Essay on The Challanges Faced by the Coca-Cola Company

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†¦show more content†¦It is believed that unemployment of our youth can threaten the overall global economy. Kent feels by reducing that number of 75 million by 1%, it could boost the economy by $75 billion and challenges other business to reach out to the future – our youth (Moye, 2014). Coca-Cola is committed to addressing the problem of unemployment of younger workers by starting a program call Global Shapers that can help with education and employment of the youth in hopes of stabilizing the economy. Gross Domestic Product (GDP) â€Å"The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country’s economy† (What is gdp, n.d.). It is the monetary value of goods and services (â€Å"What is gdp,† n.d.). The value can be determined by adding what everyone earned or what everyone spent (â€Å"What is gdp,† n.d.). Global droughts have put a damper on Coca-Cola in the past decade (Davenport, 2014). They have caused a shortage of water, which is needed in the production of soda (Davenport, 2014). This has had a negative effect on Coke’s balance sheet (Davenport, 2014). Due to the increasing negative effect, â€Å"the company has embraced the idea of climate change as an economically disruptive force† (Davenport, 2014). Global warming is being cited as being a contributing factor to GDP. â€Å"Coca-Cola reflects a growing view among American business leaders and mainstream economists who see global