Bottled Water Essay

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Determinants of Global Supply and Demand for the Industry Supply Conditions Major factors influencing supply Bottled water is a safe, healthy, convenient, food product that consumers use because of its refreshing taste and because it is an excellent way to stay hydrated. Bottled water continues to grow in popularity because people appreciate its consistent quality, taste, and convenience. Consumers also choose bottled water over other beverages because it does not contain calories, caffeine, sugar, artificial flavors or colors, alcohol and other ingredients. The International Bottled Water Association (IBWA) is the authoritative source of information about all types of bottled waters. Founded in 1958, IBWA's membership includes U.S. and international bottlers, distributors and suppliers. IBWA is committed to working with the U.S. Food and Drug Administration (FDA), which regulates bottled water as a packaged food product, and state governments to set stringent standards for safe, high quality bottled water products. In addition to FDA and state regulations, the Association requires member bottlers to adhere to the IBWA Bottled Water Code of Practice, which mandates additional standards and practices that in some cases are more stringent than federal and state regulations. P.E.S.T. is an acronym that stands for Political, Economic, Social, and Technological factors that influence a macro environment. PEST is split into four categories, political, economic, social, and technological influences, which are all external factors. A PEST analysis identifies what external factors are going to affect bottled water companies in the coming months and years. POLITICAL – business decisions which are influenced by political and legal decisions. Political decisions can affect bottled water companies for the good or the bad due to the fact that if taxes increase consumer

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