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Assignment: Case Analysis and Discussion (7) - Essay Example

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This paper studies the case study about Coca-Cola, and provides answers to extremely important questions relating to Coca-Cola’s international existence. This paper also looks at the allegations of the company and comments on their weight, and whether these would affect…
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Assignment: Case Analysis and Discussion (7)
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Download file to see previous pages This led to many US universities boycotting and banning Coke products from their campuses. The nature of allegations on the company was Coca-Cola’s business practices in Mexico, India, and Columbia. Firstly, in Mexico, Coca-Cola held a huge market share of about 70%. Coca-Cola derived a good portion of its revenue from Mexico, since Mexico was the world’s second largest drink market after the U.S. At that time, though, a rival firm Big Cola, was supplying soft drink at a cheaper price than Coca-Cola. Since Mexico’s population was poor, Big Cola was really popular amongst the poor and was growing rapidly. The allegation on Coca-Cola was that the company threatened retailers of sanctions that would stop supplies as well as refrigerators being taken away. Furthermore, the company also tried to bribe the government officials to grant them permission to set up bottling plants in Mexico. This practice would have saved labor costs, and the company could have sold their products at a cheaper price to remain in competition with Pepsi and Big Cola.
In Colombia, the company was accused of violating human and labor rights by SINALTRAINAL, a Colombian trade union. According to SINALTRAINAL, Coca-Cola threatened union leaders and members to resign from the union, and also hired groups to kidnap and torture union leaders. Eight union leaders were also killed. The main reason for doing this was to make the permanent workers resign, so that the new contract workers can work at lower wages. This would save a lot of money to the company and hence, higher profits. Furthermore, SINALTRAINAL reported that Coca-Cola’s senior managers in Colombia, even after receiving several complaints did not do anything within their power to investigate the situation. This was seen as ignorance to human and labor rights from Coca-Cola.
Coca-Cola was accused in India of selling products that contained pesticides residues which were thirty six ...Download file to see next pagesRead More
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