PESTLE ANALYSIS OF COCA COLA COMPANY

THE COCA-COLA COMPANYINTRODUCTION & HISTORY

Refreshment is a language everyone understands, and no one speaks it better than CocaCola. Sometimes a soft drink is more than just a carbonated, sweetened beverage. Sometimes it represents an exciting lifestyle. Soft drink-giant Coca-Cola was one of the first on the bandwagon of promoting soft drinks as a way to excite your life. Starting as early as 1907, ads described the drink as "full of vim, vigor and go." John Pemberton, an Atlanta pharmacist, invented the drink one day in 1886 while seeking a quick headache cure. He put it on sale for 5 cents a glass in his neighborhood pharmacy. Back then, the syrup was mixed and then added to a glass of seltzer water upon purchase. Pemberton's bookkeeper, Frank Robinson, christened the drink "Coca-Cola" and wrote the name in the distinctive script that is still used today. The name comes from the extract of coca leaves and kola nuts contained in the syrup. Eventually in 1929, the cocaine was completely removed from the formula, leaving caffeine to provide the kick. But Pemberton wasn't a businessman and didn't understand the drink's potential. Between 1888 and 1891 he sold the company in bits and pieces to local entrepreneur Asa Griggs Candler.

Woodruff, whose son Robert became president in 1923. Robert Woodruff was the man responsible for the rapid expansion of the Coke brand throughout the world -- during World War II, he decreed "every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs the company."

MISSION STATMENT
In the early 1990s, Roberto Goizueta shared the following mission statement in a booklet entitled 'Coca-Cola, a Business System toward 2000: Our Mission in the 1990s'. With Coca-Cola as the enterprise, ours is a worldwide system of superior brands and services through which we, our franchises, and other business partners deliver satisfaction and value to customers and consumers. By doing so, we enhance brand equity on a global basis. As a result, we increase shareholder wealth over time. To succeed we will make effective use of our fundamental RESOURCES: brands, systems, capital, and, most important, people. Because these resources are already available, one might assume we need only to draw on them for achieving our goal. Nothing could be more wrong.

PESTEL ANALYSIS
Political Analysis for Coca-Cola
Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. The following are some of the factors that could cause Coca-Cola company's actual results to differ materially from the expected results described in their underlying company's forward statement:-

Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions

Economical Analysis
Being flexible and willing to change to satisfy consumers needs, has enabled Coca-Cola to exploit the economies of scale that was gained by its global marketing and at the same time making its products appeal to local taste, which these have earned the company an enormous profits quarterly. As Coca-Cola has expanded over the decades or even nearly a century, the company has benefited from the various cultural insights and perspectives of the societies in which business is done. No doubt of the remarkable experience it has, it is still very committed to local markets, to paying attention to what people from different cultures and backgrounds like to drink, and where and how they like to drink it, to remain competitive and to develop more new drinks to satisfy its markets.

Social Analysis for Coca-Cola

industry Foreign environment factors have influenced the Coca-Colas strategies in international marketing. Culture has a tremendous effect on peoples preferences and perception. Language is one of the aspects of culture that marketers must take care of, in term of translating product name, slogans and promotional messages so as not to convey the wrong meaning. Coca-Cola did not look much into this aspect when entering into the markets of countries like China and Taiwan as the literal translation of Coca-Cola in Chinese characters mean, bite the wax tadpole. Changes are necessary in international marketing for consumers products, as it is important that the products suit ones taste, preferences and fulfill ones needs. CocaCola has continued changing, improving and developing new drinks to appeal to local tastes. After discovering that Coke did not appeal as much to Japanese consumers, Coca-Cola developed over 30 new drinks for the Japanese market, which inclusive of Asian tea, English tea, coffee and fermented-milk drink. . There is a large population of the age range known as the baby boomers. Since many are 3

reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage by increasing the demand overall and in the healthier beverages.

Technological Analysis for Coca-Cola

Some factors that cause company's actual results to differ materially from the expected Results are as follows: The effectiveness of company's advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. Introduction of cans and plastic bottles have increased sales for Coca-Cola as These are easier to carry and you can bin them once they are used. As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago

Legal Analysis
Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process.

Environmental Analysis
Environmental analysis examines the local, national and world environmental issues. According to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the environmental laws imposed by the government.