POLITICAL FACTORS
Political Politicization of Coca Cola
The company has been engaged in politics by lobbying with or against political powers for years. The underlying motive behind these acts is that the legislators may consider the company while devising policies. Therefore, the corporation supports politicians or political parties directly, campaigning for their elections and getting consideration later on.
Trump Administration’s Special Support
US former President, Donald Trump once said in an interview that he has developed a deep taste in Coke and he has set a special button in the presidential office to order a coke. The main motive behind this statement was the promotion of Coke and a message to the public to use coke drinks. Therefore, the company has exerted an influence over politics to enhance its revenues and sales.
Faced Banns in Some Nations
Coca-Cola has been facing bans in many regions of the world for a long time. The company has faced a ban in Burma for nearly six decades until recently in 2012 when Coke was allowed to operate in the country. These uncertainties arise from the varying rules and regulations across the global nations. Furthermore, North Korea and Cuba have banned the company to operate the business. These conflicting situations have surfaced even due to the political differences with the US.
Struggle Against China
China has given a fierce time to the company. The trade war which lasted between the Trump administration and China for over four years has hiked the manufacturing cost of products of the Coke. The costs of raw materials like steel besides aluminum have risen thereby raising the price of canning.
ECONOMICAL FACTORS
Covid-19 Adverse Effects on Growth
The company has not shown much resistance against the lockdowns and pandemics. A report shared by macrotrends.com, the company has shown impressive growth of 41.554% in the year 2018 and 38.64% in 2019. However, annual revenue fell by 8.74% whereas the net income declined by 7.55% in the year 2020 due to the imposition of lockdown.
Demand Change
The free trade agreement among the three states of the American continent involving the US, Mexico, and Canada implies free trade between them. These countries have seemed to increase their demands for sugar-free products specifically in recent years. The shifting interest in low calorie and fewer sugary drinks has been observed due to the rising health-conscious attitude of the general public. The overall growth of 8% is observed in the Sugar-Free and Diet Coke products in the year 2018. A further increase in its demand is expected in the coming years.
Quest To Improve Supply Chain
The retail industry relies heavily on the supply chain along with the distribution network. The year 2017 witnessed the closure of several industrial units worldwide. The motive behind the action was to improve the existing supply chain network. The company also closed some of its units in Australia for the same purpose.
SOCIAL FACTORS
Addressing Obesity and Overweight
Americans specifically and the world at large have suffered a lot from obesity and overweight. Large proportions of the population are affected by these issues mainly due to a sedentary lifestyle and excessive use of fast foods. The company is no longer blind to these problems. Low calorie and diet products are launched by the company to address these problems. Other diet products are also under consideration by the company.
Successive Coke Campaign of Share A Coke
The successful campaign launched by Coke under the captions of Share a Coke generated excessive revenues and the brand image of the company. The public was encouraged to buy a coke for their loved one with a customized name on it. This campaign proved to be a massive success for the company. The technique of personalized marketing helped the company to earn revenue. People also felt more connected with their loved ones by sharing a coke. Even, they expressed their excitement by sharing on social media using the hashtag #shareacoke.
Campaigning ‘Refresh the Feed’
The company launched another successful campaign on social media under the title of refresh the feed launched on World Kindness Day. The main purpose of the campaign was to engage with the customers and audience at a personalized level. The company successfully revamped its asocial media accounts for this purpose.
TECHNOLOGICAL FACTORS
Adaptation Of Innovative Technology
Coca Cola has been a success in terms of technological advancement. The company’s bridge system was an exemplary adaptation to the latest tech trends. The application of these trends in the production as well as distribution system gives the company a competitive edge.
Culture Of Innovation
The company invites people to play games to stay young. The company tends to search for the taste of people when people are encouraged to create their own drinks by providing them with combinations. In their way, Coca Cola innovates the developing taste without any special market research.
LEGAL FACTORS
Food Regulations Related to Health
The governments are constantly pushing food-related companies to use health-friendly ingredients in their products. The use of toxic materials in food manufacturing is a harmful practice. Two clergymen once filed a complaint against the company in court. They alleged the company of deceiving the public as these carbonated drinks contain high levels of sugar in them.
Political Contribution
The company has contributed politically in the past years to avoid unnecessary friction with the law. In this way, the company stays connected with the legal systems.
Allegations Of Paying Low Wage
The company is often criticized for its policy of paying low wages to its employees. This situation has attracted a lot of criticism from the labor unions. Furthermore, the company is also criticized for racial discrimination.
Mislabeling
Mislabeling or selling a product using a fake name is a serious crime. The company once mislabeled its grape juice as blueberry and apple juice as pomegranate and faced legal consequences afterward.
ENVIRONMENTAL FACTORS
The Quest to Recycle Used Bottles
Coca Cola has immense sales of drinks worldwide. Along with cans, the major portion of the drink is sold in plastic bottles. A study estimated around 100 billion bottles of plastic are sold annually. However, the company now aims to recycle 50% of plastic bottles in view of environmental concerns.
Ground Water Issue
The company has confronted many challenges related to the use of groundwater. For instance, India has severely criticized the draining levels of groundwater. The availability of fresh and clean water has become a challenge in many regions of the world. Therefore, the company has developed new methods of Rain and Care to preserve already scarce groundwater.
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