Pest Analysis of Coca Cola

PEST Analysis The PEST Analysis identifies changes in the market caused by Political , Economical, Social and Technological factors. Political Analysis and Factors Those Non- Alcoholic Beverages the likes of Coca-Cola, are within the food category, under the FDA (Food and Drug Administration). The government has control over the manufacturing procedure of these products in terms of regulations. Companies who fail to meet the standards of law, are fined by the government. Following are provided some of the factors that are influencing Coca-Colas Operations. 1.Changes in Laws and Regulations like changes in Accounting Standards, taxation requirements (tax rate changes, modified tax law interpretations, entrance of forward-looking tax laws), and environmental laws either in domestic or foreign authorities. 2. Changes in Non-Alcoholic business era. These are competitive product and pricing policy pressures, force to maintain or earn share of sales in worldwide market compared to rivals . 3. Political Conditions, specifically in international markets, like civil conflict, political changes and restrictions c at a timerning the ability to relocate capital across borders. 4.Ability to penetrate emerging and developing markets, that also relies on economic and political conditions, and also their ability to form efficaciously strategic business alliances with local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and engineering science. Economic In 2001, the recession influenced the companies operations, but because of aggressive actions the US Economy estimated to pitch returned in positive growth in 2002. Currently, because of global recession, Coca-Cola mickle borrow capital and invest in other products, because the interest rates are lowered.Also, it can borrow to advance its research of new products and applied science. By researching for new products is cost effective, the company could sell its products at a lo wer price, so its cutomers would purchase more Coca-Cola products at a lower price. Social The majority of US citizens are excersizing fitter lifestyles. That has strongly influenced the sales of non-alcoholic beverage sector, because many customers are switching to bottled pissing and diet colas like Coca-Cola Light or Zero, instead of drinking beer or other beverages.Additionally, time management is quite 43 % of all households, and it has increased. Customers aged from 37 to 55, are concerned with their nutrition. Also, large portion of the population is within the range of baby boomers age. While many cutomers are getting at older ages in life, they are more concerned in long term increasing their permanence. That will continue to affect the non-alcoholic beverage sector, by increasing the demand, in healthier and other beverages. Technological Some factors that affect the companys actual results to vary essentially from the expected results, are the following 1.The efficiency of companys advertising, marketing and promotional programs, The new technology advances of television and internet that use incomparable effects for advertising through the use of media. Those advances make the products seem attractive. This supports the selling promotion of the products. Coca-Cola in media tends to use this technology so, to sell effectively its products. 2. Entrance of cans and plastic bottles in the past, put one across increased sales volume for the company because they are easier to carry and customers can bin them once they have been used. . Since the technology is advancing continuously there has been entrance of new machineries equipment all the time. Because of that, Coca-Colas production volume has increased sharply compared to few years ago. 4. CCE-Coca-Cola Enterprises have six factories in Britain by using modern technology equipment so to ensure top product quality and quick delivery. In Wakefield,Yorkshire in 1990, CCE assailable one of the Europe s largest soft drinks factory. That factory has the ability to produce faster the cans of Coca-Cola even faster than bullets of a machine gun.