Essays on Social and Economical Factors Affecting Coca-Cola Case Study

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The paper 'Social and Economical Factors Affecting Coca-Cola" is a good example of a management case study. Organizations that are known to involve in the analysis of macro-environment usually get definable opportunities in identifying factors such as economic or social. Due to the nature of the business environment, it is very important that these factors are widely evaluated. The said factors are usually categorized into two namely; internal and external factors. This study will widely focus on external factors putting emphasis on both economical and social factors within an organizational environment.

These factors widely influence a business thus making the environment to be either dynamic or stable. A stable environment is one that ensures that customers are highly satisfied and this is constant for a long duration of time whereas, in a dynamic environment, customers’ desire constantly changes over a certain duration of time (Ronald, 2009). The study will use the Coca-Cola Company as our case study so as to understand both key economical factors and social factors and their impact on the organization. In coca-cola company, it is evident that they have widely affected the profitability and success of this company.

The effects within coca-cola company have been since widely to impact cost, capital availability, and the way demand is made by customers on the company goods and services. In the Coca-Cola Company, economical factors widely describe and reflect on global financial conditions. These factors are namely; interest rates, unemployment rates, gross national product, and exchange rates. Clearly, when countries, where Coca-cola company has branches, are undergoing structural change or it’ s expecting to undergo one in the near future, it creates an economic strain within the company environment.

Further, there are certain countries where Coca-Cola Company operates in have foreign currencies restrictions which have a wide impact on the company operation and performance. In the Coca-Cola Company, social factors locally, internationally, nationally, or even regionally have a profound influence on the company's normal operations that usually impact on the firm performance and outcome. For instance, in the Coca-Cola Company, indigenous culture usually coupled with ethnicity and organization are interrelated to one another. Just as language is a social factor that is renowned across the globe, it is a serious factor within the Coca-Cola Company since the company has established branches globally.

Ronald (2009) asserts that the extent to which most organizational personnel within Coca Cola participate in a discourse of most scientific languages determine the kind of research likely to be produced by this particular company both in regional and global perspectives. The company has realized that understanding different global socio factors provides a wider insight into the kind of research and its nature and how it will be valued.

Evidently, arriving at a major decision within internal and external organizational systems involved understanding and focusing on social-based factors. Increased level of education is another of the Coca-Cola social factor that impacts company performance and operation. Higher-level education allows more people to earn high income that it could possibly be. Increased income has enabled the company to create opportunities that allow individuals to purchase more goods and services (Ward & Peppard 2002). The dimension of social factors is very essential in Coca-Cola since it determines the values of goods, standards, and services. It is essential to note that within Coca-Cola Company social factors are divided into two those connected to demographics and values.

Demographics is used to measures various traits of socio groups and people who are considered to make up a society. It analyzes gender, age and income are the most common example used when it come s to the characterization of demographics. Ward & Peppard (2002) asserts that values refer to various beliefs and behaviors within Coca-Cola that impact on product demand. Changes in societal values are known to affect how the company operates.


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