Free Cola-Cola Company Essay Sample


The Cola-Cola Company is the largest beverage company in the world, largest marketer, manufacturer and distributor of non alcoholic syrups and beverage concentrates in the globe and is one of the biggest corporations in the U.S.  Company produces more than 3,000 beverages, ranging from regular and diet sparkling beverages to still beverages like 100 percent fruit drinks and fruit juices, waters, energy and sports drinks, coffees and teas, soy-and milk based beverages, the variety spans the world.

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Question 1

Things that would change the demand for Coca Cola product

Price is a key factor that affects the demand of Coca Cola products. If the price is unsuitable to the customers, they will switch to other companies like Pepsi if their prices are favorable.  Taste is another key factor that influences the demand of Coca Cola products.  It the product has good taste, then its future demand will increase. If the taste does not meet consumer needs, then they will not purchase the product in future.

The non alcoholic drink industry is swiftly evolving as a consequence of, amid other things, changes in customer preferences. Particularly, consumers are increasingly becoming more concerned about and aware of health and environmental issues. Concerns on the environmental effect of plastic might lessen the consumption of Coca Cola products which are packaged and sold in plastic bottles or lead to additional taxes by the government which would result to increase in prices and consequently reduce consumer demand

Additionaly, researchers, dietary guidelines and health advocates are encouraging customers to lessen their consumption of particular forms of beverages that are sweetened with high fructose corn or sugar syrup, which could decrease demand for particular forms of Coca Cola products.

Question 2

Things that would affect changes in supply of Coca Cola product

In the contemporary high technology globe, there are significant factors that will affect changes in supply of Coca Cola products.  The development of novel production technologies canning factories that utilizes cheaper and less costly materials in production of packaging cans will enable the company to increase supply of its products. Demand is an important factor that changes the supply of Coca cola products.  When there is high demand, then the company needs arrangements for increased production and supply to the market. Goyal argues that the cost of the product greatly influences supply. If coca cola reduces cost of its products, demand will increase and thus necessitating increased supply of the products.

Question 3

How quantity demanded can be changed

A change in quantity demanded is a shift in the particular amount of a good that consumers are able and willing to buy and this change comes as a result of a shift in demand price. The Coca Cola firm can make its product more inelastic through reduction of the closeness and amount of substitutes in such ways like product differentiation and   branding. Boyes,  & Melvin argues that product differentiation is a marketing procedure that recognizes the differences amid products and aims at making a product increasingly attractive through contrasting its distinctive qualities with competing products.

Coca Cola Firm can change quantity demanded through branding which is achieved through differentiating its product from those of other firms by using a different design of packaging and creation of trademarks and brand names.

Question 4

How would raise minimum wage policy affect Coca Cola firm

According to Waltman, minimum wage is a policy that ensures that emp0loyees are paid a particular wage rate. In a competitive market, an increase in minimum wage rate leads to an increase in demand of labour when wages decline and demand decreases when wage rate increases.  Labour supply increases when wage rates go up and labour supply reduce when wage rates are reduced.  Therefore, in Coca Cola firm, an increase in minimum wage by the government will result to increase in supply and reduction in demand of labour.


Demand and supply are major factors that determine the price of goods in the market. Since there are many firms in the beverage industry, Coca Cola Company has changed the quantity of the goods demanded through branding and product differentiation which has made its products different from those of other firms.


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