Coca-Cola's Business Analysis: Environment, Issues, and Solutions

This report presents a comprehensive business analysis of Coca-Cola, evaluating its strengths, weaknesses, and the external environment through a PEST analysis. It identifies key issues such as ineffective leadership, product portfolio challenges, health concerns, and environmental considerations. The report proposes solutions using Kotter's 8-step change management model, outlining an implementation plan that includes situational analysis, issue identification, audience definition, resource allocation, vision development, employee training, and change implementation. The analysis provides insights into the challenges facing Coca-Cola and suggests strategies to improve its performance in the global market. The report also includes references to support the analysis.

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Progress Report
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Contents
Progress Report 1.......................................................................................................................1
Introduction............................................................................................................................1
Analysis of Business environment.........................................................................................1
PEST......................................................................................................................................1
Progress Report 2.......................................................................................................................2
Issues in Business...................................................................................................................2
Use of Change Management Theory......................................................................................3
Implementation plan...............................................................................................................4
References..................................................................................................................................5

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Progress Report 1
Introduction
The purpose of this paper is to highlight the information about the analysis of the business
case of the company Coca Cola. The report conducts evaluation of the market of the country
in which Coca Cola is currently working and representation of the issues faced by them. The
company Coca Cola is a large scale multinational organization that face coupe up with
several issues on a regular basis. The paper is going to discuss several issues faced by the
company while working in the international market. It also aims to find out the best solution
to company to resolve major challenges in the business. More details about the paper are
mentioned below:
Analysis of Business environment
Strengths: the biggest strength of the company is its goodwill and brand image. The company
holds an extensive image in the target market that helps them to capture the interest of the
customers and provide them products and services. Also, the global reach of the company
helps them to keep the customers entertain product portfolio.
Weakness: the biggest weakness of the company is that its ineffective leadership is maintain
large product portfolio of the organization. The company face difficulty in managing the ‘n’
number of products present in the food and beverages segment. Also more and more people
are getting concerned towards their health and drinking aerated drinks does not provide any
good to them (Wang 2015).
PEST
Political: the political environment of Australia states that the government is stable for the
international companies to perform functions in the global environment. The government of

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the nation is reactive and holds strong alliance with several other powerful nations like US,
Japan etc. The country is a constitutional monarchy with the queen Elizabeth II who is the
head of the state.
Economic: the economic environment is stable and becoming powerful economic nation day
by day. The economy of the country ranks on the 5th position in the world that show
optimistic scope for the international companies to work in the given market. The nominal
GDP of Australia in 2019 was approx. US $ 105 trillion that accounts to 1.7% of the overall
GDP of the world.
Social: the social environment of holds diversity in the environment. People in the nation are
indulgent towards freedom and good lifestyle. Variety of people helps the nation to enjoy
different types of cultures and cuisines. The country has population of 24 million that is
relatively less as compared to population of other nation.
Technological: the country attains technology by joining hands with US that helps them to
become more powerful and competitive. The nation supplies technology to every business so
as to help the country grow. Local companies of Australia have also started investing in
obtaining technology for their business so as to deliver their products and services to the
customers in better ways (Digital Journal 2018).
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Issues in Business
Lack of Leadership: the ineffectiveness of leadership capabilities made the position of the
worse. The management of the company is unable to capture the interest of its employees due
to which the products portfolio has started to act as a negative factor for the company.

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Product Portfolio Issue: large scale of product portfolio with poor leadership is making it
difficult for the organization so as to maintain sales growth for all of its products.
Health Issues: people are becoming more concerned about the impact that Coca Cola food
and beverages would put on their body. Resulting in which, they have started to reduce its
consumption from the market.
Environmental Issues: the malpractices of the company is making it difficult for the
organization to maintain its CSR activities and supply benefits to the community in return
(Ulman, Cakar, and Yildiz 2015).
Use of Change Management Theory
Change management is important for the business because it helps them to analyze the trends
in the international environment and implement them in the internal environment as well. It is
important for Coca Cola implement change management strategies in the business so as to
eliminate issues in the business. This would help the company to move forward in a better
way in the international environment. The company should make use of Kotter’s change
management plan so as to implement it on the company. Kotter’s 8 step change management
model explain the ways in which the business could initiate changes in their internal
environment while resolving the resolving the resistance to change as well (Teixeira,
Gregory, and Austin 2017). Below mentioned are the steps for Kotter’s change management
model:
1. Creation of Urgency
2. Development and guiding of coalition
3. Creation of vision for change
4. Communication of vision for change
5. Removing obstacles

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6. Creation of short term wins
7. Building changes
8. Anchoring the changes in business (Tang 2019)
Implementation plan
1. Situational analysis: the company aims to analyze the external as well as internal
environment in which the company is prevailing to attain better hand on the market
situation.
2. Finding issues in business: figure out the issues that the company is facing in the
internal and external environment of Coca Cola so as to fix them using change
management program.
3. Defining audience to target: once the issues are analyzed, it is important for the
organization to define the target audience to increase productivity of business (Ling
2017).
4. Analyzing resources and technology to use: change management process in the
business require resources and technology for the company so as to eliminate
resistance and resolve organization’s problems.
5. Development of vision for change: vision for change would provide objective and
direction to the company that which ways the company and its employees need to
move. This would help in successful completion of short term and long term wins of
the company.
6. Training of employees: the company should train the employees based on the change
management plan so that they do not resist towards changing and help the business in
achieving its objectives in the business environment.

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7. Implementation of changes in business: at the end, the company needs to implement
Kotter’s change management plan for the completion of long term objectives of the
company.
References
Digital Journal. (2018)Australia PESTEL Analysis, SWOT Analysis and Risk Analysis
Market Research Report Launched [Online] Available from:
http://www.digitaljournal.com/pr/3345099 [Accessed on: 23-02-2020].
Ling, X., 2017. Customer Relationship Management: Case study Coca-Cola Company.
[online]. Available from <
https://www.theseus.fi/bitstream/handle/10024/126089/Ling_Xiaojing.pdf.pdf?
sequence=1&isAllowed=y > [accessed on 24 Feb. 20].
Tang, K.N., 2019. Change management. In Leadership and Change Management (pp. 47-55).
Springer, Singapore.
Teixeira, B., Gregory, P.A. and Austin, Z., 2017. How are pharmacists in Ontario adapting to
practice change? Results of a qualitative analysis using Kotter’s change management
model. Canadian Pharmacists Journal/Revue des Pharmaciens du Canada, 150(3), pp.198-
205.
Ulman, Y.I., Cakar, T. and Yildiz, G., 2015. Ethical issues in neuromarketing:“I consume,
therefore I am!”. Science and engineering ethics, 21(5), pp.1271-1284.
Wang, M., 2015. Fundamental Analysis of Coca-Cola, Inc. [online]. Available from <
http://dspace5.vsb.cz/bitstream/handle/10084/107131/WAN0024_EKF_N6202_6202T010_0
1_2015.pdf?sequence=1&isAllowed=y > [accessed on 24 Feb. 20].

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