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A STUDY ON PROBLEMS FACING IN
Culture impact in Coca cola

A report submitted in partial fulfilment of the requirements for the
Degree of
Bachelor of Business Administration
...
PROFESSOR

BBA 5TH SEM

Department Of Management
Pratap University

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ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep
regards to Ms
...

I also take this opportunity to express a deep sense of gratitude to
Company Name: Coca-Cola Ltd
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CONTENT
I
...
Company profile
III
...
Introduction to case/problem
 Environmental issue
 Overuse of water supplies
 A pattern of arrogance
 Analyse the situation
o
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Weakness
o
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Threat
V
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Findings
VII
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Bibliography

4
5
6
7-9

10-11
12
13
14

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Case Summary
Coca – cola, the world’s largest selling soft drink company had established its strong presence in
the world since 1886
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Till 1977 Coca-Cola was the leading brand in India; later, due to
FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993
...
People all over India are challenging Coca-Cola for its abuse of
water resource
...
Due to its
waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water
and soil; because of this issue, farmers are suffering from water scarcity
...
This is because Indians are now using more soft drinks and the youngsters are more in
this category
...

This failure is mainly due to improper knowledge about the country and the national culture
...
Culture plays an
important role in consuming behaviour
...


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COMPANY PROFILE
The Coca-Cola Company is an American multinational beverage corporation and
manufacturer, retailer and marketer of nonalcoholic beverage concentrates and
syrups which is headquartered in Atlanta, Georgia The company is best known for
its flagship product Coca-Cola invented in 1886 by pharmacist John Stith
Pemberton in Columbus, Georgia The Coca-Cola formula and brand was bought in
1889 by Asa Griggs Candler(December 30, 1851 - March 12, 1929), who
incorporated The Coca-Cola Company in 1892
...
7 billion servings each day The company operates a
franchised distribution system dating from 1889 where The Coca-Cola Company
only produces syrup concentrate which is then sold to various bottlers throughout
the world who hold an exclusive territory
...


Its current chairman and chief executive is Muhtar Kent
The company produces concentrate, which is then sold to licensed Coca-Cola
bottlers throughout the world
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The bottlers then
sell, distribute and merchandise Coca-Cola to retail stores and vending machines
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The Coca-Cola Company has, on occasion, introduced other cola drinks under the
Coke brand name
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Based on Interbrand's best global brand 2011, Coca-Cola was the world's most
valuable brand
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When Candler had the earliest
records of the "Coca-Cola Company" burned in 1910, the action was
claimed to have been made during a move to new corporation offices
around this time
Coca-Cola came to India in the year 1956
...
Indian foreign exchange act was implemented in
the year 1974 during Indra Gandhi time
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Coca-Cola agreed with
investing 40% foreign equity but stated that they would still hold full
power in technical and administrative units with no local participation
allowed
...
Automatic approval was to be granted for equity investment
of up to 51% and for foreign technology agreements in high priority
industries
...

In 1999, Coca-Cola bought Parle, India’s top soft drink brand, which
bottled Thums up, Limca and Gold Spot
...
As time passed after Coke and Pepsi
entered India, people witnessed the progressive disappearance on
indigenous drinks and the demand for healthier drinks lowered as well
...

Coca-Cola is the world’s largest and first soft drink manufacturer
...
Globalization has made the whole world into one market by
reducing the trade barriers and minimizing the risk
...
This failure is mainly due to
improper knowledge about the country and the national culture
...
Culture plays an
important role in consuming behaviour
...

Present situation of the country is favourable for multinational companies to start
their business in India
...

Even though it is facing some social problem in India, Coca-Cola has got good
market in India
...
it is clear that, uncertainty avoidance in India is less and people are not so
flexible to adopt the sudden changes
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Environmental issues

The company has been criticised on a number of environmental issues
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This caused an 11 precent drop in Indian Coca-Cola sales
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Overuse of water supplies
Critics claim that the company's overuse of local water supplies in some locations
has led to severe shortages for regional farmers and the forced closure of some
plants
...
However, the company strongly opposes attempts to introduce mechanisms
such as container deposit legislation
3
...
"
When asked about the pollution of the water and land caused by the company
that has been documented by various government and independent agencies,
Coca-Cola officials deny any pollution
...
In some areas of India, the Coca-Cola Company has claimed that their
operations have increased the groundwater levels in the area!
To respond to the growing opposition to its operations in India, Coca-Cola has
recently announced ambitious rainwater harvesting programs, and company
officials make preposterous claims that somehow, their water needs will be met
by such initiatives
...
Coca-Cola,
in spite of all its rhetoric about being a sustainable user of water, had located the
plant in an area that has experienced drought for years
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The siting of a bottling plant that extracts
millions of liters of water in a drought prone area is completely irresponsible
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Coca-Cola has indiscriminately discharged its waste into
the surrounding fields, and the groundwater has been rendered unfit for human
consumption and the land has been poisoned
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India is a country where the cultural diversity and linguistic differences make
it difficult to identify how the company is going to be traded while they enter the
Indian market
...
Therefore, it is very important that they should give importance for Price,
Quality and Quantity; which means, Indian consumers have more purchasing
power for products like high level of quality with less price; therefore, it is clearly
states that the company should not entertain any price quality trade-offs in Indian
market
...

4
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STRENGTH
• Bottling system
• Technological advancement
• Efficient management system
• Good marketing knowledge
4
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WEEKNESS
• Lack of knowledge about Indian culture in detail
• Uncertainty avoidance
• Lack of marketing expertise in the Indian conditions
• Hazardous by products and health issues
• Facing issues with water exploitation and resource exploitation all over the world
4
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OPPORTUNITIES
• Huge market
• Growing Indian market
• International trade barriers has been reduced
• Youngsters’ tendency to adapt to the western culture
4
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THREATS
• Threat of substitutes
• Health consciousness of Indian consumers
• Cultural habits
• Price war
• Unstable political condition
• Uncertainty avoidance
• Difference in management styles
• Indian tendency to avoid foreign product

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SOLUTIONS

PUBLIC RELATIONS
The main and foremost solution is that to communicate openly with the key
constituents; including the public, media, employees, trade channels, state and
national government and suppliers
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An honest and open approach is always appreciated in the Indian society
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Therefore it is very important to have very close relation with the
government
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Indian
people and government always appreciate any true effort towards the development
of the country
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India is a
country, where reputation and relationships are valued to the core
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This can be done by initiating a survey or a feedback system
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If the company can make the customers feel that they are valued and
considered, then they would come back to those particular products
MANAGING STYLE
,it is important to have a management style tailored to the hosting country’s
cultural and social value
...
Also, developing a country specific
management style will help in delivering quality and on demand services to
consumers and general public; which will eventually help the company in the
future
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PULL BACK PRICE- QUALITY TRADE –OFF PLANS
Indians are those who give more importance for quality and trust
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Indians rely more upon quality of the product with
lower prices
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Even if the prices are higher, Indians may consider this product due to its quality
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The above mentioned are the important solutions and suggestions that company
should concentrate more in Indian market in order to sustaining in this competitive
market
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India is the country where people give more importance to culture
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Indians are those
give more value for trust, value and quality
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So it is more important for the company to give more importance for
the quality and their pricing strategy which need to be favourable for their business
too
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2) After globalisation coca cola came IndiaCoca-Cola should give
more importance for the culture of the people because culture is a
major element which decides the consumer behaviour and
purchasing patterns
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The main drawback which Coca-Cola is facing is it is going against environment or exploiting
environment
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Therefore farmers are facing numerous problems with their crops
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These problems are indirectly affecting the
life of the people staying near by to the manufacturing plant
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From the above given recommendation, suggestions and analysis, it is clear that the cultural and
economic conditions in India is stable and favourable for the company, but the environmental
problems are making g issues among the public and government
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