Coca Cola Case Study

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Politics US drink manufacturer Coca-Cola is facing renewed problems in India after Kerala 's state government recently imposed a temporary ban on water extraction at its Plachimada bottling plant. The ban, which lasts until June 15, follows a recent parliamentary inquiry that found that soft drinks manufactured by Coca-Cola and Pepsi contained pesticide residues. These are the latest in a string of problems that Coca-Cola has faced and signals continued difficulties for the company, despite its move last December to create an advisory board tasked with navigating its affairs through the complex local political landscape. Coca-Cola has chalked up a turbulent history in India, only choosing to return to the country in 1993 after a somewhat unceremonious exit in 1977. That said, 2003 was a particularly difficult year for the Indian arm of Coca-Cola, with 2004 shaping up to be similarly onerous. Coca-Cola faced negative press over issues as diverse as contamination; anti-Iraq-war protests; alleged environmental degradation; and, as 2003 came to a close, an alleged sexual-harassment case involving a senior company executive and a former Miss Universe with whom the company had previously had a product-endorsement contract. The Plachimada issue has now returned to haunt the company and follows a barrage of bad press over the bottling plant. The ban has come in response to acute water shortages the district is facing, but is part of a much wider debate over water

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