Introduction To Management Essay Example | Topics and Well Written Essays - 2500 words

Introduction To Management - Essay Example As of now this market is mainly dominated by two players, Coca-Cola and Pepsi. The rising popularity of soft drinks has contributed immensely towards the growth and prosperity of Europe and America. Today the soft-drink industry employs more than 110,000 Americans with a payroll of more than $5 billion payroll dollars. Historically Coca-Cola has dominated the industry. Until 1950 Pepsi raised hardly a flicker of recognition. But now Pepsi has become a force to reckon with. Let us underline the present circumstances; Political Factors: During the Second World War Pepsi and Coke both enjoyed increased sales as they followed the flag around the world. However, after the war ended, and incomes improved, Pepsi's sales figures started decreasing. Things improved for Pepsi mainly when after Mr. Alfred N. Steele took over the Presidency. Mr. Steele could bring in this turnaround mainly in two phases. The first phase lasted from 1950 to 1955. In this phase all out efforts were made to overcome the shortcomings of Pepsi. During the second phase, lasting from 1955 to 1960 Pepsi started direct offensive against Coca-Cola. That was the time when Coca-Cola started accepting the formidable presence of Pepsi and responding to its overtures as well. The present political conditions in US and Europe are more or less stable, with the respective governments not taking sides. Both Pepsi and coca-cola have been contributing in good measure towards the political campaigns of diverse political parties and the governme nts. One factor which has certainly come to the advantage of coca-cola is the FIFA world cup 2006 in Germany, a formidable part of European market. Euro is now the currency of twelve European Union countries, stretching from the Mediterranean to the Arctic Circle (namely Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland). Euro came into existence on 1st January 1999 when eleven (later twelve) EU countries established the conversion rates between their respective national currencies and Euro with formal circulation of bank notes and coins from 1st January 2002. Coca-Cola being the official partner of World cup soccer under these changed circumstances, not only brought it closer to the respective establishment, but having a borderless big area where people could move freely to see the football matches the frenzy generated has indeed helped coca-cola by leaps and bounds. Pepsi too appear to have recognized the trend and is focusing mainly on the markets of developing countries for now. Economic Factors: While analyzing the markets the economic factors that need to be taken care of are; Current and project economic growth, inflation and interest rates Labor supply, labor costs and unemployment Levels of disposable income and income distribution Stage of business cycle Impact of globalization Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. The soft drink industry is more than liquid refreshment and jobs and dollars. It is an industry that strongly believes in preserving the ideals and principles that helped it