Business Environment Analysis: Coca-Cola's Strengths and Weaknesses

This report provides a detailed analysis of Coca-Cola's business environment, examining its internal and external factors. It begins with an introduction that highlights the importance of understanding the competitive landscape and the factors influencing business functions. The report then delves into various aspects of Coca-Cola's operations, including the types of enterprises, organizational functions, and the impact of the micro and macro environments. The report utilizes tools like SWOT and PESTLE analysis to assess Coca-Cola's strengths, weaknesses, and the influence of external factors such as political and economic conditions. The analysis also explores the relationships between different organizational functions and their impact on the company's performance. The report concludes with a summary of the findings and references to the sources used.

UNIT 1 BUSINESS ENV

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of enterprise and their purposes .............................................................................1
P2 Scope size and various range of of different firm ............................................................3
TASK 2............................................................................................................................................5
P3 Relationship between different organisational functions. ................................................5
TASK 3............................................................................................................................................6
P 4. Influence of micro environment and their positive and negative impact .......................6
TASK 4............................................................................................................................................7
P5 Analysis of external and internal environment and strength and weakness of Coca Cola 7
P 6. Relationship of strengths and weaknesses with macro factors ....................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
It is important for an organisation to understand competitive environment of their
business activity. Management has to understand different elements which influence different
functions in business environment. Some of the factors in business markets are cost of goods,
arrangement, positioning, inventory, transportation, risk and management, working culture,
standard etc. so developing of every business depends upon managing of these prospects.
Managing internal and external factors of organisation aid to perform better in their business;
some of these factors involve government, supplies, social, technology etc. which are considered
for making efficient business. The current report focus on Coca-Cola and their companion on
different factors. Coca-Cola is a beverage company doing business successfully since 1886.
There will be further discussion on scope, size and legal structure of company (Chavis, 2011).
Apart from this, assessment also provides various effect on micro and macro environment with
different marketing tools like SWOT, PESTLE which analyse different activities and its effect on
business environment.
TASK 1
P1 Types of enterprise and their purposes
Based on purposes and size of of any organisation they are divided into different sectors
which are classified as Public, Voluntary and Private.
Public sector: All those enterprise who works and controlled by government and their
policies comes under this sector. Companies in this sector tend to manufacture products and
services for public and make them available at cheaper rate. It concentrates on providing benefits
to all sectors and community in several geographical region (Iskanius, 2010). UK is known as a
hub for several Public sector companies.
Purpose – Main target of this organisation is to provide services to common people.
They are different from private company who wish earns more profit from their business
activity.
Legal structure – Administration and business activities of an organisation are
categories on the basis of state government, central government and local governing bodies. That
has been mentioned below.

 Central government- It covers all administrative bodies in entire nation. It can influence
decision making of all government bodies of a specific country. The planning and
execution are based on national interest and profit (Trkman, 2011).
 State government – It follows instructions and policies of central government. They
have authorities to make certain changes in policies according to their needs and wants.
 Local Government – It includes different types of governing bodies who work in the in
the interest of local people.
Private sector - In this type of business venture the entire company is owned by a single
person only. In this type of venture government do not play any active part in commercial
activities of their business (Welford, 2013 ).
Coco- cola is a leading company in the world of non-alcoholic beverages. They are
dealing many different varies of non-alcoholic breakages to other sparkling breakages products
that includes enhanced water, juice drinks, ready to drink tea and several sports and energy
drinks. They have their own freedom to choose markets, sellers and distributors. The company
has a very effective growth rate policy. By the end of 2016, their total assets were around 8727
USD Dollars that keeps on growing in business market.
Purpose – The main intent of company is expand their business deep in Asian and
African countries and increase manufacturing and production of soft drinks and juices in
different business market.
Legal structure – Legal structure in private sector is separated into different functions
that includes sole proprietorship , franchise, partnership etc. Coca-Cola was founded by John
Lumberton and bought up and run by Asia Giggs Candler.
Voluntary sector – This sector id different from private and public organisational
structure. This sector includes all those companies who voluntary wants to contribute in social
services to citizens of country (Storey, 2011). These company wish to contribute in fulfilling
basic needs of people like food, shelter, clothes, water and many other basic requirement of poor
people. Wellcome Trust is the largest contributor in voluntary sector with expenditure of
£m799.8.
Purpose – The main purpose of this sector is to fulfil basic social and economic
requirement of different community in need.
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Legal structure – It is a well-defined levelled structure of an organisation having defined
role for each level of management.
P2 Scope size and various range of of different firm
Different organisation have different scopes, size and motives in performing their
business activity. Various scopes and sizes of different firms are given below:
Private segment – Private company are solely controlled and maintained by a single owner
only. Functioning and proceedings of that company are solely monitored and and controlled by a
single person. Privately owned company have a primary to increase their manufacturing and
revenue. Certain size and scope of private companies are mentioned below:
 Sole proprietorship- In this type a single person is responsible for planning , setting and
working of a business. The single person is solely responsible for profit and losses and
risk and uncertainty of their business activity.
Scope – They have scopes to increase their business in different geographical market and make
profit accordingly.
Size – They are having small size business, stores and employees.
Partnership - It is a type of business activity where two or more two partner share their
business activities, area of work, profit and decisions.
Scope- Different partners tend to make joint ventures with with their innovative ideas and new
thinking. They tend to share their experience, skills, knowledge with each other for successful
working of their venture in business place.
Size – It is a medium size business activity that is controlled by one or two owners.
Stakeholders linking with company – There are different shareholders who are associated with
business activities of organisation that have been mentioned below:
 Employees – Employees must perform their daily duties in organisation on daily basis.
Proper planning of daily work and managing them will help in better coordination
between different department and employee. Batter coordination between employees will
generate positive environment in organisation that will provide them opportunity to grow
in internal and external environment.
 Consumers – Customers demand and expectations are important aspect for growth of an
company. Coca Cols deeply analyse different market and record wishes of customer and
make changes in their product accordingly to increase their sales
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 Owners – They offer asserts and other products that are necessary for running their
business in effectual way. It includes different elements like machinery, premises, raw
materials and commodity.
Public sector corporation scope and sizes – These firms are legal bodies that are controlled and
maintained by government. It is mandatory for these organisation to follow rules and regulation
of government in their business .
Stakeholders in public organisation-
 Government – Several legal bodies in government organisation are meant to monitor
different activities of public organisations. Government is meant to enact certain laws as
per requirement which help in better flow of working of private sector organisations.
 Society – For making profit business and and kept business activity on right track
company must follow social ethics in their business policies (Osterwalder, 2011). Coca
cola have a strict policy to invest in non alcoholic drinks only, they have stick protocols
and business ethics to concentrate on aerated drinks which can be accessed by majority of
people in all over the world.
Voluntary sector's size and scope – It is medium size charitable association who contributes in
doing social work. These organisation basically contains NGO and social groups who works for
the welfare of people. Oxfam is a famous social service company mainly focus on providing
service poor, old and small children. Main of different organisation are mentioned below.
 They take some measures for upliftment of poor and offer basic services to poor and
weak people in organisation.
 These organisations helps in restriction of criminal activities and exploitation against
labour, corruption and exploitation of poor and weak people. \
Stakeholder for these firm -
 Voluntary company have board of members who plan to increase their ventures.
 They collect large amount funds or revenue from national charitable trust, doner and
different foundations from all over the country.
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TASK 2
P3 Relationship between different organisational functions.
All commercial organisation maintain relationship in their internal organisational
structure with different department and different external operative structure. For achieving
company's goals and services employees plays vital role by utilising their skills and knowledge
to good effect. Coca Cola has an modified and well define organisational structure where all
employees are know their work and utilise their skills to a good effect. Different department
coordinate with each other in an effectual way that has been mentioned below.
 Research and Development Department: It is considered as pillars of Coca Cola over
the years. Their main aim to develop new product according to need and want of
customer in business structure with implementation of scientific procedures.
Implementation of innovative ideas in product increase customer bases and productivity.
This department is also working in monitoring flexibility of their product in market and
provide flaws and other negative aspect from product (Gecevska, 2017).
 Marketing Department: For developing base, brand, productivity in business marker
promotion plays a very vital role. By better planning of advertisement activity will hemp
them to increase their grass roots in different geographical destination. Coca Cola is
having well defined structure for promotion their business in ingredient geographical
areas . They are using printed media like news paper, brochure etc. also in current in
business environment they are using digital market to good effect (Chesbrough, 2010).
Company has increased their reach in south Asian country by sponsoring different
sporting event and and broadcasting their advertisement through television.
 Production Department : It is about development of product according to market. For
gaining profit from business market innovation is an important aspect. So company must
implement new ideas and changes to attract people to buy products of their company.
Coco cola was initially investing in only one type of product but they are also taking
initiative to modify and enhance their product and launch new product in different
business market
 Human Resource Management Division: A manager is responsible for maintaining
internal environment of organisation. They must have productive and innovative idea in
increasing productivity of their product. Person in -charge or authority make sure that
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workforce is having all adequate skills and ability to help company to achieve specific
goal and target in desired time frame. They must plan adequate training and development
session for employees to be upgraded with current current demands and skills required to
achieve them
 Finance and Accounting : This id regarded as major backbone of firm. Without having
financial base an company cannot execute their business ides and prosper in business
market. Coco Cola is having a strong financial unit, they work significantly in
maintaining and planning budget required for working of company. They have a very
strong investment policy of business activities which reflects in profits and outcomes of
their business activity.
TASK 3
P 4. Influence of micro environment and their positive and negative impact
Macro factor plays a vital role in business activity of an organisation structure. It
comprises of factor and elements that influence business activity of a company. These factors
can negatively and positively affect flow of business activities according execution of strategies
and plans in that market. For evaluating external factor PESTLE analysis is an efficient tool for
observation of external business environment.
 Political factor – Coca Cola is facing several challenges in doing business in UK. Due to
Brexit several government policy will change which may be unfavourable to the cited
company (Klapper, 2011). It is being estimated that new government policies will give
leniency and funding to their small scale company, that will ultimately increase
competition in UK market.
 Economic factor – It is another factor that destruct working of organisational structure.
After going of EU, United Kingdom will have more revenue and finding for their
company. The country will be independent of taking their own decision in trading and
business policies of their company (Cavusgil, 2014) . Due to this future of business
activity of company is almost uncertain. To sustain in business market company must
have an efficient plan to survive and sustain in mew business market.
 Social factor- The factor includes cultural mobilities, cost of living , labour market,
ethnic group, behaviour, attitude and cultural mobilities. The requirement of people keep
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on changing time to time and difference in geographical area so company must have an
flexible approach to fulfil need and demands of social people by having ethical approach.
 Technological factor- This is another factor company must adopt to be efficient in
market for providing better and innovative products. It will help in better management
of workforces and machine for increasing production with less error. For example Cola
Cola is using single production line where they only have to put raw material and
examine the process and machine will manufacture their products automatically. They
are using technology in promotion activity also (Commander, 2011). Company are using
digital medium to each out to maximum number of people. In current marketing trends it
is a cheaper source of medium for promotional activity. Technology has also eased
analysis and monitoring of different aspect of business, it has made difficult task of
analysis and audit much easier.
 Legal Factor- Organisation must follow different legalised factors and standard for
running their business in ethical and legal way. Coca Cola has a different team, they have
a specific role in looking after the legal aspect for organisation (Drucker, 2017). Team
must make sure that company is following all government policies in their internal and
external organisational structure, this will help them to minimise clashes in different
business structure.
 Environmental- Private organisation plan to increase their manufacturing and and
revenue but they must also consider in maintaining better environmental structure.
Increase in carbon content is a global issue (Chow, 2011). So every organisation must
plan to decrease CFCs and other pollutants in their manufacturing process. Company
must also make plan to manage their wastes to decrease pollution in business market.
TASK 4
P5 Analysis of external and internal environment and strength and weakness of Coca Cola
Every organisation have their own strength and weakness. Coca Cola also have different
strength and weaknesses that must be addressed
Strength
 Brand equity
Weakness
 Have strong competitor as Pepsi
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 Valuable country with 79.2 billion
Doller assert
 Global presence in more than 200
countries
 Efficient marketing strategy
 Have strong financial base
 Loyal customers
 Strong distribution network

 Product diversification is very low
 Do not deal in healthy drinks.
 They lack management of water

Opportunities
 They have strong global presence can
make diversification strategy
 Bigger market in developing nation
 They can invest in making packaged
drinking water
 Need of improvement of supply chain
management
 Promotion of lesser selling product in
market
Threats
 Raw material sourcing – suspected
use of large water content and
pesticides
 Indirect competitors.
P 6. Relationship of strengths and weaknesses with macro factors
Business environment and activities are categorised by number of factors and elements in
business environment. These elements can influence both internal and external factor of
organisation. Company's strength and and weakness are depends on how they approach and
handle these elements in business activity. Coco cola is a largest company dealing in aerated
drinks within largest global presence and expander their grass roots in different areas. Their
business activities and strategies are interlinked with each other. Operations and activities are
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more significant for evaluation of individuals and behaviours of organisation (Carroll, 2010).
Different attitude of people towards organisation and other competitive market must be analysed
with efficiency so that company can better perform in external business organisation.
Several factors for must me consider to evaluate functioning and attitude of employees in their
business structure.
Political factor- Political factor working of an organisation in political environment and
views and opinion of people. Management must ensure that they have defined principles, moral
values, and ethical environment of organisation.
Social factor – these factors include people in in that destination. Organisation must have
to deal with different social factors like people, ethnic groups, values and approaches towards
society. Company must have a effective approach to increase their buyers and make better
goodwill and coordination with customer base.
Technological factor – Having innovative ideas and and technology will allow company
to increase their efficiency in increasing production with implementation of new ideas and
approaches in business. Research and development is working effectively to implement
innovative ideas in their business.
Economical – This factor influence both internal and external environment of company
(Cantwell, 2010). The organisation must have positive approach to have their views against
economical approach.
Environmental components – Coco Cola must have views and approaches to respect
environment where they perform their business activity.
Maintaining better relationship with external factor will aid organisation to plan better in
for their business by reducing deputes and conflicts of their business activity.
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CONCLUSION
From the above report this has been summarised that business environment is different
for distinct organisations. Each enterprise operate with its separate goals and therefore has
entirely different structure. It is analysed that before making the choice of business prospect
evaluation of all the option is done so that desired objectives are achieved. The report shows that
be it any organisation there is a direct influence of micro and macro factors and they has to be
followed and kept in mind when carrying out business in a particular country. Lastly, the study
concluded with the effects that external factors has on the internal business of the organisation
which shows how they are interlinked with one another. It is a large area that provides more
exploration in future run
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