Business Environment Analysis and Strategy

This assignment requires you to analyze the influence of the dynamic business environment on Coca-Cola's strategic decisions. You will delve into a SWOT analysis of the company, examine how its competitive priorities are shaped by external factors, and explore the role of technological innovation in fostering its success within the ever-evolving marketplace.

BUSINESS AND THE
BUSINESS
ENVIORNMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations......................................................................1
P2. Size and Scope of various types of organisations.................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions.......................................................1
TASK 3............................................................................................................................................3
P4. Positive and negative impact of macro environment upon business organisation................3
TASK 4............................................................................................................................................5
P5 Studying on Internal and External Analysis..........................................................................5
P6 Ways in which Strengths and Weaknesses interrelate with macro factors............................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In modern era, business environment can be stated as ample number of both internal and
external factors. These components directly put impact on business activities in a positive or
negative way. It is mandatory for executives of organisation to find out needs and wants of
customers and modify or make products as per their requirements to sustain in marketplace for a
long period of time. Apart from this, delivering goods and services to consumers as per their
needs is a basic activity. This helps company to make long term relationship with users and with
this, satisfaction level also gets increases of them. In this report, Coca Cola, the multinational
organisation has been chosen. This company manufactures soft drinks from 1886 and selling
them in all over the world. Assignment includes various enterprises with their sizes, structures,
etc. Apart from this, functions of organisation are getting linked with goals of business has also
been considered. Lastly, assessment is putting light on both positive and negative impinging of
macro environment on business.
TASK 1
P1. Different types and purposes of organisations
Covered in PPT
P2. Size and Scope of various types of organisations
Covered in PPT
TASK 2
P3 Relationship between different organisational functions
Organisations main objective is to make profit. These companies have many departments
which performs different activities. These divisions have set objectives and staff members under
this sector works to hit targets that has been set by them. These subsections directly and
indirectly helps in enhancing or running business in a successful manner. Coca Cola have
maintained sustainability in marketplace by these sections only. Various number of department
are as follows:
Marketing department: This department can be stated as one of the main section of Coca
Cola. Analysts of this company research marketplace so that better decisions can be made. By
this, Coca Cola improves both productivity and profitability. In today's world, it is essential to
look what consumers are asking. With the help of this employer can modify their products and
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services according to requirements of customers. This section, mainly focuses on improvising
goodwill and brand image of organisation. Apart from this, actions that has been taken after
analysing market may aid in giving rivalry to competitors. Many strategies in this context can
help Coca Cola in enhancing revenue of business. This subsection is connected with other
departments like finance, human resource and etc. Majorly, it stays affiliated with financial
department as for implementing plans and strategies it is mandatory to have proper sort of funds.
By this only a plan can be successful in an effective manner.
Human Resource Management: Managers under this sector majorly looks forward in
recruiting talented candidates so that vacant seats gets filled. It is mandatory to select the correct
applicant at right time. Supervisor of this department has a huge responsibility as in modern era
it is important for management to enlist people who are talented. With the help of this Coca Cola
can easily improve quality of products, enhance profitability and etc. Innovative ideas of new
candidates can easily aid in attaining objectives in a short period of time. Apart from this, it is
duty of HR manager to resolve all the issues and conflicts so that they do not hamper their work.
Because of this, productivity of company may get decreases.
Operations and production department: Main objective of Coca Cola is to earn profit.
This can be done by providing services and goods to customers as per their needs and wants.
This department usually changes raw materials, resources, capital and etc., into final goods and
services. It is important for Coca Cola to make quality soft drinks to sustain in market. This
department stays connected with other subsections like finance department provide funds so that
raw material can be purchased and HR department may aid in giving workforce.
Financial department: One of the important department for every single organisation. A
company that do not have this subsection may not survive long at marketplace. As it is necessary
to set budget from time to time so that profitability of company do not gets affected. Capital is
mandatory to run all activities in timely manner. Apart from this, management of this department
influence investors to invest on their plans in small business enterprises. Companies like Coca
Cola easily gets these investors as they already have a huge name in the market. Apart from this,
management of financial department gives salary to staff members and other finance related
decisions can be made under this section only.
Therefore, it has been analysed that interrelation in between these departments plays a
crucial role when it comes to hit targets of the company. On the other hand, if all these functions
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of organisation will not share a strong bond, then it may be possible that Coca Cola may loose its
reputation and stop attaining goals and objectives of company in Specific period of time. This
scenario if Coca Cola faces then brand image at marketplace will get reduced right on time.
Four main organisational structure are described below:
Organisational structure consists of how various activities like task allocation,
coordination and supervisions which aid in attaining all goals and objectives of a business firm.
Functional structure: Structure in which individuals that are having same skills and
capabilities are being group together can be stated as functional structure. This type of structure
is being stated as one of common and is being followed by mostly all the organisations. Groups
of employees is being made as per their same sort of capabilities and roles as well. For an
example: Employees with same skills at Coca Cola can develop a squad in order to attain a
common goal.
Divisional structure: The divisional structure is one sort of organizational structure in
which groups gets divided as per the specialities. Mostly, those organisations adopts this type of
structure that are doing business at international level. For an example: Coca Cola is having its
plants in different countries. Therefore, this type of structure can be followed by company in
order to enhance sales of two different areas.
Strategic Business Units: As per given under this type of structure, relatively
autonomous division of a large company that operates as an independent enterprise with
responsibility for a particular range of products or activities.
Matrix: This type of organizational structure is being considered as a complex but
effective structure in which information is being forward from one to another in a grid or matrix
manner. On the other hand, traditional hierarchy is not at all being followed under this structure.
Interrelationship among organisational structure, objectives and strategy plays in essential
role when it comes to attain specific goals and objectives. If firm is looking forward to expand its
business then it is required for them to set their targets, develop a strategy an then put a structure
so that expansion can be done in a successful manner.
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TASK 3
P4. Positive and negative impact of macro environment upon business organisation
In modern era, environment of business organisation gets affected in many ways because
of different factors. Operational activities, strategies and objectives are the main part which
directly and indirectly gets affected of Coca Cola. Apart from this, there are two major elements
that gets pretentious and these are micro and macro. These elements in simple language can be
understood as: micro is internal factor and macro is external factor. Macro environment to put
impact on organisation can be understand with PESTLE Analysis which has been described
beneath: Political Factors: This factor directly affect employees behaviour. As rules and
regulations that has been set by government it is essential for management to keep on
adapting them at correct time. In this context, Coca Cola has already adapted laws which
is helping them in making high quality carbonated drinks. These policies that has been
made by government will directly aid in improving employee relations within an
organisation. Economic Factors: This factor considerably put direct impact on economical condition
of an organisation. If an organisation requires to have high percentage of profitability and
it is mandatory for them to fulfilling all requirement of consumers. This helps them in
maintaining long term relationships with users. Away from this, it also aid in giving hard
competition to rivals at competitive world. Also, this factor can be negative for Coca
Cola at the time of increase in rate of taxes. Social Factors: A consumer is part of society and there taste gets changes from time to
time. Hence, it is mandatory for Coca Cola to keep on analysing marketplace and find
what exactly customers are looking for. There are various elements under this factor are
age, salary of an individual, taste and etc. Continuous analysation of what exactly end
users are looking for may put positive impact in decision making. Away from this, Rapid
changes that are coming may cost much to Coca Cola may become a negative impact as it
will put reduce profitable percentage of company. Technology Factors: In modern era, technology plays an important role in all activities
of an organisation. It has been found that new technologies takes place of old ones from
time to time. Hence, it is mandatory for Coca Cola to keep on adapting those changes that
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are coming. This may put impact in ways like in giving hard competition to rivals and
apart from this, negative impact can be high expenditure which directly put impact on
profit of firm. Legal Factors: It is mandatory for management of every organisation to keep on
involving all the rules and regulations that has been set by them from time to time. This
may lead them in making better conditions for employees who are working in the
company. Health and safety act, is the one in which management is continuously
improvising workplace for staff members. Coca Cola rapidly try to find the issues that
may put negative impact on behaviour of staff members in context of company.
 Environmental Factors: In this type of factor, management keep on reducing usage of
limited resources without putting any impact on quality and quantity of production unit.
Management can keep on improvising quality by adapting new and innovative ideas by
which wastage can be reduced and apart from this, factor which is related to environment
is directly putting positive impact on operations of Coca Cola.
TASK 4
P5 Studying on Internal and External Analysis
Executive require to have complete information of organisation and its system abilities,
so that they offer products and services according to customers need and wants. By conducting
market survey, to enquire about rival firms items and market share. Hence, superior conduct
SWOT analysis to examine internal and external force which influence business activities.
SWOT analysis of Coca Cola: This tactic is used by firm to anticipate market
opportunities and threat, thereby offering products which are in demand of customers. Superior
require to overview potentialities of their system to know whether they will be able to provide
offerings through which Coca Cola market position enhanced. These are internal and external
forces are as stated beneath:
Strengths:
 This brand is popular in all over world for its carbonated soft drinks.
 Company is using various effective marketing tools to promote their items and informing
customers about its existence in market.
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 Coca Cola is in advantage as they are having customers which are loyal towards their
offerings. Superior is having appropriate channel through which they distribute products all over
world.
Weakness:
 Coca Cola have some items which are not famous in marketplace. So they require to
remove such products which are not purchased by people.
 Firm debt are increasing, since they have acquire new business.
 As this brand doesn't have much diversification so this impact their sales.
 They are not having healthy food items, which influence its image in market.
Opportunities:
 Health drinks and Fruit juices are various segment in which Coca Cola can expand their
business.
 Firm require to take care that they are packaging drinks, beverages properly.
 Promotion of items in different countries efficiently. Organisation is having adequate funds through which they are able to enhance their
business operations.
Threats:
 Firm is having strong competition with Pepsi, which is also providing carbonated soft
drinks.
 Coca Cola operations is affected by raw material which they outsource. This impact their
profitability.
 People who are health conscious don't purchase their products.
Starbucks, Costa Coffee and Cafe Coffee day are various rival enterprise which are
affecting business functionality indirectly.
P6 Ways in which Strengths and Weaknesses interrelate with macro factors
Executive require to examine macro environment factors, and their impact on business
activities. By determining forces which are beneficial for organisation, hence strengthen system
through which superior are able to offer items according to customers requirement. Therefore
PEST analysis is conducted by management; through which they are able to overcome
weaknesses and utilise strengths to enhance their market position are stated below:
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Political Factors: Superior require to make alterations in policies and strategies in
according to government laws and regulations. This will benefit company through which they
offer products which are demanded by customers. As if taxation rate in lower down, then people
will have adequate funds through which they are able to purchase items which they needed.
Strength: Due to government support training preprogramme is organised by government,
which helps in improving quality of product and service.
Weakness: As change in political operations of company also affected. There are
possibilities of negative impact on employee's performance.
Economical Factors: Firm profitability is affected by market conditions such as
exchange rate, inflation, GDP, tax and credit availability. These elements determine strengths
and weakness which system is going to face. Coca Cola sales is impacted by income of people
and their demands. They require to carry out operations through which they are able to enhance
their market share.
Strength: There is requirement of finance for business operations, if they are available on
cheap rate then this is helpful for running business.
Weakness: If rate of interest increase of loans, then this is tough task for management of
company.
Social Factors: Companies offer good and services through which people need and
wants are completed. Manager require to take care that they utilise resources efficiently. Coca
Cola conduct market survey, to enquire about taste and preference of customers; so that they
offer items accordingly. This benefit company is earning adequate revenue by promoting and
attracting customers towards their brand.
Strength: This is important factor of business which helps company to run operations of
company. There are different society, so it is essential to form business policies in better way.
Weakness: due to cultural, environmental change of consumer,company to change their
product accordingly.
Technological Factors: Superior require to make improvement in tools and techniques,
so that they manufacture good in better manner. By using modern tactics through which they are
able to provide quality offerings to customers. Coca Cola is able to establish competitive
advantage; thereby position themselves superior than rival firms.
Strength: Techniques helps company to preform task in better way.
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Weakness: There is need of training to workers otherwise there are possibilities of
negative results due to change ion business technology.
Coca Cola's strength can be taken as one factor i.e. technology as they adopts new
technology whenever they see any updates and then train their employees so that they can work
with skills and knowledge. On the other hand, social factor of macro environment can be
considered as weaknesses for this Coca Cola. Because there are some instances took place where
public found dead insects in packed diet coke. It has also been known that Coca Cola is
supplying their carbonated drinks all over the world and they are able to do this because they are
following all the laws and regulations which are being created by the government of those
countries. Also, Coca Cola is having advantage that they are having loyal and honest customers
and it can be considered as one of their strength as well and this has been made possible because
they are taking care of needs and wants of the customers in a proper manner. It is being made
possible through the social factors that is being followed by them in a proper manner.
Economical conditions of a nation can be considered as an opportunity. If targeted
country where company is looking forward to expand its business stays strong. Then it will
support in enhancing sales of products and services which company is offering to targeted
customers. On the other hand, threat can be legal factor of macro environment. It has been found
that if Coca Cola will not follow rules and regulation and do not follow all the legislations then it
is may be possible that government will charge on them.
CONCLUSION
As per above report, it can be comprehended that company is able to accomplish goals
and objectives if system is function properly. It is superior duty that they have complete
information about organisation potentialities. By conducting market survey to enquire about
customers demand and competitors offering. So, administration require to control and maintain
their market position by utilising opportunities. They also need to overcome weaknesses which
are influencing working of firm. They require to provide quality offerings so that they are able to
compete with rival firms. This help management to manufacture products accordingly through
which they will be able to generate adequate revenue for their business. Enterprise functionality
is also impacted by various macro and micro factors which exist inside and outside environment.
As a result, superior require to utilise resources efficiently, so that company is able to enhance
their productivity and profitability.
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Online
SWOT of Coca Cola. 2018. [Online]. Available through: <https://www.marketing91.com/swot-
coca-cola/>.
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