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Coke Under Fire

By | March 2013
Page 1 of 3
Coke Under Fire
Case 4.2
Gabby M. Adamo
Texas Wesleyan University

Coca-Cola history began in 1886 when pharmacist, Dr. John S. Pemberton’s curiosity, led to his creation of a uniquely tasting soft drink that could be sold at soda fountains. The Coca-Cola Company is currently the world's number one maker of soft drinks, with it’s red and white trademark making it the best-known brand symbol in the world. In spite of this concept over the last ten years, the firm has struggled to reach its financial intents and has been associated with a number of ethical crises. The various ethical crises are associated with turnovers in top management, departure of key investors, and the loss of reputation. Seemingly, the company shows no end to these events as major crises continue to develop. A major crises relating to this multi million dollar corporation was when Coca-Cola allegedly accused of giving German, Austrian, and Danish supermarkets illegal inducements to stock fewer rival products. This could lead to major problems regarding how others see the company and where its intentions really lye. Part 1 of Understanding the Global Marketing Environments states that similar accounts have occurred forcing the corporation to endure various lawsuits resulting in the loss of 70 cases. Loosing these cases became a problem and led to major loss in the overall wealth in the company as well as future views of Coca-Cola as being a liability. Many of these cases have derived from Coca-Cola’s ongoing rival with PepsiCo. A major account between the two arose when “Coca-Cola made the attempt to acquire the soda brands for Cadbury Schweppes, which included Dr. Pepper and 7-up.” (Gillespie) This proposed purchase encompassing all of Cadbury Schweppes’s international markets. If successful this purchase would have increased Coca-Cola’s market shares in over 150 countries, but these two companies merging could lead to monopolistic issues. Many were dissatisfied with this proposed...

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