The Coca-cola company
The external factors include; political factors, economic factors, socio-cultural factors, technological factors, hereditary factors, and environmental factors. Political factors are the condition of local politics and how they relate to the global business. These conditions favor the Coca-cola company as most countries’ policies encourage foreign investors to conduct business in their countries. The global economic status is on the rise due to the increased implementation of development initiatives, thereby increasing the number of potential customers of the company. The products that Coca-cola company is socially and culturally universal, thereby increasing the size of their market. The company does not produce health- risk products, thus making them legally safe. Besides, the company tends to comply with all legal requirements for conducting business in various countries to keep them safe from legal action. The company has a robust technology that enables them to fit in competition. Environmental factors tend to remain a challenge since they vary from one country to another, and it is tough to predict climate change continuously.
The internal environment is a factor that affects the company’s operations but originates internally. The company has a direct influence on these internal business structures. These factors include; value framework, business path, organizational structure, organizational culture, human resource, and physical resource. The product of Coca-cola has an excellent reputation making it attract more customers. The company majorly fulfills a need for refreshment, thereby targeting people on vacations and tours. These people have adequate funds to purchase these products. The structure of the Coca-cola company is favorable for the coordination of organizational affairs. The company has an influential culture that favors the management, customers, employees, government, and other business stakeholders. The company has both excellent physical and human resources, which enable it to conduct its operations efficiently.
Ethical practices
Ethical practices are a combination of policies that regulate potential controversial subjects. The purpose of ethics is to ensure a high level of trust between the corporation and the customers, guaranteeing equal and fair treatment (Twin & Drury, 2020). Coca-cola practice a high level of ethical conduct, which enables it to develop a robust public trust.
Coca-Cola company ensures standard pricing to all its retailers to avoid customer exploitation. Besides, the company ensures that they produce a quality product that is not risky to health. Also, the company provides that they are sincere in their advertisement to avoid misleading the public in wrongful decision making. In doing so, the company ensures that they comply with all government regulations, including tax compliance, to avoid any legal action against them. The company does not entertain any corruption, discrimination, or bribery to protect its public image. The company upholds the international labor standards, and they pay workers a favorable salary, condition reasonable working hours, and provide the proper working condition.
Conclusion and recommendation
Coca-cola is a global company that enjoys a broad market and a good reputation. The company is under monopolistic market competition and can strategize independently. The company has a good marketing strategy, which enables it to reach a wider audience. The company’s strengths and opportunities surpass its weaknesses and threats, thereby creating more chances for prosperity. Most of the environmental factors, both internal and external, favors the operations of the Coca-cola company and its possible expansion. The company practices good ethical behavior, which enables it to build a robust public image. The company should, therefore, strengthen its weaknesses to gain maximum advantage over the competitors. Similarly, the company must develop a robust strategy to counter the possible loss of the market due to the rise of other strong global business competitors. The company should conduct more research to find more ways of prospering and retaining its market status.