Coca Cola Case Study
Executive Summary
On August 2003, Coca Cola India faced a sales drop due to pesticides residues issue brought by a non-government organization called CSE (Center for Science and Environment). This report aims at covering the case study from the Corporate Communication 5th Edition by Paul A. Argenti ‘s book page 284-299 (Case 10-1). These papers will include the case questions with answers, to analyze the key problems that Coke India should focus and how well-prepared was them in dealing with the crisis, as well as the key constituents and communication strategies that Coke India must do to endure the problem along with the conclusion of whether they have avoided the crisis or vice versa. The conclusion of study and references will also be inserted at the end of paper.
I. What are the key problems that Gupta should focus on in the short term and in the long term?
Firstly, Gupta must understand that Coca Cola has faced several crisis in the past. On February 2003, CSE (Center for Science and Environment), an activist group in India has already brought the issue about Coca-Cola’s Kinley Bottled water which was declared containing pesticides residues, six months before they brought up the same issue about Coca Cola. Since Coca Cola India remained silent about the first issue, the buzz was created and spread, made it even harder to maintain the situation. While in 1997, Coca Cola also had a problem in India. They had to leave India, instead of revealed their formula to government, when Janata Party led India and oblige Coca Cola, and other foreign companies, to dilute their equity stake until 40%, as written under Foreign Exchange Regulation Act (FERA). Any other crisis were happened too on other countries such as in Belgium and Atlanta. Moreover, The sales drop is an important to be focused on. With the decrease of the sales, it showed that consumers believed the allegation more than their loyalty to Coca Cola,
On August 2003, Coca Cola India faced a sales drop due to pesticides residues issue brought by a non-government organization called CSE (Center for Science and Environment). This report aims at covering the case study from the Corporate Communication 5th Edition by Paul A. Argenti ‘s book page 284-299 (Case 10-1). These papers will include the case questions with answers, to analyze the key problems that Coke India should focus and how well-prepared was them in dealing with the crisis, as well as the key constituents and communication strategies that Coke India must do to endure the problem along with the conclusion of whether they have avoided the crisis or vice versa. The conclusion of study and references will also be inserted at the end of paper.
I. What are the key problems that Gupta should focus on in the short term and in the long term?
Firstly, Gupta must understand that Coca Cola has faced several crisis in the past. On February 2003, CSE (Center for Science and Environment), an activist group in India has already brought the issue about Coca-Cola’s Kinley Bottled water which was declared containing pesticides residues, six months before they brought up the same issue about Coca Cola. Since Coca Cola India remained silent about the first issue, the buzz was created and spread, made it even harder to maintain the situation. While in 1997, Coca Cola also had a problem in India. They had to leave India, instead of revealed their formula to government, when Janata Party led India and oblige Coca Cola, and other foreign companies, to dilute their equity stake until 40%, as written under Foreign Exchange Regulation Act (FERA). Any other crisis were happened too on other countries such as in Belgium and Atlanta. Moreover, The sales drop is an important to be focused on. With the decrease of the sales, it showed that consumers believed the allegation more than their loyalty to Coca Cola,
References: PTI (2011). PepsiCo, Unilever revive Lipton Ice Tea joint venture India. Retrieve from http://articles.economictimes.indiatimes.com/2011-06-06/news/29625996_1_lipton-ice-tea-lipton-ice-tea-pepsi-lipton-international The Economist. (1999, June 17). Coca Cola-Bad for you. Retrieved from http://www.economist.com/node/322736 V. Sridhar. (2003, September 13-26) Playing with Regulations. Retrieved from Frontline magazine volume 20-issue 19. Argenti, A. P. 2009. Fifth Edition Corporate Communication. Campaign to Hold Coca cola Accountable. Retrieved from http://www.whale.to/b/coca_crimes.html