Essay on The Challanges Faced by the Coca-Cola Company

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The Coca-Cola Company distributing the Coca-Cola product has faced many macroeconomic variables that indicate trends in the economy. A reduction in consumer confidence in the United States, resulting in lower product sales, has been offset by rising sales in overseas markets. Coca-Cola has combated problems such as unemployment, global warming, and rising interest rates. The Coca-Cola Company looks to new programs to encourage employment, additional ways to provide water for their product, and good management to maintain a healthy credit rating.

Impact of Economic Variables on the Coca-Cola Product
With an American economy that often tethers on the brink of recession, a study of the variables that affect supply and demand of the
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It is believed that unemployment of our youth can threaten the overall global economy. Kent feels by reducing that number of 75 million by 1%, it could boost the economy by $75 billion and challenges other business to reach out to the future – our youth (Moye, 2014). Coca-Cola is committed to addressing the problem of unemployment of younger workers by starting a program call Global Shapers that can help with education and employment of the youth in hopes of stabilizing the economy.
Gross Domestic Product (GDP)
“The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country’s economy” ("What is gdp," n.d.). It is the monetary value of goods and services (“What is gdp,” n.d.). The value can be determined by adding what everyone earned or what everyone spent (“What is gdp,” n.d.). Global droughts have put a damper on Coca-Cola in the past decade (Davenport, 2014). They have caused a shortage of water, which is needed in the production of soda (Davenport, 2014). This has had a negative effect on Coke’s balance sheet (Davenport, 2014). Due to the increasing negative effect, “the company has embraced the idea of climate change as an economically disruptive force” (Davenport, 2014). Global warming is being cited as being a contributing factor to GDP. “Coca-Cola reflects a growing view among American business leaders and mainstream economists who see global

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