PESTEL Analysis: Coca Cola, Inc. 1. Provide a PESTEL analysis using provided the
ID: 389282 • Letter: P
Question
PESTEL Analysis: Coca Cola, Inc. 1. Provide a PESTEL analysis using provided the adjoining table. Identify tems pereach factor, in the Domestic and International Opportunities and Threats categories. Identify as many items as possible but make sure theyare relevant and fit specific factor. Fill out the provided table with the identified items, Select1 factor that you consider to be a threat, explain it, and analyze it. Why is it a threat? Why is it important? What do you recommend the Coca Cola leadership do to manage the threat? (Use bullet points and veryshort sentences). 2. Select 1 factor that you consider an opportunity, explain it, and analyze it. Why is it an opportunity? Why is it important? What do you recommend Coca Cola leadership do, in order to fully benefit from it? (Use bullet points and short sentences. 3.Explanation / Answer
Answer 1
The adjoining table is not displayed in the question. However, the PESTEL Analysis for Coca Cola is as follow:
Political factor : Coca Cola consumption has reduced after introduction of soda tax in US
Economic factor: The growth rate of US economy is slow. This had made a huge impact on the sales of Coca Cola
Social factor: Customers have started to focus on health conscious food products. Being a sugar rich product and increasing number of patient suffering from diabetics have slowed the growth.
Technological factor: Role of Information Technology, Artificial Intelligence have made the supply chain efficient helping the company to deliver higher volumes at minimal cost.
Environmental factors: Adhering to environmental norms and reducing pollution.
Legal factors: Products manufactured in past are patented
Answer 2:
The efforts to reduce the sugar content in soft drinks is a positive step in the beverage industry. It had been more profitable for Coca-Cola than expected.
To respond to customers growing attraction to the sweetener, the company is offering small size bottles and cans. In this case, customers pay more for less product.
Recently, everyone around the globe has realized the importance of health and consciousness towards health products.
This had been a major threat for Coca Cola and the management has nicely catered to this issue by introducing diet coke and similar products.
Answer 3:
Opportunity: Rise in demand of beverages in emerging markets.
Actions to be taken: Aggresive marketing and efficient management of supply chain.
Precise demand forecasting.
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