Coca-Cola Business Environment

The business environment of the company is distributed in the Micro & Macro Analysis.
Micro environment is the environment of the business in which factors are directly relating to
the performance of the business & effect on the factors can change the strategic performance of
an organization.
Macro environment is the business environment in which factors are relating to the external
environment of the businesses & the strategic impact of the environmental issues of the business
policies can be ascertained in the terms of the political, economical, social, technological,
environmental & legal factors affecting to the level of the business environment.

Micro Environment
The idea of the Coca Cola company is of the same in the order to develop & expand their brand
status in the Global market. For doing the same activity they are applying all the marketing
promotion & communication techniques in the business for constructing their growth strategy of
the business. In the last five years they have set a large customer base in the local, regional,
national & the international markets. They have deserved appreciation of the customer
development continuously at the rapid rate of increase in the year 2005 by 32%,2006 49.3%,
2007 52.4% in the first three years - in the year of 2008 there was a serious destruction of the
business they have observed in their target market segmentation which has started improvements
from the last year.
Employees - The company has having a big number of employees in the business in the relation
to the wide turnover of the business However, serious credit crunch in the market in the year of
2008 has serious affected the productivity level of the company due to the lowering of the
capability level of the business which has resulted in the reduction of employees in due course of
the retrenchment. The up gradation of the employee position has being started from the year of
the year of 2009 as the recover stage has begun.
Media - This is the technique used in the business for the purpose of consumer development in
the local, regional, national & international market of the business The company is using an
imperative technique of the consumer development through consumer programmes , advertising
& publicity, sales promotions, public relations, direct marketing.
Shareholders - These are the owners of the company who have the right of stake in the business,
they are holding their powers of the control & management & decision- , making. They have
right to attend annual general meetings of the company with the right to receive share in the
profits of the company in the terms of the dividend. Warren Buffet is the owner of the company
who has put the participative management style which suits for the strategic planning &
decision-making in the business.
Suppliers - These are the persons who are supplying raw materials to the company for the
purpose of the building & maintaining the strategy of the production of the company Suppliers
are the effective sources of the production which are promoting the sales activity with the
appreciating in the quality of the production of the company Supplier strategy control is the aim
of every business activity, as they are regularly supplying an effective goods & services in the

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order to increase the turnover of the company They are supplying their goods & services on the
basis of the credit periods issued to the company. Limit of the period of the credit is ascertained
by the company based on the financial position & market performance. Suppliers are deciding
the credit period in the terms of the days which are binding on the company & it is therefore an
effective supplier control policy in the business is always playing a dynamic role in the strategic
management of the company. Coca Cola company is having a good base of the suppliers which
is providing the timely regular supply in the business in the order to execute the effective
production strategy. Their suppliers in Uk are scattered in the different areas like Bermingham,
Bavon, Brighten, Manchester & other regional areas which are giving the continuous flow of the
supply of the raw materials in the order to maintain the productivity control in the business One
of the supplier namely Divine Grace has developed contract of the monthly supply of the 22
million ton of the Glass with the approval of the credit period of 15 days.
Market Competitors - Market Rivalry is an effective source of the improvement of the
performance of the company in which concentration is given on the business development in the
order to increase the sales turnover, profitability level, service efficiency, market opportunities
with the maintaining of the scope of the business. When 2 or more competitors in the same area
of activity are trying to dominate the level of the efficiency & effectiveness of the each other that
is known as the Market Competition. Every company has to develop imperative strategy of the
market development & product development in the order to maintain the stability & status in the
competitive environment of the business Market competition is helping to improve the level of
activity & superiority in the business along with the measuring of the performance Coca Cola
products are competing a tuff rivalry in the Market with Pepsi, Mirinda, Limca, 7 Up who are
trying to dominate each others in an international business environment. At present Coca Cola is
having 2nd rank of the performance of the cold drinks in an international market.

Macro Environment Related to factors in Republic of Moldova

Political - These are the factors in an external environment of the business which can be
impacted in the terms of the Government policy, Import Export Regulations , government
intervention, taxation laws, human resource training & development in the business Political
issues can be severely impacting the company organisation in the term of affecting on the policy
regulations of the company & how the scope of the activity can be focused. For the Coca Cola
the political environment of the corporate is remain continuously feasible import & export
regulation in the Republic of Moldova. They are receiving the regular support from the
Governmental & Non-governmental associations for the counselling of their management issues
on the political background.
Economical - Economic issues are those which can be the interest rates, rate of inflation,
economic development rate, foreign exchange rates which have the close impact on the business
policy development They are proving an economic status of the company in the national as well
as an international market. When the rates of the interest on the bank loans are lower giving
opportunity of investment to the shareholders of the business in this period the rate of
capitalisation increases. When the foreign exchange rates are higher given the exposure for
exports which can be increases the national income of the country The Coca Cola has
experienced a serious shock of the deterioration of the performance level in the year 2008 in
Republic of Moldova and at international level due to the serious credit crunch in the market they
had loosed their potential liquidity status of the business in this period which they had

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ascertained during the rapid development of the business in the last 3 years with the effect from
the year 2005 However, in the year 2009 they had experienced a recovery position in the
business which had improved their status.
Social - These are the factors which are relating to the changing demand & supply conditions of
the business in due course of the alterations in habits, likes, preferences , opinions of the people
which are impacting through the alterations of the manners, fashions, styles . The factors are
having a direct impact on the scope of the business as the business growth is depended sensibly
on these potential factors of the environment. It is the responsibility of the management of the
business to always prefer an ideal policy of the business development at the stake of the social
changes in the business environment. The changes in the habits of the people are always making
changes in the sales turnover of the company, in the year of 2008 this impact was focused with
the low level of income in the society.
Technological - Technological factors are having a very close impact on the development of the
business When the technology of the business improves it is resulted in the increase in the level
of the productivity of the business, effective marketing promotion techniques are appreciating
the level of the sales performance of the company with the use of modern communication
devices. Technological developments in the market are promoting the strategic development of
the business with the effective use of machinery, equipments, channels of the production. Coca
cola has experienced the potential growth of the business through the development of the new
Franco technology of production in the Dec.2009 which has increased the production capacity in
the quarter of the year by 30% comparing to the last quarter of the year.
Environmental - These are the issues in an external environment of the business which can be
occurred through the climatic conditions, temperature conditions , weather conditions in the
external environment This has a very serious impact on the on the travel & insurance businesses.
There are the natural calamities are affecting the performance level of the business such as
earthqyuaakes,riots,floods which are destroying the life of the people & affects the performance
level of the business Tsunami has a very sever impact on the business of the Coca Cola
company.
Legal - These are the issues of the company affecting in the lawful applications. There are
employment laws, consumer laws in Republic of Moldova which are playing importance for the
corporate consumer laws are protecting consumers from the defalcations of the sellers.
Employment laws are fixing the rules & regulations of the employment for the sake of the labour
control in the business.
Coca Cola gave up producing process in Moldova due a to new policy of the company. It
happened in 2015, but the administrative, sales, marketing, logistics and Human Resourcing
keeps activate in the country.
Sources:
1. http://www.timpul.md/articol/coca-cola-pleaca-din-republica-moldova-79837.html
2.https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahU
KEwiQ8IGs9fXWAhXqDZoKHTffClMQFggpMAA&url=http%3A%2F%2Fwww.coca-
colacompany.com%2Fstories%2Fenvironmental-initiatives&usg=AOvVaw3yBc93ivv8bfBUBQS7rEvH
3.https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahU
KEwj6j_zK9fXWAhVLCpoKHQ33A2QQFggpMAA&url=https%3A%2F%2Fyoucantbeatthefeeling.wordpress

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.com%2F2013%2F10%2F13%2Fmicro-and-macro-factors-affecting-coca-cola-
company%2F&usg=AOvVaw0gPnFo02G9IltPUYinLoky

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