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Macro.analysis Coca-Cola Spain - Essay Example

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It operates in almost all the countries over the world. Coke in Spain will be highly influenced by the political factors prevalent. Spain’s government has come up with a lot of…
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Macro.analysis Coca-Cola Spain
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Macro.analysis Coca-Cola Spain

Spain has been a member of NATO since 1982 and also the European Union since 1986. This EU membership represents a very significant part of its foreign policy and supports the efforts of European political mechanisms. Therefore, a stable political situation and diplomatic relations assure development opportunities for organizations that are doing business in Spain, and lessens any risk of possible conflicts and disagreements. ((Department of Foreign Affairs and Trade ; 2001; n.p).
The Spanish food and beverage sector is a challenging market because of the changing climatic and soil conditions. This results in unpredictable domestic agricultural production. However, the structural reforms implemented in Spain over the last decade imply that Spain will continue to offer a competitive, more secure, stable and reliable environment to conduct business for coke ( Dibbs S Simkin L; 2002 ; np) (Department of Foreign Affairs and Trade; 2001; np).
A lot of investment in research needs to be done in order to introduce products or packaging that complies to the social and cultural norms of a country. Talking about the trend in Spanish consumer habits we see a moderate growth the consumption of food and beverages. Households do most of this spending as compared to hotels, restaurants and institutions. After the process of modernization that Spain has gone through, its famous street life has been inhibited. Although, specially during the summer season, people still live on the streets and cafe terraces are found full of people. Therefore, the summer season could be a good time for the beverage companies generating relatively higher profits for coke as well (Philip Kotler, Gary Armstrong ;2006; np)
Spanish production of technology specially aimed for the food and beverage industry is among the most competitive in the EU. The reason behind this technological advancement has been the country’s ... Read More
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