business strategy and planning
ECONOMIC FACTORS
Economic recession can be one of the most important factors that influence Coca-Cola Company. The behavior of consumers changes during recessions. They have less money to spend and cut back personal spending in response to the overall decline in economic activity. Due to this fact, sells of Coca-Cola Company can fall by in Europe as now there is a recession. However, this worldwide company has huge brand awareness, unique selling point and due to this fact sales are still growing, which shows that that the recession didn’t affect sales volume.
Inflation increases cost of production. Consequently, Coca Cola have to face the uncontrollable problem of increasing their pricing. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. For example, in 2002, a 2 litre bottle of coca cola was 99p whereas today a 2 litre bottle costs £1.98. Due to inflation in 11 years the price of an identical bottle of Coca Cola has doubled in price. Alternatively, Coca Cola could be forced to lower their prices to facilitate an increase in consumption whilst taking a less favorable profit margin.
Ability to penetrate emerging and developing markets, that also relies on economic and political conditions, and also their ability to form effectively strategic business alliances with local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and technology.
SOCIAL, CULTURAL, DEMOGRAPHIC, ENVIRONMENTAL FACTORS
As company is growing, new issues are occurring. The most important to my mind is Using Pesticides.
Coca Cola’s product in India contained toxins such as lindane, DDT, Malathion and chlorpyrifos — pesticides that can contribute to cancer and a breakdown of the immune system.
This environmental issue highly affects Coca-Cola Company. People decided not to buy product from not ‘green’ company, due to this fact, there were drop in sales after the
Economic recession can be one of the most important factors that influence Coca-Cola Company. The behavior of consumers changes during recessions. They have less money to spend and cut back personal spending in response to the overall decline in economic activity. Due to this fact, sells of Coca-Cola Company can fall by in Europe as now there is a recession. However, this worldwide company has huge brand awareness, unique selling point and due to this fact sales are still growing, which shows that that the recession didn’t affect sales volume.
Inflation increases cost of production. Consequently, Coca Cola have to face the uncontrollable problem of increasing their pricing. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. For example, in 2002, a 2 litre bottle of coca cola was 99p whereas today a 2 litre bottle costs £1.98. Due to inflation in 11 years the price of an identical bottle of Coca Cola has doubled in price. Alternatively, Coca Cola could be forced to lower their prices to facilitate an increase in consumption whilst taking a less favorable profit margin.
Ability to penetrate emerging and developing markets, that also relies on economic and political conditions, and also their ability to form effectively strategic business alliances with local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and technology.
SOCIAL, CULTURAL, DEMOGRAPHIC, ENVIRONMENTAL FACTORS
As company is growing, new issues are occurring. The most important to my mind is Using Pesticides.
Coca Cola’s product in India contained toxins such as lindane, DDT, Malathion and chlorpyrifos — pesticides that can contribute to cancer and a breakdown of the immune system.
This environmental issue highly affects Coca-Cola Company. People decided not to buy product from not ‘green’ company, due to this fact, there were drop in sales after the