.0 Macro environmental factors that might influence COCA COLA Company.

The macro environmental is a universe of sociological elements that affect a company's ability to serve its customers or sell its goods and services. There are six major macro environment forces: cultural, demographic, economic, natural, political, and technological. (All business definition, 1987)

1.1 Cultural environment.

The cultural environment includes institutions and other forces that affect the basic values, behaviors, and preferences of the society-all of which have an effect on consumer marketing decisions. (All business definition, 1987). Coca cola is a drink that very popular and know well all over the world. Its the most valuable brand that already being recognized. The company has been extremely successful in global marketing, and experts indicate that this success in largely based on product variation and adaptation (Lamb, Hair & McDaniels, p, 114).

Since that whole world are very familiar with Coca cola, so they tent to promote and produce this product to so many place in the world until the company is extend to over 200 countries (with their headquarters located in Atlanta, Georgia) they have immense needs to diversify their products and create a marketing plan that meets the cultural interests of their all customers (vendors) and consumers (drinkers) around the world. (Slideshare-Analysis of the Coca cola Company, 2009). The logo that they use is a very unique can make consumers to remember and easier to being recognized. Even they cant see the word but still can recognized it with the sketches if they do that kind of advertisement. The Coca cola trademark is also recognized worldwide, no matter what language they used and printed on the bottle. However, the Coca cola Company must continue to tailor their marketing and product development to respect each consumers unique values, beliefs, and cultures. (Slideshare-Analysis of the Coca cola Company, 2009). On the research that being found, we know that the Coca cola Company adapting to the external socio-cultural environments is in 2007. The Coca cola Company received a silver award at the Iberoamerican Advertising Festival for their Levate la Mano (Raise Your Hand) commercial that was aired in Latin America. (Marketing Highlights Annual Report, 2007 in Slideshare-Analysis of the Coca cola Company, 2009). Coca cola has also created a unique formulation for Sprite sold in Japan to meet the cultural preference. (Lamb, Hair & McDaniels, p, 114). Language is also one of the aspects of culture where Coca colas carbonated drinks that did not find favor with the eastern countries like China and a Taiwan had to be replaced by products such as Asian Tea and fermented milk drinks. This needed a lot of research and development. (Anonymous, 2009)

To make sure the Coca cola Company known all over the world they must have a very unique strategy and so many ways to tackle customers and consumers so they will know this product even though they do not drink it. To being recognized is very good and sure all customer and consumer will talk about it and indirectly promote Coca cola drink to others. So, socio-cultural environment have been carefully considered in the marketing plan. The Coca cola has successfully developed products to please the 21st centurys health conscious consumer brands like Coca-Cola Zero (their best-selling brand in over 25 years), sport drinks and bottle water. Coca cola must continue to adapt to the external environmental threat of the healthy lifestyle movement through product development and marketing of healthy options available in the product line. (SlideshareAnalysis of the Coca cola Company, 2009).

1.2 Demographic environment.

The demographic environment includes the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistical information. (All business definition, 1987).

Coca cola Company is the company that really cares about culture because they have their product all over the world. So they are also really good in know how to target their market on who, where, and when to buy their product. In this environment, Coca cola company already take over the population of how many consumer that going to buy their product because of the taste, color, and different type of taste based on the same drinks. We know that Coca cola company have others drinks like Original Coca cola, Vanilla Coke and Coca cola Zero that is special drink for a person that want to diet but still want to consume bicarbonate with less sugar. From here we can see that Coca cola know that with their drinks can get all consumers from different place with big population, density, location, age, sex, race, occupation, and other statistical information. They really give a big impact in this aspects because all consumers can see that they have a same favorite drinks, make all them talk about it and enjoy their time together. Research and whole world know that Coca cola have started their business long time ago, they have improved so many in their product so they can make the entire consumer to consume more their drinks.

1.3 Technological environment.

The technological environment consists of those forces that affect the technology and which can create new products, new markets, and new marketing opportunities. (All business definition, 1987).

The Coca-Cola Company follow the times nowadays that technology is very important to improve their business that will make them can produce more product in time and fulfill the market demand. By co-up with the technology today, Coca-Cola Company can design a new bottle, label, and packaging so the Coca-Cola Company would not left behind and will always have a new generation to continue and consume their drinks. Coca-Cola opened its $90 million Innovation and Technology Center in Shanghai, 2009. China produces the second largest number of science and engineering graduates. The increasing awareness of technology example new bottle, new label, design etc. (Slideshare-Analysis of the Coca cola Company, 2010). In todays marketplace, technology is a key player in helping a business stay profitable. Large business like the Coca-Cola Company, must invest in technological research to find ways to become more efficient, and ultimately better competitors. The Coca-Cola Company should address external technological threats by investing directly in applied research to improve recording and monitoring of the sales, production and delivery process between the Coca-Cola Company and the bottling Companies. (Lamb, Hair & McDaniels, p, 90).

Technology can make a Company bring out their best for customer and consumer to buy their product and consume it. So if Coca-Cola Company advances their company to the max in technology, they will gain much more profit and have more new consumer. By doing this, the brand and product itself will maintain forever in the market even the generation change by the times.

1.4 Economic environment.

The economic environment consists of all factors-such as salary levels, credit trends, and pricing patterns- that affect consumer spending habits and purchasing power. (All business definition, 1987).

It is one of the aspects that we need to worried and take a risk about when wants to open a business is economy. We have to see how the economic world that time, is it the perfect time to run a new business and have to check a new target market that is the toughest job because is hard to find a new customer and consumer to consume your product. The United States is currently experiencing an economic recession. This period of negative growth includes higher unemployment, inflation and cost of living expenses while consumers are experiencing lower disposable income and purchasing power. (Lamb, Hair & McDaniels, p, 641). The Coca-Cola Company contracts with numerous bottling companies around the world to create and distribute their beverages. The weakened economy could have a negative impact on any of the bottling companies, which would threaten the stability of the Coca-Cola Company due to the dependent relationship. The Coca-Cola Company must be profitable in order to sustain their investment in communities around the world. Furthermore, small communities depend on large businesses like the Coca-Cola Company to strengthen their own economy and help create social and environmental programs. The Coca-Cola has been very successful in helping other nations grow and become economically stable by investing

millions of dollars back into the countries in which they are operating. (Slideshare-Analysis of the Coca cola Company, 2009).

These aspects also not affect the Coca-Cola directly because they have so many ways that make environment can affect the Company. The total indirect economic impacts of the Coca-Cola system are significantly greater than the figures we present in our 2008/2009 Sustainability. The Coca-Cola system has more than 900 plants around the world. Our ingredients and raw materials are largely sourced locally. And our 92,400 employees represent thousands of communities and many cultures. In addition, our bottling partners employ hundreds of thousands of people around the world and are committed to supporting community investment programs. (The Coca-Cola Company, 2006).

Economical foreign environmental factors have influenced the Coca-Colas strategies in international marketing. Coca-Cola introduced many initiatives to attract the consumer. Consumer has become more attracted to the sport energy drink. Diet Coke is the best innovation of the CocaCola Company and has achieved the largest proportion of beverages market share. The company has consumers over 200 countries. (Anonymous, 2009)

1.5 Natural environment.

The natural environment involves all the natural resources, such as raw materials or energy sources, needed by or affected by marketers and marketing activities. (All business definition, 1987). Natural systems and its resources that are needed as inputs by marketers or that are affected by marketing activities. Green marketing or environmental concern about the physical environment has intensified in recent years. To avoid shortages in raw materials, organizations can use renewable resources (such as forests) and alternatives (such as solar and wind energy) for nonrenewable resources (such as oil and coal). Organizations can limit their energy usage by increasing efficiency. Goodwill can be built by voluntarily engaging in pollution prevention activities and natural resource. (Daniels Cut, 2005)

The Coca-Cola Company is a company that produces drinks for the consumer so their basic natural that they should have is water. To make sure the product or drink s achieves the standard and quality that they have set. All the raw materials and energy sources must be in good condition and quality to produce the best drinks ever. Our commitments are focused where we have the most opportunity to make a difference water stewardship, sustainable packaging, energy management and climate protection. (The Coca-Cola Company, 2006). Since water is the based resource for the Coca-Cola Company to use and produce their product they really taking care of it. They must have large programmed of water treatment that will take care of water that they will use to make drinks. Because usually, all the drinks are made from water that already being used by us and then will be

recycle to make other drinks. Our community water programs are designed to support healthy watersheds and sustainable programs to balance the water used throughout our production process. Our commitment to responsible citizenship also includes conservation of natural resources and protection of the soil, water and climate required to sustain life on earth. (The Coca-Cola Company, 2006).

Seriously Coca-Cola Company really takes care about natural environment because their product also really closed to the energy resources. Everything that being used by the Company are recycle and it is not gone an affect the consumers because the quality that they already set. The water based and the packaging by pack the drinks in the bottle, the Coca-Cola Company still can recycle and manage to handle everything about the natural environment that will affect their business. There is so many way to make it right and safe for the consumer and to the world because each company has their own way, and only they used to that way. The management will brief all the staff that making the drinks so they can follow the procedure that already set by the management. This natural environment will teach the Coca-Cola Company or experience them in knowing that natural is the based and have to take care it to the max so their product still can be produce.

1.6 Political environment.

The political environment includes all laws, government agencies, and lobbying groups that influence or restrict individuals or organizations in the society. (All business definition, 1987).

The Coca-Cola Company must operate within a framework of governmental regulation and legislation. Government relationships with the Coca-Cola Company encompass subsidies, tariffs, import quotas, and deregulation of industries. The political environment includes governmental and special interest groups that influence and limit various organizations and individuals in a given society.

The legal and political issues associated with Coca-Cola Company are almost the same as for all the companies and all registered brands mainly related with consumer rights, competition, health, and safety measures. Due to the intense competition in the industry, government are closely monitoring the competition as firms merge and expend in the hope of dominating growing international markets. It is alleged that Coca-Cola has been enticing retailers from selling other brand by giving incentives in order to increase market share. This is the reason for several legislations. Some social issues with the Coca-Cola Company are mainly related with the promotional, environmental, and friendly company aspects. (Anonymous, 2009)

There is so many other drinks company trying to produce drinks like what the Coca-Cola Company did. So, the Coca-Cola Company must care about their rights when produce their products. Since there are so many other drinks also using the same color, and trying to have the same taste like drinks from the Coca-Cola Company, there is law that has been set by government to handle the right s of every industry. The Coca-Cola Company hires lobbyists to influence legislation and run advocacy ads that state their point of view on public issues. Special interest groups have grown in number and power over the last three decades, putting more constraints on marketers. The public expects organizations to be ethical and responsible.

The marketing department in Coca-Cola Company cant change the color of their trademark because they have known by the red color, so they need to find other way like the use of recyclable or biodegradable packing materials as part of marketing strategy. The major purposes of business legislation include protection of companies from unfair competition, protection of consumers from unfair business practices and protection of the interests of society from unbridled business behavior. The legal environment becomes more complicated as organizations expand globally and face governmental structures quite different from those within the United States. (Daniels Cut, 2005).

Reference

All business definition (1987) Dictionary of Marketing Terms. (http://www.allbusiness.com/glossaries/macroenvironment/4954903-1.html)

Anonymous (2009) An Analysis of the Coca Cola Companys Markets. (http://www.docshare.com/doc/8487/An-Analysis-of-The-Coca-Cola-Companys-Markets)

.Lamb, Hair and Mc Daniel (2005) Marketing, 8th Edition, Thomson Learning. Pg. 91-641 (http://www.slideshare.net/dgclip1981/the-coca-cola-company)

Daniels Cut, (2005) Business Environment. (http://www.articlesnatch.com/Article/Business-Environment/252704)

The Coca-Cola Company (2006) Economic Impact. colacompany.com/citizenship/economic_impact.html)

(http://www.thecoca-

The Coca-Cola Company (2006) Environmental Initiative. colacompany.com/citizensh

(http://www.thecoca-