In these case studies, the answers of the cases are derived out. These slides will enable you to get full understanding of the marketing and trading Concept. For assistance, please refer to the document: https://drive.google.com/file/d/1s3o1M-vIzkH-6jEYBNUIYEx0NNvas72U/view?usp=sharing

1. INTERNATIONAL
TRADE AND
DEVELOPMENT
CASE STUIDES
BATA & PEPSICO
By
Muhammad Ahmad Badar
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2.  Founded by Tomas Bata in 1894 , Czechoslovakia
 5000 international retail locations
 Business in more than 70 countries
 Services over one million customers per day
BATA, LTD
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3.  Decentralized operation
 Multidomestic company
 labor-intensive operations
 Buys raw materials locally
BATA,LTD
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4.  Nazi invasion in Czechoslovakia
 Operations were taken over by communists
 Tom Bata Sr emigrated to Canada
WORLD WAR II
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5. Uganda
 Nationalized by Milton Obote
 Denationalized by Idi Amin
 Renationalized by Amin
 Denationalized by Amin
Bata worked as if nothing had ever happened
FOREIGN POLITICAL SYSTEMS
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6. Chile
 Criticized for maintaining relations with totalitarian regimes
 Company claimed that it has been working for over 40 years
FOREIGN POLITICAL SYSTEMS
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7. South Africa
 Highest GDP in Africa
 Low labor costs, high mineral wealth
 Situation deteriorated in 1980s
 Segregations between black and white
 Bata left South Africa in 1986
Terms: name, BATA banned in SA
FOREIGN POLITICAL SYSTEMS
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8. Advantages for BATA
Home country, large facilities, established company
Disadvantages for BATA
No free trade
Compliance with economic policies
RE-ENTRY CZECHOSLOVAKIA
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9.  Advantages for Czech Republic
Local resources would be explored and utilized
Increase in revenues of raw material producers
 Disadvantages for Czech Republic
Compensation to be paid back to BATA
Handover the management to BATA
RE-ENTRY IN CZECHOSLOVAKIA
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10. PESPICO IN INDIA
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11.  Founded by Caleb Bradham in 1893
 Made roads to 151 countries
 Held about 30% of US market
 Acquired KFC I 1986
 Early entry in Myanmar and Vietnam
PEPSICO IN INDIA
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12.  Limca, Cola, Orange drinks
 Lemon drinks were popular in Metro
 Coca Cola left India in 1977
 Parle Exports became dominant (Thumps up)
THE INDIAN SCENARIO
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13.  International trade constituted 6% of GDP
 Import/export tariffs, quantitative restrictions
 Upper limit equity participation
 Restrictions on technology transfer
 Export obligations
FDI REGULATIONS
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14.  1977- opportunity after Coca Cola departed
 1985- Proposal with R.P Goenka (rejected)
1985- proposal with TATA and Punjab Agro Industries
 $15M investment
 Agro research center
 Potato/grain based processing unit
 Fruit/veg processing unit
PEPSICO’S ENTRY IN INDIA
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15. 1985- PROPOSAL
 Location- Punjab
 50,000 Jobs
 Technology for better utilization of fruits
 Prevention of wastage (about 30%)
 PepsiCo’s venture approved
Coca Cola tried to re-enter
PEPSICO’S ENTRY IN INDIA
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16.  1989- Coke’s application rejected
GOVERNMENT DEMANDS
 Reduce equity holding (40%)
 Divulge its formula
 Use dual trademark
Coca Cola didn’t agree
COKE’S RE-ENTRY IN INDIA
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17. Any Questions?
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