Analyzing Cultural and Business Challenges in India for Coca-Cola

This report provides a comprehensive analysis of the international business environment, specifically focusing on the cultural challenges faced by multinational enterprises, using Coca-Cola's experience in India as a case study. It explores the impact of language barriers, religious diversity, and currency fluctuations on business operations. The report examines how cultural differences affect marketing, customer relations, and overall business strategy. It also delves into the economic and political landscapes, including the effects of rupee-dollar fluctuations and ethnic/religious conflicts. The report highlights the importance of adapting to local customs, understanding diverse cultural practices, and implementing strategies to overcome communication and operational hurdles. It concludes with recommendations for multinational enterprises to navigate these challenges and succeed in the Indian market by fostering mutual understanding, promoting cultural appreciation, and building strong relationships with local stakeholders. The report also discusses the importance of learning key phrases, providing cross-cultural training, and creating a supportive work environment.

Introduction
For a business to be successful, the environment should be conducive and favorable for either a
single business or a joint enterprise. Environment being the surrounding of a particular place, the
influence in which it has on the people and the activities they do in day to day life, or rather a
certain item of interest. Sometimes, one cannot have control over the environment and this
affects the activities whether its input or output. All one can do is adjust and try to fit in so as
undertake any business. Tebloyeva (2010). Challenges, on the other hand being one of the
common factors that affect business negatively yet it can be changed to positive can be turned
into opportunities that will affect businesses positively both locally and internationally in
different ways like socially, economically, politically and culturally Caprotti (2012). And if at all
it’s not then the concerned parties should try and fit in that environment so as to carry out their
daily activities and maximize at making profit at the end of the day Bovis (2012).
International business environment
Large Multinational enterprises with much equipped resources, enough capital and experience,
trending technology and trained workers that are always kept motivated and appreciated
therefore experts in customer services and marketing of their respective companies products are
venturing into business with emerging countries to sell market and partner with smaller
businesses. The coca cola company for example has its headquarters in United States of America
and has ventured into business with very many emerging countries one of them being India
Anuar (2015). This has surely been a success since their products have flooded the market and is
also very popular. However, cultural challenges have been a hindrance since the country has a
diversity of languages, and a very different way of leadership religion, but in business
challenges are to be welcomed and the best drowned from it. Journal of Business-to-Business
MarketingPart III:JBBMBook Reviews, (2009).. Not accepted meaning accepting failure, giving
up whenever something crops up since they will always be there Caranta (2013).
Involvement of nations to doing business internationally is helping its government stay in good
shape economically also the citizens will benefit both socially and economically through
improving their life standards and socially by sharing ideas with strangers being open minded
and innovative Tebloyeva (2010).. Seeing opportunities in challenges and using it to create

business opportunities and engage in the growth of the nation and the world at large by being an
exemplary example to other emerging countries, influencing them by the success that comes
from partnering up with the large international enterprise therefore attracting more nations to
engage in such business worldwide. Since two are better than one, the influential country will be
able to maintain peace and security within and beyond their borders therefore reducing insecurity
that is always a threat to doing business.
Internationalization is the process of increasing and ensuring that local markets and enterprises
are involved in international market Journal of Business-to-Business MarketingPart
III:JBBMBook Reviews, (2009).. This aims at improving human development by creating
employment opportunities therefore improving their life standard so they can be able to afford
both their primary and secondary needs and creating mutual understanding across nations which
helps to keep peace and giving a hand of help whenever any of the alliances need one, expanding
platforms for economic differences and similarities and establishing a common goal of
improving economic, social and political standards, increasing trends of employing foreign
citizens to work in firms bringing with them ideas as per their knowledge hence fostering
innovations. This encourages socialization, embrace of diversity by exchanging ideas, learning
new way of life of a people and promoting peace and understanding among individuals.
Cultural challenges facing multinational enterprises in India
Culture is a collective programming of a human mind that distinguishes people of one group
from the other for example their dressing code, food, way of worship, interaction, responses to
issues in life Bovis (2012). It has a great impact on business especially one that is emerging from
elsewhere. That they need to cope with a new environment they know nothing about. Language
barrier is one of the major challenges Tebloyeva (2010). India has extreme diversity in terms of
society, religion and language. The official language being Hindi, twenty two other languages
exists that are actually recognized by the constitution. Journal of Business-to-Business
MarketingPart III:JBBMBook Reviews, (2009). Though is also widely spoken and also is the
main business language, it would be a bit hard for a foreigner to understand such diverse
language but making an effort, one could actually learn from the basics to actually speaking the

language fluently depending with the duration of time they will be spending in that particular
country
Indians tend to have so many religious festivals where they come together to celebrate and
worship to give thanks to their gods. Attending such functions is important, celebrating together
and showing them that you at least appreciate their culture is one big step. It would not be an
offence to give them free drinks on such a day just to complement their day. This helps
marketing the product and attracting more people to like coca cola’ Also it promotes peace and a
sense of mutual understanding amongst them. They will always stay positive, speak positive and
act positive towards the company.
When disputed, Indians would prefer settling the conflict by involving the parties to their council
who will then decide the fate of the party found guilty or they would rather use the government
to settle their conflict. This will be important to be note so as to know how to deal with law
breakers within the business in case there are any. It shows respect, value of their way of
leadership and appreciation of it other than taking the law in ones hand, its only wise to let the
matter to be dealt with by the concerned authority instead.
In India, there is a different class of people ranging to the wealthiest to the less or not wealthy at
all. People tend to give respect to the wealthiest and even their way of handling things is
different. It is important to know those and keep in mind so as to differentiate between these two
classes lest the company is found in trouble. The people of class always have this mentality that
they can do anything since they have all the money in the world. This is false because as much as
money can buy most good things on earth that help one to live comfortably, money on the other
hand cannot by peace nor love nor true happiness nor inner satisfaction. It divides people rather
than bringing them together. It kills the spirit of brotherhood and togetherness.
India has many local languages put together while most of them can speak fluently in more than
just their mother tongue. They make a point clear by conversing in groups just their way of
approach and one may mistake them as talking secretively about them and plotting some God
knows what evil. Camillus (2011). It’s hard to communicate when both parties cannot
understand each other appropriately. The basic requirement for a successful business is

communication. The message first, sender, communication channel, receiver and then feedback
is given when the message was well encoded and decoded by the sender and the receiver
Caprotti (2012).
Currency challenges whereby the money to be exchanged with the Indian rupee is of high value
and when exchanged it loses value or too much of it will be required for business creating very
high exchange rates Tebloyeva (2010). A large initial capital is always requiring partnering up
with other enterprises “Community Law Requirements for Remedies in the Field of Procurement
Damages” (2010). The impact of rupee dollar fluctuation that has greatly depreciated creating
negative results for example in February, rupee had decreased and fallen to 68.510 for a dollar.
This weakens the economy a great deal making it hard to venture into business or taking a lot of
time to recover or it never does at all Bovis (2012). This may cause the price of products to be
increased like foodstuff, refineries, only for a few to be able to buy them instead of the large
number expected.
The United States central bank that deals with exchange rates plays a big role in such a situation.
When it raises or lowers the fed funds, it changes the exchange rates although indirectly. It also
has a great influence on business both within the country and outside. For example if it lowers
the rates, it reduces the supply of money and drives down the interest throughout U.S banking
and as a result, this makes the dollar much stronger compared to other currencies.
Ethnicity and religious India has more ethnic and religious groups than most countries in the
world. This includes the Muslims, Sikhs. The ethnic groups are always fighting against each
other because of both political and religious differences Caranta (2013). The war that seems
unstoppable has left many homeless, poor, full or partial orphans and all this has resulted to
decline in economic progress of the country. It has also lead to poverty since people lose their
properties whenever such conflicts emerge. A poor people or community slows down the growth
of a country and the world at large. They become dependent then over dependent on the
government that they don’t contribute to boost its economic status because of frequent
misunderstandings among them. They also cannot afford even the most of the basic needs for
themselves and their families Soloveičik & Šimanskis (2017).

Solution to cultural challenges in reference to partnering up of India with multinational
enterprise
Learning a few key phrases is a must in a diverse country like India with so many local
languages others that have been amalgamated to form a language fluently spoken by the very
majority "Re-examining procurement tenders with respect to price: a transaction cost model of
Portland procurement agencies" (2014). This is because clear communication is needed for
effective functioning and the day to day interaction with customers and clients. It is a
requirement that each employee understands the clients and customers’ needs "comparing public
procurement auctions" (2018). Although one may not learn the language at a go, depending on
the number of clients or customers one works with and also the amount of diversity, learning a
few greetings and key phrases can work in the meantime. This will encourage customers to
buying or getting services in that particular enterprise. On the other hand, if some employees are
dealing with clients of a specific culture, cross-cultural training will be ideal for them to be able
to communicate and understand their clients Anuar (2015). It’s ideal to give them books to read
in order to understand their clients for example the kiss, bow or shake hands’’ one of the books
that guides one to doing business in more than sixty countries.
Learning the clients culture by researching online for more information to easily discover the basics
of their culture or inquiring makes them feel comfortable Kramer (2017). Like what they like and
value let’s say their food, their customs and protocols, business practices and what they do for fun.
Because of such extra efforts, the people with whom you work with will feel appreciated, valued,
wanted and they will be encouraged to recommend you and eventually do business with the enterprise
now and the future "Sustainable Procurement: A Compliance Perspective of EU Public Procurement
Law" (2017).
Promoting an appreciation of cultural difference for example setting aside a special day where people
can come and share their cultural practices and be served with coca cola drinks alongside their meals.
They can wear their outfits sing their songs, chant, and celebrate together Voas (2015). This will not
only promote socialization but also but also give each person an opportunity to learn a different
culture and appreciate it. This will convince people to buy much of the products and when they tell
others about it, they actually promote marketing and making it popular among them Duranceau ( 201.

Be open also and try new things like when travelling to a new country, eat their food once in a while
though you may not like some things about them, making an effort will make them appreciate you a
great deal. Accommodate your employees, clients or co-workers needs in the schedule if they have
cultural requirements just as you would want someone to respect your culture and appreciate it. Keep
an open mind regardless of the business type and find a common ground for everyone to benefit while
they understand each other, embrace and respect cultural differences "Informal Economy: Case Study
of Street Vendors in Bangkok" ( 2016). If you don’t like something, it’s only wise to politely decline
since one does not have to compromise or change to fit in other peoples culture.
Understanding the Indian business culture which aims at building a good relationship and trust among
the parties involved and not only focusing on ideas and making profit since a good foundation has to
be laid to encourage a good business environment. It is advised to develop a personal relationship
with Indian managers for one to do business with them they express their pleasure with a smile or a
nod of the head Duranceau ( 2013). They are very much entrepreneurial and always on the lookout
for better opportunities. The new India business revolution has changed the country enabling global
business practices whose efforts had proven futile generations ago. Traditional values have prevailed
although many Indians are beginning to adapt western way of living. The Indians depend on groups
for decision making and way forwards and therefore they tend to respect and stay loyal to these
groups or society Tchoukaleyska (2014). The country welcomes all in warmth and at the end of the
day, diversity is one of Indians attractive qualities. This kind needs to be understood and being patient
is the way to go. Since decision making depends on a council or a group of selected individuals.
Inviting motivational speakers to forums sponsored by coca cola Company to talk and inspire people
on holding to the spirit of oneness and not to push away those with less resources or money. Not
giving their daughters away to be married to poor individual or allowing their sons to marry girls who
come from less fortunate family. Motivating and convincing those with class to embrace the less
fortunate and help them so as to promote peace and understanding and eradicate the different classes
of the haves and the have not’s. Even if it will take a while for them to come to a realization of
segregation of their fellow countrymen, it will be of their good since they would have been told in
advance. This prevents creating enmity in a county and equalizing humanity. It will also help
motivating others who have such behaviors to change for good.

Ethnic and religious challenges can be curbed by further decentralization of power so that a certain
jurisdiction will be able to access their own recourses they are entitled to and those that they process
"Eclipsing variables: Catalogue and classification" (2013). This will ensure that no conflicts emerge
concerning resources deprival hence people will be able to live peacefully amongst themselves hence
creating a good environment to conduct business therefore even boosting their economic statuses
since they can be employees in coca cola companies around hence improving their lives standards
instead of wasting time and recourses in conflicts that may never end. Also a modern liberal
education should be encouraged rather than the special education privileges for example schools for
Muslim students only. This will encourage appreciation of culture and religion to the young
generation who are the future leaders of tomorrow Avvakumova, Malkov & Kniazev (2013).
Currency exchange rates should be reduced so that the value of rupee should increase slightly and
gradually when they are either sold or bought or use a common currency in business so as to equalize
both countries. Journal of Business-to-Business MarketingPart III:JBBMBook Reviews, (2009).. The
U.S government treasury department that deals with currency for example should print more money
so as to increase the supply and in order to avoid weakening the dollar in turn; they should regulate
the money so as to print more when only it’s needed and not all the time. The law of demand and
supply explains it all because the less the demand the low the exchange rate and the high the demand
the more the exchange rate. To regulate this, the government does it indirectly by setting up arms like
the treasury department. Tebloyeva (2010).
Conclusion
Challenges that are accepted always turn into great opportunities for not only the concerned parties
but also people around them and the entire world at large "Promenade Among Words and Things:
The Gallery as Catalogue, the Catalogue as Gallery" (2015). Taking the example of cultural
challenges and behavior of a people of India that seems unconquerable, understanding them and
engaging in their activities wisely brings opportunity to market and sell products, socialize and learn
new things and it in turn leads to innovation that is either useful now or in the near future. Having a
positive mindset even where situation is difficult and complex is the way to be and a teamed up
country that engage in business is more likely to create a great impact globally. It will stand as a role

model to other countries and as a source of influence and admiration .Both their economic, social,
cultural and many more factors will be improved.
Coming together and sharing ideas that leads to inventions in technology that is actually taking the
place of man power is a great achievement that makes the earth a better place. Fostering peace which
eradicates poverty since people will have an ample time carrying out their duties is ideal for human
day to day activities Yong ( 2013). Building institutions like international universities where students
go for higher learning hence learning to appreciate diversity in culture, socialization and embracing
other people way of living, worship, food, dressing and festivals foster creativity and a spirit of
working together since the young generation of today is the leadership of tomorrow "Catalogue de
l'exposition / Exhibition Catalogue" (2015).
References
Anuar, F. (2015). To Determine the Procurement Performance on E-Procurement Technology
Usage and Procurement Practices on an Organization. SSRN Electronic Journal.
http://dx.doi.org/10.2139/ssrn.2698540

Avvakumova, E., Malkov, O., & Kniazev, A. (2013). Eclipsing variables: Catalogue and
classification. Astronomische Nachrichten, 334(8), 860-865.
http://dx.doi.org/10.1002/asna.201311942
Bocconcelli, R. (2017). No Business is an Island: Making Sense of the Interactive Business
World. Journal of Business-to-Business Marketing, 24(4), pp.311-314.
Bovis, C. (2012). Regulatory Trends in Public Procurement at the EU Level. European
Procurement & Public Private Partnership Law Review, 7(4), 221-227.
http://dx.doi.org/10.21552/epppl/2012/4/149
Camillus, J. (2011). Organisational identity and the business environment: the strategic
connection. International Journal of Business Environment, 4(4), p.306.
Caprotti, F. (2012). Environment, Business and the Firm. Geography Compass, 6(3), pp.163-174.
Caranta, R. (2013). Helping Public Procurement Go Green: The Role of International
Organisations. European Procurement & Public Private Partnership Law Review, 8(1), 49-54.
http://dx.doi.org/10.21552/epppl/2013/1/162
Catalogue de l'exposition / Exhibition Catalogue. (2015). Ti<, 4(1), 1.
http://dx.doi.org/10.26522/ti.v4i1.1158
Community Law Requirements for Remedies in the Field of Public Procurement: Damages.
(2010). European Procurement & Public Private Partnership Law Review, 5(1), 15.
http://dx.doi.org/10.21552/epppl/2010/1/92
COMPARING PUBLIC PROCUREMENT AUCTIONS. (2018). International Economic
Review. http://dx.doi.org/10.1111/iere.12274
Duranceau, E. (2013). Electronic Resource Management Systems, Part II: Offerings from Serial
Vendors and Serial Data Vendors. Against The Grain, 17(3). http://dx.doi.org/10.7771/2380-
176x.4903
Eclipsing variables: Catalogue and classification. (2013). Astronomische Nachrichten, 334(8),
860-865. http://dx.doi.org/10.1002/asna.201311942

Informal Economy: Case Study of Street Vendors in Bangkok. (2016). International Journal Of
Business And Administrative Studies, 2(2). http://dx.doi.org/10.20469/ijbas.2.10002-2
Journal of Business-to-Business MarketingPart III:JBBMBook Reviews. (2009). Journal of
Business-to-Business Marketing, 16(1-2), pp.161-191.
Kramer, G. (2017). ELECTRONIC PUBLIC PROCUREMENT AS A TOOL OF REFORM IN
SOUTH AFRICAN PUBLIC PROCUREMENT. African Public Procurement Law
Journal, 3(1). http://dx.doi.org/10.14803/3-1-16
Promenade Among Words and Things: The Gallery as Catalogue, the Catalogue as Gallery.
(2015). Architectural Histories, 3(1). http://dx.doi.org/10.5334/ah.da
Re-examining procurement tenders with respect to price: a transaction cost model of Portland
procurement agencies. (2014). International Journal Of Procurement Management, 7(5), 596.
http://dx.doi.org/10.1504/ijpm.2014.064621
Soloveičik, D., & Šimanskis, K. (2017). The Evolving Concept of ‘Conflict of Interests’ in the
EU Public Procurement Law. European Procurement & Public Private Partnership Law
Review, 12(2), 112-131. http://dx.doi.org/10.21552/epppl/2017/2/6
Sustainable Procurement: A Compliance Perspective of EU Public Procurement Law.
(2017). European Procurement & Public Private Partnership Law Review, 12(3), 239-252.
http://dx.doi.org/10.21552/epppl/2017/3/7
Taher, A., & Shafei, I. (2016). Understanding Catalogue Marketing Acceptance: The Case of
Safeer Catalogue. World Journal Of Management, 7(1), 1-16.
http://dx.doi.org/10.21102/wjm.2016.03.71.01
Tchoukaleyska, R. (2014). Illicit mint and unregulated vendors: constructing illegality in French
public spaces. Area, 47(1), 81-87. http://dx.doi.org/10.1111/area.12170
Tebloyeva, V. (2010). BUSINESS ENVIRONMENT FEATURES AND SMALL BUSINESS
PROBLEMS IN THE NORTH OSSETIA-ALANIA. Economy of Region, pp.192-196.ade.
Voas, J. (2015). Vetting Mobile App Vendors. Computer, 48(6), 69-71.
http://dx.doi.org/10.1109/mc.2015.165

Yong, Y. (2013). Catalogue of global gymnosperms: problems and perspectives. Biodiversity
Science, 20(6), 755-760. http://dx.doi.org/10.3724/sp.j.1003.2012.06005