Coca-Cola faced allegations over its business practices in several countries. In Colombia, the company and its bottlers were accused of links to violence against union members. In India, Coca-Cola faced accusations of draining water supplies and releasing untreated waste. In Mexico, concerns were raised due to its dominant market share. As multinational companies face increased consumer activism, communication and social responsibility are important when operating across regions. Coca-Cola addressed the allegations through a dedicated website, claiming investigations in Colombia found no evidence against the company.

1. Coca-Cola'sBusiness
Practices:
FacingtheHeatinaFewCountries

2. Presented to :
Dr. Tahira Afridi
Mashal Fatima (2019-1501)
Khadeja Younas (2019-1503)
Anam Arif (2019-1505)
Presented by :

3. Introduction
• Came into being on May 8, 1886
• Sweetened carbonated beverage that
is a global symbol of American tastes
• more than 2,800 products available in
more than 200 countries
• Coca-Cola is the largest beverage
manufacturer
• One of the largest corporations in the
United States

4. Background
The drink Coca-Cola was originated in 1886 by an Atlanta
pharmacist, John S. Pemberton (1831–88)
The trademark “Coca-Cola” was registered in the U.S.
Patent Office in 1893
The beverage was named Coca-Cola because at
that time it contained extracts of Coca leaves and
Kola nuts

5. Coca cola business practices
• Coca-Cola had always believed that
it conducted its business with
responsibility and ethics
• Quality and code of conduct
• The company introduced the Coca-
Cola Quality System (TCCQS) to
achieve these quality objectives
(Refer to Exhibit V for details on
TCCQS)

6. Issues faced by coca cola
Allegations faced by Coca-Cola
in Colombia, India, and Mexico
Challenges faced by multinational
companies due to the rise in consumer
activism
The importance of
communication and social
responsibility for
multinational companies
that operate across
geographic regions and
cultures
Issues faced by coca cola
Allegations faced by Coca-Cola
in Colombia, India, and Mexico
Challenges faced by multinational
companies due to the rise in consumer
activism
The importance of
communication and social
responsibility for
multinational companies
that operate across
geographic regions and
cultures

7. Colombia is the most dangerous countries in the world for
trade union activists and union leaders.
The civil war claimed
approximately three
thousand lives a year
including those of many
trade union leaders and
workers. It was reported
that in 2000, three out of
every five trade unionists,
killed in the world were
from Colombia.
In 2001, SINALTRAINAL, a
Colombian labor union,
charged that Coca-Cola
and its bottlers
Panamerican Beverages
Bebidas y Alimentos De
Uraba, and Coca-Cola
Femsa, were linked to the
violence against its union
members in Colombia.
Labor Practices in Colombia

8. Mexico was a very important market for Coca-Cola as
the country
The Mexican market for soft drinks was estimated at
US$ 6.6 billion for the year 2004.
Over the years, some of the highest profit margins for
Coca-Cola in its overseas operations came from Mexico.
Coca-Cola was the number one seller of soft drinks in
Mexico with a 70% market share. Coca-Cola's largest
bottler in Mexico was Coca-Cola Femsa (CCF) in which
Coca-Cola had a 40% stake..

9. Environment
&
Product
Issues in India
In India, Coca-Cola was accused of draining the
underground water table, of releasing
improperly treated industrial effluents, and of
selling products containing pesticide residues
above standard limits. The focal point of the
environmental accusations in India was the
Coca-Cola plant located in Kerala.

11. Boycott of Coca Cola Products
In July 2001, SINALTRAINAL, filed a lawsuit against Coca-Cola
Its Colombian bottlers at a court in Miami, Florida,
under the Alien Tort Claims Act (ATCA) of the
American Judicial System.
It accused them of being responsible for a
campaign of murder against its unionized
workers

12.  Aggressive Competition
with Pepsi
 Product diversification
 Health Concerns
 Negative Publicity
 World Largest Brand
 Brand value is $79.96
Billion.
 Brand Awareness
 Large Scale of Operation
 Global Business
 43.7% Market Share
 Strong Product Portfolio
 Strong Marketing and
Advertising
 Growing bottled
water market
 Introduce new
products
 Bring advanced
supply chain system
 Increase presence in
developing countries.
 Intense Competition
 Dependence on bottling
partners
 Direct and Indirect
Competition
 Packaging Controversary

13. Coca-Cola opened an exclusive website,
www.cokefacts.org, to address these
allegations, especially those related to
Colombia and India.
In an official statement featured on the
website, Coca-Cola claimed that the
allegations against the business practices in
Colombia were false.

14. • Two different judicial enquiries in Colombia,
one by a Colombian court and the other by
the Colombia Attorney General, had found
no evidence against Coca-Cola or its
bottlers linking them to the murders of the
union members.
• Coca-Cola also quoted a judgment in the
lawsuit at Miami, Florida, wherein the judge
had dismissed the charges against Coca-
Cola, Columbia...

15. Thank