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Final Report on Coca-cola

Final Report on Coca-cola


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Published by: nida24 on Aug 26, 2010
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Political factors are how far a government intervenes in the operations of the company. The
political factors may include tax policy, trade restrictions, environmental policy, laws
imposed on the recruiting labours, amount of permitted goods by the government and the
service provided by the government.

Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and
Drug Administration), it is an agency in the United States Department of Health and Human
Services. Its headquarters is in USA and it has started opening offices in foreign countries as
well. The job of the FDA is to check and certify whether the ingredients used in the
manufacturing of Coca-Cola products in the particular country is meeting to the standards or
not. In Coca-Cola the company takes all the necessary steps to analyze thoroughly before
introducing any ingredients in its products and get prior approval from the FDA. The
company also has to take into consideration of the regulation imposed by FDA on plastic
bottled products.

Apart from FDA the other political factors includes tax policies and accounting standards.
The accounting standards used by the company changes from time to time which have a
significant role in the reported results.

The company also is subjected to income tax policies according to the jurisdiction of various
countries. In addition to this, the company is also subjected to import and excise duties for
distribution of the products in the countries where it does not have the outsourcing units.

Moreover, if there is any unrest or changes in the government and any kind of protest by the
political activists may decline the demand for the products. Also the situations like the unsure
conditions prevailing in Iraq and escalation of the terrorist activities in these areas could
affect the international market of our product. It creates an inability for the company to

Page 33

“Project Report on Coca-Cola Company and study of customer
preference for Coca-Cola brands with reference to Coca-Cola

penetrate in the markets of such countries.

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