1. Market research
Environmental scanning
Environmental scanning can be defined as ‘the study and interpretation of the political,
economic, social and technological events and trends which influence a business, an
industry or even a total market’. The factors which need to be considered for
environmental scanning are events, trends, issues and expectations of the different
interest groups. The PEST analysis of coca cola company is as under:
PEST ANALYSIS
The PEST analysis examines changes in a marketplace caused by Political, Economical, Social
and Technological factors.
1. Political changes: political changes from one party to another in control- for example
the rise in private healthcare and privatizations under Conservative governments.
1.2 Political Analysis for Coca-Cola
Non-alcoholic beverages fall within the food category under the FDA. The government
plays a role within the operation of manufacturing these products in terms of regulations.
There are potential fines set by the government on companies if they do not meet a
standard of laws.The following are some of the factors that could cause Coca-Cola
company's actual results to differ materially from the expected results described in their
underlying company's forward statement:-
Changes in laws and regulations, including changes in accounting standards,
taxation requirements, (including tax rate changes, new tax laws and revised tax
law interpretations) and environmental laws in domestic or foreign jurisdictions.

2. Changes in the non-alcoholic business environment. These include, without limitation,
competitive product and pricing pressures and their ability to gain or maintain share of
sales in the global market as a result of action by competitors.
Political conditions, especially in international markets, including civil unrest,
government changes and restrictions on the ability to transfer capital across borders.
Their ability to penetrate developing and emerging markets, which also depends on
economic and political conditions, and how well they are able to acquire or form
strategic business alliances with local bottlers and make necessary infrastructure
enhancements to production facilities, distribution networks, sales equipment and
technology.
2. Economic change: for example a recession creating increased activity at the lower ends
of product price ranges. Rate of interest rises depressing business and causing redundancies and
lower spending levels.
2.1 Economic Analysis for Coca-Cola
Last year the U.S. economy was strong and nearly every part of it was growing and doing well.
However, things changed. Most economists loosely define a recession as two consecutive
quarters of contraction, or negative GDP growth. On Monday 26, the government officially
declared that the U.S. has been in recession since March. However, because of aggressive action
by the Federal Reserve and Congress it will be short and mild. The economy will return to
sustained, positive growth in the first half of 2002. This affected the operations of coca cola
company in china.
3.Social change: involves changing attitudes and lifestyles. The increasing number of
women going out to work, for example, led to the need for time-saving products for the home.
3.1 Social Analysis for Coca-Cola
Many chines citizens are practicing healthier lifestyles. This has affected the non-alcoholic
beverage industry in that many are switching to bottled water and diet colas instead of beer and
other alcoholic beverages. Also, time management has increased and is at approximately 43% of
all households. The need for bottled water and other more convenient and healthy products are in
important in the average day-to-day life. Consumers from the ages of 37 to 55 are also
increasingly concerned with nutrition. There is a large population of the age range known as the
baby boomers. Since many are reaching an older age in life they are becoming more concerned

3. with increasing their longevity. This will continue to affect the non-alcoholic beverage industry
by increasing the demand overall and in the healthier beverages.
4. Technological change - creates opportunities for new products and product
improvements and of course new marketing techniques- the Internet, e-commerce.
4.1 Technological Analysis for Coca-Cola
Some factors that cause company's actual results to differ materially from the expected results are
as follows:
The effectiveness of company's advertising, marketing and promotional programs. The
new technology of internet and television which use special effects for advertising
through media. They make some products look attractive. This helps in selling of the
products. This advertising makes the product attractive. This technology is being used in
media to sell their products.
Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are
easier to carry and you can bin them once they are used.
As the technology is getting advanced there has been introduction of new machineries all
the time. Due to introduction of this machineries the production of the Coca-Cola
company has increased tremendously then it was few years ago
CCE has six factories in Britain which use the most stat-of the-art drinks technology to
ensure top product quality and speedy delivery. Europe's largest soft drinks factory was
opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the
technology to produce cans of Coca-Cola faster than bullets from a machine gun.
Sources of Marketing Information
A variety of sources can be used to obtain the information necessary to fuel
a marketing information system. These information sources can be grouped
into two main categories: secondary data and primary data. Secondary data
were previously collected for another purpose. Primary data are generated
for a specific purpose when the information is not available elsewhere.The secondary
data may provide the information necessary to make a decision, and even if they don’t,
they may be useful in developing the collection process for primary data. Figure 1
illustrates the possible sources of information for marketing decisions.

4. Figure 1: information sources
Regulation of the Republic of China on Import and Export Duties
Mar 30,2007 (Promulgated by the State Council on March 7, 1985, amended and
promulgated by the State Council on September 12, 1987, amended and promulgated for
a second time on March 18, 1992 according to the Decision of the State Council on
Amending the Regulations of the People's Republic of China on Import and Export
Duties)
GENERAL PROVISIONS
Article 1
These Regulations are formulated in accordance with the relevant provisions of Customs
Law of the People's Republic of China with a view to implementing the policy of opening

5. to the outside world and promoting the development of foreign economic relations and
foreign trade and the national economy.
Article 2
All goods permitted to be imported into or exported out of the People's Republic of China
shall, unless otherwise provided for by the State, be subject to the levy of Customs import
or export duties according to the Customs Import and Export Tariff of the People's
Republic of China hereinafter referred to as Customs Import and Export Tariff). If goods
originating within Chinese territory are purchased from outside Chinese territory for
import, Customs shall levy import duty in accordance with the Customs Import and
Export Tariff. Customs Import and Export Tariff is an integral part of these Regulations.
Article 3
The Tariff Commission established by the State Council is charged with the
responsibility to formulate or amend the guideline, policies and principles for Regulations
on Import and Export Duties and Customs Import and Export Tariff, to examine the draft
of amendments of Tariff, to set temporary tariff rates and to examine and approve partial
adjustment of tariff rates. The composition of the State Council Customs Tariff
Commission shall be prescribed by the State Council.
Article 4
Both the consignee of imports and the consignor of exports are persons obligated to pay
Customs duties. The agent entrusted to go through the related procedures shall abide by
all the provisions of these Regulations pertaining to his client.
Article 5
The measures on the levy of or exemption from import or export duties on incoming and
outgoing passengers luggage and articles and on personal postal matters shall be
formulated by the State Council Customs Tariff Commission.

6. APPLICATION OF TARIFF RATES
Article 6
Customs import duty shall be calculated in accordance with general tariff rates and
preferential tariff rates. The general tariff rate shall apply to an import originating in a
country or region with which the People's Republic of China has not yet signed an
agreement containing reciprocal preferential tariff clauses. If imports originating in the
People's Republic of China are subject to discriminatory rates of duty or other types of
discriminatory treatment by any country or region, Customs may impose a special
Customs duty on imports originating in the said country or region. The State Council
Customs Tariff Commission shall determine and promulgate for implementation details
of the types of goods subject to the special Customs duty, the duty rates and the time
period when such levies commence and finish.
Article 7
Import and export commodities shall be classified under appropriate tax item numbers in
accordance with the category provisions of the Customs Import and Export Tariff and
shall be subject to tax levies pursuant to relevant tax rates.
Article 8
Customs duties shall be levied on imports or exports at the tariff rates obtaining on the
date of declaration for imports or exports by the consignee or consignor or his agent.
Imports which are permitted by the Customs to be declared priorto their entry shall be
subject to the levy of import duties at the tariff rates obtaining on the date of entry of the
means of transport involved.
Article 9
If an import or export is subject to a supplementary duty payment or refund of duty, the
rate of duty on the date of the good's original import or export declaration shall apply.
The specific measures shall be formulated by the Customs General Administration.

7. VERIFICATION OF THE DUTY-PAYING VALUE
Article 10
The duty-paying value of the goods to be imported shall be assessed according to the
CIF price based on the normal transaction price verified by the Customs. The CIF price
shall cover the price of the goods, packing charges, freight, insurance premiums and other
service charges incurred prior to the unloading of the goods at the port of entry in the
Customs territory of the People's Republic of China.
Article 11
If unable through examination to determine the CIF price of an import, the Customs shall
assess its duty-paying value based successively on the following prices: (1) the
transaction price of an item equivalent or similar to and from the same country or region
of origin as the said import: (2) the transaction price on the international market of an
item equivalent or similar to the said import; (3) the wholesale price on the domestic
market of an item equivalent or similar to the said import, minus import duty, other
import-linked taxes or duty and the post-import transport, storage and business costs and
after-profit price; (4) a price valued by the Customs using other reasonable methods.
Article 12
The duty-paying value of mechanic appliances, means of transport or any other goods,
which were shipped out of the Customs territory for the purpose of repairs with the
declaration for exports made in advance and shipped back into the Customs territory
within the time limit set by the Customs shall be identical with the normal charges on the
repairs and the cost of materials and spare parts used for the repairs, both of which shall
be subject to the examination and approval by the Customs.
Article 13
The duty-paying value of the goods which were shipped out of the Customs territory for
processing with the declaration for exports made to the Customs in advance and shipped
back into the Customs territory within the time limit set by the Customs shall be identical

8. with the difference between the CIF price of the processed goods at the time of entry and
the CIF price of the original goods shipped out of the Customs territory or of the identical
or similar goods at the time of entry. The specific measures shall be formulated by the
Customs General Administration governing the varieties of the aforesaid goods and their
control.
Article 14
The duty-paying value of the goods to be imported on lease (including those for rent)
shall be assessed according to the rental for the goods, which is subject to the
examination and approval by the Customs.
Article 15
The duty-paying value of the goods to be imported shall include fees for patents,
trademarks, copyright, proprietary technology, computer software, information, etc.,
which are incurred in relation to the said imports and paid to foreign parties in order that
the goods may be manufactured, used, published or distributed domestically.
Article 16
The duty-paying value of the goods to be exported for sale shall be identical with the
FOB price of the goods with the export duties deducted. The above FOB price shall be
subject to the examination and approval by the Customs. If unable to determine the FOB
price of an export, the Customs shall assess its duty-paying value.
Article 17
The consignee and consignor of imports or exports or their agents shall accurately declare
the transaction price of the said imports and exports. If the declared transaction price is
significantly lower or higher than the transaction price of equivalent or similar goods, the
Customs shall determine the duty-paying value pursuant to the provisions of these
Regulations.

9. Article 18
The consignee of imports or consignor of exports or their agents shall, at the time of
submitting the declaration for imports or exports, produce to the Customs the invoices
indicating the real price, freight, insurance premiums and other expenses incurred for the
goods (with manufactures' invoices, if any), packing lists and other relevant papers for
the examination and approval by the Customs. All the above invoices and papers shall be
signed and stamped by the consignee or consignor or his agent to affirm their
authenticity. Article 19
The consignee or consignor or his agent shall produce the invoices and other papers for
the Customs to assess the duty-paying value of the goods to be imported or exported. If
necessary, the Customs may examine the relevant contracts, accounts, bills and other
papers of both the buyers and the sellers or make any further investigation. The Customs
may also check the above documents and papers even after the levy of Customs duties
on, and the release of the goods in question.
Article 20
In case the consignee and consignor or his agent fail to produce the relevant documents
and papers stipulated in Article 18 for examination by the Customs at the time of
submitting the declaration for imports or exports, Customs duties shall be levied
according to the duty-paying value assessed by the Customs. No adjustment shall be
made of the Customs duties already collected even though the relevant documents and
papers are subsequently produced to the Customs.
Article 21
In case the CIF price of imports, the FOB price of exports, the rental for imported or
exported goods, the charges on repairs or the cost of materials and spare parts are
computed in foreign currencies, they shall be converted into RMB at the price between
the buying and selling prices quoted by the State administrative organ in charge of
exchange control in Schedule of Exchange Rates of RMB Against Foreign Currencies on
the date of issuance of the duty memorandum. In case the exchange rate of any foreign

10. currency is not available in the Schedule, the customs may apply the exchange rate set by
the above administrative organ.
PAYMENT REFUND AND RECOVERY OF CUSTOMS DUTIES
Article 22
The consignee or consignor or his agent shall pay Customs duties at the designated bank
within seven days (excluding Sundays and national holidays) after the date of issuance of
the duty memorandum by the Customs. In case of any payment in arrears, the Customs
may order the fulfillment of the payment according to law, and 1$ of the total amount of
the overdue Customs duties shall be charged as a fee on delayed payment per day from
the eighth day to the date of fulfillment of the payment.
Article 23
The Customs shall levy Customs duties and charge fees on delayed payment of RMB
unless otherwise provided for by the Customs General Administration.
Article 24
The Customs shall issue receipts for any Customs duties collected or any fees on delayed
payment charged. The form of their receipt shall be prescribed by the Customs General
Administration.
Article 25
Under any of the following circumstances, the consignee or the consignor or his agent
may, within one year from the date of payment of Customs duties, claim for a refund
from the Customs by submitting to the Customs a written which his claim shall not be
entertained: (1) any amount of Customs duties is overpaid as a result of the wrong
assessment by the Customs; (2) any duty paid on goods imported which are exempted
from the examination by the Customs are discovered to be short-landed with the
verification by the Customs; (3) any duty paid on goods to exported are not shipped for
some reasons and declared to the Customs as shut-out cargo with the verification by the
Customs. Any delayed application for a refund shall not be accepted.

11. Article 26
In case Customs duties are short-levied or not levied on imports or exports, the Customs
may, within one year after the date of payment of Customs duties or the date of release of
the goods, recover the amount of Customs duties short-levied or not levied. If any
imports or exports are short-levied or not levied owing to an act in violation of the
Customs regulations by the consignee or consignor or his agent, the Customs may
recover from him the Customs duties short-levied or not levied within three years.
REDUCTION OF EXEMPTION OF CUSTOMS DUTIES AND ROCEDURES OF
EXAMINATION AND APPROVAL
Article 27
Goods falling in any following categories may be exempted from the levy of Customs
duties upon verification by the Customs: (1) goods of a consignment on which Customs
duties are estimated to be below RMB ten Yuan; (2) advertising matters and samples,
which are of no commercial value; (3) goods and materials, which are rendered gratis by
international organizations or foreign governments; (4) fuels, stores, beverages and
provisions for use en route loaded on any means of transport, which is in transit across
the frontier. In case any goods exported are shipped back into the Customs territory for
some reason, the original consignor or his agent shall submit a declaration for entry with
the original documents and papers attached and verified by the Customs, import duties
may be exempted. However, the export duties already collected shall not be refunded.
Imports returned abroad for any reason shall be declared to the Customs at the place of
exit by the original consignee or agent and the original import documentation shall be
presented. If the Customs examination verifies the details, export duties may be
exempted, but import duties are not refunded.
Article 28
The Customs may, in consideration of any of the following circumstances, grant
reduction or exemption of Customs duties on any goods falling in any of the following
categories: (1) goods damaged, destroyed or lost en route to the Customs territory or at

12. the time of unloading; (2) goods damaged, destroyed or lost as a result force majeure
after unloading but prior to release; (3) goods discovered already leaky, damaged or
rotten at the time of the examination by the Customs, provided the cause is proved to be
other than improper storage.
Article 29
Customs duties shall be reduced or exempted on goods and article in accordance with the
relevant provisions of the international treaties, to which the People's Republic of China
is a contracting or acceding party.
Article 30
The levy of Customs duties may be exempted temporarily on samples, exhibits,
engineering equipment, vehicles and vessels for construction, instruments and tools for
installation, cinematographic and television apparatus, containers of goods, and theatrical
costumes and paraphernalia, which are permitted by the Customs to be temporarily
shipped into or out of the Customs territory and reshipped out of or into the Customs
territory within six months, provided a deposit of an amount equivalent to that of the
Customs duties or a guarantee is submitted to the Customs by the consignee or consignor.
The time limit of six months stipulated in the preceding paragraph maybe extended at the
discretion of the Customs. If, subject to examination and approval by the Customs, an
extension of the import period is granted for temporarily imported engineering
equipment, vehicles and vessels for construction, etc, the Customs shall, during the
extension period, levy import duty pursuant to the period of usage of the respective
goods.
Article 31
Raw materials, supplementary materials, parts, components, accessories and packing
materials imported for processing and assembling finished products for foreign business
persons or for manufacturing products for export shall be exempt from import duties
pursuant to the actual amount of goods processed for export; or import duties may be

13. levied up-front on import materials and parts and subsequently refunded pursuant to the
actual amount of goods processed for export.
Article 32
Measures on the levy or exemption of Customs duties on free replacement goods shall be
separately formulated by the Customs General Administration.
Article 33
Customs duties shall be reduced or exempted in accordance with the provisions set out in
the relevant regulations on goods imported into or exported out of the designated areas,
such as special economic zones or the designated enterprises, such as Chinese- foreign
equity joint ventures, Chinese-foreign contractual joint ventures and sole enterprises with
foreign investment, and also on goods falling in the category of preferential treatment by
laws and regulations.
Article 34
In case the consignee or consignor or his agent applies for ad hoc reduction or exemption
of Customs duties on imports or exports, a written application specifying the reason
therein and necessary documentary evidence shall be submitted to the Customs for
examination prior to the importation or exportation of the goods. The Customs shall
transmit the application verified to the Customs General Administration, which may, in
accordance with the relevant regulations formulated by the State Council, examine and
approve it with or without consulting with the Ministry of Finance.
Article 35
If the Customs, in relation to imports granted preferential duty reductions or exemptions
pursuant to the provisions of the State laws or regulations, examines and approves, within
the supervisory and control period, an application for the sale or assignment of such
goods or their use for other purposes, the value of the goods shall be reappraised in
accordance with the period of usage and supplementary payments of import duties made.

14. The supervisory and control limit of years shall be formulated separately by the Customs
General Administration.
PROCEDURE FOR APPEAL
Article 36
If a person obliged to pay Customs duties disagrees with a decision by the Customs in
relation to such matters as duty payment, duty reduction, supplementary payment or the
refund of duty paid on imports and exports, the party concerned shall first pay the amount
determined by the Customs, and then, within 30 days of the Customs issuing a receipt of
payment, lodged with the Customs a written application for reconsideration. The
Customs shall not accept an appeal lodge after the expiry of the prescribed time limit.
Article 37
The Customs shall make its decision on the appeal within 15 days as of the date of receipt
of the appeal. Should the person obligated to pay Customs duties refuse to accept the
decision, he may appeal to the Customs General Administration for reconsideration
within 15 days as of the date of receipt of the notice of decision.
Article 38
The Customs General Administration shall make its decision on the appeal within 30
days after the date of receipt of the appeal and accordingly notify the person obligated to
pay Customs duties of the decision. Should the person obligated to pay Customs duties
find the decision made by the Customs General Administration unacceptable, he may
bring the case to the people's court within 15 days as of the date of receipt of the said
decision.
PENALATIES
Article 39
Any act in violation of these Regulations which constitutes the crime of smuggling, or of
the regulations on the Customs supervision and control shall be dealt with in accordance

15. with the provisions of Customs Law of the People's Republic of China, Regulations for
Imposing Administrative Penalties under the Customs Law of the People's Republic of
China and other relevant laws or regulations.
SUPPLEMENTARY PROVISIONS
Article 40
The Customs shall, in accordance with relevant regulations, reward any individual or unit
who provides any information or assistance which leads to the uncovering of any evasion
or avoidance of Customs duties in violation of these Regulations. The identity of the
individuals or units concerned shall be kept confidential.
Article 41
The Customs General Administration shall be responsible for the interpretation of these
Regulations. Article 42 These Regulations shall come into force as of April 1, 1992. Free
import. The following items can be imported into the country if visiting for less than 6
months.
• Cigarettes .The amount of cigarettes increases to up to 600 if staying more than 6
months.
• Alcohol Beverages – 2 Bottles. The alcohol limit doubles to 4 bottles if staying over 6
months.
• Reasonable amount of perfume.
• Guns and Ammunition
• Explosives and Explosive Materials
• Radio Receivers/Transmitters
• Knives and similar dangerous cutting weapons Restricted
• Amongst the items requiring permission to enter China include TV’S, Computers,
washing machine and other electrical goods.

16. A unified certification management system will be established so that domestic and
foreign commodities will be quarantined and inspected according to the same standard,
said Li Changjiang, head of the State General Administration for Quality Supervision,
Inspection and Quarantine.