Part I. Strategic Auditing
Company Background The iconic brand of Coca-Cola dates back to the late 1800’s when a pharmacist from Atlanta created a distinctive soft drink that would take the world by storm. Initially charging five cents per glass out of a soda fountain machine at local convenience stores, Coca-Cola started to grow and expand outside of Atlanta. Once they recognized success as a fountain drink, Coca-Cola then started the production of bottling the beverage. Coca-Cola beverage consumption has since grown and is now around $1.9 billion a day with presence in over 200 differnet countries (Coca-Cola History│World of Coca-Cola, n.d.).
Having such global success has lead to the ability of Coca-Cola to acquire other…show more content… In first world countries like the United States of America, where they originated, Coca-Cola has little need to worry about the risk of political instability. It is when they enter into third world emerging markets the Coca-Cola opens themselves up to instability and corruption risks. The risk faced in these less developed countries could result in a loss of investment if problems were to arise.
Economic Factors: Being a dominant brand worldwide, it means that Coca-Cola products are being bought and sold using many different types of currency. Because of this, Coca-Cola is face with foreign exchange risk. Recently, many economies in Europe have been struggling and currencies have become unstable. This is an economic risk faced by Coca-Cola due to their global expansion.
Social Factor: One of the major external factors that influence the success and decisions made by Coca-Cola is the sociocultural trend towards healthy alternatives. Because the original Coca-Cola was high in sugar and caffeine, which is unappealing to the current health trend, Coca-Cola needed to adjust products or their success would be a thing of the past.
Environmental: Just like that change to a healthier life style, the current societal norms take into consideration the environmental impact of large corporations. Coca-Cola uses a large quantity of water in the production process and has been criticized by their environmental stakeholders. This has caused Coca-Cola to find