Pepsi in Burma - A Globalization Catastrophe


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BECG026 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

International Business
Case Length : 13 Pages
Period : 1990 - 2003
Pub. Date : 2003
Teaching Note : Not Available
Organization : Pepsi
Industry : Food & Beverages
Countries : USA and Canada, Burma

Abstract:

The case deals with the experiences of the global cola major, PepsiCo, in Burma during the 1990s. It gives a brief profile of the political, social and economic crisis in Burma under the military rule of the State Law & Order Restoration Council (SLORC). The case discusses why the SLORC opened the Burmese economy and why Pepsi rushed to do business with this country. It then describes the widespread, global opposition by students, human rights activists, politicians, governments and various other parties to the support provided by MNCs (focusing on Pepsi) to Burma's rulers. Finally, it explores Pepsi's partial pull-out from Burma in 1996, the resulting protests, followed by the complete pull-out in 1997. The case also provides a brief update on Burma's crisis till mid-2003.

Issues:

Why MNCs prefer to pay attention to the economic aspects of business decisions and ignore the social considerations involved?

The need to balance economic and social benefits in corporate decision making

Contents:

  Page No.
Boycott Pepsi - Save Burma 1
The Shame that is Burma 2
MNCs Enter Burma 3
Pepsi Tries to Fool the Protestors 6
Forced to Shut Shop Completely 8
Burma's Plight Continues 9
Exhibits 11

Keywords:

PepsiCo, Burma,1990,political, social, economic crisis, military rule, State Law & Order Restoration Council, SLORC, Burmese economy, Pepsi, global opposition, students, human rights activists, politicians, governments, MNC, 1996, 1997, 2003

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