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Coca-Cola and the Issue of Water Shortages in Communities Across India - Assignment Example

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In this assignment, the writer will analyze the crisis that was faced by the giant multi-national company Coca-Cola, where it was accused of the shortage of water in various Indian communities. The writer talks about the strategies that were used by Coca-Cola to combat this crisis situation.
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Coca-Cola and the Issue of Water Shortages in Communities Across India
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Download file to see previous pages Coca-Cola was established by John Pemberton in 1886 in Atlanta, Georgia. It is ranked #1 brand in the world by the Interbrand’s Global Brand Scorecard for 2003, which estimated its brand value at $70.45 billion. Coca-Cola is the world’s most valuable brand and that value is largely driven by the image of the company and its products. In India, Coca-Cola was the leading soft drink brand until 1977 when it left, facing issues with the government. It returned to India in 1993 after 16 years.
It invested more than US$1 billion in India from 1993 to 2003, making it one of the country’s top international investors. It employs more than 7,000 locals, has 27 bottling operations, 17 franchisee-owned bottling operations and 29 contract-packers for manufacturing a number of products and about 700,000 retail outlets sell Coca-Cola(About Us, n.d.).
In Kaladera city of India, during 2003, villagers living near one of the largest Coca-Cola plants complained that their water supplies are drying up because of the massive quantities of water required by the Coca-Cola plant(Coca-Colas toxic India fertilizer, 2003).
The plant, according to an estimate, was using 1m liters of water a day from the underground aquifer, for keeping the wells topped up (Coca-Cola in India accused of leaving farms parched and land poisoned 2003). The village council, which earlier willingly granted the license to the company, demanded the closure of the plant due to its deteriorating effect on the community.
Not only Coca-Cola was accused of the shortage of water due to massive pulling out, but it was also blamed for indiscriminately discharging wastewater in the fields around its plant and rivers.   ...Download file to see next pagesRead More
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