An Introduction To A Product 's External Environment

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An analysis of a product’s external environment can be very taxing to an organization. The framework for analyzing external environmental factors include: competition, economic growth and stability, political trends, legal and regulatory, technological advancements and sociocultural trends (Ferrell & Hartline, 2014). Coca-Cola is the #1 nonalcoholic beverage company as well as one of the world’s most recognizable brands. It owns or licenses and markets more than 500 beverage brands in more than 200 countries. In an attempt to provide an external environment analysis of Coca-Cola Company, we first examine competition. Coca-Cola has a net revenue of $63 billion and a brand value of $77,839 billion with 123, 200 employees. Its competitors are PepsiCo, Inc., Nestle and Dr. Pepper Snapple Group, Inc. According to the New York Stock Exchange, PepsiCo has a market cap of $105.45 billion, 297,000 employees with revenue per employee at $221.199. Dr. Pepper Snapple Group has a market cap or $8.95 billion, 19,000 employees with revenue per employee at $314,368.

There is no question that Coca-Cola is poised for economic growth and stability. It has 30% of the market share. It’s expected to increase its market cap to $90 billion by the year 2020. It has increased its dividend payments every year for 54 consecutive years. The company has the 72nd highest growth rate out of 182 businesses with 25+ years of dividend payments without a reduction.

Being a global beverage company
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