Impact of COVID-19 on Coke Company

Impact of COVID-19 on Coke Company
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Impact of COVID-19 on Coke Company
Earlier last month on 13TH March 2020, the world health organization announced coronavirus as a pandemic to the world. From then on, the pandemic has spread across the globe and causing panic to those that haven't been affected yet. The most affected areas are the businesses, both large and small. Companies have started realizing the massive impact of this pandemic, and they have started changing their policies and strategies to curb the economic instability they are undergoing. This discussion narrows down to how the effect of coronavirus has affected the business operations, plans, and strategies of coke company according to the PESTEL model.
Coke is the leading beverage company in the states and is probably one of the most affected companies due to the coronavirus pandemic. According to the PESTEL model, some of the society members working in coke company have lost jobs through sickness and even death. The members of the society are unable to attend to duties due to the restrictions put in by the law to reduce the pandemic. Generally, human welfare has been affected by the current situation. The workforce has been reduced in some branch companies until the coronavirus situation becomes better. Also, the retailers selling the coke brands are having fewer sales compared to the previous normal days.
According to the PESTEL model, the coke company has experienced a substantial economic impact over the coronavirus pandemic. The market sales have massively reduced as people are no longer enjoying the freedom of walking anywhere and buying the products. Some stores that the government suspects to have a high risk of spreading the coronavirus infection have been closed. The stores in hotspot areas have also been closed, leaving only a few to operate. The uncertainties of the pandemic expose the economic status of the company to more risks and economic dangers. Even though the company has fewer chances to incur losses through the loss of quality (coke product expiring in stores), the massive drop in sales becomes a burden to the company as contract employees need to be paid as usual. If the pandemic persists, then the economic status is likely to worsen. In the future, capital resources are likely to reduce if the pandemic continues. Buera and his team (2020) recommends that it will be necessary for the companies to observe the current market trends and produce the p...