Controversy Of Coca Cola Company In India Commerce Essay

Controversy Of Coca Cola Company In India Commerce Essay This case study states the controversy of Coca Cola Company in India because of the allegations of CSE (Centre for Science and the Environment) which stated the presence of high levels of pesticide in 12 cold drinks in and around Delhi. It analysis the controversy to how the stakeholders were affected and also recommends the different strategies that could have been used to tackle the situation in a better way. This controversy is the biggest crisis in Coca Cola India which affected the company in a big and negative way. CONTENT Introduction..3 Analysis.3-4 Stakeholders theory.5 Recommendations..6-7 Conclusion8 References9 INTRODUCTION Coca Cola Company is the worlds largest beverage company with manufacturing, distributing and marketing of non-alcoholic beverage concentrates around the world. Coca Cola brand and formula was bought by Asa Candler in 1889 who integrated the Coca Cola Company in 1892. Coca Cola offers almost 400 brands in more than 200 countries. CSE had a press release which stated some 12 cold drink 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 drink brands containing pesticide residue exceeding the global standards by 35 times (Sanjeev Gupta 2003). Since the Bureau of Indian Standards (BIS) has an unclear and indeterminate standards for pesticide residues, CSE used the European standard for maximum acceptable limits for pesticide in package water. The pesticide that has been found is harmful for the human body, which were known to cause cancer, birth defects and severe damage to the immune system, nerves and reproductive systems. All these aspects, social, environmental, ethical and political, are affected and each play an important part in the whole crisis in Coca Cola (India Kaye- Jennifer 2005). ANALYSIS Many of the scientists have been arguing that the pesticide which is a by-product of Indias agriculture industry, leaked into the groundwater which Coco Cola uses for the manufacturing of the drinks. Most of the industries in India are required to meet an acceptable amount of pesticide allowed but when tested; the level was far more than the acceptable level (Coco-cola in India. 2012). In a matter of only 2 3 weeks the sale of Coca Cola dropped by 40 percent. The President and CEO of Coca Cola India, Sanjiv Gupta denied the allegations made by CSE and also stated them to be unaccredited and misleading. They even challenged the credibility of CSE and their results and plan to make the data public. On one hand the tests done by CSE, resulted in the exceeding presence of pesticide in those 12 samples but on the other hand when the government did the tests, it found no unsafe level of pesticide which was stated by the Minster of health and family welfare (Indian Resource Center 2012). CSE disputed the testing and stated that both the results cannot be right. Later Coca Cola hiked the prices by 15 percent in India giving the reasons that the hike in prices will cover up the increase in raw material, the cost of distribution and also the effect of the false pesticide accusation which led to a decline (Brady, D 2007). This uproar also crossed across to the United States where the University of Michigan stopped the sale of Coca Cola products along with universities like New York University, Rutgers University New Jersey and Santa Clara University California which also stopped the sale of Coca Cola products. All 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 safe and they also issued a combined statement in the crisis through ISDMA (Indian Soft 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 (Indias cola crisis bubbles up 2003). Coke was under a lot of pressure by the protestors, who even attacked the shops in Delhi which sold Coca Cola products. The Indian Supreme Court also pressurized the company to reveal the secret recipe which has been kept a secret for almost 120 years, so that more testing could be done. States like Gujarat and Madhya Pradesh banned the Coca Cola products and wanted a nationwide ban (Amelia Gentleman 2012). Sales dropped by 40 percent and also the Coca Cola Bottling Company stock went down by 5 percent. This is arguably the biggest controversy in Coca Cola Company in India (Reynolds, J 2007).Coke concentrated more on arguing the allegation made by CSE of the pesticide charges instead of concentrating on getting back the support of the customers, especially in 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, quality issue, environmental issue and political is sue (Fraser P. Seitel 2010). THE STAKEHOLERS THEORY MANAGEMENT EMPLOYEES INVESTORS COCACOLA COMPANY SUPPLIERS LOCAL COMMUNITY GOVERNMENT CUTOMERS CONSUMERS The table below states the degree of importance and the power of influence of each stakeholder individually: STAKEHOLDERS DEGREE OF IMPORTANCE POWER OF INFLUENCE Employees 5 4 Investors 5 4 Suppliers 5 4 Management 5 5 Consumers 5 4 Customers 5 5 Government 5 5 Local community 4 3 RECOMMENDATIONS I hope the following recommendations and strategies will help Coca Cola rebuild its image and reputation in India to increase sale of Coca Cola products, improve the ratings and also earn back and regain the trust of the people in India. Internal recommendations: The first priority should be to re examine the testing amenities and update the water purification system throughout the plants in India since the company dedicates to offer healthy and refreshing products (Earth Talk 2012). 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: Immediately 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 independent tests have resulted in the support of the standards set by the European Economic Commission (EEC), and the officials also should take care of not admitting to the guilt but assuring that the company is dedicated and loyal to the safety of the people and always 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 would help a lot in solving 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 less 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 (Nandlal Master,  Lok Samiti  Amit Srivastava 2008).   Another 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 people 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 arranged a PR campaign in which vouchers, products were being delivered to the house and 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 profits but is a global citizen which also gives back to the people of the community. This strategy will also help build an image which will show the company as to being responsible both socially and environmentally. Coca Cola India can go green and create a green logo which can be put up and stamped in all the bottles and cans of the soft drinks products so when the people buy the product they have an assurance and a satisfaction that the product is safe. This will not only show that the product is safe for consumptions but also that it is not harmful to the environment. A regular taste testing could be organised in the urban and rural communities so that the people themselves could give feedbacks on the quality of the product and as to how to make it better. This can also include community services with the people cleaning the river, streets, ponds etc (Cokes crime in India 2004). When the improvement in the quality is made the public will automatically start working in behalf of the company to restore and promote the product while the company continually keeps on the quality of the product and the public safety as their priority. CONCLUSION It can be assured that the recommendations 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 Coca Cola India.co and its profit. The crisis spotlights on the factors and commodities like clean drinking water, which cannot be taken lightly and is a serious matter which needs to be made a priority and the quality of the product should continually be examined and updated. The transparency of Coca Cola India was also questioned. The analysis 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 (Desertplace 2009). Coca Cola India learnt a lot of things from this crisis as to making public safety their priority and not neglecting the main issues which concerns with the safety of the consumers and als o the environment.

McDonald Case study Essay

Comparing with other competitors in the catering industry, McDonald’s has developed into one the giant and most famous fast food restaurants in the world. At present time, McDonald’s is the world’s largest food service retailers offering services to customers, in the same time they are keeping opening new shops all over the world every day. However, even though their business is keeping increasing, but they also met some negative messages from consumers or other parties, such as their products is not unhealthy, food they provided will cause obesity to the childhood. From relative estimation, it shows that obesity condition and the qty of those overweight children have been increasing rapidly throughout the world. More seriously, childhood obesity rate in the country of Australia is the highest in the world. From this consideration, it is much necessary to analysis relationship between the fast food and the obesity. Here, I will take the example of McDonald’s to research in detail 2.0 Analysis of case (McDonald fast food) There are lots of people will be consumed in McDonald’s., roughly, there are more than 30 million customers will be served in McDonald’s restaurants around the world. Accordingly, McDonald also achieved great success, especially comparing with other not so famous similar competitors. But due to fast food’s unique style of business, such as: their unique food ingredients, material used and cooking method, people think fast food will be the main cause for the obesity, typically for children, because they like the taste of such fast food a lot and consumed a lot too. In Australia, according to the study, there are about 25% of children in Australia are obese or overweight nowadays, while that was just 5% in the 1960s. The study from Australia’s Child Youth Help shows that the overweight preschoolers aged four years rose from 3.2% for boys and 3.5% for girls, to 4.1% for boys and 5.8% for girls in 2002. Also according to many scholars and nutritionist’s reflection, it is not hard to know that the fast food provided will be the main reason for causing childhood obesity. Since obesity has lots of negative effect to the health of the people, and especially for childhood, comparing with normal adults, childhood will be the focus for parents or relative health institute to pay attention on. As relative research shows that fast food will generate relative higher fats etc, so becomes one of the main causes of getting child fat. For McDonald, due to their significant achievement, together with their multi-advertisement, makes people, child is more familiar with them, on the contrary, this type of condition also makes McDonald become the target of complaints of childhood obesity. 2.1 Questions 1: McDonald relationship with childhood obesity Due to the cause of the obesity, McDonald’s relationship with child and parents becomes much tight. There are lots of people complain this giant food seller, because they have provided to many fast food to children, which cause them failed to be healthfully growing. In which, their variety type advertisement also become the target for people to blame. Because advertisement will bring good feeling and positive to the consumer, especially when child get to know the advertisement, they will be much easily to be attracted by the contents, therefore, they will be much easily tend to take such advertising food. In the meantime, since they are short of the knowledge to judge and get to know more detail of the products, is it  good, or will it bring bad effect to health once eats. So in the way, McDonald’s advertisement becomes the target of people’s blaming. As far as I am concerned, it is not doubt that McDonald will hold the direct responsibility, because they are the food providers, and they are the persuader to make children like their food by advertisement. But in the meantime, children’s parents shall also have the responsibility. Normally when the child go in to the McDonald’s shop, they will accompanied by their parents or elder person, at this point, when the children do not have the knowledge and the ability to tell the negative of the fast food, their older accompanier shall point out in time, also shall provide necessary guide in selecting the food. 2.2 Questions 2. The impact of McDonald’s marketing Advertisement will bring lots of effect to consumers, and for McDonald’s marketing because most of their advertisement contents will be designed by professional, who will be able to make the contents of the advertisement will be much attracting to their consumer, and when they target children, normally, the effect of the advertisement will work. Also they will design relative program to present their products to consumers. 2.2.1 Impact of McDonald’s marketing on individual consumers It is well-known the principle of the treatment to the people in McDonald’s that people are the key to the success of McDonald’s. To individual consumers, McDonald’s celebrate the children’s birthday with them. The parties are fun, Hassie-free and make for great memories to give an impressive and unforgettable experience for each of the individual customers in it. Customers can choose from two great-value packages, each offering games, entertainment and meals, and with more than 200 committed birthday party restaurants Australia-wide, there are plenty of nearby locations to choose from. Additionally, there is online booking for the convenience of the customers, which is even easier to give the little customers a party they’ll love. 2.2.2 Impact of McDonald’s marketing on other business and society Apart from the great favorable impact of McDonald’s to the individual consumers, McDonald’s itself also shed indispensable impact on other business and society as a whole. There are 267 franchisees and 9,000 suppliers serving as business partners in McDonald’s Australia alone (McDonald’s Australia Corporate Responsibility & Sustainability Report 2010). Therefore, the great sales in McDonald’s will no doubt generate vast increase to the sales of those business partners to a large extent. 2.3 Question 3: Social marketing’s influence to children Social marketing will contribute and affect a lot to the consumer through variety type of approaches, and it can be clearly known from the example of McDonald. The great success of McDonald’s is basically because of its establishment and implication of its responsibility to do what’s right. To better carry out this responsibility, McDonald’s takes several measures as the societal marketing listing below: (1) Productive strategy of high quality products. The quality of the products is the life thread of an enterprise. From this consideration, McDonald’s places this to the first of the other four criteria. (2) Price strategy of reasonable price. To be successful in the furious competition of fast food industry, McDonald’s implicates the marketing strategy of low price and national uniform price. (3) Service strategy of clean and speedy service. The cleaning of the food in McDonald’s has closed connection with the health of the customers, especially that of the children’s. While clean and speedy service provides convenience for the necessity of busy customers. Promotional strategy oriented with ads. The promotional strategy in McDonald’s is rather simple but quite effective, mainly with the strategy of ads publicity to create sensational effects. (5) Cultural strategy of accustoming to the local culture. McDonald’s maintains its own style of diet and also adapts to the local culture to invent food of the traditional distinguishing features (Nestle & Jacobson, 2000). Through the measures above, McDonald try to widely present their products as top as possible to the consumers, also their products will be accompanied with good service which will greatly influence the consumption intendance and habit of their customer, in which children are also the most part, therefore children will naturally like to eating in McDonald. 2.4 Question 4. Opinion of advertising for kids and other solutions for childhood obesity in Australia 2.4.1 Problems of advertising for kids The advertisements of McDonald’s are always aimed at interesting more customers, especially to the little children. McDonald’s enticing their children customers to want its food by applying free toy giveaways. The ads of McDonald’s are both in TV or other publications produce various attractive pictures and images to entice the children to it from their visual to their gustatory sense. 2.4.2 Other solutions to solve childhood obesity To solve childhood obesity, several strategies are decided as followed: – More focus must be placed on the group prevention rather than the individual treatment and instruction. In order to change the diet and behavior in the family, it is critical whether to depend on the family and the society. The effect of the individual instruction such as the fat farm and summer camps will be very limit without the long term support from the society and school (Allison & Webe, 2003). – School must be the major part of the prevention of childhood obesity. – The government must make no efforts to control childhood obesity. – How to cooperate with the food industry is one of the parts of the strategies (Berg,Buechner& Parham,2003). 2.5 Trend of the fast food industry in Australia The fast food industry in Australia has achieved its great success in recent years. The social and industrial status of fast food industry has been gradually established and become more important. The scales of both the industry and the enterprises are increasingly broadening, and the quality and standard are improving evidently. In a word, the development of fast food industry is limitless in the long run. All around Australia, fast food is not simply a commodity; it is also a representation of â€Å"the West† or â€Å"American†. If it wants to help explain its attraction, McDonald’s should innovate its quality as well as the foods themselves to match the advance  demand of the society. Australian business environment was so complicated that foreigners could not hope to survive on their own, in such circumstance, only those enterprise matching with the consumer requirement will be survive. On the whole, Australian consumers treat â€Å"fast food† restaurants as leisure centers and tend to stay longer than do most Americans. In the meantime, other type food, like rice is more than a simple grain; it is imbued with symbolic meanings and is perceived as sacred by many Australians. The style of food does not fit easily into the existing Australian food system, so McDonald’s, if can operated in a more healthy way for their food by improving step by step in innovation, it can be easier to be accepted. 3.0 Conclusion In conclusion, McDonald’s is believed the giant of the fast food industry. It has achieved great success in its sales and the fame all over the world. However, together with its great success, McDonald’s also creates serious problems to the society, in specific the childhood obesity. It is estimated that the prevalence of obesity and overweight children has been increasing rapidly throughout the world. And the rates of the childhood obesity in the country of Australia are the highest in the world. Its beginning relates to the starts of a new political era, on in which local interests challenge the authoritarian rule of the Nationalist Parethy, in this way, the Golden Arches arrive just as Australia reaches takeoff as a major player in the global electronics and computer markets. To many consumers in Australia, McDonald’s meant something the leisure and easy, and people prefer it. So in order to advance their business, but in the same time, not to bring the negative side to the consumer, especially children, it is part of McDonald’s responsibility to take care of their products, trying best to find good method or innovation to catch the problem of causing serious state of childhood obesity, that is certain measures are in great need to be taken to solve or affiliate the situation. It is also believed that with better responsibility taken, and with correct marketing, trying to stick the principle of â€Å"right goods is the base of good marketing†, then the fast food industry will be successful forever. References: Allison,D.B. & Weber,M.T(2003). Treatment and prevention of obesity: what works, what doesn’t work, and what might work. Lipids Berg,F., Buechner J. & Parham E. (2003). Guidelines for childhood obesity prevention programs: promoting healthy weight in children. Nutr Educ Ebhav McDonald’s Australia Corporate Responsibility & Sustainability Report 2010 Nestle,M.& Jacobson,M.F(2000). Halting the obesity epidemic: a public health policy approach. Public Health Rep

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Women s Influence On Hip Hop - 941 Words

Following its birth, hip-hop promoted important social and political causes. Hip-Hop artists use their lyrics and videos to convey messages to their audiences. It has become common today to dismiss the impacts women have made on the hip-hop culture. Nevertheless, Men have not only used hip-hop to promote important causes but also females. One of the more prevalent hip-hop artists since its beginning is Queen Latifah. Queen Latifah uses hip hop to promote issues important to females to audiences of people who do not traditionally identify females as significant leaders. Queen Latifah began her hip hop career in 1988 - a time when females were still emerging from their traditional roles as homemakers. By that time, more women were entering the work force making a living for themselves no longer depending on men. The 1980s found a reemergence of the feminist movement where women sought equality to men. Queen Latifah released her song â€Å"Ladies First† around that same time. Lat ifah promotes the feminist movement through her lyrics, visuals, and rhetorical appeals in her hit single â€Å"Ladies First.† Queen Latifah’s â€Å"Ladies First† argues that women are strong in society through her visual and lyrical components of the song. During the beginning of the video, the video displays pictures of influential black females. These women include Harriet Tubman, Angela Davis, and others (0:00 - 0:05). These are strong influential women who impacted history. By showing these women, Latifah showsShow MoreRelatedEssay on The Exploitation and Objectification of Women in Rap1184 Words   |  5 PagesWomen have consistently been perceived as second-class citizens. Even now, in times when a social conscience is present in most individuals, in an era where an atmosphere of gender equality supposedly exists, it is blatantly apparent that the objectification and marginalization of women is still a major social issue. 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