Macro Environment

The Macro environment is translated as a range of forces, which affect not only Coca Colas dynamic but also the factors within the microenvironment. Coca-Cola applies the PEST strategic analysis tool before the SWOT analysis in order to measure and asses the market.

PEST analysis Political forces

Coca Cola is a giant in the beverage industry and its products are distributed around the world. However, the company must follow specific rules and regulations in order to be able to maintain the given distribution network. In particular, Coca-Cola is a product of health interest and is constantly undergoing checks by governments and health authorities. A huge example is its distribution in a Muslim country. If Coca-Cola does not bear the Halal stamp on it, the products could be easily banned from all Muslim countries (Bergeaud-blackler, 2016). It is obvious that the political and legal forces affect the place.

Economic forces

In the era of the global economic crisis and rising inflation, production costs are going up (Cooley, Hansen, 1989). Coca-Cola has to deal with the given problem either by increasing its prices or by maintaining them, with a less favorable profit. This creates a crucial dilemma for the company because consumers do not meet the need for survival but the desire. For instance, a bottle of Coca-Cola 1,5lt in 2002 was costing 0.99 while today, after 11 years of increased inflation, the identical bottle costs almost the double price 1.80. It is true that economic forces promptly affect the price.

Social Forces

In my perspective, social and cultural forces are the most important because they relate to the behavior of consumers that are differentiated between countries, cultures, religious beliefs and the individual way of life. In particular, Coca-Cola has to ensure a level of adaptation that is suitable for different markets and preferences in order to be able to properly portray its products the right time and gain consumers interest. One example is the Muslims' fast, called Ramadan, where for 30 days Muslims must be moderately nourished based on their religion and consume strictly only water. Thus, the company this time of period cannot carry out any promotional action of its products because it will seem to be against the habits of a religion and spoil its brand. Another example is the research that Coca-Cola strengthens obesity (Bukowiecki, et al 1983). The given view has polarized advocates of healthy lifestyle, which destroy companys reputation and campaigns. Thus, Coca Colas promotion is inseparably linked to social and cultural forces.

Technological forces

Coca Cola looks very carefully at customers' feedback and invests in their needs for many years, giving the company a human-centric character. With technology facilitation, Coca-Cola creates unique collectible bottles in various shapes as well as sizes and provides them to consumers' through digital events. At the same time, the company creates an online store through which it sells its products at all points of the planet where the Internet can reach. Finally yet important, Coca-Cola enters the music industry in collaboration with Spotify, providing its customers with music on demand and the ability to connect with those who love the same type of music around the world (Coca Cola, 2013). Consequently, each digital consumer automatically connects Coca-Cola with technology and the music industry and the product launches concerning recognition and sales. Technological developments affect the product with regard to its form, shape and size not to mention brand awareness.

Micro environment Company

Coca-Cola is a company with rich and long history. The first drink was created in a Coca-Cola is a company with rich and long history. The first drink was created in a industry. With its rich history and strong working ethic, Coca-Cola has become one of the most beloved and recognizable companies in the world. In this way, Coca-Cola affects the promotion.

Suppliers

It is for granted that suppliers directly affect the product in all its aspects, from the manufacturing to the packaging. They play crucial role concerning the product because they provide resources and raw material to the company. According to Coca-Cola (2013), a sound, stable and ethical supply" are vital to continued success.

Competitors

As in every industry of the economy, there is also competition in beverage. Competitors affect several areas of the business, such as the quality, the promotion, but above all the price. Determining the price of the product based on competition combined with its unique quality make Coca-Cola affordable, indelible in mind, and sometimes essential for every consumer.

Customers

Coca Cola has a huge distribution network to satisfy its customers. The company, in order to optimize its distribution network, acknowledges as targeted customers international retail chains and restaurants. At the same time, the company provides them a training program for more efficient and profitable entrepreneurship that is called Customer Development and Training. For Coca-Cola (2013), customers affect the place of 4Ps.

Task:

1. Provide a comprehensive introduction to the concept of micro and macro environmental forces in the context of marketing