International Business Environment Evaluation: Coca Cola (Essay Sample)

INTERNATIONAL BUSINESS ENVIRONMENT EVALUATION: COCA COLA
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Political and cultural future challenges of coca cola company.
Coca-Cola is a global company that deals with the production of beverages. These beverages are products of industrial processes that may include undesirable byproducts or contaminants (Wahlen , 2014).
Like other companies in any nation, coca cola does not operate without legal intervention. These are some of the future challenges that await this company. Coca-cola can get a challenge through government regulations aiming at water rationing. Because coca cola products are mainly solutions, water is essential(Kachru, 2005). Government measures to suspend coca cola operations for the reason of water shortage can be a threat to this business. Also, a government may ban some coca cola products because of the beverage contents which do not seem healthy for its citizens (Greenwald, 2007).
Peace deterioration between countries can affect transportation of beverages from one country to another. This is a major challenge especially in countries which get into war frequently. The market that coca cola could have utilized is at risk for the reason of political instability (Khanna, 2010). Most of the international conflicts are brought about by politicians whose intentions are to climb the ladders of power without minding safety and rights of citizens. This hinders the market not only for coca cola but also that of other companies (Gillespie, 2015).
Coca-Cola company at times may be forced to devise strategies to counteract cultural beliefs which can protect against their products. Methods of promoting the company's products to overcome such beliefs must be carried out with a lot of care. Such cultural teachings include religious bodies which are against the consumption of coke drinks (Montgomery, 1996). As much as their claims can be invalid, the company should be prepared for this challenge and find out ways of disapproving them or better their marketing strategies for the other cultures though the claim remains. Some cultures also claim water abuse of coca cola, and if they are unsolved then this remains unsettled challenge to the firm. According to such cultures, water should not be used for any reason other than domestic duties (Ireland, 2012).
Economic future challenges of coca cola company.
Coca-Cola is a for-profit company, and so its financial operations are of the essence. As political regulations of this company are carried on, banning of its operations due to an inadequacy of water affects its finances. The case similar to what happened in India may repeat itself because human population keeps increasing especially those in developing countries. Human activities like industrialization keep affecting natural resources every time (Stimpsom, 2015). The cost of purifying water because of pollution before using it to make their drinks is going to rise. Measures to tackle such a challenge have to be put in place early enough.
Alleged toxins contained in coca cola products like pesticide residues, malathion, and lindane, are carcinogens (substances which are potential to cause cancer) and are also causes of immune system failure (Majaro, 2013). Such contents blackmail the company's name whether it's true or just false allegations. When this happens, the company's market goes down affecting its sales. Competitors take advantage of this blackmail and capitalize on their services to create their unique products (Paul,2012).
There is a continued campaign in teaching people about healthy drinks. There is a challenge in future if coca cola does not come up with more healthy drinks which contain a range of nutrients. If this does not happen, the future economic status of coca cola will tragically decline (Bothma, 2011).
Regulatory bodies will be keen checking on standards of consumer products especially now and in future considering the fact that human activities cause pollution frequently. Economic status of coca cola stands at a blink if all these considerations are not taken care of to improve the company's income ant maintain it (Porter,2001).
Technological future challenges of the coca cola beverage company.
Alleged environmental damage cause by improper technological equipment and procedures are potential future challenges in this aspect. Inadequate advertisements of respective products can market the company to increase sales and maintain its income (Nisbet,2001). For now, coca cola is among the best companies when it comes to advertisements. Bearing in mind the emerging of other potential competitors producing similar products, what will maintain the market of coca cola is the ability to maintain the flow of information in public about a product through advertisements. Different technological devises that can help in advertisements will be of great help (Harmon,2005).
The introduction of plastic packaging bottles made the work easier for coca cola. The only limitation to this is environmental pollution which the company has not laid measures to avoid it. Plastic bottles are easy to purchase and makes the buying of drinks efficient since customers do not need to bring glass bottles to retailers or suppliers to exchange for any sodas bought. But this technology has its limitation because some countries are discouraging use of plastic packages (Isdell,2012). Plastic packages pollute the environment by emitting dangerous gasses which contribute to global warming. Global warming is a potential subject of concern in many countries because it causes a lot of environmental hazards no one would like to face. Coca-Cola should come up with ways of either strictly going back use of glass bottles only to evade this challenge in future. Another way this company should maintain the plastic bottles is to repurchase them from its customers especially consumers for recycling purposes. This will help solve the problem of pollution and secure themselves from regulatory authorities in future (Clay,2005).
Another challenge that awaits coca cola is the ability to keep the production of new brands. As much as technology allows them to do this, customers may prefer to keep previous brands. Therefore, coca cola needs to keep the supply of old brands as they make new brands familiar to its potential customers (Hemson,2008).
Technology these days has introduced customers to online markets. Examples of online markets include olx and Jumia markets. The advantage of online markets brings customers closer to sellers which lead to delivery of products to door steps. Coca-Cola must own this challenge to get into the market in future and even design its market to be unique from its competitors. In addition to this technology in other companies has led to the use of machines in almost every activity in industries (Davies,2006). This reduces employment opportunities preferably casual laborers. The kin whose members lose employment from given companies for the reason of embracing machinery technology will lose loyalty to coca cola. Coca-Cola must put this under check in the future to balance between its customers and effects of technology (Grech, 2015).
Competitive future challenges of coca cola.
Prices for coca cola products are comparatively cheaper now. Emerging companies that offer the same products are on the rise. Coca-Cola will be challenged ton maintain their product prices or keep reducing their prices as competitors introduce cheaper commodities into the market. It is a great challenge to do this and maintain the economic status of the company (Cavusgil, 2013). At the same time, customers prefer cheaper commodities over expensive ones. If products from Pepsi are cheaper than a similar product from coca cola then a customer will shift their loyalty to Pepsi challenging coca cola to review their prices (Carter, 2013).
Banning of coca cola products by regulatory authorities jeopardizes the company's operations. This will give competitors a wonderful opportunity to familiarize their products to customers without much competition. This will have to shift loyal customers from coca cola to its competitors. Therefore, Coca-Cola must review the allegations of their products containing harmful contents and keep themselves safe from regulatory authorities' requirements. This will keep their competitors out of an undeserved competition (Kaynark, 2012).
Youths prefer energy drinks and those rich in stimulants. Coca-Cola will be challenged if it does not maintain the production of such drinks in large quantities to meet the youths' demands. If competitors meet these demands before coca cola does then they will take advantage over coca cola in the market coverage.
Physical and demographic future challenges of coca cola.
Water shortage is a natural situation that man does not have control over. Coca cola has to be prepared for a water challenge because human population keeps increasing with increasing activities in the world. Some of these activities are so dangerous because of the effect they bring to our environment. An example is a deforestation that affects water cycle promoting drought situations. This natural situation is a big threat to industries of coca cola. Preparedness is a necessity to this predictable situation (Weir, 2016).
Demographic Future challenges include the predictable consumption pattern among people of all ages. The aging people do not have the energy required to travel to the distribution areas to get the drinks of their choice. It is either coca cola will have to be supplying their products to the aging people to keep their sales at a good level. Without this then it will be challenging to maintain their sales. Teenagers always keep demanding for energy drinks as mention earlier because their bodies are biologically active. Coca-Cola must take the challenge of keeping their dietary ...