Coca Cola Employee Loyalty Case Study

The decision of the jury was based on the principles of comparative negligence. McDonald's was found guilty and responsible 80% for the coffee burn. Liebeck was found responsible 20% for the occurrence of the incident. Though there was a warning on the coffee cup, the jury decided that the warning was not large enough nor sufficient. They awarded Liebeck $200,000 in compensatory damages, which was reduced to $160,000, and an additional $2.7 million in punitive damages, which was reduced to $480,000. The decision was appealed by both McDonald’s and Liebeck, and both parties settled out of court for an undisclosed amount less than $600,000.

On February 27, 1992, Stella Liebeck, aged 79 at the time, bought a coffee from the drive-thru of a McDonald’s in Albuquerque, New Mexico. She spilled the coffee on herself and received third-degree (full thickness) burns. She sued McDonald’s and was originally awarded almost $3 million in damages. This case is a perfect example of frivolous litigation and is one of the reasons some Americans think there needs to be civil justice reform.

Such things as market leadership, joint ventures, managerial expertise, inventive business solutions, and flexible organizational structure have giving Coca Cola a competitive advantage (Coca-Cola FEMSA, 2010). Coca Cola also provide managerial expertise training programs to improve their abilities, The inquiries for both companies on sugar content in the products have increased. Also there are negative doubts about their recipe of sugar content effecting weight control, pop culture, and society. Over the course of the years Coca Cola have adjusted their recipe because they are using crafty marketing and distributing smaller

Coca-Cola is one of America’s most popular soda companies. In 2007, an employee Joya Williams was sentenced to 8 years in prison for trading secrets to a rival soda company. There were also two other accomplices that were charged with crimes as well. The trio was caught as the rival company wrote a letter to advise Coca-Cola what was going on.

The “Killer Coke” case revolves around to brutal murders of union leaders in a bottling plant in Colombia and the corporate responsibility of the Coca-Cola Company. The Killer Coke movement alleges that the Coca-Cola Company directed or was implicitly involved in the killings to ensure that unions were broken in the Colombian plants. The obvious legal ramifications are that contract killings took place at the plant. The more subtle ethical issue is even if Coca-Cola didn’t explicitly order the killings, did they knowingly ignore the grave working conditions that faced the people working in their plant. Ray Roger’s is leads a movement against Coca-Cola, calling for a ban of all

Coca Cola has differentiated its product and services that are valued by its customer. Its product are based on customer’s preferences, with affordable price and made easily accessible.

The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed

Coca Cola had been accused of unethical practices in some of its locations overseas, in particular its Colombian location. Coca Cola had seen initial success, but had no idea what was about to hit them. The country had a past of violent uprisings, as the government has been relatively unstable in the past few generations. As such, there is a heightened political nature of many of the citizens there, who often fight hard for workers rights. The company was accused of showing "complicity in the murders of union leaders in Colombia" (Lane, 2012, 37-1). In Urabรก, a particularly violent and politically active city in Colombia, Isidro Gil, a major union leader, was reportedly apprehended and murdered on location at one of the company's bottling plants in Colombia. Union leaders had been bringing allegations of Coca Cola breaking the Alien Tort Claims Act and the Torture Victims Protection Act. Many of these efforts were in the midst of a major anti-globalization trend that was occurring in Colombia.

Coca Cola’s first main weakness is that it is highly susceptible to any kind of negative publicity. Every kind of negative publicity can hurt the brand badly. Some years ago after traces of pesticides were found in the products of Coca Cola, it had hurt the brand really hard. Sales had dipped in various corners of the world apart from the criticism that flowed. Any such thing can hurt the popularity and sales of coca cola. However, Coca cola can overcome this weakness by being more transparent regarding the ingredients it uses in the production of its brands.

It has taken much more than simply the brand and product to grow Coca-Cola in the number one leader in the soft drink market. Over the past 100 plus years, Coca-Cola has built a huge network of distribution and manufacturing networks. These collaborations that are superior to all others and all types of relationships are a distinctive competency for Coca-Cola. The way that they organize and plan their contracts has proven to be extremely successful and continues to keep Coca-Cola at the top of the market. They have been able to build relationships with suppliers, buyers, bottlers, manufactures, retailers and consumers that are strengthened by the degree of loyalty from both sides of these relationships. They continue to manage their company

The Coca-Cola Company is a strong multinational company with a well-established trademark that has done well since 1886. The company has improved its marketing strategies to satisfy customers in a better way. Since its establishment, it has effectively differentiated itself by being considered as the largest manufacturer, marketer, and distributor of non-alcoholic syrups

“A Coke is a Coke, and no amount of money can get you a better Coke than the one the bum on the corner is drinking. All the Cokes are the same, and all the Cokes are good. Liz Taylor knows it, the President knows it, the bum knows it, and you know it."(Andy Warhol, 1975) Regardless of its corporate reputation, the organizational performance and its social responsibility of Coca-Cola makes it loved around the world. Ever since its creation in 1886 Coca-Cola has been a household brand known globally for generations of families. I have to mention, of all the cases researched this is my least favorite not only because of my childhood love for the product because the ethical issues in one way or another always manage to resolve themselves not before further tainting the reputation Coke worked so hard to obtain. Most times, whether an organization is innocent of an unethical act, it becomes secondary to the suspicion of the original act. Almost as if the court of public opinion has the power to ruin the reputation of an organization based on an unfounded accusation. In spite of my loyalty after having ready the case, I do believe Coca-Cola to be flawed. The contamination scare in Belgium is a great example of a public relations nightmare. The slightest hint of impurity should have pushed Coca Cola into crisis management mode but they were slow to react, citing it a minor issue (Ferrell, Fraedrich, & Ferrell, (2011). It was not until local officials

All these rumors about Coca-Cola of course damaged the image of the company very much and caused many problems. Sales were going down each year. More and more people didn’t trust Coca-Cola anymore.

Coca-Cola is a big recognized brand that produces many products than just soda drinks. With all the money and brand recognition the company possesses, there are possibilities for the company to past the scandals and keep up in the business market, like we have discovered the company has invested money to cover illicit activities. However, it is very important for the company to act ethically and respond to the scandals that the company has been accused. If Coca-Cola responds morally correct, it will shows the customers that the company cares about social responsibility, but if the company does not act fast and ethically, it exists the possibilities that the company’s sales keep declining.

The term “Brand Loyalty” also called as “Customer Loyalty” has been in the business industry since a very long time as a model to be used in conducting business. But it wasn’t until the mid to late 1900’s that the term was actually given its due importance by making it a vital part of advertising and marketing. The concept of marketing evolved substantially from being focused on sales of a product to having Customer satisfaction to be its focal point. Studies further revealed that there was a positive correlation between customer satisfaction and Brand Loyalty.