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Case Analysis: Coca-Cola Co

In: Business and Management

Submitted By ja141762
Words 5834
Pages 24
1. Situation Analysis
Case Background
Created in 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 diseases, diabetes, carcinogens, and numerous other reported problems (Chang & Rodolfo, 2009; Huilgol, 2006; Imai et al, 2010). Coca-Cola contains many different chemical compounds and is sold without labeling all of the contents (Huilgol, 2006; Imai et al, 2010). A report by CSE found a high pesticide content in Coca-Cola in India. The

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