Evaluations Of The Changing Business Environment Commerce Essay Example

their best while offering a portfolio of quality drink brands that anticipate and satisfy people's desires and needs. The company focuses on creating strong networks with clients and providers for lasting value (Spouses), supporting sustainable communities for positive impact (Planet), maximizing long-term returns for stockholders while fulfilling overall obligations (Net income), and striving to be an efficient, streamlined, and agile organization (Productiveness). Overall, Coca-Cola's mission is to explore the world, inspire moments of optimism and happiness, create value, and make a difference.

The journey of Coca-Cola began in Atlanta where soda was mixed with syrup in a pharmacy. Today, the company remains headquartered in Atlanta.Coca-Cola started out as a soda fountain vending business, selling five-cent glasses of soda. However, it quickly grew and developed a strong bottling system, which helped it become one of the largest corporations in the world. Today, Coca-Cola operates globally through a franchise distribution system, supplying syrup to bottlers around the world. The company's reach is vast, operating in over 200 countries and reaching approximately 1.5 billion consumers with its branded or licensed beverages.

In 2010, Coca-Cola achieved a significant milestone by becoming the first UK trade name to surpass ?1 billion in annual food market sales. Its popularity has made it recognized worldwide as the most popular brand.

One of the key strengths of Coca-Cola lies in its branding strategy known as "the three A's" - availability, acceptability, and affordability. It not only competes with other carbonated drinks but also considers water as a competitor.

Coca-Cola's success can be attributed to its use of advanced technologies and innovation. With about one billion servings served per day (equivalent to 12,500 bottles consumed every second), the

company relies on cutting-edge technology to meet such high demand.

Throughout its long history of 125 years, Coca-Cola has undergone various strategic shifts involving financial re-engineering, offloading bottling operations, product expansion, and advancing distribution methods.

Analyzing the general environment is crucial for any business organization. One popular tool for this analysis is PEST (Political/legal Economic Socio-cultural Technological), which helps identify various factors that impact an organization's operations and success.PESTLE analysis, an expansion of the PEST analysis, was introduced to include the environmental factor in response to growing concerns over global warming and ecological issues. Another method called STEEPLE, which was introduced in 2000, added ethics as a new factor due to increasing awareness of corporate social responsibility and business ethics.

In the context of Coca-Cola, social factors reveal a significant increase in health-conscious individuals, particularly in the USA where more people are adopting healthier lifestyles. Studies have shown that soda and other sugary drinks are major sources of calories in the American diet. Physicians and dieticians advise individuals to reduce their daily consumption of beverages like Coca-Cola as they can be detrimental to one's health.

Coca-Cola and Pepsi are considered primary contributors to obesity among young children and women in the United States. Research has indicated that regular consumption of these beverages can hinder absorption of crucial minerals such as Calcium, Magnesium, Ascorbic acid, Riboflavin, and Vitamin A; resulting in criticism for the company within its home country.

In 2005, attorneys and conservationists filed a lawsuit against Coca-Cola and other soft drink industries for excessive marketing practices in schools.Coca-Cola faced opposition in Eastern nations where tea and other milk fermented beverages were more commonly consumed. In 2010, Sprite Tea combined

fizzy drinks and tea. Similarly, Jackie Chan endorsed Yuang Ye as a tea brand for China and Eastern countries in 2008. In Japan, Coca-Cola introduced a health drink for women in 2004. The company also engages in social initiatives such as providing books and scholarships to underprivileged children and implementing education programs in Pakistan. Additionally, The Coca-Cola Company donated ˆ50,000 to SOS Kinderdorf, an Austrian children's charity organization, in 2004. Furthermore, in 2007, Coca-Cola contributed $1 million USD towards raising awareness about HIV/AIDS.For more information, please visit the following websites:
- Coca-Cola 10-K Item: [link](http://www.thecoca-colacompany.com/.../10.../Coca-Cola_10-K_Item_01a;b.pdf)
- Virtual Vendor Coca-Cola: [link](http://www.virtualvender.coca-cola.com/ft/index.jsp)
- European Business & Social Review 2005: [link](http://www.thecoca-colacompany.com/.../eu_business_social_review2005.pdf)
- Sustainability Review 2007-2008: [link](http://www.thecoca-colacompany.com/.../2007-2008_sustainability_review.pdf)
- Blog Post "Heaven on Earth": [link](http://blog.7xpub.com/2010/02/heaven-earth.html)
- An Analysis of The Coca-Cola Company's Markets Report: [link](http://www.docshare.com/doc/8487/An-Analysis-of-The-Coca-Cola-Companys-Markets)

Regarding technological factors, Coca-Cola is well-known for its continuous introduction of new technologies. In 2007, they developed a technology that allows customers to have ice-chilled Coke anywhere they want. This technology generates ice from the drink as soon as the bottle cap is opened. In 2008, Sprite Super Chilled was launched as a new product using this technology. Also in 2008, during the locations of the Olympic Games, Coca-Cola announced their commitment to environmental protection by using ice chests and vending machines free of HFC (hydrofluorocarbon). This technology was developed in collaboration with Green Peace and introduced by the company in 2009.Named Freestyle machines, these vending machines have touch screens that allow customers to blend a wide variety of drinks. According to Popsci.com, these machines are considered the "Most Advanced Soda Fountain Ever." In the same year, the company also launched fully recyclable bottles made from plants that emit reduced carbon

emissions compared to regular plastic bottles. In 2006, advanced technologies were also implemented by the company in the entertainment field when they installed Dhoom 2-Juke boxes in and around Delhi, India. Limited edition Coke bottles with special codes on their labels were released which could be swiped into the Juke boxes to access exclusive visuals from the Dhoom 2 film. From an economic perspective, significant growth has been experienced by the company over the past five years. Income tax payment increased from $1.5 billion USD in 2006 to $1.9 billion USD in 2007. The capital outgos have increased from 1.4 billion USD in 2006 to 2 billion USD in 2008, while the company's gross in 2008 remained at $31.9 billion USD. The graph above displays the fluctuations in Coke's stock prices from September 2009 to February 2010.The global economic crisis in 2008 had an impact on the company as it generated75% of its sales outside of North America but reports suggest it was not significantly affected bythe downturn.
The first quarter results of 2009 showed that sales increased by 2% in the USA and globally by 3%, which can be attributed to the company's strong presence in international markets. There was also significant growth in business in India, with a growth rate of 31% despite environmental protests. However, the final quarter results of 2009 revealed an 18% decrease in worldwide net income. In the first quarter of 2010, the company recorded gross revenue of $7.53 billion, indicating a positive outlook for the year ahead.

Coca-Cola has faced various environmental issues globally and has earned the nickname "Killer Coke" in certain countries due to concerns about pesticides found

in their products posing health risks. The Centre for Science and Environment (CSE) conducted a study in New Delhi, which revealed that Coke and Pepsi contain harmful toxins such as lindane, DDT, and Malathion. These pesticides have the potential to cause cancer or permanent damage to the immune system.
Sources:
- http://www.techdigest.tv/2007/09/new_technology_1.html
- http://www.associatedcontent.com/article/1973430/cocacola_meets_technology_touch_screen.html
- www.greenpeace.org/.../en/news/.../coca-cola-to-champion-our-cool/
- http://www.greentechnolog.com/2009/09/cocacolas_new_plant_bottle.html
- http://www.coca-colaindia.com/media/media_news_releases_detail.aspx?id=189The CSE found that Coke sold in India exceeds EU regulations for pesticide residues by 30 times. In 2005, the Kerala State government initially banned Coke production and sale, but this decision was later overturned by the state high court. Coca-Cola has faced criticism for its excessive water usage, which has led to depletion of groundwater levels. As a result, a bottling plant in Kerala closed down in 2004 due to severe deterioration of water quantity and quality in surrounding areas. Accusations have been made against Coca-Cola's Varanasi facility for using large amounts of water annually and releasing toxic waste into the Ganges River. Concerns about Coca-Cola's packaging materials from an environmental perspective have also been raised. Despite these challenges, Coca-Cola claims to prioritize environmental friendliness through active participation in waste management and recycling practices. Protests against Coca-Cola have occurred both in India and the Middle East on political grounds. Despite past controversies such as accusations of boycotting Israel to appease the Arab League and human rights violations, Coca-Cola has still outperformed its competitor PepsiCo. The implementation of environmental laws has also impacted Coca-Cola and other industry companies.Recent changes made by the Indian government are expected to have an influence on Coca-Cola. However, the company is taking measures to tackle these changes by implementing effective waste management systems in its plants.

Nevertheless, Coca-Cola faces challenges due to India's intricate tax system and difficulties with updating licenses when production capacity increases.

In 2005, the European Union discovered that Coca-Cola's business practices suppressed competition, resulting in the termination of partnerships with bars and stores. Additionally, during that same year, Coca-Cola Export Corporation received a $68 million fine for engaging in unfair commercial practices. The company has also been criticized for racial discrimination within its US offices and was fined $192.5 million as a consequence.

Legal cases related to environmental degradation, water depletion, and excessive pesticide use in India have negatively impacted Coca-Cola's reputation within the country. While attempts have been made by the company to address these challenges through meeting demands from protestors and governments, more efforts are needed to restore its reputation in developing nations.

The implementation of eco-friendly technologies by Coca-Cola through their green initiatives is crucial. This initiative is viewed as a positive step forward and if continued, has the potential to establish Coca-Cola as a globally respected and well-known brand.
In order to successfully navigate the ever-changing business environment, it is advisable for Coca-Cola to remain well-informed about ongoing changes. By being proactive and adapting new strategies accordingly, they can stay ahead of their competitors. Demonstrating commitment to society should also be a priority by introducing plans focused on public welfare, thereby serving as a role model for other companies through engaging in corporate social responsibility activities.

Moreover, Coca-Cola should ensure compliance with environmental regulations and norms while making the public aware of their strict adherence to environmental ethics. Investing in new technologies that produce high-quality products without causing harm to the environment is crucial for their success. Additionally,

understanding customer requirements and providing safe solutions are essential considerations.

The text includes citations from Pankaj Mehra's "Aspects of Business Environment" (2008) published by Omega Publications, and John Kew and John Stredwick's "Business Environment: Managing in a Strategic Context" (2005) published by CIPD Publishing.