Unit 1 D2: Evaluate How Future Changes in Economic, Political, Legal and Social Factors May Impact on the Strategy of a Specified Organization
Introduction
This report evaluates how future changes in the legal, social, political and economic factors may affect the growth strategies of Coca-Cola Enterprises Ltd. The report also briefly explains how a forecast change in the aforementioned factors may influence the plans of Coca-Cola Enterprises Ltd.
The following are the 4 main factors:
1.Economic Factors
In the future, economic factors will have the greatest influence on Coca- Cola Enterprises Ltd.
The Office of Budget Responsibility forecasts an optimistic GDP growth of 2.0 for 2013. However, given the future threat of the Eurozone crisis, the UK economy is at risk of landing in a triple dip recession. The restructuring of the UK economy is to contribute to the future economic challenges. This would mean that the UK is likely to face stagnant growth as for the case in Japan’s since 1990. It is evident that the pace to recovery will have an impact on Coca- Cola Enterprises Ltd.
Firstly, the above threats may put Coca- Cola Enterprises Ltd in a position to reduce investment which would in turn affect the number of opportunities for growth. The company may have to reduce the number of employees to save money for the future which would increase the unemployment rates of the UK economy.
The forecast is to have an effect on the future promotional activities of the company. This is because; Coca-Cola Enterprises ltd will have to create other means to adapt to the future economic situation.
However, the recession may also act as an opportunity for Coca-Cola Enterprises Ltd to maximize the sale of their products as consumers opt for cheaper products.
In addition, the Eurozone crisis is to have a negative future impact on the exports and imports levels of the business. The firm may be forced to reduce the prices or quantity of exports as the market for their products in Europe would be reduced.
However, this change will definitely generate losses for the firm unless people in Europe are
This report evaluates how future changes in the legal, social, political and economic factors may affect the growth strategies of Coca-Cola Enterprises Ltd. The report also briefly explains how a forecast change in the aforementioned factors may influence the plans of Coca-Cola Enterprises Ltd.
The following are the 4 main factors:
1.Economic Factors
In the future, economic factors will have the greatest influence on Coca- Cola Enterprises Ltd.
The Office of Budget Responsibility forecasts an optimistic GDP growth of 2.0 for 2013. However, given the future threat of the Eurozone crisis, the UK economy is at risk of landing in a triple dip recession. The restructuring of the UK economy is to contribute to the future economic challenges. This would mean that the UK is likely to face stagnant growth as for the case in Japan’s since 1990. It is evident that the pace to recovery will have an impact on Coca- Cola Enterprises Ltd.
Firstly, the above threats may put Coca- Cola Enterprises Ltd in a position to reduce investment which would in turn affect the number of opportunities for growth. The company may have to reduce the number of employees to save money for the future which would increase the unemployment rates of the UK economy.
The forecast is to have an effect on the future promotional activities of the company. This is because; Coca-Cola Enterprises ltd will have to create other means to adapt to the future economic situation.
However, the recession may also act as an opportunity for Coca-Cola Enterprises Ltd to maximize the sale of their products as consumers opt for cheaper products.
In addition, the Eurozone crisis is to have a negative future impact on the exports and imports levels of the business. The firm may be forced to reduce the prices or quantity of exports as the market for their products in Europe would be reduced.
However, this change will definitely generate losses for the firm unless people in Europe are
Bibliography: Books 1.Bevan et al ( 2010) BTEC National Business Level 3 Book 1, Pearson Education, UK 2.Wilmshurst , J and Mackay, A (2002)The Fundamentals and Practice of Marketing 4th Edition, Heinemann, UK Websites 1.www.gov.uk/ (viewed on 18 -12-2012) 2.www.hm-treasury.gov.uk/(viewed on 18 -12-2012) 3.www.statistics.gov.uk//(viewed on 18 -12-2012)