Research Paper on How Society Has Influenced the Growth and Complexity of the Coca-Cola Company

Paper Type:  Research paper
Pages:  5
Wordcount:  1229 Words
Date:  2022-11-13


In the recent past, the world economy has grown tremendously as a lingering fragility relating to the subsidy of the global financial crisis. A three percent growth, the highest to be recorded since 2011, was recorded in 2017 and according to the United Nations economic reports, more growth is expected this year and in future (United Nations, 2018). This improved economy has been made possible by the enhanced society and environments that have favored capital investments, diversity and societal satisfaction. The Coca-Cola company, for instance, is the world's leader in beverage, syrup and soft drink maker globally. Coca-cola operates in more than 200 countries worldwide and runs in both local and global scale (Puravankara, 2007). The company has created a global reach by focusing on the local communities. These local communities comprise the company and their nearly two hundred and fifty bottling companies spread out in different parts of the world (Coca-cola Company, 2017). Thus, this research paper endeavors to research on and discuss how society has influenced the growth and complexity of the Coca-Cola company.

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The United Nation 2018 economic report indicates that in the recent past the world economy has experienced unseen growth in the food industry. In the food sector, the global economy registers over three percent growth since 2011, and this growth is expected to rise in the future (United Nations, 2018). The nonalcoholic and soft drink companies are among the most successful with the highest competition in the beverage industry. However, the leader in the beverage and soft drink producer worldwide- Coca-Cola is, however, experiencing stiff competition and market researchers and analysist fear that Coca-Cola is at the verge of losing its fizz (Puravankara, 2007).

Coca-Cola story started as early as 1886 and ever since has continued through the times of the world wars, the great depression, peace, prosperity, and economic boom in the 20th century. In the 90s the company was a master, a leader and the most successful and respected brands in the world's economic history (Puravankara, 2007). However, since early 2000 till today, the company has been struggling in maintaining the glory and market position. As a result, millions of dollars are spent on advertising.

Coca-Cola company is the world's leader in manufacturing, distribution, and marketing of nonalcoholic, soft drink, and carbonated drinks. The company has licensed and owned 400 brands, in light and diet beverage, juice, coffee, sports drinks, energy drinks, and water both carbonated and non-carbonated. The most popular one being the Coca-Cola drink also known as 'Coke' (Coca-Cola, 2017). Most of Coca-Cola products are finished products and bear the Coca-Cola trademark. The products are distributed and sold in more than 200 countries. In December 2006, Coca-Cola operations were segmented in eight different operation zones, namely, Africa; Latin America; East, South and Pacific Asia Rim; Nor America; Middle East; Eurasia; and lastly Corporate and Bottling investment (Coca-Cola company, 2006).

Coca-Cola turnover increased by approximately 3.8 percent in 2017, and the total annual revenue decreased by over 6.45 billion U.S dollars from 2016 (Statista, 2017). Seventy-three percent of the total revenue is generated from areas outside the U.S, which is the company's domestic market. This shift into the foreign exchange has since the company's financial growth since 2006, the trend, however, has been on a downward slope since 2010 after the depression and is more likely to continue (Puravankara, 2007).

Some key external factor that has impacted the Coca-Cola company include the government and trend policies. For instance, in 2008, the Food and Drug Administration under the United State Department of Health and Human Services, sent Coca-Cola Company a warning, accusing them of violating and misleading consumers on nutrition for Food Safety (Associated Press, 2008). Such instance indicates that the government key factor and plays a crucial role in the success of any business. Government policies also govern and monitor business operations to ensure that the businesses a bind by the State law and respect their consumers.

Another external factor that has greatly influenced the success of Coca-Cola is the foreign market. The last two decades registered the highest financial growth for Coca-Cola company. According to the 2006 Coca-Cola annual report, 73 percent of total revenue is generated outside the domestic market. Brand expansion and the ever-growing distribution network have contributed significantly to the success of the Coca-Cola company (Puravankara, 2007). As a result, these improved global economic situations have created opportunities for global companies such as Coca-Cola, to become global brands and focus on long term policies, reduced inequalities, low carbon emission economy, and economic diversification.

Regarding the above discussion, the Coca-Cola company primary stakeholders have a fundamental role to play to influence and perhaps improve the financial performance of the company. In so doing, the following need to be implemented.

One, involving the local distributors and other smaller beverage companies can be a great way of not only promoting the company brands but will also create an opportunity for research, especially in consumer behavior.

The second suggestion is expanding distribution networks to the untapped market such the interior areas of Africa, Asia, and Latin America. Increasing the geographical coverage and regions of operations will create a new market, one that is not tapped and hence increases sales volume (Puravankara, 2007).

A third suggestion is investing more in the brand image. Even though Coca-Cola is a globally known brand, it has not won an established brand loyalty or customer preference in areas such as Africa and the Middle East countries. Much soft drink and carbonated beverage consumers are extremely dedicated to specific products, and in sporadic cases will opt for other varieties. Thus, stressing on developing and maintaining a superior brand image is very important.

Pricing plays a crucial role in influencing consumer behavior and especially the purchasing power. Thus, consumers are more like to purchase what is affordable and have a competitive price. Therefore, pricing the reasonable products price will significantly influence the bargaining power of the whole distribution chain from the wholesalers to consumers.

Lastly, high quality attracts high sales (Puravankara, 2007). The quality system thus should be a worldwide initiative practiced by every individual associated with the company. Implementing the above suggestions will not only improve the financial performance of the company but will also help Coca-Cola in regains its glory and market position.


In conclusion, this research paper aimed to discuss how society has influenced the growth and complexity of the Coca-Cola company. As presented in the paper, Coca-Cola is the world's leading beverage and nonalcoholic drinks and the sole distributor of the most popular soft drink Coke. Despite the glory, however, in the recent past, the company has been struggling to maintain its market position, and its revenue has been on a downward slope. Nevertheless, the paper has suggested five strategies that need to be implemented by the primary stakeholders to improve the organization's financial performance.


Associated Press. (2008, December 23). FDA warns Coca-Cola over nutritional claims. Retrieved from The Mercury News:

Coca-Cola. (2017). Brands. Retrieved from Coca-cola journey:

Coca-Cola company. (2006). 2006 Annual Report. Coca-cola. Retrieved from

Coca-cola Company. (2017). The Coca-cola System. Retrieved from Coca-Cola journey:

Puravankara, D. (2007). Strategic analysis of the coca-cola company. Burnaby, BC, Canada: Simon Fraser University.

Statista. (2017). The Coca-Cola Company's net operating revenues worldwide from 2007 to 2017 (in billion U.S. dollars). Retrieved from Statista:

United Nations. (2018). World Economic Situation Prospects. United Nations. Retrieved from

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Research Paper on How Society Has Influenced the Growth and Complexity of the Coca-Cola Company. (2022, Nov 13). Retrieved from

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