1. What aspects of U.S. culture and of Indian culture may have been causes of Coke’s difficulties in India?
Firstly, looking at the case and after doing much research, it seems that the aspect that could have caused Coke’s difficulties in India was communication. There might have been some miscommunication in the spoken and written language considering the Indians and U.S. have different ways of expressing their language commands.
Secondly, India has many political and legal issues internally; the laws in India are not as wholesome in U.S. This may have been the reason causing problems for Coke’s operations in India. Thirdly, both countries may have different ways of doing businesses. This is where foreign investors need to take note about bringing their rules and regulations over to India (ethnocentric). Foreign investors should consider the fact that every culture is different and they need their own practices (polycentric). If a polycentric approach was used by U.S., the consumers in India will react to it considering those practices are wrong and inappropriate. This could also have been the reason for India’s interference in stopping Coke’s operations due to the villagers’ accusation of the water shortage and contamination caused by Coca-Cola.
Lastly, every country is made up of different a culture, set of values, philosophy and background. Where India is concerned, the Asian market is known to be more conservative. India, a developing country which is still striving in poverty is very much traditional in their thinking as compared to the U.S which pays more attention to empowerment issues and service. Hence, this could also have been one of the aspects leading to the difficulties of Coke’s survival in India.
2. How might Coca-Cola have responded differently when this situation first occurred, especially in terms of reacting to negative perceptions among Indians of Coke and other MNCs?
The political environment in India proved to be very...