Will Mecca Cola and the Other Protest Products do Long-Term Harm to American Brands?

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  • GM Turnover Challenge
  • Mecca Cola

 

SKU: Repo1384722

Organizational Behavior

1. Individual Work

  • GM Turnover Challenge
  • Mecca Cola

A written report of your analysis to the above cases . You need to provide first a coherent, concise, and well-organized analysis and then answer the questions.

 

Case study 1: The “Turnover” Challenge

General Motors Company, commonly known as GM, is an American multinational corporation headquartered in Detroit, Michigan, that designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. GM employs approximately 202,000 people around the world. The company always hire highly skilled employees and are very selective in the hiring process.

 

At the time when new members join the company, human resource (HR) department implements an “orientation week” program for them. The purpose of this program, is to let the new members be familiar with the company`s common regulations and procedures, organisational structure, corporate culture and other related information. Moreover, the program exposes the new members to information related to their rights, their responsibilities, and to whom they will need to report to while at work.

 

GM company consists of several divisions; each one has its own subculture. The existence of strong subcultures within the company has created confusion especially for new employees who found it difficult to cope with subcultural differences among divisions. Eventually, this has created a status of dissatisfaction among them. At the end, the company found out that, the turnover rate has slightly increased compared with previous years.

Assume that you are being assigned as an HR manager for the GM company. Try to provide your answer for the following question.

Question: As an HR manager for GM Company, you are required to propose solution to the top management team on how to overcome and solve the problem of increased turnover rate at the company. What would be your recommendations?

 

Case Study 2: Mecca Cola: Building a Protest Brand in an Increasingly Anti- American Environment

In November 2002 French political activist, Tawfik Mathlouthi began selling a new brand of cola in France. Mathlouthi called his cola Mecca, after the city in Saudi Arabia when Muhammad was born. While some religious leaders question the use of Islam’s holiest city for a brand name, not many people are questioning the brand’s success. Mecca, the site of the Great Mosque and the yearly hajj, or pilgrimage, holds a very significant meaning to followers of Islam. Mathlouthi hopes the name can have an equally significant meaning for consumers of soft drinks.

 

Mathlouthi is capitalising on the rising tide of anti-Americanism in the Arab world and beyond. He has fashioned his product on Zamzam Cola, an Iranian Coca-Cola substitute sold in Iran, Saudi Arabia, and Bahrain. Mecca Cola sponsored a large peace rally in London to promote opposition to America’s war in Iraq and the Mecca brand. The company gave out 36,000 bottles of Mecca Cola, and 10,000 shirts with the Mecca logo and the words “Stop the War” and “Not in my Name.” The product uses phrases such as “No more drinking stupid” and “Drink with commitment” to sell the brand and makes no apologies for its political position. Mathlouthi, who was born in Tunisia and moved to Paris in 1997 to start a radio station admits that his product is political in nature. He states that it is an attempt to fight “American imperialism and Zionism by providing a substitute for American goods and increasing the blockade of countries boycotting American goods.”

 

A particularly strong appeal of the product for some consumers appears to be the fact,that twenty percent of the company’s net profit goes to charities, including ten percent to Palestinian charities. One consumer in Paris, Youssef, age 26 states “The product is very good too. It has a taste somewhat between Coke’s and Pepsi’s.” In certain markets it appears that Mecca Cola has begun eating into Coca-Cola’s popularity. A store owner in a Muslim part of Paris states, “Since I started selling Mecca Cola, consumption of Coca-Cola has fallen 80%. People are attracted to the idea of supporting the Palestinians.” Mathlouthi defends the charge that the company may be funding terrorism by claiming that money is not given directly to the Palestinians, but rather, the company provides the Palestinians with food, clothing, and the construction of buildings. Mecca Cola also uses proceeds from its sales to support some European non-government organisations (NGOs).

 

Mecca Cola (the packaging which looks much like the product it is attempting to replace) is now sold in over 28 countries, including a number of Western European countries. At first the product was only sold in small ethnic shops in Muslim areas,however, the product can now be found in large grocery stores in the Arab world and in France, Britain, Italy, Spain, Belgium, and Germany. Mathlouthi purports to be  filling orders for two million bottles a month in England alone. Mecca Cola plans on a rapid expansion of Europe and even into the United States market.

 

As the popularity of Mecca Cola increases, Mathlouthi has set his sights on other products. He plans on introducing Halal Fried Chicken (HFC) and Mecca Coffee soon.

 

Discussion Questions

1. If you saw Mecca Cola on a store shelf would you consider purchasing it? Why or why not?

2. What should be the response of Coca-Cola to the Mecca brand?

3. Will Mecca Cola and the other protest products do long-term harm to American brands?

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