Coca Cola Cultural Blunder

Coca-cola in India

Table of Content

1. Executive Summary

1. Summary of the Case Study

2. Indian Economic System

3. ideological philosophy

4. political system

5. legal and regulatory environment in India

6. demographic summary of the population

7. Coca-cola’s performance in India – a cultural snapshot

8. Poor Decisions

9. Recommendations

2. Cultural Analysis of India

1. Cultural differences between the U.S.

2. India changes Coca-cola could have made during their entrance to India

3. Recommendations

4. Bibliography

1. Case Study Summary:

Coca – cola, the world’s largest selling soft drink company started its’ business in India in the early 1970’s. Later in 1977, Coca-cola pulled out of India when it was asked to provide some sensitive information by Indian Government. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation. Villagers in Plachimada, India, made the accusation that Coke’s bottling plant are contaminating their drinking water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are suffering from water scarcity. Despite all these, Coca-cola kept on defending itself and took some steps that harmed the reputation of the company. Ultimately in 2004, a Coca-cola plant in Plachimada, India was shut down due to the finding of unsafe levels of pesticides in Coca-cola products. Coca-cola took a lot of initiatives like Global Water Challenges, Global Community-watershed Partnership Program in order to improve the drinking water conditions around the world. In 2006, India’s High Court overturned the ban imposed on the sale of products of coke in Kerala. Coca-Cola, India was asked to pay $47 million compensation for causing environmental damage at its bottling plant in Kerala.

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