Political Analysis and Factors
The Food and Drug Administration (FDA) regards non-alcoholic beverages such as Coca-Cola as within the food category. The government regulates the manufacturing procedure of these products. Companies that fail to meet the government's standards are subject to fines. Coca-Cola is also subject to the Occupational Safety and Health Act and to local, state, federal, and foreign environmental regulation. Following are some of the factors that are influencing Coca-Cola's operations:
1. Changes in laws and regulations—changes in accounting standards, taxation requirements (tax rate changes, modified tax law interpretations, entrance of new tax laws), and environmental laws either in domestic or foreign authorities.
2. Changes in non-alcoholic business era—competitive product and pricing policy pressures and ability to maintain or earn share of sales in worldwide market compared to rivals.
3.Political conditions, specifically in international markets—civil conflict, governmental changes, and restrictions concerning the ability to relocate capital across borders.
4.Ability to penetrate emerging and developing markets—this also relies on economic and political conditions, such as civil conflict and governmental changes, as well as Coca-Cola's ability to form effectively strategic business alliances with local bottlers, and to enhance their production amenities, distribution networks, sales equipment, and technology.