Task Three:. The Coca-Cola non-alcoholic drink company
Added on - 01 May 2021
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Task Three:The Coca-Cola non-alcoholic drink company operatesworldwide. The economic climate puts many burdens upona company. Today an increasingly globalized worldeconomy has evolved. Industries work in broad areas,covering many continents. Some factors are of particularsignificance in this highly globalized environment, which affects companies. Coca-Cola,however, still senses the squeeze. Any shift in the global market climate will directlyChanges in strategy or economy may have a detrimental effect on its earnings. There are rulesand 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 morethan 200 nations. In this situation, socioeconomic and cultural influences take on greatersignificance. Coca-Cola's PEST report would recognize many of these variables that may affectthe 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 arethe 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 industrylegislation. Tax laws differ according to region. Coca-Cola has been the subject of manycomplaints about its unnecessary water use. In India alone, people and non-governmentalorganizations had organized many demonstrations against the Company. Likewise, the sugarcompany has environmental regulations that impact it. During the past, many cases have alreadybeen brought against him surrounding consumer control or the usage of unsafe ingredients.
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 newglobal financial downturn drastically increase profits for companies. This was incredible howCoca-Cola had put its profits on board. The impact on customers of such global concerns. Theglobal recession has passed down, and raising the US dollar would mean Coca-Cola willexperience the pressure again.FACTORS RELATED TO SOCIAL:Through a market point of view, even social considerations are similarly important. The peopleover the last decade have largely moved from fruit drinks to stable ones. These designs cancontribute to a decline in Coca-Cola products' popularity. Some big shift in the attitude and tasteof 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 alsoplayed 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 forpeople. 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 orderto stay competitive. Technological versatility maintains a stable supply chain and timelyproduction. That of these things are significant for producing profits. Though technology in thisarea will not change every day, it needs a lot of spending and upkeep. Whether it is watertreatment 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 ofCoca-Cola.
FACTORS RELATED TO ENVIRONMENT:It, in addition to increasing the adverse impact, frequently correlates with the positive nationalimage. Coca-Cola is deeply interested in areas of mineral and water safety. It has establishedambitious 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, andparticularly for those operating in a specific environment. Many laws vary from one nation toanother, even from one company to another. Non-compliance can cost billions in fines, whichwill also lead to the loss in culture. Enforcement is critical in several respects, from labour toproduct quality and environmentA PEST review reveals that many financial, environmental, social, and technical influences areof particular significance for the Company of the soda giant. While the technical variables couldbe under its hands, it will need the social, political, and economic variables to follow itsmarketing strategy in the evolving circumstances. Water shortage is a big problem concerningCoca-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 dollargrowing also strike.B. ANALYSIS OF PORTER'S FIVE FORCESThe characteristics of these forces differ from sector to sector, and this means that increasingCompany is unique in terms of competition and popularity. Strategic analysis for The Coca-ColaCompany would utilize the accumulated information to build strategic decisions using theblueprint (Mburu, 2016).Five Factors Research by the Coca-Cola Corporation PorterFollowing are the Porter's model 's .