This report shall focus on the analysis of international HR practices in relation to
the successful completion of foreign assignment of the expatriates focusing on Coca Cola and
Pepsi. The report shall cover the prominent theories and models on international HR practices, a
thorough analysis of the international HR practices of Coca cola and Pepsi and finally the report
shall cover the managerial implication for the organization with poor international HR practices.

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Prominent theories and models on foreign assignment of expatriates.
Social creativity model
Entails the improvement of group strategy against certain which it competes with the groups
within the same social stratification. The group can seek to improve the dimensions with which
to compare with out-group, values assigned to the attributes of a group, and finally changing the
out-group with which comparisons are made. It is such undertaking that the comparisons with
higher social groups are not welcome. Finally, it is the concept of Social Competition where a
group seeks positive distinctiveness against out group. This is a concept that involves competing
for scarce resources available.

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Social Identity Theory
Individual Mobility is a concept in the social identity theory that points of the upward movement
of an individual from one social group to another. Before moving on to the next social group, an
individual has to defect from their current social group (Hogg, 2016). Immediately, the
individuals seek to join a higher social-status group in a bid to go up the ladder.
Social identity theory points on how conflicts arises either among individuals or groups. The
differences that are imminent among the individuals is informed by the individual characteristics
that define each of the individuals (Fee, Heizmann and Gray, 2017). Moreover, the theory
explains that differences are a sure thing among different groups because that have similarities.
The differences emanate as a function of comparisons that they keep exists among the groups.
The groups that are relatively similar in terms of ideologies tend to have conflicting interest.
Thus, competition as to who is superior to the other becomes the order of the day.
Competition that is as a result of group conflicts can be fascinating because research elaborates
that all individuals to such group tend to be supportive of the group agenda. The theory
insinuates that individual characteristics are not exuberated in such a scenario because each of
the group seeks to defeat the other. It is in such undertaking that all of the members to a group
support their group to ensure that it wins against the other (Furusawa and Brewster, 2016). The
theory illuminates that interpersonal relationship only happens in a case such as that of couples
relating. The competition in such a scenario happens between two individuals who have formed
a formidable relationship, though at times with differences. The theory explains that this happens
on a daily basis based on ethnic groupings.

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The foreign assignment to expatriates would be successful depending on how they interact with
people from various cultures in the foreign land. The expatriates have to be well acquainted with
various norms of the people in the foreign country such as code of dressing, form of greeting and
code of conduct under various circumstances such as how to greet a senior manager. Foreign
assignments demand more knowledge on the new culture for effective interaction with the new
citizens.
The impact of international HR practices on foreign assignment of expatriates
Increased globalization
The increased globalization around the world is one of the major factors fueling the increase in
the number of expatriates working in various enterprises away from their home nations. Most
multinational companies spend a lot in ensuring that the expatriates are in a position to work
efficiently in the respective organization’s subsidiaries. Despite the various expenditures
incurred by the multinational companies into seeing that the expatriates perform well there are
challenges and issues that the companies face, and the expatriates face while ensuring they
perform well in the various assignments. Moreover, certain success factors have to be considered
to ensure that the expected results are achieved in the whole process.
Labor mobility
Most developed countries do not necessarily have enough labor, they may opt to source labor
from various developing nations. In such case, the expatriates move to the different foreign

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nations in such as the employment services. Additionally, most populations in the developing
nations may feel that they are not getting fair compensations from their local industries.
Therefore, such people find it easier to move to the developed nations to secure a livelihood
there. In most instances, the various employees working in the different multinational may find
themselves being sent to various nations to work from. In most cases, the multinational
companies send the well-experienced personnel’s to the subsidiaries, to help in improving
operations in the respective subsidiaries.
A conclusion is made that both the expatriates have their reasons for moving to foreign
nations for employment. These individual push factors are said to independent of the
multinational reasons for sending their employees to work abroad. For the particular expatriates,
they have to do a lot of research concerning the various job opportunities elsewhere, and the
probability of securing them. Moreover, the foreigners tend to apply for employment
opportunities before landing to the foreign nations since they may find it hard to survive for even
two weeks without a job. Additionally, in the case of the multinational companies, it is said that
the op to send their own trained and experienced personnel, so that they can adapt within the
shortest time possible to the subsidiaries’ operations abroad.

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The factors of international HR practices that have significant effects on foreign
assignment of expatriates.
Cultural diversity
Cross cultural differences makes it hectic for the expatriates to adopt to the foreign
culture which might have an adverse effect to their assignments. For instance, a given
multinational company should be in a position to ensure, that the employees from overseas are in
a place to adapt to the various operations within the subsidiaries of the multinational enterprise.
Cultural diversity is a major challenge that may hinder the successful operations of the various
expatriates in their respective foreign operations. It is obvious that one country culture differs
from another. Therefore, if an expatriate is not open to learning and trying new things he or she
may fail to blend in well. And that case he or she is likely to have difficulty in operating in the
new environment. In most instances, people working in the various multinationals subsidiaries,
abroad, tend to seek new ways of doing things and embrace them for their survival. Moreover, it
is relevant that an individual acknowledges that it is not only their home country approaches that

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are applicable. Instead, there are better and more sensible approaches, and that they can learn
from other persons by integrating with them during their operations. For instance, the Indian
culture may have a better way of finding solutions through critical thinking for instance by
meditation. The art of meditation may be not common in the home country of a certain
expatriate, however, if he or she familiarizes, him/ herself with such an art, he or she is likely to
approach things more rationally as companies to those of his or her home country.
Cultural sensitivity as well affects the operations of the multinational companies, in that
they may conflict with the culture of their newly acquired markets due to the difference in
culture. For instance, in the Chinese nation where organic foods are more preferred to the
inorganic food then, an enterprise offering the inorganic food may not stand high chances of
surviving. In that case, the human resource management team should set aside, a team of various
expatriates who can research their market. Otherwise, the company is likely to offend its clients,
despite this being not the intention of the company. Therefore, if an expatriate is hired by such an
enterprise to operates as a salesperson he or she is likely to encounter a lot of hostility and
misunderstanding with the customers due to lack of information regarding the culture, and the
ignorance, to put efforts towards blending in(Hippler, Haslberger and Brewster, 2017).
New laws
The fact that every nation as its form of business laws and regulations, the human
resource management and the rest of the managerial team have to understand these laws and

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regulations to avoid colliding with the respective government. In the case of an expatriate, he or
she requires to as well understand, the various company laws and labor laws for their intended
new work areas. In most case due to different company’s forms and factors affecting
employment, the labor laws and company laws vary from one country to the other. Therefore, in
the case of an employee, it is relevant that he or she focuses on understanding these laws to avoid
colliding with their respective subsidiary management and the government at large. Therefore,
the following work focuses on various challenges that the expatriates face both at their levels and
at the organizational levels.
Lack of better understanding of the foreign market
For an enterprise to successfully operate in foreigner markets, the expatriates require to
understand the characteristics and all the elements that need to be put in place in ensuring that
they make revenue that can help the enterprise meet its set goals both long-term and short-term.
Transferring and Adopting Their HRM Operations
The fact that multinationals do not want broom once as multinationals, it is a gradual change
whereby the companies, started by operating in their respective local nations and later grew to be
multinationals. The idea of transferring and adopting the human resource management operations
does not only affect the multinationals but as well the expatriates working in such
environments. . For instance, in the case of an employee who was used to the certain procedure
of performing a given task let’s say hiring and recruiting candidates, may realize that the
procedures are not the same in the foreign company (Shen and Jiang, 2015). Therefore, such an
expatriate is likely to have difficulty in adapting to the new methods of operations.

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International HR Practices of Coca cola v Pepsi
The success rate of coca cola
Coca cola has gained popularity in most of the African Countries due to its regular advertisement
in various platforms such as the television and social media. Its success can also be attributed to
its variety of flavors which gives the consumers a wide choice over the consumption of the
favorite brand.
The success rate of Pepsi
Pepsi is popular in major restaurants in Europe and the rate of its success can be attributed to the
regular adverts.
International HR practices used by Coca cola
Balance between Going Global and Adapting Locally