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Final Project Unetical of Soft Drink Company.........
Final Project Unetical of Soft Drink Company.........
PROJECT TITLE:
CLASS: MBA MARKETING GROUP MEMBERS NAME WITH ROLE No. Kamlesh Pandey Rohan Naik Ajay N.Kumar Ashish Singh Nitesh Singh Chandan Kumar 011161 011179 011158 011188 011197 011148
Ganesh Sawant
Coca-cola
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners.
Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.
Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.
Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well
Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious
Work Smart
Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently
Be accountable for our actions and inactions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didnt
Be the Brand
PEPSI
Our Mission and Vision At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business.
Our Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors even as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.
Our Vision
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today.
Kala Dera is a large village outside the city of Jaipur. Agriculture is the primary source of livelihood. Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels Kala Dera is a large village outside the city of Jaipur. Agriculture is the primary source of livelihood. Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels. Kala Dera lies in an overexploited groundwater area and access to water has been difficult. Summers are particularly intense in the area, when water shortages are most acute. Moreover summer months are also when Coca-Cola reaches its peak production. Coca-Cola bottling plant in Kala Dera continues extracts the most water, making already existing water shortages even worse.
For farmers, loss of groundwater translated directly into loss of income. For many children it meant leaving schools to provide a much needed helping hand in household since the women had additional burdens
Community response
The community in Kala Dera organized itself to challenge the Coca-Cola company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant.
PREVIEW:
This report starts with the introduction of the chosen company (coca cola) and then it goes to several unethical practices, the company is involved in. then the company is compared with their arch rival and competitors Pepsi and then the report is concluded with the conclusion and recommendations.
As the drink got reputation with the passage of time many new competitors came in the market, basically copying the coca cola idea. Coca cola responded this thread by introducing unique bottle shapes, just to differentiate their product from the competitors. Coca cola then went international by introducing its product in Canada, France, Cuba, and some other countries.(coca-cola.com,2010) Robert Woodruffs father bought Coca cola from Candler in 1919. Woodruff is considered to be the main person behind the success of coca cola. He introduced coca cola to the word by taking coca cola to the Amsterdam Olympics with the US team. He introduced Six-pack and open top cooler, to make the drink available to the customer in home or outside. This was a great innovation done by Woodruff. This gave Coca cola a huge opening in the market and gave the company a huge success. .(coca-cola.com,2010) In 1941 when the United States entered into the World War, Woodruff introduced announced that soldiers can buy coca cola for just 5 cents. Coca cola was quite liked in those areas and when the war finished coca cola was already established in those areas. Coca Cola then got global; they had their plants all around the world .(coca-cola.com,2010) After a success story of 70 years coca cola decided that its the time to diversify their product and introduce something new. This led them to the introduction of Fanta and Sprite. In 1981 Robert Goizuta took over as the chairman of Coca cola. He made the Coca cola as a public company known as Coca cola enterprises Inc. In 1990s coca cola saw a vast growth in the beverage industry. This era is known as the emerging advertisement competition. Man other companies
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were trying to take competitive advantage over their competitors by applying new marketing strategies. Coca cola was no different from others. They lined up with various players and teams to promote their products. They associated with football world cup, Olympics games, NBA, Rugby world cup and Nascar competitions. They started the famous Always coca cola advertising promotion and the coca cola polar bear campaign. Many new markets like Germany and India were found by coca cola. At the moment Coca cola has more than 500 brands and is being love all around the world. They have brands like Diet coke, thumps up, Minute maid, Sprite etc. they have many flavors like lemon cola, green tea and orange cola etc..(coca-cola.com,2010) Coca cola collected around 28 billion dollars in revenues and their profit was around 6 billion in 2007. They spent 2.2 billion dollars on advertisement in 2007. They spent around 60 million dollars for recycling the plastic bottles in United States. (corporation-free.org,2010)
CHILD LABOR:
Sugar is the basic ingredient for making soft drinks. Coca cola is blamed of buying sugar from sugar farms in Latin America who use child labors for producing sugar. So indirectly coca cola is encouraging the child labor. They illegally hire the children to manufacture the sugar. Children are mainly used for planting sugarcanes in very miserable conditions in Latin America. And before cutting the sugarcane the leaves are burnt which cause tremendous smoke, which affect the children health. (Human Rights Watch, 2004). If we apply this act using ethical theory this act is against act utilitarianism theory as a large number of children get effected by by child labor and harms are more than the benefits. So it can be proved that the act of buying sugar from Latin American fields is unethical.
people complained that plant since the plant arrived there was a shortage of water and people stopped working in farms due to shortage of water. But on the other hand coca cola explained their case by saying that they didnt cause shortage of water in the state, but the shortage is due to shortage of rain. And to compensate the local people coca cola started providing drinking water in those areas which were facing the shortage. (Biz/Ed, 2010). Coca cola has also been blamed for drawing clean drinking water from wells in remote areas of Kerala. Local people suffered a lot from this as they were force to bring drinking water from other areas. The act of coca cola by drawing community water from the ground without the permission of the local residents is unethical. If we see this from the prospect of act Utilitarianism Theory, this behavior is clearly unethical. As more number of people is suffering and only few people are getting benefits. Unethical labor practices: Coca cola is accused of being involved in awful labor practices in Colombia. They are accused of being involved in violent activates against the labors. Coca cola took the advantage of poverty in Colombia, as they knew that Colombia is a poor country with most of its people living in miserable conditions without any means of income, so they built their plant in Colombia for accessing cheap labor. ( killercoke.org,2004) International labor rights and united steel workers filed a case against coca cola in a court in Miami asking for 500 million dollars as compensation. They accused coca cola for killing some major union leaders for their benefits. But this allegation could not be proved in the court and the case was discharged. (Martinez, 2006).
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This act of coca cola by being involved in horrible activates like killing and abusing the employees is wrong as it clearly defy the theories of ethics. Harmful ingredients: Coca cola is a kind of brand, which always tries to focus on its quality and customer care in their marketing crusades, but the reality is that coca cola has been accused for using highly toxic and harmful chemicals in their beverages in recent years, with caring about the health and safety of their potential customers. Centre of science and environment believes that coca cola uses such kind of ventilated water in their manufacturing process that contains very harmful pollutants and chemicals that can be the main reasons for cancer and break down of the immune system. Furthermore CSE reveals that coca cola products uses more amount of chemicals then the suitable level, which are highly harmful and are against the regulation of European Union.(Tejomoortula, 2006). While on the other hand coca cola refused to accept any of the allegations and said that they filter the water and they make sure that they use appropriate amount of chemical in their beverages which is not harmful for human health and safety. And coca cola announced that the lab test conducted by CSE is not dependable to monitor the level of chemical in beverages.(Tejomoortula, 2006). As competition is increasing day by day, everybody looks like that he is competing in a race; they are ready to go to any extreme to win that race. They wont care about other people and the Ethical norms set by the society. Same is the case with Coca Cola.
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In order to increase their profit and productivity they tried to risk many human lives by using such harmful chemical in their ingredients, which is wrong and unethical.
Now if we compare coca cola with Pepsi on the basis of ethical practices performed, Pepsi is no different than coca cola. Pepsi also have been involved in many unethical practices over the years. As mentioned above that coca cola uses 30 percent of harmful chemicals in their drinks and on the other hand Pepsi uses more amount of harmful chemical in their drinks than Coca Cola. These chemical are very harmful for human health and when it was proved in the lab, both Pepsi and coca cola rejected the labs report telling them that those reports are unreliable. As coca cola, Pepsi is also accused of affecting the local inhabitant and the local population in India. Like coca cola Pepsi is also blamed for drawing and wasting community water for their bottle plant in Kerala, severely affecting the local population. (Narayanan, 2007) as a result, it can be said that both Pepsi and coca cola have been involved in unethical practices which is affecting the people.
Coca cola has been involved in many unethical activities like drawing the community water, without the permission of local population, therefore causing many difficulties for the local population. Coca cola is also blamed for using child labor for their operation. They use the child labor for getting sugar in very miserable conditions which is against the theories of ethics. Coca cola also tries to benefit from the poverty of people and their employees in Colombia work in very miserable condition and they are also accused of killing some union leaders. This is against moral rights and is considered unethical. Coca cola is also blamed or using unhygienic and harmful chemicals in their drinks which is very harmful for the health of the people and is very unethical. And if we compare Pepsi with coca cola, pepsi is also involved in unethical practices. Pepsi has also been involved in many unethical practices like drawing the community water without the permission and wasting it, causing sever difficulty for local population. Pepsi is also accused of using harmful ingredients like chemicals in their drinks, which is affecting the health of their customers. We can recommend coca cola to consider their policies and practices and have some mercy for the people they are affecting by their unethical practices. They should not draw water illegally and above all they should not waste it , as it belongs to the local population and is affecting their lives. Coca Cola should also make sure that they dont buy sugar from those farms which use child labor in their farms as coca cola is indirectly promoting child labor which is unethical. They should also consider their ingredients. They should not play with the lives and the health of their customers by including harmful chemical. They should also consider their labor policies in countries Colombia. They
should not take advantage of their poverty and they should give those labors their proper rights.