1. What was the public issue facing The Coca-Cola Company (TCCC) in this case? (
ID: 361763 • Letter: 1
Question
1. What was the public issue facing The Coca-Cola Company (TCCC) in this case? (2m) Describe the “performance-expectations gap” found in the case - what were the stakeholders’ concerns, and how did their expectations differ from the company’s performance? (2m) (sub-total: 4 marks)2. If you applied environmental intelligence analysis to this case, which of the eight environments would be most significant, and why? (8 marks) 1. What was the public issue facing The Coca-Cola Company (TCCC) in this case? (2m) Describe the “performance-expectations gap” found in the case - what were the stakeholders’ concerns, and how did their expectations differ from the company’s performance? (2m) (sub-total: 4 marks)
2. If you applied environmental intelligence analysis to this case, which of the eight environments would be most significant, and why? (8 marks)
Chapter 2 Managing Pabic nd Stokehoider Relesionship Internet Resources ww.u org/en/g/obalissues World News, Public Issues National Issues Forum United Nations, Global Issues Issue Management Council Strategic and Competitive Intellipence Professionals World Future Society Global Issues ahoo's list of issues www.wn.com/publicissues www.nifiorg www.issuemanagement.on www.scp o www.ws.org www.globalissues.or dir yahoo.com/Society and www.ch.org Council on Foreign Relations Discussion Case: Coca-Cola's Water Neutrality Initiative From approximately 2005 to the early 2010%, Coca-Cola faced an emerging issue: its cor- porate impact on water qualisy gvailability.land access round the world The Coca-Cola Company (TCCC) was the world's largest beverage company. The com- pany operated in more than 200 countries, providing 1.7 billion servings a day of carbon- ated beverages, juices and juice drinks, bottled water, and ready-to-drink coffees and teas. The company also partnered with more than 300 bottlers, independent companies that maniafactured varioas Coca-Cola products under franchise. Seventy percent of the company's revenue came from outside the United States. Water was essential to Coca-Cola's business. The company and its bottlers used around billion gallons of water worldwide every year. Of this, about two-fifths went into finished beverages, and the rest was used in the manufacturing process-for example, to wash botles clean equipment, and provide sanitation for employees Water supplies were also essential to the prodaction of many ingredients in its products, such as sugar, corn, citrus fruit, tea, and coffee. Coca-Cola's chairman and CEO put it bluntly when he commented that umless the 82 communities where the company operated had access to water. "we haven't got a business In 2003, Coca-Cola was abruptly reminded of the impact of its water ase on local com manities when the Center for Science and the Enviroement, a think tank in India, charged Coca-Cola prodacts there contained dangerous levels of pesticide residucs. Other activists in India charped that the company's botling plants used too moch water, depeiv ing local villagers of supplies for drinking and irrigation. Local officials shut down a Coca Cola botling plant in the state of Kerala, saying it was depleting groundwater, and an Indian court issued an order requiring soft-drink makers to list pesticide residues on their labels. In the United States, the India Resource Center took up the cause, organizing a grassroots campaign to convince schools and colleges to boycott Coca-Cola products Water was also emerging as a major concern to the world's leaders In the early 21st century, more than 1 billion people worldwide lacked access to safe drinking water. Water consumption was doubling every 20 years, an unsustaisable rate of growth. By 2025, one- third of the woeld's population was expected to face acute water shortages. The secretary general of the United Nations highlighted water stress as a major cause of disease, rising food prices, and recional conflicts, and called on national governments and corporations to take steps to address the issae.
Explanation / Answer
1) The public issue being faced by The Coca-Cola Company in this case was that the dangerous levels of pesticides content were found in their beverages and another issue was that the manufacturing facilities of The Coca Cola Company were using excessive use of water thus depleting the ground water resources of that area and thus depriving the local inhabitants of basic water resources.
The stakeholders concerns were that the company manufacturing facilities were using excess water rather than the requirement in the areas where they were operating rather than optimal use resulting in direct wastage .This was contrary to the philosophy of Coca Cola Company of water equality and operating at utmost efficiency.
2) If we apply environmental intelligence analysis to this case these four environments would be significant-the social environment, customer environment, legal environment and the geophysical environment. The Geophysical environment is the crucial and significant because the depletion of essential natural resource-water from the areas , depriving the natives from their right to access to water and contaminating the water resources and residue of pesticides in their products.
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