Coca-Cola India On August 20‚ 2003 Sanjiv Gupta‚ President and CEO of Coca-Cola India‚ sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%1 in only two weeks. On August 5th‚ The Center for Science and Environment (CSE)‚ an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and
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Initiatives in India 1. Company Background • Coke – A sweet carbonated drink containing caramel and other flavoring components • Invented in 1886 by Dr. J.S. Pemberton • Contained extracts of Coca leaves and Kola nuts • Business sold in 1888 to business men • Candler acquired competitors and promoted Coca-Cola → Rapid sales increase since 1895 • In 1894 J.A. Biedenharn invented selling the prepared drink in bottles 2. Company Background (continued)• In 1919 a group of investors bought Coca Cola for around
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The crisis that happened at Coca Cola was a very crucial incident. It affected issues such as brand and reputation‚ and the company has to take action so as not to ruin its image. Coca Cola is a company with a very strong brand name all over the world. An attack like this of the NGO can lead any company to problems. Although the Center for Science and Environment attacked the safety of Coca Cola India ’s products‚ Coke was well within the Indian government ’s legal limits for pesticide residue in
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The Case Study Report “Coca-Cola in India” BY: SALLY WIJAYA Executive Summary This report will discuss about “Coca-Cola in India”‚ what are the barriers and how to solve it. The barriers includes: Coca-Cola’s difficulties in terms of the culture barriers between US and India‚ Coca-Cola’s respond towards India’s negative perception to MNE‚ Coca-Cola’s Changes to obtain more Indian market‚ and the commitment of Coca-Cola‚ PepsiCo and other MNE should demonstrate to work with different cultures
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Case Study on Coca Cola’s Cultural Issues in India admin August 20‚ 2012 Blog No comments Socio Cultural barriers faced by coca cola in India Coca – cola‚ the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later‚ due to FERA (Foreign Exchange Regulation Act)‚ they left India and didn’t
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Table of contents Executive Summary i The Coca-Cola Company Firm Profile ii The Beverage Industry in India iii India’s Societal System vii Macroeconomic Indicators and Demographics. vii Market System Aspects ix Infrastructure and Legal Order ix Cultural Dimensions x India’s Societal Predisposition xi Ideologies xii Indian Caste System xii Values xiii Religion xiv Political xv Economic xv Strategies and Policies xvi Constraints xvi Coca-Cola Strategy xvii Future Strategic Initiatives
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Many cultural differences may have caused Coke’s difficulties in India. A major difficulty could have been communication. People from India express themselves in a totally different manner than Americans. For this simple reason‚ misunderstanding could have arisen. Another cultural difficulty could have been that India has many political and legal issues internally‚ which makes India less wholesome than the United States. These issues could have led to interference with Coke’s operations in that country
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Coca-Cola in India 1. What aspects of U.S. and Indian culture may have been a cause of Coke’s difficulties in India? There are four areas that of culture differences may cause the Coke’s difficulties in India. First of all‚ is the spoken and written language. During the contact with the India government‚ there might comes out some misunderstood with language express. Secondly is the service and empowerment. Asian culture is more conservative and the U.S. pays more attention on empowerment
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the challenges faced by Coca cola in India. More details have been added from various sources to provide a more detail picture outlining the plight of Coke in India. Coke has suffered the below difficulties when operating in India. Reports of Center for Science and Environment (CSE) release in 2003 and 2006 claiming its drink contained unsafe level of pesticide. CSE tested the soft drink under European Economic Commission (EEC) standards and find out samples sold in India contained pesticides 30
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1. Why do you think Coca-Cola has had one ethical issue after another over the last decade or so? Ethical issues have been a problem for Coca-Cola because the company has lacked quality leadership in many areas of the organization. It seems that the company was not prepared to handle disputes or incidents when they occurred. They were slow to respond in many incidents because they were ill equipped to handle the fall out. They essentially had no crisis management skills. It seems that
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