The Coca-Cola Company's Environment Factors - Research Paper Example

?Environment Factors Paper The Coca-Cola Company is the world leading company in the production of soft drinks. Unlike most of its competitors, Coca-Cola has successfully marketed its different brands of soft drinks around the globe. Currently, the soft drink referred to as the Coke is the most preferred drink in different countries around the globe while Coca Cola has become a household brand. Although the company can be categorized among the world most successful companies such as Apple and Toyota, Coca-Cola had overcome various challenges to reach its current position. A company is regarded as a successful company due to its ability to overcome different challenges that affect it. A business environment is the collection of factors that affects the operations of a business. Business environment can further be categorized into external and internal factors. The success of a company is evaluated by its ability to utilize its business environment. This paper will, therefore, analyze the business environment of the Coca-Cola Company. The Coca-Cola success story begun in Atlanta, Georgia, before the drink became a major drink in the global market (Stonebtb, 2010). Venturing into the global market created a new set of problems for the company that could only be overcome through an appropriate combination of various factors within its business environment. Global marketing involves complex processes due to the number of parties involved in the distribution of goods and services. Global economic interdependency is viewed as a remedy to the complexity of international trade. Currently, Coca-Cola has associate firms in different countries that market or produce Coca-Cola products. This phenomenon is a form of international interdependence. International interdependence is, however, subjected to international business law and restrictions. Most countries have laws or policies that are aimed at protecting local businesses and industries. These laws are meant to create a balanced relationship between foreign companies and the mother company. Global interdependence has also contributed to the growth of the Coca-Cola Company by enabling it to acquire a firm foundation within host countries. On the other hand, trade practices and policies regulate relationship between beneficiary firms and the mother company by ensuring equitable distribution of proceeds. Demographic and physical infrastructures of a firm have a great impact in the development of a company. Currently the company has various brands that are associated with different demographic groups within a given society. Different packaging and flavors of soft drinks produced by the company identifiy these brands. The company has different packaging for various groups within the society. Different packaging and brands names are also associated with different genders within different societies. Consequently, different flavors of soft drinks produced by the company define the demographic characteristics of the consumers. These demographic infrastructures strengthen the company’s brand. In addition, the company demographic infrastructure creates or enables the customers to identify themselves with various brands that the company produces. Coca Cola’s physical infrastructure includes production facilities and units in different countries across the globe. The company has also a satellite connected communication facility that alleviates global communication and networking. Due to its scope of operation, the company considers culture as an important aspect of strategic management. The company markets its products across different cultures and this creates the needs for cultural sensitivity. In addition, the company employs a large number of employees from different cultural background. The Hofstede’s cultural dimension index has been useful to the company in determining the different roles to be assigned to members of different societies working within the company. Cultural differences within the company have, therefore, enabled the company to acquire a global management system (Aaker, 1991). The need to meet the demands of customers with different cultural background has also contributed to the company’s development. Cultural diversity of the company’s customers has made the company to diversify its products in order to meet the demand and specification of various customers. Cultural differences within the company have also contributed to the company’s development. The necessity to satisfy the needs of every customer within the region covered by the company has led to massive developments within the company. Corporate social responsibilities are different roles or efforts made by a company to show its appreciation to local communities or society. The Coca-Cola Company acknowledges its social responsibilities and the importance of playing these roles effectively. Currently, the company is in the front line in the promotion of sports activities in different countries. The company is a major sponsor of various football teams from different countries. Furthermore, Coca-Cola is a major sponsor of the Olympic Games. The company also offers scholarship opportunities to students as a strategy to promote education (Stonebtb, 2010). Coca-Cola is also involved in environmental conservation projects such as planting of trees and promotion of green sources of energy. The company considers these tasks as a part of its corporate responsibilities and ethics despite the fact that some have legal reinforcement. International trade is subjected to global and international politics. Global political systems influence the company’s operations through international relations. Due to its massive operation and global influence, various political factions often hijack the company in their attempt to push their political agenda and ideologies. The company has also been forced to have brand names that promote different political ideologies such as capitalism. The Foreign Corrupt Act of 1977 addresses issues of transparency in exchange of security and bribery (Aaker, 1991). This policy has forced the company to restructure its operations to cope with the legal requirements. Although the Act is a part of the United States legislations, it has an international impact on the company. The legislation enables the company to cope easily with different legislations from different countries around the world. Technology is becoming an important aspect of modern business for it determines the competitive advantage of a company. Application of technology in production units within the company has increased efficiency and improved the quality of the company’s products. In addition, application of technology in production has lowered the number of the company’s employees. Low number of employees is an indicator of efficiency within the company’s operation. In conclusion, Coca-Cola has utilized its business environment to achieve success within the soft drinks industry around the globe. The company utilizes its advantage on resources and infrastructures to tackle different challenges within its business environment. References Aaker, D. (1991). Managing Brand Equity. New York, NY: The Free Press, Stonebtb. (2010). Coca Cola Success Story. STONEBTB. Retrieved from http://www.stonebtb.com/news/Success_Stories-Coca-Cola-Success-Story-16598.shtml Read More