Understanding the Business Environment
Part A (100w)
Company Name: Coca Cola
Description: The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks. Today, Coca-Cola is consumed throughout the world at the rate of more than 600 million times per day and this figure is continuing to rise. However, Coca-Cola is not the sort of company to live on its past glories; instead it looks to the future as a challenge and constantly seeks new markets and ways of increasing its market share in areas where it currently has a strong presence. It is the world's largest producer and distributor of syrups and concentrates for soft drinks. Products developed by the Company are sold through bottlers, fountain wholesalers and distributors around the globe. Brand Coca-Cola accounts for about 75 per cent of the Company's unit sales volume of soft drinks. The remaining 25 per cent consists of well known soft drinks such as Sprite, Fanta, Fresca, Mello Yello, Surge, POWERaDE, Barq's Root Beer and many other brands. The Company's soft drink operations are managed in 6 Groups: North America, Latin America, Africa, Greater Europe, Middle/Far East and The Minute Maid Company (the world's leading marketer of fruit juices and fruit drinks).
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Task 1 – Organisational Purpose (150w)
The Coca-Cola Company has a Separate International Division Structure because its international staff operate separately and in isolation from head office. It has various divisions in all continents around the world with presidents that control each continental division. Coca-Cola has 5 continental divisions. * Eurasia & Africa Group
* Europe Group
* Latin America Group
* North America Group
* Pacific Group
Each Continental division has vice presidents that control sub-divisions based on regions or countries. This structure is efficient for Coca-Cola since it is a very large company.
Coca-Cola is as an ethnocentric MNC because its domestic operations are very similar to its international operations. Regardless of the country or region, Coca-Cola operates the same way and sells the same brand and type of soft drink. The company has tight control over its operations from head office.
1.2 Describe the extent to which your chosen organisation meets the objectives of its different stakeholders (150w) A stakeholder is a person, group, organization, member or system who affects or can be affected by an organization's actions. According to the president of Coca Cola -- Muhtar Kent, "When we look at what has worked best for us over the past 125 years, it has not been about a single big-bang product innovation, a new marketing breakthrough or a bullet-proof business model. The secret to our secret formula has always been the power of the relationships and partnerships our people have forged all around the world."
The main external stakeholders are:
International Union of Foodworkers (IUF)
The semi-annual meetings, in addition to ongoing communications, provide a forum to discuss a variety of labor relations matters. The internal stakeholders of coca cola are:
(a) Employees. Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities (b) Investors. The providers of risk capital and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to help them determine whether they should buy, hold or sell. Shareholders are also interested in information which enables them to assess the ability of the...
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