Pestel for Coke

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  • Topic: Coca-Cola, Cola, The Coca-Cola Company
  • Pages : 2 (483 words )
  • Download(s) : 14
  • Published : January 6, 2013
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PESTEL Analysis for Coke

Coca-Cola is recognized as the world’s most valuable brand.

Political
* Firstly we should mention that Coca Cola is a manufacturer and distributer of drinks and syrup that fall under a variety of food laws, mainly the FDA (Food and Drug Administration). If those standards (may differ strongly) are not met, potential fines may apply. The FDA ensures and certifies that ingredients meet the laws globally. * Changes in laws, especially new tax laws or tax rate changes, may also have a strong impact on Coca Cola as it is a globally operating brand with a total revenue of 46,5 billion $. * Unsure political situations or ongoing wars in several countries prevent the company from entering and/or investing in one country to exploit the market.

Economic
* The Company is currently using 64 currencies which leads to an impact on revenue along with fluctuating exchange rates. Additionally the export figures depend on a strong or weak Dollar. * Interest rates may be changed by the Federal Bank, especially during a time of recession (which is expected in the US). * Imminent inflation may cause a demand for higher wages

Social
* Difficulites to enter markets with all of the Coca Cola products may appear * Should consider different religious beliefs when marketing a country. * Growing awareness of health topics: they addressed that by introducing dietary products (Coke Zero, Diet Coke). Will have to adapt to young customers wish to stay fit and healthy. That also offers the chance to market new products. * As target one main target group is children and young adults (including their families), Coca Cola will have to have an eye on the growing global population, especially in core markets (USA, Mexico, Germany) * Anti-American tendencies in some countries, especially muslim countries.

Technological
* Technological changes are mostly important for packaging reasons. Worldwide production is automatic and...
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