(PDF) Organizations with Purpose

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PART: 1
TYPES AND PURPOSE OF AN ORGANIZATION:
An organization is such a place where group of people work together with a same vision and a common goal.
An organization can also be seen in a family where all the members have their own responsibilities and roles.
An organization as a big place has its various structures where people work as per their qualification. All the
organizations have their own purpose like all the employees work for a common goal and all have their own
vision, mission, values and strategic properties. Similarly the organizations have their visions too fulfill their
missions and values is the situation where the employees are working in the organization.
PUBLIC ORGANISATION:
Public organisation is such organisation which is owned, controlled and managed by the government wholly or
partially. The main motive of the public organisation is to provide public service. Government has more than
50% shares in a public organisation. All the funds required for the public organisation are provided by the
government wither from the public subscription or from its budget as well.
Public sector organizations have their own purposes. Since it is controlled by the government, its purpose is to
provide services to the whole nation. Public organisation always focuses on utilizing the scarce resources in
order to amplify the productivity.
A BRIEF HISTORY OF B.P KOIRALA INSTITUTE OF HEALTH SCIENCES.
BPIKHS was established on Jan 18, 1993 and later was upgraded as university on 1998 whose theme was to
provide the health service to the general public and also for the health research. The hospital is located in the
eastern part of Nepal and has unmitigated its health service through teaching district concept to primary health
care centers, district hospitals to zonal hospitals. It is the set example of cooperation with India because the
health ministries of two countries signed an Indo-Nepal agreement during its establishment in the occasion of
shiva raatri. Also the DPS-BPKIHS school was established with the help of Delhi public school India.
VISION:
Self-reliant university luring all the students and teachers from all over the world to research educational
programs. Providing the health service to the urban as well as the rural areas. A very prominent health center for
the research program and best for the infectious diseases. A health development project through its district
hospitals developing the environment and human relationship and excellence for the medical services.
MISSION:
The mission of the BPKIHS is to provide the excellence, caring, communicative and socially accountable health
workforce acting as agents, best innovation center and the research program as well as the educational facilities
by collaborating with the stakeholders.
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GOALS:BPKIHS have the educational goals of present and future educational program to be need based,
integrated, community based oriented epitomized in Edinburgh declaration of 1988.Moreover,in order to
minimize the health problem and emerging diseases, more emphasis is given to the research program and goals.
STAKEHOLDERS:
Stakeholders of the BPKIHS are the employees, unions, community, directors etc.
PRIVATE ORGANISATION:
Any organisation, agency, corporation, partnership or person which are not controlled by the Government and
whose motive is to earn profit is known as private organisation. There is no interfere from the government but
there may be some rules and regulations executed by the government. Some of the examples of the private
organisation are TATA group, reliance etc. There are different types of private organisation which are described
below:
Sole trader or sole proprietorship:
It is the form of business which is commenced by the single individual, proprietor or owner. The owner or
proprietor represents the firm. All the assets and liabilities are borne by the owner. Moreover, single person uses
his own funds to start the business. The owner is entitled to bear all the losses or profits by himself or herself
which may occur in the organisation. The owner runs the business and manages all the day to day task and
operations. In case of debt or the downfall of the organisation then owner should pay from his personal
property. The financial statements are not necessary to be made available to the public. Some of the examples
are, saloons, news agents etc.
Partnership:
A partnership is a type of company where a formal arrangement is made between two or more persons who
agree to be co-owners, assign responsibility for operating an entity, and share the revenue or losses created by
the company. It is a firm where there are 2 to 20 members. All the members provide their contribution (in cash
or in kind) in a firm and share the profit and losses as per their deeds like percentage, depending upon the
contribution of the partner. Partnership has the unlimited liability which means in case of debt all the partner
should pay as per their deeds and also should use their private property to pay their debts.
The general partnership can be defined as those partnerships where rights and obligations are fairly shared in
terms of management and decision-making. For the debts and liabilities incurred by the other partner, each
partner should assume full liability. All the other partners are deemed liable if one partner is sued. The creditor
or court will keep the personal assets of the partner. To run a company, a general partnership requires two or
more owners. Each partner represents the firm with equal rights in this partnership. Both partners can participate
in the activities of management, decision making, and have the right to control the business. Likewise, gains,
debts, and liabilities are equally shared and equally distributed.
Limited partnership includes all general partners and limited partners. The general partner has unlimited
responsibility and oversees the corporation and the other limited partners. Limited partners have limited
ownership of the business (limited to his investment). They are not affiliated with the company's daily activities.
In most situations, restricted partners just invest and take a share of the gains. In engaging in management or

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decision-making, they have no interest. This non-involvement means that they do not have the right to pay for
the damages suffered by the partnership on their income tax returns.
private limited companies:
A small or large business can be a private limited company. A private limited company has limited liability, and
after the corporate name, sometimes these forms of business have 'Ltd'. 'Green Building Ltd' will be an example
of that. Any form of business, such as a plumber, hairdresser, photographer, lawyer, dentist, accountant or
driving instructor, may be formed as a private limited company. The members of a limited private corporation
are known as shareholders. Before they can buy a share of the business, shareholders have to be invited by the
company. A part or percentage of a corporation is a share. According to the Companies Act 2013, a minimum
number of two and a maximum number of 200 members or shareholders are required prior to the company's
registration. For the registration of a private limited company, a minimum number of two directors is required.
Each of the directors should have a DIN, i.e. the identification number of the director provided by the corporate
affairs ministry.
For a public corporation, it need a lot of cash. A minimum share capital of Rs. 5,00,000 is required by a public
company. The previous minimum amount of share capital was Rs. 1,00,000 for a private corporation, but now
there is no such minimum compulsion. There is also no pressure regarding the specifications of the fund.
Mostly private limited companies are run by the family members or also by the close friends. Public cannot buy
the shares of private limited companies or they cannot subscribe the shares through the stock exchange. Private
limited companies sort from small companies to medium companies. Moreover, Private companies have the
limited liability.
Public limited companies:
A Public Limited Company (PLC) is a separate legal body selling its shares to the general public to be
exchanged on the stock exchange. According to the rules of corporate law, in order to preserve transparency, a
PLC needs to show its financial stats and role publicly.
Public limited companies can range from the small sized company to medium sized companies. Simply put, a
public limited company shareholder is not individually responsible for any loss or liability of the company in
any amount greater than the amount invested by the company; unlike partnerships and sole ownerships, where
the partners and business owners are collectively and severally liable for the company's debts. This feature of a
public limited company, however, does not give shareholders immunity. The owners would be held accountable
for their own unlawful behaviour. They are only liable only the amount they have invested. Moreover, their
shares are listed in the stock exchange so that their shares can be sold and bought by the public. Shareholders
are the owners of the business. A public limited company is required to have, as provided for in the Act, a
minimum paid-up capital of Rs 5 lakh or a higher sum. Due to less risk, by investing in new ventures from the
money raised from shares, there is a perfect opportunity for increasing and expanding the company.
Unlimited companies:
A type of private company is an unlimited company. It has certain attributes similar to a limited company. It is
registered at Companies House and, among other normal features of restricted companies, it has representatives
(usually shareholders) and directors. However, this sort of company's shareholders (or members) have unlimited
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liability. This implies that, in the event of its insolvent winding-up, each member is collectively and severally
responsible for the company's debts. If the company needs more funds to cover its debts or liabilities on
winding up, it will call on shareholders to make up the difference by contributing whatever sum is required.
Unlimited companies are often known as Mixture Company which are incorporated with or without share
capital.
Unlimited businesses can benefit from some of the opportunities that restricted businesses do. As there is a
separate legal identity, it means that, in its own right, the corporation can enter into such agreements. This
makes sure that certain directors or shareholders will outlive the company.
Conglomerate:
A conglomerate is the merger of two or more businesses, typically involving a parent company and several
subsidiaries, engaged in various business activities that come under one corporate category. Sometimes,
conglomerates with various sectors are massive and multinational. Holding companies which holds many
substantial subsidiaries company are conglomerate.
In a conglomerate, in a variety of smaller businesses that do business independently, one corporation holds a
majority interest. The businesses under the conglomerate vary fully from each other and there are no synergies
between them. By investing in a variety of different markets, i.e., financial diversification, these businesses
diversify business risk. The subsidiaries of the conglomerate function independently of one another, but the
management of the subsidiaries reports to senior management at the parent company.
Conglomerate is a company where many units are operated in different parts of the country. Conglomerates are
very necessary for the public because conglomerates helps in agricultural, managerial and industrial and so on.
Examples of conglomerates are trading and manufacturing, building materials etc.
Multinational companies:
A multinational corporation (MNC) is an entity that exists both in its home country and in other nations across
the globe. It maintains a country-based central office which coordinates the management of all its other offices,
such as branches of administration or factories. Multinational companies are simply the holding companies
having shares in subsidiaries companies in many sectors. All the subsidiaries company are implied the company
law of the host country where the subsidiary company are located
The company must be big in order to become a global corporation and must own a vast number of properties,
both physical and financial. The ambitions of the business are high, and they are able to produce large income.
Production and marketing activities in various countries are maintained by multinational corporations. The
organization will supervise multiple offices in each country that operate through multiple branches and
subsidiaries. Corporate multinationals continue to expand. Even as they operate in other countries, by
continuously updating and executing mergers and acquisitions, they aim to increase their economic size. They
need to make sure that their investment will expand significantly as a business goes global. They need to make
use of capital-intensive technology, particularly in their production and marketing activities, to achieve
substantial growth. The goal of multinational corporations is to hire only the best managers, those who are able
to handle vast sums of funds, to use advanced technology, to manage employees and to operate a massive
business organization.
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MNCs may take advantage of economies of scale, due to their large size, and expand their global brand. The
growth is accomplished through strategic manufacturing/service placement, enabling the business to take
advantage of undervalued services across the globe, supply chains that are more productive and cheaper, and
advanced technological/R&D capability.
A BRIEF HISTORY OF COCA-COLA: (multinational Company)
A most well-known largest beverage company all over the world Coca-Cola is one of the bestselling and
marketed beverage by the Coca-Cola Company. It is almost liked over the world commonly preferred as soft
drink and has got majority of share in the beverage market in Brazil, India, Canada, Unite states and most of the
European countries (Forbes, 2020).Coca-Cola company has been able to maintain its position to be a leader over
hundred years and still developing strong. Coca-Cola company initially was private company but later it turned
into publically traded company. Also, it was named as 'coke' in 1945.
Coca-Cola is amazingly flourishing in Nepal. Coca-Cola is distributed by the bottlers Nepal which is owned by
the Khetan group which is the sole importer and distributor in Nepal. In 1979, US provided the coca cola
powder in Nepal and since then Coca-Cola production has started in Nepal. Coca-Cola has now made its large
market in Nepal and also preferred the people. Almost every shops and restaurants offer Coca-Cola in Nepal.
Coca cola has its different brands such as Coca-Cola, Diet Coke, PowerAde, Fanta, Sprite, Georgia, Fuze Tea
etc. The coca cola was founded in 1886 whose recent CEO is James Quincy.
GOALS AND OBJECTIVES:
Normally most of the companies make a strategic goals for a long run but Coca-Cola company changes its
strategic goals every three years. Some of their goals in strategic planning includes: recruitment and retention of
professional employees, establishing an good corporate image, satisfying the needs and wants of customers
through excellent service, providing the quality product to the customers. But the Bottlers Nepal have their
strategic goals for a long run. Some core aspects strategic goals of Bottlers Nepal are:
To address all the concerns of the consumers.
Marketing and advertising are focused on point of sale.
Affordable price.
MISSION:

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Coca-Cola mission is to be unique and forge a value. It aims to motivate moments of optimism and happiness
thorough their brands and actions. Ultimately its main mission is to refresh the worlds mind, body and spirit.
VISION:
In order to achieve the mission, Coca-Cola has set goals to develop its market with bottlers Nepal to deliver
people through motivating them to be the best they can provide. It offers the world a portfolio of drinks brands
that anticipate and satisfy the needs of the customers. It fosters the winning network partners building mutual
loyalty. It has a goals to be the responsible global citizen that helps to develop greater healthy community. In
case of profit, it wants to increase the long term return to shareholders. It wants to produce at glance so that it
can grow large and move fast.
VALUES:
To be a leader and to shape a greater future is one of its value. Integrity and collaboration is the company’s
value where it wants to be real. Company has greater passion and has a huge diversity which is very committed
in mind and their heart. Ultimately, quality is its main value so that it can retain its customers in a long run.
ORGANIZATIONAL STRUCURE:
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FIG: Organizational structure of Coca-Cola Company.
GM=General Manager.
Coca-Cola has a vertical hierarchy management which is also known as tall organizational structure. The
decisions are made by the line managers that is middle level on a daily basis. Blue collar employees are
supervised or controlled by the lower level managers. Coca-Cola Company has its many sub division in each
continents except Antarctica where all of the sub divisions are well organized by their respective marketing
managers, finance director, purchase director and others. All the plans and the information should be
communicated to the head office. Due to its tall management hierarchy all the communication system consumes
time. All the proposals made by the divisions are finalized by the executive committee of the Coca-Cola
Company. For example if bottlers Nepal wants to advertise in Nepal when they should communicate the brief
planning of how they are going to organize ,targeted customer, media plan ,budget, anticipated thresholds etc.
STAKEHOLDERS OF COCA-COLA COMPANY:
Stakeholders are the party, individual or group who have concerns in the organization and are impacted by
every decisions of the organization. All the stakeholders are affected by the day to day tasks of the organization.
Stakeholders in Coca-Cola company are customers who are concerned about the product quality and value,
employees who stake for their income and safety in employment, shareholders who are interested in financial
returns, suppliers and vendors who stake for revenue and safety, communities and environment who seek for
economic development and ultimately the governments who stake for taxes and GDP of the Bottlers Nepal.(
Corporate Finance Institute, 2020)
SOME OF THE FUNCTIONS PERFORMED AT COCACOLA COMPANY:
Planning:
The vision of Coca-Cola Company to be the best bottler and the mission to refresh the world is guided by the
management in the planning process. The long term planning of Coca-Cola Company is of 5 Years and short
term plan exist for year. The reason behind the strategic planning is to adapt with the external environment in a
long period of time. Along with, the Coca-Cola Company indulges the tactical planning and consults with its
middle level of management who makes a coordination and interacts with the sales person. The Coca-Cola
company also makes the meeting between the employees and the top level management in order to find out the
reasons of success and the failure and such reasons are further taken into consideration for the decision making.
Moreover, the operational goals are also set to the salesperson in order to actualize the coordination with the
bottlers, vendors, partners etc.
Organizing:
Coca-Cola Company has its global headquarters for its organisation and these global headquarters are further
classified into the regional and geographical headquarters .The regions are further divided into the functional
departments which handles the production, marketing, sales, industrial sector etc. The key function of
organizing in a Coca-Cola company is that all the employees with the similar skills and abilities are kept
together for work in order to reduce the problems and fasten the performance. Additionally, the administrators
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at all levels are managed a high level of self-rule which engages them to conclude as per the particular
neighborhood needs. At last, the authoritative structure is to such an extent that excess layers in the chain of
importance are dispensed with and the layers of immediate and specked line revealing guarantee that data
moves through the association without the stopping up of the hierarchical supply routes because of bureaucratic
outlooks just as blockages because of correspondence holes. The general duty regarding every nation or district
is with the nation or local head and the utilitarian heads under the person in question likewise report to the
worldwide practical heads. So also, the obligations are obviously characterized which implies that responsibility
is dealt with just like the part of straightforwardness.
Leading:
As the Coca-Cola Company is divided into the geographical regions and various departments of each regions, it
has the importance for the leadership in all local as well as global levels. Coca-Cola Company believes in
democratic and laissez faire approach to leading which is necessary for the Marco level vision and mission to
execute in the micro level. All the regional hierarchy have the high level manager who report to the country
head. All the managerial subordinates are below the top managers who describe how the organisation practices
the behavioral leadership at the micro level. Managers follow the incentive based system to the sales person in
order to boost the performance .Incentive system includes the monetary and non-monetary rewards which
motivates the sales person in order to peak the performance of sales person. Monetary incentives includes the
bonuses, commission, hikes as per the overall sales achieved whereas the nonmonetary incentives include
vacation, holidays, travel to the workers and their family.
Controlling:
The controlling function is operated with the reports of the sales persons and the managerial levels performance.
The main backbone function of the company for control is that whether all the appraisal system has really
appraised the employee and has a better performance though the appraisal or not. Though managerial
performance goes beyond the targets, goals, plans, because they are also enrolled in making the plans,
salespersons are appraised on the basis of their performance. The period of evaluation is generally a year for the
managers, quarterly for market development roles and monthly for the salesperson. Other than the performance
measures, employees are also measured as per their contribution in the organizational goal as well as on their
soft skills like communication, people management, cooperation and the service quality. Moreover controlling
function also ensures the plan development preparation where sales person meets the business targets of
marketing goals, growth in sales, coordination, attendance and punctuality of sales person. The main formula of
controlling function of Coca-Cola Company is that it controls through the performance based on the local areas
where it is operated.
INTERRELATIONSHIP BETWEEN DIFFERENT FUNCTIOIN:
Marketing, Production, sales, human resource management etc. are the activities performed at organizational
function. All the interactions between these departments and organizational function is an organizational
structure. In fact, organizational structure is all supervised with the power of accomplishment, roles and
responsibilities to run the different functions of the organisation. Hence organizational function and structure
are interrelated for the overall smooth performance of the organisation.

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Coca-Cola company has its various functions such as finance functions which helps in funding the
organizations and all other financial related matter, human resource function which organizes the employee
recruitment, selection, training, termination, promotion and many more, IT sector which makes the system
easier for billing transactions etc., operation department controlling all the day to day activities of the Coca-
Cola company, supply chain and logistics which provide the raw materials stores, delivery etc. and marketing
function advertising, promoting and delivering the goods of the company. All these departments are interrelated
to each other and are interdependent with the organizational structure. For example Coca-Cola Company’s
structure and the objective to be a world no1 beverage company and profitable organisation can be only
achieved through the successful performance of all the department. If anyone of the department fail in their
respective task, it results into the negative impact of the Coca-Cola Company. If marketing department does not
promote its brand effectively, operation department has a free or lose control in an organisation then it will lead
to the failure of the organisation. All the reasons for the success of the structure of the Coca-Cola Company are
directly in connection with the functions of the coca coal company.
The functions of the Coca-Cola Company are also interdependent and interrelated with each other. All the
effective measures of the HR department of the Coca-Cola Company brings smoothness in the performance and
hence enhance the productivity in the organisation. All these interrelation of the organisation have their pros
and cons. Similar like HR department, if the marketing department promotes the product into the market very
attractively then it hugely benefits the sales of the organisation which enhance to be the profitable organisation.
Likewise, if any one of the function fails in its performance then it impacts the overall performance of the
organisation.
CONCLUSION:
All the business function and the organizational structure are interrelated with each other. The better
performance of all the departments in an organisation results into the better organizational structure and benefits
the business as a whole. All business departments have their own equal importance and all have their own
contribution in an organisation. Furthermore Coca-Cola Company also has its different functions and all of
them are related with each other and enhance in the business objective or structure of the organisation.
VOLUNTARY ORGANIZATION:
The organisation which actively works for the service of the people is known as voluntary organisation.
Voluntary organisation are formed by the group of individuals with an agreement for a specific purpose. Their
motive is not to earn profit, in case they earn it’s for primary purpose and not shared among its shareholders.
Since the voluntary organizations do not have the direct income source so they depend upon the government
funding or the public donations.
Nonprofit organizations:
Nonprofit organizations also known as not for profit organizations is private company whose main motive is to
provide the service and not to earn profit. There is no any profit for its stakeholders. It is started for the specific
purposes like educational, health, religious etc. Government exempts the tax to the not for profit organizations
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and also deductible to the all the donations. Nonprofit organizations have the paid staffs as well as the
volunteers for the organizations. The main source of funding is the members themselves and the specific
donations by others.
Non-governmental organizations:
Non-governmental organisation are the private organizations which are not controlled by the government and
whose aim is not to earn profit. There are two types of NGOs, they are operational NGOs which emphasis on
the developmental works and advocacy NGOs which focus on the specific problems. The main source of
funding to the NGOs are membership fees, sales of products and services, donations from the third party etc.
MAITI NEPAL (NGO)
HISTORY:
In 1993 Maiti Nepal was established in order to save the Women’s and child’s from domestic violence,
trafficking, child labor and various forms of torture and exploitation. The founder of Maiti Nepal is Anuradha
koirala. Since 1993, the organization has been continuously working for the justice of the women and child
rights. It has three prevention homes, eight information desk and Teresa academy. There are two rehabilitation
centers in Kathmandu and ithari.
OBJECTVE:
The main objective of the Maiti Nepal is to prevent the activities such as girl trafficking, child labor and rescue
the child’s and women’s and ensuring them with the punishment for the traffickers. Some of the other
objectives are:
It provides the moral support, counselling to the children and woman who are victim of trafficking.
Maiti Nepal provides the legal services, health support and helps the survivors of the trafficking and
child labor.
Also maintains all the facilities such as education, safe home and rehabilitation to the victims.
VISION:
A community free from sexual and other forms of exploitation against woman and children’s.
MISSION:
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TO stop the human trafficking in the community through the different awareness program and campaigns so
that the children and the women do not become the victims. Guided by the goals of influenced individuals,
Maiti Nepal seeks after strategic discharging youngsters and ladies constrained into sexual misuse, stretch out
help to survivors; ensure defenseless young ladies by enabling them through close to home investment and
articulation and work with them to improve job aptitudes.
LEGAL STRUCTURE:
Maiti Nepal is a nongovernmental organisation having many transit homes. Maiti Nepal has 11 transit homes
located at various parts of the countries. All the transit homes provide shelter and education as well as health
cares, basic health knowledge and make the community aware about the human trafficking.
PART: 2
 LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the
macro environment has on business operations.
Both micro and macro environmental factors have the impact on the business operation having positive as well
as negative impact. Macro environmental factors can be analyzed through the PESTLE analysis whereas the
micro environmental factors can be analyzed with Swot analysis. PESTLE stands for the political, economical,
social, technological, legal and environmental factors.
COCACOLA Company also uses its PESTLE analysis in order to analyze the macro environmental factors.
Macro environmental factors can impact positively and negatively, not only to the Coca-Cola Company but also
may impact the other competitors of Coca-Cola Company. PESTLE analysis provides the brief knowledge to
the Coca-Cola Company which it may face in the future or present environmental factors. For example, if Coca-
Cola Company is earning a great profit then the political environment may ruin it where it is located. PESTLE
analysis are described below.
POLITICAL FACTORS:
Whenever there is change in laws, rules and regulations such as change in taxation i.e. if tax are exempted then
it benefits the Coca-Cola Company. Similarly there may be change in the accounting standards, changes in tax
rates, modified tax which may have positive impact as well as negative impact to the Coca-Cola Company.
Moreover civil conflicts, government changes and restrictions and the Coca-Cola ability to adapt such changes
are the political factors affecting the operations of Coca-Cola Company.
ECONOMICAL FACTORS:
In 2001 there was a high increase in the interest rates because of the economic recession. The US government
had to turn the economy in 2002 which had a negative impact to the many companies. But Coca-Cola company
took note of this and took low-cost loan in 2001 .They spent their money for the research and development for
the new product to survive in the recession of 2001.Eventually, they grew their business which helped them in
2002.So the stability of the economic system (inflation rate, interest rates, foreign exchange) in the country also

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makes change in the operation of the business. Also the labor cost, education level play important role in change
of business.
SOCIAL FACTORS:
Social factors also have the impact in the Coca-Cola Company. Many people wanted to live their healthy
lifestyle overall and switched their taste to the normal bottle water or Coca-Cola diet or zero which had a great
impact to the sales. The youths and the children’s are the ones who highly demand the soft drinks but as they
become mature of age over 38 then they slightly become health conscious which decreases the choice of the
Coca-Cola and other soft drinks affecting the profit ratio. Hence society’s culture, behavior and attitude are the
social factors for the impact of the macro environmental factors.
TECHNOLOGICAL FACTORS:
Technological factors means the ability of advertising, promoting, marketing of the products in the company.
The means of advertising may be the television, social Medias, newspaper etc. which really changes the overall
sales of the company. Likewise ,Coca-Cola company had a huge benefits in their sales as they introduced the
new packaging design of the cans and plastic bottles .Technological factors also includes the updated
machineries and equipment’s where Coca-Cola company bought the new machine which increased the volume
of sales in their business. The reason for the large sale is the new technology for the Coca-Cola Company.
Moreover more factories should also be developed in order to increase the level of products. For e.g., Coca-
Cola company established the factories in 1990 which was one of the largest factories in the Europe provided
the good level of productivity.
ENVIRONMENTAL FACTORS:
Different countries have the different values and economic standards which affects the profitability of the
business organisation. Each countries have the environmental clause and liability clause which may have
positive or negative impact for the business organisation. For example Texas and Florida’s have their different
laws for the environmental and liability clause. Similarly, European countries have the tax breaks to the
companies operating in the renewable sector which may have the positive impact to the business organizations.
So it is the major responsibility of the business organisation to observe the environmental standards of the
different market in different countries. Some of the environmental factors needed to take into consideration are:
weather, climate change, rules regarding the air pollution, recycling, endangered species etc.
LEGAL FACTORS:
All the legal matters are different in different countries. Every business organisation should thoroughly observe
the legal factors in order to run the business in different markets. Some of the legal factors that Coca-Cola
Company should consider before starting the new business are: discrimination law, copyrights, patents,
employment law, health and safety law etc.
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SWOT ANALYSIS OF COCA-COLA COMPANY:
SWOT analysis is very necessary for the organisation to evaluate their performance where SWOT stands for the
strength, weakness, opportunity and threats. All the decision making process are made after the assessment of
the SWOT analysis which leads the organisation to a path of success. SWOT analysis has both internal and
external matters where strength and weakness are related to internal matters where as opportunities and threats
are regarded as the external matters of the organisation.
Strengths of Coca-Cola company :( Internal factor)
The main strength of the Coca-Cola Company is its brand identity. It is widely known and recognized by the
various countries. It is widely popular among the local people at various markets. It has the highest selling
record in the history. Coca-Cola has earned its highest brand equity and also has been awarded in
2011.Cocacola has 500 various products all over the world and is very well known to every people. It is sold out
in 200 countries which has extended global reach and has billions of servings per day. Coca-Cola has the good
brand association and customer loyalty because its consumers find difficult to substitute its taste. All the
consumers consume it in the term of happiness, festival etc. Consumers can easily find the taste of Coca-Cola. It
has been the daily product for some range of consumers too. There is a huge consumers and fans of Coca-Cola
and Fanta from the beverage industry. Coca-Cola has been the top brand value for many years which is its
biggest strength. There is great rivalry between the Coca-Cola and Pepsi but the Coca-Cola owns the large
market share producing the large number of products. The highest selling product of Coca-Cola company are
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mazza, coke, Fanta, lima, sprite etc. Unparalleled distribution system is also one of the great strength of the
Coca-Cola company as its has very strong channel of distribution, It has 250 partners of bottlers all over the
world.
WEAKNESS OF COCACOLA COMPANY :( Internal factors)
The biggest weakness of Cocacola Company is competition with a Pepsi company. If there was not a Pepsi
company the there would be a clear market for the Coca-Cola company. Coca-Cola company does not have the
product diversification. Its biggest opponent Pepsi has the snack items like lays and kurkure where Coca-Cola
Company does not have such kinds of snack items. In today’s world every people have focus on their health
concerns and everyone wants to stay healthy. Beverage industry have the carbonated drinks which have the
source of the sugar intake. Coca-Cola Company has the large production of such carbonate drinks. Carbonated
drinks results into the diseases like obesity and diabetes. Many health professional have prohibited to use such
kind of carbonated drinks which has been the weakness for the Coca-Cola Company. Still up to the date, Coca-
Cola Company has not searched for the alternative of the carbonated drinks.
OPPURTUNITIES OF COCACOLA COMPANY :( External factors)
Coca-Cola Company has the precious opportunity to introduce the new product into the market. Coca-Cola
has the opportunity to bring new product and product snacks as that of the Pepsi. Also Coca-Cola Company has
most of carbonated drinks, so it must allocate its income in the research of alternative of carbonated drinks.
Coca-Cola can be very suitable in the hot regions because people consume more of such soft drinks in such
region. So focus should be given to the countries having the hot weather such as Africa. Coca-Cola Company
has the opportunity to develop more advanced supply chain system. There is high cost in transportation for
the Coca-Cola Company so it’s the great opportunity to maintain its supply management system. Coca-Cola has
the good sales of water bottle Kinley and has a good image. So Coca-Cola Company should also bring the new
products in such sector and expand its business.
THREATS OF COCACOLA COMPANY :( External factors)
There is a huge controversy of water usage for the Coca-Cola Company. Many professionals and social as well
as environmental groups have claimed that the Coca-Cola Company has the haphazard consumption of the
water even in the water scarce region. Also Coca-Cola Company has been polluting the water resource and
mixing the pesticides in the water as per the saying of people. Coca-Cola has been criticized for its packaging
system and recycling as well as renewable source. Direct and indirect competition is the major threat for the
Coca-Cola Company because we all know there is a direct competition by Pepsi but there is also an indirect
competition by the Starbucks, Nescafe, costa coffee etc.

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INTER-RELATIOSHIP BETWEEN SWOT AND EXTERNAL MACRO FACTORS:
External factors generally refer to the PESTLE analysis which means political, economical, social,
technological and environmental factors whereas SWOT analysis means assessment of both internal and
external factors which means strength, weakness, opportunities and threats of the business environment.
External macro factors are the tools that the organisation can track the environment where they are running and
can acknowledge the new products, project, service etc. All the subjects of external macro factors aids the
organisation not only what to do but also accounts for an organizational goals and the strategies. Similarly swot
analysis assists the organisation to find out their performance level.
SWOT analysis and external macro factors are closely related with each other because SWOT analysis is
always done after the PESTLE analysis. Both the SWOT and external macro factors spotlight the environment
where the business operates but have their own way. For every company to grow in a rapid way, it is considered
that both the SWOT and External macro factors should be equally focused and should be utilized as they both
have their own framework. All the strength and weakness are internal factors os SWOT which can be known
after the audit of the external factors such as political, economical, social and technological factors.
Opportunities and threats are the external factors of SWOT analysis.
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