University of Bedfordshire

Unit Title & Code: Intercultural Business Competencies MAR038-6

Assignment Number and Title: Assignment 2: Report
Assignment Type: Report
Course Instructor: Michael Evans & Codrin Chiru

Submitted By
Name : Md. Shaon Molla
Student ID : 1866650
Course : Intercultural Business Competencies
Program : International Business
Intake : March-2023

Submission Date: 14July 2023

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 Executive Summery
This study, which is based on a case study of Coca-Cola Company, devotes extensive
attention to a wide variety of culturally related topics and concerns. In light of the
aforementioned aims, the research will concentrate on Coca-Cola Company as a model for
how to effectively manage a diverse workforce across cultural barriers. Conversely, because
Coca-Cola has struggled to strike a balance between its loose and restrictive cultures, the
climate inside the company is sometimes described as adversity. Milton Bennett’s
Developmental Model and conflict theory, for example, are basic cultural ideas that are
discussed in this study and are pertinent to the difficulties that Coca-Cola faces in a number
of locations throughout the world.

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 Table of Contents

Introduction……………………………………………….………………...............4

Findings
Background of the Coca-Cola………………………………….………………………………
5

Work culture at Coca-Cola…………………………………………………………….

……….5

Positive and Negative aspects of Coca-Cola..…………………………………….……………

6

Understanding the concept of cultural shock…………………………………………..…….6-

7

Impact of cultural shock on human behaviour……………………………………….

………...7

Cultural theories
Milton Bennett’s Developmental Model……………………………………………..…….8-10

Conflict theory……...……….
………………...............................................................11

Analysing conflicting values, beliefs and behaviour in working…………...…………….

…..11

Conclusion……………………………………………………………………………..…….12

Recommendations………………………………………………………………………..…13

References………………………………………………………………………...……..…..14

Appendix…………………………………………………………………………………15-19

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Introduction

Globalisation has made it easier for forward-thinking companies to enter more established
markets. Modern tech-driven organisations automatically adopted globalisation as regular
procedure. Therefore, businesses are actively looking for candidates from throughout the
world. As a result, businesses are actively attempting to create an environment that is inviting
to individuals from all backgrounds. Businesses are promoting an environment that is
inclusive of individuals from all walks of life by abiding by national government rules and
making equal commitments internally. According to a recent survey the Coca-Cola company
is a male-dominated company. 75% of The Coca-Cola company employees are male and
25% of The Coca-Cola company employees are female. The most common ethnicity at the
Coca-Cola company is white. Coca-Cola currently has 19% Black, 14% Hispanic, and 7%
Asian employees and 8%, 11%, and 9% of senior leaders respectively. This demonstrates the
company's commitment to diversity and inclusion since it demonstrates that it understands
the value of integrating people from different cultural backgrounds into its daily operations.
This condition might make it challenging to communicate across cultural boundaries. This
report intends to do so by shedding light on the Coca-Cola Company's diversity management
strategy. Therefore, this essay will give a more thorough explanation of what is meant by
"cultural shock" and how it could change the dynamics of relationships.

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Findings
Background of the Coca-Cola Company
The Coca-Cola company is a famous American multinational manufacturer of soft drinks and
beverages. The company was founded in the year 1892. Atlanta serves as the company's
corporate headquarters. The Coca-Cola Company's main product category has historically
been carbonated soft drinks. It is the biggest manufacturer and distributor of syrups and soft
drink concentrates in the whole globe, serving more than 200countries and offering more than
500 brands. However, despite its historical success, the Coca-Cola Company continues to be
a conventional business that has an impact on a variety of communities. More than 1.9 billion
servings of Coca-Cola are sold each day. To achieve its ascent to the top of the soft drink
market, Coca-Cola leveraged a variety of technologies, creating new ones and constructing
paradigms that burst the status quo like the cap off a soda bottle. Coca-Cola improved Coke
as a beverage through technology and popularised it all over the world. The major rival of
Coca-Cola is PepsiCo, which has factories in the same markets. However, other beverage
producers like Red Bull, Keurig Dr. Pepper, and Nestlé all represent a significant threat to its
market leadership. In different western countries, the anti-racial “Black Lives Matter
Campaign” became popular. In order to send a strong message, The Coca-Cola Company also
launched a campaign in the training session for employees, which is “Try to be Less White”.

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Work Culture at the Coca-Cola Company

Coca-Cola's culture has played a significant role in the organization's success in achieving its
positioning objectives. Coca-Cola, which is without a doubt the market leader in the beverage
sector, has established a reputation for excellence in part by fostering a supportive and
cooperative work atmosphere. Coca-Cola regards education as a tool for enhancing efficiency
throughout the company's many departments. The business's ongoing expansion is proof of
its success in upholding its corporate culture and preparing its employees to fulfil operational
requirements. The sharing of information and skills among employees is highly valued at
Coca-Cola. When everyone at the firm works together and continues to learn, the
organisation as a whole may reach new heights of success (Hartung et al, 2019). Coca-Cola
promotes this concept through initiatives, projects, and frequent meetings that encourage
worker engagement in decision-making and open communication.

Positive and Negative Aspects of the Coca-Cola Company

Coca-Cola has promoted a workplace where employees' needs and wishes are prioritised. The
business is committed to supporting the local community. Since Coca-Cola is essentially a
service industry, it seems to reason that this would be the case. The corporate culture
encourages employee involvement in the creation of new and improved internal procedures
as a way to demonstrate to management how much they are appreciated. Coca-Cola is
committed to fostering an environment at work where workers are encouraged to develop
their enterprise and functional skills in order to get ready for the future. This is accomplished
through structured learning, teamwork throughout the whole organisation, and engaging in
learning activities that provide practical experience. This is intended to increase their
productivity, quality, and effectiveness at work. The company invests in the futures of its
workers through internships, foreign exchanges, and leadership development programmes.
Coc-Cola's strong corporate culture, which loves its workers and promotes both personal and
business growth, puts the organisation in an excellent position to improve the quality of its
services.

However, the organisational culture does not place enough value on items like some of their
advertising campaigns and the number of ethnically diverse employees. Coca-Cola may gain
by fostering an innovative and calculated risk-taking culture. Other thing is that they never
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come with their main recipe that may creates some conflict about their operation in some
region.

Understanding the Concept of Cultural Shock

Cultural shock is a negative passive reaction to a set of noxious circumstances (Oberg 1960).
An active process of dealing with change (Ward, Bochner & Furnham (2004).
The term "cultural shock" refers to the distressing effect of sudden exposure to something
unfamiliar. Workers could face culture shock if their organisation adopts a globalised
business strategy. Coca-Cola recruits people from all around the world, much like other
multinational corporations. Without adequate orientation, workers could feel cut off from the
company's beliefs and practises. Culture shock cannot be avoided without careful preparation
and well-thought-out integration activities. Coca-Cola's renewed commitment to the world
has led to the beverage company aggressively looking for fresh, innovative talent throughout
the globe. As a result, Coca-Cola is always looking for qualified people anywhere in the
world. However, due to the company's unique work atmosphere, certain Coca-Cola
employees may experience culture shock. Oberg Kalervo's work popularised the phrase
"culture shock" in the mid-twentieth century. When someone has completely acclimated to
their new surroundings, they have progressed to the last stage of culture shock. Culture shock
is frequent for new Coca-Cola employees because of the unique chain business practises,
although it may be mitigated by the company's active attempts to cultivate openness and
acceptance.

Impact of Cultural Shock on Human Behaviour

Some noticeable symptoms of cultural shocks are, confused about what to do, anxious,
frustrated, exhilarated, and excited, Inappropriate social behaviour, Inability to get along with
colleagues, managers, classmates, teachers, isolated and lonely, depressed, unable to work
well, guilty. Some common symptoms of cultural shocks are homesickness, boredom,
withdrawal seeing only people from your own country, avoiding contact with host nationals,
need for excessive amounts of sleep/not being able to sleep, compulsive eating or not being
able to eat, compulsive drinking, irritability, exaggerated cleanliness, marital stress, family
tension and conflict, chauvinistic excesses, stereotyping of host nationals, loss of ability to
work effectively, unexplainable fits of weeping, physical ailments. Individual behaviour is
significantly influenced by cultural norms. It is crucial to understand that cultural differences

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may have a significant influence on how people behave. More employees will experience
diverse cultures as more businesses go into foreign markets. People's behaviour may be
affected psychologically by culture shock. The attitudes and productivity of employees may
suffer as a result of culture shock. However, Coca-Cola has always maintained the view that
teamwork fosters the development of the finest ideas. Collaborating raises the likelihood of
developing creative, effective solutions (Gaetani et al, 2018). Coca-Cola offers its workers a
welcoming and inclusive work atmosphere, which diminishes the influence of cultural
differences. Yet another potential root cause of synergy issues is a general lack of competence
and knowledge in the workplace. As a result, employees could be less inclined to recommend
even little adjustments to current practises. The Coca-Cola Company's capacity to effectively
execute new marketing concepts will determine its future, but if its team has trouble
transitioning to the company's new location and new marketing methods, this might be in
peril. According the the information obtained indicates that Coca-Cola does not employ as
many women as men, which may be a cultural shock to any women who work there. When
we speak about culture, we also refer to norms and values such as the idea that everyone
should be compensated fairly for their work (Cordeiro et al, 2022). Due to the company's
apparent lack of interest in such concerns, Coca-Cola employees worry they may experience
cultural shock.

Cultural Theories

Milton Bennett’s Developmental Model

Milton J. Bennett's Developmental Model of Intercultural Sensitivity (DMIS) is a grounded

theory based on constructivist communication and perception theory, sometimes it called
Bennett Scale. It has main six stages, these stages include denial stage, defence stage,
minimization stage, acceptance stage, adaptation stage, and integration stage (Cushner,
McClelland, & Safford, 2012). Each stage describes a cognitive structure that is
communicated through attitudes and behaviours (Bennett, 2011).

Denial

When individuals disregard cultural differences or think they are unimportant, this is known
as denial of cultural diversity. When they deny that there are cultural differences or that such
differences might be significant and detrimental or when they have a narrow, homogenous,
and sometimes self-serving view of individuals from other cultures. For instance, those who
are in the denial stage will categorise people from other cultures as "foreigner," "immigrant,"
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or "Asian," or they will stereotype, demean, or dehumanise others by assuming that
differences in cultural dispositions must be the result of character flaws, intellectual
deficiencies, physical limitations, poor work ethics, or other innate traits. People in the denial
stage frequently do not want to disparage other cultures or groups, but their naivete may
nevertheless cause them to injure others or lead them to endorse unfair laws. People in the
denial stage frequently do not want to disparage other cultures or groups, but their naivete
may nevertheless cause them to injure others or lead them to endorse unfair laws. For
example, we can talk about the middle east, where they are very sensitive with the food habit,
they always asked for Halal food for their religious perspective that is why Coca-Cola sold
their beverages by using halal tag to their bottles at Muslim countries.

Defence

When people view other cultures in polarised, competitive, zero-sum, or us-versus-them

terms, defence against cultural variation develops. when they elevate their own culture above
that of others (such as in white nationalism); or when they feel attacked or victimised in
debates about prejudice, bigotry, or racism (as seen by their withdrawal, leaving the room,
sobbing, being aggressive, etc.). Defence can also take the form of actions that restrict access
or opportunities for persons from other cultures, such as opposing affirmative action laws or
diversity recruiting programmes. In cross cultural settings at Coca-Cola, the defence stage
may manifest as some protests or community opposition campaigns against racial
integration such in some developed countries. In order to send a strong message, The
Coca-Cola company once launched a campaign in the training session for employees,
which is “Try to be Less White” that made a complex situation for the company in some
countries, this campaign affected the morale of the white employees of Western countries
at the workplace of the Coca-Cola company including UK. Critics argued that the
company also could have promoted “Try to be Less Black” slogan if this “Try to be Less
White” slogan is not a racial slogan.

Minimization

The minimization of cultural difference happens when people believe that others share their
unique cultural worldview, when they believe that their culture's values are fundamental or
universal human values that apply to everyone, or when people conceal, ignore, or downplay
the significance of cultural differences for example, when organisational leaders respond to
instances of racial, ethnic, or gender bias in the workplace by saying things like, we don't
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tolerate that kind of behaviour here. Minimization can also appear in statements that "deep
down" people are similar to one another or in assertions that human commonalities are more
significant than cultural differences. These arguments indicate that cultural distinctions are
inconsequential or can be ignored.

For instance, in different western countries, the anti-racial “Black Lives Matter Campaign”
became popular. In order to send a strong message, The Coca-Cola company also launched a
campaign in the training session for employees, which is “Try to be Less White”.

Acceptance

People accept cultural differences when they acknowledge that culture shapes
diverse ideas and values, that various behavioural patterns exist between cultures,
and that other cultures have valid and important viewpoints that should be respected
and treasured. The acceptance stage may also be characterised by an increased
curiosity or interest in different cultures, and individuals may start to seek out cross-
cultural connections and social engagements that they may have previously avoided.
In terms of Coca-Cola acceptance stage, it may manifest in changes to the view of
perspective of agree or give support to a specific community those sometimes or
some part of world denied, such as In the Great Britain Coca-Cola company support
the LGBT community where previously it was ignored by many.

Adaptation

When someone can acquire the viewpoint of another culture, when they are able to
understand the experiences of others intellectually and emotionally, or when they are
able to communicate with others from various cultures in a natural, real, and
acceptable way, these people have successfully adapted to cultural diversity. The
adaptation stage may also be seen when individuals from various cultural
backgrounds are able to converse about their cultural viewpoints and experiences in
a manner that is sensitive to and versed in the other culture (Bennett has referred to
this process as "mutual adaptation").
In the terms of adaption stage of Coca-Cola company, the company successfully
expand their business over the Muslim territories, fer years back many Muslim
countries deny consuming the coke for halal purpose, however when the company
make them ensure that their products are halal, and it is not against their religion

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then the whole community adopt the coke as now it is the second consumed
carbonated beverage there.

Integration
Integration of cultural diversity happens when a person's identity or sense of self
changes to appropriately and authentically absorb the values, beliefs, views, and
behaviours of different cultures. "Integration of cultural difference is the state in
which one's experience of self is expanded to include the movement in and out of
different cultural worldviews," Bennett adds. People from non-dominant groups
living in dominant-group communities, expatriates who spend a lot of time abroad,
and so-called "global nomads" who spend their whole lives travelling and living in
remote locations all over the world are the groups most likely to go through the
integration stage. In cross cultural settings at Coca-Cola, integration is most likely to
occur in the company’s regional office that serve culturally diverse employees and
families, that are staffed with adults whose demographics mirror the diversity of the
employee and family population, and that teach a multicultural, and possibly even
multilingual, curriculum that explicitly represents and integrates the varied cultural
experiences and backgrounds of the community.
Conflict Theory
Conflict among employees is a normal part of every company of any significant size.
Although Karl Marx originated the idea of conflict in a quite different context, its importance
in today's business culture cannot be overstated. Any system would become violent if
competition increased without resources being produced to keep it going. In a nutshell,
conflict is a symptom of systemic failure, with resource scarcity being the root of the
problem. There may be a correlation between social disparities, religious extremism, political
backwardness, and the rise of violent conflict. However, conflicts between cultures, are
completely different since they serve to emphasise the profound differences between the two
civilizations. Coca-Cola, a worldwide beverage company, offers its workers a great deal of
flexibility in how they approach their daily work since it values their creativity and
innovation and does not want to impede either. While several of its rivals are renowned for
their accommodating work environments, many businesses in the same sector choose a
tougher approach. Even if they are generally outstanding workers, those who can analyse and
contrast the two cultures of their organisations may find themselves at conflict. According to
conflict theory, fitting in with the culture at hand is the best way to cope with this issue.

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Analysing Conflicting Values, Beliefs, and Behaviour in Working
Coca-Cola is aware of how important it is for the health of its customers to eat the
beverage it offers. The business has developed a plan to satisfy the demands of its
clients for enticing, healthful drinks. They constantly implement new strategies to
guarantee the greatest possible degree of quality because of this. The business cares
as much about providing its several product lines to clients as it does about their
pleasure and enjoyment. The company, for example, recognises the importance its
customers have on keeping up with current events. Numerous factors contribute to Coca-
Cola's popularity as a beverage, the diet version with no added sugar being the most salient
among them. As far as design goes, this is just breath-taking. A large part of why Coca-Cola
has become a global phenomenon is due to the superior quality of its beverage and customer
service. The brand takes great satisfaction in more than just the drink's excellence; also, it is
known for its excellent packaging and catchy motto, which draw customers in time and time
again.

Conclusion
In this report, we use a case study analysis to look at the cultural issues Coca-Cola
encounters. As a result, the research provides a thorough and organised investigation of these
concerns. The organisation has thus implemented an open-door policy to encourage
employees to submit their own views and knowledge. Due to its inadequate diversity
promotion and support methods, Coca-Cola has experienced considerable difficulties. “Try to
be Less White” campaign affected the morale of the white employees of Western countries at
the workplace of the Coca-Cola company including UK. Different conservative
commentators, lawyers, and intellectuals opposed this “Try to be Less White” campaign
during training sessions. Looking into these criticisms, the management of the company has
decided to take the feedbacks of the employees on this issue. Critics argued that the company
also could have promoted “Try to be Less Black” slogan if this “Try to be Less White” slogan
is not a racial slogan. As it becomes a matter of ethnicity issue company removed this slogan,
on the other hand they showed their cultural responsibility by supporting the Great Britain’s
LGBT community. For the few suggestions offered in the report for developing an effective

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workplace, Coca-Cola may not need to alter its dedication to diversity or its commitment to a
multicultural attitude. The report stresses the significance of slogan and advertisement tag
barriers. Halal labelling and cultural barriers have greatly work out Coca-Cola's plans to
develop in the Middle East.

Recommendations
 Constant Communication: Constant communication between the company’s
management and employees is important. Effective communication can open
up doors to possibilities you would not have otherwise realised existed. Coca-
Cola uses almost every available form of communication so that they may
effectively and efficiently exchange information within or outside of their
organisation.
 Erase the Information Gap: The management should evaluate and overcome
the possibilities of information gap so that company can save any possibilities
threats from its inside and outside operation. Information failures can lead to
consumers making poor buying decisions. Sometimes it leads to
misunderstand among the employees also that can be causes of profit loses.
 Integration of Workplace Diversity: Integration of cultural diversity at the
workplace is important. According to the recent report Coca-Cola has 75% of

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 male workers they should concentrate on this matter to decentralization of this
ratio and also, they should increase the employees from black and Asian
community to balance the cultural diversity.
 Local Cultural Dimension: The company should ensure that the workplace
culture is significantly aligned with the national cultural dimensions. It will
increase the employee’s engagement; it improves workflows and guides the
decision-making process. It also helps teams overcome barriers of ambiguity.
Practicing the local culture prevent the employee turnover, People who feel valued
and respected at a company are less likely to leave it.

References
 https://www.sciencedirect.com/science/article/abs/pii/S0148296320300990?via %3Dihub.
 Bremner, J., 2021. Coca-Cola faces backlash over seminar asking staff to ‘be less
white’. [Online]. Available at: https://www.independent.co.uk/life-style/coca-
cola-racism-robin-diangelo-coke-b1806122.html . [Accessed on July 6, 2023].
 https://www.indeed.com/career-advice/career-development/why-organizational-
culture-is important
 Britannica., 2023. The Coca-Cola Company. [Online]. Available at:
https://www.britannica.com/topic/The-Coca-Cola-Company . [Accessed on July
6, 2023].
 https://organizingengagement.org/models/developmental-model-of-
intercultural-sensitivity/
 The Coca Cola Company., 2023. About the Coca Cola Company. [Online].
Availableat:https://investors.cocacolacompany.com/about#:~:text=The
%20World's%20Largest%20Nonalcoholic%20Beverage,world%20and
%20make%20a%20difference. . [Accessed on July 6, 2023].
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  https://www.coca-cola.co.uk/our-business/history
 https://breo.beds.ac.uk/ultra/courses/_61983425_1/outline/file/_8079702_1

Appendix

SL No Student Name Student ID

1 Md. Shaon Molla 1866650

2 Gurjot Singh 1972116
3 Sarabjit Kaur 2181961
4 Taranvir Singh 1976785
5 Pushpinder Singh 1977772
6 Jaswinder Kaur 1976224

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7 Harvinder Singh 1973055
8 Bhawna Ahlawat 1980486
9 Davinder Kaur 1970902
10 Pooja Saini 1974238
11 HamdeeHamed 2141924

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