Coca-Cola’s Water Neutrality Initiative

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Question 1: Public Issues, Stakeholders and Expectations * Public issue: Corporate impact on water quality, availability and access around the world * Water is pertinent to Coca Cola because they use 80 billion gallons of water worldwide each year. 2/5 went into finished beverages and the rest went into the manufacturing process: to wash bottles, clean equipment, and provide sanitation for employees. However, Coca-Cola’s extensive use of water adversely impacted the surrounding communities * The Center for Science and the Environment, a think tank in India, charged that Coca Cola products there contained dangerous levels of pesticide residues. * Activists in India charged that the company’s bottling plants used too much water depriving local villagers of supplies for drinking and irrigation * Primary Stakeholders: Coca-Cola, local villagers, non-governmental organizations and India’s government * Expectations v. Performance: Stakeholders expected Coca Cola to use their resources responsibly and to protect consumers from harmful contaminants however, the emergence of pesticide residue in the product along with the depletion of ground water from local villages created a performance-expectation gap, that left Coca Cola fighting to save it’s image Question 2: Strategic Radar model * When applying the strategic radar screens model to this case, the geophysical environment plays a factor here because the company is faced with concerns of how they are using the Earth’s natural resources inefficiently * Another stage that plays a role is the technological environment because there is a need to implement a new system that could save water * The social environment applies in this case because of the concern surrounding the water access was shared among people in the societies where Coca-Cola conducts business * The customer

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