The Impact of Environmental Conditions on the Coca-Cola Company

Coca-Cola Company

This paper provides broad information about the environment that determines the success of a company. It elaborates on the population, legal and cultural practices of people in a given environment. It also expounds on the political and social relations of the people in a given state. Additionally, it outlines the importance of environmental, economical, and technological issues in the field of business. It also elaborates the interrelation between businesses, surroundings, and people as well as how Coca-Cola Company adopts new environmental conditions.

Environmental conditions impact the running of business organizations. The environmental conditions that influence the running of an organization internally are known as internal factors, whereas those that affect the running of an organization externally are known as external factors. The external environment is made up of factors such as buyers, sellers, political, financial, civic, environmental, lawful, and technological issues. The external factors are beyond the control of business management. It is appropriate for an organization to acquaint itself with the business environment in order for it to be able to lay amicable strategies and durable policies that could withstand environmental changes. It is also crucial for a business organization to analyze variations that take place in different environmental factors such as differences in a scientific environment and financial environment.

Coca-Cola is one of the largest companies in the world. It manufactures non-alcoholic beverages. It was started in 1886 in the US. Currently, it is in over 250 countries. It works in close relation with many companies in the world. With its partners, Coca-Cola Company produces non-alcoholic beverages that are distributed worldwide.

The business environment of Coca Cola

Coca-Cola Company has undergone many business environmental changes. For instance, the change in consumers’ demands contributed to the Coca-Cola Company changing its strategies. The consumers demand led the Coca-Cola Company to produce beverages such as Coca-Cola zero that met health demands. The continuous rise in Coca-Cola beverage consumers catalyzed Coca-Cola Company into introducing more plants.

Political issues

Coca-Cola Company is categorized as food and drugs administration. The governments in which Coca-Cola plants are situated have the right of imposing fines on Coca-Cola Companies that fail to observe law requirements. Law issues and control measures such as the imposition of taxes, country laws, and foreign authorities impact the advancement of Coca-Cola Company to alien lands (Lamb & McDaniel, 2011). The changes experienced in Coca-Cola Company might be due to competition, variation in pricing, and maintenance of the shares globally. For the past years, political issues have not impacted the development of Coca-Cola Company, hence contributing to its success.

Economic issues

The economic examination involves the observation of the impacts of the economy worldwide. Economic issues are issues that impact the rate of production and sales of an organization. If the economic condition of a given country is poor and Coca-Cola Company decides to hike its price, the rate of business transactions will drop. The consumption of non-alcoholic beverages is very high worldwide; this increase in the rate of consumption plays a significant role in advancing Coca Cola Company. Thus, positive economic changes contribute to the growth of a state economically (Czinkota Ronkainen, 2007).

Social issues

Many people in the world observe and advocate for the maintenance of good health. Change in the mode of living and variation in the rate of growth affects the non-alcoholic industry. Many people prefer taking water to beer, thus increasing the demand for healthy products worldwide. In addition, many old people observe nutrition in order to increase their lifespan (Wilson, 2005). However, non-alcoholic companies encounter many challenges; for instance, currently, many people have realized the effects of overconsumption of Coca-Cola. The rise in awareness among Coca-Cola consumers impacts the production of non-alcoholic beverages negatively.

Technology issues

The invention of television and the internet contributes to the advancement of many industries; many organizations advertise their marketing programs and products via the internet and television. Media aid many organizations in selling their products by appealingly advertising their products. In addition, the invention of plastic bottles has catalyzed the rate at which Coca-Cola Company sells its beverages. To meet the high demand for their products, Coca-Cola Company advances its technology continuously (Gillespie & Jeannet, 2010).

Environmental issues

Coca-Cola Company bases its focus on control of energy, water conservation, and safeguard of climate. Coca-Cola is forced to look into this in order to solve water issues. Coca-Cola uses over 300 billion of water in producing non-alcoholic beverages. To overcome the challenge imposed by this, Coca-Cola has been forced to input measures that would aid in reducing the consumption of water at its plants (Doole & Lowe, 2005). Among the methods advocated by Coca-Cola include recycling of water and reduction of the rate of water consumption in their industries. Weather changes also impact the production of beverages by Coca-Cola, to overcome this, Coca-Cola recycles almost all of its raw materials and products.

Legal issues

Variation of laws and political practices in various countries affects the advancement of organizations. Some law variations contribute to the success of companies. Coca-Cola has faced many challenges for the past few years. For instance, the refusal of Coca-Cola to unveil its productivity formula to India led to India banning Coca-Cola from producing beverages in India. In addition, Coca-Cola consumption was banned in Belgium after its Coca-Cola products were associated with the death of a hundred young children. Thus, negative legal factors contribute to the decline of the profits made by Coca Cola Company.


Czinkota, M & Ronkainen, I. (2007). International Marketing.New York: Cengage Learning.

Doole, I & Lowe, R. (2005).Strategic Marketing: Decisions in Global Markets. New York: Cengage Learning EMEA.

Lamb, C & McDaniel. (2011). Essentials of Marketing. New York: Cengage Learning. Gillespie, K & Jeannet, J. (2010). Global Marketing. New York: Cengage Learning.

Wilson, J. (2005). Human resource development: learning and training for individuals and organizations. New York: Kogan Page Publishers.

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