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Environmental changes taking place in a rapid growth & organizations are reaching to those changes in the environment in which they operate. These changing factors or forces are not under the control of company or its business. Therefore organizations must closely monitor, identify these changes & prepare for it to make effective decision in the long run to succeed in the business competition.
Macro Environment - Factors beyond the immediate control of the organization. This includes Political, Economic, Social, Technological, Environmental, and Legal.
Microenvironment - Factors in the immediate environment of the firm. This includes customers, suppliers, distributors, employees. These can influence more easily than Macro.
Internal Environment - The functions of the organization. E.g. - Marketing, Production, Finance & HR.
COCA-COLA GLOBAL COMPANY
Founded in 1886 by pharmacist John Styth Pemberton in Atlanta, Georgia, The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 brands. The Coca-Cola Company continues to be based in Atlanta and employs 49,000 people worldwide, with operations in over 200 countries
COCA-COLA GREAT BRITAIN
Coca-Cola Great Britain (CCGB) is responsible for marketing 21 brands (over 100 products) to consumers in Great Britain, developing new brands, extending existing brands and protecting Coca-Cola trade marks in Great Britain. CCGB employs around 130 people at its headquarters in West London.
In Great Britain we manufacture and market a wide range of drinks. Our sparkling soft drinks include well-known brands like Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite and Fanta, as well as Oasis still fruit drinks; the isotonic sports drink PowerAde and Abbey Well water. We also own the Schweppes product range, relentless energy drinks and the newly launched range of GLACÉAU vitamin water.
Coca-Cola Enterprises Ltd (CCE) - Coca-Cola Enterprises Ltd (CCE) is the local bottler responsible for the manufacturing, distributing, sales and trade marketing of the brands of CCGB throughout England, Scotland and Wales. It employs around 5,000 people at its various sites across Britain. Click here for more information about CCE.
Our company in Great Britain is made up of the two companies above with different roles. These two companies form our business in Great Britain, which we call the Coca-Cola System
MISSION, VISION & VALUES
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners.
To refresh the world, inspire moments of optimism & happiness & create value & make a difference.
Our vision is to accomplish People, Portfolio, Partners, Planet, Profit & Productivity in order to continue achieving sustainable quality growth.
Our values are Leadership, Collaboration, Integrity, Accountability, Passion, Diversity & Quality.
HIGHLIGHTS OF 2008
17,000 Coolers are fitted with a bespoke energy management system that reduces energy use by up to 35%.
1.47 liters of water used to make each liter of product - one of the lowest water use ratios in the entire global Coca-Cola system
135,000 unique users visiting letsgettogether.co.uk
50% of our aluminum cans contain 50% recycled aluminum and have been redesigned to be only as thick as a human hair.
34% of our products have no sugar or no added sugar
Supported Special Olympics GB for more than 30 years and the Olympics since 1924.
OPERATIONS IN GREAT BRITAIN
Our drinks are sold the length and breadth of Great Britain, so we have operations to match. The map below shows where we have our 37 production, distribution and office sites. The locations are split into five regions: Scotland, North, Central, Wales & South West and South East.
Coca-Cola Great Britain (CCGB): - CCGB markets and develops new and existing brands. Based in West London and employing 110 people, it currently manages 17 brands and around 100 products.
Coca-Cola Enterprises Ltd (CCE): CCE manufactures and distributes soft drinks for both The Coca-Cola Company and other brand owners. It employs around 4,650 people in Great Britain and has seven manufacturing sites across the country.
Coca-Cola is Great Britain's number one grocery brand
CCE holds 27% of the soft drinks market in the UK.
In 2008 CCE sold 4.4 billion packs of soft drinks.
Our products are sold in over 100,000 outlets around Great Britain.
CONNECTING WITH STAKE HOLDERS
Corporate responsibility isn't something we can do on our own. To make sure we're addressing the issues that matter the most and being as effective as we can, we need to work closely with those who have an interest in our business. These include our consumers, our customers (such as shops, restaurants and other retailers), suppliers, the government, non-governmental organizations and employees. These are our stakeholders
Diagram 3 - Our Stakeholder Research 2007
CCGB employs around 110 people in Great Britain. In 2008, CCE employed an average of 4,664 people. We make it a priority to treat our people well, help them develop and give them a rewarding working life. To us, this means creating an environment where employees can, Excel in their performance, Develop skills for improvement & Move toward their career goals
In Great Britain, we work with more than 410 suppliers - 96% of which are based locally within the UK. Our procurement teams build relationships with our many suppliers to make sure that they are delivering the best value in terms of quality, cost, service and innovation. We recognize that by providing us with goods and services, our suppliers can have a significant social and environmental impact. We therefore believe in the importance of finding the most sustainable ways of working together.
Working with government
The Public Affairs and Communications teams at CCGB and CCE regularly engage with government departments and regulators in England, Scotland and Wales. They tackle a wide variety of public policy issues related to our business. During 2008 we responded to Government consultations on a variety of topics, including: Ex: England's Waste Strategy (DEFRA), The Food Industry Sustainability Strategy (DEFRA). We don't make any financial or in-kind contributions to political parties, politicians or related institutions in Great Britain.
CCGB and CCE work together on corporate responsibility issues
In Great Britain we take a lifecycle approach to our thinking about corporate responsibility. This means trying to reduce our impacts at every stage of our drinks' lifecycles - from growing ingredients and sourcing materials all the way to how our consumers dispose of their empty cans and bottles. You might think that most of our impacts come from manufacturing and distributing our products. But this isn't necessarily the case. For example, we know that between 30% and 70% of a product's carbon footprint comes from its packaging. So it's clear that if we want to reduce the impact of our products, packaging has to be a big focus
Our business contributes to both local and national economies in Great Britain. We pay taxes, provide employment, work with local suppliers and invest in the communities where we operate.
Of the economic value we create and reinvest in the local community:
Over 50% is directed to suppliers of raw materials, packaging and other goods and services
Over 96% of these suppliers are based in Great Britain
Over 18% is investment in our employees, via salaries, pension contributions and other benefits
Over 5% we return to the government in the form of taxation
This emphasizes the importance of our suppliers to our business as well as the role we play in supporting and sustaining jobs across our supply chain.
Physical activity plays an important role in building motivation and self-esteem for young people - not to mention helping them stay healthy. Encouraging young people to be more physically active is a central part of our community approach. We do this by supporting community-based programmes, and investing in research to understand the best ways of encouraging young people to take part in physical activity.
IMPACT OF MACRO ECONOMIC PLOICY
Political - Like in any industry, the government plays an important role creating new laws and regulating the operation of manufacturing the products. The authorities would potentially fine beverage companies that do not meet with UK standards. This is a list of possible violations that could lead to fines. Changes in accounting taxation requirements, such as: tax rate, new tax laws and revised tax law interpretation.
Environmental laws - Political conditions and the ability of an international company to transfer capital abroad. Their ability to enter a developing or emerging markets, which also depends on political and economic conditions. Additionally, how they form strategic business relationships with local bottler. How they make necessary infrastructure adjustments to production facilities, distribution and technology are also important. Since this industry is so big, corporation can easily take advantage of the consumers, therefore the government created a law to protect the customers against manipulation of the producers. Ex-The Sale of Goods Act 1997
Economic - The cola industry did really well in the 90's not only because there was a advertisement war between the main brands, but also for the reason that globalization was taking over. This implies that the economy was growing and sales were increasing. Coca-Cola and Pepsi alone invested over 11 million annually in mutually targeted television advertisements and marketing campaigns. This resulted in an industry growth and created new opportunities for the introduction of own label brands
The market analysis investigates both internal & external business environment. Internal & external environment & their respective influences will be decisive traits In relation to Cokes success & survival in the soft drink industry. We look at the SWOT analysis of Coca-Cola to examine the current activities which is strength & weakness & then using the external reasons data to set out the opportunities & threats that exist.
Strength - Coca cola has been a complex part of world culture for a very long time
Weaknesses - Any industry business need to be both minimized & monitored in order to effectively achieve productivity & efficiency. Coke is no exception
Opportunity - Coca cola brand name is the significant factor affecting the competitive position.
Threat - Currently threat of new viable competitors in the carbonated soft drink industry is not very substantial.
We provide a wide range of drinks. By marketing them responsibly and with regular, open communication, we allow people to make informed choices about how and when to enjoy them. We don't believe in restricting people's choice or dictating what they should drink. However, we know that we have a responsibility to help people choose the right drinks to suit their lifestyles.
We keep developing our portfolio, focus on nutrition, pack sizes & low or no sugar verities. A perfect quality product every time is our aim. To ensure our sales and marketing activities are carried out in a responsible way, we have a number of long-standing global policies about how and to whom we should market. These policies form part of our Codes of Practice.
In 2008, CCGB launched theÂ Responsible Marketing Charter.
This guides our approach and reinforces our commitments in this area. It was developed specifically for the market in Great Britain, building on our European and global commitments.
Our Responsible Marketing Charter:
Reinforces our longstanding responsible marketing commitments
Maintains our longstanding principles and is explicit about what they mean in practice. We review all marketing initiatives to ensure that they comply with these principles
Provides clarification on areas in Great Britain for which we are often challenged
States that marketing is a force for good to address societal challenges. For example, how our brands can be used to encourage active lifestyles or recycling
Commits us to accountable compliance with the Charter contents and continual assessment through an independent auditor
We will continue to pool advice and opinions about our approach to responsible marketing and will refresh our commitments based on feedback from parents and other stakeholders. In partnership with the International Business Leaders Forum, we established a responsible marketing online network in May 2009. It brings together a range of marketing experts and thought leaders to discuss challenges in this area, so that we may solve any problems together.
In order to get valuable feedback, assess concerns and correct mistakes, it's important to keep talking with our consumers and customers. We also work with all of our major customers (such as shops, restaurants and other retailers) to regularly review our performance and approach. All of our customers can ask us questions or provide direct feedback on a regular basis through their main point of contact at CCE.
In 2008, CCE was once again named 'Best Branded Supplier' in The Grocer Gold Awards
MARKET STRUCTURE & PERFECT COMPETETION OF COCA COLA
The market structures tells us about the environment within which an enterprise functions and the nature of external pressure on the enterprise. Coca Cola is not a monopoly. Monopoly is a market structure characterized by a single seller of a well-defined commodity for which there are no good substitutes and by high barriers to the entry of other firms into the market for that commodity. By this definition coca cola will not be a monopoly as long as Pepsi is around.
Oligopoly - Few Market Leaders / High Barriers of Entry
It is important to consider the following market analysis of Coca Cola in the perfect competition.
Demographic - The UK market & Global Market
Elasticity - The relative effects of change in price to demand
Market trends - The decline of sales in carbonated drinks / The rise of functional drinks : Juices, enriched vitamin water & nutraceuticals
International trade is the exchange of goods & services between the countries. An export is a sale of UK made well or service overseas.
UK Beverage -industry, EXPORTING TO OVERSEAS markets can attract more BENEFITS.
Saturation of its domestic market can force an organization to seek overseas market and economies of scale also result from extending the use of brands in overseas markets.
From the perspective of national economies, a comparative cost advantage & restrictions on international trade.
For poor country, the chances to trade might help them to be able to break out of the cycle of the poverty that exists.
Corporate responsibility isn't just important for our businesses in Great Britain - it's a global concern. CCGB and CCE are part of larger global companies that carry out their own corporate responsibility with European Union.
European Union is an international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members. This is a formation of 25 countries & it became the most powerful trading bloc in the world & thereafter the Euro currency created.
MAJOR IMPACTS BY EU
The Coca-Cola Company and certain of its bottlers in Europe have given an Undertaking to the European Commission regarding certain commercial practices. This Undertaking is made without prejudice to the Companies' position should the European Commission or any other party decide to open proceedings or to commence any other legal action against any of the Companies. This Undertaking shall be interpreted in accordance with Community law.
The Undertaking is intended to apply across the European Union, Iceland and Norway in the Take-Home and On-Premise Channels where the carbonated soft drinks of The Coca-Cola Company account for over 40% of national sales and twice the nearest competitor's share
With operations in more than 200 countries, the Coca-Cola system employs local people, sources local ingredients, and produces and sells our products locally directly and indirectly creating millions of jobs.
As a company dependent upon consumer purchasing power, the sustainability of our business depends on sustainable economies. Our strategy has always been to be the first to gain access to a market and to grow along with that market by providing jobs, investment and economic opportunities. In some markets, it can take years for our business to become profitable. We believe in calculated investment in areas where we see market potential to drive business growth. This strategy has worked well in many markets throughout Latin America, Eurasia and Africa, and the Pacific, and some of these markets now fuel the growth of the Coca-Cola system.
We also strive to make safe, quality products available and affordable to consumers everywhere. In many parts of the world, small, independent retailers act as the backbone of our business. Our system works with small retailers, vendors and distributors to build their businesses and grow our business partnerships. Throughout investments, we help develop economies and grow our business for the long term.
2008 COMPANY GLOBALECONOMIC IMPACT (in billions)
Area of Impact
â€¢ Goods Purchased - $11.4B
â€¢ Global Salaries and Benefits - $4.3B
â€¢ Shareowner Dividends -$3.5B
â€¢ Local Capital Expenditures-$2.0B
â€¢ Income Taxes -$1.6B
CONCLUSION & RECEMONDATIONS
A world where all people have access to safe water, where packaging has a life beyond its original use, and where communities are healthy and prosperous. This is our vision.
The Coca-Cola Company and our bottling partners are committed to making a lasting, positive difference in the world. We are constantly innovating to keep our products affordable and make our business more environmentally and economically beneficial to the communities we serve. And we believe that investing in the economic, environmental and social development of communities will help our business grow.