Pepsi's Entry into India: A Lesson in Globalization

Insights:

Pepsi Co. gained entrance to India through a clever marketing

strategy, they first learned from the mistakes of their fiercest
competition Coca Cola Co. and their initial venture; they tailored
their proposal to suit the cultural and political environment of the
country. They used the countrys own plans for development and
progress, to sugar-coat their business proposal to the government.
Then, they offered the government attractive promises that on the
surface were beneficial for the greater number of people which was
difficult to resist. They also masked their primary objective that of
exporting cola concentrate in a number of ways which would not be
obvious to observers and critics. They also kept some of their promises
which was strategically chosen to be the most visible and observable,
it was also designed to increase their popularity to the country,
although some of their promises too longer to materialize, it was
argued that projects like those needed more funds and research which
actually is logical. Their branding also corresponded to Indias
requirement that no foreign brands should be used to market the soft
drinks, but this cleverly was also tailored to boost their image since
the name Pepsi was more prominent. In the following years, Pepsi
maximized the liberalization of the economy of the country and instead
of forming partnerships with local businesses as they did at the
onset; they took full control of the shares.

Pepsi employed the right approach when they took careful notice of
the political and cultural scenario in India, they offered India a
proposal that was difficult to resist by feeding the government with
their own advocacy. Then they kept up appearances to indicate that
they kept their end of the proposal which was although not in the same
way they promised to do but it did somehow compensate for their lack
of keeping their promises. They also made an alliance with the local
companies which helped in assuring the government and the public that
they were being true to their proposals. Pepsi however committed
errors when they padded their statistics and numbers to mislead the
public, they also did not respond to their critics arguments which
in turn led to a ministry of commerce investigation; they also were
not able to create jobs for the number of people they promised. Lastly,
the exporting of agricultural produce also included items that were
already being exported and was not part of the original agreement.
The major hurdle that Pepsi faced in their move to enter India was
the political climate of the country as well as the regulated economy
which was largely controlled by the government and dominant political
parties. The company in its agricultural venture also had difficulty
in convincing farmers to see their technology and to work for them as
subcontractors.

Pepsi should renew its commitment to develop the agricultural sector

of the country and provide a nationwide campaign for their products
and the things they are doing for the country. With market
liberalization, many global brands have now entered India and they
must compete with the promotional strategies and product enhancement
for the Pepsi brand. Moreover, the company has begun diversifying its

1
food products and it has now become a major player in India but it
should not be complacent because if they concentrate on using India
as the grower of their raw products for their food products then they
should give more in return to the country in terms of socially relevant
projects, charities and educational foundations that would improve
the agricultural sector and the food sector as well as developing
environmentally sensitive factories and packaging.

Managing cross-cultural conflict in organizations

Insights:
The article is good. The article Managing Cross-Cultural Conflict
in Organizations aims at providing a forum to examine how cross-
cultural conflict and its management in organizations can be viewed
from different perspectives. It also aims at advancing
international, interdisciplinary cross-cultural conflict-management
research. Furthermore, it is the intention of this issue to
contribute to the body of knowledge in interdisciplinary research,
and to facilitate scientific dialogue on managing cross-cultural
conflict in organizational contexts, by exploring particular
disciplinary perspectives on managing cross-cultural organizational
conflict, and exchanging ideas, viewpoints and research findings
from different cross-cultural perspectives and scholarly
backgrounds.
Upon reading the article, it really achieved its aim, there are
several studies mentioned and it really creates a questioning mind
to its readers specially on the topic of cross-cultural conflict in
the organization. In relation to international business environment
and globalization, - articles mentioned can aid in answering several
questions of managers on how there are going to address conflict in
their international business relations. There are various articles
mentioned than can address issues commonly faced by globalized
industries such issues include but not limited to; cultural conflict
in the organization, policies can be used to resolved these cultural
conflicts, human resource issues, etc.

Issues Paper On Cross-Border Competition Issues in The Context of

the Doha Agenda
Insights:
Trade Laws and regulations are made for both the protection and
benefit of the consumers and suppliers. The articles focused on the
certain cross-border competition concerns of developing countries
and how this concern can be addressed at a multilateral level in the
WTO having regard to paragraph 25 of the Doha Declaration. In the
context on globalization and international trade, developing
countries would be susceptible to different competitions brought
about by foreign investors, this post a challenge to the countries
government. For example, our country Philippines is a developing
country, but our government see to it that local business are being

2
protected by law against the competition of foreign investor. The
imposition of excises taxes on importation of goods is one move of
the government to protect local business.
In the line with the article and international trade, I think cross
boarder competition cannot be eliminated, it will always be present
once a certain country engages international trade, so the challenge
is up to the countrys government to protect its local investors as
well as not to destroy the relations towards its foreign investors.

Case: BATA, LTD.

1. Developing country might allow Bata,Ltd to operate locally

because the company can bring:
a. Additional jobs since the company uses local labourers and
materials for its production
b. Creations of jobs increases customers purchasing power thus
the country GDP will increase
c. Using of locally produced raw materials means added value to
the countrys income.
2. Riskiness of Export according to Bata; if country would
restrict importing they could lose market opportunity and
market share. In this context, Batas concept of export help
developing countries gauge the potential consequences and
outcomes of their actions towards foreign investors. It could
aid the developing country to creating a law that not only
benefit foreign investor but also protect local investors.
3. Bata Ltd.s operations would be less susceptible to serious
political influence compared with other companies. Maybe
because of Batas policy to operate in a democratic
environment. The company existing policy caters both a
democratic and totalitarian regime, a democracy holds the
potential to discuss and change procedures, whereas under
totalitarianism it is sometimes wise to remain silent.
Adapting these line of thinking, the business operates in ales
hostile environment away from political issues
4. Problems that Bata, Ltd. Might encounter in starting up its
operations in Czech and Slovak Republic would be:
a. Government intervention on its operation
b. Possible transfer of ownership of the company to the
government including its all its Assets.
c. The company might be profitable.
Batas best remedy is before starting up again any the
companys operation, the company should make a well-crafted
dialogue and finalize the contract with the government. This
move can bring both a protection as well as keeping the
relationship between Bata Ltd and the Czech and Slovak
Government.

3
Globalization: The Example of Dubai
1. Dubai is situated on the Persian Gulf coast of the United
Arab Emirates (UAE). Its neighbouring countries include
Saudi Arabia and Iran. It contains on a relatively small oil
reserves. The area of Dubai is 3,885 sq. km. and has only 72
km. of shoreline along the Persian Gulf
2. Important facts that have Dubai became successful
Only one family ruled Dubai. The rulers and their
advisors have skilfully plotted the course that led to
Dubais role as a globalized centre of business and
tourism
Majority of the population is made up of expropriates
Tiger Woods played golf in Dubai for a 1 Million
Dollar appearance fee. As a result, Dubai received a
massive amount of worldwide media exposure
Dubai International Airport has become the main hub
for travel between many destinations in Europe, Africa
and Asia
Dubai focused on providing and creating a successful
tourism-based economy
Dubai is investing billions of dollars to become the
business centre of Arab world and a major player in
world commerce.
3. The tourism based economy helped Dubai improve its current
economy, by creating significant attraction where people
could visit and an effective and attractive infrastructure
in these places for people to visit.
4. The move toward globalization can be very controversial. In
the business world the success of Dubai was echoing. In less
than 40 years Dubai transformed itself from a sleepy port
city to a major global business and tourism centre. Dubai
was treated as a bench mark for countries who want to become
globalize in the world.
5. Tolerance played an important role in Dubais success.
Dubais leaders decided to take advantage of the spread of
globalization to allow the Emirate to become prosperous. The
step of Dubai toward globalization was bombarded by both
positive and negative reactions in the international
business. Without tolerance employed by Dubais rulers and
advisors, they would have not reach their spot today.
6. Dubais building a new land in the Persian Gulf, affected
Dubais development through:
Promoting a place in which to live, do business,
invest and visit. As well as private estates and
commercial resorts can be built
Building this new land can boast Dubais tourism and
increase its development and progress
7. Reactions against the globalization of Dubai was a bit
controversial. The business world within Dubai raised a
concerned about bringing the moral laxity of the western

4
 world into what had initially been a conservative Islamic
Society.
8. Globalization can be responsible for helping increase wealth
to all people. Being globalized does not mean one country
need to imitate or adopt a globalized countrys cultures,
norms and traditions, thus totally forgetting their own. The
use of globalization must to for betterment not for
destroying one culture and adopting another. Through
globalization one country can improve, adopt and customize
the best practices, laws and policies of a globalized
country in order to best suit their countries development.
Bottom line globalization should be leading to increase and
improvement of one countrys wealth, development and
progress.