Controversy Of Coca Cola Company In India Commerce Essay

Controversy Of Coca gage caller-out In India Commerce EssayThis case study states the controversy of Coca dummy corporation in India be fix of the allegements of CSE (Centre for Science and the Environment) which verbalize the charge of high directs of pesticide in 12 cold drinks in and around Delhi. It analysis the controversy to how the stakeholders were bear on and as well recommends the different strategies that could affirm been used to tackle the situation in a better way. This controversy is the biggest crisis in Coca gage India which touch the company in a big and negative way.CONTENTIntroduction..3Analysis.3-4Stakeholders theory.5Recommendations..6-7Conclusion8References9 mental hospitalCoca boob Company is the worlds largest crapulence company with manufacturing, distributing and marketing of non-alcoholic beverage concentrates around the world. Coca booby brand and formula was bought by Asa Candler in 1889 who integrated the Coca booby Company in 1892. Coca grass offers almost 400 brands in more than 200 countries.CSE had a mess release which stated some 12 cold drink brands in and around Delhi contained a deadly cocktail of pesticide residue in it. The tests were conducted by the pollution Monitoring Laboratory which found 12 cold drink brands containing pesticide residue exceeding the global standards by 35 times (Sanjeev Gupta 2003). Since the Bureau of Indian Standards (BIS) has an unclear and indeterminate standards for pesticide residues, CSE used the European standard for maximum acceptable limits for pesticide in package urine. The pesticide that has been found is harmful for the human body, which were known to cause postcer, birth defects and severe damage to the immune system, nerves and reproductive systems. alone these aspects, social, environmental, ethical and political, are affected and each play an important classify in the whole crisis in Coca Cola (India Kaye- Jennifer 2005).ANALYSIS some(prenominal) of the scientists have been arguing that the pesticide which is a by-product of Indias agriculture industry, leaked into the groundwater which Coco Cola uses for the manufacturing of the drinks. Most of the industries in India are required to meet an acceptable list of pesticide allowed but when tested the level was far more than the acceptable level (Coco- dummy in India. 2012). In a matter of only 2 3 weeks the barter of Coca Cola dropped by 40 part. The President and chief executive officer of Coca Cola India, Sanjiv Gupta denied the allegations made by CSE and in addition stated them to be unaccredited and misleading. They even challenged the credibility of CSE and their results and plan to receive the data universe.On one hand the tests done by CSE, resulted in the exceeding presence of pesticide in those 12 samples but on the other hand when the presidential term did the tests, it found no un unafraid level of pesticide which was stated by the Minster of health and family w elfare (Indian Resource Center 2012). CSE disputed the scrutiny and stated that twain the results gougenot be right.Later Coca Cola hiked the prices by 15 pct in India giving the reasons that the hike in prices bequeath cover up the annex in raw material, the cost of distribution and alike the consequence of the false pesticide accusation which led to a decline (Brady, D 2007).This katzenjammer withal crossed across to the United States w present the University of Michigan stopped the sale of Coca Cola products along with universities corresponding New York University, Rutgers University New island of Jersey and Santa Clara University California which also stopped the sale of Coca Cola products. all told these universities had a 1.4 million contract with Coke.In India, Coca Cola teamed up PepsiCo on a campaign to prove that their products were safe and they also issued a combined statement in the crisis with ISDMA (Indian Soft Drinks Manufacturers Association). They also stated that the client safety was their precedency and that the round the bend drinks which are manufactured in India fulfil the international as well as the national norms and regulations (Indias cola crisis bubbles up 2003).Coke was under a lot of pressure by the protestors, who even attacked the shops in Delhi which sold Coca Cola products. The Indian irresponsible Court also pressurized the company to reveal the secret recipe which has been unbroken a secret for almost 120 years, so that more testing could be done. States like Gujarat and Madhya Pradesh banned the Coca Cola products and wanted a nationwide ban (Amelia Gentleman 2012). Sales dropped by 40 percent and also the Coca Cola Bottling Company stock went down by 5 percent. This is arguably the biggest controversy in Coca Cola Company in India (Reynolds, J 2007).Coke concentrated more on arguing the allegation made by CSE of the pesticide charges instead of concentrating on getting okay the tin of the customers, es pecially in India. This caused a backrestfire as stated by Richard.S.Lewick who specialises in crisis management. All this led to the main concern of winning back the support of the consumers, note issue, environmental issue and political issue (Fraser P. Seitel 2010).THE STAKEHOLERS possiblenessMANAGEMENTEMPLOYEESINVESTORSCOCACOLA COMPANYSUPPLIERSLOCAL COMMUNITYGOVERNMENTCUTOMERSCONSUMERSThe table down the stairs states the degree of importance and the power of influence of each stakeholder individuallySTAKEHOLDERS distributor point OF IMPORTANCEPOWER OF INFLUENCEEmployees54Investors54Suppliers54Management55Consumers54Customers55Government55Local familiarity43RECOMMENDATIONSI hope the following testimonys and strategies will armed service Coca Cola rebuild its image and reputation in India to increase sale of Coca Cola products, improve the ratings and also earn back and regain the trust of the people in India.Internal recommendationsThe first priority should be to re examin e the testing amenities and update the water purification system throughout the plants in India since the company dedicates to offer legal and refreshing products (Earth Talk 2012). The employees should also be regularly updated on how the crisis is being administered. A mandatory bi monthly meeting should be held which will brief on the lab results, procedure and the new policies. A doorbell free 800 number can be created where the customers can call and investigate the operators with any questions they might have and want cleared.External recommendationsImmediately afterward the CSE allegations and the press release of high level of pesticide in Coca Cola products, the President and CEO of Coca Cola India should have held a give-and-take conference addressing the issue and insure the national that the company is dedicated to whirl high whole tone product and that the Coca Cola independent tests have resulted in the support of the standards set by the European Economic c ounselling (EEC), and the officials also should take care of not admitting to the guilt but assuring that the company is dedicated and loyal to the safety of the people and always keeps on researching on improving all the products. The company should also have increase the transparency by qualification the lab results public on select control etc., on their website.Instead of attacking the CSE for the allegations made by them, connective forces with them would help a lot in solving the problem which would void the loss of customers in India and also around the world. Coca Cola Company could also have stated that the tests done by CSE, was done by a third party. The company could have been less offensive which would make for the public believe that the company is taking this matter honestly and they do care about the health and safety of the public (Nandlal Master,Lok SamitiAmit Srivastava 2008).Another recommendation can be a case of DENIAL i.e. Coca Cola India can merely ign ore the allegations made by CSE. Coca Cola being a powerful brand could deny the allegations, by just ignoring it because eventually after a while the people will occlude about it. This is a simple alternative but it can also backfire because the reporters are known to criticise and make an issue through media. Even though the NGOs are small, but the public trusts them more which could plough out to be a disaster for Coca Cola.Just as in the case of Belgium, a couple of years earlier, Coca Cola India could arrange a PR campaign which would help them regain customer loyalty. In the case of Belgium, the company there arranged a PR campaign in which vouchers, products were being delivered to the house and offered which worked for Belgium because it only consists of 4.4 million households which is comparatively less to that of India. So the PR campaign plan has to be well-kept to reach out to the people in India. It can also turn up and demonstrate that Coca Cola is not just a capa cious greedy company which concentrates only on profits but is a global citizen which also gives back to the people of the community. This strategy will also help build an image which will show the company as to being responsible both socially and environmentally.Coca Cola India can go green and create a green logo which can be put up and stamped in all the bottles and cans of the soft drinks products so when the people buy the product they have an assurance and a joy that the product is safe. This will not only show that the product is safe for consumptions but also that it is not harmful to the environment. A regular perceptivity testing could be organised in the urban and rural communities so that the people themselves could give feedbacks on the quality of the product and as to how to make it better. This can also include community services with the people alter the river, streets, ponds etc (Cokes crime in India 2004).When the improvement in the quality is made the public wi ll automatically start working in behalf of the company to animate and promote the product while the company continually keeps on the quality of the product and the public safety as their priority.CONCLUSIONIt can be assured that the recommendations and strategies mentioned above will prove itself to be socially and environmentally responsible which prioritizes the safety of the public in providing safe and delicious soft drinks which will eventually lead to the sustainability of Coca Cola India.co and its profit. The crisis spotlights on the factors and commodities like clean drinking water, which cannot be taken lightly and is a serious matter which needs to be made a priority and the quality of the product should continually be examined and updated. The transparency of Coca Cola India was also questioned. The analysis of the crisis regarding socio- ecological and political changes, all are covered here as in the government taking a stand, environmental measures and public safety (Desertplace 2009). Coca Cola India learnt a lot of things from this crisis as to making public safety their priority and not neglecting the main issues which concerns with the safety of the consumers and also the environment.