Coca Cola

Topics: Coca-Cola, Diet Coke, Cola Pages: 13 (4311 words) Published: May 22, 2013

* Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in every country except Cuba and North Korea. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand. * Number of worldwide Coke employees, 146,200.

PEST Analysis
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 more Coca-Cola products at a lower price. Social: The majority of US citizens are excersizing healthier lifestyles. That has strongly influenced the sales of non-alcoholic beverage sector, because many customers are switching to bottled water and diet colas like; Coca-Cola Light or Zero, instead of drinking beer or other beverages. Additionally, time management is quite 43 % of all households, and it has...
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