Coca-Cola PESTEL Anaysis

  • 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]
  • Bedard, P. (2017) ‘Obesity becomes worldwide epidemic, US is the fattest.’ Washington Examiner. [Online] [Accessed on 26 July 2017]
  • 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]
  • Coca-Cola. (2016) ‘Who we are- infographic.’ [Online] [Accessed on 22 July 2017]
  • Coca-Cola. (2017) ‘Political Engagement Policy.’ [Online] [Accessed on 22 July 2017]
  • De la Mere, T. (2017) ‘Brexit could trigger worse crash than 2008, says Vince Cable.’ The Guardian. [Online] [Accessed on 17 July 2017]
  • 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]
  • Forbes. (2017a) ‘How Coca Cola’s ‘Bridge’ Program Can Help Over The Long Run.’ [Online] [Accessed on 17 July 2017]
  • Forbes. (2017b) ‘Refranchising likely to again be a drag on Coca-Cola’s Earnings.’ [Online] [Accessed on 24 July 2017]
  • Gee, R. (2017) ‘Pepsi sees ‘infinite possibilities’ in ecommerce.’ Marketing Week. [Online] [Accessed on 17 July 2017]
  • Latchem, R. (2017) ‘Reform producer responsibility scheme says Coca-Cola.’ MRW. [Online] [Accessed on 19 July 2017]
  • 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]
  • Ramakrishnan, S. (2017) ‘Coca-Cola to sell Coke Zero in U.S.; profit beats.’ Reuters. [Online] [Accessed on 26 July 2017]
  • Roderick, L. (2017) ‘Coca-Cola: We need more courage to become a growth-orientated business.’ Marketing Week. [Online] [Accessed on 26 July 2017]
  • Sauven, J. (2017) ‘If you care so much, Coke, why aren’t your bottles 100% recycled?’ The Guardian. [Online] [Accessed on 19 July 2017]
  • 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]
  • 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]

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