Pestel Analysis of Coca Cola - amazonia.fiocruz.br

The Company generates revenues, income and cash flows by selling beverage concentrates and syrups as well as finished beverages.

They too have to analyze their Political, Economical, Social Environment and Legal Factors in order to catch PPestel with the fast changing world. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws.

Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. Political conditions, especially in international markets, including civil unrest, government changes and restriction on the ability to transfer capital across borders. Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local bottlers and make necessary infrastructure enhancements to production facilities, distribution networks, sales equipment and technology. Because Coca-Cola is known as the very American company, this had a huge effect on the sales of its products.

Economical Analysis Last year the US economy was strong and nearly every part of it was growing and doing well. However, things changed. Most economists loosely define a recession as two consecutive quarters Pestel Analysis of Coca Cola contraction, or negative GDP growth. Inwe are witnessing a global economic crisis which was suggested by several important indicators of economic downtown worldwide. These included high oil prices, which led to both high food prices due to a dependence of food production on petroleum, as well as using food crop products such as ethanol as an alternative to petroleum and global inflation; a substantial credit crisis leading to the bankruptcy of large and well established investment banks as well as commercial banks in various nations around the world; increased unemployment; and the possibility of a global recession.

As the inflation rate grows higher and higher, consumer buying power will represent a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share Pestel Analysis of Coca Cola the competition.

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In addition, consumers can easily switch to the other beverages with little cost or consequence. Social Analysis Many people nowadays are practicing healthier lifestyles. This has affected the non-alcoholic beverage industry in that Analysjs are switching to bottled water and diet colas instead of beer and other alcoholic beverages.

The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. Possible substitutes that continuously put pressure on Coke include tea, coffee, juices, milk and hot chocolate. Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition.

A PESTEL Analysis of Coca Cola:

There is a large population of the age Pestel Analysis of Coca Cola known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages.

Increasing awareness among consumers, public health professionals and government agencies of Coka potential health problems associated with obesity and inactive lifestyles represents a significant challenge to the Coca-Cola industry. The company has recognized that Anaysis is a complex public health visit web page. Coke has hot lot of sugar by which continuous drinking of Coca-Cola may cause health problems.

Being addicted to Coca-Cola also is a health problem because drinking of it has an effect on your body after few years. The e new technology of internet and tv which use specific effects for advertising through media. They make some products look attractive.

This helps in selling of the products. This advertising makes the product attractive and is being used in media to sell their products.

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As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago. Inthe company used approximately billion liters of water in their plants to produce beverages. Coca-Cola calls this water neutrality. Coca-Cola vision is to advance a packaging framework in which their packaging is no longer seen as waste, but instead as a valuable resource for future use.

To realize this zero waste vision, they have been guided by a commitment to continuous improvement. They continues to make strides click here advancing packaging initiatives focus on reduce, recover and reuse.]