In $2007,$ Coca$-$Cola reported total sales of nearly $$28$ billion$75\%$ from beverage sales outside the U$.$S$.$ Over $$6\mathrm{.}5$ billion came from Europe. In an effort to expand into a healthier product line, Coke introduced Dasani water in $1999$ to the U$.$S$.$ market. The marketing strategy was to lessen the dependence on the carbonated sector and take advantage of the growing popularity of bottled waters. By $2004,$ Dasani ranked second in bottled water sales only to PepsiCos Aquafina. In February $2004,$ Coke launched the introduction of Dasani into Great Britain with plans to expand further into Western Europe. Coke spent $$10$ million on the launch campaign with the tag line, Prepare to Get Wet. However, even before the launch, Dasani was receiving negative publicity. Unlike other brands of bottled water in the European market, Dasani is not made from natural spring or mineral water, but from purified tap water. Although both Dasani and Aquafina are produced through a filtration system, Coke found excessive levels of bromate, a chemical that increases the risk of cancer. The high levels were the results of adding calcium chloride to the formula in order to comply with UK health regulations. When Coke became aware of the problem, they pulled $500,000$ bottles from the shelves in March $2004$ and ceased all further marketing of Dasani. Despite the earlier problems in Europe, the Dasani brand has done well in other markets. Coca$-$Cola has never denied that Dasani comes from tap water, but stresses that it is subject to multi$-$barrier filtration, is purified, and is enhanced with minerals. Today, Coca$-$Cola sells more than $20$ brands of bottled water in $100$ countries. Water accounts for $17\%$ of their total beverage sales. In Europe, most of the growth has taken place through acquisition of or joint venture with established independent brands where Coca$-$Cola has not chosen to replace the local brands with the Dasani name. Coca$-$Cola has seen a steady growth in bottled water sales from $$457$ million in $2001$ to $$1\mathrm{.}6$ billion $($wholesale$)$ in $2007.$ Dasani remains number one in U$.$S$.$ bottled water sales with a nearly $14\%$ market share in world markets. In response to growing international criticism of the distribution of plastic bottles, Coca$-$Cola has just opened a major recycling plant in South Carolina at a cost of over $$50$ million. This is the first bottle$-$to$-$bottle recycling plant in the US$.$ The recycling plant is expected to process nearly $56$ million pounds of plastic $($nearly $2$ billion $20-$ounce bottles$)$ and aluminium at a cost of $6$ cents per pound. Cokes goal is to recycle $30\%$ of the bottles they distribute by $2010$ and their long$-$term goal is set at $100\%$ recycling of plastic bottles and aluminum cans. Coca$-$Cola also reported that since $1991$ it has reduced the number of new aluminium cans it produces in the US by $33\%,$ the number of glass bottles by $57\%,$ and plastic bottles by $32\%.$Level $1$: Qualitative Questions $1.$ Did Coca$-$Cola mislead potential consumers with the marketing of Dasani in UK$?2.$ Did Coca$-$Cola handle the UK episode in a responsible manner? $3.$ How did the cultural differences between the US and Western Europe impact the decision to delay the introduction of Dasani? $4.$ How has Coca$-$Cola demonstrated sensitivity to consumerism and environmentalism? $5.$ Was Coca$-$Cola in violation of any governing laws? $6.$ What types of global market entry has Coca$-$Cola used in the bottled water market? Level $2$: Quantitative Question $7.$ Coca$-$Colas bottled water sales have flattened due to pressure from environmentalists over the world$-$wide distribution of plastic bottles and questions about the wisdom of paying over $$1\mathrm{.}00$ for something worth $3.$ Given the initial cost of the recycling plant and the cost of operation, is this a good business decision for Coca$-$Cola? Why?