Pepsi Entry into india A lesson In globilization Case Study

Pepsi Entry into india A lesson In globilization - Case memorise ExampleHaunting ch whollyenges in the political, public, economic and social front where there in store aplenty for Pepsi, notwithstanding the paramount task was to appease the politicians, i.e., the government first, which would automatically reduce the burden in all new(prenominal) front to a great extent. Peter Druker had long back said about the future human beings that reciprocity will be the central principle of international economic integration. Thus Pepsi knew that for it to enter India, it has to remunerate by some deeds that would facilitate theThe promises that Pepsi made to deliver if it were allowed entranceway to Indian Market was aplenty. A few noteworthy ones are focussing on food and agro processing generating job opportunities for the people of Punjab, boosting the ambit of Indian products in foreign markets, etc. Given all these promises, If a question is asked whether the company materialized all that, the answer would be no. It did make an attempt to bring about a green mutation in the state of Punjab there was a drastic increase in the production of tomatoes, farmers were given exhaust farming equipments and agro based research centres were opened in Karnataka and Punjab. Corporate Social Responsibility is an often comprehend word now, but the colossal part that it plays is corroborated by Pepsis intro into India. It was only through its social perks that it got access to the Indian Market.The cat was out of the bag in 1991, around two years after Pepsis entry into India that it was conspicuous that Pepsi failed in most of its obligations. This was a double whammy for the same George Fernandez who blasted the Rajiv Gandhi run politics at the parliament. His accusations where that, pepsi was indulging in under invoicing and by consecutively preparing bogus receipts and hiding proceeding to a great extent. That is a incompatible case in itself. A foreign company s hould be polycentric- meaning, it should consider that each and every host country where they set there shop has got a different set of culture and habits and especially problems with which they wouldnt be in a position to appreciate any campaign by a foreign company. Thus Pepsi was aware of it and Knew that winning public opinion is the only settlement for there entry and especially the farmers of Punjab.There motto was performance with purpose which did sell well among the people of India and the politicians. to a lower place this tagline, apart from engaging the farmers pepsi did quiet a number of social activities like replenishing waste water, waste to wealthiness initiative, collaboration with farmers through contract farming etc. This only tells that for a multinational company to look a new customer base, it has to deal with ordinary people of the host country first who may not be their customers in the first place. But still their good will is always required for the company to survive.