Coca-Cola India Case Study Analysis

Coca – India Case study Lakeesha Customer Inserts His/her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name April 11, 2013. Introduction Coca-Cola is the leading brand of the world in soft drink category. It was founded by a pharmacist in Georgia known by the name of John Pemberton. He used to sell a potion for physical as well as mental disorders. However, the potion soon turned into world’s largest selling brand after carbonated water in addition to fountain water with other constituents were added to the brand.

Furthermore, soon after the addition of carbonated water, Coca-Cola brand was given the honor of 1887 and in just year of two years, the brand began to spread its sales all over the world. However, the brand got under the wave of ten billion cases in the past decades, which made its growth come to sudden plunge and with lesser improvement in the sales. During the era of 2000, the brand had per annual sale growth of 0. 2 %, which is a deep loss for the company as back in 1980s, its sales growth, had been 5-7%.

Furthermore, as it began its sales in India, the Coca-Cola began to see its rise again since the brand became a favorite of the one billion population of the country, which comprised of every rural or urban part of the community. Ethical Issues Many of the most important cases were filed against the Coca-Cola Company in the last few years. They have been the result of an allegation imposed on the company by its four employees in spring 1999. According to the lawsuit, the company has used discriminatory acts on its African-

American employees just simply on the basis of their being black. Such diverse types of warning were being issued on the company for its discriminatory practices on the employees. Moreover, many of the employees there have been reported to experience an unethical discriminatory culture in accordance with their race and case. Additionally, another major case was filed against the company on 8 June 1999 (Kochan, 1997). This case comprised of thirty-three children enrolled in Belgium school, which fell ill and were hospitalized.

Then again, after few more Belgians went into the trap of this illness. The bottles had been tinned up in a Coco- Cola plant of Dunkirk, France. Moreover, the crisis intensified later after the quantity of people who were stricken with intestinal problems increased from eight to 250, all over the country. However, on June 29, a report was issued which claimed according to research by a toxicologist that the blame was on the carbon dioxide impurities found in Antwerp while on the other hand, there was fungicide in Dunkirk.

In order to fix the crisis, many resolutions were passed by the company, which started free selling campaigns in the countries sending free vouchers. There beach parties, dancers were hired for concerts and advertisements were issued on televisions thanking the public for being loyal to the company. Hence, around 5. 5 million people were influenced by the company to get its fame back. After this, a major crisis had to be dealt with by the company.

On February 4, 2003, the Centre for Science and Environment filed a case against Coca- Cola (Analysis of Pesticide Residues in Soft Drinks, 2003). The CSE was led by a group of activists that claimed about the Kinley Bottled water to contain traces of pesticides. It comprised of ingredients like DDT and Malathion, which are highly toxic and can result in the destruction of human bodies. Let humans apart, these substances can even damage aquatic animal and plant life when disposed of in water bodies.

These tests were taken from a sample of seventeen bottles that had been sold lately. So after the test was being conducted by Pollution Monitoring Laboratory, the results showed that these Coca-Cola products contained more than 30- 36 times of such toxic substance which was surpassing the global standards approved all over the world. These pesticides, according to research could result in cancer, birth defects, and even damage to nervous as well as immune system of the body. Hence, it was proved that it was unethical to sell products, which could result in loss of human lives.

The EEC standard was 0. 005 mg/l of pesticides while in case of Coca-Cola it was 0,018 mg/l, which was thirty six times more (Pendergrast, 1993). In order to resolve issue, the company could show results of its own samples so that employment of many of its workers could be saved. Most important ethical issue that could be assumed from the above mention is Gupta’s dilemma which showed with evidence that Coca- Cola had surpassed the limits of its pesticides concentration to more than forty five times. Alternative Resolutions

Some of the resolutions that the company could make was firstly to marketplace. This was meant that to use such type of substances in its products that were approved by the standards of market. This will build up a strong foothold of the company in the world of market. Moreover, the billions of stakeholders that work in the company could lose their employment if the company continued with unethical acts. This will eventually attract more investors to contribute to the business as a result of which more Coca- Cola brands could be opened.

Moreover, an ethical and proper cultural environment should be given to the employees so that more talented people could come and give their services to the company. Hence, it can benefit themselves as well as the company. In addition, Coca-Cola Company can use its resources in the development of community by contributing in environmentally sustainable practices. Hence, this will result in a better profit making and market value of the company. Best Ethical Resolution

In my opinion, by following the given standards approved by the market, Coca-Cola can get its market value back. This will eventually result in higher employment and lives of many people would be saved if the substances used were not injurious to health. References: ” Analysis of Pesticide Residues in Soft Drinks. ” Centre for Science and Environment (CSE (2003). Kochan, Nicholas,. The World’s Greatest Brands: an International Review by Interbrand. New York University Press,, 1997. Pendergrast, Mark. For God, Country and Coca-Cola. Charles Scribners, 1993.