PEST ANALYSIS

The PEST analysis examines changes in a marketplace caused by the following factors.

Political Factors Economical Factors Social Factors Technological Factors

POLITICAL FACTORS

In Asia and especially in Pakistan where the political environment is not stable no Government has completed its tenure except the last and the politics also a great influencer on the different industries of the country. Now following are the effects on the beverages industry. The govt. decides that what will be the rates of sales tax The rates of main operating variables inputs such as the Electricity are also decided by the govt.

ECONOMICAL FACTORS
The country like Pakistan whose economy is not strong enough is affected by so many economic variables which are the following. Low literacy rate is a problem due to which rural customers are not able to differentiate between Coca-Cola, Pepsi , gourmet cola etc. Employment opportunities will be higher. Increasing demand of Coca-Cola requires establishment of new production plants.

Combined pricing decisions with mutual agreement between Coca-Cola and Pepsi. If the country faces inflationary trend in the market, the price of the Coke will ultimately increase which will lower its demand. Fiscal Policy: It is the policy of taxes. If heavy tax is levied on Coke then its price will rise having negative affect on its consumption.

SOCIAL FACTORS
The social factors of each society and culture are different from each other so these also influence the industries as well. Now it has become a trend that soft drink should be served in almost every gathering. So coke has to be there in the gatherings, functions etc. Fast food popularity among teenagers has led to the increase in demand of Coca-Cola. They have been sponsoring different cricket events and Pakistan cricket team for almost 10 to15 years. Religious factors can also affect the sales as what happened in 2003 with Coca-cola when US attacked Iraq, most of the people banned Coca-Cola and Pepsi because they were multinational brands. People who are conscious about their social status would never go for a local brand like gourmet or amrat cola. Rather they would, just for the sake of their status, go for Coca-Cola etc which happens to be a renowned brand.

TECHNOLOGICAL FACTORS

Coca-Cola like other same companies uses technology as there can be no survival without the use of IT and technology. There is very limited automation to keep production record. Most of the record is maintained manually but currently they are trying to shift towards fully automated production control system. Coca-Cola in Multan has only one single plant which is not sufficient. They must get themselves a new manufacturing plant so that they could meet the required demand. The software they uses for multiple activities like recording data, fetching data etc is BASIS.