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Obstacles Faced by Coke

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Obstacles Faced by Coke

The environment in which The Coca-Cola Company operates in is extremely dynamic. The environment is difficult to predict and control due to the global nature of the operations. The Annual Report (2006) lists risks, such as worker strikes, work stoppages, and the chance a distributor falls on harsh economic times. Another reason the company’s environment is tremendously dynamic is due to the nature of their raw materials. Climate changes may impact the price of the materials they need to obtain and, in turn, affect the cost of production. The company has received plenty of criticism for its operations in India, with claims that they cause a great deal of pollution and have damaged local water supplies. The negative publicity received from its operations in India and the actions of its bottling partner in Colombia has led to boycotts of Coca-Cola products on some campuses. In some parts of the world, clean water is becoming increasingly hard to come
Coca-Cola sales in India declined 11 per cent in the third quarter of 2003 due to allegations that its soft drinks contained a high level of pesticides.
In October 2000, a shareholder lawsuit was filed against Coca-Cola with the charge “Forcing some bottlers to purchase hundreds of millions of dollars of unnecessary beverage concentrate to make its sales seem higher”. Investors claimed that Japanese bottlers were forced to take excess syrup to boost sales, a practice called channel stuffing. The method helped Coca-Cola overstate income and artificially inflate its share price, according to the complaint, filed by a union pension fund. A compromise was reached on July 7, 2008 to settle the lawsuit for a $137.5-million settlement.
In November 2000, Coca-Cola agreed to pay $192.5 million to settle a class action racial discrimination lawsuit and promised to change the way it manages, promotes

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