Learning by Doing and Learning by Observing in Cross Border M&As: Based on the Example of Global Soft Drink Makers M&As

Using the soft drinks industry based on Coca Cola offering to purchase Hui Yuan as an example, this paper rely on the organizational learning to explain what drivers the mergers and acquisitions in the global soft drinks market from the two aspects of learning by doing and learning by observing. The evidence suggests that being a learner-by doing, Coca Cola built itself the image of being a global brand taking the advantage of first mover, being a learner-by-observing and fast follower, PepsiCo quickly stands out to be one of the two giants in the global soft market. The paper also indicates the current situation facing China´s soft drinks industry.