The Company's Macro Environment

Running head: THE COMPANY’S MACRO ENVIRONMENT
The Company's Macro Environment
[Coca-Cola]
Name of the student:
Name of the university:
Author note:

1THE COMPANY’S MACRO ENVIRONMENT
Table of Contents
Introduction:....................................................................................................................................2
Analysis:..........................................................................................................................................2
Political:.......................................................................................................................................2
Theory:.....................................................................................................................................2
Application on the product:.....................................................................................................2
Economic:....................................................................................................................................3
Theory:.....................................................................................................................................3
Application:.............................................................................................................................4
Socio-Cultural:.............................................................................................................................4
Theory:.....................................................................................................................................4
Application:.............................................................................................................................5
Technological:.............................................................................................................................5
Theory:.....................................................................................................................................6
Application:.............................................................................................................................6
References........................................................................................................................................8

2THE COMPANY’S MACRO ENVIRONMENT
Introduction:
The chosen product is the “Drink”. The Coca-Cola Company makes the drink in variety
of formats comprising of different flavours. These are Diet Coke, Coca-Cola Mango, Coca-Cola
Cherry and much more (Serôdio, McKee & Stuckler, 2018). The company has a rich presence
across the globe. Consumers from various parts of the world are aware of the product. Such a
brand value allows the product to differentiate itself from many other soft drinks brands. The
study conducts the company’s macro environment analysis with the help of the chosen macro-
environment factors. These are political, economic, socio-cultural and technological.
Analysis:
Political:
Theory:
These factors are all about the level of impact the government has in the economy and the
influencing industries. This means that the decisions being made by the government significantly
impacts the political state of a country. When political state is influenced it affects both the local
and international companies operating under the given economy. The government impact on the
political factors could be classified broadly into few factors. These are government policy,
foreign trade policy, political instability or stability, corruption, labour law, tax policy, trade
restrictions and environmental law etc. In addition to these factors, the government may also
have a profound impact on the infrastructure, a nations’ education system, and the health
regulations (Song, Sun & Jin, 2017). These are some of the factors, which must be taken into
account while assessing a market in terms of its attractiveness. On the contrary, if this factors are
not appropriately assessed while before entering a new marketplace or even being in the same
marketplace, this may create many challenges to a company. The adverse consequences can
range from increased operational cost to many others. An increased operational cost can be due
to the increased trade tariffs (Song, Sun & Jin, 2017).
Application on the product:
The political factors have a great influence on the chosen product “The Drink”. It is to be
noted that the company is controlled under the Food and Drug Administration (FDA) (Serôdio,