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Competitive Environment and Macro environmental Factors

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Competitive Environment and Macro environmental Factors

Introduction

Businesses are impacted by both competitive environment and macro-environment. Macro-environmental factors are not easily controlled and can have more influence over the company. Macro-environment factors affect the performance of a company, how it makes its financial and operational decisions, and eventual strategic planning to guide its operations. Competition in the environment influences the ability of the company to operate smoothly within business environment. This paper analyzes both the competitive and macro-environment factors for Coca Cola Company and how they impact the company.

Macro-environment factors that affect the operations of Coca Cola Company include laws and regulations, economy, technology, demographics, and social values. A company that is successful not only reacts to the macro-environment but also their competitive factors to promote their businesses. Competitive environment include rivals, new competitors, customers, substitute products, and suppliers (Zhang, 2019). The company’s competitive advantage enables to satisfy the needs of their clients. Such companies which has been able to operate successfully in both competitive and macro environment is Coca Cola. The company is one of the largest soft drink companies globally.

Coca Cola has many brands such as Minute Maid, Sprite, Fanta, Diet Coke, and Coca Cola brand name. The company has been in operation with aim of increasing its customer base, by enhancing good relationships and bonding with customers at all levels. The company values its customers and ensures they listen to their feedbacks regarding their products. The company is able to offer products that suits the needs of the client making it are a preferred company for the clients. The company’s management keeps in mind the changes in the external environment and how changes in such factors can be a success or a risk in the market (Zhang, 2019). The company has device mechanisms of ensuring such factors re overcome to continue in operation and remaining profitable.

The company has to remain proactive in addressing customer needs. This has been observed by devising a strategy that aims at addressing obesity such as indicating the number of calorie per serving and ensuring the product has lower calorie. This has been observed all its products such as Fanta, Sprite, Diet Coke, and Minute Maid. Regulatory environment has not been without hurdles. This has seen some of the sugary drinks over 16 oz banned in schools, while more than halve of the states levied increased sales tax of such drinks.

The company’s competitive environment includes its global presence. The main success factor associated with company’s competitive position is the recognition of its brand. The company’s brand is recognized by close to 100 percent of the global population. The company has been seeking to make its brand more recognizable in the market. Through variation of the packaging, the company has been able to impact sales and its global positioning (Zhang, 2019).

The company has been able to take advantage of technological advancements to its advertisements and take advantage emerging opportunities across the globe. Besides, it has been able to produce products that suit the cultural needs of the society before they put their products in the market. Through use of distribution channels that are not rivaled by their competitors has seen the company beat competition. Besides, diversification of its product line by including sale of concentrates, beverage bases, and syrups to fast food restaurants and home carbonated products has seen the company beat competition and become number one global soft drink dealer.

Conclusion

Both the competitive environment and the macro environmental factors have provided challenges and opportunities for the company. This has seen the company grow its global presence while beating competition within the market.

References

The Coca-Cola Company. (2020). Mergent. https://libauth.purdueglobal.edu/login?url=https://www-proquest-com.libauth.purdueglobal.edu/docview/1860750941?accountid=34544

Zhang, Z. (2019). Risk Analysis of Two Leader Drink Company: PepsiCo and Coca-Cola. Asian Business Research4(3), 42.

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Competitive

Environment

and

Macro environmental

Factors

Student

s Name

Institutional Affiliation

Couse

Instructor

Date

1

Competitive Environment and Macro environmental Factors

Student’s Name

Institutional Affiliation

Couse

Instructor

Date