Regent College HND Business Environment Report: Coca-Cola Analysis

This report provides a comprehensive analysis of Coca-Cola's business environment, examining various aspects crucial to its operations. It begins by defining different types of organizations, including public, private, and voluntary sectors, and explores their purposes and legal structures. The report then delves into the size and scope of these organizations, particularly focusing on the private sector and Coca-Cola's position within it. It further investigates the relationship between different organizational functions and how they align with the company's objectives, specifically highlighting the marketing department's role. A significant portion of the report is dedicated to analyzing the positive and negative impacts of the macro-environment on Coca-Cola's business operations. The report also includes an internal and external analysis to identify the company's strengths and weaknesses, and how these relate to external macro factors. The report concludes with a summary of the key findings and recommendations for Coca-Cola, offering valuable insights into navigating the complexities of the business environment. The report is structured based on the assignment brief provided, which specifies the learning outcomes and assessment criteria that are to be addressed.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations .....................................................................1
P2. Size and Scope of different types of organisations..............................................................3
TASK 2............................................................................................................................................5
P3. Relationship between different organisational functions and their link to objectives..........5
TASK 3............................................................................................................................................6
P4. Positive and negative impacts that macro environment has upon business operations........6
TASK 4............................................................................................................................................8
P5. Conduct internal and external analysis to identify strengths and weaknesses of
organisation.................................................................................................................................8
P6. Strengths and Weaknesses interrelate with external macro factors......................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Every business organisation have to operate in environment which is dynamic in nature
and keeps on changing with time. Hence, it become necessary to examine various factors that
affect the functioning of company in various ways. These elements can be present inside and
outside the firm. It become very important to study the business environment properly and
correctly so that work process can be conducted effectively and efficiently. Internal factors refers
to all those aspects which are present inside the firm and impact the functioning in various ways
whereas external factors are beyond the control of management. This report highlights the case
of Coca Cola. This is among the top most company in beverage sector. Assignment throws light
on relationship among number of functions and objectives of organisational structure. There are
different strengths and weaknesses that is attached to external component,all these have to be
scrutinize by management to execute their functioning.
TASK 1
P1. Different types and purposes of organisations
Business environment is all about studying of external and internal surrounding in order
to analyse the changes which may occurred in several factors that have a major impact on a
company success. In fact, fluctuation in macro components are not controlled or managed by
organization because advisory bodies are responsible for handling it. Elements that are beyond
control have to be scrutinized in order to consider their strong and weak impacts on the whole
system. Basically, corporate world is classified into various sectors for acquiring maximum
profit by satisfying needs or demands of society. Beside this, purposes of distinct association are
vary from each other due to different motive or aim towards community. Broadly organisations
can be further divided into three parts that is public, private and voluntary institutions (Agarwal, ,
Grassl, and Pahl, 2012). Thus, classification of various organization are described as follows:-
Public sector :- According to this term it has been assessed that it is also known as state
sector because main reason behind establishing public companies is to facilitate entire society
with necessary facilities such as; military, police, construction of roads, bridges, tunnels, water
supply and so on. However, main objective of this sector is to develop overall nation by offering
best facilities to distinct consumers or needy people for reducing their issues. Mainly, few of
these companies are controlled or managed by governing bodies because their main motive is to
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offer best services to whole community. They do not work on the concept of gaining huge profits
and they only assist in achieving concluding end and that is to provide services to people of
society. For example; kingfisher plc is one of the famous public limited company which is
responsible for facilitating common people with different needy products. They have to render
high quality services to their customers and clients. There are different demands which get raised
by distinctive group of people (Aterido, Hallward-Driemeier, and Pagés, 2011). Hence legal
structure of public sector is classified on various grounds like local authority, central governance,
state government and so that is described underneath:-
 Central governing bodies consist of all the administrative segregations of certain state as
well as other units whose main role is to include whole region of nation.
 State bodies is denoted as a isolated organization sector which is utilized to exercise
various functions of governing bodies. They supply assistance in finance and funds so
that there is no problem that has to be faced by them in future time.
 Includes localities regions. It consist of several agencies and structure that is focused on
maintaining revenue or funds of security purpose. These fund is used in meeting future
events that get emerged due to several reasons (Zeng, Li, and Duan, 2012).
Private sector:- Entrepreneur whose main reason behind establishing a business entity is
to gain maximum benefit by satisfying needs or desires of maximum clients. However, these
associations are either sole trader, partnership or large firm because their main objective is to
gain high return on their initial investment. For example; Burger farm which is private
association and transferring food products across the international boundaries in order to acquire
maximum benefits. Purpose:- First or foremost motive is to offer distinct types of food stuffs such as; pizza ,
pasta, various drinks, non veg or veg, desserts and so on. Along with this, they also
wanted to expand their business entity across various nations for generating high range of
revenue. There is other motive connected with it that is installing sustainable market
growth for longer period of time.
 Legal structure:- It has been segregated into several sections such as; limited
organization, partnerships, sole proprietorship and franchises. Apart from this, legal
bodies was designed suitable procedure for registering companies in private sector. For
example; fulfils the registration form and so on (Auzair, 2011).
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Voluntary sector:- As per this element it has been assessed that instead of private or
public there is also another institutions that are established for betterment of society or needy
people (Yoon, 2012). Along with this main objective of voluntary companies are to facilitate
consumers with additional benefits without charging money. However, at European marketplace
number of companies are established in order to offer social services to common people such as;
food or beverages, water, clothes etc. For example; Oxfam is seen as best example for voluntary
sector because they are engaged in providing necessary facilities to consumers. The primary
motive of this type of institution is to develop society on social and economic background so that
their aim can be achieved in sustainable style.
P2. Size and Scope of different types of organisations
Corporate world is having their own scope, size and reason behind establishing an
associations such as ; few are profit oriented, consumers oriented and some are society
development. Hence, size or scope of various firms are discussed as follows:-
Private sector:- According to above information it has been understand that private
companies are established for gaining more or more revenue by satisfying consumer needs.
Along with this, they are also trying to create a long term relations with customers in order to
continue business for longer time frame. Thus, they are adopting modern techniques to increase
the turnover of an association by introducing several creative products or services. For example;
Burger farm is one of the leading private organization whose main objective is to offer various
types of food stuffs in order to facilitate society with creative items. Thus, scope or size of
private companies are described as follows:-
Sole traders:- This association is run by single entrepreneur which means owner is
responsible for assets or liability. All resources are managed by them and face all risks that is
associated with it (Avramenko, 2012). Scope:- Their main objective is to gather maximum return on their investment in order to
live their life in much better way.
 Size:- Consist of minimum stores and turnover is also very less. The growth is also
minimal and have to perform hard tasks to achieve final goals and aims.
Partnerships:- Two members are engaged in this business which means initial
investment is done by dual partners or multiple members for gaining maximum advantages.
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 Scope :- Believes in generating high range of profit and to set up huge financial gains and
outcomes in current market structure (Wild, Wild, and Han, 2014).
 Size:- Medium in size as well as sometime large also because controlled by multiple
partners.
Vision And Mission of Company: The vision statement of burger Farm is to top most
leading company dealing in this sector and mission message underlines satisfaction of
customer';s needs and wants to provide them good quality products to eat. They also focus on
performing CSR activities in order to provide services to their society so that they can able to
fulfil set targets in proper time period. Every company function to make growth and set
constituted share in particular time period.
Public sector:- Mainly these organization are regulated or handled by legal bodies due to
which their size are much larger then other association because their motive is to facilitate
society by offering necessary services. For example; Barclays is one of the leading enterprise by
having maximum number of employees . However, first or foremost scope of this enterprise is to
serve large population in order enhance their living standard. Different stakeholders of public
organizations are highlighted as follows:- Government:- Funds are acquired by governing bodies if there is lack of capital as well
as defend consumers during exploitative activities. Hence , governing bodies are playing
a major role in public sector because they are offering number of facilities to
organization. Every country have specific regulations that need to be taken by company
in their final objective and aims.
 Society:- It refers to people living together in society who are dependent with each other
for number of functions. They can express their ideas and views in various manner and
can be consider while performing operations and transactions (Burns, and Winter, 2011).
There are different phases that necessitates to control it comely.
Mission and Vision of this sector: The main mission of Barclays is to provide financial
services to their clients which are spread over different part of nation. And their mission
statement underlines to set up quality services to customers so that their demands can be met out
properly and effectually.
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Scope and Size of voluntary organisation: This type of institution is focused on performing
welfare activities hence it include NGOs that work on concept of no profit no loss. The major
objective of this type of establishment is as follows:
 They regularly make efforts to develop society so that they can able to work accurately.
 Control so many issues and impacts that get arise in number of situations. Conditions like
female exploitation, child labour is present in society in large number. This components
have to be met in proper structure so that there is no generation of trouble, that can hinder
their performance in long run (Wetherly, and Otter, 2014).
Stakeholders include: Organisation's board of directors, charity trust, other institution etc. all
these make combine efforts to accomplish final set goals and purpose.
Mission and Vision of company: The main mission of company institution is to address
major problem and adversity that is happening in society so that sustainable development can be
done. On the other hand, vision involve developing lead charitable system so that they work
towards developing society's well-being. There are number of issues that are present in society
therefore, decorous system lead to complete their targets and goals.
TASK 2
P3. Relationship between different organisational functions and their link to objectives
Every company is established for fulfilling their final objective and aims hence, have to
make proper structure to carry out the process in efficacious manner. There are certain mission
and vision that has to be accomplished in set time period. There are several departments present
in single system therefore, have to be coordinated in correct mode to achieve set targets (Chow,
and et. al. 2011). Coca Cola have to maintain proper communication that is discussed below:
 Marketing Department: This have to perform several functions related to marketing in
order to increase sales volume of particular organisational system. This department have
to focus on carrying out various marketing activities that main purpose is to attract large
number of customers so that final aim of increasing sales volume can be achieved.
Advertisement is also the important factor which is look after by this division. There are
concepts and aspects that is associated with this section.
 Production Department: This department focuses on producing quality products for
their customers so that their needs and wants get satisfied. It concentrate on developing
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products so that goals and objectives can be accomplished. Department have to produce
products that does not lead to increase in company cost.
 Human resource Department: This department totally focus on managing most
important resource of company that is employees or workers. They have to properly
managed in order to attain best of their efforts. There are rules and regulations that are
formed to conduct operations and transactions successfully.
 Research and Development Department: This department assist in continuous
developing the company structure in various ways. It draft policies and procedures for
whole company structure so that set aims can be accomplished. It is indispensable to
understand the current market scenario and act accordingly. They frame strategies for
future role and purposes to perform different tasks (Commander, and Svejnar, 2011).
 Finance Department: This division completely concentrate on managing various
activities that are carried out in whole company structure. Funds and finance is consider
crucial resource for every business structure as every key areas require either cash inflow
or outflow. Company prepare trading and P & L account to record all accounting
information so that results and outcome can be determined in effectual mode. This role is
conducted by Finance manager of Coca Cola, who control and monitor aspects related to
it. There are various tools and techniques available like Cash flow statement, balance
sheet that is prepared to know the financial position of company (Siewiorek, and et. Al,
2012).
TASK 3
P4. Positive and negative impacts that macro environment has upon business operations
Management require to that they have adequate resources available in organisation,
through which they deliver adequate products and services to people in according to their needs
and wants. This benefit company to generate adequate profit for business by offering items as per
need and wants of customer. In Coca Cola, executive conduct PESTEL analysis to acknowledge
influence of macro environment elements on activities of firm; which is stated beneath:
Political factors: Administration require to make policies, so that system function in
according to government laws. They need to deliver items through which they provide adequate
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goods to people. Coca Cola, which is conducting business all over the world require that
strategies are made in according to regulatory body of nation in which business is being
conducted. Tax policy and changes in labour laws are various elements which influence on
business operations. So, superior require to make alterations in policies and make system
function as per government legislations. This will make their task difficult and will impact on
market reputation of company (Cronan, and et. Al, 2011).
Economic factors: Coca Cola is operating business all over the world. So, management
require to deliver drinks as per taste, culture, customs and desire of country population. It is
necessary that adequate transformations are made in items through which they are able to attract
people. If people have adequate funds, then they will be able to purchase items as per their needs.
This have influence on sales of company and also on profitability.
Social factors: Coca Cola has large number of customer base, through which
administration is able to enhance sales and generate adequate profit for business. As, company
has expanded business in various nations. So, superior faces problems and difficulties in carrying
out activities properly. There are people which are health conscious and so carbonated soft
drinks are harmful for them. This impact on sales of company and its market image in also
affected by this.
Technological factors: In Coca Cola, management uses adequate tools and techniques in
system; through which they deliver adequate drinks to people. Besides this, company uses social
media technology to advertise and communicate information about items that are offered by
them. But this, element consists negative; as superior has to make alterations time to time which
effect on system functionality.
Environmental factors: Executive of Coca Cola, require adequate resources through
which they deliver adequate items to people. Climate change is factor which influence on
operations, as superior require huge amount of water for business. But due to country conditions,
affect on production of carbonated soft drinks. Pepsi, which is competitor of firm also have
impact on Coca Cola. It is necessary that administration pay attention to use of material and that
drinks don't contain any harmful element. This will influence on market image and reputation of
firm.
Legal factors: Coca Cola has developed items and make them protected by getting
certified by government. This help administration to protect resources and deliver adequate
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offerings to people. But, as laws keep changing in according to market conditions. Thus, superior
require to make alterations in system, which will be difficult for them (Teece, 2010). There are
strict rules formed if steps are not fulfilled by any company establishment. They have to make
policies regarding it so that employees and workers conduct their performance very efficaciously
(Dahan, and et.al, 2010).
TASK 4
P5. Conduct internal and external analysis to identify strengths and weaknesses of organisation
In every kind of organisation, administration require to have
knowledge about capabilities of system. This will help them to utilise
resources such as raw material and funds in effective manner (Mahmood, and
Hanafi, 2013). Thereby, make employees perform activities; through which
firm deliver adequate products and services to people in according to their
demands. Besides this, management execute market analysis to
acknowledge items that are offered by competitors. Through this, they even
enquire about market position and reputation of Coca Cola. Thus, this is
SWOT analysis which is undertaken by superior to assess internal and
external elements which affect business operations. This tool is used by
administration to enquire about needs and wants of consumer, and also get
information about market opportunities. Thereby, Coca Cola manufacture
products and deliver adequate items in marketplace.
SWOT analysis of Coca Cola:
Strengths: Management require to design system and uses appropriate tools and
techniques in organisation. This will help them to deliver products and services as per demands
of people. Coca Cola which offer carbonated soft drinks is famous brand in across the world.
This firm is using efficient promotional devices to advertise and inform people about products
offered by them. Manager of firm is having strong connection with intermediaries, so they are
able to distribute items in various nations. So, company is able to increase customer base and
make them loyal towards their items. This help firm to sustain clients for longer period.
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Weaknesses: In enterprise, there are various problems and difficulties in system which
impact on business activities. So, it is necessary that management take care that operations take
place in proper manner. As in Coca Cola consists certain products which are not popular in
marketplace. Company deliver unhealthy drinks, so superior should conduct activities through
which they are able to improve goodwill in marketplace (Ullah, and Lai, 2011). This brand
doesn't offer variety of offerings in their portfolio. This impact on sales and firm is not able to
earn adequate revenue for business (López-Gamero, Molina-Azorín, and Claver-Cortés, 2011).
Opportunities: In Coca Cola, management have various chances through which they can
enlarge business. As, currently they are offering carbonated soft drinks; so fruit juices and health
drinks is segment in which they can expand operations. Besides this, superior should use
adequate package for beverages. This help them in promotion of items in various nations; as
administration is having adequate funds through which they are able to carry adequate business
activities (Fernando, 2011).
Threats: Coca Cola, which is offering carbonated soft drinks have rivalry with Pepsi. It is
necessary for management that they use adequate raw material and outsource in appropriate
manner. This will influence on profitability of firm, as people which are health conscious will
not purchase their drinks. Company business is also affected due to offerings of Starbucks,
Costa Coffee and Cafe Coffee day. These are organisation which influence
on business functionality.
P6. Strengths and Weaknesses interrelate with external macro factors
Business environment keeps on changing with time and company have
to modify their existing policies and structures so that end and objectives
can be attained in prospective mode. There are two constituent that have
direct impact of functioning of business, internal and external.
Organisations have to study these elements and make decision accordingly.
These can be described in micro and macro divisions. There is lot of
differences between these phases and thus, have to be examined accurately
(Halbert, and Ingulli, 2011).
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Economical Component: This factor have major influence on system
of organisation. It have diverse dimensions that involve monetary policies,
company's total cost, assorted trade attributes. There can be situation of
inflation and deflation that pose a problem in carrying out the process
hence, this element is one of the macro factor.
Social Component: There are several factors that are present in
society which include number of factors that have several dimensions.
Customers are also part of this society which need proper attention by
meeting their demands in proper time period. They keep on making
preferences that may be favourable and unfavourable, which need to taken
into consideration in decision making process (Gebauer, Paiola, and Edvardsson,
2010).
Technological Component: Modern environment is full of many
techniques that have to be adopted to run the business properly and
correctly. There are methods that have to be adopted by management level
so that products and services can be conducted in potential mode. Modern
technology have to be adopted in order to keep in pace with the current
business environment. Conducting functions and roles have to be in
accordance to modern and advanced concepts.
Environmental Component: There are several resources that are
available in environment, these have various components that has to be
taken into consideration. There are set mission and vision that has to be
attained while focusing on these number of constituents. There are
environmental scenario which experience lots of changes and alterations
and has to be adopted by higher management level which make strategic
conclusion for whole structure.
Political and legal Component: According to this factor there are
number of legal rules and regulations that has to be consider to follow all
set legal policies. This responsibility is taken up by management level to run
their operations and work process accurately. All the decision related to this
component effect the actions that are performed in the organisational
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system. Government have drawn definite laws and regulations that has to
be followed by coca cola. Non compliance lead to generation of problems
and issues that will hinder their growth and outcomes. Therefore, it have to
be meet in improved style (Hamilton, and Webster, 2015).
It is observed that if there is compliance of all these factors that are
discussed above will result into proper achievement of final tasks of
company system. For instance, if government have set some taxes and
rebates that is related to production of product and services is to be
inculcated in system so that there is proper acceptance can be done while
conducting working process.
CONCLUSION
From the above report it can be concluded that business environment is the sum of all
factors that are present inside and outside of organisation. These have to be examine properly so
that work process can be conducted effectively and efficiently. The company highlighted in this
assignment is Coca Cola which is well established beverage brand. There are number of factors
that have to be study rightly so that set mission and vision can be accomplished. In order to study
these factors company have to perform PESTLE and SWOT analysis to examine it clearly and
distinctly. There are different type of organisational structures present in business environment
and have distinct roles and responsibilities to be met out.
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