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Case Analysis: Coca Cola Co

5834 words - 24 pages

1. Situation Analysis
Case Background
Created in 1886 by Dr. John Pemberton, Coca-Cola has gone through many changes, some good and some bad, but in the end has become the worldwide leader in its industry (Graham, 2011). The company boasts a lineup of approximately 500 different drinks, including soft drinks, teas, coffees, juices, and waters. Soft drinks are their “cash cow” with around two billion cans and bottles sold each day (Graham, 2011). The syrup originally was designed as a "cure-all tonic" and contained coca leaves (Davis, 2004). Two years after creating the mixture, and just before he died, Dr. Pemberton sold the rights to the beverage to Asa Candler. Due to increasing demand ...view middle of the document...

05ppb of pesticides, 22.1 times the BIS standard (Huilgol, 2006). The four, extremely toxic pesticides, found were lindane, DDT, malathion, and chlorphyrifos. While the length of exposure, concentration, and nature of the carcinogenic agent will determine the effects, pesticides have the potential to cause serious health issues like congenital anomalies, Parkinson’s, and cancer (Huilgol, 2006).
Studies of the effects of soda consumption have shown there are possible detreiemenal effects with consumption. Much of the publicity falls to Coca-Cola as it is the industry leader. The burden of being the company that provides a resolution to this also falls to Coca-Cola. Over the last 40-50 years the number of overweight and obese children has increased. Estimates believe that there are 155 million children that are overweight and 30-45 million that would be considered obese worldwide (Olsen & Heitmann, 2009). There has also been a 300% increase in soda consumption since the 1970s with North American children (Frank-White & Frank, 2010). While Coca-Cola isn’t solely to blame for this, soft drink consumption has increased and studies have shown it to be a contributing factor. These drinks have also been linked to coronary artery disease, hypertension, and diabetes (President and Fellows, 2012). In a study of 91,249 women over an eight year period, it was found that those consuming one or more servings of cola per day were twice as likely to develop diabetes than those that did not (Vartanian, Schwartz, & Brownell, 2007). This is particularly alarming due to the rise in Type 2 diabetes in children (Alberti, Zimmet, Shaw, Bloomgarden, Kaufman, & Silink, 2013). In this particular study, when diet drinks repalced the sugar-sweetened drinks, the increased risk diminished, implying the regular soft drinks were to blame.
High-fructose corn syrup (HFCS) has frequently been used as a replacment for sucrose and is the primary means to sweeten Coca-Cola (Brown, Dulloo, & Montani, 2008). HFCS was introduced around 1970 and quickly gained popularity, representing over 40% of the sweeteners used by the turn of the twenty-first century (Bray, Nielsen, & Popkin, 2004). HFCS is manufactured by converting corn starch to glucose, undergoing isomerization and becoming fructose. HFCS has become a popular substitute within the artificial sweetener market as it is considerably less expensive to manufacture in comparison to real sugar (Bray, Nielsen, & Popkin, 2004). However, the use of this artificial sweetener has had a detrimental impact on the population in the Northern Hemisphere (Bray, Nielsen, & Popkin, 2004). Bray et al (2004) concluded that HFCS and the increased consumption of soft drinks have led to increases in total caloric and fructose intake and are contributors to the obesity epidemic (Bray, Nielsen, & Popkin, 2004).
Two alternatives to the sugar and high frutcose corn syrup sweetened Coca-Cola consumers often consume are similar products of the...

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