You
are given 2 example student responses to the topic below. Each student response
is to have an independent response; DO NOT COMBINE THE RESPONSES OR COMMENT ON
ONE STUDENT RESPONSE IN ANOTHER STUDENT RESPONSE. Read the topic the students
responses are based on. Reply to each individual student per the directions
that follow the topic.
Pepsi Co and Coke American
beverage giants, must adhere to the U.S Foreign Corruption Act wherever their
businesses may take them. Both companies expanded their U.S businesses to India
with differing initial results. Coke came home (initially) and Pepsi Co
prospered.
Students were asked to
research and explain the socio-cultural barriers faced by Pepsi Co and Coke
American beverage giants.
The
response you are to give to each of the 2 students will include a minimum of
three paragraphs that cover the following:
· What in your view were the reasons the student gave
which negatively impacted Coke and positively touched Pepsi Co?
· Choose a third international company in a different
country and discuss as a comparative to the student’s work on socio-cultural
barriers faced by Pepsi Co and Coke American beverage giants.
· Do you feel that cultural training is an essential
pre-requisite for expatriates in any host country?
· Why/Why not?
Remember to use APA
referencing and citations in the body of your posting.
———————————————————————————————————————————————–
STUDENT
RESPONSE 1
Explain the socio-cultural
barriers faced by Coke and Pepsi Co. What in your view were the reasons which
negatively impacted Coke and positively touched Pepsi Co?
Coke first entered India in
1950 and grew until 1977 when the company along with other multinational
companies closed due to the government seizing corporate assets. Coke returned
back to India in 1993 after the laws were loosened but the company struggled
with their marketing strategies.
The reasons I feel Coke was
negatively impacted by socio-cultural barriers were:
· India’s government seizing corporate assets
· Coke not taking the time to fully understand
India’s culture
· Coke not embracing small family operated stores /
and local markets
·
·
India is one of PepsiCo’s
largest global markets. PepsiCo is planning on investing 5.5 billion dollars in
India by 2020. The reason PepsiCo was positively impacted by socio-cultural
barriers were:
· PepsiCo Indian first CEO Ramesh Vangel was very
persistent, innovative and took risk
· PepsiCo entered India’s market thru food processing
turning its focus on another opportunity for the company to gain more capital
· PepsiCo had a better understanding of India’s culture
than Coke
· PepsiCo has taken the time to understand the locals
taste
·
·
References
· Coca-Cola In India: Understanding Culture To Do
Business.(2013). Value Work. Retrieved fromhttp://www.valuewalk.com/2013/12/coca-cola-in-india/
· Das Gupta.S (2014). How India Became Pepsi’s Right
Choice. Business Standard. Retrieved fromhttp://www.business-standard.com/article/companies/how-india-became-pepsi-s-right-choice-114032701308_1.html
· PepsiCo India: A High- Priority Market for PepsiCo.
(2013). PepsiCo Live. Retrieved fromhttp://www.pepsico.com/live/story/pepsico-india-a-high-priority-market-for-pepsico111820131227
STUDENT
REPONSE 2
There were
many socio-cultural barriers faced by Coke Cola & Pepsi. The Indian
government banned Coke Cola & Pepsi Co products. Coke Cola stocks dropped
by $5 dollars in the New York Stock Exchange within a few days after reports
& allegations were released by the Center for Science &
Environmental (CSE) & Non- Governmental Organizations (NGOs) of India.
Social groups who have high trust & integrity from the Indian
population. The reports that was released shows, pesticide residue in
20-30 of Coke Cola & Pepsi Co products which causes cancer and birth
defects in people. Coke cola is the world most valuable brand whose value
is greatly influenced by the image of the company and its products. Which
result in the company primary problem rebuilding their image to Indian
population & regaining Indian consumers.
My view on the negative
effects to Coke Cola, were instead of a fast impulsive respond to the
accusations. Coke Cola should have not attacked the CSE & NOG’s
immediately, it would have been much more beneficial to work with them. Which
will prove to the Indian people diligence & unity amongst the two.
Seek a non bias third party investigation that shows who was wrong or
right regarding the pesticide residue findings. This positively touched
Pepsi Co because they launched their own investigation while Coke Cola publicly
attacked the CSE & NOGs. Pepsi Co approach was more tactful and
transparent.
Reference:
Alecia, S. (1993). The New
York Times– Viewpoints; Don’t Sell Thick Diapers In Tokyo Lost.
Advertising
Age. Retrieved from:
http://www.nytimes.com/1993/10/03/business/viewpoints-don-t-sell-thick-diapers-in-
