External and Internal Environments Essay Example | Topics and Well Written Essays - 1750 words

international and Internal Environments - Essay suitThe Company ranks 59 in the list of Fortune 500 companies. Total revenue earned by the smart set in the last year (2012) was 46,542 USD and profit was 8,572 USD (CNN, 2013). According to some reliable news account agency, the Coca Cola Company is one of the biggest public companies in the world at present (Forbes, 2013b). This musical theme aims at studying the environment in which the company operates, evaluating its core competencies. Recommendations have been made on the bag of the results obtained from the study. General environment The macro environment in which a company operates puts significant effect on the companys management and its performance in the market. It is external to the company and refers to the forces that influence the organization from outside. External environment is of two types specific environment and general environment. While specific environment is directly relate to the goals and business obje ctives of the organization, general environment affects the organization on a broader aspect, such as its frugal, political or legal, technical, socio-cultural points of view and the environmental or natural conditions that are related to the activities of the company (Daft, 2011, p. 71). Economic components Economic factor is one of the most important factors that influence business enterprises. On one hand it affects business decisions, while, on the other hand it affects performance level of the company in the local and international market. The global economic slowdown has not left Coca Cola untouched. The developed market in the United States is recover slowly. The company has followed positive pricing strategy in this scenario. This has lead to rise in revenue in the North American segment. However, due to appreciation of dollar, there has been fall in exports to the other international direct groups of the company, such as, Asia, Europe, Africa, Latin America and the Paci fic region. It has cast a negative impact on the pelf operating revenue for the country (Coca-Cola Company, 2012a). In the last quarter of 2012 the company shares incurred loss of 2 part (The value investor, 2012). Socio cultural aspects Sales and revenue is affected significantly by the socio cultural conditions prevailing in the society in which the product is sold. The lives of the people in the developed country like the United States is strong paced and hectic. Hence carbonated drinks, such as the Coca Cola products, are well accepted at heart the population in both the young population and the older generation. However, in recent times, health cognizant of the common mass is rising. Sugar-sweetened drinks are considered to be the cause of health problems, such as obesity (Coca-Cola Company, 2012a). People, particularly, youngsters are becoming concerned of these issues, which is in turn affecting their consumption rate. Reduction in consumption is ahead(p) to drop in rev enue. Forces of competition There are five forces of competition that helps in making diligence analysis. The most important forces of competition that affect Coca Cola Company have been described at a lower place Bargaining power of suppliers The basic ingredients used for the manufacturing of the beverages by the Coca Cola Company are sugar, water, caramel brown and fruit juice and essence. In the USA there are many suppliers of these raw materials. Hence the company can choose the best supplier for each product and make a tie up with that company. Bargaining power