Internal Environment Of Coca Cola

1714 Words4 Pages

Management of Business Functions coursework

In this essay, as a group we have chosen to use Coca Cola as our chosen business, and within the group I have selected to use Human Resources as my function to talk about their external and internal environment, theories and key issues that they are facing.

External environment for the organisation

Coca Cola external business environment can affect the whole company as it is consists of powerful forces, which can bring changes that create opportunities and threats in the beverages market, such forces are fluctuations, changing in consumers habits and values, law restrictions etc.

Coca-Cola believes in delivering better performance requirements better capabilities. So its HR policy is planned in procession with this approach and stand on attracting and retaining the brilliant people and developing them constantly.
For instance, a case that my team discussed was based on the water problems at India, due to this external issue which has caused Coca Cola to drain the water to feed their wells, poisoning lands with “waste sludge”, which is supposing to be fertiliser and putting thousands of farmers out of work. However Coca Cola did respond to this particular issue by implanting that their plants filter water to eliminate any possible contaminants, also that all their products would be tested for pesticides to meet their minimum health standards. Due to this issue occurring, it had been reported on the Business Standards that there has been an 11% fall on sales because of this controversy.
This suggests that the company’s morals and ethics are not portrayed accordingly and that this could involve redundancy in the workforce, as well as considering such managerial positions globally. ...

... middle of paper ...

...undancy, since it is a big issue to keep a certain number of the workforce to make labour more efficient.
When looking into employment strategies as well, Coca Cola would have to decide whether to take on young adults who are eager to learn and keen to work but would require training, which would incur more costs and years of practise or if they should pay the price and take on someone who is experienced and are capable of quickly adapting to the workforce.
Other threats are the competition, and since Coca Cola’s main competition being Pepsi, sells a very similar drink. Coca Cola needs to be aware that Pepsi does not grow to be a more successful drink. Other product such as juices, coffee, and tea are threats. As earlier mentioned substitutes could take precedent in some people’s minds over Coca Cola’s beverages and this could threaten its potential success.


Open Document