In analysing the macro- environment, it is crucial to identify factors that might affect the organization's supply and demand level and its cost. Some tools have been developed to estimate the vast number of possible issues that might influence a company. A PEST analysis is one them, which refers to political, economic, social and technology factors. Many businesses use this concept to track the environment they are operating in or are planning to launch a new project. This essay will examine Coca-Cola, which is an American multinational beverage corporation, as an example of how external environments (PEST) can affect a company and it also provides some options for Coca-Cola to be successful in the future. .
Coca-Cola was invented by a pharmacist named Doctor John Pemberton in 1886. John Pemberton came up with the idea of a drink consisting of carbonated water, can cane sugar syrup, caffeine, kola nut and cola leaves extracts. After Pemberton's death, Asa Griggs Candler managed the business. In 1891, he became the sole owner of Coca-Cola. Today, Coca-Cola Company is the best-selling soft in most countries and one of the world's most recognizable brands.
One of a recent political factor that Coca-Cola Company faced was the tax evasion in Vietnam. Coca-Cola has fallen under suspicion of tax avoidance for the last many years since it has been consistently reported losses for the last decade. Because it repeatedly declared losses, it does not have to pay any money in the corporate income tax. However, a wave of anger among Vietnamese was raised after local newspapers reported that on October 26, Coca-Cola announced a new investment into Vietnam, which is cost 300 million. It is a part of the plan to exploit Vietnam market, where Coca-Cola can see a great potentials. It is calculated the total money that Coca-Cola has evaded may reach trillion of VND, as Coca-Cola is holding the biggest market share in Vietnam with a huge number of customer.