Gupta, President And Ceo Of Coca Cola India

The objective of this case is to understand the importance of crisis management. This case is intended to make the reader consider not only financial implications at the time of the event but the effects on the long term strategies of the organization. Also, the case urges participants to think about the consequences not only on the customer but on those within the organization as well.

From the analysis, the crisis arose from a series of biased or irrational individual and organizational behaviors. To avoid the catastrophic effect, each individual and organization must change their behaviors.

Zaremba (2010) points out that “crisis is any unanticipated event, incident, situation, or development that has the potential to damage or destroy your organization’s reputation”. (P.234) This definition indicates two attributes of crisis: unexpectedness and destructiveness, so effective communication is crucial to manage a crisis. The Nuance Group, a successful management consulting company, with a reputation of experienced and highly educated consultants, was facing the crisis brought by its great “reputation”. As a consultancy, it’s their profession to market themselves. A glossy brochure with specific introduction of consultants’ information, which is the highlight of the company’s reputation, is a fabulous method to market

The next stage is a stage of providing the actual change actions. Here, the company has chosen a new CEO and President, Douglas Daft, who was an opposite of Ivestor. Daft was a delegator, who wanted to turn Coca-Cola to a most desired company by employees in the world. He also saw a company as a head of the class, when speaking about diversity of workforce and business. Daft was fast in his actions. He has put Ware on the position of Vice-President for Global Public Affairs, as he was concerned about diversity issues in the company as well. They applied Ware’s suggestions about supporting the diversity from the top-executives and tying compensation increases to the achievement of diversity goals. On this stage, the U.S. District Court for the Northern District of Georgia approved the Settlement Agreement, which was used to non-hourly U.S.-based workers of the company, excluding its bottlers and called for pay-back to employees, future pay equity and equal employment opportunity. Task Force was created to provide an independent supervision of company’s compliance and was reporting on implementation of these programs. On this stage, Coca-Cola learned a lot about its past mistakes and provided dozens of changes to its policies and procedures. As it is not possible to change a whole organization in a short-time period, Coca-Cola was implementing changes during the next decade after a lawsuit and even created a document, called “Manifesto of

From the onset, it is important to note that James and his vice president for production, John Healy, could have possibly prevented the scenario from escalating into a fully blown crisis by addressing the issue early enough. In my opinion, the company's top leadership should have acted during the second stage of the scenario, i.e. after concern deepened. The company's topmost executives instead chose to adopt the 'wait and see' stance.

Coca-Cola is one of America’s most popular soda companies. In 2007, an employee Joya Williams was sentenced to 8 years in prison for trading secrets to a rival soda company. There were also two other accomplices that were charged with crimes as well. The trio was caught as the rival company wrote a letter to advise Coca-Cola what was going on.

The communication flow from this point is then one way as determined by the autocratic style and the decision can be implemented throughout the rest of the organisation. There are also many negative attributes with the style of decision making however as the subordinates of Yellow Auto have not been included in the decision making process they may not be as motivated to implement the decisions made by the top managers. This is exacerbated in the case study as this decision to increase the market share of the company is risky due to the economic situation in Turkey. Turkey had experienced a financial crisis in both 2000 and 2001 the latter being ‘particularly far reaching in terms of its impact, resulting in a major collapse of output and employment’ (Onis, 2006). Accepting this level of risk without the consult of other employees can increase uncertainty within the company and cause employees to feel segregated from the company. Furthermore the use of a small group in this decision making process has the potential of experiencing the Abilene paradox (Harvey in Teale, 2003:290) in which some top managers may not voice their concerns to avoid being discredited or appear to lose faith in the organisation. In order to identify and address these potential issues management of Yellow Auto decided to work with academics in the implementation of this decision.

All these rumors about Coca-Cola of course damaged the image of the company very much and caused many problems. Sales were going down each year. More and more people didn’t trust Coca-Cola anymore.

As it is stated in the case of Coca-Cola, “it was a marketing machine ran by bureaucrats and accountants focused more on getting the most out of what they had than of thinking of good ideas” (Harvey & Allard, 2015, p. 100). At that stage, Ivestor, who was a CEO of the company, was focusing more on the numbers and revenues than on what is really going inside of the company. He was described as “arrogant and insecure” (Harvey & Allard, 2015, p. 100) and refused to listen to his own people, working for him. Instead of solving the real problems in the company, he was focusing on keeping profits on the same level. Case gives an example of passivity of his actions by increasing the price of Coke syrup sales to bottlers to keep it. Of course, it was a mandatory action due to the “largest product recall in company history" (Harvey & Allard, 2015, p. 100) but it only accumulated a racial tension in the company, as he was indifferent to people and focused on financial results. Ivestor tried to prevent dramatic outcomes of the lawsuit more than to solve the problem and prevent it in the

One big change that needs to be made is pesticide free water in the Coca-Cola products. Indians have a lot of trouble with making sure their food and water is contaminated, and things like this aren’t going to help Coca-Cola’s business because they aren’t going to want to risk their health. Indian’s need to feel safe and trustful of Coca-Cola that their products are safe for themselves. Coca-Cola made also need to use less Indian water in their products if that problem cannot be fixed. Whatever it takes for Indian’s to understand that Coke’s products are pesticide free is what Coca-Cola needs to do. The future of Coke in India is in the hands of

1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca- Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company?

By doing some research about the company, I found many articles where Coca-Cola is involved in different scandals like; environmental issues, animal testing, business practices, health isssues, employee issues, lawsuits, etc. Such a big accusations have strong facts who supported what it is being told, which make it very difficult to not believe in those rumors. I cannot say that I believe in all rumors, but I do believe there is some kind of true inside the rumors. It is very sad to think how companies can get to the point of acting illegally and unethically to obtain market power like Coca-Cola has been doing in the past

Indra Nooyi, born on 28 October 1955, is among the inspirational leaders who have made considerable turn around in the Fortune 500 companies (Morris, 2008). She is the current Chief Executive Officer and chairperson of PepsiCo. She is among the most powerful women in the world as ranked by Fortune and Forbes. In 2014, Forbes ranked her 13 out of the 100 most powerful women in the world. In the same year, Fortune ranked her third most powerful woman. Nooyi is a chief architect of the company’s policy of performance with purpose. Under her leadership, the company does what is good for the business by concentrating on its target market (Deresky, 2014).

Coca Cola’s first main weakness is that it is highly susceptible to any kind of negative publicity. Every kind of negative publicity can hurt the brand badly. Some years ago after traces of pesticides were found in the products of Coca Cola, it had hurt the brand really hard. Sales had dipped in various corners of the world apart from the criticism that flowed. Any such thing can hurt the popularity and sales of coca cola. However, Coca cola can overcome this weakness by being more transparent regarding the ingredients it uses in the production of its brands.

Who would have known that Coca-Cola debut to the world was all because of a pharmacist? And just a touch of carbonation has truly made it a refreshing and an enjoyable carbonated soft drink. It is within “arms reach of desire” as former CEO Robert Woodruff notes. The Coca-Cola Company ultimately cares about its customers and prides itself into providing good citizenship. One of Coca-Cola’s largest international investors was India, from 1993 up until 2003, Coca-Cola invested more than US$1 billion into the country. In August of 2003, CEO of Coca-Cola India, Sanjiv Gupta came to a standstill where he had to further anticipate his next move for the company. The company faced a crisis where the Center for Science and Environment (CSE) issued a press release affirming that three samples of the 12 cold drink brands sold in and around Delhi containing pesticide residues were of Coca-Cola and PepsiCo brands.