Environmental IssuesThreat or Opportunity?

SHIVAM GUPTANOORUL HASSAN ANSARIPRAVEEN KUMARABHINAVMONICA RAI

Content What is marketing environment. Types of environment. External environment (opportunity and threat)

analysis. Market Opportunities Internal Environment (opportunity and threat)

analysis. Opportunities for Coca Cola Threat for Coca Cola Conclusion

Marketing Environment The market environment is a marketing term

and refers to factors and forces that affect a firm's ability to build and maintain successful relationships with customers.

A business unit must monitor key macroenvironment forces and

significant microenvironment factors that affects its ability to earn

Business unit strategic Planning Process

Types of Environment

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT

Political Analysis and Factors Those Non- Alcoholic Beverages . Changes in Laws and Regulations Political Conditions, specifically in international

markets Changes in Non-Alcoholic business era. Ability to penetrate emerging and developing

markets,

Economic Analysis In 2001, the recession influenced the company’s

operations, but because of aggressive actions the US Economy estimated to have returned in positive growth in 2002.

By researching for new products are cost effective, the company could sell its products at a lower price, so its customers would purchase more Coca-Cola products at a lower price.

Sociological Analysis This analyses the ways in which changes in

society affect the organization such as changing in lifestyles and attitudes of the market.

Healthier lifestyles: Coca-Cola Light or Zero, instead of drinking beer or other beverages.

Demand for healthier drinks results in demand of carbonated drinks and this pulled down the revenues of Coca Cola.

Technological Analysis The efficiency of companies Since the technology is advancing. Entrance of cans and plastic bottles.

Environmental Analysis Development of safe environment in the

Bottling plant. Providing employee benefits for improve in

efficiency. Meeting all the standards of FSSAI.

Legal Analysis Providing the safe environment as mentioned in

the law. Minimum Wages to the daily workers

Market Opportunities Is an area of buyer need and interest that a

company has a high probability of profitably satisfying.

Three main sources of opportunity: To offer something that is short supply.

To supply or offer existing product or services in superior way.

Totally new product or services

Marketing Opportunity Analysis Can we articulate the benefits convincingly to a

definite target market? Can we locate the target market and reach them

with cost effective media? Does our company have or posses access to the

critical capabilities and resources we need to deliver the customer benefits?

Can we deliver the benefits better than any actual or potential competitors?

Will the financial rate of return meet or exceed our required threshold for investment?

Opportunity matrix

1 2

3 4

High

High

Low

Low

Success Probability

Attractive

Threat matrix

1 2

3 4

High

High

Low

Low

Probability of Occurrence

Seriousness

1. Competitor develops a superior

lighting system.

2. Major prolonged economic depression

3. Higher cost

4. Legislation to reduce number of TV studio

license.

Opportunities for Coca Cola Bottled water consumption growth. Increasing demand for healthy food and

beverages. Growing beverages consumption in emerging

markets.

Threats for Coca Cola Changes in consumer tastes. Legal requirements to disclose negative

information on product labels. Competition from PepsiCo.

Internal environment It’s one thing to find the attractive

opportunities and another to be to take advantage of them.

Each business need to evaluate their strength and weaknesses.

INTERNAL ENVIRONMENT EMPLOYEES MANAGEMENT CORPORATE CULTURE SUPPLY CHAIN CUSTOMERS

Another Dimension to the topic

Conclusion PESTEL CONTROLS THE EXTERNAL

ENVIRONMENT AND YOU CAN CONTROL THE INTERNAL ENVIRONEMENT.

Q and A