Introduction

Colgate-Palmolive (CP) was a leading consumer product company with product brand were
offered such as Colgate toothpaste, Palmolive dishwashing liquid, Ajax cleanser, Irish spring
soap and Hills science diet pet food.
The company were also recognized as its outstanding approach to manage international
career development. By 1993, it had 170 expatriates in key management positions all over the
world. International experience was considered as important matter to career development,
and virtually a requirement for anyone aspiring to senior management.
However, increasing number of talented young manager were becoming reluctant to
international assignment, because of their spouse rejected to move outside US as they had
careers of their own and couldnt easily move abroad. Therefore, management at CP were
thinking carefully about whether to adjust their approach toward international career
development.
Why international assignment is important for CP?
According to their improvement in sales all over the world, international office contribute
significance number of total sales comparing to US market.
In 1928, after merger process, they started to expand abroad.
By 1930, the firm had subsidiaries in several European countries, as well as in Argentina,
Brazil, India, Mexico, South Africa, and the Philippines.
By 1961, CPs products were sold in 85 countries around the world. By that year, they book
increasing activity in sales by growing it 53% of total company sales and accounted for 78%
profit.
During the 1970s, CP undertook series of acquisitions and became a more diversified
company, shown by revenues grew up to $4.9 billion until 1984.
During 1970 and 1980s, it acquired and divested in several companies and continued to find
new subsidiaries in Latin America, Africa, and Asia, including several populous countries.
In 1992, CP acquired Mennen, a private firm best known for its line of deodorant product.
However, international sales were more important than ever, and for several markets like
Europe, it contributed 27%, Latin America 21 % and Asia-Africa 17%. Whats a big number!

Managing international Expansion

Actually, CP had consistently taken a measured approach toward entering a foreign market.
They start by import its product first and then if sales were strong, CP would set up a country
subsidiary and begin manufacture locally. New subsidiary was run by an experienced
manager, sent in from CP headquarter or from other subsidiaries.
In earlier, CP initially organized its activities on a country by country basis, with each foreign
subsidiary reporting directly to corporate headquarters. But, with increasing global
competition in consumer goods and urgent needs on worldwide coordination and shifted
away from strictly geographic approach, then CP introduced new unit, called Global Business
Development, which was created as global headquarter, gathering consumer and competitive
information, developing global strategies, assessing opportunities and risk around the world,
and transferring knowledge among countries.
As growing business again, CP organizational structure was described geographically, with
the president of four major regions, North America, Europe, Latin America, and Asia pacific
then they should report to COO (chief of operational officer).
The Role of Expatriate Manager
CP had its manager dispatched to new market all the world. Their expatriate manager after
several times worked in one country then moved to another country , transferring their
expertise and helping to disseminate CPs management approach.
Once in the foreign country, the expatriate manager had to do their best job and adapt to local
conditions, and sometimes diet, climate, and standard living were often very different from
what they were used to.
Several problems that they had to face are:

Differences in cost of living

In the earlier phase, some foreign assignment were not attractive as manager feared financial
sacrifice and conversely, other assignment became attractive as a way to save money rather
than for merits of the job.

Pension planning

The manager does not become fully vested for pension purposes in any one.

Then, toward this kind of problem, the company decided to establish a single corporate policy
regarding the international assignment. The aims are to have some consistency in structure
and expatriate policy.
Colgate-Palmolives international assignment policy
The policy was developed to provide a standardized set of procedures and entitlements for its
expatriate managers. The policy itself was intended to be progressive, comprehensive, and
sensitive to employee and family needs.
The employees were shifted to US status and considered to be American employees for
purposes of pension and benefits.
The policy had several important components:

Prior accepting an overseas assignment , managers were allowed to take 5-days trip,
with expenses paid, to visit assignment location.
Upon acceptance assignment, manager, and his spouse were offered language courses
at company expenses
Medical examination also provided
While overseas, CP will reimburse the cost of private school tuition for the children 419 years.
Employees also received annual home leaves so they could return to their home
country for an extended visit each year.

Several policy were made to ensure that expatriate managers had a similar level of disposable
income as their counterpart did at corporate headquarter.
In addition, the company paid for moving and relocation expenses at the beginning and the
end of the assignment, provided relocation allowance, paid temporary living expenses upon
arrival and protected employees against loss in real estate transaction.
Basically, the company was trying to address a wide range of concern, both personal and
financial.
Profile of Colgate Palmolives Expatriate Managers

A manager who were chosen for international policy if they had distinguished themselves in
their initial assignment and were judged to be of a high potential person.
After they can accomplish their job in three to five years in one expatriate position, the
manager might be offered new positions in another country, either as a promotion or as
rotation.
The problem that often occurs regarding the policy was:

Common concern had to do with host countrys religion or social practices, its
language, or with matters of health and safety.
Family reason

Improvement to solve the problem

According to survey that had been conducted in order to gain more information why most of
talented manager didnt want to get international assignment, the research shown that:

the great majority of employees found that international assignment policy fair and
comprehensive.
They are suggested that more be done in preparing expatriates and their families prior
going abroad.
Many employees put dissatisfaction on the issue of spouse employment, complaining
that their spouses were not allowed to work in the foreign country or they cant find
suitable employment in their chosen professions.

According to result, company response to make orientation program to help expatriate and
families anticipate cultural differences and personal stresses they might find when living
overseas.
Also, they came out with the program, called the spouse assistance program.
The spouse assistance program
The program was initiated to help spouses assess and achieve the transition to a foreign
location.

Program endeavour to help to inform employees and spouses of the career

development opportunities overseas
Provide networking assistance through their membership to find new career
opportunity.

Spouse reimbursement account

This account was created to assist a spouse in locating job for continuing a career overseas,
company will provide reimbursement account equivalent to $7,500 USD

Tuition reimbursement
Tuition reimbursement was provided to support spouses who pursue career-related skill and
competency development overseas.
Instead of giving spouse assistance program, CP also provides another program and facilities,
such as:

Tax equalization

Goods and service

Housing

Relocation to the assignment location

Sale or rental the principal residence

Relocation allowance

Children education reimbursement

Vacation and Leave

Home leave

Post allowance

World opportunity

Critical Point
The policy is designed, of course, to support the success of the business by facilitating the
placement of skills in the global environment. It is the employee who takes responsibility for
the success of his assignment, but in order to ensure professional success, the policy also
seeks to accommodate family interests in consistent and equitable ways. Employees, who are

identified as having high performance and potential, have various opportunities to go beyond
the National boundaries and make a mark at the international level. There are plenty of
examples of employees who have moved to Divisional/Global assignments and successfully
delivered business results. Opportunities are available in each and every function.

Strong points
This policy is governed by some well-defined principles, of which the following are some of
the most important, namely: Fairness: the fair treatment of the family, recognizing their
contribution to the success of the assignment. This particularly applies to the educational
needs of the children and the disruption of dual careers. In this respect, there is a clear
partner assistance program.
Weakness
Picking up the wrong candidate for an international assignment, a costly lesson for both the
individual and the company. So more and more companies turn to test techniques like
Overseas Assignment Inventory that allows a company to compare a candidate against a
profile of success based on a study of thousands of international managers. Also, Assignment
is used to fill the skill gap.
Sometimes, the certain position is designated to expatriate only. It will exclude the local
candidate with a good capacity for that position.
When an MNC (Multinational Corporation) designs a policy regarding international career
development, they might have the following consideration in advance:

Make decentralized management style to exercise great autonomy.

Use expatriate managers with functional managing experiences to lead the local employees
and operate their subsidiaries.
Provide expatriates with consistent and equitable treatment such as pension, benefits, and
reimbursement for overseas assignment.
Measure the cost spending on housing, moving, settling in, children education
reimbursement, temporary living expenses, home leaves, etc.
Consider the expatriates spouses income replacement in dual-career families.