Firms engaged in international business operate in environments characterised by unique cutrural systems as unfamiliar languages, beliefs and behaviors.

Internationalising corporations are routinely exposed to one of main types of risks which is cross- culture risk. Cross- culture risk refers to a situation or event where a culture miscommunication puts some human value at stake. Cross- culture risk is posed by differences in language, lifestyles, mindsets, customs and/ or religion (Cavusgil et al., 2012). Values unique to a culture tend to be long- lasting and transmitted from one generation to the next and these values influence the shopping patterns of buyer. Coca Cola exploited these features successfully as well as had effective reactive strategies help the company make a huge profit in Chinese market. The Coca Cola Company also called Coke, incorporated on September 5, 1919, is a beverage company. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic sparkling beverage brands, which includes Coca Cola, Diet Coke, Fanta and Sprite. The Companys segments include Eurasia and Africa, Europe, Latin America, North America, Pacific, Bottling Investments and Corporate. It built first bottling plant in China in the decade following World War I, according to China Business Review. However, China's conversion to Communism after World War II halted the progress of foreign businesses. Much later, Coca-Cola was the first US company to distribute its products in China after the country was opened to foreign investors in 1979. Today, the company has an ownership stake in 24 bottling joint-ventures. In most cases this is indirectly through two Hong Kong-based companies that it partly owns: Swire Beverages and Kerry Group. It's not easy for a foreign business to make it China. Many have tried, most failed but few made it big. Coca Cola is one of the happy few (Russell, 2011) First of all, Coca Cola had a really good starting point and that is the color of red. The color of Red in Chinese culture usually has special meanings to people. It is a traditional popular festival colour which reflects happiness, prosperityluck, celebration and the spiritual pursuits of Chinese people. Whether it was a stroke of luck, the red of coca-cola brings Chinese people familiarity and joyousness. So like the red packet which is given every Chinese New Year, is just a symbol of good luck in the coming Year. Red is also a color in Chinese weddings, because in wedding they tend to be happy and by wearing red things, will help the couple who are getting married chasing out the bad things on the day they are getting married. It is also regarded as an energy as red symbolized the Fire element in Chinese metaphysics (HubPages, 2012). Hence, Coca Cola is most preferred drinks in inportant holidays and festivals. For instances, Coke holds a commanding

lead of overall carbonated soft-drink sales in the country, with a 51% market share in 2006, led by its Coca-Cola and Sprite brands, against Pepsi's 30% share, according to Beverage Digest, a US- based beverage- industry trade publication. But Pepsi has slowly been increasing its share. According to market researcher Euromonitor International, Coke sold 4.33 billion liters of carbonated drinks in China in 2007, 70% more than its sales volume in 2000. Pepsi sold 2.93 billion liters by 2007, 93% more than in 2000 (Chao & Mckay, 2007). Second, the color of red surely helped the product to look more appealing to the Chinese consumer when starting a business in China. But when it comes to branding in China, there is one element which is more crucial than all the others the name. Choosing a Chinese name for your product is different than other languages because in Chinese the writing is not phonetic and there is no alphabet. Instead you have characters, and the main purpose of characters is to signify a certain meaning rather than just serve as a pronunciation indicator. Imagine that like the letter V stands for victory, the letter F stood for 'fall' or 'fail'. Would not you rather have a V in your brand's name and not an F? Even if it meant your brand's name would be Verrari and not Ferrari? Coca Cola was fortunate enough to have an excellent choice of characters at its disposal to express the sounds of C and L. The Chinese name (pronounced k ku k l) means "delicious" and "joyous" or "reason for happiness". Quite the perfect name for a bubbly beverage (Chao & Mckay, 2007). When Coca-Cola adopting a new packaging, it is a talking point for market and audience, not just the product itself but packaging design is also the highlight to attract all eyes. There are three main aspects that coca-cola integrates Chinese culture with packaging, which makes consumers identify its brand, feeling brand affinity without knowing. Coca Colas localization on the packaging is reflected in following three aspects are stars that Chinese young people like, Chinese traditional culture and significant events for Chinese people (Liny, 2011). Thirdly, understanding target audience is obviously significant for a brand. It is necessary for a brand to know the need that its target audience requires. Coca cola recognized that consumers in different regions have different cultural backgrounds and preferences, especially in China, people desire for auspicious, jollification and family psychologically. So the company pays more attention to the psychological needs of consumers rather than spread American culture only. Coca Cola advertisement in China changed its main popular character in local America, such as "Santa Claus" is changed into two children wearing Chinese costume and also joined quite a lot of Chinese elements, focusing on the expression of the philosophy of family first and harmony. Moreover "Dragon", "paper-cut", "shadowgraph" and other symbols of Chinese culture often appear in the advertisement (Liny, 2011). Based on that, we can see that the company have applied effectively polycentric orientation which refers to host country mindsets where the

manager develops a greater affinity with the country in which he or she counducts business and acculturation which is the process of adjusting and adapting to a culture other than one's own (Cavusgil et al., 2012). Besides technological aspect,