MEMO
To: CEO of Coca-Cola Inc.
From: Simeon Trieu, Head of Governmental and Public Relations
Date: 2008 May 10
Re: Protests in China

I hope this memo finds you well. I assure you that the present situation in China is nothing our of the ordinary. From the concerns you have addressed earlier, namely,

(1) protests/boycotts of the firm outside of China that the firm is too “pro-China”
(2) the protests inside China that Coca-Cola is “anti-China” and not doing enough to recognize China’s economic, social, and political accomplishments the past few decades,

I would like to take a moment to explain the intricacies of the issue here in China.

As you know, we have scaled back our support of the Olympic torch relays, which were due, in part, to pressure from outside of China. While we do not want to lose much more of the Western market, we must continue to expand into the Eastern markets, as Pepsi Co. is quickly taking market share. I would not make anymore concessions to the Western boycotts other than the steps we have already taken.

As for the Chinese, we must approach them delicately. Soft drinks and other sweet beverages are still not widely accepted over alternatives like tea and beer. Negative reactions to our campaign could hurt future sales for years. We have had many letters from Tibetan monks asking for our withdrawal of sponsorship from the Olympic games. While Tibet is a hot issue among our Western counterparts, we must pay respects to the PRC. It is important to respect the government’s policies in order to continue doing business in China. Tibet has their right to protest against the PRC, but we should not swing too widely towards one side, lest we lose the business with either the West or the East. China has come a long way since we left in the mid 1900’s and came back in the 1970’s. Their political achievements, human rights improvements, and economic acceleration should be viewed as positive. While the conditions are not perfect, as evidenced by Tibet and Darfur, we hope that China’s stance on these human rights issues will improve as a direct response to the very Olympic venue that we are supporting.

Sincerely,

Simeon Trieu
Head of Governmental and Public Relations