Coca cola Enterprises Essay Example | Topics and Well Written Essays - 3000 words

Coca cola Enterprises - Essay Example In order to establish itself an enhanced space in the market, the company engages in social responsibilities. Coca Cola acts as a global employer and is ranked within the top 10 organisations (The Coca Cola Company, 2012). Products/services and geographic scope The company has launched some customised strategies while entering into international expansion plans. When entering into a new market, it tends to focus on business volumes. It invests in brand promotion through the use of visual and print media. Such brand promotional activities have helped the company to develop as well as to enhance its distribution. The distribution network is entrusted with the responsibility of the distribution of beverages to different corners of the targeted countries (The Coca Cola Company, 2010:23). In terms of expansion policies, Coca Cola is focusing on the creation of outsourced manufacturing, bottling and distribution that will work to cater for the local needs. The company engages in innovation in the realm of products, packaging, equipment and other activities designed to gain further penetration into both established and foreign markets. The invention of recyclable packaging through the use of plants helps to cement the company’s sustainable image. In Europe, Coca Cola focuses on enhancing its packaging activities. The family and economised plans serve the needs of all types of consumers. The company has formed ties with various sporting events, with a view to creating brand awareness and enhancing the loyalty of consumers. It has also diversified its business by entering into the production of juice and energy drinks (Bodden, 2008). Competitors Coca Cola’s main competitor within the soft drinks industry is PepsiCo; a firm that poses a serious threat to the company. Moreover, some local brands also provide some kind of competition for Coca Cola. Any kind of competition is healthy for a market, as it benefits the consumers (Porter, 1998). In spite of Coca C ola enjoying the major proportion of the market, it does not have the capability to exploit the market conditions, mainly because the substitute drinks companies have significant power. Some other competitors include RC Cola, Kola Real and Inca Kola (Bell, 2003). PEST analysis Political analysis: the company belongs to the non-alcoholic beverages group and falls under the Food and Drug administration. Coca Cola Company takes all the necessary steps in order to analyse whether the introduction of new ingredients will meet the required standards, and asks for advanced approval from the FDA. Coca Cola Company also abides by the rules set by the FDA on plastic bottled products. The company follows differentiated accounting policies which show a significant role in the reported results. According to the jurisdiction of various countries, the company is subject to income tax policies. It is also subject to import and excise taxes where outsourcing units are absent. Economic factors: befor e entering into a new market, the company always analyses the economic factors of the country in question. When a country experiences economic growth, the purchasing power of its population increases, enabling the company to market its products. Coca Cola currently uses 63 other currencies in addition to the US dollar. Fluctuating foreign currencies can impact revenue generation. The fluctuation of exchange rates affects the export of the products globally. The company uses the derivative financial instruction