Business organization and environment in a global contest - Coca Cola

Running Head: COCA COLA 0
Business organization and environment in a global contest

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Contents
Contents................................................................................................................................................1
Introduction...........................................................................................................................................2
Background information of Coca Cola...................................................................................................2
Pestle analysis of Mexico.......................................................................................................................3
Opportunities available for the Coca Cola by expanding its business in Mexico...................................5
Threats that Coca Cola can face by doing business in Mexico...............................................................6
Attractiveness of market (porter’s five forces)......................................................................................7
Conclusion and recommendations........................................................................................................8
References.............................................................................................................................................9

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Introduction
Coca Cola is a multinational corporation that is serving various countries in almost all the
part of the world. By earning the revenue of 84.8 Billion dollars, it comes under the
multinational corporation by serving millions of customers (Fandam, 2016). Due to big
multinational company, Coca Cola is fulfilling the responsibility of being ethical as well as
eco-friendly. Due to use of water in preparing its beverage drink, it takes proper use of water
by keeping it safe. It is also interested in proving the safe drinking water to the poor
countries. The objective of this report is to expand the Coca Cola market into Mexico. For
preparing the report, first environment of Mexico has been analysed through the PESTLE
analysis. Through this, political, economic, social, technological, legal, and environmental
condition has been analysed which is important for taking entry into Mexico for business. By
taking the PESTLE, analysis of Mexico, opportunities as well as threat has been described in
the report that Coca Cola will get by taking entry into Mexico. Apart from the PESTLE
analysis, porter’s five forces has been highlighted in the report. At the end of the report,
recommendations for Coca Cola has also been discussed that will help the company in
Mexico.
Background information of Coca Cola
Coca Cola is an American corporation that was founded in 1892. It is engaged in
manufacturing and selling of beverages. It is largest manufacturer of beverages that is serving
more than 200 countries. It also sells the soft drinks as well other products. It is one of the
largest manufacturer and distributor of the beverages in the world. It has headquartered in
Atlanta, Georgia. From the report published recently, it is founded that Coke is still the king
in the market. The market share of Coke has been increased from 17.3% to 17.8%. The
competitor of Coke, Pepsi’s market share has been dropped to 8.3% that was 10.3%. In the
year 2016, the soft drinks were accounted for $81 Billion in North America (Bronner, 2018).

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Pestle analysis of Mexico
Political factors- In Mexico, there are several political factors that will affect the Coca Cola to
do business. Security and corruption is one of the biggest factors that affect the businesses in
Mexico. Besides this, various positive effects are shown in the diagram given below.
Trade and investment freedom has been increased in recent years that will help the companies
to do business in Mexico (Heritage Foundation, 2018). It is also seen that most of the poverty
is caused by geographic, individual, as well as political factors. For reducing, the poverty in
Mexico, World Bank and international monetary fund take various measures because the
government of Mexico does not take enough actions to ensure the development.
Economic factors- Mexico is the second largest economy of the Latin America as well as
among the 15th largest economies. In 2017, Mexico faced the two big earthquake that
hampered the growth of Mexico. Therefore, it can also hamper the Coca Cola growth when it
will move to Mexico because due to these uncertainties people do not spend too much.
Besides this, Mexico is also known for cheaper labour which will prove to be profitable for
Coca Cola. In the year 2017, unemployment rate also decrease in Mexico with 3.6% that was
3.95 in the year 2016. From these data, it is clearly stated that Coca Cola is required to
research the market properly before moving into the Mexican market for business.