Business Environment Analysis: Coca-Cola's Objectives & Structure

This report examines the business environment and its impact on organizational functions, objectives, and structure, focusing on Coca-Cola as a case study. It explains different types of organizations (public, private, voluntary) and their legal structures, using examples like Coca-Cola, NHS, and British Heart Foundation. The analysis covers the size and scope of these organizations, the relationship between organizational functions, and the positive and negative impacts of the macro environment. It also includes a PESTEL analysis for Coca-Cola, an internal and external analysis to identify strengths and weaknesses, and a critical evaluation of how macro and micro factors have influenced Coca-Cola's objectives and decision-making process. The report concludes by summarizing the key findings and their implications for business operations.

Business and Business
Environment
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Table of Contents
Introduction...........................................................................................................................................3
Task 1....................................................................................................................................................4
P1 Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures...................................................................................................................................4
Task 2....................................................................................................................................................5
P2 Explain the size and scope of a range of different types of organisations.....................................5
M1: Using Coca-Cola as an example, analyse how its structure, size and scope impacts on its
objectives and the products and services it offers..............................................................................6
Task 3....................................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure..............................................................................................7
M2: Using Coca-Cola as an example, analyse the link between inter-functional relationships and its
organisational structure......................................................................................................................9
D1: Using Coca-Cola as an example, critically analyse how functional relationships have affected
its organisational structure...............................................................................................................10
Task 4..................................................................................................................................................11
P4 Identify the positive and negative impacts the macro environment has on business operations,
supported by specific examples.......................................................................................................11
M3 Using Coca-Cola as an example, demonstrate how it applies PESTEL in its operations...........12
Task 5..................................................................................................................................................13
P5 Conduct internal and external analysis of specific organisations in order to identify strengths and
weaknesses......................................................................................................................................13
Task 6..................................................................................................................................................15
P6 Explain how strengths and weaknesses interrelate with external macro factors.........................15
M4: Apply appropriately Coca-Cola’s SWOT analysis result and, justify how they might influence
Coca Cola’s decision making..........................................................................................................16
D2: Using Coca-Cola’s example, critically evaluate how macro and micro factors have influenced
its objectives and decision-making process.....................................................................................17
Conclusion...........................................................................................................................................18
References...........................................................................................................................................19
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Introduction
The environment consists of factors that are totally external as well as beyond the control of
individual industrial enterprise along with their management. The environment includes the
diversified factors outside the firm which assist in attaining the diversified opportunities for
or threats to the firm. There are diversified factors which are important and essential of the
sectors include competitors, socio-economic, technological along with the government.
Business Environment is dynamic in nature and that implies it continues evolving. The
business condition is perplexing and multifaceted in nature which affects the survival and
development of the business. In this report, Coco-Cola, NHS and British Heart Foundation
are to be taken to carry out the research. In this research, different organisations need to
explain by using their purposes and legal structures. Along with this, explaining the need to
provide to analyse the interrelations the link to its objectives along with the organisational
structure.
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Task 1
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.
The organisation is a group of individuals who are working together to attain the goals and
objectives. It is categorised into different parts of private sector organisation, public sector
and voluntary sector organisation.
Private sector businesses are owned as well as run by the private individuals. The main
target of this organisation is to increase profit and growth as well as need to enhance market
share. The employees of private sector invest their own capital and need to make a decision
and provide the consumer goods to the people. An example is Coco-Cola and this company
having an aim is to maximise their profits at the time of maintaining a long-term sustainable
growth with the beverage industry. The legal structure of the company is a partnership as it is
an agreement between two or more people (The Carbonated Empire, 2018).
Public sector organisation is owned by the central or state government. It is allotted by the
administration treasury or spending plan of the business. This organization runs more cost
and enhance the nature of administrations. The case of this is NHS and the principle point of
the organization is to deal with the social goals as opposed to benefit. Alongside this, to make
work openings (NHS, 2018).
Voluntary sector organisation as these types of business entity is owned by members on a
voluntary basis. The goals and objectives of the voluntary sector include protection and
development of children. To provide the educational facilities. The example of this is British
heart foundation which provides a lot of financial support (British Heart Foundation, 2018).
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Task 2
P2 Explain the size and scope of a range of different types of organisations
The size along with the scope of the business entity vary accordingly. The best size of the
company is that where employees can work according to the organisational culture.
Coco-Cola is the largest beverage company in the world and employs the 146200 people with
the 275 partners. Along with this company having more than 2.8 million vending machines.
This company is a valuable brand. Coco-Cola owns the 500 diversified brands. Along with
this, the company is selling more than 3500 diversified beverages from sodas, juices,
packaged waters along with the sports drinks. The scope of the company is that no other
companies come close to matching and reach to the global marketplace on the hearts and
minds of consumers in the whole world (The Carbonated Empire, 2018).
NHS refers to the National Health services which are founded in the year 2013 by the British
Regulatory Bodies. NHS is a public organisation and the main aim of the company is to
improve the health of patients and fulfil all the requirements. Along with this, communities
need to provide the innovative along with the excellent services (NHS, 2018).
Another company is British Heart Foundation is a voluntary organisation which is established
to offer the social services to its clients. The unique feature is to identify the best and unique
strategy for offering the treatment to the clients.
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M1: Using Coca-Cola as an example, analyse how its structure, size and scope impacts
on its objectives and the products and services it offers.
The goals of Coco-Cola company are very straight and specific as well as it includes the
offering of the products at the maximum outlets. This will assist in increasing the brand
association with the reputed fast foods. The company assist in ensuring the safety along with
the health of the consumers by investing the sweeteners. The company provide the effective
services to the consumers. The main aim of the company is to maximise the profits by
maintaining the sustainable growth of the industry for the long term. The organization begins
by assembling the concentrates alongside the syrups which are circulated to packaging
accomplices by keeping the responsibility for brands. This business substance incorporates
the promoting exercises which incorporate print and TV publicizing and in addition bundle
plans (David, 2014).
NHS is the public company and it is controlled and managed by the government. The main
objective or aim is to attain the profitability in the business by increasing or maximising the
productivity. British heart foundation is linked with the objectives and this foundation
provides the heart treatment to the patients effectively and efficiently. This assist in
improving the individuals. The products and services are offered by the company to the
consumers which help in attaining the goals and objectives. Charities raise the funds by
conducting the programmes.
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Task 3
P3 Explain the relationship between different organisational functions and how they
link to organisational objectives and structure.
Organisational functions of the business are the key specialisms which assist in dividing or
categorising the work into different sections which include marketing accounts, research etc.
This assist in fulfilling the responsibility of managers. This help in defining the role of the
individual as well as help in determining the authority. There is the diversified type of
organisational structures include functional structure, divisional structure or matrix structure.
Coco-Coal is following functional organisation structure as a company (Ingram, 2018). The
marketing department of the company is responsible for the market research as well as
market planning. This assist in fulfilling the consumer requirements.
Figure 1: Organizational Chart of Coco-Cola
Source: (Juliegilhuly Wordpress, 2014)
The main objectives of Coco-Cola are that it is more focused on efficiency than the
effectiveness. The organisational goal is to maximise the profits for the shareholders by
selling Coco-Cola products to the wide range of consumers. This assist in increasing revenues
by limiting the expenses. Each division of the company having the vice presidents which
control all the sub-sections of the company. The functional organisation structure is effective
and efficient for Coco-Cola. This assist in operating the same way as well as aid in selling the
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same brand products (Jiliegilhuly Wordpress, 2014). The mission of Coco-Cola is to refresh
the world and inspire the moments of happiness. Along with this, it is necessary and essential
to create the value and make the difference.
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M2: Using Coca-Cola as an example, analyse the link between inter-functional
relationships and its organisational structure
If the manager of Coco-Coal needs to do an effective production of the products, then for that
they require the effective funds and for that, they have to contact the finance department. To
conduct the research of the market, to identify and analyse the requirements of consumers,
funds are required and for that, they need to contact with finance department as well. If the
manager needs to do marketing of the products then also funds are essential. It means in each
and every department, finance is essential and that’s why each and every department is linked
to each other (Bazil & Janathas, 2015).
The advantages of the functional structure are specialisation which ensures the great division
of labour. The functional structure is more effective as it helps in increasing the performance
of workers by performing the limited number of operations by taking suggestions from
experts. Functional structure help in creating or maintaining the standardisation along with
the specialisation in the diversified fields which assist in facilitating the production on a large
scale which helps in enhancing the production. This structure also having a great scope for
the expansion as compared to line business entity (RMS, 2018).
The disadvantages of the functional structure are that it creates conflict among the staff
members on some certain issues which lead to non-performance. This structure facing
difficulty in fixing the responsibility because of diversified authorities. This structure also
having a lack of coordination (RMS, 2018).
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D1: Using Coca-Cola as an example, critically analyse how functional relationships have
affected its organisational structure
Functional relationships having an impact on its organisational structure. Organizational
structure refers to the relationship between the different functions. This assist in having the
function outsized influence for example sales. The result of an organisational structure having
an influence in a way for the overcompensates. The main aim of the business entity is to
maintain all the functions of the business entity to maximise the profit. This function is not
limited to the private sector but on the other hand, it should be applied in the public sector,
private along with the voluntary (RMS, 2018). The different business structures include
corporations, partnership and sole proprietorship. A sole proprietorship is limited to the
amount of investment as it offers the benefits which include lower taxes and managerial
control. Privately limited company help in making the decision which is taken by the private
owner. The aim of this is to maximise the profits so that overall ability and capability of the
company can be increased as well as the decision can be taken. Coco-Cola is the private
limited company. Another is charities as this assist in offering the products and services so
that they can attain the social benefit. British Heart Foundation is the charity organisation
who provides heart treatment.
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Task 4
P4 Identify the positive and negative impacts the macro environment has on business
operations, supported by specific examples.
The Macroenvironment is less controllable and outside variables having an effect on the basic
leadership of the association. In the event that contender changes in loan fees, changes in
social and taste alongside the administration directions. The primary motivation behind this
investigation is to comprehend the conceivable open doors alongside dangers of the business
substance. The positive effect of full scale ecological factors in the business activities which
incorporate an adjustment in the market slant which relies upon the social variables which
incorporate annihilation of the framework in the UK which had a positive effect of shopper
division and in addition a bigger open door with the goal that they can pull in more
customers. The stable financial condition strongly affecting business tasks of Coco-Cola with
the better open door so business can develop in the market by utilizing powerful innovation
(Kenneth and DeFranco, 2015).
The negative effect of full scale natural factors in the business activities incorporates that
political alongside the lawful requirements can be perceived and broke down as a negative
effect which affects business tasks of Coco-Cola. The products need to meet the rules and
regulations which is provided or offered by the government so that they can put on the store
shelves. They have to make the changes in the established laws which may prevent Coco-
Cola from the distributing drinks (Kenneth & DeFranco, 2015).
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M3 Using Coca-Cola as an example, demonstrate how it applies PESTEL in its
operations
Coco-Cola refers to the empire of soft drink as well as serves the consumers around the
whole world. They have to supply the consumers with their soda and it is necessary that they
have to follow the appropriate and effective regulations and fulfil the consumer demands.
Political Issues: The employees of the company need to make changes in their established
laws so that they can prevent from the distributed drinks. Internal marketing and changes in
labour law having an impact on Coco-Cola.
Economic Issues: The products of the company are distributed in the different countries.
These countries having diversified customs, cultures, tastes as well as desires. Coco-Cola
needs to fulfil consumer requirement by introducing new products so that consumers can
accommodate.
Social Issues: Coco-Cola is the company which distributes the majority of the products only
in the cultured countries. This company meets the demands of the consumers (Ho, 2014).
Technological Issues: Coco-Cola has adopted social media technology as it is the best way
to connect with the audiences.
Environmental Issues: Coco-Cola is affected by the accessibility of water. Water is the main
element for the development of soft drink (Gupta, 2013).
Legal Issues: Coco-Cola need to retail all the rights which are associated with their business
and this includes products which are improved with a patented process.
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