Coke Case

Memorandum

To: - The Collector, Placimada, Kerala

From - The Deputy Collector

Date: - 11 August 2006

Subject: Analysis of problems arises in the Placimada region and their solutions.

This report reviews all the possible problems that the Placimada region is facing and correspondingly providing the possible solutions.

A few of the present problems faced by Coke are as follows:

1. Depletion of the water reservoirs.

2. Lack of communication between Coke and the local villagers.

3. Outsider activist's support to the Anti-Coke activists.

4. The media in Kerala.

It is recommended that the Government should work concurrently with Coke in not only resolving the issue of depletion of water reserves but also in upliftment of the affected region. A step in this direction would be to provide alternative source of water facilities like efficient irrigation facilities to draw water from the resourceful areas, providing incentives to the company if required. For bringing an upliftment it can plan to start educational programmes that can help to create a more brand awareness amongst the village locals about the company.

We have attached with it the situation analysis of Placimada village wherein the background of case, the various problems the region is facing including the major ones, the possible solutions and finally the recommendation for a subsequent plan of action.

Thanking you.

(Raghav Grover)

S.No

INDEX

PAGE

1

Title

4

2

Summary

4

3

The Executive Summary

6

4

The Case Background

7

5

The Situational Analysis

8

6

The Swot Analysis

11

7

The Assumptions

12

8

The Problems

12

9

The Solutions

15

10

Recommended Initiatives.

18

11

Conclusion

19

12

List of Figures

Fig 1.List of problems of Coke

Fig2. Situational Analysis of the

Solutions

Fig3 Recommended plan of Action

for the Government

Title:

Case Analysis of Coke.

Summary

The Coca cola is one of the fastest growing MNC's in India. It is one of the most respected companies in India. For the company, India is one of those countries where the demand has risen very rapidly. The Coke plant under the name of Hindustan Coca Cola Beverages Private Limited (HCCBPL) was commissioned on March 2000 with an initial investment of $12 million. The plant set up in Plachimada has to face a major crisis in 2004. This is due to inflicting of severe water scarcity as well as contamination of the available water in the region, as believed by the locales of Plachimada.

The plant, when set up, is supported both by the Government as well as Panchayat. At that time, it is believed that their establishment in this backward area would prove to be a boon for the socio- economic conditions in the region. So they cooperate as much as possible and provide them the annual license to start the job. This plant during the due course of time becomes a major cause of all miseries for the locales. It causes the water table to decline due to excessive use and possibly also due to the effluents from the plant. Kerala faces poor rainfall as compared to the normal rate. This has adds to the sufferings, which makes the problem very acute. People of Kerala get agitated and protest against the company. It leads to its defamation as a company with no ethics.

Coke tries to defend its position by saying that the reason for water depletion is not the Coke plant but the extremity of drought conditions. They say