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... Although the Center for Science and Environment attacked the safety of Coca Cola
India’s products, Coke was well within the Indian government’s legal ...
Coca Cola India. ... In the last section, paper describes the course of action that can
help other companies to avoid the type of dilemma, Coca Cola India faced. ...
... First Jimmy & Rosalynn Carter Partnership Award In India Friday, October 27, 2006
Award initiative brought into the country by Coca-Cola India in Association ...
... projects. CII appreciates the efforts of Coca-Cola India to help forge this
linkage between Coca-Cola Foundation and ICRISAT. According ...
... It was after the 1991 economic crisis that made it possible for Coca-Cola to
file a 100% owned company "Coca-Cola India" in the year 1993. ...
Submitted by aulona on May 6, 2007
Category: Business
Words: 1685 | Pages: 7
Views: 383
Popularity Rank: 23,341
Average Member Grade: N/A (Add a Comment / Grade this Paper)
The crisis that happened at Coca Cola was a very crucial incident. It affected issues such as brand and reputation, and the company has to take action so as not to ruin its image. Coca Cola is a company with a very strong brand name all over the world. An attack like this of the NGO can lead any company to problems. Although the Center for Science and Environment attacked the safety of Coca Cola India’s products, Coke was well within the Indian government’s legal limits for pesticide residue in beverages. The fact is that the country’s standards are weak, so the problem of Sanjiv Gupta and his team is how to rebuild trust. Furtherore, Gupta tries to find ways on how he could contribute on the creation of higher standards for food and beverage safety.
First of all, Gupta should focus on specific problems such as:
• After the NGO’s attack, sales dropped by 30-40% in only two weeks.
• The company is a valuable brand, while that value is created by the image of the company and its product. The CEO should keen on the ways that Coca Cola, which has value from its image, can manage reputational risk.
• The company should become stronger on issues of such crises, and avoid facing them ineffectively in the future.
• Clubs, restaurants, etc have stopped selling Coke products. The company should solve this problem because image gets damaged.
According to the reactions of the customers, we could easily evaluate the crisis in India as a major crisis. After the announcement that CSE made, Coca Cola attacked the credibility of the CSE and their lab results, by citing regular testing at independent laboratories proving the safety of their products. The reactions of the consumers that are making this crisis as a major are the following:
• Sales had dropped by 30-40 percent in only two weeks on the heels of a 75% five year growth trajectory and 25-30 percent year-to-year growth.
• Many clubs, retailers, restaurants, and...
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