According to the 2009 UN World Water Development Report, the world’s population is growing by about 80 million people a year, implying increased freshwater demand of about 64 billion cubic meters a...

According to the 2009 UN World Water Development Report, the world’s population is growing by about 80 million people a year, implying increased freshwater demand of about 64 billion cubic meters a year. An estimated 90 percent of the 3 billion people who are expected to be added to the population by 2050 will be in developing countries, many in regions where the current population does not have sustainable access to safe drinking water or adequate sanitation. The world will have substantially more people in vulnerable urban and coastal areas in the next 20 years. 49 With businesses expanding globally every day, water is a crucial resource, and water issues will increasingly affect all industries. With water conditions improving at a slower rate than business development, businesses will have to take on the responsibility of not only finding an adequate supply of the diminishing resource but also making sure the water is safe for all to consume. This responsibility is going to be an additional cost to companies, but a necessary one that will prevent loss of sales in the future. Coca-Cola’s specific situation in India is a reminder for all global corporations.

1. What aspects of U.S. culture and of Indian culture may have been causes of Coke’s difficulties in India?

2. How might Coca-Cola have responded differently when this situation first occurred, especially in terms of responding to negative perceptions among Indians of Coke and other MNCs?

3. If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make?

4. How might companies like Coca-Cola and PepsiCo demonstrate their commitment to working with different countries and respecting the cultural and natural environments of those societies?