...Coca-Cola re-entered china in 1979, after three decades after the Equity joint venture law was issued, and was the turning point for coca cola to China’s open door policy aiming to increase sales by 15% using effective strategy, “Think Local, act local” and to exceed USA i.e., the home market of Coca-cola and become the largest market in terms of capital consumption by 2020 (manufacturer., 2014). (Geert-hofstede.com, 2014) If we explore the Chinese culture through the lens of hofstede culture model, we can have a good understanding of Chinese culture relative to the other world’s culture. Talking about the first parameter of Hofstede analysis, as we can see in the graph that Power distance in comparison with the home market of coca cola i.e, USA, the power distance is just double, that states that there is no direct communication between the bosses and employees also the employees fear to disagree with their bosses even if they find anything unjustified. Individualism is also one of the major aspect where the company has to deal with, as China has more collectivism approach that means they are interdependent to each other and give priority to group goals and achievements in exchange of loyalty. coming to the next parameter i.e, Pragmatism which means that each group or society has to maintain some relation or link with their previous experiences while dealing with the upcoming tasks or challenges, seeing the score we can determine that china has more Pragmatism than...
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...Ethical Issues in Business: Ackerman vs. Coca Cola Coca Cola was brought under scrutiny and to court by Ackerman, filing in the United States District Court in the Eastern District of New York {Ackerman v. The Coca- Cola Company and Energy Brands Inc. (d/b/a Glaceau), Case No. 09-cv-0395) (Brison, 2012). The suit compiles a class action suit from the states of New York, New Jersey, and California. Thirteen allegations are identified with three dismissed. We will be discussing the issue at hand, what the basis of the suit is and ground rules, ethical issues, how Coca Cola’s leadership conduct affected the company, and the changes needed. The history of Coca Cola dates back to the 1886 when an Atlanta pharmacist named of Dr. John S. Pemberton discovered that by mixing sweet syrup with carbonated water an eccentric taste was produced. In 1886 Coca-Cola started as a five cent drink in a neighborhood pharmacy and today has become a household name for millions. With the increasing push for health, coke, and other carbonated soft-drink manufacturers have experienced a 2.1% volume decline in one year alone. In an effort to prevent decreasing soda sales, Coca-Cola decided to manufacture Vitaminwater. The success of this product was largely because of the marketing power of the organization and the products health claims. For example they listed that this product will provide “optimal functioning of the immune system,” and that Vitaminwater “is specially formulated to provide 50% of...
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...BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are...
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...CULTURAL BARRIERS FACED BY COCA-COLA IN INDIA AND SOLUTIONS TO OVERCOME THE ISSUES CONTENTS 1. EXECUTIVE SUMMARY 3 2. TERMS OF REFERENCE 3 3. CURRENT SCENARIO 3 4. ANALYSIS OF THE SITUATION 4 4.1. STRENGTH 5 4.2. WEEKNESS 5 4.3. OPPORTUNITIES 5 4.4. THREATS 5 5. SOLUTIONS AND RECOMMENDATIONS 6 5.1. PUBLIC RELATIONS 6 5.2. ENHANCE RELATIONSHIP WITH GOVERNMENT 6 5.3. LAUNCH MARKETING CAMPAIGNS 7 5.4. LISTEN TO THE CUSTOMERS 7 5.5. MANAGING STYLE 7 5.6. PULL BACK PRICE- QUALITY TRADE –OFF PLANS 7 6. SUGGESTIONS 8 7. FORECASTS AND PREDICTIONS 9 8. CONCLUSION 9 9. REFERENCES 10 EXECUTIVE SUMMARY Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are suffering...
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...Coca Cola Co. Name MGT 521 Date Professor’s Name Coca Cola Co. “On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola® syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass” (Coca Cola Co, 2012). Coca Cola is one of the all time biggest beverage company in the industry, that went from selling a few drinks a day from a pharmacy in Atlanta, Georgia to selling billions a day all over the world. According to the Fortune 500, Coca Cola Co ranks number 59 on the 2012 list with revenues of $46,542. millions and profits of $8,572. Millions (CNN Money, 2012). SWOT Analysis The SWOT Analysis is “ a planning tool used to analyzed an organization’s strengths, weaknesses, opportunities, and threats” (Nickels, W.G, McHugh, J. M. & McHugh, S.M., 2010). Coca Cola Company is the major distributor, maker, and seller in the world, but one of the company’s biggest threat is the competidor such as Pepsi Co. that tries to stay at the same leves as Coca Cola. Strengths Some of the strengths that Coca Cola have are the well known brand, popularity, consumer faithfulness, good advertising and promotion, strong financial position and profits, and International Trades. Coca Cola has been in the Market for over 100 years and is well known all over the world. The company’s ads are popular, specially during Christmas season and Super Bowl. Coca Cola’s branding is recognized worldwide...
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...Summary: Provide a summary of the company, and the facts and issues of the case. According to Ferrell, the Coca-Cola Company is the world’s largest beverage company, and markets four of the world’s top five leading soft drinks. The company operates the largest distribution system in the world, which enables it to serve customers and businesses in more than two hundred countries. The Coca-Cola Company estimates that about 85 percent of its sales come from outside the United States (Ferrell). Former CEO Roberto Goizueta once said “Coca-Cola used to be an American company with a large international business. Now we are a large international company with a sizable American business” (Ferrell). According to Ferrell, Coca-Cola is the most-recognized trademark and brand name in the world today with a trademark value estimated to be about $25 billion. Coca-Cola’s vision for sustainable growth is fostered by being a great place to work where people are inspired to be the best they can be, by bringing the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs, by being a responsible global citizen that makes a difference, and maximizing return to share owners while being mindful of their overall responsibilities (Ferrell). While Coca-Cola’s vision statement may sound ethical, they have had several unethical issues come about in the past decade. According to Ferrell, in the early 2000’s Coca-Cola was involved in racial discrimination, misrepresenting...
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...The Coca-Cola Company is a global beverage company that is mostly known for the soda for which the company is named after. It is so famous that Coca-Cola is recognized by 94 percent of the world’s population according to Peter Hartlaub at NBC. The Coca-Cola Company is much more than just the producer of Coca-Cola; they are a “…manufacturer, distributor and marketer of non-alcoholic beverage concentrates, syrups, finished sparkling and still beverages” (Coca-Cola Swat Analyst, 2010). In addition to their Coca-Cola brand, their company’s website shows that they own or license over 500 additional brands and 3,500 beverage products like water, juices, teas, sport and energy drinks to just name a few. Some of their more famous brands include Dasani, Minute Maid, Powerade and Monster. With such major brands associated with them there is no wonder why Coca-Cola has such a dominant market presence in the industry. The Coca-Cola Company has an extensive code of conduct, which they would have to have since they operate in more than 200 countries and have a global workforce of about 139,600 employees. Some of the key elements in their code of conduct deal with what is expected from the managers, their reputation, integrity and confidentiality. Ethical compliance is important to its success because it affects the reputation of the company. Coca-Cola is a company that is known and trusted across the globe. According to the CEO Kent Muhtar, Coca-Cola is a company that has a reputation that...
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...The Coca – Cola Company struggles with Ethical Crises Coca-cola has the most valuable brand name in the world and, one of the most visible companies worldwide, has a tremendous opportunity to excel in all dimensions of business performance. However, over the last ten years, the firm has struggled to reach its financial objectives and has been associated with a number of ethical crises. Warren Buffet served as a member of the board of directors and was a strong supporter and investor of Coca-Cola but resigned from the board in 2006 after several years of frustration with Coca-Cola’s failure to overcome many challenges. Many issues were facing Doug Ivester when he took over the reins at Coca-Cola in 1997. Ivester was heralded for his ability to handle the financial flows and details of the soft drink giant. Former CEO Robert Goizueta had carefully groomed Ivester for the top position that he assumed in October 1997 after Goizueta’s untimely death. However, Ivester seemed to lack leadership in handling a series of ethical crises, causing some to doubt the “Big Red’s” reputation and its prospects for the future. For a company with a rich history of marketing prowess and financial performance, Ivester’s departure in 1999 represented a high-profile glitch on a relatively clean record in one hundred years of business. In 2000 Doug Daft, the company’s former president and chief operating officer, replaced Ivester as the new CEO. Daft’s tenure was rocky, and the company was allegedly...
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...Fall 14 Business Ethics Assignment MIDDLE EAST BOYCOTT FOR COCA-‐COLA’S PRODUCTS SOCIAL ISSUE T h e C o c a -‐ C o l a C o m p a n y Business Ethics Assignment February 10, 2014 Table of Contents 1 2 3 OVERVIEW OF THE COCA-COLA COMPANY...................................................................... 3 OVERVIEW OF THE CSR ISSUE................................................................................................ 4 STAKEHOLDERS ANALYSIS ..................................................................................................... 5 3.1 CUSTOMERS ................................................................................................................................ 5 3.2 CONSUMERS ............................................................................................................................... 5 3.3 SUPPLIERS................................................................................................................................... 6 3.4 COMPETITORS ............................................................................................................................. 6 3.5 CONCLUSION .............................................................................................................................. 6 SIMILAR CASES AND CONCLUSION ........................................
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...Running Head: The Coca-Cola Company Struggles with Ethical Crises Phyllis Walters Professor: West Ethics and Advocacy for HR Professionals HRM 522001 5/01/2011 Coca-Cola Company is the world’s largest beverage company. It is recognized as the world’s most valuable brand, with operations in more than 200 countries. Besides Coca-Cola, and Diet Coke, the company has also profited from its other brands; PowerAde, Minute Maid, and Dasani water. The company has excelled over the last ten years; however, in recent decades the company struggled to meet its financial objectives and has encountered a number of ethical crises (Ferrell, 2011). Explain why you think Coca-Cola has had one ethical issue after another to resolve over the past decade or so. The pathway of Coca-Cola was not as smooth as it appears, even with international recognition a brand as large and successful as Coca-Cola, has run into numerous difficulties and in short, has had ethical issues one after the other over the past decade. The company’s problem began at the executive level where many areas of the organization lacked quality leadership that was deficient in handling a series of ethical crises. The company leadership was not strong enough to resolve the ethical issue that it continually encountered. Many board members lost faith in the company and resigned after Coca-cola failed to conquer its challenges. According to Ferrell (2011) when Doug Ivester became CEO of Coca-Cola, he was groomed...
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...is the most important emerging issue in the design of work? Coca Cola is one the biggest soft drink company in the world. Employees find their employment to be pleasantly fresh and different I think the emerging issue is very important in the design of work and what its probably the company. In any successful company, motivation, job satisfaction, commitment to an organization are the most important factor. To make employee motivated, money is the main factor, as well as from a job design perspective these employees find their job to be stimulating, interesting, and money for services. The important emerging issue in the design of work is find honest, skilled and motivated workers. In Coca Cola company, motivation come from inside an individual rather then from any external or outside rewards. Coca cola company statement is “refresh the world and happiness and to inspire moments”. Financial encouragement help the employees be motivated to do their job sufficient. Organizational design for the coca cola organization is that the customers are always first and company take care their employees really really good. The company goal is to make customer happy and expect to have smart workers. Managers at the company have regular meetings with company workers about their problems, new ideas and how they can improve company. Its interesting and thrilling to work for Coca Cola company, that work hard and rewards you all at the same time. Coca cola company job design involves chemistry...
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...Coca Cola Co. Part III Name MGT 521 Date Professor’s Name Coca Cola Co. Part III Coca Cola history starts in Atlanta, Georgia with only one product inside a little pharmacy with sales of less than a dozen a day. 125 years later Coca Cola is all around the globe with over a billion sales a day in more than 200 countries. Coca Cola states that “because of the local nature of our business, we are in the unique position to contribute to the economic vitality of even the most remote communities around the world (Coca Cola, 2012). Economic Trends Coca Cola’s head quarter are in Atlanta and as part of many Fortune 500 companies that share this major city, Coca Cola enjoys considerable influence in Atlanta’s economy. Atlanta’s economy is a mix of many diverse sectors that includes not only Coca Cola, but also other goods produced such as: publishing, textiles, apparel, furniture, telecommunications, hardware, steel, and many more (Altius Directory, 2012). Coca Cola’s indirect economy can be impacted by the numbers the company shows every year. The company reports having more than 900 plants and over 92,000 employees illustrating diversity and different cultures all around the world. The company’s contribution generating jobs around the world inspire other companies, from different regions to promote global business. “We contribute to the economic success of each community by employing local people; paying taxes to governments; paying suppliers for goods, services...
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...The Coca-Cola Company Struggles with Ethical Crises 1. Delineate the ethical issues and dilemmas (as found in Chapter 3) the company faced. In 1999 Coca-Cola started to encounter its first taste of ethical issues and all the baggage that is associated with it. One of the first challenges that Coca-Cola was confronted with was an environmental problem in some of its foreign markets which lead to health issues. After drinking some Coca-Cola products, around thirty two children in Belgian became ill. Once Coca-Cola ascertained that problem was derived from an inferior batch of carbon dioxide. For whatever reasons, Coca-Cola assumed this wasn’t a real health hazard and procrastinated on mentioning the issue. Coca-Cola would pay a heavy price because once the media learned of the problem; they chastised them for their slow reaction. The negative news became damaging to the Coca-Cola reputation. To make matters worse for Coca-Cola, France claimed that in excess of a hundred people became ill after consuming their products and the country banned all the Coca-Cola products until they could prove that the problem was solved. In Poland, Coca-Cola introduced a new product called Bonaqua. Unfortunately the Bonaqua arrived in Poland infected with mold. In essence, Coca-Cola’s reputation became tarnished because of its slow response time and failure to address the health risk associated with each situation. Also in the spring of 1999 Coca-Cola was faced with a massive Discrimination...
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...1886 by Dr. John Pemberton, Coca-Cola has gone through many changes, some good and some bad, but in the end has become the worldwide leader in its industry (Graham, 2011). The company boasts a lineup of approximately 500 different drinks, including soft drinks, teas, coffees, juices, and waters. Soft drinks are their “cash cow” with around two billion cans and bottles sold each day (Graham, 2011). The syrup originally was designed as a "cure-all tonic" and contained coca leaves (Davis, 2004). Two years after creating the mixture, and just before he died, Dr. Pemberton sold the rights to the beverage to Asa Candler. Due to increasing demand Joseph Biedenharn started bottling Coca-Cola and bottled distribution of the soda began; within five years large scale bottling operations became available. Throughout the company's history, and even today, it has faced and overcame many challenges. Coca-Cola was, until recently, the world’s most valuable brand (Elliott, 2013), but is still the worldwide leader in the beverage industry. Through all the successes, Coca-Cola has encountered some challenges along the way. Coca-Cola has been criticized for discrimination against minority employees, poor working conditions of migrant workers, and even assassinations of trade union leaders and union-affiliated workers that provoked protests (Raman, 2007). Another emerging issue the company is facing is criticism that their products are contributing to health issues such as obesity, cardiovascular...
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...The Coca Cola water neutrality initiative offers a great perspective on what businesses are becoming aware. “Think global, act local”, improving the community and the environment are critical ethical values that every business (small or large corporations) need in order to survive in today’s dynamic marketplace. The main issue that Coca Cola was facing was the abundant misused of water. Developing a new approach in order to assess this public issue was necessary. By confronting this public issue, Coca Cola would be improving the living standards of local communities. Such new strategies will help develop a stronger brand image & perception. The Coca Cola Company, UNESCO, World Wildlife Fund, Nature conservancy, the Indian government and the local communities are the primary stakeholders that are concerned regarding this situation. The main expectation of such stakeholders consisted on following an ethical organizational structure, which meant not depleting the water within the surroundings communities and not using pesticides. In terms of which environment will be more significant, I believe that it is the geophysical environment. Such term focuses on the company’s dependency and influence on natural resources. The Coca Cola Company has a high dependency on fresh water. With that said, it is extremely important for them not releasing any pesticides or contaminated water into the nearby communities. All the stages were fully completed in this case. Identifying the issue: Coca...
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