Coca-Cola is one of the major beverage companies in the world. The company has engaged in various activities, which has helped it to gain a competitive advantage over other companies. The presence of multiple factors enables the success of a company, and one of them is the global environment. Therefore, this paper will look into the general climate of the Coca Cola Company.
One of the elements of the global environment of Coca-Cola is economic trends. The first economic trend that is relevant to Coca Cola Company is the increase in rates. The increase in rates has affected the revenue of the Coca-Cola Company because these rates consume a lot of money. The second economic rate that is relevant to Coca Cola Company is the GDP growth (Karnani, 2014). A high percentage of GDP growth shows that the economy is moving in the right direction. This issue is relenting for Coca-Cola since it will be able to grow where there is a good economy. Thirdly, the unemployment rate is relevant to Coca-Cola since it may be seen as an avenue to get cheap labor, which will help to improve the productivity of the company.
One of the sociocultural trends that are relevant to the Coca-Cola Company is social attitudes. Many people have developed a positive social attitude toward Coca-Cola; hence it is receiving hue revenue from the sales of its products. Secondly, concern for the natural environment is relevant for the Coca-Cola Company so that it can be able to reduce the rate of pollution (Gaither & Austin, 2016). Lastly, a shift in work may affect the company in the sense that some employees may move to leave the workplace with less workforce.
The demographic trend that is affecting Coca-Cola is that the increase in population has increased the number of customers. The high amounts of customers help the company to gain huge revenue from increased product sales (Elmore, 2013). Also, income is the demographic trend affecting coca cola Company, whereby the product's product is affordable for all the people regardless of their level of income.
Over the past three years, legal trends have affected Coca-Cola. For example, Coca-Cola has faced strict legal rules as it has been forced to adjust its operation to avoid pollution of the environment. Also, Coca-Cola has been forced to ensure that its products are for human consumption by eliminating harmful substances such as high fructose.
Elmore, B. J. (2013). Citizen Coke: an environmental and political history of The Coca-ColaCompany. Enterprise & Society, 14(4), 717-731.https://www.cambridge.org/core/journals/enterprise-and-society/article/citizen-coke-an-environmental-and-political-history-of-the-Coca-Cola-company/46DCBF1D57B158BFBE2B5C843C0E5EE4
Gaither, B. M., & Austin, L. (2016). Campaign and corporate goals in conflict: Exploringcompany-issue congruence through a content analysis of Coca-Cola's Twitter feed. PublicRelations Review, 42(4), 698-709.https://www.sciencedirect.com/science/article/pii/S0363811116301655
Karnani, A. (2014). Corporate social responsibility does not avert the tragedy of the commons.Case study: Coca-Cola, India. Economics, Management, and Financial Markets, 9(3), 11-23. https://www.ceeol.com/search/article-detail?id=26644
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