2.0 PEST and Environmental analysis
2.1 Political Factor
New rules and regulations created by the Chinese government in order to make sure the food quality is good and safety in China for their people. To implement the rules and regulations, restructuring and re-evaluating various productions factories were involved.
The productions segment of the Coca-Cola company would be impacted by the new regulation as it would need to be assessed by this new superministry. To prevent any complications, Coca-Cola could first re-evaluate their factory conditions and practices before the Chinese government does. The productions segment not only is better prepared for the assessment but also can improve or change and current factory practices and conditions by reviewing the factories.
Overall, this would affect the marketing plan as they may have improved products. The pricing and promotion may be affected in the marketing plan as they may need to reset the price and promoting they have good quality products.
This is a political factor as it involves the government. This new regulation would impact the productions segment of the Coca-Cola company as it would need to be assessed by this new superministry. To prevent any complications, Coca-Cola could first re-evaluate it’s factory conditions and practices before the Chinese government does. By reviewing the factories, the productions segment not only is better prepared for the assessment but also can improve or change any current factory practices and conditions.
This would be considered as a opportunity as it prompts the Coca-Cola Company to revise it’s factories in China, possibly improving factory conditions and practices.
"China Food and Drug Safety." China Food and Drug Safety. Business Week, n.d. Web. 15 Mar. 2013.