Business and Business Environment

This presentation discusses the importance of business in the economy and society, and how the macro environment affects business operations. It also includes a SWOT analysis of Coca-Cola, highlighting its strengths, weaknesses, opportunities, and threats. The presentation concludes with the key success factors for businesses and the need for efficient resource utilization.

Business and Business
Environment

Table of Content
 Introduction
 Macro Environment
 SWOT Analysis
 Strengths and Weaknesses of Macro Environment
 Conclusion
 References

Introduction
Business are considered as important institutions that contribute towards the development of an
economy and society. It contributed towards the economy in various aspects like, creation of
employment opportunities, providing better quality of life and supply of goods and services
Business as a part of market environment operate and run their operational activities in a dynamic
environment that has direct influence on the way they operate and whether they will accomplish
their goals.

Macro Environment
PESTLE framework is imperative for large corporation like Coco-Cola to understand the
factors affecting their business so that necessary measures may be taken to address the issues
in a timely manner. Some of its factors are discussed as: .
• Political factors
• Economic factors
• Social factors
• Technological factors
• Legal factors
• Environmental factors

SWOT Analysis
Strengths: Coca-Cola is a renowned and leading manufacturing brand of carbonated drinks
across the world.
Weaknesses: One of the biggest weakness of Coca-Cola, is its absence in food and other
beverage segments. Obesity among the younger generation is the main concern point and
Coca-Cola must include healthy beverages in its portfolio.

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Opportunities: Diversification is one the biggest opportunity which can multiple the sales
revenue of Coca-Cola by entering into health and food business.
Threats: Coca-Cola is facing a huge indirect competition from other competitors like
Starbucks, Cafe Coffee and other drinks like Real and Tropicana is doing well in the sector.

Strengths and Weaknesses of Macro
Environment
Basis Strengths Weaknesses
Political factor Adhering by the policies of each nation
provide a competitive edge over others.
Low employment wage rate and
availability of raw material within a
budget.
Changes in a government policies or a
political turmoil can disturb the
overseas operations of a business.
Economical factor Increased disposable income of
consumer, political stability and fair and
attractive trade policy within a nation
can increase a market share.
Increase in tariff, interest rates and
exchange rates may result in decline of
sales volume of Coca-Cola.

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Basis Strengths Weaknesses
Social factor Social campaign like getting customised
bottle with the customer's name have
gained a company's presence over
internet.
Changing trends in the taste and
preference of customer as customers are
shifting from carbonated drinks to low
calories drinks.
Technological Advanced technology machinery is
producing a better quality product
within a limited period of time. Coca-
Cola also use social-media platforms to
communicate with their customers.
Keeping pace with the rapid
technological changes results in increase
in cost and time. Handling advanced
technology needs a skilled and talented
workforce.

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Basis Strengths Weaknesses
Legal factor Complying with legal factors ensures
smooth functioning of business
operations across different geographical
locations.
Non-compliance may lead to the cease of
Coca-Cola’s business operations and can
have a negative impact on its brand
image.
Environmental factor Humid and warm climate of a developing
nations would give Coca-Cola a
competitive edge and compliance with
environmental factors helps them to carry
a sustainable and ethical business
operations, by mitigating threat to the
environment.
Producing a carbonated drinks needs a
water and this is the growing concern for
Coca-Cola as the world is facing a serious
problem of scarcity of water and other
natural resources.

Conclusion
From the above state report, it has concluded that the key success of any business lies in its
operational activities by efficient and effective utilization of organization's resources. With
these analyses managers takes in account appropriate measures to combat the threats and make
best use of these opportunities so that the activities of a business may flow and direct in a right
direction to achieve its objective.

References
Trad, A. and Kalpić, D., 2019. The Business Transformation Framework and its Business Engineering
Law support for (e) transactions. In Advanced Methodologies and Technologies in Business
Operations and Management (pp. 230-246). IGI Global.
Adu-Danso, E. and Abbey, E., 2020. Does foreign ownership enhance technological innovation
amongst manufacturing firms in Sub-Saharan Africa?. Journal of Small Business &
Entrepreneurship, pp.1-27.
Lopez-Radcenco, M. and et. al., 2019. Analog data assimilation of along-track nadir and wide-swath
swot altimetry observations in the western Mediterranean Sea. IEEE Journal of Selected Topics
in Applied Earth Observations and Remote Sensing. 12(7). pp.2530-2540.
Deshpande, S., 2019. Social marketing’s strengths, weaknesses, opportunities, and threats (SWOT): A
commentary. Social Marketing Quarterly. 25(4). pp.231-242.

Thank You