About Coca Cola

As we all know, the Coca Cola 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
product and pricing pressures and the ability to improve or maintain the share in
sales in global market as a result of action by competitors.

The political conditions of the country are also basis of the study, especially in
internal markets and other governmental changes that affects their ability to
penetrate the developing and emerging markets that involves the political and
economic conditions. However, Coca Cola continuously monitoring the policies and
regulations set by the government.
Economic Analysis
Economic analysis examines the local, national and world economy impact which is
also includes the issue of recession and inflation rates. 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. There is a low
growth in the market for carbonated drinks, especially in Coca Cola’s main market,
North America. The market growth recorded at only 1% in 2004 for North America.

Sociological Analysis
This analyzes the ways in which changes in society affect the organization such as
changing in lifestyles and attitudes of the market. Consumers from the ages of 37
to 55 are also increasingly concerned with nutrition. There is a large population of
the age range 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. The demand for carbonated drinks
decreases and this pulled down the revenues of Coca Cola.

Technological Analysis
Technology is the main focus of the analysis where the introduction and the
emerging technological techniques are valued. This creates opportunities for new
products and product improvements in terms of marketing and production. As the
technology advances, new products are introduced into the market. The
advancement in technology has led to the creation of cherry coke in 1985 but
consumers still prefers the traditional taste of the original coke.

Legal Analysis
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.

Environmental Analysis
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.

Last Words
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.