Pestel Analysis Essay
The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws and foreign Jurisdictions might affect the book of the company as ell as their entry in foreign country. Other than that, the changes in the nature of business as non-alcoholic beverages can gain competitive product and pricing pressures and the ability to improve or maintain the share in sales in global market as a result of action by competitors.
The political conditions of the country are also basis of the study, especially in internal markets and other governmental changes that affects their ability to penetrate the developing and emerging markets that involves the political and economic conditions. However, Coca Cola continuously monitoring the policies and regulations set by the government. Economic Factors Economic analysis examines the local, national and world economy impact which is also includes the issue of recession and inflation rates.
The non-alcoholic beverage industry has high sales in countries outside the U. S. According to the Standard and Poor’s Industry surveys, “For major soft drink companies, there has been economic improvement in many major international markets, such as Japan, Brazil, and Germany. ” These markets will continue to play a major role in the
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Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non- alcoholic beverage industry by increasing the demand overall and in the healthier averages. The demand for carbonated drinks decreases and this pulled down the revenues of Coca Cola.
Technological Factors Technology is the main focus of the analysis where the introduction and the Pestle Analysis (Coca Cola Bottlers Philippines Inc. ) By deluded 121 emerging technological techniques are valued. This creates opportunities tort new products and product improvements in terms of marketing and production. As the technology advances, new products are introduced into the market. The advancement in technology has led to the creation of cherry coke in 1985 but nonusers still prefers the traditional taste of the original coke.
Environmental Factors 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 Legal Factors 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.