Business Environment Analysis of Coca-Cola: Types, Scope, Functions

This report provides a comprehensive analysis of Coca-Cola's business environment. It begins by defining different organizational types (NGOs, NPOs, and for-profit organizations) and their purposes, as well as the scope and legal structures of private and public sector organizations. The report then explores the size and scope of various company types (micro, small, medium, and large), differentiating them based on objectives and operational scales. The analysis extends to the relationships between different organizational functions, particularly marketing, human resource management, and operations/production, emphasizing their interdependencies and impact on achieving business goals. The report also examines the positive and negative impacts of the macro environment on business organizations, including the use of SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Finally, the report concludes by analyzing the internal and external factors affecting Coca-Cola's business and how strengths and weaknesses relate to macro environmental elements, offering a detailed overview of the company's operational environment and strategic considerations.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisation.....................................................................1
P2 Size and scope of various kind or organisation.................................................................3
TASK 2............................................................................................................................................5
P3 Relationship between different organisational functions..................................................5
TASK 3............................................................................................................................................7
P4 Positive and negative impact of macro environment upon business organisation............7
TASK 4............................................................................................................................................9
P5 Studying on Internal and External analysis.......................................................................9
P6 Ways in which Strengths and weaknesses interrelate with macro factors........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment consider both sort of components, i.e. internal and external. It is
required for company to know about needs and wants of clients; thus, they will accomplish it
timely and take benefits from competitors at competitive world (Botha, Kourie and Snyman,
2014). This enables firm into their success and advancement which will easily increase their
market share and profits. Present assignment is based on Coca Cola which is doing their business
at global level. This project is going to discuss about distinctive types, size, scope, legal structure
and purpose of organisation. Moreover, there are many functions of enterprise which are entirely
connected with each other. Rather than this, macro environment will provide influence to
enterprise either positively or negatively. Manager will conduct SWOT investigation to know
about strengths and weaknesses of company; therefore, they will develop strategies for business
in an adequate manner.
TASK 1
P1 Different types and purpose of organisation
Distinctive sort of companies doing their work in many segments; therefore, they will
gain maximum revenues. For instance, NGO's do work for welfare of society instead of earn
profits. Their main concentration is to raise living standard of persons. Furthermore, there are
many firms who accomplishing their task; thus, they will maximise profits. These type of
enterprises will classifies into two parts, one is private and another known as public (Hamilton
and Webster, 2015).
Basis NGO NPO For profit
Meaning It can be established
by an individual and
their main focus is to
provide welfare to
social group.
They sale services and
goods to persons; thus,
they will maintain
their living standard.
But, they never share
revenues with
members.
Their fundamental
purpose is to earn
maximum profits and
for this, they sell items
to people.
Operational area Large Limited Limited or large
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Objectives By providing welfare
to individuals, they
will provide
development to
society.
It encourages
commerce, art etc.
To improve client
base, they sell goods
and services to people.
Public Sector: Basically, it is established by regulatory bodies and entire revenues will
shared between members. They are fundamentally associated with finance unit and their main
task is to gather tax from people. Along with, it is must for this type of firm to apply each laws or
rules into business which is formulated by government. Like: M & S is an association who is
running their company in public segment and main motto is to render items to people at
reasonable prices.
Purpose: They want to provide welfare to persons of United Kingdom; therefore, their
living standard get improved. Along with, they cater job opportunities to people; thus, they will
fulfil their needs and requirements (Cai and Yang, 2014).
Legal Structure: This will be portrays as beneath: State government: This kind of government share their power with domestic regulatory
body. Their fundamental work is to provide education to children and in addition make
some strategies; therefore, they will make effective control over colleges or universities. Central government: They regulate or run country by developing some acts or laws.
Their work is to print money for nation and in addition gather taxes.
 Local government: It can be set for small parts, such as city, town and many more. They
have to make an adequate control on a specific religion. It is necessary for them to
prepare some policies for their areas and which need to be follow by each individual who
are residing over there (Prajogo, 2016).
Private Sector: This sort of association is not run by any regulatory body; but, they will
prepare some strategies for private companies. Still, they are having freedom in relation to
expansion of business without facing any obstructions. Their main purpose is to improve profits
by providing qualitative goods and services at reasonable prices. For instance, Sainsbury is a
multinational firm which is providing items to people at worldwide. Therefore, they will
maximize revenues and improve their reputation at international market.
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Purpose: They want to accomplish needs and wants of individuals through providing
goods to them as per their requirement. This enables them to enhance their client base and in
addition market share. Along with this, it is required for organisation to manufacture high quality
products as this assist them to take advantages from their competitors at marketplace (Menychtas
and et. al., 2014).
Legal Structure: This can be stated as below: Sole proprietorship: This sort of firm is fundamentally run and possessed by an
individual. Additionally, all profits or loss is having by that person only who is regulating
this association.
 Partnership: When two or more people come together and begin an enterprise then, this
is considered as a partnership firm. They all share revenues or loss equally or in pre
decided share (Niemann-Struweg, 2014).
P2 Size and scope of various kind or organisation
Each and every type of company has their own size and they have to accomplish their
work according to this. It consists small, micro, large as well as medium. Following is the
description regarding it: Micro Scale: As indicated by this, nature of enterprise is much tiny and in addition only
some individuals are employed over there. There are some businesses which will include
into this, for example garage, grocery or departmental store and so on. Their main aim is
not only gain profits but also they begin firm for financial security and in addition to
maintain living standard. Apart from this, some other examples in relation to this, such as
fast food centre, fancy store etc. Small Scale: In this type of association, profits which is earned by them is not more than
$5 million and they have less than forty nine individuals who are employed over there. In
nation, there are numerous enterprises who are working in this segment as it is not
difficult for them to enhance market share. Almost 84% persons are involved into small
scale businesses. Small retail shops are the best example of it because in this approx 15
persons are employed. Rather than this, if any firm is producing goods for customers will
consider into this. Fundamental aim of association is to enlarge their firm at marketplace
to improve market share (Sodeyfi, 2016).
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 Medium scale: Nearly, fifty one to two hundred fifty individuals are doing their job in
this kind of organisation. Profits which is earned by affiliation is not more than $24
million and not less than $5 million. Exponential-E is the best example in this segment as
there is almost 155 persons who are employed in this firm to achieve common target or
objective. Large Scale: This kind of firm is consisting more than 251 staff members and earning
almost $255 million. There are many examples of it who are operating their business at
big scale, Tesco is one of them. They are having more than 1100 workers who are
working with them and enterprise is providing their items across the world (Lu, Xu and
Xu, 2014).
Differentiation on the basis of objectives:
Micro Small Medium Large
There main aim is to
provide financial
protection to family
members; thus, living
standard will get
enhanced.
By acquiring
opportunities in
market, they want to
expand their business.
For this, they will
utilize some adequate
methods or tools.
In country, there are
many companies who
are doing their
business at medium
scale. They want to
increase their market
share by giving
products and services
to people at
international level. For
this, they will choose
many option, like
merger, acquisition
etc.
They want to provide
improvement to the
economy of country
and in addition
maintain sustainability
at marketplace.
Scope of various sort of enterprises: Micro Scale: Their fundamental aim to survive at marketplace for longer period of time.
As nature of this kind of affiliation is limited; therefore, it is not easy for them to expand
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their business. But, if they want to do this, then some other stores will be open by them in
the similar city (Khan and Quaddus, 2015). Small Scale: Their scope is much wide as comparison to micro scale organisation. They
can easily increase their business by implementing some unique methods or tools. For
expansion, they will use some techniques like, merger, acquisition and many others. As a
result, they will improve their reputation effectually. Medium Scale: Scope of this kind of association is very broad and they will operate firm
at international market. For above stated purpose, it is must for them to acquire license
from respective authority or government of nation.
 Large Scale: Company who are doing their business at large scale must have to follow all
rules and regulations. They are providing development to economy of nation (Wild, Wild
and Han, 2014).
Transnational company:
This type of organisations are basically doing their operational activities into another
countries at a large scale. Their profits are much high and sometime it is higher than nation's
economy. Thus, they will provide direct influence to economical circumstances of state. For
instance, company which is selected for this assignment is Coca Cola which is considered as a
transnational enterprise. They are providing soft drink to people at worldwide and in addition
their profits in 2016 was nearly $40 billion (Konstantin, 2014).
TASK 2
P3 Relationship between different organisational functions
There are many kinds of departments which are present in each and every type of
companies. All these are interconnected with each other either in a direct or indirect manner.
These are mentioned as beneath:
Marketing: This is foremost unit of organisation as this aid them to attain coveted targets
within certain period of time. In relation to Coca Cola, they are utilizing effective and adequate
strategies which are associated with marketing; therefore, they will capture attention of
numerous people and provide them goods and services in an effective way. This enables them to
know about the needs and wants of individuals; as a result, they will alter their items according
to them, which help firm to accomplish demands of clients adequately. This will help association
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to increase their profits and market share (Ratten, 2014). This division is much connected with
finance department. If company is providing proper fund to them then, they can do marketing
activities in an appropriate manner which help them to increase their reputation at marketplace.
Human Resource Management: It is must for manager to find out vacant position in
firm; thus, they can fill it by appointing suitable candidate. It is necessary for employer to
conduct business in a ethical way. Along with this, they need to maintain an adequate
relationship amongst all staff members. This works as a motivation for them and in addition they
will do their work with maximum effectiveness. Human resource professional needs to
determine requirements of employees and fulfil it timely, this aids them in their long term
retention at workplace. This division is interconnected with operational unit as they have to
attain coveted targets within limited period of time (Botha, Kourie and Snyman, 2014).
Operations and Production: Fundamental purpose of each company is to earn maximum
profits and for this, they need to provide goods and services to people at a reasonable prices.
Crude material need to be qualitative; thus, final item will more adequate. This unit is basically
concentrate on prerequisites of clients; so that, firm will satisfy it within time and compete
competitors at marketplace. Henceforth, this unit is related with two departments, such as finance
and in addition human resource. With assistance of finance unit, they will get fund for
operational activities and in addition HR manager has to recruit skilled and talented people for
association.
Accounting and Finance: It is considered as a foremost part of enterprise as without this
kind of department it is not easy for company to survive at market for maximum period of time.
In each and every kind of activity, there is need of money. If company is having adequate fund
then, this will restrain their success and advancement. Hence, all departments of affiliation is
connected with this unit either directly or indirectly (Hamilton and Webster, 2015).
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TASK 3
P4 Positive and negative impact of macro environment upon business organisation
Operational activities of an enterprise will get affected by external elements either
directly or indirectly. Therefore, at the time of decision making association needs to consider
environment because this will provide impact in a positive or negative manner.
To know about extrinsic surroundings, company will conduct PESTLE analysis, this can
be mentioned as below: Political factors: There are many acts or laws need to implement into enterprise as it aids
into their success and advancement. Coca Cola is a MNC which is operating their
business into various countries; therefore, they need to follow all rules and regulations in
which they are running their firm. This will help them to decrease circumstances of
mistakes. Along with this, by eliminating illegal practices into firm, they will be able to
cater positive affect on people (Cai and Yang, 2014). Economic factors: It is necessary for an enterprise to keep up these sort of components;
thus, they will improve their profits and production effectually. This assists them to
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Illustration 1: Organisational Structure
(Source: Organisational structure, 2018)

provide maximum satisfaction to persons. Association wants to acquire sustainability at
marketplace as this will help them to increase their reputation at competitive world. If
there is increase in tax then, this will affect business in an adverse way. Social factors: Preferences as well as taste of an individual will change as per time; thus,
their choice in food, cloths etc. will alter according to fashion. There are many
components which will comprise into this, such as income, gender, age, attitude, job and
many more. There is positive influence of this element is that it assists firm to know
about requirements and demands of clients and in addition future wants of individuals.
Rather than this, its negative affect is, continuous modifications in needs of individuals
will hamper manufacture of enterprise (Prajogo, 2016). Legal factors: Many kinds of acts and laws are formulated by government of United
Kingdom. This needs to be apply on each association as per their business because it
assists them to protect from any type of misconduct as well as illegal practices. In relation
to Coca Cola, they need to implement Food Safety act into their firm. They deal in cold
drinks; thus, it is must for them to maintain standard of their items in an effective way;
therefore, persons will consume products appropriately. Henceforth, if association is
following policies and regulations adequately which is developed by regulatory bodies
then, they can secure business from any type of illegal exercise. This will cater positive
affect on minds of persons. But if they are mixing any kind of drug into their drinks then
this will considered as a illegal activity and it is adverse in nature (Macro environmental
forces, 2018).
 Environmental factors: It is required for company to use available resources in an
appropriate manner as this enable them to reduce unwanted wastage. As a result, firm
will secure environment from any harmful activities. This will help in success and
development of business (Menychtas and et. al., 2014).
TASK 4
P5 Studying on Internal and External analysis
It is necessary for an association to know about strengths and weaknesses of their
business. For above stated aim, they will conduct SWOT analysis. It also aid to know about
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opportunities which are available for them at marketplace and by acquiring them, it is easy for
them to improve market share and goodwill (Niemann-Struweg, 2014).
Strengths  They are providing effervescent drinks to people.
 Organisation is using best and adequate marketing strategies for their
business which assist them in improvisation of brand image.
 Distribution system of firm is much efficient which help them to
provide products to individuals on time.
 They call celebrities for their events and ad shoots.
 Customers are much loyal and trustworthy for them.
Weaknesses  Some items of enterprise is less famous.
 Because of acquisition, there debts are going high.
 No diversification into their portfolio.
 Lack in diversification of goods.
Opportunities  They will use best tools for promotion, such as internet,
advertisement, social sites and so on.
 Improve in packing.
 They are having sufficient fund for expansion of business.
Threats  Higher competition.
 Many substitute products are available at marketplace.
 Slow success rate.
 Cut down of those items which are less hygienic.
P6 Ways in which Strengths and weaknesses interrelate with macro factors
Macro elements will directly influence strengths as well as weakness of organisation.
Thus, there interrelation will understand with assistance of below mentioned description: Political factors: It is must for each and every kind of association to follow all acts or
laws into business as this enables them to take benefits from their competitors at
competitive world (Sodeyfi, 2016). For instance, if regulatory body reduce tax of country
then, this will help people to improve their buying power. As a result, they will raise their
living standard.
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 Economical factors: Market circumstances will provide impact to association either in a
direct or indirect manner. If there is any change in economic situation then, this will
provide impact to organisation's profits or sales. Social factors: Change in preferences and taste of people will influence production of
firm directly or indirectly. It is must for an enterprise to give items to them according to
their needs. As a result, affiliation will increase their customer base.
 Technological factors: It is required for association to utilize new and unique methods in
working process. This will improve quality of products and services and in addition
coveted targets will be attained within limited period of time (Lu, Xu and Xu, 2014).
CONCLUSION
From above assignment it has been comprehended that company needs to examine their
internal and external factors which will affect them directly or indirectly. By doing this, they can
easily attain coveted targets as well as objectives. In this assignment, there is a brief discussion
about many departments which present into enterprise and they all are interconnected with each
other. SWOT and PESTLE investigation is done to examine strengths and weaknesses of
business. Operational activities of firm is totally depend on their size. Along with this, market
evaluation is also done if affiliation want to expand their business in any new area.
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