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o abide by all the Foreign Investment Laws of that year. ? CocaCola India tries to expand investment – Government allowed acquisition only if CocaCola agreed to sell 49% of equity within 2 years ? CocaCola tried to get extensions…twice – India granted the first extension, denied the second ? CocaCola India tried to deny the uping Indian shareholders voting rights – Foreign Investment Promotion Board (FIPB) Denies This CocaCola India’s Mistakes ? 1st Mistake – CocaCola should have been more careful of when they entered the market and what they were promising when they entered. ? 2nd Mistake – CocaCola should not have tried to weasel their way out of promises that they made. ? These mistakes hurt CocaCola’s image and reputation as an International Company “Why doesn’t this multinational set an example by fulfilling its own mitments?” Coke or Pepsi in the Long Run? ? Pepsi – Better marketing and advertising strategies – More widely accepted – More market share ? Coke – Government conflicts – Trailing Pepsi in market share ? Pepsi will fare better in the long run Pepsi’s Lessons Learned ? Beneficial to keep with local tastes ? Beneficial to pay attention to market trends ? Celebrity appeal makes for exceptional advertising ? It pays to keep up with emerging trends in the market CocaCola’s Lesson’s Learned ? Pay specific attention to deals made with the government ? Establish a good business relationship with the government ? Investment in quality products ? Advertising is crucial