Presenters:

BBA 6th Semester Waqas Younis (39)

Introduction

Introduction

Originally was founded by John Pemberton ‘s as a medical patent. Later on bought by businessman

Asa Griggs Candler who marketed the brand as soft drinks.

History

HistoryThe soft drink was first sold to the

public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. Being a bookkeeper, Frank

Robinson also had excellent penmanship. It was he who first

scripted "Coca Cola" into the flowing letters which has become the

famous logo of today.

Brand Power

Brand PowerCoca Cola Company is a wide

distributor of about 400 beverage products such as soft drinks, energy

drinks, sports drinks, juice, tea, water and coffee. The company has a wide market coverage that gives it

the opportunity to excel in the business world.

Brand Power

The company has become famous due to the production of high quality

products and services all over the world. Coca Cola Company covers

the market of over 200 countries all over the world.

Ethical Issues

Ethical Issues The company has been struggling with crises

relating to ethical issues over the last decade because of poor leadership skills

and poor management. Some of the ethical issues involved are unethical marketing

practices, racial discrimination in the organization, manipulating the annual

earnings, making false representations on market tests and breaching contracts.

McCandles (2006) reports of Wareen Buffett having resigned from the Coca

Cola board of directors due to disappointments caused by scandals. The company lacks enough leadership skills to handle these issues leading to poor

financial performance and loss of reputation.

Ethical Issues

Ethical Crisis

Ethical Crisis

The company has been involved in various scandals that include

presenting false reports on the market shares, engaging in

anticompetitive behavior, racial discrimination scandals and issues

of product contamination.

Crisis Situation

Crisis Situation

The company has been experiencing losses in finances and reputation due to

ethical issues in marketing and conducting its activities. Ethical

marketing shows how moral standards are applied in the sale and promotion of products. The company has experienced ethical issues ranging from departure of

stakeholders to low turnover of its management.

Coca Cola officials were slow in responding to the situation,

The company has been facing harsh actions from its competitors.

Some of the employees were engaging in activities against the company.

The company lost its reputation due to the failure of addressing the brutality of the situation.

The company’s former employees have sued it over racial discrimination.

Coca Cola was sued for encouraging the murder of union members in Columbia (Butts, 2003).

The company was involved in channel staffing in Japan (Channel staffing is the act of shipping extra stock to retailers and wholesalers at a high rate).

The company has also been having problems with distributors due to breach of contracts.

Ways of Coping with the Crisis

Ways of Coping with the Crisis

Coca Cola Company has tried to build back its reputation by providing good quality products and improving its relations between countries.

The company has been successful in that the products are consumed and purchased at a high demand in the world.

The company has also tried to regain the trust of the people in the counties through assurance of quality and improved productivity.

The company offers free samples to customers so as to attract the demand of their products in the market.

They offer discounts to wholesalers in order to strengthen its market share.

The company has plans to deal with racial discrimination by employing a watch dog who will be reporting on such malpractices to the chief executive officer.

The company has succeeded in fostering international relationships through ethical marketing and signing of trade contacts and agreements.

Conclusion

Conclusion Coca Cola Company has been pulled

down by the ethical issues that surround it. The financial position of the organization continues to fall due to the loss of various market shares. Stakeholders and key employees have lost hope in the company due to the frustrations that they have experienced over the years.

The company has however established its reputation by provision of quality goods and services.

They have been engaged in aggressive promotional activities to maintain existing consumers and attract new customers.

The company is engaged in social responsibility by creating awareness on the HIV/AIDS.

The company has managed to maintain its reputation because consumers still consider to as the most respected company and producer of quality beverages globally.

We can conclude that the Coca Cola Company has managed to deal with the ethical issues that surround it and it has managed to capture and maintain diverse markets in the world.

Questions & Answers