Business Organization - coca cola Assignment

Business Organization
COCA-COLA

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
About Coca Cola....................................................................................................................1
Analysis of Business environment.........................................................................................5
CONCLUSION .............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Organization is defined as an entity or business unit which is consider as combination of
multiple peoples who work according to specific objective. In an organization staffs conduct
their operations and functions in order to attain goal by following management structure. For
every company it is essential to analysis foreign direct investment so that they can develop
strategies in effective manner (Kohonen, 2012). Organisation selected for this assignment is
Coca Cola which is founded in year 1886 and its place of origin is United State. It offer variety
of coca cola such as Diet coke, Coca Cola Life, Coca Cola mango, Coca Cola Cherry and many
more. Topics included in this report are information related to respective firm as well as analysis
of business environment by adopting appropriate analytical approach or method such as PESTEL
analysis and Porters five force model. This is so because these are most appropriate for collecting
information about the company effectively.
MAIN BODY
About Coca Cola
Coca Cola is one of the leading soft drink company which is founded in at 8th May 1886
by John Stith Pemberton and then it was purchased by Asa Griggs Candler who is a businessman
(About Coca Cola, 2019). It headquarter is situated at Atlanta, Georgia, United State. The
respective company offer their products and service at worldwide level. They also offer variety
of products such as Diet Coke, Caffeine free Coca Cola, Coca Cola Zero Sugar, Coca Cola
Vanilla, Coca Cola Life, Coca Cola Cherry and many more. Along with this there are several
related products which are available at marketplace for example Pepsi, Cola real, Afri Cola, RC
cola, Cavan Cola and so on (Whyte, 2013). Logo of respective company is with red and white
colour which is generally recognized by more than 94 percent of population around the world.
Along with this, it is also ranked in the list of top ten companies who grab business opportunities
at global level. According to data of 2016 there are approx 1,00,300 employees are associated
with respective company at worldwide level (Who We Are, 2019). Coca Cola is operating as
worldwide level which include approx more than 200 countries such as Middle East, Africa,
Latin America, North America, Asia Pacific and many more.
1

Mission statement of Coca Cola will include several factors i.e. they want to refresh
world, develop inspiring moment which leads to happiness and hope. Moreover, it will also
include statement that is they want to develop or create value as well as form difference at
marketplace by offer innovative soft drink. Along with this vision statement of Coca Cola is to
become company who is leader in industry of beverage. For which they adopt innovation at
regular basis as well as they are also adopting innovation in order to protect environment.
According to respective company their values help them in guiding them for conducting
effective action so that they gain proper opportunities and enhance their market shares. Their
values include several elements such as leadership which help in shaping better as well as
impressive future (Mission, Vision & Values, 2019). Another factor is integrity which leads to
objective of always be real and in respect of passion it means to always committed with heart as
well as mind as well as there are several other factors which are consider as respective company
values. Now respective company want to adopt innovation in which are launching new
packaging of Coca Cola bottles in France. This will be plant bottle packaging and its speciality is
that if empty bottle of Coca Cola will place on soil it will be de solve in it and work as a
2
Illustration 1: Why Coca-Cola's 3.5% Dividend Yield May Not Be Enough To Buy
(Source: Why Coca-Cola's 3.5% Dividend Yield May Not Be Enough to Buy. 2019)

fertilizer. The Coca Cola is operating at worldwide level such as in North America (United state
and Canada), Latin America (Bahamas, Belize, Brazil, Bolivia, Argentina and so on), Europe
(Austria, Belgium, Bosna, Denmark, France, Germany and so on). Along with this they are also
operating at various location or area of Eurasia, Africa and Asia Pacific (Coca cola global, 2019).
Financial performance of Coca Cola:
3

4

Analysis of Business environment
Business environment is defined as a technique or tool which is adopted by a company in
order to analysis internal as well as external factors that will impact on business operations and
functions of a company. For example, customers, suppliers, governments rules and regulations,
technological, society need and demand, economical and many more factors. For this analysis
company may adopt variety of theories and models such as SWOT, PESTEL, Porter's five force
and many more. In respect of Coca Cola, they are going to launch new plant based packaging at
France due to which they conduct business environment analysis which help them in identifying
that the respective idea is effective for them or not. For which they adopt several methods or
approaches such as PESTEL analysis, Porter's five force analysis and demand and supply
Scheme, which are explain below:-
PESTEL analysis
This is generally adopted by a company in order to analysis macro factors which will
impact on their performance. Through this an organisation can also able to know that they can
expand their business at new location or not, for which they need to conduct PESTEL analysis of
particular country where company want to expand (Heritage, 2012). In regards of Coca Cola,
they are planning to launch new product packaging at France for which they conduct PESTEL
analysis of France which is given below:-
 Political – It describe as a factor which include several elements in it in respect of
government policies, foreign trade, political stability, tax policies, corruption, labour law
and many more. France is considered as essential country in western world which play
important role in global affairs. It is considered as semi presidential system that
determined through the French Constitution (Whyte, 2013). The respective enjoy
effective and stable political condition. So, it is opportunity for Coca Cola to effectively
operate their business at respective place by introducing new plant packaging. By
adopting or following political factor respective company able to conduct their business
at worldwide level in effective manner. Along with this it will also help them in operating
in legal way by following all government polices.
 Economical – Economic factor include diverse type of elements such as exchange rate,
economic growth, inflation rate, interest rate, unemployment rate, disposable income and
many more. France is considered in the list of top ten economies country in world. The
5

respective country is generally famous for its cosmetics and luxury products as well.
Along with this it is also come in the list of global leaders of aerospace, food, automotive
and railway industry. Economic growth rate of respective company is also high which is
seems as an opportunity for Coca Cola to introduce their plant base packaging in
effective manner. By considering this factors respective company able to develop as well
as sell their products at worldwide level in effective manner. Such as for low economic
condition country they able to service products accordingly which can be afford by
peoples.
 Social – Social factor include several components such as age distribution, career
attitude, safety emphasis, population growth rate, health conscious, lifestyle, barriers
related to culture and many more. In respect of France it is one of the most modern
country of worldwide level. It has nearby 63.5 million of total population as well as
peoples of respective place are more attracted toward fashion, cars, food and beverage,
perfumers and so on (France pestl analysis, 2019). So, it is opportunities of respective
company to launch their new packaging at France because these peoples are more
attracted as well as connected toward their culture and environment. It is necessary for
respective company to consider this factor while developing their products because
through it they able to attract society toward themselves. This will also encourage them to
products health products or drinks.
 Technological – It is considered as factors which is based on several components such as
innovation level, technology incentives, research and development activities,
automations, awareness of technology, technology changes and many more. France is
considered as country which adopt advance technology in effective manner as well as
they also have several areas that are remarkable history such as information technology,
science and space technology. The respective company also welcome innovation or
technology which make their environment effective so when Coca Cola launch their new
plant based packaging, they able to sustain in market by attracting peoples. By adopting
technological factor respective company able to adopt advance technology which help in
conducting things in effective manner.
 Environmental – Factors or elements that are consider in environmental factor are
climate, environmental policies, weather, climate change, NGO's pressure, recycle
6

standard and many more. France is seeming in the list of most visited country around the
world and according to analysis in year 2017 there are 89 million peoples or tourist
visited at respective place (PESTEL analysis of France, 2019). There are several
challenges are faced by respective country related to environment such as air and water
pollution. So, it is opportunity for Coca Cola to launch their plant based packaging
because bottle used in packaging will easily dissolve and work as fertilizer when it place
empty in soil. This will attract peoples of France and enhance business of receptive
company. By considering environmental factor respective company able to mange their
supply change by consider all the climate and weather issues that may affect or damage
their products.
 Legal – Several components which are consider in respective factors are antitrust law,
employment act, copyright legislation, discrimination law, health and safety law, patents
law and many more. There are various rules and regulation at France which are related to
employment, environment, annual pay and leave and many more (Kohonen, 2012). So it
is responsibilities of respective company to follow each and every legislation as well as
policies develop by government which leads to conducting work properly and legally. By
adopting this legal factors respective company able to operate their business operations in
legal manner. This is so because according to they follow all rules and regulation at
worldwide level.
Porter's five force analysis
It is generally adopted by a company in order to conduct analysis of level of competition
at a marketplace so that they develop policies and strategies accordingly which leads to high
profitability as well as competitive advancement. Coca Cola conduct porter's five force analysis
in order to analysis its market value at the market of France which help them in developing
strategies related to launching plant based packaging at respective place. Evaluation of which are
given below:-
 Threat of new entrance - Coca Cola is operating at beverage industry and in that sector,
there are several factors which discourage new business or brand to get enter as well as in
respective industry enhancement of brand is impossible (Baker, 2012). This is so because
it will be required high investment in establishing production plant and marketing
products. Along with this in respective industry loyal customer plays an essential role in
7

growing business. So, in regards of Coca Cola threat of new entrance is low because they
are operating at large level and it is not easy for new brand to touch their level overnight.
 Threat of substitutes – Coca Cola is operating at international level due to which they
face high competition from diverse location or area. At worldwide market there are
various substitutes are available of respective company such as fruit juice, hot and cold
beverage, Pepsi and many more. Due to this threat of substitutes for Coca Cola is high
because switching cost incurred in this is low for service users as well as there are several
competitive companies which offer high or good quality products to customers (COCA
COLA FIVE FORCES ANALYSIS, 2019). In order to avoid this situation respective
company may come up with new innovation such as plant based packaging. This is so
because it will help them in attracting customers.
 Competitive rivalry – There are various companies or brand operating at beverage
industry from which two main brands are Coca Cola and Pepsi. There are also several
small player or company which offer soda at low prices as well as attract local customers.
Due to which competitive rivalry of Coca Cola is high because it is high chance that
customers may get attract through other brand which provide soda at low price in
comparison to Coca Cola. So, in order to overcome this situation respective organisation,
need to come up with innovative strategies which attract more and more customers as
well as help in high market position and shares.
 Bargaining power of suppliers- Coca Cola is operating at beverage industry due to
which they have high options of suppliers as well as in this respect cost included for
respective company is low (Bullmore and Sporns, 2012). So, in this situation bargaining
power of suppliers is low for Coca Cola. There are some raw material used by respective
company whose substitutes product is low or less like sugar but there are high number of
suppliers of this products which shows that respective firm bargaining power is high in
respect of suppliers.
 Bargaining power of buyers – Coca Cola is operating at beverage industry and there are
various companies which are operating such as Pepsi and other local soda brands. Due to
which respective company face high bargaining power of buyer because they have
several other options which offer almost same kind of products at low price. But Coca
Cola have high loyal customers to whom price didn't matter due to which bargaining
8

power of buyer is low (Kahneman and Henik, 2017). By analysing both situation it can
be summarise that bargaining power of buyer for Coca Cola is moderate.
By analysis all the factors of Porter's five force model it can be determine that Coca Cola
can effectively launch their new plant based packaging at France.
Demand and supply scheme
Demand and supply scheme of a company can be determining through analysis of
demand and supply curve. By maintaining effective demand and supply respective company able
to gain high income.
Demand curve is defined as units of products which service user can buy or purchase in a
particular period of time, if a company fulfil it then it will be good demand curve. There is also
law of demand i.e. if the prices of a product will increase then it will reduction in demand
(demand-supply-elasticity-of-Coca-Cola, 2019). In respect of Coca Cola there are several factors
which impact on demand of respective company product, from which some major of them are
given below:-
 Price of relative products: If the price of Coca Cola get increase but other competitive
company offer same kind products at similar and low prices then demand of respective
organisation product get decrease.
 Government policies and legislation: If government of a country act on a company on
negative factor then there will be decrease in demand of company products. Such as
when government declare that they found pesticides in few samples of Coca Cola. Then
9
Illustration 2: Coca-Cola Shows the World How You Nurture a Big Brand
(Source: Coca-Cola Shows the World How You Nurture a Big Brand 2019)

respective company's potential customers will switch to natural drink which decrease
demand of Coca Cola.
Supply curve refers to situation when a company fulfil demand of potential customers
with effectively supply of products (Cooper, 2015). There is also law of supply which describe
as when demand of product get increase then supply will also enhance. In respect of Coca Cola
there are several determinants of Supply which are mentioned below:-
 Number of Customers: If number of customers get increase in market then Coca Cola
will also enhance their supply of products and vice versa.
 Technology State: If respective company adopt new technology then it will impact on
production process of coca cola and reduce production, due to which supply of Coca Cola
products get reduce or decrease (Furnham, 2012).
By above mentioned demand and supply scheme it can be determine that for operating
and lunching new packaging in effective manner Coca Cola need to consider these factors
effectively.
CONCLUSION
By above discussed points it can be determine that for every company it is necessary to
conduct analysis of market at which they are operating because through it they able to determine
effectiveness of foreign direct investment. For which a firm can adopt or implement various
methods as well as theories such as PESTEL analysis, porter's five force along with demand and
supply scheme. Through PESTEL analysis company able to evaluate its external environment
where they are operating its business operations and function. In addition to this company
management must also conduct porter's five force analysis that help in determining competition
level at a particular marketplace. Along with this company may also implement demand and
supply scheme by that they can determine company's strategies in order to full fill demand of
customer by appropriate supply. Through all these analysis company able to develop proper
strategies for enhancing foreign direct investment.
10

REFRENCES
Books and journals
Baker, J., 2012. The technology–organization–environment framework. In Information systems
theory (pp. 231-245). Springer, New York, NY.
Bullmore, E. and Sporns, O., 2012. The economy of brain network organization. Nature Reviews
Neuroscience. 13(5). p.336.
Cooper, R., 2015. Organization/disorganization. In for Robert Cooper (pp. 87-123). Routledge.
Furnham, A., 2012. The psychology of behaviour at work: The individual in the organization.
Psychology Press.
Heritage, J., 2012. The epistemic engine: Sequence organization and territories of
knowledge. Research on Language & Social Interaction. 45(1). pp.30-52.
Kahneman, D. and Henik, A., 2017. Perceptual organization and attention. In Perceptual
organization (pp. 181-211). Routledge.
Kohonen, T., 2012. Self-organization and associative memory(Vol. 8). Springer Science &
Business Media.
Whyte, W.H., 2013. The organization man. University of Pennsylvania Press.
Online
Who We Are. 2019. [Online]. Available
through:<https://www.coca-colacompany.com/careers/who-we-are-infographic>.
About Coca Cola. 2019. [Online]. Available
through:<https://coca-colahellenic.com/en/brands/about-coca-cola/>.
Mission, Vision & Values. 2019. [Online]. Available through:<https://www.coca-
colacompany.com/our-company/mission-vision-values>.
Why Coca-Cola's 3.5% Dividend Yield May Not Be Enough To Buy. 2019. [Online]. Available
through:<https://www.coca-colacompany.com/our-company/mission-vision-values>.
PESTEL analysis of France. 2019. [Online]. Available
through:<https://www.howandwhat.net/pestel-analysis-france-france-pestel-analysis/>.
France pestl analysis. 2019. [Online]. Available
through:<https://www.slideshare.net/iamankitsharma/france-pestl-analysis>.
COCA COLA FIVE FORCES ANALYSIS. 2019. [Online]. Available
through:<https://notesmatic.com/2017/02/coca-cola-five-forces-analysis/>.
demand-supply-elasticity-of-coca-cola. 2019. [Online]. Available
through:<https://www.slideshare.net/abhishekkumar1105/demandsupplyelasticityofcoca
cola-1>.
Coca-Cola Shows the World How You Nurture a Big Brand 2019. [Online]. Available
through:<https://www.fool.com/investing/2019/07/30/coca-cola-shows-the-world-how-
you-nurture-a-big-br.aspx>.
Coca Cola Global. 2019. [Online]. Available through:<https://www.coca-cola.com/>.
11