The Various Controversies Surrounding Coca-Cola India Regarding Pesticides Essay

Executive SummaryThe paper presents the case of Coca-Cola India, the company which was on the heels of promising future growth and was very well utilising its global brand name to gain market share in Indian emerging market. Its long term strategy was very much aligned with promising future growth of Indian economy and soft drink industry. But with the growth of economy and industry, the paper emphasizes certain other factors that need to be considered. Among these factors are political uncertainties, bureaucratic hurdles, various NGOs and effect on local stakeholders. One institutional void was the difference between European standards and Indian standards (finalized but yet to be implemented) which played an important role to restrict the growth of Coca-Cola in spite of its promising future projections. The paper discusses various controversies including pesticide issue that NGO raised in 2003 and with the immediate effect several states banned the sale of Coca-Cola due to strong hold of regional parties and anti globalization NGOs, even though central government did not issue any immediate enquiry. Coca-Colas image was severely damaged and sales volume was badly affected. Even after 2007, consumption of carbonates still considered to be an issue of debate. The paper presents the business dilemma that Coca-Cola India faced to regain its image and trust in Indian market. Although Coca Cola was able to boost its sale by 13 in the first quarter of 2008 yet these statistics are much lower than actual sales projections. There are certain practices and strategies which could help companies to avoid this type of situation and multinationals can continue to have long term promising future growth even after the presence of NGOs and other types of business risks in an environment of political uncertainty. In the last section, paper describes the course of action that can help other companies to avoid the type of dilemma, Coca Cola India faced. 1. Coca Cola India 1.1 Think Local Act LocalConsidering favourable...

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