Pest Analysis of Coca Cola Essay - 627 Words

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Pest Analysis of Coca Cola

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The PEST Analysis identifies changes in the market caused by: Political, Economical, Social and Technological factors. Political Analysis and Factors: Those Non- Alcoholic Beverages like; 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-Cola's Operations. 1.Changes in Laws and Regulations like; changes in Accounting Standards, taxation requirements (tax rate changes, modified tax law interpretations, entrance of new 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, ability to maintain or earn share of sales in worldwide market compared to rivals. 3. Political Conditions, specifically in international markets, like; civil conflict, governmental changes and restrictions concerning 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 effectively strategic business alliances with local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and technology. Economic: In 2001, the recession influenced the companies operations, but because of aggressive actions the US Economy estimated to have returned in positive growth in 2002. Currently, because of global recession, Coca-Cola can 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 technology. By researching for new products is cost effective, the company could sell its products at a lower price, so its cutomers would purchase... Show More

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