Case Study
Coca-Cola Beverages Africa In 2014, Cola-Cola, SABMiller and Gutsche Family Investments took the decision to merge and integrate their non-alcoholic, ready-to-drink beverage businesses in 12 southern and east African countries, including Ethiopia, Kenya, Namibia and Uganda. Africa provides attractive opportunities to companies that want to expand because of an increase in disposable income and growing populations. The merge between the three companies involved 30 bottling plants and 14 000 employees and is likely to lead to the development of the best operating practices on the African continent. It will also provide African customers with greater choice, broader availability, and better value. In addition, Coca-Cola Beverages Africa will continue with the economic and social development of the communities it currently serves, and specifically focus on improving well-being, access to clean water and gender empowerment. Operating across geographical boundaries is a characteristic of a globalised economy and a driver of organisational growth. Doing business across boundaries requires collaboration, a common vision and establishing uniform performance standards, while acknowledging different customer preferences. Owing to underdeveloped infrastructure in some African countries, as well as unstable governing principles, it is important to have some flexibility. Flexibility is often created through partnerships and networks with experienced locals in various African countries. While these local businesspeople agree to clear business outcomes, they are empowered to operate in a way that best suits local business conditions. Sources: http://www.sabmiller.com/; http://www.bdlive.co.za/; http://www.ibtimes.co.in/
Question:
Outline the most crucial behaviours that will be required by the managers of Coca-Cola Beverages Africa to successfully integrate and expand into Africa. Explain why you believe these behaviours are crucial in this situation. (10)
