Ask a question from expert

Ask now

External Environmental Factors Affecting Coca-Cola: PESTLE Analysis and Porter's Five Forces

7 Pages2382 Words231 Views
   

Added on  2021-05-01

About This Document

This article analyzes the external environmental factors affecting Coca-Cola, including political, economic, social, technological, environmental, and legal factors, using PESTLE analysis and Porter's Five Forces. It also discusses Coca-Cola's mission, initiatives, and strategies for sustainable growth, such as expanding through collaborations, reducing environmental impact, adapting to consumer needs, and increasing promotional activities.

External Environmental Factors Affecting Coca-Cola: PESTLE Analysis and Porter's Five Forces

   Added on 2021-05-01

BookmarkShareRelated Documents
Task Three:The Coca-Cola non-alcoholic drink company operates worldwide. The economic climate puts many burdens upona company. Today an increasingly globalized world economy has evolved. Industries work in broad areas, covering many continents. Some factors are of particular significance in this highly globalized environment, which affects companies. Coca-Cola, however, still senses the squeeze. Any shift in the global market climate will directly Changes in strategy or economy may have a detrimental effect on its earnings. There are rules and legislation that range from nation to nation, and that specifically impacts it. Around the sameperiod, contextual considerations are of importance. Coca-Cola 's market is spread through more than 200 nations. In this situation, socioeconomic and cultural influences take on greater significance. Coca-Cola's PEST report would recognize many of these variables that may affect the industry in the global climate. (SHTAL et al, 2018)The following can be categories using PESTLE model which are as followsPESTLE FRAMEWORKPOLITICAL FACTORS:The most significant legislative considerations that would specifically influence Coca-Cola are the legislation and the taxation of consumer goods by governments. (Coca-Cola is a non-alcoholic product manufacturer) Moreover, aside from the relevant food and beverage legislationand quality requirements, the corporation is often subject to the general accounting or industry legislation. Tax laws differ according to region. Coca-Cola has been the subject of many complaints about its unnecessary water use. In India alone, people and non-governmental organizations had organized many demonstrations against the Company. Likewise, the sugar company has environmental regulations that impact it. During the past, many cases have already been brought against him surrounding consumer control or the usage of unsafe ingredients.
External Environmental Factors Affecting Coca-Cola: PESTLE Analysis and Porter's Five Forces_1
Coca-Cola claims have been made surrounding the usage of chemicals in the goods. These issuesmay affect their Company and revenue. ECONOMIC FACTORS:Economic factors which affect large and global businesses significantly and directly. The new global financial downturn drastically increase profits for companies. This was incredible how Coca-Cola had put its profits on board. The impact on customers of such global concerns. The global recession has passed down, and raising the US dollar would mean Coca-Cola will experience the pressure again.FACTORS RELATED TO SOCIAL:Through a market point of view, even social considerations are similarly important. The people over the last decade have largely moved from fruit drinks to stable ones. These designs can contribute to a decline in Coca-Cola products' popularity. Some big shift in the attitude and taste of the people will influence a business' earnings. Its products are famous mainly for their flavors.Despite consumers turning toward nutritious beverages, though, Coca-Cola. Press has also played a important part in shifting people's view of soft beverages that are generally perceived as'calorie-laden. 'The worldwide push to tackle obesity has impacted dietary preferences for people. Junk food and sugary drinks have been facing a drop in revenue worldwide. FACTORS RELATED TO TECHNOLOGY:Technology is a major driver for large corporations like Coca-Cola. Their development, processing, and delivery are highly reliant on it. It continues to spend significantly on it in order to stay competitive. Technological versatility maintains a stable supply chain and timely production. That of these things are significant for producing profits. Though technology in this area will not change every day, it needs a lot of spending and upkeep. Whether it is water treatment or the Coca-Cola bottle packaging, it all requires an intensive technical application. Therefore, technical developments have a significant and important effect on the Company of Coca-Cola.
External Environmental Factors Affecting Coca-Cola: PESTLE Analysis and Porter's Five Forces_2
FACTORS RELATED TO ENVIRONMENT:It, in addition to increasing the adverse impact, frequently correlates with the positive national image. Coca-Cola is deeply interested in areas of mineral and water safety. It has established ambitious sustainability objectives for 2020 and is working on meeting those goals. LEGAL FACTORS:Compliance has always become a big concern for organizations across the world, and particularly for those operating in a specific environment. Many laws vary from one nation to another, even from one company to another. Non-compliance can cost billions in fines, which will also lead to the loss in culture. Enforcement is critical in several respects, from labour to product quality and environmentA PEST review reveals that many financial, environmental, social, and technical influences are of particular significance for the Company of the soda giant. While the technical variables could be under its hands, it will need the social, political, and economic variables to follow its marketing strategy in the evolving circumstances. Water shortage is a big problem concerning Coca-Cola in particular. Water shortages will continue to bother it in most of the countries whereits manufacturing plants are focused would always be Coca-Cola's most challenging environmentto navigate. Although it has made its push toward healthy goods by raising the amount of low-calorie drinks and the global economy is now oriented towards expansion, a stronger dollar growing also strike.B. ANALYSIS OF PORTER'S FIVE FORCESThe characteristics of these forces differ from sector to sector, and this means that increasing Company is unique in terms of competition and popularity. Strategic analysis for The Coca-ColaCompany would utilize the accumulated information to build strategic decisions using the blueprint (Mburu, 2016).Five Factors Research by the Coca-Cola Corporation Porter Following are the Porter's model 's .
External Environmental Factors Affecting Coca-Cola: PESTLE Analysis and Porter's Five Forces_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Managing the Coca-Cola Company in an international context
|12
|2914
|314

Management Economics: Historical Background and Overview of Coca Cola
|13
|3358
|86

Management Economics: Analysis of Coca Cola Company
|12
|3197
|50

Business and Business Environment
|12
|832
|26

Selecting a Product to Study in Microeconomics
|10
|2437
|417

Coca Cola: Business Management and Innovation Techniques
|14
|1041
|1