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POLITICAL FACTORS

France is a republican state, with a semi-parliamentary system of government, where executive


power is shared between the President of the Republic and the Prime Minister. The government
is headed by the Prime Minister, and he is responsible to bicameral parliament (the National
Assembly and the Senate). The government also has a judicial branch and the legal system is
based on Roman law.
There have been five republics in France since the revolution of 1789, and the current republic is
the fifth republic, which was founded in 1958. Being an advanced country, the French
government understands the importance of FDIs in their country and offers numerous options to
make it is easy for interested individuals or companies to invest in France. This is the main
reason behind Mecca-Cola's unquestioned establishment in France in 2002.
2.8.2 ECONOMIC FACTORS
France is the world's fifth largest economic power in terms of Gross Domestic Profit (GDP). The
public spending of residents in France was 53% of GDP in 2007, against an OECD average of
about 40%. The French republic is in the midst of a transition from modern economy that has
featured extensive government ownership and intervention to a system that relies more on
market mechanisms.
The French government have either partially or fully privatized many government companies,
banks, and insurers, and has relinquished shares in firms such as Air France, France Telecom,
Renault, and Thales. Some of the economic facts are as listed below (Enterprise Europe, 2009):
GDP per capita in 2008: 30,413
GDP Growth: 0.7% (2008 estimate.)
3.
Unemployment rate: 9.4% (June 2009)
4.
Inflation rate: 1% (2008 estimate.)
5.
Net average annual earnings (2007): 21,480
6.
Gross average household savings: 15.3% of disposable in-come
These facts give France a high purchasing power, thus creating sales opportunities for Islamic
related products to the Muslim communities in France.
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2.8.3 SOCIO-CULTURAL FACTORS


With 62.5 million residents in the country, France is one of the least populated countries in
Europe. Their national language is French, but German, English, Dutch and Russian are also
spoken in France. Christians make the highest population, followed by Muslims with 12% of
total population (Enterprise Europe, 2009). Others include Orthodox, Buddhist, handiest and
non-religious people. The social atmosphere in France, given accepts to everybody; this is
because of the fact that the population is mixed with different races and ethnicities across the

world. The highest non-French ethnic group is the African immigrants mainly from North
Africa, the part of Africa where Mecca-Cola's founder was born.
This socio-cultural influence on companies results in high ends of product demands and sales.
Mathlouthi understood this factor and utilized it to the fullest, by first creating an Islamic and
African heritage based radio, which was pivotal to the marketing of Mecca-Cola to its over 3
million audience in 2002.
2.8.4 TECHNOLOGICAL FACTORS
Being one of the world's powers, France has come through numerous eras of technological
advancement, which have pioneered them into the world stage in-terms of heavy duty
productions. Four of French companies are listed in the top 20 of fortune 500 companies, and
only the USA and Japan has more companies than France in the overall fortune 500 listing. This
showcases their technological abilities and production capabilities. On a business context, this
was an added advantage towards the establishment of Mecca-Cola in France, as they had all the
technical tools required for production at a fair price.

Global soft drink market volume by company (1997-2002)


Millions of 192-ounce cases
Company

1997

1998

1999

2000

Coca-Cola

14,358,20

15,094.40

15,173.10

15,701.20

15,925.90 16,211.00

Pepsi-Cola

5,865.30

6,086.80

6,217.10

6,384.70

6,520.30

6,764.20

Cadbury

1,993.10

2,175.30

1,891.60

1,882.80

1,857.70

1,871.70

Zam Zam Cola

156,3

Mecca-Cola

0.5

6,512.80

6,163.80

7,395.50

7,458.30

7,607.30

7,587.60

28,729.40

29,993.10

30,677.40

31,426.90

31,911.20 32,591.20

All
companies
Total

other

2001

Global soft drink market volume by company (1997-2002)

2002

Millions of 192-ounce cases


Company

1997

1998

1999

2000

Coca-Cola

14,358,20

15,094.40

15,173.10

15,701.20

15,925.90 16,211.00

Pepsi-Cola

5,865.30

6,086.80

6,217.10

6,384.70

6,520.30

6,764.20

Cadbury

1,993.10

2,175.30

1,891.60

1,882.80

1,857.70

1,871.70

Zam Zam Cola

156,3

Mecca-Cola

0.5

6,512.80

6,163.80

7,395.50

7,458.30

7,607.30

7,587.60

28,729.40

29,993.10

30,677.40

31,426.90

31,911.20 32,591.20

All
companies
Total

other

2001

2002