Introduction
Coca-Cola Company is an American multinational company and a global market leader in the beverage industry. Though the company was incorporated in Wilmington, Delaware, it is currently headquartered in Atlanta, Georgia. The company offers a wide range of products and brands like sports drinks, fruit juices, soft drinks and other beverages. However, the Coca-Cola Company is popularly known for its flagship brand Coca-Cola which was invented in the year 1886. The Coca-Cola Company was incorporated in the year 1892 after Asa Candler purchased the Coca-Cola formula and brand in the year 1889 (Watters 2014). According to Hills and Welford (2015), the Coca-Cola Company has expanded its operations from the United States and currently operates within six regions which it has categorized as Europe, Pacific, Latin America, Eurasia and Africa and North America. The Coca-Cola Company global strategy aims at offering consumers from around the globe refreshing products for every lifestyle and occasion. The company expansion efforts have been supported by its strong brand, effective marketing strategies and creating an emotional bond with its customers.
Discussion
Part One: Organizational development stages
Franchising
Franchising refers to a distribution method for services and products aimed at satisfying the customer needs through creating a relationship between two parties, where one party grants the other party the right to use is business processes and systems, trademark, brand or to produce and market a service or product within certain specifications (Justis & Judd 2012). Justis and Judd (2012) argue that multinational corporations rely on franchising as a strategy for acquiring and maintaining customers as well as increasing their market share. As such, franchising creates strategic alliances between groups of people or corporations with specific responsibilities and relationships and having a common goal of dominating the market. Franchising creates an opportunity for the business to share brand identification, successful methods of conducting business as well as proven distribution and marketing system (Shook 2015).
According to Truss (2016), studies reveal significant differences in human resource management between franchisee-owned businesses and company-managed business operating under the same parent company. The differences in human resource management arise because the parent company does not provide the franchisee-owned business support on human resource. As such, franchisee-owned businesses are expected to develop their own human resource policy and recruit own staff.
The human resource implications on franchising include;
Financial damage