Coca Cola Crisis Case Study Commerce Essay

coca the skinny Crisis Case Study knelling Essay coca pinhead Company is the worlds largest beverage community with manufacturing, distri fairing and trade of non-alcoholic beverage concentrates around the world. coca proposet Cola brand and formula was bought by Asa Candler in 1889 who integrated the coca plant Cola Company in 1892. coca plant Cola offers almost 400 brands in more than 200 countries.CSE had a press release which stated some 12 cold absorb 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 beverage brands containing pesticide residue exceeding the global standards by 35 times. Since the Bureau of Indian Standards (BIS) has an unclear and indeterminate standards for pesticide residues, CSE used the European standard for maximum agreeable limits for pesticide in package water. The pesticide that has been found, harmful for the human body, which were known to cause usher outcer, origin defects and severe damage to the immune system, nerves and reproductive systems.Analysis more of the scientists waste been arguing that the pesticide which is a by-product of Indias agriculture industry leaked into the groundwater which coconut tree Cola uses for the manufacturing of the drinks. Most of the industries in India argon required to meet an unobjectionable amount of pesticide allowed but when tested the level was far more than the grateful level. In a proposition of just 2 3 weeks the sale of coca Cola dropped by 40 percent. The President and CEO of coca plant Cola India, Sanjiv Gupta denied the allegations do by CSE also stated them to be unlicensed and misleading. They even challenged the credibility of CSE and their results and are planning to make the data macrocosm.On one hand the tests done by CSE, resulted in the exceeding bearing of pesticide in those 12 samples but on the other hand when the organization di d the tests, it found no un true(p) level of pesticide which was stated by the Minster of health and family welfare. CSE disputed the exam and stated that both the results hindquartersnot be right.Later coca Cola tramp steamerd the prices by 15 percent in India giving the reasons that the hike in prices willing cover up the increase in young material, the cost of distribution and also the effect of the false pesticide accusation which lead to a decline.This uproar also crossed across to the United States where the University of bread stopped the sale of coca Cola products along with universities like revolutionary York University, Rutgers University New Jersey and Santa Clara University California which also stopped the sale of coca plant Cola products. all(prenominal) 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 secure and they also rewardd a combined statement in the cri sis through ISDMA (Indian bats Drinks Manufacturers Association). They also stated that the customer safety was their priority and that the soft drinks which are manufactured in India fulfil the international as well as the national norms and regulations.Coke was under a lot of pressure by the protestors, who even attacked the shops in Delhi which sold Coca Cola products. The Indian arbitrary Court also pressurized the company to reveal the secret recipe which has been unplowed a secret for almost 120 geezerhood, so that more testing could be done. States like Gujarat and Madhya Pradesh banned the Coca Cola products and wanted a nationwide ban. Sales dropped by 40 percent and also the Coca Cola Bottling Company stock went down 5 percent. This is arguably the biggest argumentation in Coca Cola Company in India.Coke pure more on the arguing the allegation made by CSE of the pesticide charges alternatively on concentrating on getting back the support of the customers, especially i n India. This caused a backfire 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, prime(prenominal) issue, environmental issue and political issue.THE STAKEHOLER THEORYMANAGEMENTEMPLOYEESINVESTORSCOCACOLA COMPANYSUPPLIERS topical anesthetic COMMUNITYGOVERNMENTCONSUMERSCUTOMERSThe table below states the degree of importance and the cause of influence of each stakeholder individuallySTAKEHOLDERSDEGREE OF IMPORTANCEPOWER OF bewitchEmployees54Investors54Suppliers54 perplexity55Consumers54Customers55 giving medication55Local community43RecommendationsI hope the following recommendations and strategies will servicing Coca Cola make its image and reputation in India to increase sale of Coca Cola products, improve the ratings and also earn the trust of the people in India. sexual recommendationsThe first priority should be to re examine the testing amenities and update the water purificatio n system throughout the plants in India since the company dedicates to offer healthy and refreshing products. 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 toll free 800 number can be created where the customers can call and ask the operators with any questions they might have and want cleared.External recommendations outright after 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 news conference addressing the issue and assuring the public that the company is dedicated to offering high quality product and that the Coca Cola item-by-item tests have resulted in the support of the standards set by the European sparing Commission (EEC), and the officials also had to take care of not admitting to the guilt but assuring that th e company is dedicated and loyal to the safety of the people and forever and a day keeps on researching on improving all the products. The company should also have increased the transparency by making the lab results public on quality control etc., on their website.Instead of attacking the CSE for the allegations made by them, joining forces with them will help a lot in settlement the problem which would avert 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 little offensive which would make the public believe that the company is taking this matter seriously and they do care about the health and safety of the public. some other recommendation can be a case of DENIAL i.e. Coca Cola India can just ignore 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 pe ople will forget 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 turn 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 pose a PR campaign in which vouchers, products being delivered to the house were 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 tailored to reach out to the people in India. It can also show and demonstrate that Coca Cola is not just a huge greedy company which concentrates only on net but is a global citizen which also gives back to the people of the community. cultivationIt can be assured that the recommend ations 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 the Coca Cola India.co and its profit. The crisis spotlights on the factors that commodities like clean drinking water cannot be taken lightly and is a serious matter which need to be made a priority and the quality of the product should continually be examined and updated. The outline 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.