Pest Analysis Coca Cola

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

PEST ANALYSIS: Coca-Cola Bottlers Philippines

Political Factors

Coca-Cola, which specifically falls under the non-alcoholic beverage industry, is


regulated by the government and government agencies like the Department of
Health (DOH) and the Food and Drug Administration (FDA) which are mandated
by the laws protecting the safety and health of the consumers – e.g. RA. No.
10611 “Food Safety Act of 2013”. The company and its business operations are
also affected by the changing laws and regulations (environmental laws and
foreign jurisdiction) and policies regarding taxation (tax rates and tax
interpretations) and accounting standards. The government has control over the
manufacture of the company’s products and may penalize the company when it
fails to meet the mandatory requirements and standards of law.

Economical Factors

Local, national, and even the global economy can greatly influence the
operations and transactions of the company. The different taxation policies,
exchanges rates, monetary issues, international trade and industrial factors also
affect it. Currently, the Philippine Congress approves the House Bill No. 292 “An
Act Imposing Excise Tax on Sugar Sweetened Beverages (SSBs)” which seeks
to levy, assess and collect an excise tax of Php 10.00 per liter of SSBs. The
imposition of tax is aimed to generate a Health Promotion Fund to address health
concerns that stem from the consumption of SSBs.

The Philippine soft drinks industry generated stronger growth in 2016 due to
increasing disposable incomes. Despite the increasing disposable income levels
of Philippine consumers, unit price remained an important factor influencing
purchasing decisions in soft drinks. However, growth across the entire soft drinks
industry is expected to slow down over the forecast period

Coca-Cola has also been consistently updating its products and creating new
flavors to meet consumer wants. But it is making minimal effort in creating
healthier alternative drinks to accommodate consumers who are health-
conscious.

Social Factors

The changing lifestyle trends, consumer attitudes, opinions and buying patterns,
media views and perceptions of health and welfare, family culture and values and
major events and influences can greatly affect the organization. The customers’
pursuit of healthier lifestyles is one major social change that Coca-Cola has to
look into. Their increasing trend of preferring healthier alternative drinks affects
the demand of carbonated products, which ultimately can affect Coca-Cola.

Technological Factors

Advancement in the company’s machineries and equipment has contributed to


the production of larger quantities with better quality. For example: There is an
increase in sales volume of cans and plastic bottles because they are easier to
carry and throw once they are used as compared with the glass bottles. Other
than that, Coca-Cola has also used modern channels in advertising, promotions
and marketing like the internet, social media and television to attract more
consumers.

You might also like