Political influence a political factor creates an

  • No School
  • AA 1
  • 12

This preview shows page 4 - 6 out of 12 pages.

Political influence : A political factor creates an impact on profit as well as the survival chances of coca-cola company are diverse. Thus the risk from political influence may vary due to changes occurring suddenly in the present political regime towards the civil unrest of various decisions that government do take ( Barkauskas et al. 2015) . Thus political factors are not only affected during any multinational set up but also affect the host nation. Thus certain political factors which affect the “Coca - Cola Amatil” industry is: The political stability of the country Australia plays an important role where investment for Coca Cola needs to be done. The political integrity and the likelihood of taking in corruption acts which result in repercussions that leads to various impeachments and resignation of higher political authority. The country laws which are enforced regarding the business such as “Australian Contract law” which states the limitation of Coca-cola politically in what it can do and not do. Next is the Intellectual property of the company which ensures that the protection is there for the investors to invest. The various kinds of trade barriers that country Australia has for protecting the trade of Coca- cola. Thus in spite of trade barriers, certain trade partners would affect the company through potential experts.
Image of page 4

Subscribe to view the full document.

This Coca - Cola Amatil needs to be very careful with its political investors, and also a risk of legal laws regarding what it can do and not do. Thus political factors impact the major criteria of Coca- Cola like legal, rules and trade risk. Economical influence : The various Economical factors that Coca-cola is pertained to like the inflation changes, the rate of foreign exchange, the profit and the interest rate, the domestic gross rate and the current change do affect the economical ground of coca-cola. Thus this creates an impact on aggregate demand, investment, business and its nature and also makes a potential difference towards the high profit of the company which is to incur loss or profit ( Köksal and Orman, 2015) . Thus there are various factors towards which the industry is sensitive. They are: The growth and the GDP rate in the Australian country to affect the rate of the expected growth of Coca-cola in future. The rate of interest in the country also affects the rate at which the people will invest as well as borrow. If the rates are higher the investment will be higher resulting in higher growth. The financial market and its efficiency that would make the industry to operate at a good capital price rise thus enabling the demand and the supply. The profit of the industry would be affected by the country's exchange rate. ( Matuku and Ng’eny, 2015) Last comes the unemployment which might affect a greater supply of the demanding job and as a result people would work with a low salary which would lower labour cost of the Coca - Cola.
Image of page 5
Image of page 6
  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes