Preview

Coca Cola in India

Better Essays
Open Document
Open Document
2413 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Coca Cola in India
The Case Study Report
“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



References: Bytes, A. 2010, ‘6 cultural differences between india and the u.s.’, alibytes.com, viewed 26 July 2013, <http://www.alibytes.com/?p=723> Differencebetween 2013, Difference Between American and Indian culture, viewed 26 July 2013, <http://www.differencebetween.net/miscellaneous/difference-between-american-and-indian-culture/>. Indexmundi n.d, Historical Data Graphs per Year, viewed 24 July 2013, < http://www.indexmundi.com/g/g.aspx?c=in&v=69> Puja 2013, ‘Chai: The National Drink of India’, ndiaphile.info, weblog, viewed 26 July 2013, <http://indiaphile.info/chai/>. Righttowater n.d., Case against Coca-Cola Kerala State: India, viewed 25 July 2013, <http://www.righttowater.info/ways-to-influence/legal-approaches/case-against-coca-cola-kerala-state-india/> Unilearning 2000, Good and poor examples of executive summaries, viewed 25 July 2013, <http://unilearning.uow.edu.au/report/4bi1.html>

You May Also Find These Documents Helpful

  • Powerful Essays

    Coke and Pepsi Issues

    • 5071 Words
    • 21 Pages

    Buchholtz/Carroll. (2007 January 31st). Business and Society 7th Edition. Case 23 Coke and Pepsi in India: Issues, Ethics, and Crisis Management Pg.855 – 860. Publish by Nelson Education Ltd.…

    • 5071 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Coca Cola Case Study

    • 1918 Words
    • 8 Pages

    Firstly, Gupta must understand that Coca Cola has faced several crisis in the past. On February 2003, CSE (Center for Science and Environment), an activist group in India has already brought the issue about Coca-Cola’s Kinley Bottled water which was declared containing pesticides residues, six months before they brought up the same issue about Coca Cola. Since Coca Cola India remained silent about the first issue, the buzz was created and spread, made it even harder to maintain the situation. While in 1997, Coca Cola also had a problem in India. They had to leave India, instead of revealed their formula to government, when Janata Party led India and oblige Coca Cola, and other foreign companies, to dilute their equity stake until 40%, as written under Foreign Exchange Regulation Act (FERA). Any other crisis were happened too on other countries such as in Belgium and Atlanta.…

    • 1918 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Coca Cola should choose to emerge and set itself apart from its biggest competitor, Pepsi, by accepting a more socially responsible. In order to accomplish this, Coke can align itself with the CSE goals for an environmentally safe and industrialized India. Coke should recognize the enormous reputational benefits that could come from such a partnership in correcting the pollution problem in India. Taking on social responsibilities has a number of positive outcomes for corporate leaders. Once the world community learns of Coke’s environmentally responsible goal in India, the company will project a positive interest in India and to the rest of the world (Argenti, p.65 ). The people of India have shown that they want a company that is concerned about their health, welfare, and environment as “sales down over 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory and 25-30%2 year-to-date growth” (Argenti, p.285 ) A positive reputation can help companies weather crises more effective (Argenti, p. 91)…

    • 857 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Coke and Pepsi in India

    • 1554 Words
    • 7 Pages

    While Pepsico and Coca-Cola are both multinational corporations (MNCs) with extensive experience in international operations, their business dealings in India are not their most long held nor the least problematic. Pepsico has the most longevity in Indian operations having started there in 1988. This allowed Pepsico to establish a stronghold in the Indian market prior to Coca-Cola’s entry in 1993. Both of these MNCs experienced difficulty in establishing their companies, and while they have made some great headway they have also experienced some extreme business angst along the way.…

    • 1554 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Misuse of Ipads

    • 1734 Words
    • 7 Pages

    The Coca-Cola is one of the most popular and recognizable brands in the world. According to the social surveys, Americans associate “Coca-Cola” with the spirit of patriotism and as a reminder of a traditional American values and the lifestyle (Slater, 2000, p. 202). Coca-Cola being a brand with few decades’ history has a strong organizational culture and well-defined, structured mission and vision directions. On the of official webpage of the company it is said that…

    • 1734 Words
    • 7 Pages
    Good Essays
  • Good Essays

    When starting a business in a foreign country, the first priority a company should have is to learn the native culture. This was Coke and Pepsi’s biggest mistake and was most likely the reason why the Indian population responded so hostilely. Coke and Pepsi’s problems in India were complicated by the fact that water is sacred to the Indian people. Not only were the companies accused of polluting fresh water sources with toxic waste but they were also criticized for the amount of fresh water the bottling plants consumed. The Center for Science and Environment and India Resource Center special interest groups knew how to attack these MNCs. Even though India has some of the worst water in the world, these special interest groups got away with blaming Coke and Pepsi for the large amounts of pesticide found in the soda.…

    • 749 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Bsiness Strategy of Pepsico

    • 9198 Words
    • 37 Pages

    Pepsi is one of the most well-known brands in the world today available in over 160 countries. The company has an extremely positive outlook for India. This reflects that India holds a central position in Pepsi 's corporate strategy. India is a key market for Pepsi co, and at the same time the company has added value to Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus areas - Soft drink concentrate, snack foods and vegetable and food processing. Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Volta’s and Punjab Agro Industries. With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$…

    • 9198 Words
    • 37 Pages
    Powerful Essays
  • Powerful Essays

    The research study was conducted to learn the localization strategy of global beverage company Coca Cola in terms of two of its marketing mix variables, namely, the product portfolio on offer and the distribution process. In the process detailed information was collected on products launched, sales and distribution practices followed by the company, the working style of the retail outlets that stocked and retailed Coca Cola products, and to a limited extent the psyche of the consumers. In addition the study also uncovered initiatives taken up by the top level management and the strategies they laid out to enhance the company’s market share and sales turnover. This research was conducted with the help of questionnaires that tried to find the satisfaction levels of the retailers regarding the support they enjoyed in terms of the products and services offered by Hindustan Coca Cola company. In addition retailers were also queried on what more they expected from the company, and the response of consumers towards Coca Cola’s products.…

    • 7170 Words
    • 29 Pages
    Powerful Essays
  • Good Essays

    Ethical Issues

    • 1428 Words
    • 6 Pages

    In a separate development, sales of Coca-Cola have been hit by suggestions that its drinks produced in India contained higher levels of pesticide. (Unethical)…

    • 1428 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Cross Cultural Perspective

    • 1169 Words
    • 4 Pages

    The plant in Uttar Pradesh was opened in 1999 and the people were not happy about it from the beginning. Coca-Cola started proceedings to expand the water table for consumption which ultimately…

    • 1169 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Despite love for ones own maternity and ancient construct of Indian folks it had been assumed that it's terribly onerous to form and build style and preference concerning soft drinks however despite of getting numerous confusion, nobody was ready to assume such a large acceptance and it had been PepsiCo. UN agency can be ready to penetrate in Indian soil and it had been the Pepsi Cola that has not solely an area in Indian welcome, however…

    • 934 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Coca Cola in India

    • 391 Words
    • 2 Pages

    Many cultural differences may have caused Coke’s difficulties in India. A major difficulty could have been communication. People from India express themselves in a totally different manner than Americans. For this simple reason, misunderstanding could have arisen. Another cultural difficulty could have been that India has many political and legal issues internally, which makes India less wholesome than the United States. These issues could have led to interference with Coke’s operations in that country. Also, both countries have different ways of doing business. The United States is ethnocentric; its investors are used to taking their rules and regulations over, which makes it difficult because they should adapt as every country has their own rules and regulations. If a polycentric approach was used by U.S., the consumers in India will react to it considering those practices are wrong and inappropriate. This could also have been the reason for India’s interference in stopping Coke’s operations due to the villagers’ accusation of the water shortage and contamination caused by Coca-Cola.…

    • 391 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Case Study of Coca-Cola

    • 3779 Words
    • 16 Pages

    Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The main objective of my training was to Design and implement the plan to increase numeric distribution and the RED(Right Execution Daily) Standards of the given territory. I am fortunate enough to get this kind of direct and performance based project objective for my summer training. I worked hard with my heart and soul to improve the scenario in my territory. First I have listed out problems in our territory and keeping the problems in my mind I gave my recommendation which I discussed with my sales executive for implementation. As a matter of learning I have been able to learn lots of intricacies in sales and distribution of beverage major Coca-Cola. I have also given…

    • 3779 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Coke pesticide crisis

    • 3452 Words
    • 14 Pages

    Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than revealing its formula to the government and reduce its equity stake as required under the Foreign Exchange Regulation Act (FERA)…

    • 3452 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    International Case Study

    • 745 Words
    • 3 Pages

    Cited: Admin. Cultural Impact on Business: A Case Study on Coca Cola’s Cultural Issues in India. 20 August 2012. Text. 10 September 2013.…

    • 745 Words
    • 3 Pages
    Good Essays