PEST analysis on Coca Cola

ENVIRONMENTAL FACTORS PEST ANALYSIS Political EXTERNAL Changes in laws & regulations. Changes in non-alcoholic business era. Political conditions: election, military take over. Ability to penetrate emerging and developing market Effect on environmental protection laws Economic Lower interest rates make business task any easier Effect due to inflation Anything done to reduce unemployment Economic crisis Social Rising unconsciousness of natural resources Changes the lifestyle and attitude of market Technology Have business innovations effectively promoted business Promoting use cans or plastic more environmentally environment The governments regulations hindered in controlling technical equipment Efficiency of companys advertising, marketing and promotional programs Entrance new machineries equipment YES YES YES YES YES YES YES YES YES YES YES YES EFFECT POSITIVE EFFECT NEGATIVE YES YES YES

YES

SWOT analysis on NESTLE

Strengths:
- Large and powerful global company - Very strong brand and product brands - Huge product range - Strong research and development - Long experience and excellent market knowledge

Weaknesses:
- Too large - may be unwieldy and difficult to control - Some products highly vulnerable to recession - Slow product range very low margin - Declining share price - Declining market share in core business - Carryover of poor image resulting from marketing practices of milk formula in the third world

Opportunities:
- Trend to healthier eating : wellness products, functional food and personalized nutrition - Research generating new products and developing new markets oversea - Regulation threats- may be better placed to work within the rules than the competition, given the research and development strength

Threats: - Prolonged recession

- Consumers trading down to own-label products - Potentially being branded as producers of Frankenstein products - Mixed messages- indulgence versus health? - New ventures may threaten cash cow brands such as Nescafe

- Increased competition Kraft and Cadbury - Increased regulation and stricter rules about nutrition claims