Introduction:

• Business organisations anywhere in the world operates within

environments. Business environment can be defined as the
combination of internal and external factors that influence a
company’s operations, decision-making processes, and overall
performance.
• The Coca-Cola Company is a multinational beverage corporation
headquartered in Atlanta, Georgia, USA. It is one of the world's largest
and most recognized beverage companies, was invented by John S.
Pemberton in 1886 in Atlanta. The company was later bought by Asa
Candler, who incorporated The Coca-Cola Company in 1892,Coca-
Cola is famous for its signature product, Coca-Cola, often referred to
as Coke. It's one of the most popular carbonated soft drinks global.
The Coca-Cola Company has a diverse product portfolio, including
various carbonated soft drinks, bottled water (Dasani), juices (Minute
Maid), energy drinks (Monster), and more. Coca-cola is now operating
in more than 200 countries This Photo by Unknown Author is licensed under CC BY
SUPPLIERS
These are the providers of raw materials to a company for it
to produce goods and services.
Example: Illovo Sugar Limited

If the suppliers from the headquarters of Coca-Cola cannot

bring their supplies to Zambia, Coca-Cola will lose out on This Photo by Unknown Author is licensed under CC BY

sales because they cannot produce.

Local Sourcing and Production, whenever possible, it can

source raw materials locally to support the Zambian
economy and reduce dependency on imports. This can also
help in building relationships with local suppliers.
PUBLICS

•There are several publics that can affect the running of Coca-Cola
company.
General and local publics.

•Local publics are the residents in the communities around the business
and the public generally affects/influences the image of the business.

•The company can collaborate with local communities on initiatives that

enhance the quality of life. These include investing in education,
healthcare, and infrastructure projects which can create a positive
perception of the company.

•Coca cola also engages in Corporate Social Responsibility Initiatives

(CSR) initiatives that align with Zambia's socio-economic development
goals. These initiatives include water conservation projects, recycling
programs, and partnerships with local communities to promote
sustainable practices.
Customers
•Customers are a major stakeholder in the Coca-Cola
company. Coca-Cola has a huge distribution network
to satisfy its customers. The company, to optimize its
distribution network, acknowledges its targeted
customers international retail chains and restaurants .
•Changing consumer preferences: as customers
increasingly seek healthier alternatives and demand
transparency in food and beverage ingredients Coca-
Cola has had to adapt its products portfolio. This shift
in consumer preferences can impact sales of traditional
soda products. Coca cola has come up with zero coke
to Carter for those with diseases like diabetes and
sugar. This has move has increased their sales because
everyone can afford it and buy without having any
health complications

This Photo by Unknown Author is licensed under CC BY-NC

Competitors:
•Competitors affect several areas of the business, such as the
quality, the promotion, but above all the prices. Determining
the price of the product based on competition combined with
its unique quality make Coca-Cola affordable, indelible in
mind, and sometimes essential for every customers.
•Competitive Strategies: Coca-Cola continuously monitors
the competitive landscape and adapts its strategies
accordingly. The company focuses on product differentiation, This Photo by Unknown Author is licensed under CC BY

pricing strategies, and distribution network optimization to

maintain its market share and competitiveness
Intermediaries:
•These are firms and individuals that sale products of the
company to the final consumer. Transportation and
distribution problems, like breakdowns in delivery trucks or
strikes by distribution workers, can result in delayed
deliveries to retailers and consumers, impacting sales and
customer satisfaction. Especially in a country like Zambia
that has poor road networks and frequent shortages of fuel
POLITICAL
FACTORS
•This factor consists or is surrounded by
government regulations and other aspects that are
posed by the Govt officials.
•These regulations and factors have in one way,
or another affected the operations of the
company Coca Cola .
•Some of the political factors Coca Cola has had
challenges with include , Corruption, Poor
policies on taxation and trade restrictions,
Instability of a political systems and High levels
of taxes
This Photo by Unknown Author is licensed under
 Political factors and their
negative impact on Coca
Cola
• Policies on taxation and trade restrictions – Some policies that
are imposed are too strict and they make it hard for Coca Cola
to operate in their own desire
• Corruption – This involves any unlawful activities that exploits
the company's operation .This makes it hard for Coca Cola to
have free or rather a fair market to trade in
• High levels of taxes – Foreign companies like Coca Cola are
usually challenged by the huge amounts they are required to
pay for them to calmly operate in countries like Zambia
 Political factor and their
negative impact on Coca Cola
• Instability of country political systems – It is a challenge for a company to
operate in a country that faces weak systems in its governance cause or It’s
results will affect Coca Cola
• Labor laws – These laws corner the company as they come with variety of
conditions favoring workers attached. Issues on how the company is allowed to
give its work hours, employee safety and even wages are closely followed
through the imposed laws.
 ENVRONMENTAL FACTRORS

• Health consciousness: changing consumer preferences and

increasing health awareness have led to a decline in demand for
sugary beverages. Coca-Cola has faced criticism for its role in
the rising obesity epidemic, leading to decreased sales.

• Environmental issues/concerns: plastic pollution is one of the

biggest environmental concerns. Coca-Cola has faced criticisms
for its contribution to plastic waste and has been working to
address this issue by setting recycling goals and investing in
sustainable packaging
This Photo by Unknown Author is licensed under CC BY-ND
• Carbon emissions, stemming from manufacturing, transportation, and
refrigeration operations, represent another formidable environmental
challenge. Addressing this concern necessitates a proactive approach to
reduce energy consumption and transition toward renewable energy
sources, aligning with the broader goal of reducing the company’s carbon
footprint and combatting climate change.
 SOCIAL-CULTURAL FACTORS
• Consumer Preferences:* Consumer preferences in Zambia and other
countries can vary widely due to cultural differences. Coca-Cola needs
to adapt its product portfolio to suit local tastes and preferences.
• Lifestyle Changes:* Changes in lifestyle patterns, such as urbanization
and busy lifestyles, can affect consumption habits. Coca-Cola may
need to adjust its packaging and distribution strategies to cater to on-
the-go consumers.

This Photo by Unknown Author is licensed under CC BY

• *Health and Wellness Trends:* Global health
and wellness trends can impact the demand
for sugary beverages. Increasing health This Photo by Unknown Author is licensed under CC BY-NC-ND

consciousness may lead to lower

consumption of high-sugar sodas. A measure
Coca-Cola can take is to diversify its product
offerings with healthier alternatives.

This Photo by Unknown Author is licensed under CC BY-SA-NC

TECHNOLOGICAL FACTORS
•Rapid technological advancements such as innovations in beverage packaging,
distribution, vending machines require constant investments to remain competitive,
affecting profitability. The need to invest in new technologies to meet environmental
standards can increase operational costs.
•Technological factors to consider in Coca-Cola industry analysis may include:
• Impact of technology on production costs
• Technological changes adopted by competitors
• Impact of technology on the company’s value chain
• Impact of technology on the company’s products5. The rate of diffusion of
entailed technology
Measures

• It has made sure that all the machinery’s

are in good condition to offer efficient
and quality production.
• Monthly maintenance of technology to
avoid faults and making sure they are up
to date with technology

This Photo by Unknown Author is licensed under CC BY-SA-NC

 ECONOMIC
FACTORS
• High exchange rates can negatively affect the multinational
company Coca Cola by increasing its costs. If for example
coca cola is operating from a foreign country whose currency
weakens against the U.S dollar it can lead to higher costs for
importing its products and packaging, it also leads to higher
prices for consumers and lower revenue for the company.
 Measures

• One solution to this problem is by expanding its operations in

countries with stable currencies to reduce high exchange rates.
• It can source materials locally and reduce dependency on
imports.
 LEGAL
ENVIRONME
NT
• These include laws passed by the government as
well as decisions rendered by various
commissions at every level of government

•Legal factors:
• Health and Safety
• Advertising standards
• Consumer rights and laws This Photo by Unknown Author is licensed under CC BY-SA

• Product labelling and safety

Negative Impacts of Legal
Environment
Reduced Increased
Increased regulatory
flexibility -
costs - i.e uncertainly i.e
i.e constant
environment
prohibition changing of
al
from new laws and
regulations,
advertising regulations
food safety making it tough
to children or
regulations for future
including
and labor planning e.g
certain currency
laws
ingredients flactuation
CONDUCIVE MEASURES

1 2
Complying with all applicable Working with governments and
laws and regulations e.g laws regulators i.e engage with govt
on environmental protection, and regulators to develop and
labor practices implement policies
CONCLUSION

The business environment in Zambia poses several challenges for international

companies like Coca-Cola. The Coca-Cola Company operates in a complex business
environment influenced by various macro and micro factors. Macroeconomic instability,
government regulations, changing consumer preferences, and sustainability concerns are
among the macro factors that have negatively impacted Coca-Cola’s operations . On the
other hand, competition, supplier dependencies, shifting consumer preferences, and
distribution challenges represent micro-level challenges. By promoting sustainability, and
engaging with the community, Coca-Cola can create an environment conducive to its
operations in Zambia . Additionally, strategic investments in infrastructure, active
engagement with the government and local communities, and implementation of risk
management strategies can create a more favorable environment for Coca-Cola’s
operations in Zambia and other countries . This approach not only benefits the company
but also contributes to Zambia’s growth .