Micro Environmental Factors Of Coca Cola Company

Introduction

The Coca-Cola Company, a beverage company is the manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. It is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. Its formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its flagship Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries and serves 1.6 billion servings each day. It operates a franchised distribution system dating from 1889 where the Company produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered

There are two kinds of environment- micro environmental factor and macro environmental factor. Internal factors close to the organization are called micro environment. It can be controlled by the organization. Micro environmental factor affects the company’s decision making process and performance. These factors include consumers, suppliers, and competitors. The external factors which affect organization’s plans and strategies are called macro environment. It is not controlled by the business organization. It includes Political, economic, technological, social, environmental and legal factors. These factors are outside of the control of business. We can say that Coca-Cola exists in a complex and stable environment which means that there is a low to moderate level of uncertainty. When the company expands into an unfamiliar or untested region they can experience a locally stormy environment which can be highly uncertain for some time. However, for the most part they stay within their complex yet stable environment, so we can think of them as operating in a “varied”

Social factors:

Many people are spending to attain a healthier lifestyle. Change in lifestyle, population growth rate and attitudes affect non alcoholic industry such that many people like to have bottle water and colas instead of beer.

Consumers in the age group of 37 to 55 are more concerned with nutrition. People in their old age are becoming more concerned about increasing their long life. This kind of social trend can affect the demand of non alcoholic beverage industry. Increase in awareness among consumers and modern life style might be challenge to the coca cola company. However, it has recognized the consumer’s needs and began to produce diet coke like beverages, juice and sport drinks. Many nutritionists advise that heavy consumption of coca cola might be harmful for health especially to young children. Technology factors:

The television and the internet affect company’s advertising, marketing and promotional programs. Media advertised product attractively helps in increasing the sales of the product. Introduction of plastic bottles and cans have increased the sales of coca cola. It is easy to use and bin them. The advancement in technology led the company in creating a new product like cherry cock in 1985 but consumers preferred the original taste of coca cola, so sometimes technology can have a