PESTLE Analysis and Business Objectives

This report presents a comprehensive analysis of Coco Cola using the PESTLE framework, highlighting key factors such as political stability, economic conditions, social attitudes towards healthy food products, technological advancements in healthcare, legal changes in employment laws, and environmental concerns related to corporate social responsibility. It also discusses business objectives, scope, vision, and mission of different types of organizations, including public, private, and voluntary sectors.

BUSINESS AND THE
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Types of different organisation and its structure...............................................................1
P2 Size and scope of different type of organisation..............................................................2
P3. Explaining the various organisational function and identify..........................................1
P4 Impact of macro environment ..........................................................................................3
P5 Internal and external analysis of organisation...................................................................6
P6 Interrelate the strength an weaknesses from the external macro factors...........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Environment of the business is combination of internal and external factors that influence
operations of the organisation such as employees, customer needs, demand and suppliers,
government, innovation etc. as these factors influence the company or the business environment
and situation. This report contains the purpose and legal structure of the public, private and
voluntary organisation. Coco Cola is the leading industry in beverage industry and it introduced
in May 8, 1886. offers many variety such as diet coke, coca-coal life, coca cola vanilla etc. and it
is the extended globally and considered as the largest companies.
P1 Types of different organisation and its structure.
Public Company (NHS)
Public company are those that are being traded in the stock market and any one buy at
the same sell to any one as they are publicly held company. Business of these categorised
organisation is being managed and managed by federal government. In public organisation is
having the shares of 51% and the rest 49% is being held by the shareholders.
NHS fall in the category of Public company.
Purpose : NHS is generally accountable to public, communities, patients that they serve. There
funding is done through the tax department and the government that sets the regulation for NHS
and it is liable to the parliament for their operations (Bah and Fang, 2015).
Legal structures: They are mostly controlled by the Central, state , local government so they are
closely monitor by the way of section along with the fundamental government. Organisation falls
in the category of state government allows the various factors in their operation and the
government also exercise their control as well as interference. NHS is accountable for the public,
communities and patients as they serve. This is national service funded through the national
taxation and they provide the health care to all the UK citizens rather they are having the ability
to pay or not.
Private Company
Private organisations are those that are having limited liability with private shares and
their operations are generally managed by the individuals having the aim for earning the profit.
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They apply the different approaches to make the organisation profitable. Examples of private
company are Coca-Cola, Vodafone etc.
Purpose : Purpose of the private companies is to connected with the clients and they realised the
substantial amount of profits. Their primary objective is to serve the quality of service so they
can increase their profits (Carballo‐Penela and Castromán‐Diz, 2015).
Legal structure : Legal structure of Coca- coal is to combine the elements of centralisation and
decentralisation. As they reflects the man countries and cultures where they do the business.
They owe the license of nearly 400 brands in beverages in more than 200 countries.
Voluntary Company (Oxfam)
This organisations are well called as the community sector and they are being established
mainly to give their services to the country. Mostly NGOs, non profit organisation, social
welfare organisation are comes under this category. Oxfam falls in the category of voluntary and
having 20 independent charitable organisation and their focus is to eradicate the poverty
globally.
Purpose
organisation is operating to do the help and make the lasting solution for the elimination
of poverty. As they are the part for the global movement to change that empowers the people to
create the future and also take the initiative to secure and make it free from poverty.
Legal structure : legal structure of these sector is being incorporated by the norms and rules that
is set by the constitution to adopt the business.
P2 Size and scope of different type of organisation.
Basis of comparison Small (Royal Merit) Medium (Mc
vities)
Large (Coca
Cola)
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Business objectives Main aim of these
organisation is to generate
the profit and wants to
serve the people in the
locality where they operate
their business.
Their objective is
to provide
effective services
to the customers
that they are
serving at the
international
level.
Their objectives
is to make the
profit and also try
to improve the
level of society.
Products and services They provide the services
in their hotels and gives a
wide array of guest services
and also provide on-site
food and beverages. They
give the amenities like on-
site food and beverages,
meeting and conferences
hall, gaming and fitness
zone.
McVitie's deals in
British snack food
brand and they
sell the biscuits
and produces
chocolate
digestives,
Hobnobs and
reach tea.
Coca Cola
provides the
beverages in more
than 200
countries.
Size It operates mainly in the
single country not having
multinational branches
(Carballo‐Penela and
Castromán‐Diz, 2015).
It is operating in
many countries.
It operates in
more than 200
countries and
having more
than15000
employes.
Scope The scope of the hotel is to
provide the best services
for stay, day outing, held
conferences and the
services attached top this
industry.
It comes under
the scope that
company serve
the healthy food
in confectionery
industry.
company is to
provide many
more varieties in
the soft drinks
and in the food
sector.
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Vision and Mission of
organisations
Vision of Merit Royal is to
provide the best services in
the field of hospitality.
Mission of this industry is
to make the stay
memorable for the visitors
who will come and enjoy
the property.
Mc vities is to
give the products
that is healthy and
good for the
perspective of
health
(Dangelico,
2015). Mission is
to include more
products from the
confectionery
industry so the
customers can eat
without any
impact on their
health.
Having the aim of
company is to
provide the drinks
in a affordable
price. Mission is
to add more
beverages that is
healthier for their
customers and
create the value
for the customers.
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P3. Explaining the various organisational function and identify
Coca-Cola organisational structure define the duties and responsibilities and control that
are responsible or performing various functions in order to attain the objective of the industry.
Organisational structure is a system in the company that outlines all the activities in the industry
that help the staff from top to low level to achieve the objectives of the company. In the
organisation, they follow hierarchical structure that concentrated of top to low level position and
furthermore, it also focuses on cross-functional structure. There are various functions of Coca-
Cola are; consumer service, Marketing and sales, distribution, finance, etc.
Marketing
This function of Coca-Cola plays an important role that perform various tasks to attract
and influence consumers as well as individuals for various organisational reason. Marketing
function is interrelated with other function of the industry such as; human resource or finance.
For example; various activities of doing the marketing is to vacant position and enable HR of
Coca-Cola to hire the best candidate. Finance is the main source in the marketimng function as it
need the liquidity fulfilled by the finance department. The marketing function enable
organisation to achieve their organisational objective as it enable the business to build
communication and relationship with the potential customers and other businesses. Marketing
build the image of brand (Dangelico, 2015).
Finance
Essential function of this department is to manage liquidity or money of the industry and
they are responsible to manage investment of the organisation as well as have control on
different expenses of Coca-Cola. Furthermore, the function of finance is interrelated with the
utilisation of resources for various operations. Finance is important in order to meet these
requirements such as organisational objective, industry require different strategies, people,
innovation all are associated to finance.
Human Resource
Coca-Cola Human Resources have to carr effective and strategic management of internal
task process and utilising the organisational resources effectively. HR department are responsible
to recruit and select right skilled people that enhance productivity of all the department or of the
organisation as whole. Recruiting and selecting right candidate at right position with right skills
add benefit to the company as this will helps in enhancing productivity of the industry. Other

than that, the function of finance provide fund to conduct all the HR activities and marketing
attract people so that they can perform their tasks (Hamilton and Webster, 2018).
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Advantage or Disadvantage
 It is the basic advantage of different functional unit is that it help in creating a culture of
cross-functional team that contains different specialised person from various department
in one group and all the functions can work together to attain organisational goal.
 Disadvantage of interrelationship is that every staff in Coca-Cola are able understand the
job discription of various department that break the secrecy. This also enhance
competition that will lead Coca-Cola to decrease their innovation and flexibility as
different functional group are not able to communicate more often (Khan and Quaddus,
2015).
P4 Impact of macro environment
It describe the factors that is affected by the macro environment and used in the scanning
of environment and for the strategic management. It is the external analysis or the strategic
approach that is used to do the market approach and gives the overview of different macro
environmental factors.
Political factor
As the Coco Cola company is operating in the soft drinks sector so they have to expose
themselves with different political environment and political risks. As president of America is
constantly encouraging the Coca Cola to increase their sales.
Positive : By the fair regulations of government Coco Cola can increase their efficiency that
enhance the sales and make them success in achieving the growth (Kljucnikov and et.al., 2016).
Negative : if the rate of tax increase than it leads to increase the prices of several products and
that leads to decrease in the sales due to the increase in political restrictions even on export of
certain products. It also hinders the working of the company that will impact the production of
products (Lee and et.al., 2015).
Environmental factor
This factor affects the business that includes climate changes or any change in natural
resources that will impact negatively on the existence of organisation. Coco Cola is being
consider as the responsible industry towards the society and environment as they contribute in
the elimination of pollution by deceasing the waste, contribute in the CSR.
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Positive : if the company is aware about the environment and towards the society than it will
have positive goodwill in the eyes of law and eco friendly policies makes the sustainable growth.
Negative : Changing the laws of the environment, scarcity of raw material an resources as it
make the immense pressure from the government agencies than it leads to affect the operation of
company.
Social factor
This factor influence a great on the business as the culture of society impacts a lot in the
culture of organisation as the attitude and belief plays the important great role in the analysis of
customers demand in the given market. This factor includes the change in the lifestyle of people,
culture, trends, fashion.
Positive : Company always have the opportunity to provide the products as per the taste and
preference or the demand of the consumers that helps them in building the effective consumers
through various marketing platforms like social media, television etc.
Negative : Neglecting the fluctuating market trends leads negative effect to the company and it
will subsequently decrease the profitability and also impact badly on the brand image (Svensson
and Wagner, 2015).
Technological factor
Technological factors are associated with the innovation of products by using the various
latest technologies in the company to enhance the sale and that leads to generate more profits.
Positive : By introducing the new technology make the business to increase their sales and
attract more new customers.
Negative : If the company is not able to change the technology as per the trends than the
competitors will take the advantage and also make the company to retain the customers and the
brand value.
Legal factor
As Coca Cola is currently the subject of law suit that is being filed in the district court of
California by the Praxis Project that is non profit group, they make the allegation that Coca Cola
deceive the consumers and misleading them in terms of their health in drinking the sugary drinks
and soda (Teh and Corbitt, 2015).
Positive : International legislation make the company to easily connect from the global world
and encourage the trade.
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Negative : The company can not do any discrimination if they do they have to face the legal
action for misleading the investors and it broke down the consumer base.
Economical factors
Coca Cola is having the highest revenue and match it with the wall street expectation.
Economic factors includes the inflation rate, savings rate, interest rate, foreign exchange rates
helps in determining the total demand and investment in the economy. In fact this factors impact
the competitive advantage of the firm.
Positive : As the inflation rate decreased at the time of separation of UK and EU that is called as
Brexit that reduce the prices of products and it leads to attract more customers towards their
product.
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Negative : As the fluctuation in the exchange rate leads to hamper the operation and functions of
the Coco Cola. Purchasing power and reduced demand of consumers will lead to decrease the
sale and sometimes they may lead to change the product line (Trkman, Budler and Groznik,
2015).
P5 Internal and external analysis of organisation.
Internal Analysis of Coca Cola
Strengths
It is having the strong brand reputation all over the world as it is being in the 3rd position in 2016
and comes among “Best Global Brands” that rank among the top brands world wide.
Strong financial stability so it can be sustain at the time of crisis.
It has a global reach in more than 200 countries.
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Illustration 1: PESTLE Analysis of Coco Cola
Source: Pestle and swot analysis of coca cola,2017.

Coco Cola do the strong Corporate Social Responsibility in the field of conservation of water
and the recycling of water, education, health etc.
Coco Cola is having the brand recall of all coca cola products through the mode of advertising
and marketing as they associate with the celebrity brand ambassadors.
Weaknesses
It has been found that the presence of traces of pesticides in the beverages and it badly impacts
on the health of consumers and it cause the damage to the goodwill of the company.
Coca Cola is having the strong and tough competition with the Pepsi and they are having the
constant fight in all over the market share (Hockerts, 2015) .
External Analysis of Coco Cola
Opportunity
It has to increase its reach in the countries where the did not reached or the countries having low
sales thus it can boost the market.
Company has to diverse into the other fields such as food and they have to take the risk to enter
into the food market also.
Company may introduce healthier drinks or say healthier range of products that may give the
advantage to boost the market.
Threats
Reduce the customer needs for carbonated drinks as the time changes consumers trying to avoide
this drinks as it is having the adverse impact on health and now the move forward towards the
healthy drinks thus it affects the sales of Coca Cola.
Coca Cola is having the heavy competition from not only Pepsi but also from the local beverage
manufacturers as they eat the market of Coca Cola.
Coca Cola is having very weak portfolio of their product and it is one of the biggest threats for
the company they need to have a strong portfolio of the healthy food and beverages (Hamilton
and Webster, 2018).
SWOT Analysis of NHS
Strength
They have the highest stake in the market
Weakness
Lack in long term approach.
Lack in retention of employees.
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Threats
Competitor actions.
Need the clarity in the behaviour and
encourage the behaviour what is being need by
the company.
Opportunities
Better relation among the employees and create
the positive environment
Having the clear strategies in business.
P6 Interrelate the strength an weaknesses from the external macro factors.
As the internal factors of the business always interrelated with the external factor of the business
as the strength of the business is connected with the positive impact of macro environment
factors at the same weakness is associated with the negative impact of these macro
environmental factors. It is very true that strength and weakness are the two opposite factors that
give the power and weakness of an organisation (Khan and Quaddus, 2015).
As the company is having strong financial condition than the company can easily do the survival
at the time when the country is facing the economic crisis,fluctuation in interest rate etc. it is
directly related to the economic factor of PESTLE.
As the product of the company is having the pesticides than it will impact the
Social factors of PESTLE and also it impact badly on the reputation of company so the company
must be considered about the healthy food products. In fact the company has to take the benefit
from the potential competitors and make the strategy so they can serve the quality service to their
customers. In this the political and economic factor are the main issues in the weakness of Coco
Cola (Trkman, Budler and Groznik, 2015).
PESTLE analysis of NHS
Political factor - Political environment in nation is affecting the NHS operations, regulations
and rules of company and government cannot go hand in hand and its is noticed after election.
due to some changes in political environment firm overall business structure is impacted that
affect its functions.
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Economic factor- Due to increasing labor cost, it impact on NHS hiring procedure and its
financial budgets. Firm required talented and qualified people, raising cost in labor market NHS
management will affected the most.
Social factor- Most of the people in economy still having the old believes in which they cannot
allow their family women to take health treatment with male doctors. thus, it impact on NHS
working styles ad they need to hire female Doctor who can treat women's.
Technology factor- In recent time, many hospitals use new advanced technology that provide
better health care treatment to people. it impact on its operational efficiency and market
reputation.
Legal factor - Change in employment laws NHS also make some changes in their existing
employment contracts that might be affect its other functions which is not appropriate for
business growth and success.
Environmental factor - CSR play essential role within NHS business, according to corporate
social responsibilities compay must contribute to economy well fare, it they cannot give its
contribution it makes barriers within their operational success.
CONCLUSION
This report concludes about the types of organisation that is Public, Private and Voluntary and
explains their purpose and legal structure of the company. This report also elaborates the
business objectives, scope, vision and mission of small, medium and large business. It also
contain the interrelationship between the different departments of Coco Cola that are finance,
marketing, human resource department and explains the positive and negative impact of
PESTLE analysis and there are many factors that is to be improved by the Coca Cola by making
the proper strategies. Biggest strength of the company is political stability and that gives the
support to the operational factors and brand building in the market place at ten same it also
ensure the smooth functioning of an organisation.
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REFERENCES
Books and journals
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