Transcript Coca Cola - HEC Paris

COCA COLA ENTERPRISES
BEST IN FRANCE CASE STUDY
DECEMBER 18th, 2003
By:
Mutaz Al Maani
Dung Nguyen
Carlos Palacios
Brian Piech
Andrei-Cosmin Rotaru
Eduardo Siqueria
EXECUTIVE OVERVIEW

Non-alcoholic refreshment
business;
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90% of product is
produced in France with
French ingredients;
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There is a unique, long,
evolving history of CocaCola in France;
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For international growth, HRM –
specifically, individual people –
is the most important element;
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Excellent synthesis of CocaCola’s vision & French culture
and values
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Advice: no matter how large a
multinational corporation grows,
it has to “stay local”
FROM A SMALL FRENCH COMPANY TO A LARGE
SUBSIDIARY OF AN AMERICAN MULTINATIONAL

In the beginning, the U.S. Coca-Cola
company monitored quality standards and
handled publicity and marketing efforts;

After gradual steps, in 1996 the French
company became a subsidiary to CCE in the
U.S.; the French operations still retain local
flavor;
COCA COLA ENTERPRISES FRANCE

70 year history in France;
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Humble origins: first bottle of Coke sold in a
small café by Saint Lazare station in Paris;

Non-alcoholic refreshments;

Averaging 8 to 9% growth per year;
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Recently entering bottled water market.
KEY FIGURES IN FRANCE
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Net sales: €1.3 billion

Market Share, non-alcholic drinks: 9.1%

Market Share, soft drinks: 57%

Employees: 2,500
COCA COLA FRANCE
 Clients
include small local restaurants,
cafes, small distributors, and direct to
consumer
 90%
of the product is made in France
with French companies providing
ingredients and support services
WHY IT CAME TO FRANCE

At first, international growth wasn’t planned

Coke was licensed out to local partners

International expansion happened simultaneously
around the world

Until the 1990’s, Coca-Cola France was locally run, with
only marketing being handled by the headquarters in
the U.S.

Coca-Cola Enterprises France is now a direct
subsidiary of Coca-Cola Enterprises in the U.S.
COCA COLA VALUES
Due to the length of time Coca Cola was
run in France as a separate organization,
by the time the US regained a controlling
interest there was already a healthy
synthesis of U.S. and French culture.
Coke’s
Values
French
Values
COCA COLA VALUES
Some key Coca-Cola values are:
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Passion for your work
Humility
Professionalism
Ethics
Team work
CONSTRAINTS IN FRANCE
Coca-Cola has a long and unique history in
France. Its presence has evolved over time,
with a widening and growing distribution
network and growing client and customer base
As Coca-Cola Enterprises France is, in essence,
a French company with little interference from
the U.S. headquarters, there is minimal effect
of constraints
ADAPTATION TO FRANCE
PART I – THE DISNEYLAND PARIS SYNDROME

Key date for adaptation comes in 1996, when
the French company came under direct
control of Coca-Cola in the U.S.

At first, it was the “Disneyland Paris effect” –
American managers were brought in who did
not know the local business climate, culture,
or history

Coke tried to make the French company a
carbon copy of the American one
ADAPTATION TO FRANCE
PART II – THE KEY IS HUMAN RESOURCE MANAGEMENT

A vital element to succeed in France is to take the time
to learn the language, to understand cultural means of
communication;

It is critical to choose job assignments overseas with
care and insight;

The second batch of American managers were eager to
live in France, had taken the time to learn French, and
were open to learning how things were done in the
past.
ESSENTIAL ADVICE

Local people need to be involved and part of
the decision making process

Knowledge of language and culture is not a
luxury – it is a necessity

There needs to be a synthesis of local values
and global vision
Similarity to Starbucks’ Philosophy
Starbucks CEO Orin Smith’s 5
Lessons on Expanding Overseas
• Don’t assume the market is like America, no
matter how similar the culture;
Does Coca-cola
France adhere to
these
philosophies?...

• Set up partnerships abroad to grow faster;
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• Never become better at opening stores than
operating them;
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• Hire locally for both managers and rank-and-file
employees;
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• Adapt to local culture and tastes.
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…YES!
Sources
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Christian Polge,
Directeur General, [email protected],
01 58 00 29 08
Marie Garnier,
Assistant to the Directeur General,
01 58 00 29 08
“A Lesson in Real Coffee Culture,” Shirley Leung,
Wall Street Journal Europe, December 15, 2003.
Class discussions, slides, and handouts.
OUR TEAM

Mutaz Al Maani
Résidence Expansiel, 01 39 67 8162

Dung Nguyen
Résidence Expansiel, 01 39 67 8454

Carlos Palacios
Résidence Expansiel, 01 39 67 8117

Brian Piech
Résidence Expansiel, 01 39 67 8353

Cosmin Andrei Rotaru
Résidence Expansiel, 01 39 67 8707

Eduardo Siqueria
Résidence Expansiel, 06 87 43 9174