Regent College HND Business Environment Analysis: Coca Cola Report

This report provides a comprehensive analysis of the business environment, focusing on Coca-Cola. It begins with an introduction defining the business environment and its impact, then moves to Task 2, which explores the relationships between various organizational functions like marketing, human resources, operations, and finance, along with an overview of organizational structures. Task 3 examines the positive and negative impacts of the macro environment on the business, specifically considering political, economic, social, legal, and environmental factors. Task 4 presents a SWOT analysis of Coca-Cola, detailing its strengths, weaknesses, opportunities, and threats, and discusses how these elements interrelate with the macro environment using PESTLE analysis. The report concludes by summarizing the key findings and emphasizing the importance of understanding the business environment for achieving organizational success. The report is a part of the HND Business course and aims to analyze the business environment of Coca-Cola.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT......................................................................................................................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............................................................................................................................................4
P5 Studying on Internal and External Analysis......................................................................4
P6 Ways in which Strengths and Weaknesses interrelate with macro factors.......................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment can be stated as process of internal and external factors which has the
potential of affecting business in direct or indirect manner. Effectiveness can be bought within
the business and its environment by determining actual needs and wants of customers and thus
provide them maximum level of satisfaction (Aula, 2010). There are number of factors which
have to come together and come as one so that objectives of company can be attained in positive
and effective manner. Company chosen or this kind of report is Coca Cola which is a multi-
national brand who deals in soft carbonated drinks and this was established in 1886. There are
number of things which will be discussed within this report like size and scope of various kinds
of companies along with their legal structures. Besides this, relations among function of
company and their interrelation with business objectives will be explained. There are positive
and negative impacts on macro environment which will also be highlighted.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between different organisational functions
Within a company there are number of sections which have impact in direct or indirect manner
on the ratios of profit and production and those sections are being described below:
 Marketing: This kind of factor can be stated as an essential factor of company which
provide help in attaining aims and objectives of company in better and effective manner.
Marketing strategies of coca cola has been helping out in bringing improvisation within
products and services and thus acquire high customers (Belás and et. al., 2015). There
are various kinds of strategies which are being formulated to uplift the graph of revenue.
This kind of sector is highly related to the financial sector as the funds are being needed
to make the marketing successful.
 Human Resource Management: This kind of sector plays essential role in providing man
force and employees to company and thus fulfil the vacant posts. Besides this, main focus
of this kind of sector is on determining actual needs and wants of employees and thus
satisfies them in effective manner. Interrelation of this kind of sector is to the operational
sector which mainly needs the human force in order to attain task and objectives.
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 Operations and Production: Providing products and services to the customers and thus
satisfy them so that revenue can be generated is the main motive of this kind of sector
(Bill Pasmore, S.V.P and C M C, 2010). Fulfilling needs and wants of the customers is
priority of this kind of sector and thus due to this, sector is interrelated to the HR and
finance sector as HR will provide employees and finance sector will provide funds to
attain objectives.
 Accounting and Finance: This kind of department is the one of the most essential part of
company as without it company will not able to stand within market. There are fund
which is needed to conduct operations and make the process successful. Hence it can be
stated this kind of sector is highly relates to every kind of sector.
Figure 1Organisational structure
(Source: Company’s Structural Behaviour, 2018)
Four main organisational structure are described below:
 Function-Based: This kind of process can found common among all kind of companies
but it structure differs. This kind of process has various benefits among which essential
one is that it provides classification and thus that enables to face any kind of adverse
situation.
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 Product-Based: Regular structure of item is required to be organized by specific items
kind. Each item falls under the structure of an official and that is being directs by the
general population with the goal that it can be identified with product offering
(Blanchard, Tolbert and Mencken, 2011). The principle favourable position of this sort of
classification is that it helps in ordering items into successful way.
 Customer-Based: The principle motivation behind this sort of structure is to meet the
tasteful level of the clients which are being giving through items and administrations.
There are numerous preferences which can be given however among them the principle
advantage is that it causes in giving fulfilment to the clients to a specific gathering not to
each one.
 Geographic-Based: It is for the association who is working its business procedure in the
worldwide market and they have to conceal the particular geographic locale with the goal
that clients can be gained in productive way (Cantwell, Dunning and Lundan, 2010).
This structure essentially deals with the vast scale ventures that make their own items
because of their enormous territory of tasks.
TASK 3
P4 Positive and negative impact of macro environment upon business organisation
There are number of factors which play essential role within the conduction of operations along
with running business process. While formulating plans and strategies, there are two main factors
which have the potential of making impact and those are micro and macro factors (Chow and et.
al., 2012). Micro factors are related to the inside of company while macro relates to the outside
factors of company. Macro factors of an organisation like Coca Cola are being described below:
 Political Factors: There are various kinds of regulations and laws made by respective
govt. of country which needs to be followed by company in order to attain growth and
success (Commander and Svejnar, 2011). Coca Cola can be stated as company who
mainly deals in carbonated drinks within international market. Positive impact of this
kind of sector is that it can reduce the chances of error along with avoiding illegal
activities while negative impact can be change in rules due to change in policies.
 Economic Factors: This kind of sector is highly essential for a company like Coca Cola
to regulate these kinds of factors in order to attain objectives in smooth manner. Positive
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impact of this kind of sector is that it provides help in bringing sustainability within
market and thus helps in obtaining growth while the negative aspect can be that
increment in taxation of recession can affect the productivity of company.
 Social Factors: There are various kind of social factors which can make impact on
operations of the business in numerous sectors like retailing or the food sector due to
many reasons like change in taste or trend. Positive impact of this kind of factors is that
it provides help company to attain needs and wants of customers and thus fulfil thme in
positive and maximum manner while the negative impact can be like rapid speed in
market changing which can hinder the level of production.
 Legal Factors: There are number of laws and regulations which are being made by the
UK govt. in order to stop the illegal activities like trading or duplicate item (Cordes,
Richerson and Schwesinger, 2010). Hence govt has made many of the acts which
protect the rights like food safety act which was enforced in 1990 in order to maintain
the quality of consumable items. This kind of act is highly essential for the company
like Coca cola as they also deal in consumable items. Positive impact of this kind of
sector is company will not be able to fall under any kind of illegal activities whereas
negative impact can be like certain flavours which cannot be utilised as they falls under
drug category. Environmental Factors: For protecting environment and health standards of entire
population, it is highly essential to improvise the production of ecological and
economical products.
TASK 4
P5 Studying on Internal and External Analysis
SWOT analysis of company is highly essential factor which is being utilised in order to
determine the nature of business on the grounds of internal and external factors. Below described
is the SWOT analysis of company:
Strengths Weakness
 This company has high goodwill within
market regarding its products.
 Spectacular brand value and product
 Few products of company are not much
popular within marketplace.
 Unenthusiastic media-hype.
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marketing.
 Better distribution channel for creating
awareness about products and services.
 Customer loyalty of the company is
high in nature.
 Well-built commercialisation and
marketing concepts.
 Number of products introduction within
market has failed
 There are high creditors due to
excessive funding.
 Manufactured goods collection and
UN-diversification (Cronan and et. al.,
2011).
 Little diversification for goods.
Threats Opportunities
 Major competitor is Pepsi.
 Number of substitutes is present within
market like fruit juice and many more.
 People are getting health conscious.
 Numerous companies which are
indirect competitor to the coca cola like
Starbucks, Costa Coffee and Cafe
Coffee day.
 Sluggish expansion and embryonic
carbonated soft drinks.
 Product promotions can be done in
effective manner.
 Improvising within packaging of
bottled drinks in market place.
 High capital is present for business
expansions.
 Monotonous implementation and
success in North America.
P6 Ways in which Strengths and Weaknesses interrelate with macro factors
There are number of factors in macro environment which has the potential of affecting the
strength and weaknesses and that can be done with the help of PSETLE Analysis which is
described below:
 Political Factors: Position within the marketplace interrelates with the competitive
market which in turn can be affected by the political factors and these govt. formulated
rules should be followed by company in order to attain the objectives and that can only
be done when govt. will reduce the taxation.
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 Economical Factors: Strength and weaknesses of the company is mainly impacted by
the condition of the marketplace (De Jonge, 2011). Besides this, economical condition of
the country can also make an impact on the sales and production graph and thus it can
help in attaining aims and objectives.
 Social Factors: Level of performance of the company is mainly impacted by this kind of
factor as there are certain demands and desires of customers which changes as per trends
within the marketplace.
 Technological Factors: There are various ways by which innovation can be implemented
along with the adoption of latest technology and by these employees will be able to bring
development within them. This in turn will allow them to perform in high manner and
thus bring high competitive advantage (Erving and et. al., 2011). There are certain
policies along with demands by which company can fulfil the mission accomplishment.
CONCLUSION
From the above report, it can be concluded that it is highly essential for the company to bring out
effectiveness within the business process in order to have success. There are mainly two kinds of
factors which are micro and macro which plays crucial role in making company attain aims and
objectives of company in better way. Along with this, it has been determined while making this
report is that above mentioned company which is Coca Cola has maintained better position and
thus it is easy for them to acquire the platform of opportunities and thus fully utilise them in
effective way regarding the business within global market.
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REFERENCES
Books and Journals
Aula, P., 2010. Social media, reputation risk and ambient publicity management. Strategy &
Leadership. 38(6). pp.43-49.
Belás, J and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
(1). p.95.
Bill Pasmore PhD, S.V.P and C M C, T. O. S., 2010. Leadership agility: A business imperative
for a VUCA world. People and Strategy. 33(4). p.32.
Blanchard, T.C., Tolbert, C and Mencken, C., 2011. The health and wealth of US counties: how
the small business environment impacts alternative measures of development.
Cambridge Journal of Regions, Economy and Society. 5(1). pp.149-162.
Cantwell, J., Dunning, J. H and Lundan, S. M., 2010. An evolutionary approach to understanding
Cronan, T.P and et. al., 2011. Decision making in an integrated business process
context: Learning using an ERP simulation game. Decision Sciences Journal of
Innovative Education. 9(2). pp.227-234.
Chow, A.T and et. al., 2012. Computer readable medium with embedded instructions for
providing communication services between a broadband network and an enterprise
wireless communication platform within a residential or business environment. U.S.
Patent 8.155.155.
Commander, S and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Cordes, C., Richerson, P.J and Schwesinger, G., 2010. How corporate cultures coevolve with the
business environment: The case of firm growth crises and industry evolution. Journal of
Economic Behavior & Organization. 76(3). pp.465-480.
Cronan, T. P and et. al., 2011. Decision making in an integrated business process context:
Learning using an ERP simulation game. Decision Sciences Journal of Innovative
Education. 9(2). pp.227-234.
De Jonge, A., 2011. Transnational corporations and international law: accountability in the
global business environment. Edward Elgar Publishing.
Erving, R. H and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7.944.948.
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