Coca Cola Pestle Analysis

INTRODUCTION

The Coca-Cola Company (Coca-Cola), the worlds leading soft drink maker, operates in more than 200 countries and sells 400 brands of nonalcoholic beverages. Coca-Cola is also the most valuable brand in the world. Coca-Cola is a globally recognised successful company. The Coca-Cola story began in May of 1886 and continues for more than a century through the times of war and peace, prosperity and depression and economic boom and bust. As late as the 1990's, Coca-Cola was one of the most respected companies in the world, a master of brand —building and known as a very successful management team. Since 1998, the company has been struggling with issues identified in this analysis.

Observers wonder if Coca-Cola has lost its fizz and

North America (including The Minute Maid Company) now includes Puerto Rico, added from Latin America. Europe and Eurasia changed theirs names to Europe, Eurasia & Middle East. At the same time, Africa & Middle East, excluding the reclassified Middle East segment,

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changed their names to Africa. Figure 1.2 summarizes the organizational structure of Coca-Cola.

During the first quarter of 2001, Asia Pacific was renamed Asia. In 2002, Egypt was reclassified from Europe, Eurasia & Middle East to Africa. In 2004, Coca-Cola reclassified certain departments from the North American operating segment to the corporate operating

Bottlers are obligated to purchase all of their concentrates and syrups for designated Coca-Cola trademark beverages from the company's authorized suppliers. Coca-Cola has relationships with three types of bottlers: independently owned bottlers where the company has no ownership interest; bottlers where the company has invested but has a non-controlling ownership interest; and bottlers where the company has invested and has a controlling interest. The company makes investments in selected bottling operations in order to bolster production, distribution and marketing and to simply ensure operations are running smoothly. While the company bottles and sells a limited amount of Coca-Cola products from company controlled and consolidated bottling operations — 8 percent of the company's 2003 worldwide volume — most Coca-Cola products are produced and distributed by bottling operations not wholly owned by Coca-Cola. This does not mean that the corporation is not intimately involved in the operation of the private bottling firms. Through bottler's agreements, the company is able to ensure that their products are being produced and distributed properly. The agreements allow the company to exert a certain amount of power and influence over the