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Importance of communication in crisis
Importance of communication in crisis
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Cocacola crisis: Communicating with the communities
Introduction
The cocacola crisis was triggered by a press release by CSE ( center for science and environment ), “Hard Truths about Soft Drinks,” on August 5, 2003. According to CSE “12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues”. The pesticides namely lindane, DDT, malathion and chlorpyrifos were found in the cold drinks. These pesticides were believed to have dire consequences on health causing cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.
Due to these finding, the sales of coke products fell by 30-40% within just two weeks. The India government decided to ban Coke
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He joined Coke in 1997 as Vice President, Marketing and played a major role in company’s success. He played a key role in developing a brand relevant for Indian consumer and tap the unexplored rural market of India. Following his marketing responsibilities, Gupta served as Head of Operations for bottling operations and then later as Deputy President. He was considered as the driving force behind recent successful launch of packaged drinking water and powder drinks. Gupta and his marketing prudence were crucial for the continued growth of the …show more content…
They should have come up with new ways in order to ensure that such situation don’t happen in future. The crisis would not have escalated in such situation. They should have come out with public announcement regarding a breach in the quality process sorry and will be doing its own testing to just verify if this information was correct. After results were found, I would then release it to the public and fix the problem. As the company was fixing the toxic problem release monthly reports on how the company is doing. This would have allowed customers to remain faithful towards Coke and maintain a belief that the company cares about the consumers and is doing everything possible to safeguard their
In June 1999 children at six schools in Belgium complained of headache, nausea, vomiting and shivering after drinking Coca-Cola 's beverages, leading to their hospitalization. Most of them reported an unusual smell and taste in the drink. The Belgian Health Ministry ordered for all Coca-Cola products to be banned from the market. Several other European countries followed suit. The entire incident left more than 240 children sick (Coca-Cola 's Belgian Crisis, 2004).
- this was considered to be a very helpful way to spread the company trade name and mark (Coca Cola) more widely around the world. That will lead to open new markets for them to sell their products, so that will reinforce their reputation in the international market.
The political environment in India proved critical in that their government was unfavorable to foreign investors. They prohibited the import of soft drinks since they felt it could be gotten anywhere. They also prohibited the foreign brand name and wanted the name Lehar Pepsi and Coca-Cola India, an indigenous name. These effects couldn’t have be anticipated prior to entering the market because the trade policies, rules and regulations of India were difficult and unpredictable. Development in the political arena would have been handled well if Coke would have evaded having to sell 49% of its equity by approving to start new bottling plants.
For the first time in ten years Coca-Cola did not fall into the top ten spots of fortune’s yearly “America’s Most Admired Companies” the company who had leadership problems and also not performing very well in our economy at the time. It did not look good for a company that was used to being on top of the charts. The year 2000 was seen to be a tough and different experience for coke, but some would say it was expected with Coca-Cola doing business unethically and having discrimination allegations. The reasons for channel stuffing was Coke had gained their Global brand recognition by being a brand that was present in so many different countries. That is how Coke was keeping their profits so huge by expanding operations and when all these things started happening to Coke is the year 2000 maybe their operation stopped expanding or slowed dramatically in other countries. Coke started shipping more products to them hoping they would sell more than they were already selling and help Coca-Cola meet goals within the company short term. This leads to distributors returning cases of Coca-Cola products they did not sell or went out of date. This in turn leads to costing Coke money in the long term due to man hours caused by
Furthermore, the issue with the pesticides in the product, which was tested by the Indian government gave proof of the pesticides in Coca-Cola’s product. Coca-Cola was shut down by the local government but the first video stated, “They used their political power to reopen the plant”. This statement is harsh but if you go by the perception of the people, Coca-Cola does donate to the World Environment Foundation. 2. Do you believe that the Indian government representatives were fully aware of the extent of Coca-Cola's need for water BEFORE they approved Coca-Cola's request to locate there?
During the tests, pesticide residue was 24 times above limits set by the Bureau of Indian Standards in 57 samples tested. In one bottle of Coca-Cola bought in Calcutta, the level of the carcinogenic pesticide Lindane exceeded the bureau’s standards by 140 times. The pesticides – Lindane, DDT, Malathion and chlorpyrifos are responsible for cancer, damage to the nervous system and reproductive system, birth defects,
Jeseph University, S. S. (2006). Evidence of The Coca Cola Company’s Human Rights Abuses and Environmental Violations brought to. Saint Joseph’s University Students for Workers’ Rights, 1, 1-78. Retrieved April 22, 2014, from Evidence of The Coca Cola Company’s Human Rights Abuses and Environmental Violations brought to
Considering individuals are becoming more health conscious it would be beneficial for Coca Cola to continue producing even more healthy products. Producing healthier drinks could potentially get their products back in schools. Researching into cheaper materials as well as environmentally friendly alternatives to plastic would be another recommendation. The main concern for Coca Cola is water supply. Without water Coca Cola would not be able to stay in business. It is recommended for Coca Cola to reduce the amount of water it uses. They have already begun a goal to improve water use. “Our 2020 goal is aggressive and builds on the 21.4% water efficiency improvement we’ve made since 2004. We expect to increasingly assess not just the quantity of the water used to grow our product ingredients, but the impact of that use as well” (Improving,
Learning from experience Coca-Cola has had some fierce competition over the years but nothing in the form of an entire health market shift like now. As well as mounting political persecution of its products like they are facing today. They must rely on past experiences to get through but likely will need to start studying the new trends to stay relevant.
“The rise of America, and the globalization of war, politics, trade, and communication during the twentieth century, are mirrored by the rise of Coca-Cola, the world’s most valuable and widely recognized brand, which is universally regarded as the embodiment of America and its values.” This quote in A History of World in 6 Glasses means that the rise of America and Coca-Cola at the same time, allowed Coca-Cola to become a recognized image for everyone across the world of America. People around the world, associated Coca-Cola with the U.S.A. as it became a grand image of freedom, equality, and democracy.
Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.
Cola Wars Environmental Analysis 1. Introduction External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development. 2. What is the difference between a.. External environmental analysis a. Macrolevel environment (PESTEL analysis) i. Political New federal nutrition guidelines identified CSD as the largest source of obesity-causing sugars in the American diet.
PepsiCo attempted to enter the Indian market through a classic strategy, by bringing jobs to the region. During the 1980’s, the per capita consumption of soft drinks in India was only three bottles per year (Saylor, 2011). In May 1985, PepsiCo joined forces with one of the leading business strategists in India, the R.P. Goenka group, to begin operations. The organization planned to import the cola concentrate and sell drinks under the Pepsi label. To make this opportunity attractive to the Indian government, PepsiCo offered to help India export juice concentrate throughout its country. The Indian government rejected this offer from PepsiCo on the grounds that they didn’t like Pepsi importing their cola concentrate, as well as the use of the foreign brand. PepsiCo dropped its assoc...
Look SDmart, Retrieved 05/16/07, from http://findarticles.com/p/articles/mi_m1365/is_1_31/ai_63974359/print. Coca-Cola: A Technological View, retrieved 5/18/07, from http://projects.olin.edu/ahs/HOT2004/PolarBears/content.htm. Coca-Cola Our Company- Around The World, retrieved 5/18/07 from http://www.coca-cola http://www.thecoca-colacompany.com/ourcompany/aroundworld.html Nutrition Business Journal. Penton Publishing. October/November 2005.
The Coca-Cola Company is an American multinational company, which is the world’s leader of the non-alcoholic beverage markets, operating in the beverage industry as manufacturer, retailler, and marketer of nonalcoholic beverage concentrates and syrups (Ravi). The company is based in Atlanta, Georgia. Since 2015, the current CEO is Muhtar Kent. The product was invented by a pharmacian, John S. Pemberton in 1886. In 1889, Asa G. Candler begins to acquire personal control of the Coca-cola formula and patents from John Pemberton and his Partner. He founded the Coca-Cola company in 1892 in Atlanta, Georgia.