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An Enterprise Desk Research report on

Submitted in partial fulfillment of the requirements

For the degree of Master of Business Administration

To

By

Name of Students PRN NO.

1- Gaziyani Md. Hasnain Md. Khalid ----------------------------


2- Ansari Abu Swaleh Rafeeque Ah. ----------------------------
3- Rahul O. Bhandari ----------------------------
4- Khushboo Mutha ----------------------------
5- Bhagyashree Mankar ----------------------------
Under the guidance of

HON. HOD. PROF. MR. U.S. KASAR


In the Year-2013-14

Through

S.N.J.B‘s Late Sau. K.B.Jain College of Engineering, Neminagar, Tal- Chandwad, Dist-Nasik, (M.S)

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DECLARATION BY THE STUDENT
I hereby declare that this Project Report titled THE COCA-COLA COMPANY
Submitted by me is based on actual work carried out by me under the guidance and
Supervision of PROF. MR. U.S. KASAR any reference to work done by any other person
Or institution or any material obtained from other sources have been duly cited and
Referenced. It is further to state that this work is not submitted anywhere else for any
Examination.

Date:

Name of Students: Signature of the Students

1- Gaziyani Md. Hasnain Md. Khalid

2- Ansari Abu Swaleh Rafeeque Ah.

3- Rahul O. Bhandari

4- Khushboo Mutha

5- Bhagyashree Mankar

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ACKNOWLEDGEMENT

We would like to thank the almighty for his constant grace showered on us
and his increasing gift of knowledge and strength that has relentlessly prevailed
our life through the entire project work.

It was such an honor and privilege for us to collect information for the
companies and share with the class. We would have not completed our project
without their immense help and co-operation.

Our sincere gratitude goes to Mr. and for guiding us


and helping to collect data and constantly counseling us through their undertaking.

We acknowledge our sincere thanks to Prof. Kasar Umesh S for his guidance
that made us this project materialized. Finally, we are also thankful to our parents
and friends for their encouragement and support.

We would like to thank SNJB‘s KBJ COE dept of MBA and our principal
Dr.V.J.Gond for the exposure and support provided during the project.

Names of students

1- Gaziyani Md. Hasnain


Md. Khalid

2- Abu Swaleh Rafeeque


Ah.

3- Rahul O. Bhandari

4- Khushboo Mutha

5- Bhagyashree Mankar

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INDEX

Chapter No. Chapter Name PAGE.NO

ENTERPRISE HISTORY
1 AND BACKGROUND 7-14

ORGANISATION
2 16-22

MARKETS
3 24-38

FINANCIALS
4 40-45

GOVERNANCE
5 47-55

REFERENCES
-- 56

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Introduction of the Coca-Cola Company

The Coca-Cola Company (Coca-Cola), the world‘s leading soft drink maker,
operates in more than 200 countries and sells 400 brands of nonalcoholic
beverages. Coca-Cola is also the most valuable brand in the world. Coca-Cola is a
globally recognized successful company. The Coca-Cola was founded in May of
1886 and continues for more than a century through the times of war and peace,
prosperity and depression and economic boom and bust. As late as the 1990s,
Coca-Cola was one of the most respected companies in the world, building and
known as a very successful management team. Since 1998, the company has been
struggling with internal weaknesses and external threats.

The purpose of this case study is to assess the current situation of Coca-Cola
and the industry, evaluate the existing resources.

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CHAPTER – 1

ENTERPRISE HISTORY AND


BACKGROUND

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ENTERPRISE HISTORY AND
BACKGROUND
HISTORY
1894 … A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-
Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,
using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler,
who owned the Company. Candler thanked him but took no action. One of his nephews already
had urged that Coca-Cola be bottled, but Candler focused on fountain sales.

1899 … The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around
bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead
obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton,
soon joined their venture.

1900-1909 … Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling technology, which
improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were
operating, most of them family-owned businesses. Some were open only during hot-weather
months when demand was high.

1916 … Birth of the contour bottle

Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators.
A group representing the Company and bottlers asked glass manufacturers to offer ideas for a

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distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won
enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the
few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most
recognized icons in the world - even in the dark!

1920s … Bottling overtakes fountain sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas
and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A
few years later, open-top metal coolers became the forerunners of automated vending machines.
By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

1920s and 30s … International expansion

Led by long-time Company leader Robert W. Woodruff, chief executive officer and chairman of
the Board, the Company began a major push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain,
Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44
countries.

1940s … Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General Eisenhower's base
in North Africa. Many of these war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the Company's worldwide business.

1950s … Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type -- the traditional
6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were
also introduced, becoming generally available in 1960.

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1960s … New brands introduced

Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-
Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought
diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s.
Today hundreds of other brands are offered to meet consumer preferences in local markets
around the world.

1970s and 80s … Consolidation to serve customers

As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved
into international mega-chains. Such customers required a new approach. In response, many
small and medium-size bottlers consolidated to better serve giant international customers. The
Company encouraged and invested in a number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in working with global retailers.

1990s … New and growing markets

Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century …

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as people seek brands that honor local identity and the
distinctiveness of local markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the foundation on which the entire
business grows.

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Mission and Objectives
Mission

Coca-Cola declares the purpose as a company and serves as the standard against actions and
decisions:
 To refresh the world…

 To inspire moments of optimism and happiness…

 To create value and make a difference.

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Vision
The vision of Coca-Cola is the framework for their guides of every aspect of its business. It is
presented in 6Ps:

1. People: Be a great place to work where people are inspired to be the best they can be.

2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.

3. Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.

4. Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

5. Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.

6. Productivity: Be a highly effective, lean and fast-moving organization.

Board members:

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Other Board of directors

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CHAPTER – 2

ORGANISATION

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ORGANISATION
ORGANISATION STRUCTURE

CORPORATE

Muhtar Kent, Chairman and CEO

Alexander Cummings, Chief Administrative Officer

J. Alexander "Sandy" Douglas Jr., Global Chief Customer Service Officer

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Gary Fayard, Chief Financial Officer

Javier Goizueta, President, McDonald's Division

Julie Hamilton, Executive Assistant to the Chairman and CEO

Dominique Reiniche, Chairman, Europe Group

Jose Octavio "Pacho" Reyes, Vice Chairman, The Coca-Cola Export Corporation

Joseph Tripodi, Chief Marketing & Commercial Officer

Clyde Tuggle, Chief Public Affairs & Communications Officer

COCA-COLA AMERICAS

Steve Cahillane, President, Coca-Cola Americas

North America Group

Katie Bayne, President and General Manager, North America Brands

Glen Walter, President and Chief Operating Officer, CocaCola Refreshments

Ben Garren, Legal

John Guarino, President, Coca-Cola Refreshments Canada

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Nancy Hunter, Executive Assistant to President – Coca-Cola Americas

Carolyn Jackson, Human Resources

Nicola Kettlitz, President, Canada Business Unit

Robert Long, Quality & Technical

Sonya Soutus, Public Affairs & Communications

Duane Still, Finance

Deryck van Rensburg, Venturing & Emerging Brands

Brian Wynne, Strategy & Planning

Latin America Group

Brian Smith, President, Latin America Group


Francisco Crespo, President, Mexico
John Murphy, President, South Latin
Alfredo Rivera, President, Latin Center
Xiemar Zarazua, President, Brazil

COCA-COLA INTERNATIONAL

Ahmet Bozer, President, Coca-Cola International

Eurasia & Africa Group


Nathan Kalumbu, President, Eurasia & Africa Group

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Kelvin Balogun, President, Central, East & West Africa
Curt Ferguson, President, Middle East & North Africa
Therese Gearhart, President, South Central Africa
Galya Molinas, President, Turkey, Caucasus & Central Asia
Zoran Vucinic, President, Russia, Ukraine & Belarus

Europe Group

James Quincey, President, Europe Group


Nikos Koumettis, President, Central & Southern Europe
Marcos de Quinto, President, Iberia
Dan Sayre, President, Northwest Europe & Nordics
Hendrik Steckhan, President, Germany

Pacific Group

Glenn Jordan, President, Pacific Group


Manuel Arroyo, President, ASEAN
Tim Brett, President, Japan
David Brooks, President, Greater China & Korea
Bruno Filipi, President, South Pacific
Atul Singh, President, India & Southwest Asia

Functional Leadership

Harry Anderson, Finance


Paul Fourie, Strategy & Planning
Stevens Sainte-Rose, Human Resources

BOTTLING INVESTMENTS GROUP (BIG)


Irial Finan, President, BIG

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Operational Leadership

Rick Frazier, Commercial Products Supply


Martin Jansen, China, Malaysia and Singapore
T. "K.K." Krishnakumar, India
Vamsi Mohan, Vietnam and Cambodia
Paul Mulligan, Latin America and Japan
Ulrik Nehammer, Germany
Bill Schultz, Philippines
Kevin Warren, Middle East, Africa and Russia

Functional Leadership

Sunil Ghatnekar, Finance


William Hovis, Procurement
Afzaal Malik, Public Affairs & Communications
Mark Pitts, Executive Assistant
Javier Polit, Information Technology
Bjarne Tellmann, Legal
Nick Wall, Human Resources

Coca cola head quarters


The Coca-Cola Headquarters is a campus in Midtown Atlanta, Georgia that is home
to The Coca-Cola Company. The most visible building on the site is a 29-story, 403–foot
(122.8 m) high One Coca-Cola Plaza. Located on the corner of North Avenue and Luckie Street,
the building was completed in 1979. The architect was FABRAP and the designer Tom Pardue.

The building and complex is located across the street from Georgia Institute of
Technology and Midtown Atlanta.

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In May 2011, to celebrate the 125th anniversary of Coca-Cola, a projection screen was
made for the building that would display various Coke ads through the years and also
transformed the building into a huge cup of ice which then was "filled" with Coke.

In INDIA, its head office is situated in Gurgaon, Haryana

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Certifications:-

2. OHSAS Certification

1. ISO Certifications • OHSAS 18001:2007

• ISO 9001:2008

• ISO 14001:2004

• ISO 22000:2005 3. FSSC Certification

• FSSC 22000

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CHAPTER – 3

MARKETS

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Markets
Worldwide share and Geographical distribution

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Product-wise Market share

TARGET MARKET OF COCA-COLA


• Coca-Cola takes every customer as target and potential who is thirsty.

• All age groups are being targeted but the most potential is the age group from 18-25 that
covers around 40% of total age segment.

• AGE: The target market for the Coca-Cola is based on age. The audience of Coca-Coal
is youngster or youth.

• It has wide range of targeting. It ranges from the age of 15-25 and reaches to 40.

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• Their targeting is not based gender but the results show that both genders like this
product and use it.

• GENDER: Coca-Cola segments INDIAN market with a percentage ratio of 58%


females and 42% males.

• Life style; busy life style( face shortage of time) and mobile generation.

• Family; dependent on their family.

• Occupation; students and family oriented people.

• NATURE: Fun loving and entertainment loving.

• SOCIO ECONOMIC STATUS: Upper lower and lower class

MARKET SEGMENTATION OF COCA-COLA

• Coca-Cola serves its products using mass market technique. Which obviously falls in
undifferentiated marketing and undifferentiated marketing means no segmentation, but

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there are minor factors on which we can say that the coke segments its products and then
targets the customers somehow.

• These factors are as follows.

GEOGRAPHIC SEGMENTATION:

 INTERNATIONALLY: Coke segments its products country wise and region


wise.

 The most important things is the taste and quality.

It varies according to the taste and income level of the people in that country. I.e.: third world
countries are given low quality and taste

• CLIMATIC : In coke marketing, main idea is to serve it cold, so we that they focus
on hot areas of the world.

• i.e.: ASIA and Middle East etc and their sale increase in summer.

• LOCALY : In INDIA the coke segments more in urban and suburban areas as
compare to rural areas.

DEMOGRAPHIC:

 AGE : Coke segments the small children introducing tastes like vanilla, lime and
cherry. They focus children from 4-12.

 Coke specifically target younger than older.

 FAMILY TYPE: Coke introduces its economy pack and that‘s how the focus
family and groups.

 INCOME : Coke segments different income levels by packing.

 For small income people it has small returnable glass bottle.

 For middle people it has small non-returnable bottle.

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 For higher income people it has Coke Tin.

PSYCHOGRAPHIC :
 All psychographics variables the social class, lifestyle, occupation, level of education and
personality Coke segments everyone.

 But again its there packaging which is different for different consumers.

BEHAVIORAL:

 OCCASION: Coca-Cola segments different occasions which are celebrated in the


country.

 EID & DIWALI has become an international event identity of the culture of INDIA.

 The credit for making celebrations available for almost everyone largely goes to Coca-
Cola Company.

COCA COLA WORLDWIDE PRODUCTS AND DESCRIPTION


COCA-COLA

is the most popular and biggest-selling soft drink in history, as well as the
best-known brand in the world.
On May 8, 2011, Coca-Cola celebrated its 125thanniversary. Created in 1886 in Atlanta,
Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage at Jacob's
Pharmacy by mixing Coca-Cola syrup with carbonated water.
Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it was
being sold in every state and territory in the United States. In 1899, The Coca-Cola Company

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began franchised bottling operations in the United States.
Coca-Cola might owe its origins to the United States, but its popularity has made it truly
universal. Today, you can find Coca-Cola in virtually every part of the world.

SPRITE

Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft


drink. Sprite is sold in more than 190 countries and ranks as the No. 3 soft drink worldwide, with
a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste
that really quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it
apart from other soft drinks. Sprite encourages you to be true to who you are and to obey you.

FANTA

Introduced in 1940, Fanta is the second oldest brand of The Coca-


Cola Company and our second largest brand outside the US. Fanta Orange is the leading flavor
but almost every fruit grown is available as a Fanta flavor somewhere. Consumed more than 130
million times every day around the world, consumers love Fanta for its great, fruity taste.

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DIET COKE

Diet Coke, also known as Coca-Cola light, is a sugar- and calorie-free


soft drink with a deliciously crisp taste that gives you a light boost in your busy day. It was first
introduced in the United States on August 9, 1982, as the first new brand since 1886 to use
the Coca-Cola Trademark. The brand created an entire new category and a new way of life.
Today, Diet Coke/Coca-Cola light is one of the largest and most successful brands of The Coca-
Cola Company, available in over 150 markets around the world.

COCA-COLA ZERO

zero was created with young adults in mind and offers great Coke
taste, uplifting refreshment and zero sugar.

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COCA-COLA LIGHT

Diet Coke, also known as Coca-Cola light, is a sugar- and calorie-free


soft drink with a deliciously crisp taste that gives you a light boost in your busy day. It was first
introduced in the United States on August 9, 1982, as the first new brand since 1886 to use
the Coca-Cola Trademark. The brand created an entire new category and a new way of life.
Today, Diet Coke/Coca-Cola light is one of the largest and most successful brands of The Coca-
Cola Company, available in over 150 markets around the world.

FRESCA

With a unique citrus taste, Fresca is a caffeine-free soft drink for discriminating
adults. Fresca was introduced in the United States in 1966 as a calorie-free grapefruit-flavored
drink. Its bubbly, crisp, light taste provides a flavorful beverage to consumers who want great
citrus taste in a calorie-free soft drink. Fresca is sweetened with sugar in some parts of the world.

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GLACÉAU VITAMIN WATER

Glacéau vitamin water has always been a simple idea. Start with water.
And then add bold, fruity flavors and just the right amount of sugar to make it delicious. Finally,
top it off with a little extra nutrition. Genius and it never would‘ve happened if someone hadn‘t
looked at a plain bottle of water and said, ―what if this was a little better?‖ making things a little
better is what makes glacéau vitamin water great. Glacéau vitamin water, the pioneer of the
nutrient-enhanced water beverage category, is available in over 26 countries. Grab a cold vitamin
water and make your day a little better. Also available with no calories in many countries—
glacéau vitamin water zero.

DEL VALLE

Del Valle Brand has its roots in Latin America and recently joined our
‗billion‘ dollar brand status within The Coca-Cola Company portfolio of brands. It has a diverse
juice line up ranging from 100% juices and nectars to juice drinks and is available in different
convenient packaging for the whole family. The brand is available in Mexico, Brazil, Colombia,
Venezuela, Central America, and other markets in Latin America.

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GLACÉAU SMARTWATER

Glacéau smart water is inspired by the way mother nature makes


water, known as the hydrologic cycle. We simulate this process by vapor distilling water,
making every drop as pure as the very first drop of rain (before it passes through pollutants, of
course). if that‘s not smart enough, we then one-up mother nature by adding in electrolytes for a
clean crisp taste. if that sounds like genius, it is. Smart water is smart because it‘s made that
way.

MELLO YELLO

The smooth citrus taste of Mello Yello has refreshed people's thirst for
over two decades. Its unique taste and confident, in-control style sets it apart from other soft
drinks. Mello Yello highlights the smooth choices in life - because when you drink Mello Yello,
everything goes down easy.

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FUZE

FUZE® is reinventing the juice drink experience with its line of flavored
beverages that blend together the goodness of diverse fruity flavors and nutritional ingredients.
The new and improved FUZE is now available in twelve mouthwatering flavor varieties, each of
which is an excellent source of antioxidant Vitamins A, C and E.

FUZE TEA

FUZE TEA is a new global tea brand from the Coca-Cola family that is a
fusion of tea with fruit flavors and other natural ingredients. Created through a special process
that ensures a delightful fusion of tea, fruit and other natural flavors, FUZE TEA delivers a fresh,
contemporary expression of tea.

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BURN

With a potent combination of energizing ingredients, burn is designed to


invigorate your senses and to give you the power to keep it going. Available in 76 markets
throughout Europe, Africa and Latin America, burn is popular among adventurous trendsetters.

HONEST TEA

Honest Tea®, the nation's #1 organic bottled tea, delivers great-tasting,


lower-calorie refreshment. Each tea is freshly brewed using organic tea leaves and a touch of
organic cane sugar. Honest Ade® and Honest Kids®, organic caffeine-free thirst quenchers, are
50 calories or less per serving. Honest Tea is USDA Certified Organic, OU Kosher, Fair Trade
Certified™ and is available at retailers nationwide.

NOS

Popular among auto enthusiasts, NOS is sold in 16-oz. cans and 22-oz. re-
sealable bottles, with the latter bearing a resemblance to actual Nitrous Oxide canisters used in

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automotive performance. The unique 22-oz. package won a National Association of Container
Distributors packaging innovation award in 2007. NOS Energy Drink was developed in 2005 by
FUZE Beverage and Holley Performance Products and was purchased by The Coca-
Cola Company in 2007.

ODWALLA

With a vivacious medley of scrumptious beverages and bars, Odwalla


artfully blends the best ingredients from nature with the latest leanings in nutrition. Odwalla
products never contain any artificial colors, flavors, preservatives or genetically modified
ingredients. The Odwalla line includes Super food(TM), smoothies, pure juices, proteins and
energy.

POWERADE ZERO

Electrolytes without the calories. POWERADE ZERO™ is a great-


tasting electrolyte-enhanced sports and fitness drink. It combines electrolytes with fluids for
hydration. It quenches thirst and replenishes minerals lost during sports or other intense
activities.

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COCA COLA’s OTHER INDIAN PRODUCTS

Advertising and Marketing Campaign

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POLAR BEAR DRINKING COCA-COLA

COCA COLA INDIAN COMMERCIALS AD


Commercial AMIR KHAN as a guide!

 Message: Thanda bolay tu Coca Cola!

 Focus: Diverse market segment captured by Coke.

To squeeze on thirst, everyone needs a chilled drink. And to everyone regardless of


the standard of lifestyle and status, a chilled drink means Coca Cola

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CHAPTER – 4

FINANCIALS

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FINANCIALS
FINANCIAL STATEMENTS

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Contd…

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Servings per person

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Global Workforce

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Market Capitalization

Investors Info: Stock Information

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Stock Split History

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CHAPTER – 5

GOVERNANCE

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GOVERNANCE
Scam Overview

• The Indian government forced Coca-Cola out of the country in 1977.

• The company returned in 1993

• Each bottling plants extracts up to 1.5m liters of water every day from the ground.

• It takes nine liters of clean water to manufacture a liter of Coke.

• In 2000 Coca-Cola opened a plant at Plachimada, a village in Kerala to produce 1.2m


liters of coke every day.

• The conditional license granted by the local Panchayat authorized the use of motorized
pumps

• But the company drilled more than six wells & illegally installed high-powered electric
pumps to extract millions of liters of pure water.

• The level of the water table fell from 45 to 150 meters below the surface.

• The company started dumping waste outside causing a serious health hazard.

• The court gave Coca-Cola a notice to cease water extraction

• The theft of water was not only limited to kerala

• Overexploitation of groundwater soon started in Kaladera

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Kala Dera - Thirsting from Coca-Cola
• Kala Dera is a large village outside the city of Jaipur.

• Agriculture is the primary source of livelihood.

• Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the
community started to notice a rapid decline in groundwater levels.

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Unusable Well in Kala Dera Showing Depleted Water Level

• For farmers, loss of groundwater translated directly into loss of income.

• For many children it meant leaving schools to provide a much needed helping hand in
household since the women had additional burdens.

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Community response

The community in Kala Dera organized itself to challenge the Coca-Cola Company for the
worsening water conditions - through extraction and pollution - and demanded the closure of the
Coca-Cola bottling plant.

Company's Response
The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing
local community opposition

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The assessment noted that the plant's operations would continue to worsen water situation

Coca-Cola's Response - Unethical and Dishonest


• Coca-cola took seven month to respond

• Coca-cola not respond to the concern raised

• Unethical and dishonest campaign

• Chosen to continue the operation

• Continued in misery of thousand people

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Coca-Cola should no longer utilize the overexploited groundwater resource in Kala Dera

1. Transport water from the nearest aquifer that may not be stressed.

2. Store water from low-stress seasons.

3. Relocate the plant to a water-surplus area.

4. Shut down this facility.

The community in Kala Dera welcomed the recommendations and waited for company‘s
response.

COKE’S Corporate Social Responsibility - A Scam?


The Coca-Cola steps up its corporate social responsibility announcing to the world that it is a
―green and socially responsible company.‖ --- But was not the case at kala dera

The company announce its rainwater harvesting initiatives in India

It was also announced that the company will become "water neutral" in India by 2009

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Some serious concerns about Coca-Cola's claims on rainwater
harvesting
• The company announced that it has recharged five times the amount of water it has used.
• When asked to back it up with numbers, Coca-Cola does not provide any.
• Coca-Cola states that they "will install measuring devices that will verify the amount of
water recharged."
• If they do not have measuring devices installed to verify the amount of water recharged,
how can they make a claim of recharging five times the water that they have extracted?

• People across Rajasthan are well known in rainwater harvesting and have been harvesting
rainwater long before Coca-Cola started.
• Coca-Cola started rainwater harvesting to overcome response to the growing campaigns
against its water mismanagement.
• Coca-Cola was bluffing people with its rainwater harvesting.
• The rainfall in the area is too low, and the amount of rainfalls fluctuates a lot contributing
to 30 days of rains every year

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• 80% of those rains come in just two or three days and hence rainwater harvesting is
simply not efficient
• Based on their rainwater harvesting initiatives Coca-Cola company has announced that
they will become water neutral in India by 2009
• Coca- cola will recharge more water than the use from the groundwater resource. ---A
BLUFF

Coca-Cola Threatens Top Indian Photographer with Lawsuit


a billboard by: Mr. Haksar

• In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar threatening him with
serious legal actions unless the billboard was replaced 'unconditionally and immediately'.

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• Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for "incalculable damage to
the goodwill and reputation" of Coca-Cola, and also sought an 'unconditional apology in
writing'.

• Mr. Haksar said that he had no intentions of issuing any apology because he has not
committed anything wrong.

Negative Publicity

The company received negative publicity in that past decade.


In 2003, it was revealed that several midlevel employees had rigged a marketing test for
Frozen Coke done three years earlier at Burger King Restaurants in Virginia. The scandal led to
the departure of the head of Coke's fountain division, and the company issued an apology to
Burger King and its franchisees and offered to pay them US$21 million.
In the early 2004, the launch of the Dasani brand into the European market was cancelled
when bottles in Britain were found to contain elevated levels of bromate, a substance that can
cause cancer after long-term exposure.
In India, during September 2006, Coca-Cola was accused by the Center for Science and
Environment (CSE) of selling products containing pesticide residues. Coca-Cola products sold in
and around the Indian national capital region contained a hazardous pesticide residue. These
pesticides included chemicals which could cause cancers, damage the nervous and reproductive
systems and reduce bone mineral density.

Besides, Coca-Cola‘s products are always labeled as ―junk food‖. People criticize Coca-
Cola‘s beverage contain too much sugar and high is calories. It is labeled as one of the important
factors of causing serious obesity rate in developed countries.
Such negative publicity could adversely impact the company‘s brand image and the
demand for Coca-Cola products. This could also have an adverse impact on the company‘s
growth prospects in the international markets.

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REFERENCES
• http://en.wikipedia.org/wiki/Coca-Cola

• http://www.kemplen.co.uk/the-end/the-end.jpg

• http://www.picgifs.com/wallpapers/wallpapers/coca-cola/Coca_Cola03.jpg

• http://images4.fanpop.com/image/photos/15300000/Coca-Cola-bottles-through-the-years-
coke-15337419-500-274.jpg

• http://www.coca-colasantafe.com/files/slides/people-drinking-coca-
cola_0.png?1308086280

• http://news.bbc.co.uk/2/hi/4706275.stm

• http://en.wikipedia.org/wiki/The_Coca-Cola_Company
• http://heritage.coca-cola.com/
• http://www.coca-colacompany.com/investors/stock-history/investors-info-dividends
• http://usatoday30.usatoday.com/money/industries/food/story/2012-07-10/coca-cola-
stock-split/56128588/1
• http://www.coca-colacompany.com/stories/
• http://www.coca-colacompany.com/brands/
• www.coca-colaindia.com
• www.coca-cola.com
• www.coca-colacompany.com
• www.us.coca-cola.com
• www.coca-cola.co.uk/
• www.cokecce.co.uk/about-us/sites-and-offices.aspx

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