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Coca Cola Pest Analysis


Founded in 1886, Coca Cola is one of the largest companies in the world, they are the world leaders in the manufacture of non-alcoholic drinks market. In the UK the Coca Cola company joined forces with Schweppes.

In order for a business to analyse the external environment within which the business operates, they can produce a PEST analysis. A PEST analysis involves Political, Economic, Sociological, and Technological influences.

Political

Political influences on business often takes the form of legisliations, such as Health and Safety, Competition, Fair Trading, Advertising. In addition changes in government will often force firms to rethink their policies.

Economic

The current state of the economy will have either a positive or negative effect. For example if the economy was in a boom situation businesses can take advantage of expansion opportunities. However there are many other factors which would influence a business in terms of the economy, they include taxation, levels of unemployment, exchange rates.

Sociological

Sociological changes will have an effect on businesses in terms of changes in lifestyle and trends...




PESTEL analysis of the macro-environment
There are many factors in the macro-environment that will effect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between:
• Political factors. These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities...