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Pepsi vs Coca Cola

Pepsi vs Coca Cola

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Published by Imran Akram

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Published by: Imran Akram on Mar 28, 2011
Copyright:Attribution Non-commercial

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12/18/2012

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UNETHICAL PRACTICES BYCOCA COLA AND PEPSI
INTRODUCATION:AUTHORIZATION:
This report is being submitted to DR. Muhammad Khalili, Professor of businessethics, University of Wollongong in Dubai. The topic of the report is unethical issuesof coca cola in comparison with Pepsi.
Purpose of the Report:
In today¶s competitive world, many organizations are practicing unethical practices toincrease their productivity and profit without caring for the consequences of their actions.In order to stay ahead of their competitors many organization overlook the moral andethical aspects of their actions and their main focus remains on increasing profit andgetting competitive advantage.Furthermore, if when we consider our company coca cola, on the basis of itsinvolvement in unethical practices, coca cola has been involved in many unethicalpractices like child labor and use of pesticides in their beverages over the years. Thisreport will evaluate the unethical practices by coca cola and will suggest coca cola toimprove their behavior as for as ethical practices are concern.
PREVIEW:
This report starts with the introduction of the chosen company (coca cola) and then itgoes to several unethical practices, the company is involved in. then the company iscompared with their arch rival and competitors
Pepsi 
and then the report isconcluded with the conclusion and recommendations.
HISTORY OF COCA COLA:
 
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oca cola was established by john Pemberton. The story of coca cola is veryinteresting. John Pemberton stimulated caramel colored liquid and took it to apharmacy and added carbonated water in it, and the sample was very appreciatedby the people who tasted it. After watching the response of the people the pharmacyput the drink on sale for five cents. They named the drink as coca cola and they wereable to sell only 9 glasses of coca cola per day in early days of coca cola.(coca -cola.com,2010)In 1891 a businessmen Griggs
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andler bought coca cola rights for just $2300.
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andler was the first president of coca cola.
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andler was a very successfulbusinessman due to his innovation and marketing skills. He knew that there was avery good scope for the beverage industry in United States. He started promotingcoca cola by giving away free samples and advertising it in many different ways. By1895
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andler had built beverage plants in
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hicago, Los Angeles and Dallas. By thattime soda drinks got huge reputation in United States. .(coca -cola.com,2010)In 1899 Benjeman Thomas and Joseph whitehead bought rights from
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andler toBottle and sell coca cola.As the drink got reputation with the passage of time many new competitors came inthe market, basically copying the coca cola idea.
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oca cola responded this thread byintroducing unique bottle shapes, just to differentiate their product from thecompetitors.
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oca cola then went international by introducing its product in
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anada,France,
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uba, and some other countries.(coca-cola.com,2010)Robert Woodruff¶s father bought
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oca cola from
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andler in 1919. Woodruff isconsidered to be the main person behind the success of coca cola. He introducedcoca cola to the word by taking coca cola to the Amsterdam Olympics with the USteam. He introduced Six-pack and open top cooler, to make the drink available to thecustomer in home or outside. This was a great innovation done by Woodruff. Thisgave
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oca cola a huge opening in the market and gave the company a hugesuccess. .(coca-cola.com,2010)In 1941 when the United States entered into the World War, Woodruff introducedannounced that soldiers can buy coca cola for just 5 cents.
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oca cola was quite likedin those areas and when the war finished coca cola was already established in those
 
areas.
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oca
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ola 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 it¶s the time to diversify their product and introduce something new. This led them to the introduction of Fantaand Sprite.In 1981 Robert Goizuta took over as the chairman of 
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oca cola. He made the
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ocacola as a public company known as
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oca cola enterprises Inc.In 1990s coca cola saw a vast growth in the beverage industry. This era is known asthe emerging advertisement competition. Man other companies were trying to takecompetitive advantage over their competitors by applying new marketing strategies.
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oca cola was no different from others. They lined up with various players andteams to promote their products. They associated with football world cup, Olympicsgames, NBA, Rugby world cup and Nascar competitions. They started the famous³Always coca cola ³advertising promotion and the ³coca cola polar bear´ campaign.Many new markets like Germany and India were found by coca cola. At the moment
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oca cola has more than 500 brands and is being love all around the world. Theyhave brands like Diet coke, thumps up, Minute maid, Sprite etc. they have manyflavors like lemon cola, green tea and orange cola etc..(coca-cola.com,2010)
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oca cola collected around 28 billion dollars in revenues and their profit was around6 billion in 2007. They spent 2.2 billion dollars on advertisement in 2007. They spentaround 60 million dollars for recycling the plastic bottles in United States.(corporation-free.org,2010)
UNETHICAL PRACTICES BY COCA COLA IN RELATION WITH ETHICALTHEORIES:
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oca cola has been noticed to be involved in various unethical practices like:1:
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hild labor 2: Water wastage3: Unethical labor practices4: Harmful ingredients

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