COCACOLA CASESTUDY

“Kala-Dera is a large Indian village where the agriculture is the primary source of income. Coca-Cola
started its bottling operations in Kala Dera in 2004. Each bottling plants extracts up to 1.5m liters of
clean groundwater. Within a year, Kala-Dera’s government noticed a rapid decline in groundwater
levels and access to water has been difficult. However, Coca-Cola continues extracts the most water,
making already existing water shortages even worse. 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 loads. Coca-Cola denied any wrongdoing. It claimed to
have conducted an environmental study and found the project safe to the village Company Response”.

Responding to this situation, Coca-Cola had diversified its beverage collection by adding the
competitive brands namely "Cappy” juice and “Dasani” natural water" which is estimated to raise its
share in the Indian beverages market by 5%. HCCBPL -the largest bottling supplier of Coca-Cola- has
developed bottling technology to enhance the outputs capacity by 11%. The Indian government is
trying to push the good & service tax (GST %) which is estimated to drop Coca-Cola profitability by
6%. Coca-Cola is launching two social campaigns in Asian pacific region which estimated to raise its
consumers demand by 12%.

The progressions summary of Coca-Cola India by basic divisions was Operations 38%; supply chain
56%; finance 30%; marketing 58% and HR 78%.

Based on information above, use SCAN model to assess Coca-Cola current business situation through:

(A) Analyze Coca-Cola internal and external business environment

(B) Establish the SWOT/SCAN matrix
(C) Suggest the modifications that help Coca-Cola to manage the surrounded threats and opportunities.

Good Luck,,,,,,,,Tarek M. Ali