The PEST Analysis Of Coca-Cola

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PEST PEST is a tool that helps analyze features and changes in the external macro-environment that a company operates in (PEST Analysis, n.d.). The acronym stands for political, economic, socio-cultural and technological. There are several benefits to conducting a PEST analysis which include raising awareness of threats, discovering business opportunities and provided the big picture of a business environment (Carrying Out a PEST Analysis, n.d.). Unlike Porter’s Five Forces, which primarily focused on competition, PEST targets outside factors that can affect a company.
Political
The PEST analysis begins by looking at all the political factors. This includes all regulatory agencies as well. Since Coca-Cola’s products are for human consumption, it must abide by the Food and Drug Administration’s (FDA) guidelines and standards. The FDA determines which ingredients a company is allowed to use and how it labels those ingredients. Coca-Cola must make sure that all of its products are deemed safe by the FDA before they can go to market. There are other types of government agencies that regulate companies such as Coca-Cola. The Internal Revenue Service (IRS) develops and enforces rules regarding taxes. Companies have gone bankrupt due to tax issues. Along the same line as taxes is employee rights. With such a large operation, Coca-Cola employees thousands of employees. In the United States, it is the Department of Labor that oversees things like minimum wage, overtime pay and

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