Coca-Cola Case Study Essays

Coca-Cola Case Study Essays Coca-Cola Case Study Paper Coca-Cola Case Study Paper Company Overview Coca-Cola drink was created in May 1886 by Dr. John Pemberton in Atlanta, Georgia. In 1891, entrepreneur Asa G Candler gained ownership of the Coca-Cola business. Ernest Woodruff bought Coca-Cola for $25 million in 1919. Coca-Cola gradually grew and became one of the world’s largest soft drinks company. Although Coca-Cola also deals with non-carbonated drinks, its primary products are carbonated drinks. PEST Analysis The PEST Analysis is an analysis to examine the macro-environment of Coca-Cola’s operations (Johnson, Scholes and Whittington, 2008). Political Like most companies, Coca-Cola is monitoring the policies and regulations set by the government. There are no political issues in this instance. Economic There is low growth in the market for carbonated drinks, especially in Coca-Cola’s main market, North America. The market growth recorded at only 1% for North America in 2004. Social There are changes in consumers’ lifestyles. Consumers are more health conscious. This affects the Coca-Cola’s sales of the carbonated drinks as consumers prefer non-carbonated drinks such as tea, juices and bottled drinks. Demand for carbonated drinks decreases and this leads to a decrease in Coca-Cola’s revenues. Technological Furthermore, it many are able to better withstand poor trading conditions in one particular market. If products are performing poorly in Mexican for instance, which is experiencing economic problems, this might be offset by a growth in sales in new market economies in eastern Europe such as Hungary, which consumes 153 serving f Coca-Cola per head per year. Lastly, by operating globally Coca-Cola will be able to engage in joint ventures with businesses in local markets and take advantages of their local knowledge and distribution networks. Anchor bottlers, fort example had the management and resources to match the growth targets of the economy. The principle threat for Coca-Cola arising from the globalisation of the world economy ids competition from other drinks manufacturers. It is possible that the hypercompetitive state of many global markets may create future difficulties for Coca-Cola. For example, drinks companies in the Newly Industrialised countries (NICs) may emerge in the 21st century as a threat to Coca-Cola. In addition just as Coca-Cola has benefited from a convergence of consumer tastes which have accompanied globalisation and which has resulted in consumers all over the world drinking its products, so it may suffer from a shift in global drink tastes away from cola drinks, which form the core of Coca-Colas business. Furthermore there is also evidence in the article which suggests that a global approach is not always effective. Despite producing one of the worlds most famous advertisements, it did not sell much of the product. The business changed strategy as a result away from single theme advertising, to take into account the nature into which the company is selling. Lastly, a global approach requires massive investment and expenditure. If the world economy is in recession which particularly affects the USA and other countries buying Coca-Cola products, then the business may be greatly affected. Furthermore there is also evidence in the article which suggests that a global approach is not always effective. Despite producing one of the worlds most famous advertisements, it did not sell much of the product. The business changed strategy as a result away from single theme advertising, to take into account the nature into which the company is selling. Lastly, a global approach requires massive investment and expenditure. If the world economy is in recession which particularly affects the USA and other countries buying Coca-Cola products, then the business may be greatly affected. Furthermore there is also evidence in the article which suggests that a global approach is not always effective. Despite producing one of the worlds most famous advertisements, it did not sell much of the product. The business changed strategy as a result away from single theme advertising, to take into account the nature into which the company is selling. Lastly, a global approach requires massive investment and expenditure. If the world economy is in recession which particularly affects the USA and other countries buying Coca-Cola products, then the business may be greatly affected. Furthermore there is also evidence in the article which suggests that a global approach is not always effective. Despite producing one of the worlds most famous advertisements, it did not sell much of the product. The business changed strategy as a result away from single theme advertising, to take into account the nature into which the company is selling. Lastly, a global approach requires massive investment and expenditure. If the world economy is in recession which particularly affects the USA and other countries buying Coca-Cola products, then the business may be greatly affected.