Business Analysis of Coca-Cola: Integrated Capstone Project Report

This report provides a comprehensive business analysis of Coca-Cola, examining its internal and external environments. It begins with an introduction and background of the company, followed by a PESTEL analysis to evaluate the political, economic, social, technological, environmental, and legal factors impacting the business. Key issues identified include product portfolio mismanagement, leadership challenges, increasing health awareness, and environmental concerns. The report then proposes the implementation of a change management program based on Kotter's 8-step model to address these issues, including establishing a sense of urgency, creating a guiding coalition, and developing a vision for change. An action plan is outlined, and the report concludes with recommendations for Coca-Cola to improve its business strategies and maintain its market position, referencing several academic sources.

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Contents
Introduction......................................................................................................................................2
Background of Company.................................................................................................................2
PESTEL...........................................................................................................................................3
Issue Identified in Business.............................................................................................................5
Implementation of Change Management.........................................................................................6
Action Plan......................................................................................................................................8
Conclusion and Recommendation.................................................................................................10
References......................................................................................................................................12

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Introduction
The purpose of this report is to enlighten the reader with the information about the business
analysis of the Coca-Cola. The paper highlights details about the business environment of Coca-
Cola in which the company is currently working and evaluation of issues faced by the business in
workplace environment. The company is a multinational organization prevailing in the
worldwide environment and serves to the customers in the food and beverage segment. The
paper elaborates external and internal business environment of the company along with the
elaboration of the issues faced by the company and implementation of change management
program to eliminate such issues. It should be elaborated that being large scale organization the
company face regular need to improve the business model growth and productivity. Given
implementation plan would help the organization in taking the expected strategies into actions.
Background of Company
Coca Cola is organization that initially started off with being a local bottler in the market then
the company expanded its business in beverages segment in 6 countries. The company in
working in the international environment from past 100 years. The company began its business
expansion in the year 1904 as British Tobacco Company. This was the time when the company
aspired to enter in the market of Australian food and beverage segment in 1963. The company
operates its business in Indonesia, Australia, Fiji, Papua New Guinea, Australia and New
Zealand. The company has around 12000 employees working with them in the non-alcoholic
range of drinks. There are 43 warehouse managed by the company and more than 12000
employees working them. The company has owned more than brands under their brand image
(Baah, and Bohaker 2015). The organization focuses on working in dynamic segment of food
and beverages industry and become market leader as well. There are more than 270 million
consumers present with the organization whom the organization is working to satisfying them.
The company aspires to make use of global strategy in the business environment so as to involve
all the employees in the business environment make the organization successful as well (Coca
Cola Amatil 2020). Further, below mentioned is the elaboration of internal environment of the
company using strength and weakness analysis:

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Strength
Strong brand image: the company has dignified brand image in the market that helps the
customers to identify the brand purchase the products as well. The soft drinks of Coca Cola are
most selling drinks in the history of this industry. Thus, long existence of the company and
quality products has helped the company to maintain strong brand image in the market.
Global reach: as mentioned above, the company is company is serving millions of customers in
the business environment on a regular basis therefore; they have attained global reach in the
market. The company keeps on introducing new products on a regular basis and initiate effective
marketing strategies as well due to which the product is informed to the customers and the start
to purchase it as well (Ling 2017).
Weakness
Health Concern: with the emerging market, more and more people are getting concerned towards
their health and drinking aerated drinks does not provide any good to them. The health and
fitness concern among the people has reduced the sales of the company and made them think of
renovating the strategies so as to retain the customers. It is a controversial issue for the company.
Product Portfolio Management issues: the company manages 140 brands under their portfolio
and ‘n’ number of products as well which makes it difficult for the business to organize the
products in the appropriate manner and manage it. Thus, the company need to segment the
products on the basis of the market share and then work on them accordingly (Wang 2015).
PESTEL
Political: the political environment of the nation states that the government is stable and
sustainable as well resulting in which the companies are growing faster in the Australian
environment. The country is a constitutional monarchy with the queen Elizabeth II who is the
head of the state. According to the data of Statista, the country is renowned as 6th largest country
in world with strong alliance with other nations as well. The connection of federal government of
Australia with US initiates stability in the country (Maley 2015).

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Economic: the economy of Australia is known as one of the most attractive feature in the nation.
In the worldwide index, the holds 14th position and 5th position in terms of being the largest
economy in the Asian region in the year 2019. The nominal GDP of Australia in 2019 was
approx. US $ 105 trillion that accounts to 1.7% of the overall GDP of the world. There is present
of free trade market in the nation and rate of poverty is low (Digital Journal 2018).
Social: the social environment of the country involves mixed variety of people living in it. The
social conditions of the nation are comfortable for the people to spend their lives in the nation.
Also, major portion of country is developed but there are aboriginal Australian living in some
parts of Australia. Life expectancy rate of men is 80 and for women it is 84 years. The country
has population of 24 million that is relatively less as compared to population of other nation
(Nordea 2018).
Technological: some major companies like Holden, CBA, NAB etc. require efficient technology
on a regular basis so as to deliver products and services to the customers. Resulting in which,
technology is appropriately available in the nation and the companies effectively make use of it.
It is available to small scale organizations as well due to which the nation becomes competitive
and GDP 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
(Rubin, Aas, and Stead 2015).
Environmental: the environment of the nation is pleasant and the location is extremely beautiful
to visit for the travellers. There are many beaches and mountains for the visitors but
environmental conditions are continuously degrading. The country is facing severe environment
threat because of ill-fated activities of mankind. On such example can be seen through the fire
that caught on the Australia forest. The wildlife is extremely affected in Australia because of this
problem, animals like koala and kangaroos will soon become extinct if not preserved (Williams,
et. al., 2015).
Legal: the legal aspect of Australia states that the nation has effectively formed several rules a
regulations in the environment that protect the interest of consumers and stop the companies
from performing negative actions in the environment. The legal aspects of the country show a

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true and fair view of actions that should be conducted by the companies in Australian
environment considering the Australian laws (Doyle, McEachern, and MacGregor 2015).
Issue Identified in Business
Below mentioned is the list of issues faced by the company Coca Cola due to internal and
external environment of the company:
Mismanagement of Product Portfolio: it is already mentioned above that the company manages a
large brand portfolio which is not easy for any mediocre company to manage. However, Coca
Cola being a multinational organization is still not able to manage the portfolio effectively.
Resulting in which, the company is losing the effectiveness of their star products in the business
and losing its profitability against the competitors as well. Starting from aerated drinks to non-
aerated drink and chips circulated in the market. The company has tapped in every segment of
food and beverages and poor leadership strategies are making it more difficult for the
organization to implement success for the company (Ulman, Cakar, and Yildiz 2015).
Leadership Issues: the leadership strategies implemented by the organization is making it more
difficult for the company to sustain their competitiveness in the target market. Leadership is the
most important thing that helps the organization to implement effective workplace environment
for the company. Poor leadership makes the employees to focus on negative areas and get
dissatisfied as well. The leaders are also unable to retain the employees in the business due to
which they are leaving the organization have started working with the competitors as well. the
leader need to implement strategies that align all the employees in the decision making process
of the company so as to keep the employees interested in Coca Cola business functions (Popescu,
and Iosim 2015).
Increasing health awareness: the health and fitness industry is growing with an exponential speed
which has started to impact the lifestyle of many people in the worldwide environment. The ratio
of people entering in this industry is increasing with an unexpected rate resulting in which is
subsequently reducing the profitability of the company. The company need to manage the health
concern of people prevailing in the business otherwise; they would not be able to retain customer
loyalty as well. Sugary content prevailing in the drinks of Coca Cola negatively affect the health

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of people due to which they do not prefer consuming such drinks even for enjoyment purposes
(Powell, and Gard 2015).
Environmental Issues: Coca Cola is one of the most recognizable brand present in world
therefore, the activities of this company matters a lot to the people. The company is accused to
dry out the water resources of communities with an objective to satisfy their organizational and
product requirement. Resulting in which, the activities of the company is creating a threat for the
world’s environmental condition. Vast subterranean chambers of areas hold water huge
quantities which is regularly being consumed by the company for their money making purpose
which is violating the corporate social responsibilities of the company towards the society
(Hartung 2014).
Implementation of Change Management
By looking at the above mentioned issues faced by the company, it is clear that they need to
implement change management strategies in the business so as to eliminate the problems for
them and maintain the brand image as well. 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. Below mentioned is the ways in which
Coca Cola should make use of this model in their business:
Establishment of sense of urgency: initially, the management of company would analyse and
discuss sense of urgency to implement changes in the business environment. The company need
to analyse the problems faced by the company in the internal as well as external environment that
is stopping them to increase their profitability. As mentioned above, ineffective leadership
strategies and growing heath concern among people is making the organization face severe
threats in the internal and external environment. This is the phase where the company needs to
recognize the need to implement change in the business environment (Pollack, and Pollack
2015).
Creation of guiding coalition: after creating urgency, the management needs to make the
employees understand the need to implement changes in the business and take them into
confidence as well. Coalition would help the organization to implement changes with a faster

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pace and eliminate resistance of employees as well. Therefore, Coca Cola management would
make the employees understand that it is important for them to implement changes so that they
can satisfy the human resource effectively and retain them by offering benefits as well, however,
this can be implemented on if the employees are willing to change the environment conditions of
the business. In this way, the company segregate the employee and provide them differential
work for implementation of change management in business (Teixeira, Gregory, and Austin
2017).
Creation of vision for change: vision for change would help the organization to find the reason
why need to implement and what change they want to achieve through such strategies in the
marketplace. Thus, development of vision for change would provide a clear idea to the top level
management as well as lower level employees with the objective to implement changes in the
business. The vision would support the organization in successfully completing activities and
analysing whether they are in favour or against the company.
Communication of vision for change: Once the change is created in the business then it should be
communicated with the employees so as to help them understand the change expectation in a
better way. Communication of change would let the employees attain support of top level
management in the business environment. Communication would lead to successful
implementation of changes in the environment of Coca Cola as the organization is working on
large scale level (Tang 2019).
Removing Obstacles from business: once the vision is created and communicated in the business
environment, the company needs to build strength in business so that they can successfully push
changed strategies in workplace environment. Under this step, Coca Cola needs to analyse the
factors that can make the organization struggle to implement changes in the business action
success as well. Basically, the company needs to analyse the aspects that could act as a resistance
for the business and eliminate them from the environment. The company need to resolve the
queries of employees under this segment so as to employees the employees and environment
comfortable with the change. Disruption needs to be created in internal environment of Coca
Cola so that external environment reacts to the business accordingly (Hornstein 2015).

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Creation of Short term win: before looking for long term success of the change management
program, the company needs to implement short term wins that would help them achieve long
term growth of change management plan of Coca Cola. The issues prevailing in the business are
not small scale, neither the strategies implemented for change management are, therefore, short
term wins would help the organization to analyse whether their strategies are going according to
the plan or they to develop more changes. Milestones would make it more easy for the
organization to reach to the main goal of the change management program.
Building Changes: once the management of Coca Cola starts to win using their change
management strategies, then the company would build the require changes and make them merge
in the regular activities of the employees. The unfinished business would require more focus
while the short terms win strategies would support the business functions. Thus, it should be
noted that with the help of above mentioned step, the company would be able to successfully
build changes in the business (Calegari, Sibley, and Turner 2015).
Anchor changes in business: lastly, when all the activities are implemented, the company
achieves wins and resistance is eliminated, the company would then start fixing the changes in
the business environment. The business needs to anchor the changes otherwise, the employees
would again get back to their regular business actions and the program would go in vain. Thus,
the business need to fix the culture in such a way that the employees keep on performing such
actions and satisfying the stakeholders as well (Rajan, and Ganesan 2017).
Action Plan
Activity Time Period
(in months)
Manager Growth Objective Concerned
Department
External and
Internal
environmental
analysis
3 Marketing Head Collection and analysis
of useful information
about customers and
trends prevailing in the
market
R&D
Analysing issues 2 Manager Finding issues
hampering growth of
Operations

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faced by company Coca Cola company
Defining audience
and prioritizing
groups present on
worldwide
platforms
1 Marketing Head Determining target
groups and people
Sales &
Marketing
Deciding use of
technology and
resources for
change initiative
2 R & D Head Gaining Resources ( Li,
Robinson, and Oriade
2017)
R & D
Implementation of
disruption in
internal business
environment
1.5 Change Manager Finding right resources
and environment to
introduce disruption in
business
Management
Development of
vision and
initiation of
Kotter’s model
4 Manager Development of vision
for implementation of
change management
Management
Interaction with
potential partners
and customers
regarding
disruption
1 PR Manager Attracting partners to
promote the brand in a
suitable manner
Public
Relations
Training of
employees
1.5 HR Manager Train the employees and
eliminate resistance to
change as well
Human
Resource
Management
Implementation of
marketing mix
strategies to attract
customers in
differential ways
3 Operations
Manager
Implementation of
differential marketing
mix strategies ( Keegan
2017)
Sales &
Marketing

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Implementation of
sales in the right
target segment
12 Marketing
Manager
Implementation of sales
for business
Sales &
Marketing
Generation of
feedback and
analysis to plan
against desired
objectives
1 Marketing &
Operations
Manager
Getting feedback from
customers regarding the
change and its
evaluation with desired
objectives
Management
Conclusion and Recommendation
Thus, in the limelight of above mentioned events, the fact should be noted that the report
highlighted information about the company Coca Cola and evaluation of issues faced by the
organization. The paper elaborated the analysis of internal and external environment of Coca
Cola and analysis of issues faced by the company. Given change management program would
help the company to find out ways to implement changes in the business for good while
eliminating resistance to change. Lastly, implementation plan would complete the strategies by
taking them into action. Further, below mentioned are recommendations provided to the
company for better growth and productivity:
 The company need to implement combination of transformation and situational
leadership strategy in the business environment so as to effectively manage the product
portfolio and resolve the complaint of employees as well. This type of leadership strategy
would help the organization to implement change management activities appropriately
and resolve the conflicts arising among the employees. A strong and influential would
make the employees agree on their terms of working and would develop strategies to
manage business functions based on the external environmental conditions as well.
 Secondly, the company need to change the marketing campaign in such a way that the
employees believe that the products do not harm their body as much as they believe that
it does. Apart from that, the company also need to change the product portfolio and

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produce rich and organic food and beverages in the market. This would help the
organization to regain the trust of customers on their brand.
 Lastly, considering the environmental issues connected with the company, it should be
noted that the business should train the employees to use the resources effectively. The
supervisor should implement waste management activities in the business. Also, the
company should allocate more funds to the Corporate Social Responsibility aspect of the
company.
Thus, the company should implement change management activities to implement above
mentioned recommendations and eliminate issues faced by the company.

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References
Baah, S. and Bohaker, L., 2015. The Coca-Cola Company. Culture, 16, p.17.
Calegari, M.F., Sibley, R.E. and Turner, M.E., 2015. A roadmap for using Kotter's organizational
change model to build faculty engagement in accreditation. Academy of Educational Leadership
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Williams, A.N., Veth, P., Steffen, W., Ulm, S., Turney, C.S., Reeves, J.M., Phipps, S.J. and
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