Coca-Cola entering a new market :: essays research papers

IntroductionTo give a short introduction to the circumstances bear upon this grimace of Pepsi & Coca Cola it has to be said that in ecumenic it is not just simple for MNEs to invest and pull in foreign markets as regulations and restrictions differ from c turn outry to country and hence ifluence intertheme business negotiations to a corking extend. Therefore MNEs investigating in foreign markets have to either pull in to those condition given by the host country government, which of course to a certain extend has to be negotiated as no one of those parties desire to loose their maximum independence- or the MNE decides not to let in further stairs towards the foreign operation and leaves the feeld by assumingly in turn missing out a peachy opportunity, scarcely this again depends on a complexness of economic and cultural reasons influencing international trade, which I will develop critically in the further case study of Pepsi & Coke in uniformity to the following questi ons.1.)Did PepsiCo make too many surrenders in order to enter the Indian market?Could the company have negotiated better?In this case study PepsiCo for the second time intends to enter the Indian market, though already having experienced major problems which consequently led to their first departure (for non profitability). As well Coca Cola departured India later harsh disagreements with the government. Why after all did Pepsi enter again, facing a country with such potently adverse feelings towards foreign companies which is rooted in Indians history of colonialistic times when the British, french and Portuguese were extracting the countrys recources its wealth without returning noticeable benefits to its economy. barely they feared that national companies would not be able to compete with foreign investors and as a result of this high artificially prices and profit margins reduced incentives for national companies to enter. This almost irrepairable bad approach towards for eigner went even that far that diarist widely reported that PepsiCo had a CIA connection aimed at undermining Indias independence. barely returning to the argument of PepsiCo having too many concessions or not, first as should have become clear now, the company was confronted with a govvernmental volatility and unwillingness to negotiate. It was rather a one-way game wherein PepsiCo had to agree with completely, or take its departure, as the company was not only faced with economic but also with moral issues (as mentioned above). Especially the confidence factor plays a great part in her which for the company turned out to be a rather costly factor as PepsiCo had to make various concession before they could enter the Indian market.