BUSI 3130 CROSS-CULTURAL MANAGEMENT
Cultures are the beliefs, values and attitude that are carried in an individual which reflects their behaviour and affects the growth of the company. The report will explain the effects of culture it had on Coca cola for the development of its products in different countries.
This makes the organisation to develop its products and formulate its strategies as per the culture of people carried in different countries. The aspects of different culture and perception of people had on the Coca cola will be provided in the report which is rectified with the development for various programs by the Caca cola.
Moreover, the measures that have been taken up by the Coca cola for meeting with the challenges and difficulties will be provided in the report with their commitments. Lastly, the commitments that have been made by PepsiCo and Coca cola will also be taken into consideration for satisfying the customers and developing its stake in the market.
- What aspects of U.S. culture and of Indian culture may have been caused by Coke’s difficulties in India?
The culture of every place is different from one another as it relies upon the belief, values and perception of one person which makes him different from one another. The difference in culture makes the companies develop their products and services as per the assessment of culture and behaviour of the people. This is required for making the products and services to be preferred by the people and making the organisation to have its stake in the market.
The growth of the Coke is made with the development of its products and services as per the requirement of the customers and meeting with the difficulties that took over with it in US and India due to the difference in culture and perspective (Cotterrell, 2017).The changes that took over in the culture of India and the US affect Coke and its growth in the countries.
Culture of U.S
The culture of the US is different as compared to othercountries as this makes it focus on having the products and services which do not pollute the environment. The preferences of the customers are also different which makes the Coca-cola have production and packaging of products accordingly.
The major difficulty it faced with the water supply due to control over the supply system of water in the country. The packaging of the bottles also made the company face difficulties in packaging and storing of its stock. The changes that took over in the lifestyle of the people, population and attitude of the people affect the growth of the organisation.
This also ensures that the organisation needs to use the new technologies so that the production of products and services could be made as per the requirement and do not harm the environment (Feng, et. al., 2015). This will relate to the improvement in the products of the company and provide utmost satisfaction to the people.
Culture of India
The culture of India is different due to different types of religion exist in it which carries different perspective and knowledge regarding the products and services that have been offered to them. This has made coke to face difficulties for understanding its culture so that it could make the production of products and services in the market.
The confrontation of the government was the major problem that has been faced by Coke for the production of its products in the market. Moreover, the restrictions that have been imposed on the launching of products and bottling practices as the as per the concern of the people in rural areas it is contaminating their drinking water.
The implications of the people have made the change the packaging system and lead to face with difficulties for the same. The contribution of India is only 1% but it affects at a high level on the growth of the company. The difference in the culture of the people in India made Coke to change its pricing policy, packaging and distribution system which was required to be managed in the organisation.
This made it face difficulties for its existence in the market and having growth opportunities (Cotterrell, 2017). This is to ensure that sustainability could take place and it would not affect the environment in an adverse manner.
- How might Coca-Cola have responded differently when this situation first occurred, especially in terms of responding to negative perceptions among Indian of Cole and other MNCs?
The negative perception of the people in India made the coca-cola to suffer from diminishing results in the company and reduced the number of customers. The perception of people regarding the company is negative as they presumed that the drink is made with the use of pesticides which affects the life of the people.
The usage of pesticides is high which affects the life of consumers, the usage of pesticides in the soft drinks made it face with pesticide issues. This has made the organisation to have cancellation of its licence in the Indian market for the production and sale of products.
The Pesticide polluted water in the areas which lead to the unhealthy condition of the consumers (Coulter & Robbins, 2010). Most of the people had an assumption that the establishment of coca cola is to bring the pesticide products into the light for the customers. The accusation has been made on Caca cola for the usage of pesticides that contrast in water.
In contrast to the this CEO of coca cola has made his decision and made the government not to test the products of the organisation as if water consist with pesticides than other soft drinks should have also consisted with them. The argument was not in favour of the organisation as a negative perception of the people was constant.
The allegations made to the coca cola were taken into consideration by it and made the development of programs and testing which proved that soft drinks are pesticides free. The allegation made for the use of high water was also reduced as the minimal water was used by the company for the development and manufacturing of the product.
Coca cola has also made and developed various initiatives for improving the drinking water that has been produced and provided to the consumers. The political intervention also made coca cola to face with difficulty as they assured that the firm is only for the sake of profits but do not give its focus on the health of the consumers.
This has made the organisation to have testing of its products so that evaluation of the pesticides consist in the product could be made to the people. This has helped the organisation to prove its points in terms of providing the best products and services. It has made the production of its products and services with the best quality material and less usage of water so that it could change the perception of the people.
Moreover, the wastage was also not produced in high quantity as compared to other MNCs so that water does not get contaminated. It has also launched 270 rainwater harvesting projects so that minimum use of groundwater could take place (Bellin, 2016). Coca cola has also made its partnership with various other projects which are meant for conserving the water.
This makes it conserve and save the groundwater so that it could be used further. All the measures are taken by the Coca cola to change the perception of people regarding the coca cola and the products it is produced. This is to ensure that the health of the consumer is taken into the property and no wastage of water takes place in the organization as the products and made environmental friendly for the customers.
The packaging of plastic has also been removed due to its ill effect on the health of animals and reduces pollution in the environment.
- If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make?
The stake in the market of India is essential for Coca cola as it contributes highly to the growth of the company and making it earn high profits. This can be attained by having motivating factors in the organisation for making them understand the culture of India. The following considerations could help in making Coca cola to have its stake in the market of India’s soft drinks-
Motivations across cultures– the difference in culture can make the organisation not to be supported by the other firms or companies in it. This makes the employees understand the culture of one another so that it could help in developing the products as per the needs of the customers.
The preferences of the customers in India is different which makes the Coca cola to have its changes in its practices so that production of those products could be made that is required for providing satisfaction to the customers. The balance between the demands and expectations needs to be exerted so that loss over the company would not arise.
The motivation provided to the employees will make them understand the culture of the people and enhance their performance (Chen, 2017). This help in having the variations in the output of the organisation.
Effective decision making– The decision making authority and power should be reliable in the organisation and managers to should use their power in order to assess and solve the problem easily. This will make the manager have planned in advance for solving the issues of problems that could arise with respect for difference in culture.
This will make the manager assess the changes that could take place in the customers or government so that it could adopt effective steps or decision for solving the same. This makes the manger to have identification of decision in advance so that an appropriate solution could be made with the involvement of employees.
This helps the organisation to have respective employees who understand the culture of India very well and can make it have effective production and take valid decisions in the organisation. The diagnosis of the problem could be easily made with the involvement of employees and changes made in the decision-making process of the manager.
Global organisational learning– The changes need to be made in the process of production and materials that have been used in the organisation. This requires an assessment of strategies that have been made by existing companies so that Coca-cola could make effective strategies by learning from competitive firms.
This is required for having its stake in the market. This makes the employees to be provided with training which could help in having communication with the people. The communication could help in meeting with the needs of the people easily and help in making the decisions in the organisation.
The communication power of employees needs to be enhanced in the coca cola so that they could understand the culture of other people (Ghosh, et. al., 2016). This will increase the productivity and sales of the organisation and make the customers get influenced by the products and services.
The above activities are required to be implemented in the Coca-cola for the execution of work and understanding of diverse culture in the organisation.This makes the marketing of products and services in an easy manner with the contribution of employees. The changes made in the attitude of the employees and make them understand the requirement of customers so that satisfaction could be provided.
This also makes the Coca-cola develop the culture which is easy to be assured by the customers. This makes the organisation have a large number of customers in the Indian market. The price of the products should also be kept minimal for meeting with the competition and leading to earning high value in the market. Training needs to be provided to the employees for the improvement in their communication skills, decision-making skills and leadership skills (Harcar and Kaynak, 2015).
This will make them adopt the changes easily for making them work as per the needs of the company and lead to easily adjust to the culture.
- 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?
The commitment is made to be provided to the customers by making thembe provided with the best quality of products and services in the market. This is required in Coca-Cola and PepsiCo for having a large number of customers in the organisation from different countries.
The customers in different countries have a diversified culture which needs to be understood so that satisfaction could be provided to society. This makes the Coca-Cola and PepsiCo develop several programs and practices which make the production of products with the management of sustainability at the global level (De Mooij, 2018).
The commitment of Coca-Cola and PepsiCo is to use the resources in an optimal manner so that it could provide satisfaction to the customers and do not pollute the environment.
Coca-Cola has taken initiative for the fulfilment of its commitment made for corporate social responsibility with the use of water resources in an effective manner. Coca-cola has made its expansion for the rainwater harvesting projects for managing the scarcity of water that took place in India.
The commitment is made for the effective usage of water so that it would not get depleted and make the environment to have sustainability in it. This ensures the conservation of freshwater resources which could be used for future assistance. This is to make the Coca-Cola and PepsiCo participate in the conservation of water resources and freshwater basins
.The focus is also on the packaging facility of the organisation for the conservation of resources and making it environment-friendly. This makes it enhanceglobal packaging by not using the plastic material for the packaging of products.
The commitment is to make the engagement of employees from all the areas so that they can assure that production of products and services could be made as per the requirement of customers.
This also makes them improve their communication so that understanding of each other culture could be made easily. This improves the services of the organisation and makes them provide with the best quality products and services. Coca-Cola and PepsiCo made their commitment for not using the plastic for the production of products in the market. This is to protect the environment and make the products which could be decomposed.
They had also made their commitment for the sale of soft drinks and developing a plan for the production of its products in 20 countries (Ghosh, et. al., 2016). This will make it develop its products which do not harm the environment and lead to the use of the resources in an optimal manner.
Coca-Cola and PepsiCo have also made its commitment to the employment of people in the organisation for the sale of its products and services. This is required for understanding the culture of different countries and led to have a deep understanding of culture.
The commitment made to society for the conservation of water resources and the natural environment can be exercised with the use of water in an effective manner for the beverage. This also makes it recycle the products for the purpose of manufacturing for the protection of the environment and replenishing the water in the communities.
The usage of quality material and water will be made for providing the people with the best products to ensure the safe and secure health of the consumers. This has also made it have its bond with the United Nations of having water access in the countries who are need of water (Bellin, 2016). It has also made its efforts for the renewal of water after the operations by returning it to the groundwater system.
The major aim that is taken up by Coca-Cola and PepsiCo is to ensure that each drop of water used in the beverage should be replaced. This is for the protection of the environment and using natural resources in an effective manner. This will help in restricting the use of freshwater resources in the organisation and lead to meet with the needs of society by maintaining corporate sustainability.
This makes the organisations grow at high scale and lead to satisfying the customers by adopting the culture. This makes Coca-Cola and PepsiCo make the production of its products and services at the global level in different countries. This makes them develop the system for the integration of services and make the effective use of technology for the production of products and services in the market.
From the above report, it is concluded that difference in the culture of different countries makes the Coca Cola suffer from a number of problems which needs to be resolved for having its stake. This makes the Coca Cola to develop the plans and programs for developing sustainability and managing with the environment of multiple countries.
The commitment made by Coca-Cola and PepsiCo has been explained in the above reports which are made for satisfying the customers. This enables the organisation to have its stake in the market and have large number of customers. Moreover, the changes are required to be made by the organisation for the development and growth of the organisation in the Indian market. The steps taken for changing the perspective of the customers and growing in Indian market has been evaluated in the above study.
This is required for meeting with global challenges and leading it to market its products in different countries.
- Bellin, H., 2016. Branding and marketing channel strategies: Some effects on channel partners. Journal of Marketing Channels, 23(4), pp.255-257.
- Chen, W., 2017, April. Research on Cross-cultural Management in Transnational Management of Enterprises. In 2017 International Conference on Innovations in Economic Management and Social Science (IEMSS 2017). Atlantis Press.
- Cotterrell, R., 2017. Law, culture and society: Legal ideas in the mirror of social theory. Routledge.
- Coulter & Robbins, 2010, Management, 10thed, New Jersey: Pearson.
- De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.
- Feng, Y.H., Gutiérrez-Salomón, A.L., Angulo, O., O’Mahony, M. and Wichchukit, S., 2015. Data from ‘words only’and ‘numbers only’9-point hedonic scales are not interchangeable for serial monadic as well as rank-rating protocols: Aspects of memory and culture. Food quality and preference, 41, pp.12-19.
- Ghosh, M., Ghosh, A. and Ghosh, M., 2016. Impact and Influence of Culture on Brands in Indian Market. IOSR Journal of Business and Management (IOSR-JBM), 18(7), pp.54-60.
- Harcar, T. and Kaynak, E., 2015. The Impact of Country-of-Origin and Ethnocentrism: An Experimental Study of Consumer Taste Preferences for Soft Drinks at Cross-cultural Level. EDITORIAL 81 ErdenerKaynak ARTICLES The Synergy in Green Persuasion, Green Celebrity Endorsers in Green Advertising: A Study of Brand-Endorser Congruence Effects in Green Advertising, 24, pp.120-131.