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Cola wars continue: coke and pepsi in 2010 - Case Study Example

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One of the key issues to be faced by Coke and Pepsi to manage this change and transition is to train and develop their human resource base to adapt such change easily. With the initiatives of gaining control of bottlers, the challenge to manage human resources will be huge. Both…
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Cola wars continue: coke and pepsi in 2010
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HR Analysis As Coke and Pepsi move forward from this point, are there any important human resource issues that should be considered as part of theircorporate and business strategies? Explain answer.
One of the key issues to be faced by Coke and Pepsi to manage this change and transition is to train and develop their human resource base to adapt such change easily. With the initiatives of gaining control of bottlers, the challenge to manage human resources will be huge. Both the firms therefore need to focus upon improving the staffing techniques to ensure that cost effective human resources operations can be carried out. Aligning HR with the overall strategic objectives of the firm will also be another challenge with managing different micro-cultures within the organization may prove a difficult task. This could be due to the fact both Coke and Pepsi are heading towards non-carbonated businesses wherein new firms are going to be acquired. Managing organizational culture and achieving HR synergies can be a challenge.
2. Strategy Analysis
What are the potential drivers of structural change? Consider external factors
One of the key drivers for structural change within the industry is the health factor which may drive consumers to look for healthy alternatives. With focus on healthy and clean living, carbonated drinks may fail to win consumer confidence and resultantly their demand may decline in future.
Another potential driver for change may be the emergence of smaller and regional level of players which can gain prominence at the regional and local level. Alternative products with sharp focus on managing a small niche of the market may challenge the dominance of Coke and Pepsi. Both the firms therefore may engage into another drive of mergers and acquisitions to withstand this challenge at the small regional level. Read More
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