The Coca-Cola Company Business Environment Term Paper - 1

The Coca-Cola Company Business Environment - Term Paper Example The company is the largest in manufacturing, distribution, and marketing of nonalcoholic beverage syrups and concentrates. It maintains its operations in more than 200 countries. The company thus needs to analyze their internal environments for threats and opportunities in order to maintain their position in the ever dynamic competitive field. These different environments fall under the Pestle analysis that helps the company managers to make macro decisions on policy changes. These include taxes, new laws, trade barriers and government policy changes among others. At the coca cola company, economic challenges are posed by inflation due to the economic crisis in most countries. The customer purchasing power is reducing to high oil and product prices. There is also a high rate of unemployment. Moreover, competition from other brands such as Pepsi is increasing. However, the company does not plan to cut down the price of their products. Socially, the lives of customers especially women is changing. Most of them are going out to work. It has resulted in the need for time management and the preference for healthier foods. Many people currently opt for tea, milk, coffee, and juices putting pressure on the Coca-Cola Company. Consumers between the ages of 37 and 55 are more concerned about extending their lives hence focused on nutrition. Soda and sweetened drinks have been associated with obesity. This has affected sales as consumers have become more aware of healthy lifestyles. Both the legal and political environments affect marketing decisions at the company. These include laws, pressure groups like the â€Å"killer coke† and government agencies. For instance, in the 1970s a subsidiary group in India wanted the company to share their secret formula under the Foreign Exchange Regulation Act. They declined and had to halt their operations for 16 years (Kaye, 2006). The producers have been forced to provide exclusive territories to distributors.