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Case Study
Course: Ethics and Social Responsibility

Group Members: (Group 11)

1. Shan Ali (34119)

2. Mohsin Javed (34019)
3. Syed Faisal Shah (34021)
4. Safaa Ali Kalhoro (34060)
5. Syed Muhammad Mohsin Saeed (34319)
6. Arisha Jamal Khan (33819)
7. Rana Ahsan Nisar (34391)
8. Shah Jahan (34111)
9. Samiullah (34167)
10. Atif Ali (34031)
11. Amir Hayat (33707)

Submitted To: Ma’am Huma Atta

Submission Date: May 18, 2022

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Q1: Read carefully the Coca-Cola Case Study and answer the following
questions:

1a: What strategy did Pepsi Co used to overtake sales of Coca Cola for the first time in
history?

Ans: PepsiCo first started off as being competitive by selling larger portions for the same
price as Coke. This made them competitive and gained market share. But to answer the question,
what made PepsiCo overtake Coca Cola was its strategy of diversification. As in they focused
on the larger market, on snacking foods and innovative approaches. This strategy made
them overtake the shares and dominate over Coca Cola.

1b: What was Coca-Cola’s mistake while dealing with the issue of children who got ill after
consumption of its products?

Ans: They were very late to react to the changes and deal with the problem. They thought the
problem was a minor one and didn't require their attention. They were not as hardworking
or responsive to come up with a solution for the sick children. The problem was later found that
it unprocessed batch of carbon dioxide that caused the illness. Their slow reaction showed
them as unethical behavior. This resulted in loss of sales as boycott by consumers across
Europe.

2a: Differentiate between joint merger, acquisition and venture? (Under competitive issues
—3rd line).

Ans: As business students we study these terminologies. A venture is when 2 or more

companies start a project together sharing capital, resources, machinery and risks. All
responsibilities, profit or loss are shared. Expertise shared as well as duties. As for acquisitions,
it is meant for the purchase of one company or asset. It is the takeover of one entity by another.
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Lastly, joint merger means when two or more businesses agree to function as one. It is
maintained as its own entity, separate from the other parties’ companies’ business interests.  A
merger occurs when two separate entities combine forces to create a new, joint organization. 

2b: What were the two solutions that Coca-Cola used to deal with allegations of racial
discrimination?

Ans: Coca Cola deals with it in 2 ways. Firstly, they spent 1 Billion Dollars on goods
and services from minority vendors. This was to showcase their ethical behavior and
environment or corporate culture of Coca Cola is supporting the employees. Another thing they
did was they made a council to pay up all the claims that cost them 193 Million Dollars.

3a: How did Coca-Cola justify its position against implementation of “soda tax”?

Ans: Soda tax was charged by the government to take action against the rise in obesity.
Coca Cola in response, made a campaign “Coming Together” that imposed the message of
customer to stand against the tax to impose and to highlight the use of stakeholders coming
together in unity. Reducing weight and obesity by calorie calculation, exercising daily and
reducing sugar products like Coca Cola

3b: What measures did Coca-Cola take to deal with its “channel stuffing” issue?

Ans: Coca Cola assured all allegations were dealt with and not ignored. They created a
separate department or office for stock control and data. They provided quotes, payment and
special credit reports. They also reduced the supply to international bottlers.

4a: What role was assigned to the American Academy of Family Physicians by Coca-Cola?

Ans: They were working with the American Academy of Family Physicians to educate
people on healthy lifestyle, exercising and nutritional education. Coca Cola wanted to
educate people on soft drinks.

4b: Why Coca-Cola decided to help Muslim entrepreneurs?

Ans: It was first of all the opinion of the CEO Muhtar that it builds the relationship and
bond of the US and Muslim Countries. There would be an understanding and mutual
respect between one and the other.

5. State the ways Coca-Cola went “green” during the Olympics?

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Ans: Coca Cola signed UN Caring for Climate, Reduce Emissions, new 30 percent
plant made bottle that recycles, Plant bottle, a promise of zero waste during games and
furthermore as series of use of diesel electric trucks for delivery, staff uniforms made out of
recycled bottles and limit carbon.