The managers’ macro environment The macro environment’s main factors are: Economic component Demographic component Technological component Socio cultural component Political/Legal component Global component Economic Component The economic component recession will always affect the consecutive business. According to the Coca-Cola company, it is says to structure their business to make cheap products in the market. Therefore, buyers will get less price quality product from Coca-Cola. It is making better business into the market.
Most consumers will go to shopping malls to have meals and will therefore get a Coke. Some will go to minarets or supermarkets like Careful/Giants/Nuts Practice to get the drink. According tot the illustration shoed in the case study, North America made the most profits by having the most sales distributed followed by Latin Amerce then Europe, Eurasia & Middle East. For a major soft drink company, there has been an economic improvement in many international markets. The Coca-Cola Company have been playing the good growth in their economical environment for the last few years.
Demographic Component Coca-Cola is a global product with universal appeal, the company operates in local environments all around the world, and with each country having its own unique needs and requirements like different languages, promotions or even the types of packaging either in cans, plastic bottles or glass bottles. The managers must make sure that everyone; males/females, different group of ages, from the young to old ones, their income status or where they are from may enjoy the can of soft drink conveniently and comfortably.
For example, Singapore is a bilingual language country but takes English as the first language, so the language on the coke’s package has to e written in English for all the different races of people to understand. Technological Component Managers must move quickly corresponding to the change of technology in the market if the Coca-Cola Company is to go on. From the case study, “Drive efficiency and cost effectiveness by using technology and large scale production to control costs enabling our people to achieve extraordinary results everyday. The Coca-Cola Company has to use different sorts of technologies like computers, pads/phone APS and televisions to convert to everyone locally and worldwide. For example, the Coca-Cola Company may also use pads to take orders to save paper work. The effectiveness AT ten coca-cola company Is ten perseverant Ana ten way AT marketing that impact the business. The Technological improvements make it simpler to do the business in different countries.
The Technological improvements also made the difference in style and colors to the cans and plastic bottles of Coca-Cola. The technological improvement machineries gives advanced level to create their product quickly and easily. For example, according to the case study structure and culture, hey have invented the structure called “the Coca-Cola system”. Socio-cultural Component Since Coca-Cola is available worldwide, it impacts the trends, lifestyle and patterns of behavior in people.
The taste of Coca-Cola is like by many people so friends and family members will introduce the brand to one another, therefore more and more people will get to know the brand and love it. For people who are dieting, they may consume the diet coke. There are many choices for this brand to choose from so people will get influence by friends or family members too. Political/Legal Component Coca-Cola Company has to look out for the outcomes of changes in laws and regulations worldwide such as deregulation of industries, increased emphasis on environment protection and prevarication of companies.
For example, if the government decided to change the law for the drinks industries by making the workers take hygiene training, the Coca-Cola company have to give the money to train their employees that will lead to higher cost. If the Coca-Cola Company do not meet the standard laws, the government will be able to take action on them by giving warning letters, fines or even Jail. The health saws are the main concern for political factor. The changes in the accounting and finance may change the business environment.