Analysis of Coca Cola's Business and Business Environment Report

This report presents a comprehensive analysis of Coca-Cola's business and business environment. It begins with an overview of different types of organizations, their purposes, and legal structures, including private, public, and voluntary organizations. The report then examines the size and scope of small, medium, and large organizations, highlighting how these factors impact organizational objectives. A significant portion of the report is dedicated to Coca-Cola, analyzing its different functions (finance, HR, marketing, IT) and their integration with the organizational structure. The report also includes a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors influencing Coca-Cola's operations. Furthermore, a SWOT analysis is conducted to assess the company's strengths, weaknesses, opportunities, and threats, with a discussion on how these internal and external factors interrelate and inform decision-making. The report concludes with a summary of the findings and their implications for Coca-Cola's strategic management and overall business performance.

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(P1) Different types of organisations with their purposes and legal structure.......................1
(P2) Size and scope of small, medium and large organisations.............................................2
(M1) The way structure, scope and size impacts the objectives of organisation...................3
(P3) Different functions of Coca Cola and their link with objectives and organisational
structure..................................................................................................................................4
(P4) PESTLE Analysis of Coca cola company......................................................................5
(M3) Demonstrate the application of PESTLE Analysis in organisation..............................6
(P5) SWOT Analysis of Coca cola organisation....................................................................6
(P6) Discuss how strengths and weaknesses inter relate with external macro factors...........7
(M4) Carry out SWOT analysis result and justify how it helps in decision making in
organisation............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
The organisation needs to be competent to perform the tasks effectively. The enclosed
report deals with Coca Cola company which is market leader and giant in providing beverages to
almost all the nations (Arsanjani, Jalaldeen and Purohit, 2016). It has to analyse the macro as
well as micro factors to function effectively and achieve the objectives in effectual manner by
increasing the sales and revenue to maximum extent.
TASK 1
(P1) Different types of organisations with their purposes and legal structure
Private organisation
They are not operated by government, it is formed by private owners. They work for
earning profits.
Private organisation is legally formed for the purpose of earning profits. These are
formed for the motive of earning profit. These are owned by the private owners. Main aim of
private organisation is to maximise the market share so that it can lead the market in efficient
manner. The private company has a separate legal identity apart from its owners. The
shareholders have limited liability according to the amount of shares subscribed by them. The
private company has its purpose for profit motive (Aterido, Hallward-Driemeier and Pagés,
2011). It has its scope defined by its Memorandum and Articles of Association. These documents
guide the scope and beyond which it cannot go.
The legal structure and form of the private organisation is that it has to provide the
documents to the Registrar of Companies by signing all required documents by directors and
owners. After this approval, the organisation can be legally formed and run effectively to satisfy
the needs of customers. The private organisation are restricted to transfer its shares.
Public organisation
They are operated with motive of helping society so that it may be uplifted. It is mainly
for not for profit motive.
The public organisation can be formed same like that of private organisation. It has to file
to the Registrar of Companies the required documents for approval to function legally. After the
approval has been issued, public company can be formed. The public company is formed for the
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purpose to benefit the society as the main aim is to provide benefit to the society. It is does not
form for purpose the perspective of earning profit. Profit motive is ignored in this type of
organisation.
Public organisation can transfer its shares to the public for subscription. If the applicants
are more in number than it is return along with money with letter of regrets to . The applicants
are provided the shares of the organisation. The public company can transfer its shares to people.
Its main purpose is to provide the benefit to people by providing high quality of goods at low
prices. The liability of public company is limited to shares subscribed by people. For instance, a
person who has subscribed 200 shares, then he will liable to contribute only the amount which is
left on his behalf on the shares on the event of wound up of organisation.
Voluntary organisation
Voluntary organisation is formed for the purpose of providing the mutual benefits to the
members only. The members participate in the trusts for their mutual benefit (Aula, 2010). The
trustees form the trust by signing the document known as trust deed. The trust deed limits the
functions of the trust and beyond that it cannot go. The members of the trust are formed for the
activities which provides benefit to them and the society. It can be cancer trust where cancer
patients are cured. They often gain donations from the people for its survival and effective
functioning. They try to help people in various ways. Example, Blood donation trusts
(P2) Size and scope of small, medium and large organisations
Small organisation
Small organisation conducts its business on a very small basis. The employees can be less
than 100 in number. The small organisation has a market share which comprises and depends
upon the nature of the organisation. The profit share of the company depends on its sustainability
in the market. The small organisation runs their business on small scale by providing goods and
services in the manner which satisfies needs of the customers. The sustainability of the
organisation depends on its functionality in the market. The small organisation has a limited
investment in plant and machinery which restricts its profit share in the market. The small
organisation is run for the purpose of providing specific demands and needs of particular group
of customers depending on the sector which it choosers either be manufacturing or service
sector. Organization such as Talent outdoor
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Medium organisation
Medium organisation carry its business much higher level; as compared to the small
organisation. The number of employees can be more than 100. The size and scope of the medium
organisation depends on the level of investments in plant and machinery employed in the
premises. This is required so that it may earn profits by satisfying the customers (Belás and et.al ,
2015). The profit share of medium organisation is more than the small organisation as the level
of investments is much higher in it. The market share also depends on the investments approach
and the satisfaction of consumers. The sustainability depends on the nature of the business an
enterprise run. The manufacturing concern will have different nature than the service concern.
Organization such as Virgin Atlantic
Large organisation
The large organisation carry its business on large basis. It has more than 200 employees
and there is no limit to maximum. The large organisation competes with other organisation to
gain and increase their market share. This helps them to be effective enough so that they may
satisfy the consumers. The profit share is also more than small and medium organisation. The
level of investments in plant and machinery and modern equipment is also more. As a result, it
earns good quantum of profit that eventually maximises its profit share in the market. It becomes
ahead of its competitors. The large organisation has a great level of sustainability as compared to
small and medium because it earns more profit and more market share is obtained by it. This
helps to sustain in the competitive market by supplying quality goods and services to the
customers. The small organisation is managed by the owner (Blanchard, Tolbert and Mencken,
2011). Medium organisation are managed by owners and professionals while large organisations
are in the hands of professional personnels. Decision making is solely with the owner, medium
organisations, decisions are in hands of CEO (Chief Executive Officer). While in large sector,
decisions are in hierarchy structure from top management. Organization such as Oxfam.
(M1) The way structure, scope and size impacts the objectives of organisation
The structure of the company plays an important role as it defines its activities to
undertake so that it may flourish in the market. The coca cola company has been successful in
accomplishing its set targets in effective manner by satisfying the needs of the customer
worldwide. The scope of the company is wide enough to undertake the objectives of the
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organisation so that it may satisfy the demands and requirements of customers in the effective
manner. The scope of the Coca Cola company is wide as operates worldwide.
The scope of the company is wide as it provides its products to 200 countries. It makes it
more vibrant in the manner which makes and produce more profit to it. It size is also large and its
accomplishes the objectives in effectual manner.
(P3) Different functions of Coca Cola and their link with objectives and organisational structure
The organisation has to integrate its functions with the structure of the firm. Coca Cola
company provides effective drinks to the customers worldwide. It does efficient because of its
effective functions. The functions of the organisation can be categorised as finance, HR,
marketing and IT. The HR function deals with hiring efficient employees so that they may
undertake assigned tasks in effective manner. Marketing department has the task to promote the
products of Coca Cola company liker diet coke and many more. It involves making effective
sales and maximising revenue. The finance function incorporates budget for various departments
and effectively manages the income and expenditure in company. It also prepares financial
statements of company. IT department is concerned with maintaining website of company and
providing information to consumers in effectual manner which provides speedy sales to
company. These all functions are used by company so that it may establish well defined structure
to achieve its objectives in the best possible manner. It also improves the productivity of the
organisation in effectual manner by setting targets for each department to carry out its functions
in effective manner.
The organisation structure aims to meet demands of the customers. The organisation
structure may be built around like function, product and process (Chavis, Klapper and Love,
2011). Function structure reflects main functions like marketing, finance and production. Product
function reflects the different types of product like beverages of carbonated form, diet coke, coca
cola vanilla etc. Process function depends on product undergone under different processes like
manufacturing, storing, packaging and then finally delivering to the final consumers who
purchase it. The Coca Cola company has built effective organisational structure which provides
efficient team work so that it may accomplish its set targets in effectual manner. The integration
of the functions as well as organisational structure provides organisation to achieve its targets in
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effective manner which maximises its sales and increases the customer satisfaction worldwide.
Coca Cola company has been successful in complying with the needs and demands of the
customers that has attained its objectives and reputation in the market. The effective organisation
function paves way for efficient organisation structure. The integration of both organisation
structure and function makes the firm vibrant and the production process of Coca Cola company
can be maximised and it will provide more productivity as there will be clarity to the production
department to produce according to the budget provided by the finance department. As such,
company will accomplish set targets.
(P4) PESTLE Analysis of Coca cola company
1. Political
FDA (food and drug department) controls the beverages which are non alcoholic and
regulate the entire food industry of world. Government set some rules and regulations which
have to be followed. Many changes occur in this industry like changes in laws and regulation
taxes policy which combines of business environment like civil policy, changes of government,
pricing policy etc. It has affected the sales of coca cola in Arabic countries. They have boycotted
it due to some political disputes.
2. Economical-
The inflation rate can changes the prices of products. If the prices are high then people
will prefer not to buy soft drink and if prices are low there will be increase in sales so a uniform
price must be set which will help coca cola to maintain its price in any situation. Lifestyle of
people, standard of living, quality of product is also responsible to bring a change in economy of
country (Commander and Svejnar, 2011). The main issue is cost of labour and raw material has
risen over time, to stop this cost cutting and cost reduction techniques can be used.
3. Social
Most important change that have directly affected sales of coca cola is increasing level of
consumers concerns towards their health issues. Nowadays people are more often preferring to
take low amount of sugar so they are now converting to diet coke. More people around age of
37-55 are becoming health conscious so they are demanding healthier drinks. Any major changes
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in taste and preference of people will affect coca cola profits. New variants like diet, low calories
has also been introduced in market to attract customers.
4. Technological
The new era of technology is now mostly used for marketing the products through social media.
It helps in making advertisement more attractive and effective therefore increasing in its sales
volume. Due to it coca cola has tremendous increase in its machines of production. It has also
helped in easy disposal and reuse of plastic cans and bottles thereby reducing the cost of product
and maximising profits. Coca cola has also set up some new factories in Britain.
5. Environmental- the most important ingredient in making any soft drink is availability of water.
Any change in climate will affect the beverage industry. If they do not follow laws, it will affect
its productivity. Increasing global warming is also a concerning issue. As coca cola uses plastic
bottles which affects the environment and it needs to be disposed it becomes necessary for them
to have a strong environmental policy and laws (Fernando, 2011).
6. Legal-
It is a micro environment in which the company operates. They have to follow rules and
regulations of different countries like labour laws, wages laws, etc. it can have a great impact on
organisational behaviour and productivity. In recent times there has been significant changes in
legal laws of many countries therefore coca cola needs to operate according to the laws.
(M3) Demonstrate the application of PESTLE Analysis in organisation
The company can apply PESTLE analysis as a powerful to implement the different
factors which are driven by the competition. Coca Cola company also does this analysis so that it
can be more vibrant in its functioning in effectual manner. The organisation can remove the
political factor which hinders its growth. By complying with the laws that government imposes
to deliver the quality goods to consumers.
(P5) SWOT Analysis of Coca cola organisation
SWOT analysis is important analysis as it helps to identify strengths, weakness,
opportunities and threats of organisation which may impact its functioning.
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 STRENGTHS (S)-
The strength of Coca Cola company is that it is best selling brand of beverages which provides
soft drinks in variety of flavours like diet coke, thums up, fanta, maaza etc. The customers
heavily rely on the products of the company which make sit more vibrant and can maximise its
sales by satisfying the customers demands in effectual manner.
 WEAKNESSES (W)-
The presence of traces of pesticides have seriously damaged the brand image of the company
which has adverse effects on its sales and revenue (Coca Cola SWOT analysis, 2014). This has
caused the organisation's reputation in negative manner. The competition from the another brand
Pepsi-co has divided the market share of the company which highlights its weakness.
 OPPORTUNITIES (O)-
Increasing its reach to undiscovered regions is the opportunity to Coca Cola company. It can
reach on to more people by exploiting various regions which are untapped by the company to
maximise its sales. It can diversify and expand its market to produce and manufacture snack
products so that it can compete with the Pepsi-co brand. As a result, it can increase its market
and profit share by stepping in other products. Acquiring other companies can lead the path of
effective foundation of more productivity to the organisation. It can acquire small companies
which are producing similar products. The employees will be maximised and more strength will
be provided to the company. It will lead to economies in scale.
 THREATS (T)-
People are becoming health conscious as a result they are become aware of not using the aerated
drinks. The conscious among people will lead to decrease in the market share of the company
and will reduce their revenue in totality. The company is not able to comply with the laws and
regulation in some country. As a result, government may impose restriction to function in
concern country which is a serious threat to the company.
(P6) Discuss how strengths and weaknesses inter relate with external macro factors
Introduction-
Strengths and weaknesses of organisation are highly affected by macro factors which
include political, social, legal, economic, technological as well as environmental factors. These
all factors are summarised below:
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1. Political factor-
The Coca Cola company operates in worldwide market. As such, it has to respect the
different rules, regulations and laws of many countries. If it defaults in complying with the rules
then it may put itself in serious threat. The company has to function according to the rules of the
nation. The political issues in a country can affect the sales of the company (Gecevska and et.al ,
2010). The Food and Drug Act laid down the rules to be followed by the company so that it may
provide quality of goods to customers in effective way.
2. Economic factor-
Inflation in the country can affect the sales of the company. Consumers will not prefer to
buy the goods which are of high prices because of inflation prices rise and consumers hesitate to
spend the income on the non essential goods. As a result, revenue gets affected.
3. Social factor-
The social factor also has impact on the company. The consumers are health conscious
nowadays as a result it affects the sales of the company because they hesitate to buy the aerated
soft drinks which deteriorates their health.
4. Technological factor-
The modern equipments are also affecting the sales of the company (Laumer, Eckhardt
and Weitzel, 2010). The company when produces the goods with the modern machines then
speedy and effective production takes place. And if the company has insufficient technology in
some country then will affect the sales of it.
5. Legal factor-
Legal factors are effecting the company as a result, it has to obey various laws and
regulations of the particular country to remain effective in its functioning.
6. Environmental factor-
Nature is essential to every country. Coca cola company has to be efficient so that it may
disposed off the plastic containers as it affects the environment in negative way. These all factors
should be kept in mind so that company can perform in effectual manner.
(M4) Carry out SWOT analysis result and justify how it helps in decision making in organisation
The SWOT analysis helps company to carry on its working in effective manner. By
analysing the strengths, weaknesses, opportunities, threats, it can conquer well in the decision-
making process. By analysing the weakness and threat, Coca Cola company ensures how to
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eliminate them so that decision can be made with well structured strategies, it will help
organisation to achieve its objectives within stipulated time (Miletić and Božilović, 2016).
CONCLUSION
Hereby it can be concluded that the organisation has to function efficiently so that it can
conquer its objectives and goals. There are different types of organisation like public, private,
voluntary which has various sizes and scope depending on its nature. The organisation has to be
legally formed so that it may function effectively. The organisation is small, medium as well as
large according to their level of investment in plant and machinery. The company has to be
effective so that it may attain the objectives in different regions which are yet to be discovered
by it. The political and economic factors plays vital role inn its working in countries.
REFERENCES
Books and Journals
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2016. System and method for transforming a component business model. U.S. Patent
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growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp .609-647.
Aula, P., 2010. Social media, reputation risk and ambient publicity management. Strategy &
Leadership. 38(6). pp .43-49.
Belás 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.
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.
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Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp. 486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp .309-337.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Gecevska and et.al , 2010. Product lifecycle management through innovative and competitive
business environment. Journal of Industrial Engineering and Management. 3(2). pp .323-
336.
Laumer, S., Eckhardt, A. and Weitzel, T., 2010. Electronic human resources management in an
e-business environment.Journal of Electronic Commerce Research. 11(4). p .240.
Miletić, V. and Božilović, S., 2016. ANALYSIS OF POSSIBILITIES FOR IMPROVING
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Online
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