Analysis of Business Environment for Coca-Cola Company Research Paper

Analysis of Business Environment for Coca-Cola caller - Research Paper ExampleThe company currently estimates the average drink sales per day at about 1.8 billion with more than 500 cross outs by 2011, four of which are the worlds top-five sparkling brands. Coca-Cola is one of the only trademarks with the universal presence and became a billion dollar brand in 2010. It has sponsored the biggest libertine events in the world, the Olympic Games and the FIFA world cup for more than 80 years (The Coca-Cola community, 2012, par.2). The Company has undertaken many kindly responsibility initiatives including the Haiti Hope Project in 2010 which aimed at developing a sustainable mango fabrication in Haiti. The company attributes its business success to five main factors which are unique and recognized brand , quality, marketing, global availability and ongoing innovation. This paper will explore the business surroundings in which Coca-Cola Company operates focusing on among other thi ngs its SWOT, competitiveness and value chain.Assessment of the General Environment The general environment consists of the external factors which disturb any business. These factors are dynamic and range from Demographic, Economic, Political/legal, Socio-cultural, Technological and Global. All these affect the business of Coca-Cola Company in one way or the other, but two of the most weighty factors for the Coca-Cola would be the economic and technological factors. The behavior of economies of the countries in which the company transacts business has a great diverge on the performance of company products in those countries. Rise in inflation and interest rates trends increases direct costs and reduces production within the exertion as come up as affecting demand for beverages interchange in those markets. When the countries face trade deficits or surpluses, it has an impact on the exchange rate which may be favorable or unfavorable thus increasing or reducing costs of raw ma terials and products because of increases or decreases in the value of exports/imports. The companys products in those markets are affected accordingly. Economies facing budget deficits, as opposed to surpluses, may increase taxes in order to make up for the deficits, again impacting on turns business in terms of increased business costs. Increase in rates of outlay may favor the uptake of beverages sold by Coca-Cola, but increase in savings by the populace will be detrimental to the companys business. Changes in GDP levels, as well as business cycles are additional aspects that have an influence on the industry and business in which the company operates under the economic factor. Technologically, industry as well as firm benefits and/or vulnerabilities would be associated with taking or failing to take advantage of new generational purpose technologies, research and development, converging technologies and process architectures as part of the aspects of technology. In addressing business environment, competition is a key element that ceaselessly comes to mind. The five forces of competition that are employed to establish the position of the company relative to its competitors in the industry as given by Porter are potential of new entrants, bargaining power of