Business Overview of Coke and Term Paper

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As obesity became a hot top, outcry from parents, educators and government institutions began to criticize these arrangements. Coca-Cola has also been rebuked for its Harry Potter promotional advertising campaign, the costliest movie tie-in ever, that promotes children's literacy while simultaneously pushing Coke sales (Baue, 2002).

In 2003, the Centre for Science and Environment (CSE) said soft drinks sold by Coca-Cola and PepsiCo in India contained high levels of pesticides such as DDT and malathion (Coke, Pepsi India deny pesticides in soft drinks).

The independent environmental group said it had found no pesticides in tests of Coke and Pepsi soft drink brands sold in the United States and attributed India's high pesticide residues to the soft drink and bottled water industry's use of an enormous amount of ground water as the basic raw material. For their part, Coca-Cola and PepsiCo denied the reports and resisted efforts government efforts to display on bottles a break down of pesticides and their respective quantities.

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Here is a case where both companies are exhibiting questionable ethics, but it is a breach that may impact Coca-Cola far more than PepsiCo because of the former's emphasis on international markets and its market leadership in India.

Coca-Cola may not be any less ethical than PepsiCo, but it's certainly suffering more from unethical conduct. The reason is largely attributable to basic risk management principals; there's simply not enough diversification in its products. As a result the company is often forced to go overboard to protect its core beverage business as was the case with marketing to children and breaches in ethical conduct impact its business more so than if it had a diversified portfolio as was the Indian pesticide issue. This may well explain why Coke investors have lost more than twenty percent of their money in the past five years......

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