PESTLE analysis

Intro

The report includes the macro factors affected the Coca Cola Company and few of the articles I have examined from the various sources which I have stated in the end of the report in the bibliography. I have studied the articles are as follows:

The PESTLE analysis examines changes in a marketplace caused by Political, Economical, Social, Technological, Legal and Environmental factors.

Political Factors

Government plays a role within the operation of manufacturing this product in term of regulation. And if they don't follow any of the single law then there are potential fine set by the Government on company. So for that reason Non-alcoholic beverages fall within the food category under the FDA (Food and Drug Administration)

The following article is from (http://www.grist.org/article/2009-12-11-employees-rage-against-coke-machine-copenhagen-yes-men/ ) in which in press conference held in City Hall Square, at least 20 people took pledge for the rest of my living days will never, ever, drink Coca-Cola.

Grist, "Employees* rage against the Coke machine in Copenhagen," By the Yes Men, December 11, 2009

"Two Cola-Cola* employees urged people in Copenhagen to never drink the soft drink again, denouncing their company's environmental and human rights record in a highly unusual press conference* in the Hopenhagen LIVE area in City Hall Square

Political factor also affect if there is change 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.

Economic Factors

  1. There was a time when US economic was strong and most of its parts were doing well. However, things changed. Most economists loosely define a recession as two consecutive quarters of contraction, or negative GDP growth. On Monday 26, the government officially declared that the U.S. has been in recession since March. (CBS Market Watch. " U.S. Officially in a recession." Rex Nutting. [nov 26,2001]. www.cbsmarketwatch.com)

But because of aggressive action by the Federal Reserve and Congress it will be short and mild. The financial system will coming to constant, positive growth in the first half of 2002.

Before America was attacked on September 11,2001, United States was starting tot see the economy recover slightly and it is only just recently that they achieved the economic levels. Consumers are now resuming their normal habits, going to the malls, car shopping, and eating out at restaurants. However, many are still handling their money cautiously. They believe that with lower inflation still to come, consumers will recover their confidence over the next year.

The non-alcoholic beverage industry has high sales in countries outside the U.S. According to the Standard and Poor's Industry surveys, "For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany." These markets will continue to play a major role in the success and stable growth for a majority of the non-alcoholic beverage industry.

Social Factors

Many U.S. citizens are practicing healthier lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. Also, time management has increased and is at approximately 43% of all households. (http://www.cdf-mn.org). The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life. Moreover every year Coca Cola donates 1% of their profits to charity in Spain and it creates a friendly company image.

Technological Factors

The company development depends on the technology they use and it help the company to bring the level of the company to the more than the expected.

Case Study: Coca-Cola utilizes SAP technical upgrade project to migrate from Oracle to IBM

The Coca-Cola team decided it was time to derive more performance from the business-critical SAP applications, while driving down hardware and software costs. Instead of upgrading Oracle, the team decided to introduce IBM DB2. "By choosing to implement DB2 compression right away, we have reduced the database size by around 40 per cent. This gives us faster backup and reduced storage costs, and makes the SAP technical upgrades easier and quicker." Andrew Juarez, SAP Lead Basis, Coca-Cola Bottling Company Consolidated.

http://www.itworldcanada.com/whitepaperlibrary/Pages/whitePaper.aspx?WpID=1411

Legal Factors

Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process.

Communities Reject Coca-Cola in India

Coca-Cola is in trouble in India. Ever since the first allegations arose in Kerala, India, of water scarcity and polluted water resulting from its bottling operations, Coca-Cola's public relations department has churned out denials, insisting that the charges are false and that it is the "target of a handful of extremist protesters."

It is time for Coca-Cola to seriously examine and address the adverse impacts of its operations in India. In fact, Coca-Cola needs to stop treating the issues in India as a public relations problem and assign it to the appropriate department that will genuinely address the issues of over-exploitation of water (leaving the community with scarce water resources) and pollution of water sources as a result of its operations. Hindustan Coca-Cola and Bharat Coca-Cola are the Indian subsidiaries of Coca-Cola.

http://www.corpwatch.org/article.php?id=7508/

Environmental Factors

Environmental analysis examines the local, national and world environmental issues. According to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the environmental laws imposed by the government.

Quick Facts
  • We've made an investment of more than $60 million to build the world's largest plasticbottle-to-bottle recycling plantand to support recycling in the U.S.
  • For ourcold drink equipment, we've developed an innovative energy management system that delivers energy savings of up to 35%.
  • We've set an aspirationalgoalto return to communities and nature an amount of water equivalent to what we use in our beverages and their production.

http://www.thecoca-colacompany.com/citizenship/environment.html

http://web.ics.purdue.edu/~pbawa/421/pepsi%20cola%20pest%20case%20study.htm

http://ivythesis.typepad.com/term_paper_topics/2009/12/pestle-analysis-on-coca-cola.html

Coca-Colais still the world's top brand, according to an annual ranking published byBusinessWeekand global consultancy Interbrand. Our Company's flagship brand has been ranked #1 every year since the study debuted in 2001.

Interbrand estimates the present value of brand Coca-Cola at $67 million.

The "Best Global Brands 2006" report is currently available at www.businessweek.com and will be featured in the magazine's Aug. 7 issue, which hit newsstands on July 31. The issue also features an extensive profile of Mary Minnick, executive vice president and president, Marketing, Strategy and Innovation, and a past, present and future look at our Company's advertising and product development efforts. Visit businessweek.com to read the story.

According to Interbrand, the majority of the 100 companies on the "Best Global Brands 2006" list are "proactively managing their businesses through a brand lens.... They have recognized that their brand should be the central organizing principle given the incredible value they represent. The need to measure and manage brand performance continues to be a critical priority for senior management as evidenced by the incredible interest shown in this ranking."

Interbrand calculates brand value as the net present value of the earnings the brand is expected to generate and secure from July 1, 2005 to June 30, 2006.

To be considered, brands must have a minimum brand value of US$2.7 billion, generate approximately one-third of their earnings outside of their home country, produce publicly available marketing and financial data, and have a wider public profile beyond their direct customer base.

http://www.thecoca-colacompany.com/ourcompany/wn20060804_businessweek.html

With the intensive study of the PESTLE, the company will continue to emerge and develop if they manage to find solutions in different challenges that the entire organization might face

INTRODUCTION

In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson.

Birth of Coca Cola

Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing letters which has become the famous logo of today.

http://inventors.about.com/od/cstartinventions/a/coca_cola.htm

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!