The Main Reason For The Failure

1682 Words Aug 13th, 2015 7 Pages
4. CULTURE:
The main reason for the failure has been cited as the large power distance and high uncertainty avoidance by some of the nations. Hofstede in one his studies showed that countries with high uncertainty resistance and also with high power distance were more emotional and also were more quickly to react than the others and since the countries issued a ban on the products. With stringent rules and low risk taking, they were quick in response to ban the Coca-cola products crisis. Though, the organization was moderate in reacting to the danger as they were an American organization which construct its belief systems with respect to the American environment and neglected to adjust to the nearby environment. The organization began to disseminate its items for nothing however none were willing to purchase. Following 9 days of issuing the boycott, the organization approached and acknowledged the slip-up. But, because of careless and uninformed conduct, the offers of the organization had officially diminished and this brought about the most noticeably bad deals in history of the organization in 113 years. "Culture eats strategy for breakfast" (Peter Drucker refered to by Katzenbach and Leinwand,2015) would be rightly utilized as a part of this connection. The way of life winning inside of the organization 's surroundings and how certain things work around in a spot were more towards the American association which created disappointment. Such a methodology neglected to work…
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