COCA-COLA: Impact of Internal and External Factors on Business

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Added on  2022/12/29

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This report provides a comprehensive analysis of Coca-Cola's business environment, focusing on both internal and external factors. It utilizes SWOT and PESTLE analyses to evaluate the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors impacting its operations. The SWOT analysis highlights Coca-Cola's brand reputation and market presence while also addressing its weaknesses, such as product diversification and water management issues. The PESTLE analysis delves into governmental influences, consumer preferences, technological advancements, legal compliance, economic stability, and environmental concerns, particularly focusing on the negative impacts of water management. The report concludes by emphasizing the importance of addressing these factors to foster organizational growth and efficiency. References are also included in the report.
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Introduction
Business practices consist wide expansion of major
activities and goals. Business has surrounded and influence
by internal and external factors. The report will be covering
essential factors which have serious impact on business
environment COCA-COLA company by using SWOT and
PESTLE analysis.
COCA-COLA And Its Environment
.
PESTLE Analysis: Macro environment factor covers sentential
points on a business operation. These are mentioned below:
Political factors: This factor mainly influenced by government
interventions over the company. Coca-Cola has negative influence on
company in terms of taxes, labour pays and has ordered to severe
their products on shelves.
Social factors: Under these factor, organisational products must be
as per people demand, culture, beliefs and health concerns. Coca-
Cola has serving positivity through its drink into many countries
which is easily accepted by the customers.
Technological factors: Technological up gradation is necessary in
order to grow into leading market. Coca-Cola have enable their
operation with high effective machinery and follow digital selling
procedure to be informative and innovative into the market.
Legal factors: Legal laws and acts against rights of employees,
Equality and fair treatment is must to acquire for an organisation,
Coca-Cola follow all these rights as well as issued patent on their
production.
Economic factors: Economic stability must be maintained through
organisation revenue in terms of low inflation, money flow, demand
and supply. Coca-Cola has generated minimum revenue from its
parent country and 70% of from other countries. This has impacted
negatively on America as the economy would not take advantage of
company's contribution.
Environmental Factors: These factor put focus on environmental
issues which community could face through production
disbursement. Coca-Cola has mainly disadvantage of environmental
issues through ineffective water management due to which, company
has to go through with huge losses of revenue and customer
satisfaction.
How the company impact
its context External
Environment
Above report has analysis the relating facts towards
internal and external influence on business practices.
These factors must be overcome to generate high
efficiency growth into organisation. Swot analysis is an
effective framework which has concluded the weak and
strong area of the company.Internal Factors
SWOT Analysis of COCA-COLA:
Strengths: : Coca-Cola running their operations since
1892. they have maintained their quality beverages and
drinks which is valued by customers. The company has the
largest competence into the market because if its largest
non-alcoholic existence
Weaknesses: Coco-cola has the main weak point are its
competitor. They diversify their product in many ranges as
compared to coca -cola. The company has faced water
management issues in past years while at the time of
scarcity of water.
Opportunities: Due to its large brand reputation, company
has opportunity to make new product lines and
diversification. They have large supplier management
through which company could maintain their qualitative
products.
Threats: Company facing indirect competitors into
beverage industry. Rising competition causing big threat for
the company. Using pesticides into productions has also
becoming major threat for its low demand of product.
References
Cardwell, L.A., Williams, S. and Pyle, A., 2017.
Corporate public relations dynamics: Internal vs. external
stakeholders and the role of the practitioner. Public
Relations Review, 43(1), pp.152-162.
Deutsch, M.J. and Park, H., 2020. Internal and external
quantum yields enhancement in BDMO-PPV by intense
illumination. Synthetic Metals, 269, p.116548.
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