Table of ContentsIntroductionBusiness EnvironmentChanges and ChallengesChange is Big, Lasting, and DisruptiveIntroductionPepsiCo, in collaboration with San Diego-based biotechnology company Senomyx, is in the final stages of the development of a “taste modifier” that would essentially trick taste buds into thinking they are consuming more sugar than what is delivered. The ingredient, called "S617" and still requiring regulatory approval, would theoretically allow PepsiCo to reduce the amount of sugar and high-fructose corn syrup in high-calorie drinks such as regular Pepsi, while still retaining the same sweet cola taste. no to plagiarism. Get a tailor-made essay on 'Why violent video games should not be banned'?Get the original essayCoca-Cola, meanwhile, continues to experiment with steviol glycosides, which are sweet, calorie-free extracts derived from of stevia plants from South America. The first version of the cola, called Coca-Cola Life, was launched in Argentina this summer. In the United States, the company is reviewing results from a recent market test of the stevia-infused Sprite Select and Fanta Select line extensions. Mid-calorie sodas. New formulations could potentially serve as a basis for both companies' future advertising efforts while protecting them from health concerns. critics and politicians who blame soda for the country's obesity epidemic. The negative attention has hurt sales: soda consumption continues to decline. To elaborate on the demographic, cultural, political, social, environmental, technological, economic and legal environment in which businesses operate. It also explains the relationship between business, environment and society and how to embrace the changing environment within the organization. This analysis outlines the Coca-Cola Company's changes and challenges over the past five years and how the company is handling them. The environment refers to the influences, circumstances, constraints and opportunities that surround and affect the business organization. There are two types of microenvironmental factors and macroenvironmental factors. Internal factors close to the organization called macro-environment. This can be controlled by the organization. The microenvironmental factor affects the decision-making process and business performance. These factors include consumers, suppliers and competitors. External factors that affect organizational plans and strategies are called the macro environment. It is not controlled by the company organization. Which includes political, economic, technological, social, environmental and legal factors. These factors are beyond the company's control. New laws, demographic changes, tax changes, government policy changes are examples of macroeconomic changes. Successful management must be able to adapt to the environment. Moreover, it is important for a business organization to analyze the business environment and changes in different factors of the environment such as a change in technological environment, economic environment. In the decision-making process, the organization analyzes various alternatives and chooses the best one. It provides information to decision-makers. It helps an organization to develop strategies and policies, understanding the changing environment helps to diversify the activities in the new area and maintain thedynamism of the company. Additionally, the impact of change in the business environment on the organization by effectively using the PESTEL business organization can provide benefits. to change the environment and develop strategic plans to deal with threats. PESTEL analysis is the most popular method which focuses on the external factors of the business in which it operates. These are useful tools for understanding market growth and decline, operations direction, opportunities and business position. SWOT analysis is a tool that recognizes the strengths, weaknesses, opportunities and threats of a business organization. This analysis answers the two questions, where is an organization currently? And in what direction is the organization going? Identifying SWOT analysis is important for business organization to successfully complete the planning process to achieve the business objective. Business Environment Over the past few years, Coca-Cola Company has faced many changes in the business environment. The company created an equivalent with an American sweet test product, but it was a commercial failure and Coca Cola changed strategy and returned to its old formula. Consumers are becoming more health conscious as companies come up with new products to meet their needs, such as Diet Coke and Coca Cola Zero. The company purchased the bottling business in South Korea, providing access to a retail store and easier entry into Japan, Malaysia and China. Additionally, China is now the largest consumer of coke in the world. In 2007, Coca-Cola production in China was 3.6 billion tons and exports amounted to 15.3 million tons. By the end of 2007, China's total coke production was 360 million tons. In addition, from 2008 to 2009, the company introduced a new factory with a capacity of 20 million tons. The goal of the Chinese coke industry is to export large quantities from producing countries such as India, Brazil, Belgium and Japan. In 2007, China exported 22% of its total production to Japan. This report shows the positive developments and changes in the environment of China's coke industry. (Chinese Daily, newspaper website) Political factors: Coca-Cola, soft drinks fall under the category of FDA (Food and Drugs Administration) and the government has the power to fine Coca Cola Company who did not meet the standards. their standard legal requirement. Burdens imposed by laws and regulations, such as tax requirements, environmental laws and foreign jurisdictions, may affect their entry into a foreign country. Changes in the soft drinks business could result in pricing pressures, competitive products and their ability to maintain global market share. In the international market, if the government changes frequently, there might be a restriction on the transfer of funds from one country to another. However, the Coca-Cola company follows the rules and regulations set by the government. For two years, the government has been very concerned about the environment. The company's adjustments to planets and proper waste settlement methods result in a decline in the chances of being affected by protection laws. Political conditions overall had natural effects on the coca cola industry. This has a positive impact on the rooster's reputation. Economic Factors: The economic analysis explores the impacts on the national and global economy as well as inflation and recession. Economic factors are the factors that affect theproduction and sales of the company. If the economic situation is not good at that time, deciding to increase its price would have a very negative impact on the production of Coke. The soft drinks industry has high sales outside the United States. There has been an improvement in the soft drinks company in major international markets like Brazil, Germany and Japan. These markets play a big role in the growth of the non-alcoholic products industry. In countries like Pakistan, the unemployment rate is very high. In Pakistan, the Coca Cola company employs 1,800 people. Over the past two years, the Pakistani company has invested $130 million. If the economic variables are positive for the country, the impact is positive, otherwise the impact is bad. Social factors: Many people are leading healthier lives. Changes in lifestyle, population growth rate and carrier attitudes are affecting the soft drinks industry, so many people prefer to have bottled water and soft drinks instead of beer. The need for healthy products, bottled water and juices is greater in daily life. Consumers aged 37 to 55 are more concerned about nutrition. Older people are increasingly concerned about extending their lifespan. This type of social trend can affect the demand of the soft drinks industry. Increased consumer awareness of modern lifestyle could pose a challenge for the Coca Cola Company. However, the company recognized the needs of consumers and began producing diet coke, drinks, juices and sports drinks. Many nutritionists believe that maximum consumption of Coca Cola could be harmful to health, especially for young children. Daily consumption of Coca Cola can affect health after a few years. Technological Factors: Television and Internet technology that affects companies' advertising, marketing, and promotional programs. The media makes attractive advertisement for the product as it helps in increasing the sales of the product. The introduction of plastic bottles could have increased Coca Cola's sales. It's easy to use and dispose of them. Technological advancements led the company to create a new product like cherry rooster in 1985, but the consumer prefers an original test of coca cola, so some time the technology may have a detrimental effect. The Coca-Cola Company is constantly introducing new technologies due to the introduction of new products. the production level of the machinery enterprise increases significantly. The Ardagh glass is the latest technological achievement from Coke Company which is an eco-friendly bottle. It has won several awards for its lightness. Environmental factors: Coca-cola focused on energy management, water management and climate protection. The company has made progress in these areas but still has a lot of work to do. In 2007, the company used about 300 billion liters of water to produce Coca-Cola and is among the world's largest buyers of fructose corn syrup, sugar, coffee and citrus fruits. It is the country that consumes the most cans and bottles. At the same time, the company announced its return to communities and nature. A quantity of water equal to the quantity used by the company to produce its drink. The company now has three goals: Recycle water so it can be safely returned to the environment. Reduce the level of water consumption in the manufacturing process.Replenish water in communities through a global network of local partnerships. While Coca Cola offers advanced recycling The program company decides, through education, that it can prevent Littre. Corporate support keeps Australia beautiful in Australia, keeps America beautiful in the United States, and keeps the British group in Britain. Weather conditions and temperature changes can affect many industries like the coke industry. The company has also invested in fashionable outfits made from recycled polyethylene terephthalate bottles. Legal Factors: Laws and political changes affect business behavior. An increase in the minimum labor wage and stricter requirements for businesses can influence the productivity of organizations. Sometimes a change in laws also creates new opportunities for the business. Coca-Cola Company has been facing a legal problem in recent years. In 1970, the Coca Cola company refused to share its formula with India. The company therefore stopped producing locally for 16 years. EU member countries ban Coca Cola due to the poisoning of 100 children in Belgium and the cause appears to be false, carbon dioxide which was used in Coca Cola. In 2003, an Indian non-governmental organization said that Coca Cola contained toxins such as lindane and malathion that could cause immune system breakdown and cancer. In India (Kerala), the production of coca and other soft drinks was banned. Changes and Challenges The soft drinks industry is competitive. The company should carefully consider the below factors that affect the financial position and its future results. Awareness can reduce demand for coke: Government officials and consumers are more concerned and conscious about health. Numerous news reports indicate that lawyers and consumer rights advocates have been threatened by the company. In addition, misleading exercise related to the contract for the sale of soft drinks at school. Consumers are more aware of these issues and negative media publicity can reduce soft drink sales. Increased Competition: The soft drink industry is very competitive. Coke must compete with international companies just as we do as local companies where it operates. In many countries where Coke is present, including the United States, Pepsi is a major competitor in the market. Coca-Cola's ability to maintain share sales or net profit in the global market or in various local markets may be limited due to competition. Water shortage and poor quality: Water is the main ingredient of Coca-Cola Company. In many parts of the world, resources are also limited. The company consumes a huge amount of water per year. The demand for water is increasing worldwide and the quality of available water is decreasing, which will increase the production cost of the company and affect profits. Change in Soft Drinks Business Environment: The soft drinks industry has changed due to consumer lifestyle, emerging views on health and nutrition, changing consumer needs and preferences, increasing the number of similar products and the price factor. Additionally, the beverage industry is affected by intermediate products, especially in the United States and European countries. If Coca-Cola Company is unable to adapt to the changing business environment, it will impact profits.