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Report on Case Analysis of Coca cola

Added on - 28 Dec 2019

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Coca cola is the company which operates at the global level and provide different kindsbeverages as well as cold drinks. Among all its products there are Coca cola is the product oritem which highly consumed by the customers worldwide but due to using unhygienicingredients level of consumption of the buyers reduces. Due to this kind of key and basic reasonhealth of the individuals become down and affected up to higher extent. Apart from this, due tousing such kind of ingredients it makes their eyes and throat burn. Consequent to this, Coca colareduced the production because of national forces and this leads to shortage of bad andunhygienic condiment on the global level. The production was highly reduced and comes at thecease level but the demand of coca cola in public was same. And, this leads in decrement offinancial status of company (Faridimehr and Niaki, 2012). But, later this problem was solved byusing highly nutritional as well as hygienic ingredients in order to repair the reputation ofcompany. The company's legal battle with the city was settled and to improve the placement andeffectiveness of odour control filters, plant operators began working with air quality regulators.Also, to make the public of city satisfy that they had eradicated this issue, The Coca cola starteda service in which any visitor can come and could smell what was coming from the carbon-neutral roof vents. Initially, there was limited public access to plant which was later increased.In the current situation there are production of the company such as the Cola cola reducefor the particular product like as Cola cola. The key reason to reduce and cease the production isthat because of the current kind of Cola cola the local community affects up to the higher level interms of health. Due to this, demand of the Cola cola is constant or raise but in this oppositesupply in the market reduces and deadweight loss comes under consideration in the firm(Caravle, 2012). At this position, economic theory such as law and supply is applied whichshows that if level of one aspect gets change then it impacts on the business entity. According tothis law in the market when demand of the current Cola cola is high and company unable toprovide in the adequate manner then the firm incur loss which called as deadweight loss. In theCola cola company also deadweight loss comes into consideration.
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