Managing Public Issues: A Case Study on Coca-Cola and Tobacco Industry

This report analyzes the performance expectation gap, strategic radar screen model, and response to public issues by Coca-Cola. It also discusses the role of stakeholders, tobacco industry, and government in managing the tobacco issue.

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Table of Contents
Part A.....................................................................................................................................................2
Introduction.......................................................................................................................................2
Answer to question no- 1: Performance Expectation Gap.................................................................2
Answer to question no- 2: Strategic radar Screen Model...................................................................3
Answer to question no- 3: response to the public issue by TCCC.................................................4
Part B.....................................................................................................................................................5
Introduction.......................................................................................................................................5
Answer to question no- 2: Role of stakeholders................................................................................6
Answer to question no- 3: The Tobacco industry and its role............................................................6
Answer to question no- 4: Role of government.................................................................................7
Answer to question no- 5: Impact of media.......................................................................................7
Conclusion.........................................................................................................................................8
References.............................................................................................................................................9

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Part A
Introduction
With the ramified business changes and increasing business complexities each and every
organization needs to manage its business in effective manner. This report reveals the key
information on the In this case of Coca-cola water neutrality Initiative, many factors have
been highlighted which are related to the relationship with the stakeholders. From this case, it
has been understood that if the relationship with stakeholders are managed in a better way,
half of the issue with the public can be resolved. It is analyzed that for the success of the
organization, there is need to set up nexus with the stakeholder’s growth and organizational
development. In the case study, the world largest beverage company is partnered with more
than 300 bottles in the world and working in approximately 200 countries of the world
(Lawrence & Weber, 2017).
Coca-cola is operating its business at a large scale and has a great impact and influence in the
market. The company is focussing its interest in providing clean and fresh water around the
globe in the bottling plants. As a result of this, Coca-cola has made the announcement that the
goal of the water neutrality can be achieved by the reducing, recycling and replenishing the
water used at their bottling plants (The globe and mail, 2018). This company has increased
the overall turnover and growth which has increased the overall outcomes.
Answer to question no- 1: Performance Expectation Gap
In the case study, a public issue has been raised which is related to the quality of the
water provided by the company. The company was found with a general cause of not using
the fresh water in making their cold drinks and other beverages. The general expectation from
the company to the public at large is that the company is making the best quality product for
them after all coca cola is the world largest beverage company. The public expectation
includes the products which are free from the harmful contents and are safe for the health too
and does not affect the local communities. The performance expectation gap is mitigated by
undertaking the particular work option and reducing the overall negative impact of the work.
It also helps in creating the core competency if the performance expectancy gap is mitigated.
But coca cola proved the expectation of public wrong by selling the adverse beverage while
using the contaminated water for making the drinks. It is analyzed that Coca-cola did not
meet the expectation of the stakeholders when the group of people are loyal and support the

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company at their best. Some group of the public has found that the areas located in their
bottling plants in India brought to the public attention that the company is making use of the
depleted local groundwater for making the cold drinks and other beverages. Another thing
has also bought in the notice that the coca cola production was contaminated with the
dangerous level of the pesticides residues (Coca-Cola Journey, 2015). This negative
indication of the offered products by Coca Cola reveals that company should focus on
implementing the CSR activities program to strengthen the business outcomes in effective
manner.
The performance expectation gap has been analyzed from the case study that the coca cola
has failed to meet with their stakeholders. The stakeholders are concern about the water
resources and sustainability of the environment but the company coca cola is focusing only
on their production and earning which is exactly opposite to the stakeholder’s expectations.
The company is performing well in their own terms and profits but are damaging the
environment which differs from the expectations of the stakeholders. The stakeholders expect
that the company should do activities which help in protecting the environment and the
natural resources can be used for the long term of a period. It has not only strengthened its
business outcomes but also increase the profitability and business efficiency.
Answer to question no- 2: Strategic radar Screen Model
If the application of the strategic radar screen model is done in this case then the scanning of
the business environment can be possible in order to know the position of the company in the
market. In this model, environments have been scanned and analyzed and these environments
include legal environment, customer environment, geophysical environment, competitor
environment, economic environment, technological environment, social, political
environment. This strategic radar Screen model is used to assess internal and external factors
which might impact the undertaken strategies and business models.
There are eight environments exist from which only four can be applied in this case. These
environments include the legal environment, social environment, customer environment, and
the geophysical environment. For coca cola, the most applicable environment is the
geophysical environment due to the issues related to the public concern and their health
issues. The company contaminating products and depleting fresh water resources made this
issue in the environment which makes the image down in the eyes of shareholders. This
negatively and positively impacts the business growth and undertaken work.

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The geophysical environment effect is found to impact the behaviour and the development of
the people both children and adults who are living and work in it. The quality of the space in
which the people are working and the material provided affects the level of involvement and
children. Coca-cola has definitely disrupted the water resources of the local communities
where the company conduct its packaging and manufacturing. There is need to set up proper
collaborative activities which will help company to accomplish set objectives and goals.
Answer to question no- 3: response to the public issue by TCCC
According to an analysis of the case, TCCC has responded appropriately in this issue. By
turning the public concern issue in their own favour and take consideration in their own hand
by making the relationship with the internal and external stakeholders. This is done by the
company in order to show concern towards the issue made in the public and aligning the
interest of the stakeholders with the organization. The other reason is to sort the issue in a
systematic manner without damaging the image of the company. All the public issues and
problems could be mitigated only when proper structured program could be used. In addition
to this, proper meeting and advance meeting program could also be promoted in organization
which will strengthen the organization goals and objectives.
Coca-cola is showing the importance towards the society, environment, and nature and most
importantly to their customers. From the analysis and market report, it has seen that Coca-
cola has made the improvements and start setting goals for the future in order to preserve the
resources and make the better utilization of them. To make a good image in the market TCCC
also provides their customers with the positive corporate social responsibility. By analyzing
the error in their previous performance company can able to make it good for the future and
find new innovative ways to solve a problem that affected the communities. This will provide
the possible innovative way and creative functions which could be used by organization to
strengthen its business functions. This company ahs strengthen its CSR activities and
business sustainability by delivering to society what it has taken while implementing the
strategies in market.
By supporting the public issue, not only the image of the company will increase but the
company also able to solve the money and cost through innovative techniques and technology
development. I feel that there will be a balance in the corporate social responsibility and the
profits earned by the company. There should be alignment of the corporate social
responsibilities of the company and its corporate objectives and goals. It is analyzed that if

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company wants to sustain its business in long run then it will have to deliver back to society
what it has taken while operating its business in environment (Coca-Cola Journey., 2017).
Part B
Introduction
In a country, there are thousands of internal tobacco industries documents have been released
through litigation and whistle-blowers and reveal the most astonishing systematic corporate
deceit of all time. The tobacco industry in the country is flourishing with the great span and
are earning huge amount of profits by selling hazardous products. Publicly the industry
denied and continues to deny that it is clearly written that smoking is injurious to health and
causes lung cancer. But still, the public wants to consume it. It is clearly analyzed that the
tobacco industry stance on smoking and health is determined by the lawyers and public
relations concerns. There are several negative impacts of the tobacco products on the society.
Various stakeholders are getting affected by this smoking issue in public place. However,
there are several norms have been developed by the government to reduce the habit of the
smoking in the public. These stakeholders include many groups which are against the
smoking in public place, association like WHO is proposing the targets for reducing the NCD
burden and has proposed a reduction of 30 percent by the end of 2025 and some government
bodies with their own rules and regulations are trying to stop the tobacco exposure in the
country as it affects the lifestyle of the individual and majorly this industry is targeting the
youth which is going to spoil the country (Lawrence, & Weber, 2017).
The stakeholders play an important role in this issue. One of the examples can be taken is of
the Nigeria tobacco control journey in which the there is an interference of FCTC in low
income and middle-income countries which has the result of the reduction in the consumption
of tobacco in the country. The intake of tobacco is not good for the health and body as it
affects the internal body of a person and not only the internal body of the person consuming it
but also to the person who is breathing that smoke. The stakeholders of the tobacco industry
would be government, employees, investors, public, society, environmental authority, clients
and other persons who are directly and indirectly affected by the excessive use of the tobacco
industry.

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Answer to question no- 2: Role of stakeholders
The stakeholders have done specific argument for the tobacco and smoking in public place to
be controlled. Stakeholders have done the audience specific messaging and demonstrating to
different stakeholders that how the tobacco control would advance the core priority of the
society and how it can support the control including the NCM engagement. According to the
society, the tobacco industry is not at all a productive and beneficial in developing the
economy. The society stakeholders thinking moves towards in the direction that the reducing
consumption of tobacco will not harm the economy rather it may shift consumer spending to
a more productive sector and well produce by the national economy (Rantome, 2018).
However, various stakeholders have given and divulged their own ideas and information
related to stakeholders.
Answer to question no- 3: The Tobacco industry and its role
As a tobacco industry executive, the tobacco public issue can be managed by making the ban
on consuming the tobacco on the public place as it gives the wrong image of this industry in
the public at large many people oppose for this. As there is a law in some place that the
tobacco consumption is prohibited in the area near to school so that the children and youth do
not get the wrong things. As an industry executive, management of the tobacco issue can be
an important reason in operating the company and managing the profits. Another solution
from which the management of public issue can be done by the company is to increase their
responsibility towards the society by making more donations to the education of a child,
donation towards nature, a donation to a cancer hospital for curing the disease. This will
reimburse a little to the industry of tobacco to survive and sustain in the market for the long-
term (FCTC, 2018). The roe of the tobacco is positive and negative. If we consider the
turnover of the Tobacco industry then it is found that more than 2% of the GDP of the
country is contributed by the turnover of the Tobacco industry.
After assessing all the details, it could be inferred that there are major five impact of the
advertisement made on the media related to tobacco such as tobacco advertisement has
relative share of voice in marketing environment It is weak force affecting smoking
behaviour. The tobacco advertising and promotions are not indulged in creating new smokers
and expanding and increasing the market share. This industry does not target any specific
segment, promotion.

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Answer to question no- 4: Role of government
The government plays an important role in managing the tobacco issue of smoking in public
places by making the roles for smoking. According to the guidelines and rule made by the
government, the fixed area has been given for smoking. Peoples are not allowed to smoke
anywhere in public place as it affects the health of other people too. It is found that smoking
at public place influenced by both the industry and the public. The government is supporting
the tobacco control in the country by taking the initiative like doing the survey in the country
(Room, 2014).
In one of the survey, it has been analyzed that the majority of the respondents supports for
banning the tobacco displays in the marketplace which show the stakeholders in the country
gain the consumption of cigarettes at the public place. This is due to the reason that our
offspring are gaining the wrong knowledge and can be diverted their mind in the wrong
direction. This analysis is done by the government to protect children against tobacco. The
role of the government to mitigate the issues and problems of the consumption of the tobacco
is related to corporate governance mechanism, corporate social responsibilities and legal law
compliance.
Answer to question no- 5: Impact of media
With the changes in economic condition, media has been gaining momentum in market an
increased the positive impact on the society. It helps in creation of the transparency of the
particular facts and spread awareness in society. The media play its role in highlighting the
aspects and gain the benefit from it so one of the biggest public issues of smoking at public
places is getting a pace in the market due to the media peoples. Media is presenting the image
of the smoking in public place as a bad activity which should not be done. There are various
industry-sponsored media communications as well as government communication. Another
step that is taken by the media people is to make an increase in the prices of the cigarettes and
tobacco control by the mass campaigns against the tobacco industry and get the global
exposure at regular interval of time. This is necessary to be done to reduce the effect of
smoking prevalence. The main impact of the media is related to awareness of use of tobacco
on its negative impact on the society. It is analyzed that by the extensive use of the media,
people could easily depict the negative and positive impact of the tobacco smoking which
may impact the tobacco industry.

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There are some new control and methods are started using by the media people with the
objective of promoting the tobacco products online and examine the possible regulations
models to limit the exposure in this form of marketing. This will be considered s opportunity
for the tobacco industry as well as a threat tool. New media are also offering the tobacco
industry a powerful and efficient channel for rapidly evolving the media and its landscape.
Many videos have been evidence that the tobacco promotion through online media is
emerging and safe way for the society too. The main control method which could be used is
to implement the restricted use of the tobacco. Now days, all the companies have to disclose
the warning of using the tobacco and its negative impact on the human body. It was intended
to reduce the negative impact of using the tobacco which might impact the use of tobacco.
Conclusion
After assessing all the details and case study on the Tobacco consumption, it is found
that many people have negatively impacted by the excessive use of the tobacco in society.
However, the increase use of Tobacco has also positive impact on the GDP of the country
and positive increasing the national income. Government has restricted the sale of tobacco in
environment but controlling complete Tobacco industry is not feasible. The government
policies and program have also impacted the advertisement of the sales of the Tobacco in the
best interest of society. Now in the end, it could be inferred that in order to make the
advertisement in tobacco industry, company needs to give proper warning to clients about the
negative impact of consuming tobacco.

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References
BMJ. (2018). Tobacco control. [Online] Retrieved from:
https://tobaccocontrol.bmj.com/content/early/2018/07/25/tobaccocontrol-2018-054344
Coca-Cola Journey. (2017). Company reports. [Online] Retrieved from: https://www.coca-
colacompany.com/stories/sustainability-reports
FCTC. (2018). Tool 2. Stakeholder-specific arguments for tobacco control. [Online]
Retrieved from: http://www.who.int/fctc/implementation/cooperation/who-fctc-5-2-a-
stakeholder-arguments-tobacco-control.pdf
Lawrence, A., & Weber, J. (2017). Business and society: Stakeholders, ethics, public policy
(15th edition). New York, NY: McGraw-Hill Irwin.
The globe and mail. (2018). Corporate radar scans and strategic screens. [Online] Retrieved
from: https://www.theglobeandmail.com/report-on-business/corporate-radar-scans-strategic-
screens/article25452593/