“Coca-Cola in India”
BY:
SALLY WIJAYA
Executive Summary
This report will discuss about “Coca-Cola in India”, what are the barriers and how to solve it. The barriers includes: Coca-Cola’s difficulties in terms of the culture barriers between US and India, Coca-Cola’s respond towards India’s negative perception to MNE, Coca-Cola’s Changes to obtain more Indian market, and the commitment of Coca-Cola, PepsiCo and other MNE should demonstrate to work with different cultures and respecting the cultural and nature environment of the societies.
The analysis finds Coca-Cola may have an opportunity to cooperate with India in a proper way. The way of communication, business approach and different perception matters. If Coca-Cola can understand more about Indian market, it will be a great business for both parties.
Recommendations discussed include: * Coca-Cola Company should make commitments with Indian Government that they would never damage the natural resources again. * Coca-Cola Company should convince all the Indian people that their products are anti-pesticide. * Indian People should learn the importance of MNE and reduce the negative perception towards MNE. * All MNE should respect and understand the cultural differences.
Introduction
The Case Study proved that “Coca-Cola in India” have several barriers in cultural aspect and business approach. The argument between Indian government and Coca-Cola leads to a long-term difficulty for Coca-Cola to enter the Indian market.
During 1960s to 1970s, India’s economy was drop. It created many obstacles for the foreign companies to enter and invest in their market. Indian colonial legacy is highly suspicious of foreign investors, but the government tried to change the regulation and policy. In early 1990, the government reduced the restrictions of foreign investors and the economical crisis was saved.
In 1977, the Indian government demanded Coca-Cola’s secret formula. The
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