The way in which Coca Cola managed to retain its profits was surprising. This rapid growth was attributed to three pioneers sectioning off the country into territories and selling bottling rights to local entrepreneurs. Thus the company has understood to succeed in the market it has to first understand the liking and demographics of its customers and accordingly bring new product innovations to maintain and target new customer base. Besides, the taste of coca-cola is unique that its competitors have never found it easy to replicate. Recently, the brand increased the number of low calorie or calorieless options in its product portfolio.
The Effect of External Environment on Internal Management Strategy. Arguably, Coca-Cola is the most recognized, most popular, as well as the biggest-selling soft drink in history. However, Coca Cola did not make any major strategic move to beat the competition. Coca Cola promote their product as a strictly non-alcoholic beverage. For example during the sports season the demand for soft drinks increases.
Following are the major departments, which should be addressed in order to undertake an internal audit of a company. Coca-Cola being a non alcoholic beverage company falls under the category of Food and Drug Administration. All told, we anticipate these transactions will bolster the top and bottom lines immediately. Economies of scale allow the company to share its fixed costs over hundreds of brands and billions of servings, making each drink as cheap as possible. Many things will be taken into consideration such as entry barriers for the firm, competitors and their goods, as well as the structure of the overall industry. According to the company, the company serves 1.
Coca-Cola has managed its external environment so as to effectively compete with its rivals such as Pepsi and Miranda among others. Last accessed 27th Feb 2014. Simultaneously, Cultural factors are of significance. Sourcing Sustainably: Coke Takes Leadership Role to Protect Land Rights of Farmers and Communities. Coca-Cola Lifts Profit, but Shares Close Down.
Retrieved from Cnn: Opedare, A. They aim to achieve this goal by 2020. Today, consumers are becoming more and more health conscious. It has continued to make major investments in marketing and advertising as well as customer engagement. Another very important consumer trend that should be noticed by Coca-Cola is the increasing population of Hispanics in the United States. The company operates in different countries over the world and hence renders. It reminds them of days past and when Coca Cola changed the recipe, they were upset because they felt Coca- Cola was stealing something from them, perhaps their memories.
Coca Cola needs water in very large amounts for production, but its availability is limited. This was the time when Coca-Cola got a green signal from Indian customers. But gradually coca-cola is gaining its market size by setting up its own bottling plant and distribution network Fahad, 2013. Age is a factor that is relevant as the organisation has to obey by certain laws and regulations for example by advertising to children, it is deemed unorthodox and morally wrong. We own or license and market more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Thus to gain a competitive advantage Coca-Cola has also started diversifying its products like bottled drinking water and juices to increase its profitability.
And when a coke owned chain asks you Which Wich? Organizing sets the company up on how the goal will be completed. Technological : Technology is an important factor for the large businesses like Coca Cola. The various economical factors like inflation rate, employment and unemployment rate, wage rate, standard of living helps the company in taking decisions related to future investments. Globalization was a factor that has influenced Google and vice versa. Examining the four management functions planning, organizing, leading, and controlling and in what way the functions are shaped by internal and external factors. Coca Cola is making major investments in environmental issues and water stewardship. Social factors One of the most important social factors that influence Coca-Cola Company is that more and more people are practicing healthier lifestyle than they used to have.
Some of the ideas that have been funded by Pepsi so far are making school buses more eco-friendly, growing fresh produce at schools to fight childhood obesity and making buildings in cities more energy efficient. Moreover, water management is a key area that requires focus. The rising costs of production and labor resources are also an important threat. Form 10-K for the Fiscal Year Ended December 31, 2017. Social and cultural factors acquire a special importance in that case. The Political factors includes the government agencies, pressure groups, rules and policies like trade traffic and fiscal policies which influences the economy of a country and in turn the operations of the business.
It has got its own ethics and compliance program so that all its associates are compliant whichever part of the world, they are employed in. It is very important to become aware of all of the potential opportunities and threats that may arise from these trends. Liquid Refreshment Beverage Market Accelerated in 2015, Reports Beverage Marketing Corporation. Technological Factors: In beverage industry technology plays an important role in production of the concentrated syrup, packaging of the bottles, filling of the bottles, and distribution of the products. The environmental factors which India is concerned is recycling, depletion of the resources, pollution etc. The Business The Coca-Cola Company, founded in Georgia in 1892 and incorporated in 1919, is the world's largest beverage company. To match the competition from the health drinks, it introduced Diet Coke to Coke Zero Sugar, Fanta Orange Zero, Lilt Zero, Schweppes Diet Lemonade and Powerade Zero.