Coca-Cola Company

The Coca-Cola Company


The Coca-Cola Company is a huge company that provides a variety of beverages in the form of soft drinks. These carbonated drinks are drunk daily in excess of one billion units. Despite all the clones that are appearing, Coca-Cola has been able to obtain a patent for the design over the years. All varieties of Coca-Cola, including the original, cherry, light, caffeine-free, and diet varieties, are well known and adored across the world. Looking at Coca-past Cola's performance, it can be seen that it, like any other corporation, experiences setbacks and has an impact on a variety of communities (Bartow, 2011).

Strengths and Weaknesses


Every business including the Coca-Cola Company has its strengths and weaknesses that have the ability to impact the future growth of the company. By analyzing the future restrictions, it will be beneficial for Coca-Cola because it will allow them to understand the possible factors that influence the business. The PESTLE study is a standard technique that targets the exterior elements of the company and the surrounding area where it has been established. The word PESTLE is defined as Political, Economic, Social, Technological, Legal and Environmental which scrutinize when market shifts (Bartow, 2011).

Political Analysis


Non-alcoholic drinks usually fall within the category of food under the FDA. The government in regards to regulations influences the process of manufacturing the beverages. The government in this case usually has the ability to apply penalties for the organizations that do not meet the requirements of their legal standards. Factors that make the Coca-Cola to be different from the ones being predicted include changes in regulations and laws which involve shifts in taxation requirements, environmental laws, and accounting standards both foreign and domestic territories (Raman, 2010). Another factor is shifts in the non-alcoholic business environment which include those with no limitation, pricing pressures and competitive goods and its capacity to acquire or keep a share of sales in the world market which is because of the competitor's actions. The strategies of Coca-Cola have been infringed on by political structures and legal considerations. For example, there were Arab nations that refused to use Coca-Cola products because of a political disagreement and dissatisfaction with the industry for keeping its Israel distributors (Raman, 2010). The condition of a country in regards to politics affects company's ability to infiltrate markets that are developing and coming up.

Economic Analysis


The sales of Coke are affected by a number of economic issues which the enterprise cannot regulate. These factors comprise of economic development in an industry and country, labor costs, levy rates, currency exchange rates, and interest rates. One economic factor that significantly affected many businesses around the world was the financial crisis of 2007-2009 (Altshuler, 2014). But the crisis had a rather small impact on Coca-Cola as compared to other companies. Despite the crisis causing significant issues for businesses Coca-Cola's operating margin maintained a 22% industry front even though there was a drop in the dividend yield to 2.6% (Altshuler, 2014). The most important adversely impacting economic issue for Coca-Cola is the variation in exchange charges. For instance, the currency depreciation in Venezuela has led the company reporting profits to decrease by 55 percent in this market. This is not only experienced in Venezuela, but there are other parts of the world with the crisis. Today, the company is worth more than $ 84 billion where its market share is more than 50 percent in the global beverage industry (Altshuler, 2017). It is estimated that in every 10 seconds, about 126,000 people worldwide choose to take a drink from the company. Therefore the mission of the company is always to make sure that the customer choices are still satisfying.

Social Analysis


The social analysis looks at how the shifts in society impact Coca-Cola and the changing attitudes and lifestyle toward the marketplace. Most customers who are between 37 to 55 years are more focused with the health benefits (Wilson, 2012). A lot of people are getting to the older age in life and are becoming more and more interested in healthy lifestyles. This is directly impacting the Coca-Cola industry because there is a growing demand for healthier drinks rather than the ones that are carbonated. For instance, in China, the company had the same strategy of introducing beverages that were most liked due to the taste of the local market. They introduced the fruit juice called Tian Yu Di which when translated, it meant heaven and earth. The market for carbonated beverages, in this case, is steadily declining, and this means that the revenue of Coca-Cola is also dropping (Wilson, 2012). Other factors that significantly affect Coca-Cola include shifting of family values and patterns, demographic changes, the perception of the media on the brand, and health and welfare of the customer division being targeted.

Technological Analysis


The effectiveness of the company's promotional, advertising and marketing programs like the use of the Internet and television has made its products look more attractive. When the company first introduced the plastic bottled beverages, the use of the TV made the drink more refreshing and wanting because of how it was advertised in the market. There were new opportunities created for the new product improvement regarding production and marketing. As technology advanced, more new products were being introduced in the market. This advancement led to the creation of cherry coke in 1985 (Altshuler, 2014). However, customers still want the first's original taste of coke.

Legal Investigation


The aspect of the company laws emphasis on the impact of the world and national legislation. In this case, the Company was given all the privileges in the aspect of its inventions and businesses in terms of its product development that are always patented in growth process (Altshuler, 2014).

Environmental Study


The environmental investigation scrutinizes the national, world, and local environmental challenges. According to Coca-Cola's information, all the facilities used in the company are usually monitored as per the laws passed by the government (Altshuler, 2014).

Conclusion


The Coca-Cola Company despite being a big brand has been noted that like any other business has a lot of impact to the communities. Every business in this case including the Coca-Cola Company has its strengths and weaknesses that have the ability to impact the future growth of the companies. Through the PESTEL analysis, we have clearly elaborated the ups and downs the company faces throughout its journey in the beverage industry.


References

Altshuler, E. (2017). A Reason to Drink Coca-Cola. Guerrilla Science, 85-96. doi: 10.1007/978-3-319-51624-0_6
Bartow, J. E. (2011). Citizen Coke: an environmental and political history of the Coca-Cola Company. 14-19. doi: 10.18130/v3fk87
Raman, K. R. (2010). Community-Coca-Cola Interface: Political-Anthropological Concerns on Corporate Social Responsibility. Social Analysis, 51(3). doi:10.3167/sa.2007.510305
Wilson, R. E. (2012). Coca-Cola Amatil: A Bottler Recharging Growth with Energy Drinks. 322-344. doi: 10.4135/9781473994652

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