Coca Cola Case
About Coca Cola Coca Cola sells over 400 brands in over 312 countries 90 billion servings of coke are consumed each day Coca Cola is a multinational company (MNC) it operates in more than one country across the world It is bottled in 200 countries Multi national companies MNC’s also have many other characteristics : Huge Profits Well known brands Large numbers of employees Headquarters mainly in MEDC’s Why is Coca Cola located in India?
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Manufacturing the product in the country you sell it has many advantages : The cost of labour is a lot lower in India which mearns higher profits It reduces transport costs hich also mearns higher profits Legislations on working conditions, workers rights , health and safety and the environment are less strict in India .
India offer initiatives such as low tax to try and get Coca Cola to invest in their country so this also raises profits Both India and Coca Cola benefit from the investment It widens the market so there are more consumers which increases profit Weaknesses of Coca Cola in India Lack of knowledge about Indian culture in detail Lack of marketing expertise in the Indian conditions Hazardous by products and health issues ? Facing issues with water exploitation and resource exploitation all over the world Difference in management styles Indian tendency to avoid foreign products Strengths of Coca Cola in India Reputed brand Global brand recognition Bottling system Technological advancement Efficient management system Good marketing knowledge Growlng Inalan market The problems with Coca Cola Social Coca Cola has been linked to many different health problems , all of which have been thoroughly investigated yet Coca Cola aren’t willing to do anything about it. Phosphoric Acid in Coca-Cola and Diet Coke has been shown to destroy bones by contributing to osteoporosis and destroying teeth. Aspartame’s neurological side effects include blurred vision, headaches, seizures and more Over consuming can lead to death as did a 31 year old woman Natasha Harris who drank 2. 6 litres on average a day. These Health risks lead to obesity which is on the rise .
Obesity leads to other health problems such as liver failure and Diabetes Colombia – Pan-American Beverages (Panamco), Coca-Cola’s main bottler in Latin America, has been criticized for its relationship with unions. In Colombia, it has been alleged that the bottling company hired paramilitary mercenaries to assassinate union leaders. These charges have resulted in several court cases and boycott actions against The Coca-Cola Company. To date, there have been a total of 179 major human rights violations of Coca-Cola’s workers, including 9 murders. Family members of union activists have been abducted and tortured. Union members have been fired for attending union meetings. The company has pressured workers to resign their union membership and contractual rights, and fired workers who refused to do so.
Environmental In a number of districts of India, Coca Cola and its subsidiaries are accused of creating severe water shortages for the community by extracting large quantities of water for their factories, affecting both the quantity and quality of water Protests against the Coco Cola factories have taken place in a number of districts including: MehdiganJ near the holy city of Varanasi; Kala Dera, near Jaipur, RaJistan; Thane district in Maharashtra; and Sivaganga in Tamil Nadu. Ground water exploitation case in Kerala In 1999, the Hindustan Coca-Cola Beverages Private Limited, a subsidiary of the Atlanta based Coca-Cola company, established a plant in Plachimada, in the Palakkad district of Kerala, southern India. Coca Cola drew around 510,000 litres of water each day from boreholes and open wells. For every 3. 75 litres of water used by the plant, it produced one litre of product and a large amount of waste water. This is an extremely large amount of water to be wasting especially wnen clean water Is very rare In most communltles In Kerala.ews. php