Environment

Environment is one of the factors in PESTEL analysis of macro environment.

According to Oxford University Press, 2007 state that environmental factors include
weather and climate change which also known as ‘global warming’. Changes in
temperature can impact on many industries including farming, tourism and insurance.
In the first decade of 21st century, environmental awareness is one of the
significant issues for firm to be considered in a business. Increasing of global warming
may have the impact on many industries such as travel, transportation, farming and etc.
Besides that, natural resources used in production or other activities will be affected due
to the risen of global warming. For an example, increase in energy cost – Energy is a
basic need in human daily life. The main sources of energy are from burning fossil fuels.
Due to the lack of fossil fuels, government has increase the energy cost to create the
awareness of global warming in the community. This will lead to the increase of
production cost and company that consume high energy.
Water resources and agriculture is the two main vital components for Coca-Cola
Company in producing their products and manufacturing process such as rinsing,
cleaning, heating and cooling. ‘Therefore to ensure the long-term sustainability of
freshwater resources and the agricultural products used in our beverages, the Coca-Cola
Company is committed to minimizing our impact on our climate’ (Climate, no date).
Pollution of water will bring a significant impact to Coca-Cola Company to produce the
beverage products which meet the requirement of the company. In order for business to
sustainability that is important to ensure the beverage products are always meet the
company requirement and customer expectation. For example, Coca-Cola Company
‘together with WWF, in developed a plant-level water efficiency toolkit that helps
bottling operations to understand how their water use tracks with best practices within the
Coca-Cola system and find proven water efficiency practices to implement in their
plants’ ( Reduce, no date).

Therefore, government is encouraging more on environmental friendly products and

processes.