Coca-Cola PESTEL Anaysis

1702 words (7 pages) PESTEL Analysis

28th Feb 2020 PESTEL Analysis Reference this

Tags: PESTEL AnalysisPESTELFood and DrinkCoca Cola

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  • Coca-Cola is highly involved in political lobbying, as stated on their website. Accordingly, political lobbying is a way that organisations can ensure that their views are heard or at least considered, where political contributions, trade associations and direct advocacy are all tactics employed by Coca-Cola to ensure this (Coca-Cola, 2017).
  • Earlier in 2017 American President Donald Trump revealed he had a penchant for Coke, with his office containing a special button to order Coca-Cola from (Oppenheim, 2017). This, alongside with the fact that the American president is consistently encouraging the success of American based brands, indicate that Coca-Cola carry the favour of their country-of-origin governing body.
  • The revenue of Coca Cola has topped Wall Street expectations as a result of more healthy drinks being on tap (Thomas, 2017). Revenue is reported at $9.702 billion as opposed to a forecast of $9.652 billion, with earnings per share adjusted to 59 cents in comparison to an estimate of 57 cents (Thomas, 2017). This is beneficial to the firm, given that analysts predict a global recession in the coming years is possible as a result of the uncertainty surrounding Brexit and the uncertainty surrounding Trump's administration in the U.S. (de la Mere, 2017).
  • In 2017, Coca Cola announced a number of factory closures across the world in a bid to refine their supply chain, with the most recent being announced in the closure of Coca Cola's South Australian factory in 2019 (The Guardian, 2017).
  • Latest figures indicate that the United States is the most overweight country in the world, with a large percentage of the population being classed as obese, as a result of the easy access and heavy advertising of fast food (Bedard, 2017). In July 2017, Coca Cola announced that they would replace Coke Zero with a new sugar free drink in the U.S., as the organisation explores and promotes supposedly healthier and sugar-free versions of the original Coca-Cola, perhaps as an attempt to appear proactive in curbing the obesity epidemic (Ramakrishnan, 2017).
  • Coca Cola are presently considered a pioneer in adopting the latest technology, with the organisation employing a unique program called the 'Bridge' program, which is aimed at adopting newer technologies within the company faster than competitors (Forbes, 2017a).
  • In the UK, Coca Cola have called for a smarter producer responsibility scheme that boosts recycled materials in packaging, and has called upon the soft beverages sector to agree upon a common strategy and priorities for sustainable production (Latchem, 2017).
  • While Coca Cola sell more than 100 billion single use plastic bottles per year, the organisation plans to increase recycled plastic use in its bottles to just 50%, signifying a lack of ambition from the organisation to tackle one of the largest environmental challenges presented by the plastic pollution in oceans (Sauven, 2017).
  • Associated Press. (2017) 'African-American pastors sue Coca-Cola over soda health risks.' Daily Mail. [Online] [Accessed on 16 July 2017] http://www.dailymail.co.uk/news/article-4697442/2-pastors-file-suit-against-Coca-Cola-soda-health-risks.html
  • Bedard, P. (2017) 'Obesity becomes worldwide epidemic, US is the fattest.' Washington Examiner. [Online] [Accessed on 26 July 2017] http://www.washingtonexaminer.com/obesity-becomes-worldwide-epidemic-us-is-the-fattest/article/2629712
  • Boyd, O. (2017) 'Is it fair to blame Coca-Cola and big corporations for our waste crisis?' The Guardian. [Online] [Accessed on 2 August 2017] https://www.theguardian.com/sustainable-business/2017/aug/02/coca-cola-big-corporations-waste-crisis-plastics-recycling-packaging-circular-economy
  • Coca-Cola. (2016) 'Who we are- infographic.' [Online] [Accessed on 22 July 2017] http://www.coca-colacompany.com/careers/who-we-are-infographic
  • Coca-Cola. (2017) 'Political Engagement Policy.' [Online] [Accessed on 22 July 2017] http://www.coca-colacompany.com/investors/political-engagement-policy
  • De la Mere, T. (2017) 'Brexit could trigger worse crash than 2008, says Vince Cable.' The Guardian. [Online] [Accessed on 17 July 2017] https://www.theguardian.com/politics/2017/apr/29/brexit-could-trigger-worse-crash-than-2008-says-vince-cable#img-1
  • Devlin, P. and Davis, A. (2017) 'Dominos ditches Coca-Cola for rivals Pepsi- a day after Woolworths refused to Stock Coke's new sugar free drink.' [Online] [Accessed on 18 July 2017] http://www.dailymail.co.uk/news/article-4673604/Dominos-ditches-Coca-Cola-Australia.html
  • Forbes. (2017a) 'How Coca Cola's 'Bridge' Program Can Help Over The Long Run.' [Online] [Accessed on 17 July 2017] https://www.forbes.com/sites/greatspeculations/2017/07/07/how-coca-colas-bridge-program-can-impact-its-performance/#33ed1c105207
  • Forbes. (2017b) 'Refranchising likely to again be a drag on Coca-Cola's Earnings.' [Online] [Accessed on 24 July 2017] https://www.forbes.com/sites/greatspeculations/2017/07/24/refranchising-likely-to-again-be-a-drag-on-coca-colas-earnings/#3ef29a061231
  • Gee, R. (2017) 'Pepsi sees 'infinite possibilities' in ecommerce.' Marketing Week. [Online] [Accessed on 17 July 2017] https://www.marketingweek.com/2017/07/11/pepsi-to-prioritise-premium-products/
  • Latchem, R. (2017) 'Reform producer responsibility scheme says Coca-Cola.' MRW. [Online] [Accessed on 19 July 2017] https://www.mrw.co.uk/latest/reform-producer-responsibility-scheme-says-coca-cola/10021741.article
  • Mahoney, L. S., Thorne, L., Cecil, L. and LaGore, W. (2013) 'A research note on standalone corporate social responsibility reports: Signaling or greenwashing?' Critical perspectives on Accounting, 24(4), pp. 350-359.
  • Oppenheim, M. (2017) 'Donald Trump presses a red button on his desk and a butler brings him a Coke.' Independent. [Online] [Accessed on 17 July 2017] http://www.independent.co.uk/news/world/americas/donald-trump-oval-office-desk-red-button-butler-coke-white-house-us-president-a7703056.html
  • Ramakrishnan, S. (2017) 'Coca-Cola to sell Coke Zero in U.S.; profit beats.' Reuters. [Online] [Accessed on 26 July 2017] http://www.reuters.com/article/us-coca-cola-results-idUSKBN1AB1HJ
  • Roderick, L. (2017) 'Coca-Cola: We need more courage to become a growth-orientated business.' Marketing Week. [Online] [Accessed on 26 July 2017] https://www.marketingweek.com/2017/07/26/coca-cola-courage-growth/
  • Sauven, J. (2017) 'If you care so much, Coke, why aren't your bottles 100% recycled?' The Guardian. [Online] [Accessed on 19 July 2017] https://www.theguardian.com/sustainable-business/2017/jul/13/coca-cola-plastics-pollution-oceans-bottles-packaging-recycling-pr-fizz-greenpeace-john-sauven
  • Teece, D. J. (2010) 'Business models, business strategy and innovation.' Long range planning, 43(2), pp. 172-194.
  • The Guardian. (2017) 'Coca-Cola to close South Australia factory with loss of nearly 200 jobs.' [Online] [Accessed on 17 July 2017] https://www.theguardian.com/australia-news/2017/feb/22/coca-cola-to-close-south-australia-factory-with-loss-of-nearly-200-jobs
  • Thomas, L. (2017) 'Coca-Cola's earnings, sales top wall street expectations with more healthy drinks on tap.' CNBC. [Online] [Accessed on 27 July 2017] https://www.cnbc.com/2017/07/26/heres-everything-you-need-to-know-about-coca-cola-earnings.html

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