This led to a massive revolt among consumers, who did not want this product. Instead, they demanded something that could bring both of these elements together. At which point, Coke would begin utilizing the original formula, with the understanding that consumer tastes were very fickle. (Lamb 2008, pp. 255 -- 257)
This forced management to slow down on: how they are introducing new products to the market and concentrate on their core business model. During the 1990's this structure became challenging for Coke as: they had bottlers and distributors around the world (with no way to effectively collaborate on a host of different issues). This was problematic, because Pepsi was continuing to introduce products that were in demand. As they would slowly eat away at: the market share that Coke had built over many decades. (Lamb 2008, pp. 255 -- 257)
To prevent the situation from spiraling out of control, Coke began to: use collaboration and they improved supply chain management to address these challenges. This meant that the company rolled out their Coke One program. This was a new initiative where the company would work with the different bottlers to identify products that would be in demand (in a variety of markets around the world). as, they would use technology to: improve communication, collaboration and to more effectively control the supply chain. These different elements meant that bottlers began to share with the company their ideas about: how they can develop a one of a kind product. (Lamb 2008, pp. 255 -- 257)
Over the course of time, this basic strategy was successful. The reason why, is because the increased amounts of communication gave management the ability to speak directly with top executives. While, allowing everyone to: identify waste and those products that were not in demand (in select markets around the world). Once this occurred, it meant that managers and bottlers were able to identify a new soda that addresses the needs of health conscious consumers (Coke Zero). This was the first soft drink that had zero calories and it was an immediate hit with consumers around the globe. (Lamb 2008, pp. 255 -- 257)
What this is highlighting, is how Coke was changing from: being a multi-national corporation to becoming one that is transnational enterprise. as, they have: operations in nearly every single country on Earth and many different brands that are easily recognizable to consumers. During the 1980's and 1990's, the company was having trouble accepting this fact. The reason why, is because management was trying to embrace strategies of the past that had mixed amounts of success for the company. This fooled many executives into thinking that their current business model was sufficient, for addressing the various challenges in the future.
However, once globalization began to have an effect on the industry, is when other competitors began to change their focus (i.e. Pepsi). as, they quickly realized that they need to: adapt their business model to the shifts that are occurring in many markets around the world. This is the point that Pepsi was able to take market share from Coke. The reason why, is because they incorporated all of the different elements from various business models into their structure. Over the course of time, this would force Coke to use a similar kind of approach to keep with the changes that are taking place. This is significant, because it shows how multinational corporations from specific countries (such as: the United States) have been shifting their business model to become transnational entities. (Lamb 2008, pp. 255 -- 257)
What is the role of discourses in maintaining legitimacy for companies in the facilitation of their management of workforces across national and cultural divides?
One of the biggest issues that management of many transnational corporations will face is: how they should address various employment and labor problems in different regions. This can be challenging, as many areas will have their own cultural traditions and customs that they are embracing. At the same time, the underlying amounts of unemployment will vary from one region to the next. This is because, there are different levels of education and skill sets for various countries. As a result, managing the labor force will mean that all transnational organizations must embrace a strategy that can take these views into account. (Leapak 2006, pp. 48 -- 59)
Evidence of this can be seen by looking no further than, the below table which is illustrating how this changing the unemployment rate in different regions.
The Unemployment Rate for Different Areas of the World
Region
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