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Dec 06

Mahbub Murad

A presentation on: Coke’s European scare

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Project work on: Coke’s European scare

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Table of context:

  • History of coca cola
  • Profile of coca-cola
  • Geographic Spread
  • The European scare of Coke
  •  The places where the problem occurred:
  •  The affects of the problem
  • The steps taken by Coke
  • What are the management issues in this case?
  • What could have been done/differently?
  • What were the key factors that were or should have been considered by management?

Learning Lessons

History of Coca-Cola:

  • In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton’s bookkeeper Frank Robinson.
  •  Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

 

Profile of Coca-Cola:

  • Type:                    Cola
  • Manufacturer:                The Coca-Cola Company
  • Country of origin:          United States
  • Introduced:           1886
  • Color:                            Caramel E-150d
  • FlavorCola:          Cola Cherry, Cola Vanilla, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola,  Raspberry.
  • Related products: Pepsi,RC Cola, ColaTurka, Kola Real, Inca cola, Zam Zam, cola,Mecca-cola, Virgin Cola, Parsi Cola, Qibla  Cola, Evoca cola, Afri Cola etc.

 

Geographic spread:

  • Since announcing its intention to begin distribution in Burma in June 2012, Coca-Cola has been officially available in every country in the world except Cuba and North Korea
  • In 2013, it was announced that Coca-Cola Life would be introduced in Argentina that would contain stevia and sugar.
  • Based on Interbrand’s best global brand 2011, Coca-Cola was the world’s most valuable brand.

The European scare of Coke:

In June 1999, a contamination scare spread in five European countries about coke. 

•Questions aroused about the quality and safety of Coke.        

 •Resulted in the recall of 14 million cases of Coke’s product  

             

The places where the problem occurred:

  • At first in Bornem, Belgium.
  • Next in Dunkirk, France. And
  • In Bessel, ten miles from Bornem.

 

The effects of the problem:

38 students of a school in Belgium became ill and rushed to the hospital.

 • French officials banned the sales of soft drink.

 • Coke’s profit in Europe was affected.

 • Damaged Coke’s reputation.

 

The steps taken by Coke:

At first issued an apology.

 • Issued an explanation to the public.

 • Tested the bottling plants.

 • Destroyed all of the pallets.

 • Became very careful about maintaining the quality.

 

What are the management issues in this case?

The management issues are:
  • Firstly they take the issue as lightly and consider it as an isolated problem
  • Only depends on the findings of Antwerp, Belgium plant scientist
  • Not review the all factory quality assurance process
  • Not analysis the risk of future incident.
  • Poor and improper communicate to all stakeholders.

 

What could have been done/differently?

These were the things that Coke did that time but they could have handled this situation  in a different way

  • They should have considered the situation seriously at the first stage of the incident.
  • They could issue a clear statement instead of confusing people with a vague explanation.
  •  they should have controlled the situation more tactfully.

 

What were the key factor that were or should have been considered by management?

The managers as well as the top authority of renowned brand  “Coca cola” has not considered some major issues like

  • Lack of communication.
  • Lack of making decision
  •  After finding the problem they should have solve it first.
  • Top managers should have enquire about the problem among the consumers and the employees
  • They shouldn’t have considered it as “Minor Problem”.

 

What were the key factor that were or should have been considered by management?

  • Taking some direct action
  • Thinking about consumer’s safety
  • Belated explanation to the consumers in public.
  • Lack of communication among the employees and the management level.
  • Lack of both its marketing and management strategies.

Learning Lessons:

A company should respond sincerely in adversity.           

• A company should handle every major and minor problem carefully.

 • Sometimes problems force to reexamine both companies marketing and management policy.

 

                                   Thank You

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About the author

Mahbub Murad

Mahbub Murad

I am a Lecturer of English at Mohanagar Ideal College and the admin of this site. If anyone wants to share his/her idea or get any support, he or she can contract me. - Cell: 01761519111
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