Business Strategy and Current Events Analysis

This assignment delves into key business concepts like Porter's Five Forces, supplier power, substitutes, and ethical considerations. It analyzes a case study involving Coca-Cola, examines an ethical dilemma faced by U.S. Air Marshals, explores the innovative journey of Jack Ma, and discusses Facebook's evolution in response to technological advancements. The document provides detailed solutions for each task, demonstrating an understanding of relevant business theories and their application to current events.

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EFFECTIVENESS IN THE BUSINESS WORLD
Student’s Name:
Professor’ Name:
Date:

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Task 1: Organisational Structure and Business Environment
Coca Cola
The Coca Cola Company is one of the largest multi-national company that deals with the
manufacturing and marketing of beverages like Coke and Fanta. The main functional areas in
the company are the human resources department, production and administration, finance,
marketing, research and development. The company is in the beverage industry. The company
is relevant today as it is the main player in the industry producing at most 70% of the beverages
consumed globally as of 2012.
The company is a secondary sector. It is a publicly owned by shareholders and thus no single
individual or organization can claim the ownership of the company. Several shareholders such
as Berkshire Hathaway Inc, among others, are the shareholders of this firm.
The organization has a division structure that extends internationally due to different operation
from the worldwide staff. Division are all over the world and sub-divisions result in regions and
countries consuming the services. The structure is beneficial to the company due to the increase
in efficiency of work resulting from the division of labor. The management of the organization
abroad is easy and improved in the production of the company. Finally, the structure extends
the services of the company, hence influencing the development and the growth of the
company in terms global industry competition.
Task 2: PESTEL Analysis
P: Political variable
E: Economical variable

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S; Social component
T: Technological variable
E: Environmental variable
L: Legal variable
An article by title: Strategic Management, 2015
Source: Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.
Analyses the PESTEL of JetBlue Airline. Several PESTEL factors affect the company such as;
i. Economic variables
ii. Social components
Task 3: Product and Consumer Demand
IPhone 6 is a product of Apple Company and is among the most consumed and proven to have
a high market demand.
Apple Inc. is among the top companies in the production of mobile phone. Their products are
expensive but have the best quality. IPhones are the best quality compared to other models of
mobile phones.
The price of a new branded iPhone 6 costs about $1500 which is far much more expensive
than any other mobile phone.
The organization offers free delivery and a discount on the gadget for consumers who decide to
visit the organization located in California U.S.A.

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The product is the latest model in the company and has new features that might interest the
consumers. The old model is disposed and consumers look for an upgrade hence increasing the
demand of the product.
The product is also affected externally, since the competitors are weak to increase market
competition. The closest competitor is Samsung and the company’s latest models do not match
iPhone 6 model. As a result, the competition is low and the consumer demand is reduced.
The product has high quality and has unique features that exceeds other models. This is an
advantage over the other models and companies. Secondly, the phone benefits the Apple
organization due to its high demand and is profitable to the company.
Task 4: Competitive Environment
Potential New Threat
The competition between PepsiCo and Coca-Cola has created and brought about great barriers.
The new entrants need a huge capital investment and the explicit research on the foods and
beverages the customers demand in order to start their business. Regardless of the entry barrier,
distribution, production and the sales of the foods and beverages are subjected to environmental
regulations and laws in most of the state in the world and making such new entrants is difficult
in the beverage industry.
Competitive Rivalry
The rivalry between the two companies has created a great tension also a higher standard of
products in the industry. The issue has caused and forced other competitions and rivalry,
existence and the differentiation of the products in the industry. There is a great and vigorous

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competition in the foods and beverage companies, generally between the competition between
the namesake Coca-Cola Company and PepsiCo.
Buyer Power
The threats posed by the buyers, suppliers and the substitutes are near the ground. The most
common ingredients used are commonly water, sugar, and the chemical like; carbonic acid and
caffeine. The types of materials are sold with different suppliers. Moreover, the products
which have different suppliers have less differentiation. Companies with foods and beverages
industries may easily change its suppliers.
Supplier Power
Many of the buyers who deal in soft drinks are mainly the distributors and the wholesalers. The
bargaining power is assumed to be greater and higher than the suppliers. The rapid
development and the differentiations of products in food and beverage industry is said to have
attracted more buyers and therefore, this has lowered the bargaining power.
Substitute
Most beverages industries almost have no substitutes since most of them cover the edible
liquids. For example, such products like congee and soup can hardly be classified or listed as
substitute. The products cannot be classified because they have different functions and are
generally known as a meal alternatives and not drinks.
Task 6: Ethics in Business
Article: U.S air Marshalls fired
Date: June 29, 2012

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The people unethically drink alcohol while on duty. They might have been motivated by an
urge of a little fun. The victims were drinking alcohol in a hotel such that they had free time to
loom anywhere instead of being on duty. To avoid the behaviour, air marshals should have
been on some tasks to keep them busy. If I were in similar circumstance, my reactions would
have been different and ethical.
Task 7: Innovation and Entrepreneurs
Entrepreneur: Jack Ma Yun
Date: 2006
Source: Plake, C., Schiemann, T., Pankalla, M., Hakenberg, J. and Leser, U., 2006. AliBaba:
PubMed as a graph. Bioinformatics, 22(19), pp.2444-2445.
Jack Ma was motivated by the advancement of technology he witnessed during the visit to
U.S.A.
Jack Ma is an internet or rather a technology entrepreneur. Evidently, he is not only an
entrepreneur, but also and innovator since he sees development and accepts it. He manages the
Alibaba Company despite his low academic qualifications and leads it to its success.
Task 9: Business and Change
Facebook is an organization which industrially belongs to communication and media. As part
of development and growth the platform has been in to numerous positive changes over the last
years. The popularity of the company to connect people has led to structural changes since the
organization have been structurally divided to extend the services. As technology is advancing,

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the Facebook Company also developed and more features have been implemented to improve
the services to users.

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Reference List
Foster, R.J., 2012. Coca
‐Globalization. John Wiley & Sons, Ltd.
Plake, C., Schiemann, T., Pankalla, M., Hakenberg, J. and Leser, U., 2006. AliBaba: PubMed
as a graph. Bioinformatics, 22(19), pp.2444-2445.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.
Wee, A., 2016. A new design defect makes the iPhone 6 and 6 Plus touchscreen lost its
function.