Business Environment Analysis of Coca-Cola: Report and Strategies

This report provides a comprehensive analysis of Coca-Cola's business environment, examining both internal and external factors. It begins with an introduction to the business environment and its impact on organizational success, focusing on Coca-Cola as a global case study. The report explores the relationship between different organizational functions, including marketing, human resources, operations, and finance, and their connection to business objectives. It then delves into the positive and negative impacts of the macro environment on Coca-Cola, including political, economic, social, legal, and environmental factors. The report also conducts a SWOT analysis to assess Coca-Cola's strengths, weaknesses, opportunities, and threats, and examines how these factors interrelate with the macro environment using PESTLE analysis. The report concludes with a summary of key findings and implications for Coca-Cola's strategic planning and overall business performance.

Business Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 $ P2....................................................................................................................................1
P3 Relationship between different organisational functions..................................................1
TASK 2............................................................................................................................................3
P4 Positive and negative impact of macro environment upon business organisation............3
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 means the atmosphere in which business operates. It includes all the
internal and external factors that comprises in a business and those affect the workings of a
business directly or indirectly. Effectiveness in a business can be achieved by understandings the
needs and desires of customers and fulfilling them in a effective and efficient way. For achieving
the success in long run, for achieving the objectives laid down it is highly required that both the
factors should go together or hand in hand than only the desired results will appear (Aula, 2010).
In this report, our key topic is the company named COCA COLA, which is global company and
the main products are carbonated soft drinks, and it started its operations in 1886, dealing
globally. This report will study the different types of organizations with their mission, objectives,
purposes, size, scope and legal structures and further relation between all organizational
functions and their connection with objectives of business will be discussed. And the overall
impact of macro environment on business organization that may be positive or negative will be
studied as well.
TASK 1
P1 $ P2
Covered in PPT
P3 Relationship between different organisational functions
Multiple sections are present within an organisation like Coca Cola which has potential to make
impact upon profit ratios along with production sector as well:
 Marketing: This sort of factor can be expressed as a fundamental factor of organization
which gives assistance in accomplishing points and targets of organization in better and
viable way. Showcasing methodologies of coca cola has been assisting in bringing act of
spontaneity inside items and administrations and in this manner obtain high clients (Belás
and et. al., 2015). There are different sorts of systems which are being planned to inspire
the diagram of income. This sort of segment is exceptionally identified with the monetary
area as the assets are being expected to make the advertising effective.
 Human Resource Management: This sort of area assumes basic part in giving man power
and workers to organization and in this manner satisfies the empty posts. Other than this,
primary focal point of this sort of part is on deciding genuine needs and needs of
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representatives and subsequently fulfils them in successful way. Interrelation of this sort
of part is to the operational division which chiefly needs the human power keeping in
mind the end goal to achieve assignment and destinations (Bill Pasmore PhD and C M C,
2010).
 Operations and Production: Giving items and administrations to the clients and in this
manner fulfil them with the goal that income can be produced is the fundamental
rationale of this sort of segment. Satisfying necessities and needs of the clients is need of
this sort of area and in this manner because of this, segment is interrelated to the HR and
back part as HR will give workers (Blanchard, Tolbert and Mencken, 2011).
Furthermore, back segment will give assets to accomplish destinations.
 Accounting and Finance: This sort of office is the standout amongst the most basic piece
of organization as without it organization won't ready to remain inside market. There is
finance which is expected to lead tasks and make the procedure fruitful. Subsequently it
can be expressed this sort of segment is exceedingly identifies with each sort of area
(Cantwell, Dunning and Lundan, 2010).
Figure 1Organisational structure
(Source: Company’s Structural Behaviour, 2018)
Four main organisational structure are described below:
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 Function-Based: This sort of process can discovered normal among all sort of
organizations however it structure contrasts. This sort of process has different advantages
among which basic one is that it gives grouping and subsequently that empowers to
confront any sort of antagonistic circumstance.
 Product-Based: In this kind of structure, there is a regulation which is being needed for
certain kind of items. It is highly essential to have better level of structure and branding
for the products which are being directed by the population with goal which in turn can
mainly be identified (Chow and et. al., 2012). Main fundamental of this kind of position
is that it can help in classifying which in turn can help out in accomplishing objectives.
 Customer-Based: The main motive of this factor is that it helps out in meeting the
satisfaction level of customers effectively and thus accomplishes the objectives. Multiple
kind of preferences which can be made and given the clients so that they can have long
term with the company and its products
 Geographic-Based: This can be stated for the company which is mainly working with
procedure of business within the marketplace and thus they try to conceal the certain
region with aim of retaining the clients for long period of time (Robbins, Judge and
Campbell, 2010).
TASK 2
P4 Positive and negative impact of macro environment upon business organisation
There are number of variables which assume fundamental part inside the conduction of tasks
alongside running business process. While detailing designs and systems, there are two
fundamental variables which have the capability of having effect and those are miniaturized
scale and full scale factors (Commander and Svejnar, 2011). Small scale factors are identified
within organization while full scale identifies with the outside elements of organization. Full
scale variables of an association like Coca Cola are being portrayed beneath:
 Political Factors: There are different sorts of directions and laws made by particular
govt. of nation which should be trailed by organization with a specific end goal to
achieve development and achievement. Coca Cola can be expressed as organization who
for the most part bargains in carbonated beverages inside global market (Cordes,
Richerson and Schwesinger, 2010). Positive effect of this sort of area is that it can
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decrease the odds of mistake alongside keeping away from illicit exercises while negative
effect can be change in rules because of progress in arrangements.
 Economic Factors: This sort of segment is exceedingly fundamental for an organization
like Coca Cola to control these sorts of variables so as to accomplish targets in smooth
way. Positive effect of this sort of part is that it gives assistance in bringing manageability
inside market and consequently helps in getting development while the negative
perspective can be that augmentation in tax assessment of retreat can influence the
profitability of organization (Cronan and et. al., 2011).
 Social Factors: There are different sort of social components which can have effect on
tasks of the business in various divisions like retailing or the nourishment area because of
numerous reasons like change in taste or pattern (Guglielmetti, 2011). Positive effect of
this sort of variables is that it gives assistance organization to accomplish needs and
needs of clients and therefore satisfy them in positive and most extreme way while the
negative effect can resemble fast speed in showcase changing which can impede the level
of generation.
 Legal Factors: There are number of laws and controls which are being made by the UK
govt. keeping in mind the end goal to stop the unlawful exercises like exchanging or copy
thing. Henceforth govt has made a considerable lot of the demonstrations which secure
the rights like sustenance wellbeing act which was implemented in 1990 with a specific
end goal to keep up the nature of consumable things (De Jonge, 2011). This sort of act is
very fundamental for the organization like Coca cola as they likewise bargain in
consumable things. Positive effect of this sort of area is organization won't have the
capacity to fall under any sort of unlawful exercises though negative effect can resemble
certain flavours which can't be used as they falls under medication class.
 Environmental Factors: For ensuring condition and wellbeing models of whole populace,
it is very basic to modify the creation of natural and sparing items.
P5 Studying on Internal and External Analysis
In order to determine the business nature of the company, it is very necessary to conduct the
SWOT Analysis on the basis of external and internal factors. SWOT analysis of the Coca Cola
has been described below:
Strengths Weakness
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 This organization includes high
altruism inside market in regards to its
items.
 Spectacular mark esteem and item
showcasing.
 Better dissemination channel for
making mindfulness about items and
administrations.
 Customer reliability of the organization
is high in nature.
 Well-fabricated commercialisation and
showcasing ideas.
 Few results of organization are very
little famous inside commercial centre.
 Unenthusiastic media-build-up.
 Number of items presentation inside
market has fizzled
 There are high banks because of over
the top subsidizing.
 Manufactured merchandise gathering
and UN-enhancement.
 Little expansion for merchandise.
Threats Opportunities
 Major contender is Pepsi.
 Number of substitutes is available
inside market like natural product juice
and some more.
 People are getting wellbeing cognizant.
 Numerous organizations which are
backhanded contender to the coca cola
like Starbucks, Costa coffee and Cafe
Coffee day.
 Sluggish development and embryonic
carbonated soda pops.
 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
Macro environment has multiple kind of factors which mainly has the ability of making an
impact upon the strength and weaknesses and thus that can b done with the help of PESTLE
analysis which is being described below:
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 Political Factors: There are different courses by which advancement can be actualized
alongside the appropriation of most recent innovation and by this representatives will
have the capacity to bring improvement inside them (Erving and et. al., 2011). This
thusly will enable them to perform in high way and in this manner bring high upper hand.
There are sure arrangements alongside requests by which organization can satisfy the
mission achievement.
 Economical Factors: Level of execution of the organization is essentially affected by this
sort of factor as there are sure requests and wants of clients which changes according to
patterns inside the commercial centre
 Social Factors: Quality and shortcomings of the organization is primarily affected by the
state of the commercial centre. Other than this, efficient state of the nation can likewise
have an effect on the deals and generation diagram and in this way it can help in
achieving points and goals (Fernando, 2011).
 Technological Factors: Position inside the commercial centre interrelates with the
focused market which thusly can be influenced by the political components and these
govt. figured guidelines ought to be trailed by organization with a specific end goal to
accomplish the targets and that must be done when govt. will decrease the tax assessment
(Gebauer, Paiola and Edvardsson, 2010).
CONCLUSION
From the above report, it can be presumed that it is very basic for the organization to bring out
viability inside the business procedure keeping in mind the end goal to have achievement. There
are mostly two sorts of variables which are miniaturized scale and full scale which assumes
pivotal part in influencing organization to accomplish points and destinations of organization in
better way. Alongside this, it has been resolved while making this report is that previously
mentioned organization which is Coca Cola has kept up better position and subsequently it is
simple for them to secure the stage of chances and in this manner completely use them in
compelling way in regards to the business inside worldwide market.
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