Cultural Impact on Business: A Case Study on Coca Cola’s Cultural Issues in India admin August 20‚ 2012 Blog No comments Socio Cultural barriers faced by coca cola in India Coca – cola‚ the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later‚ due to FERA (Foreign Exchange Regulation
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the challenges faced by Coca cola in India. More details have been added from various sources to provide a more detail picture outlining the plight of Coke in India. Coke has suffered the below difficulties when operating in India. Reports of Center for Science and Environment (CSE) release in 2003 and 2006 claiming its drink contained unsafe level of pesticide. CSE tested the soft drink under European Economic Commission (EEC) standards and find out samples sold in India contained pesticides 30
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The political environment in India proved to be very problematic for both PepsiCo and Coca-Cola when they entered the market. The government has long enforced a protectionist stance on its economy in order to safeguard the interests of its people. Even with the New Industrial Policy in 1991 (Pathak 2007)‚ that loosened the grip on foreign businesses entering the country‚ PepsiCo and Coca-Cola still had to jump through many hurdles before they could operate. For example‚ PepsiCo was limited to selling
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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
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Coca-Cola in India 1. What aspects of U.S. and Indian culture may have been a cause of Coke’s difficulties in India? There are four areas that of culture differences may cause the Coke’s difficulties in India. First of all‚ is the spoken and written language. During the contact with the India government‚ there might comes out some misunderstood with language express. Secondly is the service and empowerment. Asian culture is more conservative and the U.S. pays more attention on empowerment
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The code of ethics of Coca-cola is systematic but it doesn’t apply to all countries fairly. They set up their own plants in developing country like India and brazil and they alleged the benefits of the production bring by Coca-Cola but ignore the issue behind which is the water wastage problem. Coca-Cola bottling operations have drastically reduced availability of water for irrigation purposes in countries like India and brazil. Even in the code of ethics of Coca-Cola has pointed out that helping
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Undergraduate Program Coca Cola CASE STUDY Submitted by: Cecilia BUISSON Winter 2014 INSTRUCTOR Momtchil Kovatchev COCA COLA CASE STUDY 1.What are the pricing strategies adopted by Coca Cola brand in the three key markets of India‚ China and USA? (15 points) 2.Should they have done anything differently? In which market and why? (5 points) 3.Was the price decrease the right move in India? Why? What were the consequences for both companies? (5 points) 1) Coca Cola is one of the three
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Table of Contents Executive Summary 4 FMCG Sector in India 5 Beverage industry in India 6 Right Execution Daily (RED) 8 Distribution 9 Distribution Routes 12 Distribution System 13 Competitors 13 Why RED Standards is used? 15 Problems in the territory 15 MD Problems 16 Action Plan to improve the scenario 17 Recommendations 17 Numeric Distribution 19 Conclusion 22 References 22 Executive Summary Coca-Cola‚ the product that has given the world its best-known taste
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1. What are the key problems that Gupta should focus on in the short term and in the long term? In the short term‚ Sanjiv Gupta‚ CEO Coke India‚ has to focus on improving the tarnished image of Coke owing to CSE’s recent findings. He needs to win back customer confidence in Coke’s products and should work on controlling the declining sales of the company In the long term‚ Gupta needs to ensure the basic safety standards are always being met by the company so the event does not occur again. He also
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Case Study – Coke in India Adapted by Lesley Fleischman from: Hills‚ Jonathan and Welford‚ Richard. Corporate Social Responsibility and Environmental Management. 12‚ 168–177 (2005) August 2003 • • • • • October 2003 • • Coke has 44 wholly owned and franchise owned bottling plants in India Indian NGO finds that Coke and Pepsi products bottled in India contain pesticides. Immediate impact on Coke stock price. Coke threatened legal action over allegations. Indian government
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