Coca Cola Analysis | SWOT and PESTLE

Organisations face large challenges everyday which range from human resources to development which seemingly declines output. Coca Cola is one of the primary multinational companies with occurrence in about 200 countries however, plan to take up Coca Cola as my research study.

The invention of Coca Cola can be followed back again to 1886 in new york Habour, staff were constructing the statue of liberty. Eight hundred a long way away, another great America image was about to be presented.

Like many people who change background, John Pemberton, an Atlanta pharmacist, was inspired by simple attention. one day, he stirred up a fragrant caramel-coloured water so when it was done, he taken it a few doors down to Jacobs pharmacy wear it sales for five cents about 3p a a glass.

Pemberton"s bookmaker, frank Robinson, named the mixture Coca Cola, and wrote it out in his distinctive script. To this day, Coca Cola is written the same way. Inside the first 12 months, Pemberton sold just nine glasses of Coca Cola a day. A century later, the Coca Cola company has produced more than 10 billion gallons of syrup.

Over the span of 3 years, which is between 1888-1891, Atlanta business Asa Griggs Candler secured rights to the business enterprise for a complete of about 12 300 about 1500pounds. Candler would become Coca Cola first president, and thec first to bring real eye-sight to the business enterprise and the brand.

Until the 1960s both small town and big city dwellers loved carbonated beverages at the neighborhood soda fountain drug store on April 23, 1985, the trade secret "New coke" solution was released, today products of the Coca Cola company sell than one billion refreshments each day.

However, even with the above achievements of Coca Cola and the building blocks of Coca Cola which has been since years back again, the business has its durability, weakness, opportunity and threats SWOT which should be regarded as able to compete with the marketplace and adjust to changes.

SWOT analysis is a strategic planning method used to evaluate the talents, weaknesses, opportunities and threats involved with a job or in a business venture. It invades specifying the aim of the business opportunity or task and identifying the internal and external factors that are favourable and unfavourable for doing that objective. The technique is acknowledged to Albert Humphrey, who ked a convention at Stanford University or college in the 1960s and 1970s using data from lot of money 500 companies.

S - Strengths; attributes if the individual or company that are beneficial to achieving the objectives.

W - Weakness; traits of the individual or company that are harmful to achieving the targets.

O - Opportunities; external condition that are helpful to achieving the goals.

T - Dangers; external condition which could do harm to the objectives.

Identification of SWOTs are essential because subsequent steps along the way of planning for success of the preferred goals may be produced from the SWOTs. The SWOT analysis is specially helpful in figuring out areas for development. The aim of any SWOT research is to identify the key internal and exterior factors that are important to achieving the objective. The effectiveness of SWOT evaluation is not limited to profit-seeking organizations. SWOT examination maybe found in any decision making situation when a desired end-state (aim) has been described. SWOT analysis may be used in pre-crisis planning and preventive crisis management. SWOT analysis could also be used in developing a recommendation throughout a viability review/survey.

. The goal of SWOT evaluation is to gather, analyze and examine information and identify strategic options facing a community/company or individual at a given time. SWOT Evaluation is a very effective way of discovering talents and weaknesses, and of analyzing the opportunities and risks one will face-carrying out a examination using the SWOT framework helps to target activities into areas where the first is strong and where the greatest opportunities lies. This knowledge id then used to build up a plan of action. The analysis can be performed on product, on something, a firm or even a person. if doneProperly SWOT gives the picture as a whole of the most crucial factors that influence survival an prosperity as well as a plan to act on. SWOT Evaluation is an instrument which guides someone to see where one stand in terms of job potential clients and career development.

In many rival analysis, markets build detailed information of each competitor in the market, focussing especially on their relative competitive advantages and weakness using SWOT analysis. Porters reffered to these causes as the micro environment, he said SWOT consist of those forces close to a corporation that impacts its capability to provide its customers and make money. A change in any of the pushes normally takes a business device to re examine the marketplace place given the overall change in industry information. The overall industry attractiveness will not imply every firm on the market will give back the same success. Firms are able to apply their main competencies, business model or network to attain a profit above the industry average.

Porters five causes include three pushes from horizontal competition risk of substitute products, threat of established competitors and the threat of new entrants and two causes from vertical competition, the bargaining electric power ofcustomers.

Profitable market that yield high profits will catch the attention of new firmsThis lead to many new entrants, which eventually lower profitability for those firms on the market. unless the entrance of new firms can be blocked by incumbent, the income rate will show up towards zero. Rivalry may very well be based on sizing such as price, quality, and development, technology advancements protect companies from competition. This pertains to products and services. companies that are successful with producing new technology are able to change high prices and achieve higher profits.

While PESTEL examination is the macro environment or exterior environment, they will be the factors which are external that will affect the organisation it can be new laws, trade barriers, demographic change and federal government coverage changes, etc.

The following can be categories using PESTEL model which can be as follows

POLITICAL FACTORS: these can be reported to be government policy like the degree of intervention in the economy, for example what goods and services will a federal government want a particular organisation to [provide?what are the piorities in conditions of business support?politics decision can impact on many vital areas for business like the workforce, the health of the nation and the grade of the infrastructure of the market including the road and rail system.

ECONOMIC FACTORS: these range from interest rates, taxation changes, financial growth, inflation and exchange rates. economic change can have a significant impact on a companies behaviour for example, higher taxes rate may deter investment since it cost more to acquire, inflation may provoke higher income requirements from employes and raise costs in addition to a strong currency could make exporting more difficult because it may raise the price in conditions of forex.

SOCIAL FACTORS: any changes which arise in social movements can impacts on the demand for a firms product or any company services and also the availability and determination of people to work. for example demand for sheltered accommodation and drugs has increased while demand for toys is dropping because in britain we now have alot of the elderly.

TECHNOLOGY FACTORS: new technology creat new products and new process, mp3 players, ipods, ipad, online gaming and high definition television are new market segments created by technology developments, online shopping, bar coding and computer added design are all improvements to just how we do business therefore of better technology. Technology can reduce cost, improve quality and to innovation.

ENVIRONMENTAL FACTORS:these includes weather and weather change. changes in heat can impact on many establishments including farming, travel and leisure andinsurance. with major local climate changes occurring scheduled to global warming and with higher environmental awearness this exterior factor is now a significant concern for various firms to consider.

LEGAL FACTORS: these factors are related to the legal environment where firms operate. legal changes can influce the decision of an company and even the costs of the products and servicesthey different types of law which falls under legal which are the following. consumers law, job law, health insurance and safety law. By using PESTEL platform we can analyse the countless different factors within an organisation exterior environment, in some instances particular issues may fit in several categories for example the categoriesexample the creation of financial plan committee by tye labour federal government in 1997 as a body that was 3rd party of federal government but had the capability to set rates of interest was a political decision buthas economical consequencies, if such occursmanagers have tomake decision of where they think it best belongs.

Using PESTEL professionals needs to think about which factors are mostlikely to improve and those will have the greatest impact on them which means each company must identify the key factors in their own environment.

It is also important when using PESTEL analysis to consider the particular level of which it is applied especially with the big companies who produces different goods and servicessuch organisation like COCA-COLA, may also want to distinguish between factors which are extremely local, other that are National and the ones which are global.

Coca Cola company is been affected by so many external factors(PESTEL)like economic, sociable factors, scientific factors, environmental factors, and it is also been afflicted by legal factor for some extents.

THE ECONOMIC FACTORS: when any country economical is poor maybe due to inflation, market meltdown etc, it can affects the price tag on Coca Cola products because during this time period people will not be abl to affor it, they'll preffr to put their money on even more important needs, like food, clothing, accommodation, etc. which will impacts the return of the company because they might not be generating around they use to. Technological factors, this can influence the companys decision because there are different technology i the bussiness world now for example the design on the can or container of different Coca Cola products may need to be changed due to new technology to be able to make the presentation attractive to the consumers of the merchandise and also potential consumers that even if they're not thirsty they'll still be drawn to the product so they are ready and prepared to buy which means this improvement in technology in the area of packaging make a difference your choice of the business and so also social factors which really affects the selling of the products, reaonable number of individuals in the country inhabitants right now falls under the age where by beverages drinks like coke are no more best for their health insurance and people who usually buy the products are advice by their doctors never to consume goods like this again which can really have an effect on the sales of the business.

Environmental factors or climatic conditions for example during winter more and more people do not take in anything cold so as not to affect their health insurance and vis visa during summer which is mainly hot people consume alot of drinks and this help boost the sales the sales of the products, so the weather condition of varied countriescan determine the level at which people take cool drinks like Coca Cola.

Legal factors which may be reported to be laws of a particular country cant the sales of Coca Cola for example duty payments in the united kingdom, the Coca Cola fo example pay taxes in the united states and this taxes some times influence the price tag on the product, plus some times before you can sell something in the united kingdom is sometimes different from the way its been offer in other country that Coca Cola erxist in sothis have an effect on the packaging of Coca Cola products for example some flavours of different products of the company which comes in the uk might not be found in other countries which Coca Cola exist in, as well as the law of the united states can affect your choice making of the company in some specific areas.

Apart from the above exterior factors that affects your choice making of the company also, they are the internal factors which influences the company, a few of the inner factors or micro environment which can affect the company(Coca Cola)or that your company functions on may also be categories under external.

The inside factors which is the SWOT research as to dowith the durability, weakness, opportunity, , risks. The Coca Cola company which have been in existence since decades earlier have its power, weakness, opportunity and threahich have an impact on the decision making process of the company.

Strength: Coca Cola company is a multinational company which have over two hundred company in various area of the world, they are the largest manufacturer of beverages round the world today, the business have had the opportunity to achieve a person platform with different kind of products and they produce for each one, the company produce different products which any body of any age can take from coke, fanta, ginger coke, eva normal water, juice, etc they are existing in countries that a few of their major opponents are not existing in countries that a few of their major competition aren't existing in.

Apart from the above strength there is also their own opportunity which they also use againts their opponents one of which is that they have been creating a lot and have been creative no matter your health troubles there is at least a brand of Coca Cola you will be able to take, and also this company make their container them selves which gives them a edge over others who produce similar products like the company.

Threats of the business is that the business have significant competition, the marketplace today is filled with product of similar brand, and little blunder by Coca Cola company will be observed as chance of their competitor that may affect their status in the market, the weakness of Coca Cola company is more of interior that is at the company which can late obligations of staffs or employees salary, conflicts among employees of the business which can affect the production of the company and if their is no team work in virtually any organisation it'll be difficult to attain what the organisation as set out to achieve on time.

In conclusion, carrying out a SWOT and PESTEL examination of a particular organisation no subject how big or small the company, is vital because it helps company to know the status of these company in the market looked after allows companies to work on the area of these weakness and it helps in the decision making of the company so that they would not make decision that will have negative influence on both the company and the customers or consumers of such company.


By using SWOT and PESTEL platform, the organisation can analyse the many different element in company micro and macro environment. and it is not limited by just profit making company, SWOT and PESTEL analyses can be utilized in any decision making situation when a desired end condition has been described. Company like Coca Cola need to do both SWOT and PESTEL analysis to assist in decision making and help to compete with the mass rivals that the business has

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