Coke Under Fire

855 WordsMar 18, 20134 Pages
Coke Under Fire Case 4.2 Gabby M. Adamo Texas Wesleyan University Coca-Cola history began in 1886 when pharmacist, Dr. John S. Pemberton’s curiosity, led to his creation of a uniquely tasting soft drink that could be sold at soda fountains. The Coca-Cola Company is currently the world 's number one maker of soft drinks, with it’s red and white trademark making it the best-known brand symbol in the world. In spite of this concept over the last ten years, the firm has struggled to reach its financial intents and has been associated with a number of ethical crises. The various ethical crises are associated with turnovers in top management, departure of key investors, and the loss of reputation. Seemingly, the company shows no end to…show more content…
The Canadian Federal Competition Bureau agreed to undergo a costly investigation forcing Coca-Cola to repeal their proposed purchase offer. Why do you think some countries disallowed the Cadbury Schweppes acquisition whereas others did not? “Research shows countries disallowed the Cadbury Schweppes acquisition due to the corporation challenging the basis on which UK tax would levy its foreign subsidiaries in contrary to EU law.” (Ricci) It may also be said that many viewed Coca-Cola’s integrity as questionable. A number of European countries also put offers in which Coca-Cola had proposed under review knowing that their proposal could lead to negative results. Consequently, Coca-Cola scaled back on its efforts to purchase the brands in Europe. The Cadbury Schweppes proposition is not the only encounter Coca-Cola faced with competitive regulators. Douglas Draft, CEO of Coca-Cola stated that the company was committed to playing by the rules and doing what was best for the company. If Draft’s statement was true, why was the firm in trouble in so many countries? The statement regarding the company’s commitment to play by the rules contradicts the accusations in which Coca-Cola was facing, thus making the public apprehensive of Coca-Colas intentions. Coca-Cola went from existing as one of the most reputable corporations to
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