coke assignment pestle

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with more than 500 sparkling and still brands. Led by Coca‑Cola, the world's most valuable brand, our Company’s portfolio features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca‑Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, we are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy our beverages at a rate of 1.7 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, support active, healthy living, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Together with our bottling partners, we rank among the world’s top 10 private employers with more than 700,000 system employees.

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Page 1: Coke Assignment Pestle

The Coca Cola Company (NYSE: KO) is the world's largest beverage ‑company, refreshing consumers with more than 500 sparkling and still

brands. Led by Coca Cola, the world's most valuable brand, our ‑Company’s portfolio features 15 billion dollar brands including Diet Coke,

Fanta, Sprite, Coca Cola Zero, vitaminwater, Powerade, Minute Maid, ‑Simply, Georgia and Del Valle. Globally, we are the No. 1 provider of

sparkling beverages, ready-to-drink coffees, and juices and juice drinks. Through the world's largest beverage distribution system, consumers in

more than 200 countries enjoy our beverages at a rate of 1.7 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, support active, healthy living, create a safe,

inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Together

with our bottling partners, we rank among the world’s top 10 private employers with more than 700,000 system employees.

Page 2: Coke Assignment Pestle

Political

Economic

SocialTechnological

Legal

Environmental/Ethics

PESTLE

Page 3: Coke Assignment Pestle

Political• Drop in sales is a possibility if legal action is taken against Coca-

Cola and because it functions in many parts of the world, it has to keep up with the changing laws that may effect the operation of business thereafter.

• Also, since all its earnings are consolidated and expressed in U.S.dollars any fluctuation in foreign exchange and rate of interest can have a weakening effect on its Financial Performance.

• Large operating expenses in other more powerful expenses, reduces profits. Also, American tax regulations require that companies be taxed for repatriating cash earned overseas, which also deals a negative blow on total revenues and earnings. (Financial Times 2011).

Page 4: Coke Assignment Pestle

Economic• The price of aluminium (a key material for canning) has climbed in the past few years,

from $1700 in June 2009 to its current price of $2500 (The Economic Times, 2011). This steady increase in price could force Coca-Cola focus more on other packaging materials.

• Many economists are predicting that the world’s economic climate is shifting toward Brazil, Russia, India and China (The BRIC nations) as with the persistent financial troubles plaguing America and the euro zone debt crisis, higher unemployment and inflation rates is showing progress.

• According to the Goldman Sachs Global Economics Commodities and Strategy Research (2010), ‘Global equity market cap may rise from $43tr presently to $145tr in 2030.The BRICs’ equity market cap may rise from $8tr to close to $59tr by 2030.’ This forecast shows that equity distribution levels are shifting toward the emerging markets.

• It is essential that Company like Coca-Cola, who can experience long term growth, focus

their expansion strategies on penetrating these emerging markets to drive growth and increase market share.

Page 5: Coke Assignment Pestle

Social

• The Coca-Cola Company announced a multi-year partnership with (RED) to raise awareness and money for the Global Fund's efforts to virtually eliminate mother-to-child transmission of HIV by 2015. The partnership includes an initial commitment of more than $5 million USD from The Coca-Cola Company over the next four years. This commitment will fund marketing awareness campaigns activated through global Coca-Cola music initiatives and programs. As part of the $5 million USD contribution, a minimum of $3 million USD will be donated directly to The Global Fund to purchase anti-retroviral medicine and distribute literature.

• It's not Christmas until the Coca Cola advert starts

Page 6: Coke Assignment Pestle

Technological

• Coca cola introduced ways by which the consumers can obtain their product quite easily, by the introduction of dispensing machines and vending machines

• Coca-Cola is one of Google's premier partners for the launch of Google Wallet, which allows consumers to put credit card information into smartphones and transmit this information via a "tap" at contactless point-of-sale terminals.

• Coca-Cola Freestyle Launches Virtually on Facebook Coca-Cola Freestyle fans the chance to become online "mixologists."

Page 7: Coke Assignment Pestle

Legal• A law firm says it has filed suit against Coca-Cola over groundwater contamination in Paw Paw. April 27,

2010.

The suit by Weitz & Luxenberg P.C. alleges that the company sprayed waste water onto the ground near their Paw Paw plant for years that led to heavy metals leeching into the water supply.

Groundwater tests have shown high levels of heavy metals like arsenic, iron and manganese, which have been linked to cancer. The company has been providing bottled water to some of those people, but now the effects are hitting the bank accounts of homeowners.

80 residents are participating in the lawsuit. They are seeking restitution for the contamination, which has impacted real estate values. Community members have also reported health issues, including gastrointestinal, kidney and central nervous system disorders.

• The legal and political issues related with coca cola company are almost the same as for all the companies and all registered brands mainly related with consumer rights, competition and health and safety measures. Due to the intense competition in the industry, governments are closely monitoring the competition as firms merge and expand in the hope of dominating growing international markets. It is alleged that coca cola has been enticing retailers from selling other brands by giving incentives in order to increase market share.

Page 8: Coke Assignment Pestle

Environmental/Ethics

• Use of Phosphoric acid in making of Cocacola which is infact otherwise used as "rust converter", by direct application to rusted iron, steel tools, or surfaces.

• Obesity concerns have posed a threat to the carbonated non-diet Coca-Cola products. The matter is receiving more media and public health sector attention, especially in relation to the level obesity in young children

Page 10: Coke Assignment Pestle

Undifferentiated

Approaches to developing target marketing strategies

Product

Price

Promotion

Place

Undifferentiated market

Page 12: Coke Assignment Pestle

London 2012 Olympic GamesWorldwide Olympic Partners