Coca-Cola is a multinational corporation that is considered to be one of the most profitable businesses in the entire world. As people live in a consumerist society and the age of globalization, various companies try to expand their marketing strategies in the territories of the world’s largest states to attract new clients. At the end of the twentieth century, the Coca-Cola transnational corporation was established in India and faced a plethora of issues regarding the local organizational and cultural standards.
What Aspects of U.S. Culture and of Indian Culture May Have Been Causes of Coke’s difficulties in India?
The first difficulty that the representatives of the Coca-Cola Company happened to face due to their campaign in the territory of India was caused by the concerns of the local government. The politicians from the Indian Ministry of Health requested the corporation’s managers and employees to disclose their products’ formulae and secret technologies that were used in the manufacturing process (Berglund and Helander 296). It would be proper to mention that the government of India did not welcome other businesses at that moment. However, the local politicians managed to detect that the soft drinks produced by Coca-Cola contained a tremendous amount of chemicals and pesticides. Therefore, the Minister of Health did want to allow the corporation’s expansion in the territory of India (Henrik 339). Moreover, different restrictions and fees were imposed on the Coca-Cola Company when regular citizens of the country faced the problem of water pollution caused by the factory’s manufacturing processes.
How Might Coca-Cola Have Responded Differently When This Situation First Occurred, Especially in Terms of Responding to Negative Perceptions Among Indians of Coke and other MNC?
The representatives of Coca-Cola in India should have considered responding to the requirements of the local government and residents quicker than they did in reality. It would be proper to ensure safety to the local consumers to gain more authority and respect among them (Chaklader and Gautam 101). Unfortunately, the company could not respond to the demanding needs of its customers due to several time-consuming laboratory tests and evaluations of their products’ main ingredients. Nevertheless, people of Indian culture think that a person or an organization that remains quiet for an extended period might be guilty of something and does not want to admit it (Karnani 13). Another inconsiderate mistake that many multinational corporations make in the Indian market regularly is that they try to defend themselves by putting particular blames on other manufacturers, instead of reconsidering their policies.
If Coca-Cola Wants to Obtain More of India’s Soft Drink Market, What Changes Does It Need to Make?
As India has certain problems in its economic system, it would be advantageous for the country to give jobs to its unemployed citizens. Coca-Cola should aim at providing career opportunities for the local inhabitants. Another step that the multinational corporation is recommended considering implies financial investments in the state’s cultural and national values (Mooij 35). Usually, people appreciate such deeds and thus trust a particular organization. Moreover, managers from Coca-Cola should address the problem of water pollution in India and build some filtering equipment to cause less harm to the environment. Unfortunately, many sources in India do not provide drinkable water. Therefore, this issue has to be eliminated with the help of different organizations that strive to occupy various markets in India. Also, it would be proper to learn the most important aspects of the local population’s culture to understand their primary needs and possible reactions to diverse marketing or business policies.
How Might Companies like Coca-Cola and PepsiCo Demonstrate Their Commitment to Working with Different Countries and Respecting the Cultural and Natural Environments of Those Societies?
As both Coca-Cola and PepsiCo companies were established in the United States of America, they should know that it is challenging to make a multicultural society pleased with every marketing and business decision. Therefore, it is essential to understand the primary needs and values of clients of different ethnic backgrounds by asking them to complete questionnaires or opinion polls (Spring 86). Feedback strategies let people from different countries unite and understand one another’s culture, which improves the quality of communication among the representatives of various states as well. In turn, the awareness of the local cultural aspects might be helpful for the future expansion of the companies mentioned above in particular locations. In conclusion, it is essential to learn and understand the national background of any country before communicating with its residents.
Conclusion
Coca-Cola is one of the most profitable businesses in the world as the company sells over a billion bottles of its drinks per day all over the world. When it first came to India, the country’s government was discouraged by the fact that some products of Coca-Cola contained pesticides. Despite the respect and authority that the company gained in other states, its business was not prospering in India due to the local population’s ethnic values that the corporation violated. Therefore, any business needs to understand diverse cultures and national qualities before going global as some people might be displeased with particular marketing policies or other actions of a certain company.
Works Cited
Berglund, Henrik, and Sofia Helander. “The Popular Struggle Against Coca-Cola in Plachimada, Kerala.” Journal of Developing Societies, vol. 31, no. 2, Jan. 2015, pp. 281–303., Web.
Berglund, Henrik. “Civil Society and Political Protest in India—The Case of Coca-Cola in Kerala.” India Review, vol. 16, no. 3, Mar. 2017, pp. 324–343., Web.
Chaklader, Barnali, and Neeran Gautam. “Efficient Water Management Through Public-Private Partnership Model: An Experiment in CSR by Coca-Cola India.” Vikalpa, vol. 38, no. 4, 2013, pp. 97–104., Web.
Karnani, Aneel G. “Corporate Social Responsibility Does Not Avert the Tragedy of the Commons — Case Study: Coca-Cola India.” Economics, Management, and Financial Markets, vol. 1, no. 3, 2014, pp. 11–23., Web.
Mooij, Marieke K. de. Global Marketing and Advertising: Understanding Cultural Paradoxes. Sage Publishing, 2014.
Spring, Joel. Globalization and Educational Rights: An Intercivilizational Analysis. Taylor and Francis, 2014.