HNC Business: Analyzing Coca-Cola's Business & External Factors

This report provides a comprehensive analysis of Coca-Cola's business environment, focusing on the macro environment's positive and negative impacts through a PESTLE analysis. It examines political, economic, social, and technological factors affecting Coca-Cola's operations. The report also includes an internal and external analysis of the organization, highlighting strengths, weaknesses, opportunities, and threats (SWOT). It further explores the relationship between these internal factors and the macro environment. The analysis concludes that PESTLE and SWOT are essential tools for understanding the external and internal factors influencing an organization's operational activities. This document is available on Desklib, where students can find a variety of solved assignments and past papers.

Business and Business Environment

Table of content
 Introduction
 Positive and negative impacts of macro environment
 Internal and external analysis of the organisation
 Relation of strength and weaknesses with the macro environment
 Conclusion
 References

INTRODUCTION
Macro environment is analysed to figure out that what external factors are
affecting business operations. It is very important for a businessman to
get the information of such type of factors. These factors may help to
figure out all favourable or unfavourable effects of environment on the
business operations.

Positive and negative impacts of macro environment
Political: Such type factors are related to different strategies that are
made and implemented by the political parties of a country. Impacts of
these factors on Coca Cola are explained below:
Positive: As Coca cola is having good relations with government which
has provided opportunity to raise its business at international level.
Negative: If company is not able to follow all the government policies
that it is not possible to run the operation effectively.

Continued...
Economical: These factors are related to inflation and deflation. They can
directly affect the business operations. Positive and negative impact of
them are explained below:
Positive: Purchasing power of most of the buyer is weak hence they are
not able to buy expensive goods.
Negative: If the economy is in the deflation situation than this will
reduce the customers demand and sales for the Coca Cola.

Continued...
Social: These factors are related to customer preferences, education, age,
buying behaviour etc. Following are the impacts of these factors:
Positive: If education level and paying capacity of the customers is high
than this may affect positively as this can enhance the sales. It also
provides opportunities to Coca Cola to expand its business effectively.
Negative: Most the customer are becoming health conscious and they
ignore the use of soft drinks as they may harm their health. It has
affected the operations of the company.

Internal and external analysis of the organisation
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Internal analysis:
Strengths
Coca Cola is using fantastic marketing
strategies that helps to reach maximum
number of customers.
It has largest distribution channel because
of the demand on its products in the
market.
Weaknesses
There is no product diversification in Coca
Cola and it only deals in beverages.
Lack of health beverage in the drinks
provided by Coca Cola which is reducing
the number of customers.
External analysis:
Opportunities
Supply chain of the organisation can be
improved in order to enhance business.
Coca Cola can use diversification in the
health and food sector that may help to
increase the number of customers.
Threats
There are various competitors like Pepsi
are trying to acquire the market of Coca
Cola.
Consumers are becoming more health
conscious and ignoring the consumption
of such type of drinks that can affect
Coca Cola adversely.

Relation of strength and weaknesses with the macro
environment
Political: These factors are related to government regulations and laws
that are related to the industry.
Strength: Government in UK is providing different opportunities like no
trade charges and other to the business in order to enhance their
economic strength.
Weaknesses: If company is not running its business according to the
policy of government than it may reduce its sales.

Continued...
Economical: These factors are mainly related to the paying capacity of
the customers and different inflation rates of the economy.
Strength: Higher paying capacity of customers will enhance the sales
for the company.
Weaknesses: If inflation rates is decreasing than this may result in
decreased revenues.

Continued...
Social: Such type of factors can affect the sales and profitability of the
company as it depends upon the taste, preferences, age and education of
the customers.
Strength: As company is using effective marketing strategies that may
help to attract large number of customers.
Weaknesses: Coca Cola is only dealing in cold drinks and customers are
shifting toward health drinks.

Conclusion
From this project report it has been concluded that PESTLE and SWOT
analysis are used to analyse all the factors that may affect the
operational activities of the organisation.

References
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business
environment. Cengage Learning.
Hamilton, L. and Webster, P., 2015. The international business
environment. Oxford University Press, USA.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating
value in a dynamic business environment. McGraw-Hill Education.