Fall

08

Introduction and Coca-Cola Companys overview

According to a report by United State Securities and Exchange
Commission (2006) the Coca-Cola Company was established in
Atlanta, Georgia, in the year 1886. The company is considered to be
the world number one non-alcoholic beverages company, leading in
manufacturing,

marketing

and

distribution

of

its

product

(concentrate and syrups). Concentrates and syrups are being sold

out to bottling companies for final dilutions and packaging to
consumers, Coca-Cola Company produces a wide range of about
500 different beverage brands across the world. In the late 1920s
the company begins its journey for globalisation and presently
operating in more than 200 countries following a simple global
formula Provide a moment of refreshment for a small amount of
money a million times a day.
The Coca-Cola Company together with the bottling companies forms
the best production and distribution system in the world, the system
is designed in such a way that employees dedicated and put the
companys objectives as their number one priority. Products of this
Stratford Collage of Business and Management UK

company have proven to be the number one soft drink in quenching

consumers thirst of non-alcoholic soft drinks from Moscow to
Montreal and from Beijing to Boston all over the world for more than

115 years of its existence. One of the key objective of the company
is to increase its market share-value, which was achieved by
operating with associates with the aim of satisfying customers and
valuing customers interest as well as protecting companys assets
and minimizing business ricks.

PESTEL ANALYSIS
PESTL analysis is an mnemonic meaning Political, Economical,
Social, Technological and Legal often use is a tool by companies to
analyze the whole EXTERNAL environment from every angle the
company is operating under. Although Coca-Cola Company is the
world leading non-alcoholic beverages company in the world, its still
needs to undertake PESTL analysis to know more about its external
environment,

precisely

the

opportunities

out

there

and

it

competitors so as to maintain its customers loyalty and position.

The Political factors establish the extent as to which the serving
political policies and rules influence the economy or rather the
business organisation. This policies and rules include, how much tax
is impose, trade tariffs and fiscal policies to mention few.
The

economic

factors

are

the

determinants

of

economic

performance that impact the company in one way or the other,

factors such as interest rate, inflation rate, foreign exchange rate

and economic growth. These factors will affect the companys sales,
product price and purchasing power of potentials customers.
The social factors comprises of environmental trends, which
includes cultural trends, population analytics, demographics trends,
seasonal trends to mention few. For example, in the western
countries there is high demand of things during holiday seasons.
Technological

factors

includes

innovations

and

technological

development the affect the organisational performance in either in

positive or negative way. This can be in form of automation of some
organisational.
Legal factors involves both internal and external segment of the
organisation, internal in the sense that the organisation develop
some inside laws and regulations to maintain its operations and
dealings while external in the case where certain law, policies and
regulations are imposed to the company by legislation, government
or regulatory agency.

The impact of international business environment on CocaCola Company:

As studied Coca-Cola Company being on a multinational
manufacturing business environment with high valuable
brand, high market development and vast scope for
product

development

on

an

international

level

the

company own its national and international operations in

an extensive economic segment. This makes the level of

companys turnover as well as the profitability margins
proportionate
development

to
in

the
the

companys

outskirts

expansion

market.

Wide

and
brand

expansion is one of the companys main objectives which

is maintain through producing over 260 million bottles of
different sizes. Aside from the upper mentioned Coca-Cola
product, the company owns Schweppes in the Great
Britain name and produces it in different flavors so also
other

products,

which

include

Capri

Sun,

Friutiser,

monster Appletiser and some sparkling fruit juices.

The

strategic

management

policy

of

the

Coca-Cola

Company focused toward imprisoning the national and

international

market

for

the

purpose

of

quality

improvement, developing strength in the international

market

at

the

environmental

same
strategy

time
on

holding
the

accountability

ground

of

of

business

operations, performance management and developing

environmental standard in an international scale. There is
a rapid change in the economic environmental structure
over the years; in the year 2005 there was high marketing
strategy that was why distribution of products was being
done through advertising campaign. This got success and
yield to 35% increase in international sales force in the
year 2006 while in the preceding year sale strategy was
4

included

through

promotion

techniques

in

the

international market which also yield to an increase in

sales with 39.5% more than the previous year.

Reference
Ahmad ElAmin (2007). Coca-Cola reports progress in red
environmental impact William Reed Business Media.
United State.
Anthony McGrew. Researching Globalization Retrieved June 19,
2014 http://www.polity.co.uk/global/research.asp
Brian Nordmann (2004) Organizational Structure
http://www.studymode.com/essay
Coca-Cola Company Sustainability report Retrieved May 28, 2014
http://www.coca-colacompany.com/sustainability/globalchallenges.html
G.A Cole (2006). personnel management theory and practices
Hemisphere D.P publication Ltd.
G Jeffrey (2003) Winners and losers over two centuries of
globalization Retrieve May 29, 2014
http://www.nber.org/papers/w9161
M. Porter (2006). Strategy and society: the link between
competitive advantage and corporate social
responsibiliyu. Harvard Business Review

Thomas Donaldson (2014). Ethical Issues in Business. Retrieved June

15, 2014 from https://www.karlknapp.com/resources/ethics