Human Resources Analysis-Coca Cola Case Study Examples
Human Resource Management (HRM) is one of the most departments that stride under the volubility and effectiveness of an organization (Barton, 2002). The function of this department is also important to compete among the companies within their operations. However, there are some other competition base forces as well which can be used to become competitive among the workability of the organizations. The main objective of this assignment is to analyze the level of competition among two giant organizations of the world which are Coca Cola and Pepsi Co. Both of these companies will be analyzed through four different angles which are Competition, Compensation, Legislation and Human Relations (Gordon & Wallace, 2009).
Pepsi Co and Coca Cola Co are two companies which are in the business of manufacturing, distributing and selling identical carbonated products into the market. The industry in which both of these companies are operating is Cola Industry, and their competition is referred as Cola Wars. However, Pepsi has expanded their network and portfolio in making and selling of snacks.
Analysis & Findings
Pepsi Co and Coca Cola Co. are two largest companies of the world in terms of having product portfolio as well as recognized the revenue.
Competition is the beauty of industrialization; in fact it is one of the most important driving forces which are currently delivering the best possible results for the companies throughout their competitive operations. The organizations which have the tendency to compete effective with the other homogenous companies are sounder as compared to those companies which don’t have a positive inclinations towards nullify the level of competition (Barton, 2002). From the article of Cola Wars, it is found that both Pepsi Co and Coca Cola Co have been in severe competition with each other to win the Cola wars to have a perfect market share within the beverage industry of the United States. For competing with each other effectively and positively, both of these companies are likely to introduce new and powerful products for their end users in order to satisfy their needs in a more definite and perfect manner (Gordon & Wallace, 2009).
Coca Cola Co. is currently emphasizing on a single product which is the beverage product, while Pepsi Co has diversified their operations into Snacks and other important food items. This is the main thing why Pepsi Co is now competing in a more appropriate manner than that of Coca Cola in the market to have a high market share within the industry. Pepsi Co. which was only a brand of Asian market has now becoming recognized in the European market as well which is one of the biggest achievement of the company in the current economic scenario. Tapping different markets through different products will certainly makes Pepsi Co more effective and volatile than Coca Cola Co in the near future, which will be essential for their core operations in the market.
Employees have been referred as the lifeblood of an organization, and without the element of lifeblood, it is not possible for an organization to remain effective and competitive at the same time. The provision of employees is extremely essential for almost every organization of the world, and it is equally beneficial for Pepsi Co. and Coca Cola Co. as well (Gordon & Wallace, 2009).
Compensation relates to the productivity of the employees. It is the amounts which have been given to the employees of the company against their work and services. It is a driving force which increased the level of employee’s retention within the company, and it is very important in the current scenarios. There are around 274,000 employees are currently working with Pepsi in more than 200 countries of the world, while the amount of the employees of Coca Cola is nearly 131,000. It is clearly showing that Pepsi Co is more worthwhile in terms of managing their employees in an effective manner. The company retains their employees through offering high compensation and by offering them intrinsic and extrinsic rewards, which are very essential for the employees of a company. From the article, it is clear that retaining the key employees is now become an important element to win the war of competition, and Pepsi Co is delivering more worthwhile functions as compared to Coca Cola to retain their key employees for a long span of time with them.
The theoretical meaning of legislation is to have legal bindings and strong compliance within the operations of a company. Legislations are the prevailing business and operational laws which are important and essential for an organization to comply with accordingly. According to the case study of Cola Wars, there are number of legal bindings and legislative factors that specifically associated with the companies which they have to comply with, and it is equally beneficial for Pepsi Co and Coca Cola Co as well (Gordon & Wallace, 2009).
Some of the major legislative factors that associated specifically with the company are compliance accordingly with the shareholders, employees, customers and the management aspect. Both of the selected companies are found marvelously interconnected with the legislations which have been associated with them. The company has a great inclination and interest towards the enhancement of the functionality of the company to enhance their customer’s orientation. Apart from the customers, the company also has great inclination and positivity within their shareholder’s legal functions. Both of the companies comply effectively with the shareholder’s management particularly. It is an important sign for the company, as it makes them aware with the latest happenings of the company to stay in the business with a positive frame of mind.
There are numerous departments that specifically associated with an organization, and the name of Human Resources Management (HRM) is one of them. Apart from hiring and firing of employees, there are certain regulations and aspects which are essential to comply with this department. Employees are worth a lot for a company, and their efficacy is essential for their long run tendency and maintenance. It is very important for the companies to have powerful human relationship function within their consideration to maintain their effectiveness in a given marketplace, and it is equally beneficial for Pepsi Co and Coca Cola Co. as well (Spivey, 2011).
According to the case study, the functionality and operative management of Pepsi Co in terms of enhancing their human relation functions and operations is more worthwhile and effective than that of Coca Cola Co. The company has a clear cut strategy in terms of maintaining a strong level of communication among their employees and the management, which Coca Cola Co is not, seems to be applied on their scenario. Pepsi Co applies Management Bi Objective (MBO) approach within their operations in which the employees are entitled to furnish their issues and problems with the management of the company, and the management in return is likely to suggest things that can improve the performance of the company and the employees. Coca Cola Co has clearly have an upper hand in terms of generating net profit of the company than Pepsi Co. but still the company lags behind in numerous operations and functions. Mentioned below chart is showing the stock price change of both of these companies
The fluctuation as well as the stock price of Coca Cola Co is higher than that of Pepsi Co, showing the tremendous growth of the company in terms of gaining effectiveness.
Beverage Industry is one of the most productive and lucrative industries located in the United States, which has been doing billions of dollars operations from decades. Though, the level of competition even in the US market is very high, as there are number of beverage companies are located, however it is very difficult to beat two giants of this industry which are Pepsi Co. and Coca Cola Co.
The case study of Cola Wars clearly depicts the strategies of both of these companies to remain competitive in the market with strong market knowledge. Among both of these companies, Pepsi Co is found more effective and worthwhile than that of Coca Cola in almost every function.
Barton, D. (2002). Cola Wars. Pearson Group. NY
Gordon, J & Wallace, K. (2009), Writing My Way Through the Competition in Colas. London, John Wiley & Sons
Spivey, K. (2011). The Cola Wars in South Africa. NY. Saga