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1. The PESTLE model outlines macroenvironmental issues impacting an industry. Discuss one or two PESTLE forces impacting the carbonated soft drink industry, discussing whether these one or two have had a positive or negative impact on industry attractiveness.

1. The PESTLE model outlines macroenvironmental issues impacting an industry. Discuss one or two PESTLE forces impacting the carbonated soft drink industry, discussing whether these one or two have had a positive or negative impact on industry attractiveness.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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1. The PESTLE model outlines macroenvironmental issues impacting an industry. Discuss one or two PESTLE forces impacting the carbonated soft drink industry, discussing whether these one or two have had a positive or negative impact on industry attractiveness. 2. The Five Forces model seeks to provide insights into industry attractiveness. We know from the case that the (i) concentrate producer industry is significantly more attractive than the (ii) bottler industry. For each of these two industries (i.e. choose one force from each industry), which of the Five Forces do you see as most relevant in explaining this variance in attractiveness. You should discuss one force from each industry. The VRIN model tests whether a particular resource or capability can sustain competitive advantage. Choose what you see as Coca-Colas OR Pepsis most important resource or capability and, using VRIN, how you see this resource or capability as important in sustaining this firms sustained competitive advantage. Corporate strategy seeks to examine how and why firms diversify into related or unrelated businesses. In the case, we see that Coca-Cola and Pepsi both acquired their bottlers at various times. Using the three tests of (a) the industry attractiveness test, (b) the cost of entry test and (c) the better off test, discuss why you think the concentrate producers undertook these acquisitions, and if you think this decision to make the acquisitions was a good one. 3. 4. Some authors argue that firms should simply seek to maximise profits (while acting legally) Other authors suggest that firms have corporate social responsibility to improve the quality of 5. life in the communities where they operate. As overconsumption of carbonated soft drinks has created negative health consequences, how should the industry balance these responsibilities to shareholders and their communities in terms of specific new strategic actions?
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