Strategy Case: Coca-Cola India

Title of the Case: Coca-Cola India

Time Context: 2003

Perspective:

Central Issue: The Center for Science and Environment (CSE) and Non-Government Organizations
(NGOs) attacked Coca-Cola India for the reason that the latter’s products allegedly contain pesticide
residue which is highly dangerous to human health. The giant company has to establish strategies to
regain the trust of the public and its reputable image.

Statement of Objectives:

1. To regain public trust by instituting legal actions to refute health allegations against the
products.
2. To rebuild its socially responsible reputation as a corporate organization.

Areas of Consideration:

1. Lost public trust: Coca-Cola India’s customer base reduced due to health allegations against
its products.
2. Defaced reputation: Coca-Cola India’s products are accused to contain pesticide residue.

Alternative Courses of Action:

1. Filing of legal actions to refute allegations and demand indemnification thereafter.

2. Execution of product testing with the knowledge of the public.

Decision Matrix

Alternatives
Variables Filing of legal actions Execution of product testing

Risks 5 1
Cost 3 2
Benefits 5 5
Ease of Implementation 3 3
Total 16 (highest) 11

Conclusions: The main challenge that Coca-Cola India has to solve is the lost public trust, and
secondly, the defaced reputation.

Recommendations: Since Coca-Cola India is confident with its product quality and health standards,
it has to put more effort and attention on refuting its allegations by resorting to legal actions. A
product testing must also made known to the public for transparency purposes.

Action Plan: Filing of legal actions.

 Activities Objectives Divisions Persons Cost Time
Responsible
Private Prove the Research and Research Estimated 2 weeks
execution of products’ safety Development Director, Pxxxx
product to human Team Research and
testing in health. Development
coordination Department
with a legally
recognized
health
institution.
Collection of Provide Legal Legal Officer, Estimated 1 week
pertinent data evidence of Department Legal Pxxxx
for legal safety products Department
defense. in a court
session.
Actual filing of Refute health Legal Legal Officer, Estimated 1 month
legal actions. allegations Department Legal Pxxxx
against the Department
products and
demand
appropriate
indemnification.