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Environment Factors - Research Paper Example

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A business environment is the collection of factors that affects the operations of a business. Business environment can further be categorized into external and internal factors. The success of a company is evaluated by its ability to utilize its business environment. This paper will, therefore, analyze the business environment of the Coca-Cola Company. The Coca-Cola success story begun in Atlanta, Georgia, before the drink became a major drink in the global market (Stonebtb, 2010). Venturing into the global market created a new set of problems for the company that could only be overcome through an appropriate combination of various factors within its business environment. Global marketing involves complex processes due to the number of parties involved in the distribution of goods and services. Global economic interdependency is viewed as a remedy to the complexity of international trade. Currently, Coca-Cola has associate firms in different countries that market or produce Coca-Cola products. This phenomenon is a form of international interdependence. International interdependence is, however, subjected to international business law and restrictions. Most countries have laws or policies that are aimed at protecting local businesses and industries. These laws are meant to create a balanced relationship between foreign companies and the mother company. Global interdependence has also contributed to the growth of the Coca-Cola Company by enabling it to acquire a firm foundation within host countries. On the other hand, trade practices and policies regulate relationship between beneficiary firms and the mother company by ensuring equitable distribution of proceeds. Demographic and physical infrastructures of a firm have a great impact in the development of a company. Currently the company has various brands that are associated with different demographic groups within a given society. Different packaging and flavors of soft drinks produced by the company identifiy these brands. The company has different packaging for various groups within the society. Different packaging and brands names are also associated with different genders within different societies. Consequently, different flavors of soft drinks produced by the company define the demographic characteristics of the consumers. These demographic infrastructures strengthen the company’s brand. In addition, the company demographic infrastructure creates or enables the customers to identify themselves with various brands that the company produces. Coca Cola’s physical infrastructure includes production facilities and units in different countries across the globe. The company has also a satellite connected communication facility that alleviates global communication and networking. Due to its scope of operation, the company considers culture as an important aspect of strategic management. The company markets its products across different cultures and this creates the needs for cultural sensitivity. In addition, the company employs a large number of employees from different cultural background. The Hofstede’s cultural dimension index has been useful to the company in determining the different roles to be assigned to members of different societies working within the company. Cultural differences within the company have, therefore, enabled the company to acquire a global ...Show more
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Environment Factors Paper The Coca-Cola Company is the world leading company in the production of soft drinks. Unlike most of its competitors, Coca-Cola has successfully marketed its different brands of soft drinks around the globe. Currently, the soft drink referred to as the Coke is the most preferred drink in different countries around the globe while Coca Cola has become a household brand…
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