CONTENT :
Topic Page
Analyze Russia at the time of the case, 1992, 1-2 (Using the PEST and Geography framework)
Analyze Pepsi as a company using only the information in the case 3-4
Recommendations for Pepsi to become successful in Russia 4-5
Answer the specific questions asked by Bill Shaddy in the last paragraph of the case 5-6
Pepsi challenge – Russia 1992
Pepsi is a soft drink produced and manufactured by
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Therefore, this is the one talent issue for Pepsi to make more market share.
Social factor;
The social style and culture affect on international business. One problem why Pepsi cannot rapidly grow in Russia is language and cultural barriers. The culture is traditional. There are not many people who have English knowledge. Moreover, confidential issue should be careful because everyone talks and share information to each other in their society. The other interesting point is that Russians are not get use to western style resulting to difficulty of working in western company. Russian system is flexible and no specific rule in some topics; for example businesses cannot get reference checks for their employments. Because of social factors, Russians are less interest in foreign business even though there are many western companies in Russia, so that it creates the difficult work for HR department when they want to hire efficient labor.
Technology factor;
Technology is competitive advantage for international business. In Russia, there are fewer technologies to allow customers to easily access to products. All technologies base on the local resources. However, Pepsi use the technology to be the media of their advertising, such as television, and newspaper. Pepsi also adds the technology such as vending machine in their selling instead of using middle man
1) What were the legal issues in this case? What did the appeals court decide?
The Court in the 6th Circuit was to determine if the plaintiff, David Dunlap, had met the burden of proof that his
1. Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt).
The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical
There was a dramatic drop in ice cream companies from 1991 to 1992. The output fell to levels last experienced in the early 1970s. Foreign ice cream companies, including Ben & Jerry’s, Baskin & Robbins, Nestle, and Unilever, all poured into to Russian market to capitalize on the open market opportunity. This show Ice-Fili’s technology were same as before that way new competitor enter in Russia as a result.
EVA stands for economic value added. EVA is a value based financial performance measure based
Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.
(1) Whether a plaintiff must plead and prove willful and wanton conduct in order to
Part I: Overview of Case (who is involved and what they are arguing, as well as all possible theories, defenses, and torts involved)
(1) Whether a plaintiff must plead and prove willful and wanton conduct in order to
PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and
1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?
For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. By employing various advertising tactics, strategies such as blind taste tests, and reward initiatives for the consumer, they have grown to become oligopolistic rivals. In the soft-drink business, “The Coca-Cola Company” and “PepsiCo, Incorporated” hold most of the market shares in virtually every region of the world. They have brands that the consumers want, whether it be soft-drink brands or in PepsioCo’s case, snacks. With only one soft-drink market, the two competitors have no choice but to increase sales by stealing the other competitor’s clients. This led to the term, the “cola wars” which was first used
1. Consider Coca-Cola’s advertising throughout its history. Identify as many commonalities as possible for its various ads and campaigns. (For a list of Coca-Cola slogans over the years, check out http://en.wikipedia.org/wiki/Coca-Colaslogans.)
big market share, such as Pepsi Cola, Mt.Dew, and so on. I like to drink Coke