April 25, 2020
The coca cola company stands out as one of the most successful soft drink company in the world. Its global presences present a great chance for any business analyst to measure all business factors involved in any environment. These business factors include the political, economic social and technological environmental and legal (PESTLE) that affects the business. For coca cola the business environment is affected by the global forces.
The external and internal environment of the business generally affects the operations and success of the business and the success of coca cola can be attributed to effective and efficient management. The political environment is quite dynamic especially the global one; the establishment of the business globally has been faced by numerous challenges from the different governments in the different countries. They have to uphold all standards of the government set in every country including taxation regulations.
The economic environment has been faced by issues in the local, national and international environment. The major effects are such as inflation and recession. There is also presence of regional markets that bring about regulations in investments. Though such regional blocks increase the markets they also set economic regulations that affect the investments of coca cola. The coca cola brand has been a major brand and has continued to dominate the markets and thus the company has had a good marketing strategy.
The social system in the globe has also been affected by coca cola. Coca cola has been a household name in many countries. It has been a lifestyle and this can be seen in their advertisements such as open happiness. Its soft drinks brands have been consumed more than other brands and thus have increased its revenues. Most of its consumers are 37 to 55 who are the majority of the population and pass on the hype to other populations.
Technology is also a major influence, the soft drinks company must be able to apply the best technological processes to manufacture the drinks and also link the management processes such as distribution to ensure there is efficiency.
The Coca Cola Company has three levels of management where the executive is the board of directors. There is also the operating group management and leadership which is divided in the major regions of the world. They include Eurasia & Africa Group, Europe Group, Latin America Group, North America Group, Pacific Group, Bottling Investments Group and McDonald’s Division. The third is the functional leadership and management part; it includes administration, global business and technological services, social and people officers, strategy officer, financial, supplies, science, global community connections, business integration, sustainability officer, information officer, marketing and commercial officers, customer relations, and products integrity officer. The company mainly operates sits business through franchise of other brands. This is where it acquires other brands and gets to sell them through its major brand name or systems of distribution. This happens in many regions making it possible to acquire more brands that affect the local people. The company is focused on its missions that are “To refresh the world… To inspire moments of optimism and happiness… and to create value and make a difference”. The company also has a great vision to serve the people, planet, portfolio, partners, profits, and productivity. The company offers internships for the various departments which gives the people a great experience to serve the company. It also has great careers for professional that go through a rigorous screening process to ensure they deliver once they are on board.
Change is inevitable especially because the business environment is dynamic; this means the company must be ready for any change and make sure that it works in their favor. The management is very strategic in that it is able to manage any change in the company in view of the fact that every functional department aims at perfecting the systems. Drastic change is not always advisable and there is always research in the company in any prospective change. This allows the company always moves towards the paradigm shift of society.
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