Coco Cola Case Study

Coca-Cola and IBM

Final Case Study: Coca-Cola and IBM

Aylin S. Salcedo

Davenport University: Online

Final Case Study: Coca-Cola and IBM

This Case Study discussed the different approaches two companies, Coca-Cola and IBM took to get their companies known. It also discussed the Payment Systems, Business Strategies, Compensation Decision, and Total Compensation issues. Once you are done reading this paper you will understand my views on the different decisions these companies made for each issue above.

Payment Systems

When figuring out what type of payment system you would like to use to pay your managers, you want to look at the three different systems described in the book. There are the Localizer, Exporter, and Globalizer. (Milkovich & Newman, pg 532-533).

With Coca-Cola I would chose the Localizer: “Think Global, Act Local.” Since Coca-Cola want to focus on its local area, but still have the globalization, this to me, would be best suitable when deciding how to pay their managers. With this type of system, that basis its pay system on that location. (Milkovich & Newman, 2008). Each manager’s pay scale would depend on what country, state, city, or small town they were working in and doing business in.

When looking at IBM, and trying to figure out what pay system to use with this company, I chose Exporter: “Headquarters knows best”. I chose this because you have one company with the same idea no matter where it is located. Therefore you would pay the manager the same pay in any area. This company trains all of its managers the same and expects them to do the same job where ever they are placed.

Business Strategies

After reading the abstracted Financial Times article, I found Coca-Cola uses the term “multi-local.” I believe what they are trying to say is they had moved so quickly to expand and move ahead throughout the world that they forgot about the “little guys” around here. They needed to get back into the area...