Coca-Cola International Business

Coca Cola International Business

Coca Cola International Business

Background

International business is more complex in managing and conducting as compare to domestic business. International business varies from domestic business in various ways which can be either difference in culture among both nations, deviations in business practices, varying political systems, customer heterogeneity around markets, mobility of raw maters and factor of production is low, varying currency differences are the main concern which differentiate international businesses from domestic business (Anonyms, 2010). These factors are regarded to be crucial and which makes international businesses highly complex and a difficult task.

Cultural difference is one of the major aspect which differentiate international business from domestic business which will not only makes business cost of running in global arena expensive but it will also results into business failure. Initiating up a business requires complete understanding of other hosting countries cultural practices in order to gain maximum market shares from it. Starting a business in international arena is not an easy task; it requires assessing several factors. In most cases, a businessman focused on technical aspects of business, whereas, cultural aspects are being ignored. A good business plan should kept into consideration of cultural difference and people or country should be engaged in prosper of business. In case, domestic countries people are not willing to work with their business it will give rise to varying cultural differences. An entrepreneur is required to be well aware of intercultural communication differences in order to address it correctly with potential buyers and suppliers and foster relations that are essential for any business (Anonyms, 2010).

Real-world International business chosen on order to highlight cultural differences issues in hosting countries is of “Coca Cola Company socio-cultural issues in India”. This paper will explain in detail varying cultural differences and other issues which Coca Cola faced while expanding its business in India and it will suggest proposed solution that can be taken in our views.

Introduction

Coca-Cola is regarded to be amongst world's largest soft drink provider company which made its strong presence in the globe since 1986. Coca-Cola is considered to be the first international brand of soft drink to march in the Indian Territory in the early 1970's (The Coca-Cola Company, 2006-2010). Initially, with few years of operation till 1977, it was leading brand in India afterwards due to (Foreign Exchange Regulation Act) makes them to left India. It did not returned back till 1993. It is leading beverage company at India with an unmatched portfolio of beverages which includes several leading beverages such as:

Coca-Cola

Sprite

Fanta

Limca

Fanta Apple

Maaza

Burn

Minute Maid

Nestea

Thums Up

Fanta Fun Taste

Kinley tea coffee

Georgia range of tea coffee

Coca Cola Company, which has old setup within India, provides direct and indirect employment to around approximately more than 1, 50,000 people. Te Coca Cola Company has coverage of India with around more than 1 million retailers and it proves to be having greater effects on employment and earning opportunities. It is regarded to be largest domestic buyer of sugar and top buyers of mango pulp in ...