Introduction
To give a short introduction to the circumstances affecting this case of Pepsi & Coca Cola it has to be said that in general it is not just simple for MNEs to invest and enter foreign markets as regulations and restrictions differ from coutry to country and hence ifluence international business negotiations to a great extend. Therefore MNEs investigating in foreign markets have to either adopt 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 want to loose their maximum independence- or the MNE decides not to take further steps towards the foreign operation and leaves the feeld by assumingly ? in turn ? missing out a great opportunity, but this again depends on a complexity of economic and cultural reasons influencing international trade, which I will develop critically in the further case study of Pepsi & Coke in accordance to the following questions.
1.) Did PepsiCo make too many concessions 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 after harsh disagreements with the government.
Why after all did Pepsi enter again, facing a country with such strongly adverse feelings towards foreign companies ? which is rooted in Indians history of colonialistic times when the British, French and Portuguese were extracting the country?s recources ??its wealth? without returning noticeable benefits to its economy.
Moreover they feared that national companie ...