The Challanges Faced by the Coca-Cola Company

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The Coca-Cola Company distributing the Coca-Cola product has faced many macroeconomic variables that indicate trends in the economy. A reduction in consumer confidence in the United States, resulting in lower product sales, has been offset by rising sales in overseas markets. Coca-Cola has combated problems such as unemployment, global warming, and rising interest rates. The Coca-Cola Company looks to new programs to encourage employment, additional ways to provide water for their product, and good management to maintain a healthy credit rating.

Impact of Economic Variables on the Coca-Cola Product

With an American economy that often tethers on the brink of recession, a study of the variables that affect supply and demand of the Coca-Cola product becomes an increasingly critical task for the Coca-Cola Company. Those who study macroeconomics are concerned primarily with the “forecasting of national income, through the analysis of major economic factors that show predictable patterns and trends, and their influence on one another” ("Macroeconomics defined," n.d.). Profitability of the Coca-Cola product is affected by many macroeconomic variables. This paper reports on three of the macroeconomic variables that influence supply and demand of the Coca-Cola product and that also influence the company's profitability.

Unemployment

Over the past few years, the Coca-Cola Company has seen a decrease in the demand for the Coca-Cola product among consumers in the United States. "The company has relied on strength overseas to counter a weak North American market that has experienced high unemployment and low consumer confidence" (Reuters, 2010). Unemployment is a crisis that has made businesses worldwide wake up to the lack of ...

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...June 26). Guess where Coca-Cola will invest $5 billion. Forbes. Retrieved from http://www.forbes.com/sites/kenrapoza/2012/06/26/guess-where-coca-cola-will-invest-5-billion

Reuters (2010, Feb. 9). Coca-Cola posts strong profit on emerging market sales. The New York Times. Retrieved from http://www.nytimes.com/2010/02/10/business/10coke.html?ref=cocacolacompany

Schwab, K., & Kent, M. (2014, Jan.). Business must do more to boost youth employment. Retrieved from http://www.coca-colacompany.com/stories/opinion-business-must-do-more-to-boost-youth-employment

Trefis Team. (2013, Apr. 18). Coca-Cola gulps up growth in emerging markets. Forbes. Retrieved from http://www.forbes.com/sites/greatspeculations/2013/04/18/coca-cola-gulps-up-growth-in-emerging-markets

What is gdp and why is it so important? (n.d.). Retrieved from http://www.investopedia.com/ask/answers/199.asp

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