Roll no:

MGM’s Institute of Management Studies & Research __________

“International Business” Marks: - 60
MASTER OF MANAGEMENT STUDIES Date: -
III SEMESTER INTERNAL EXAMINATION, February 2024
Question-paper
Instructions:1) Section I; Question No. 1 is Compulsory which carries 20 marks.
2) Section II; Attempt any Four Questions from Question No.2 to 7 carry 10 marks in each.
3) Students could write example considering relevant industry applications.

Section I

Q1 (Case Study/ Numerical Problem)

(20 Marks)
Case study
Coca-Cola India - Marketing Strategy for Indian Operations.

In March 2022, a message from Coca-Cola's global headquarters in Atlanta, United States, created a lot of
excitement in the Indian subsidiary. Coca-Cola India (CCI), had been awarded the Woodruff award 1 for
outperforming the dozen-odd emerging markets of Coca-Cola worldwide in growth and profitability
during 2019. The comeback was remarkable for the global cola major. In January 2000, the company had
stated that its investment in India had yielded disappointing returns.

The company had invested $800 million in its Indian operations since its reentry in India. From causing a
dent in the parent's bottom line to winning the prestigious Woodruff award, CCI seemed to have come a
long way.2 CCI was also a major sourcing point for its global operations.

Apart from product brands, the company was also a major supplier of commodities and materials like
sugar, coffee, PET bottles, recycled glass bottles, crowns, labels and caps to its global operations.

It was only in India that Coca-Cola had a mix of its own bottling facilities and arrangements with
independent bottlers. CCI had 27 owned units, 17 franchised units, and 22 co-packers.

Background Note

Coca-Cola reentered India in 1993, after having withdrawn from the country in the late 1970s, in the
wake of the Foreign Exchange Regulation Act (FERA) of 1973. Coca-Cola's reentry was driven both by
competitive factors and the company's own global plans. Global rival Pepsi had entered India in 1990 and
by 1993 had captured a 25% market share.

Coca-Cola could not stay behind. Coca-Cola's exit from the country in 1977, after a 25-year presence, had
been discordant. Following the introduction of FERA, the Reserve Bank of India (RBI) asked
multinationals operating in non-strategic industries like consumer goods to reduce their equity stake to
40% or below. Coca-Cola offered to hold 40% equity in its bottling and distribution units, but refused to
dilute equity in its technical and administrative unit.

As the FERA regulations did not permit more than a 40% holding in all operations, the company decided
to wind up its Indian operations. After reentering India, Coca-Cola encountered problems one after the
other.

The company focused on establishing the Coke brand quickly, believing that its international image was
well entrenched in the minds of the Indian consumers. However, the emergence of many local soft drink
brands since the time it had left India and competition from Pepsi, made things difficult for Coca-Cola.
To gain a quick entry into the market and neutralize Pepsi's early mover advantage, CCI decided to buy
out a local soft drink company, Parle in 1993.

Parle's popular brands like thrums Up, Limca, Maaza, Citra and Gold Spot had a 60% market share.
Between 1993 and 2000, CCI had five presidents, a clear reflection of the difficulties which the company
faced in navigating through a challenging, unfamiliar business environment. During the tenure of the
founding CEO, Jayadev Raja (1992-May 1995) and his successor, Richard Nicholas (June 1995- March
1997), the company struggled to establish itself. It was also criticized for neglecting the Parle brands.
Donald Short (April 1997-November 1999) streamlined the bottling operations and the supply chain

1) Make SWOT & PEST Analysis for Coca Cola.

2) Explain what are Marketing Strategies followed by Coca Cola?
3) Make 5 Forces Industry Analysis for Carbonated Beverages in India with suitable examples.

Section II

Attempt any Four Questions from Question No. 2 to 7 each carries 10 Marks.

Q2 What is the scope of Service Industry in International Business? (10 Marks)

Q3 Explain the advantages of International Business (10 Marks)

Q4 Define the process of International Marketing Research (10 Marks)

Q5 Write short note on Hofstede’s Cultural Dimension Model (10 Marks)

Q6 What is the role of WTC in International Business (10 Marks)

Q7 How Outsourcing / Offshoring is important for various MNC’s? (10 Marks)

--------Best of Luck-------