Coca-Cola’s Water Neutrality Initiative
Question 1: What was the public issue facing the Coca-Cola Company in this case? Describe the “performance-expectations gap” found in this case- what were the stakeholders’ concerns, and how did their expectations differ from the company’s performance?
The public issue facing Coca-Cola in this case is contamination of water and the possibility of a water shortage in years to come. The performance-expectations gap occurs when the performance from a company and the expected performance of that company are progressing on two different levels leaving space between them or a “gap” as the phenomenon refers to it. (Lawrence ...view middle of the document...
I believe that the social environment is also significant to this case. Social environment includes cultural patterns, values and beliefs. This case arose with the problem of lack of water for local villagers to consume and use for irrigation. Coca-Cola placed a plant in an area in India with little regard to the local villagers and their needs for water. (Lawrence and Weber, 2014)
Lastly, I believe a significant environment for Coca-Cola to focus on is the customer environment. The costumer environment refers to the demographic factors of a company’s customers, it focuses on customers’ preferences and social values (Lawrence and Weber, 2014). In this case Coca-Cola’s use of water and pesticides in its products threatened to impact its customer base if they did not make immediate changes to their production line. Customer expectations grew as they discovered the amount of water the company used and the products in which it was not disclosing the full list of contents. Immediately Coca-Cola ran a campaign to save water and also help those water conservation companies in order to help replenish the water they use. This made the customers that consume the product happy with the outcome that they were helping the environment and fixing the concerns of their customers. (Lawrence and Weber, 2014)
Question 3: Apply the issue management life cycle process model to this case. Which stages of the process can you identify in this case?
All of the stages in the issue management process were applied in this case. Coca-Cola used the identify issue in order to identify the problem of using too much water, in which they then used the analyze issue to determine what plants are using too much water and where can they improve in their operations to make them more efficient. After analyzing the situation they then generated options on how to cut down on their water usage and how to give back to help the communities that they have taken water from. They then proceeded to take action joining in reducing usage, recycling and replenishing. Coca-Cola decided to take action by supporting and participating in various water conservation projects and would only discharge water from their plants if it is clean enough to support aquatic life. Lately after they took action they evaluated...