Analyzing Internal and External Factors for Change in the Beverage Industry

MANAGEMENT 1
MANAGING CHANGE
STUDENT
DATE
ADDRESS

MANAGEMENT 2
1.1 Analyze the internal and external factors that led to a need for change in
beverage industry (Coca-Cola)
It is the responsibility of the market analysis of a company to monitor a company’s internal and
external environmental factors. Coco cola employs both SWOT and PESTEL technique to track
its business environmental factor.
The internal business environment
The business internal environment comprises of factors that influence organizational
performance within its management. The key internal factors that Coca-Cola observes closely
include; ensuring an effective production process, having competent organizational skills and
reliable communication networks (Sokowski, 2015).
External Business Environments
The external business factors affect the business from outside and are considered more powerful
than the internal environment because the business has no control over them. Coca-Cola
recognizes the fact that changes in the external settings create a room for significant threats in its
market. Some of the closely monitored external business environmental aspects include:
consumers perception, economic and political stabilities and demographic patterns (Elearn,
2012).

MANAGEMENT 3
Coca-Cola Company employs the SWOT analysis method to oversee threats and opportunities in
their line of business. This has made it last as a complex firm of the beverage industry for so long
(SHARMA, 2012).
The following are factors used by Coca Cola Company to identify a need for change
Opportunities
Coca cola’s main concern over the years has been how they could improve its trademark and
make its consumers more aware of it. Changes in its branding and packaging have as interfered
although many consumers are never distracted by the innovation of products appearance.
Threats
Presently, the threat of new entries in the beverage industry is no so much extensive. The threat
of substitution is the only strong menace of competition. Coke and Pepsi have caused a very
lackadaisical movement to new firms joining the industry by always acting effectively on
changing attitudes and requirement of their consumers closing every chance of them losing
business to the upcoming firms (Attong, 2014).
1.2 Develop a change plan that effects the necessary transition
Organizational transition is divided into two forms that include: change brought about by situations and
transition that have been recommended and adopted to facilitate development or improvement of an
organization. Transition Management Processes is a sequence of procedures or activities that initiate a