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Pestle Analysis on Coca Cola

Autor:   •  March 18, 2011  •  Case Study  •  859 Words (4 Pages)  •  1,676 Views

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Coca-Cola is the largest manufacturer, distributor and marketer of beverage concentrates and syrups in the world. Coca-Cola is recognized as the world's most valuable brand. The company also licenses more than 450 brands. They market four of the world's top five non-alcoholic sparkling brands, including diet and light beverages, mineral water, enhanced waters, juices and juice drinks, teas, coffees and energy and sport drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the company's beverages at a rate of approximately 1.5 billion servings each day. The Company generates revenues, income and cash flows by selling beverage concentrates and syrups as well as finished beverages.

Although Coca Cola is the biggest manufacturer, it has to consider about its external environment such as political, economical, social, technological, environmental, and legal factors to avoid the government intervention and catch up with today's competitive environment.

PESTLE Analysis on Coca Cola

Introduction

As we all know, the Coca is today's one of the biggest corporation that offers different refreshment in form of a soft-drink. These carbonated drinks are consumed at the rate of more than one billion drinks per day. But aside from their historical success, the Coca Cola Company is still a typical business that is affected and at the same time affecting the different type of communities.

PESTLE Analysis

The Coca Cola Company and other organizations have their own weaknesses and strengths that can both affect the future performance of their respective business. Analyzing the future constraints is an advantage for the companies since they can identify the possible factors that tend to leave an impact on their business.

PESTLE analysis is a popular method that focuses in the external factors of the business and the environment where it operates. PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental. All of them examine the changes in the marketplace.

Political Analysis

Political analysis examines the current and potential influences from political pressures. The non-alcoholic beverages falls in the category under the FDA and the government plays a role within the operation of manufacturing these products. In terms of regulations, the government has the power to set potential fines for the companies that did not meet their standard law requirement.

The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws and foreign jurisdictions might affect the book of the company as well as their entry in foreign country. Other than that, the changes in the nature of business as non-alcoholic beverages can gain competitive

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