Micro Environment

2.1.Political Environment

Politics is a very complex issue differing from state by state. Politics also directly affects many of the business operations by change of the government, change in legal system, amendment in law etc. In case of coke it is very sensitive to follow the political issue, since the setting of production facilities, keeping the ingredients secret, trade-union issues are related to the political environment. So, to operate in different countries with such a secret formula of production it is a challenge for coca-cola company to run its business in different countries.

2.2.Legal Environment

Legal systems are different in many countries due to their cultural and ethnical backgrounds. Some legal systems may be modern but some could be conservative too, so it also proves the versatile fact of the legal system around the globe. Law and regulations is the base of the judiciary system of any nation, so its decisions and directions are subjected to be mandatory for any company operating inside that country. So, understanding legal system and acknowledging it before and after the company’s operation is essential.

2.3.Economic Environment

There are many countries which has very weak economic status, with people living under the very basic living-standard. Since coca-cola is not a primary need of the mankind, hence it is important to estimate the purchasing capacity of the people where it is targeting its business. Also, economic growth rate may also hint the potentiality of the market in future too.

2.4.Competition

As mentioned earlier the main rival of the coca-cola is he Pepsi-cola, almost identical in colour and look. Perhaps, the market presence is very similar to both of these products. Since cultural aspect governs the buying decision of the buyer, there are little modifications apart from the basic standard ingredient, like: sugar, gas, bottling. So, as the main competition remains the same, the local level competition is also present market by market.