It is evident that “Dr. Pepper/Seven-Up is not a very familiar name in the UK” and that is a clear pointer to the globalization challenges. According to Austin (2010), the challenges touch on leadership, change management, organizational effectiveness, compensation mechanisms, organizational learning, and employee development. The 5% per annum is an indicator of the significant challenges associated with the growth of the business that Dr. Pepper/Seven-Up brands are experiencing.
The issues are typical of employee recruitment and selection practises such as staffing and retention of new and old staff. Changes in the demographic profiles, sex, workforce diversity, and new cultural environments are some of the emerging challenges the company needs to cope with. It is imperative for the organization and its group of companies to consider employee rights, age discrimination, and equal pay requirements.
Austin (2010) adds to the list of challenges the ethical code of conduct that characterise different business environments, the use of lifetime employment vs. hire and fire systems, coping with employee rights, and the ability to conform to new union agreements and labour laws. The rationale is that HRM practises must comply with the legal requirements of each country such as recruiting and hiring qualified people with the right skills, knowledge, and expertise to work for the organization. Evidence from the case study shows that the company has a “continuous program of expansion worldwide”, which is achieved by investing in acquisitions, mergers, and new alliances.
Cadbury Schweppes companies, Dr. Pepper, and the family of companies were also experiencing challenges in employee placement and training programs, career planning, and performance appraisal systems. The rationale is to ensure that the business operations generate enough and sustainable profits to support the expanding business operations.
Another challenge is how to develop specialized talent with the ability to streamline human resource management issues at the business and co-operate levels. Besides, there is need to create a clear strategy structure for the organization. This is evident in the case study showing the need for skilled people to be promoted into the new structures who could use their skills to work for the company and make the mergers successful. Smith, Binns, and Tushman (2010) view such a situation as constituting the strategic approaches for coping with new opportunities that happen due to the merger between Dr. Pepper/Seven-Up and Cadbury Schweppes and Cadbury Schweppes’ family of companies.
Addressing the challenges
In Freeman’s (2010) language, I could recommend Cadbury Schweppes to recruit and select talented employees, establish the right employee mechanisms to address human resource compensation issues in different countries, initiate leadership training and development programs, and establish the ethical code of conduct that is unique to each business environment. Cantwell, Dunning, and Lundan (2010) emphasize that a company should comply with each country’s labour laws, tax and union laws.
According to Kaplan, and Haenlein (2010), the company should develop effective strategies to comply with the business regulations and laws of each country to avoid triggering expensive legal tussles and conflicts. Besides, Mohamed, and Lashine (2003) acknowledge that the company should endeavour to balance societal and corporate cultures to fit into the local sub-cultures. The company should endeavour to invest in corporate social responsibility, integrate information technology, protect organizational ethics and cultures, and to develop programs that could assist the managers to cope with emerging human resource challenges.
References
Austin, J. E. (2010). The collaboration challenge: How nonprofits and businesses succeed through strategic alliances. New York: John Wiley & Sons. Web.
Cantwell, J., Dunning, J. H., & Lundan, S. M. (2010). An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment. Journal of International Business Studies, 41(4), 567-586. Web.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. London: Cambridge University Press. Web.
Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business horizons, 53(1), 59-68. Web.
Mohamed, E. K., & Lashine, S. H. (2003). Accounting knowledge and skills and the challenges of a global business environment. Managerial Finance, 29(7), 3- 16. Web.
Smith, W. K., Binns, A., & Tushman, M. L. (2010). Complex business models: Managing strategic paradoxes simultaneously. Long Range Planning, 43(2), 448-461. Web.