Understanding Business: Coca Cola Swot Analysis

Understanding Business B200-A

TMA01- (1500)

Everything in the world is changing as a result of a phenomenon which is called Globalization. Companies will be trying to provide children, adults, men and women in all ages with products that make them feel comfortable concentrating on the highest quality and the good costs to compete powerfully in the market.

Organizations are like environments because they are defined as variable behavioral influences which directly or indirectly affect the outcome or the future of every business. So organizations must try its best to make profit to be successful through creating the value for customers and through understanding customers and generating competition.

Globalization sectors in Market

I will discuss all these concepts relating to one of the well-known organization in our world these days which is Coca-Cola. Coca-Cola is considered as one of the famous multinational corporations in the United States of America. Its main mission was to refresh the world, to inspire moments of optimism and happiness, to create value to make a difference and this to deliver daily refreshment and drive their global success.

I will start analyzing Coco-Cola according to one of the specific frameworks to know how the company was achieving its goals which is the STEP analysis. It is a tool for auditing an organization through the environment. STEP stands for Social, technical, economic and Political factors.

I will start by the social factors that are major parts of the success of any organization which depend on the relation between individuals and groups, so the main part are the people who must work in an effective and professional way to make Coca-Cola a lean and a fast moving organization focusing on the customer needs and franchise partners concentrating on the implementation in the marketplace to avoid problems that might appear such as the health risks.

Relating to the social factors that contain values, lifestyles, age of population, and the income structure of local population Coco Cola was always looking forward to make changes to provide healthier lifestyle through product development and marketing in product line and also it continue respecting consumer values, believes and culture. So changes in social trends can impact the demand of firm's products and the availability and willingness of individuals.

http://www.slideshare.net/dgclip1981/the-coca-cola-company

Coca-Cola's goal is to provide magic every time someone drinks one of its more than 500 brands. Coca-Cola is committed to local markets, paying attention to what people from different cultures and backgrounds like to drink, and where and how they want to drink it. According to the same fact it became a achieve popularity and was widely accepted so certain individuals choose not to drink so it's the best well liked organization that is growing during days.

http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html

But in this sector there may be some weaknesses such as the word of mouth that is hard to be controlled and some individuals who are against will be having negative views and bad comments that will spread to other customers and afterward make loosing for its customers such as the failure that appear during the 2003 when the product cause some diseases such as the Severe Acute Respiratory Syndrome (SARS).

The second thing that I will talk about are the technological factors which make Coca Cola as an extremely recognizable company and a very well known company obvious with easily predictable branding such as logos and promos shown on t-shirts, hats, and collectible memorabilia. So it was providing the last technologies in promotion and marketing to keep powerful.

www.thecoca-colacompany.com/our_progress.html

With its bottling partners, Coca Cola reaches out to the local communities that it serves, believing that it exists to benefit and refresh everyone it touches. This affected the non alcoholic beverage industry in that to bottled water and diet colas instead of other alcoholic beverages to be healthier.

Coco Cola has many successful brands so it should continue exploiting and pursuing to cope with the technological changes in the market which is a powerful way to advertise less popular products with higher income that could be advantageous to the company while selling other products to the same extent that they do with their main products.

The third thing is the economic sector, so Coca Cola was dealing with massive amounts of money and were looking always for improvements in all sectors so the money they are earning was substantially better than most other companies. Another thing is the customer loyalty that allows increasing in the profits because most of the people are drinking it and they will continually purchase these products for a very long time and will buy their products.

The economic sector may also face some limitation during the lack of popularity of many of Coca Cola's drinks that are unknown and rarely seen for available purchase because of the low profile and the nonexistent advertising and being not beneficial to our body and health that might be affected because of the bad carbonated contents in it so many people were moving to buy other fruit juices that might be healthy because it contain carbonic acid that is considered to be harmful

The fourth sector and the last is the political one, as we see Coca Cola's power and success is not impossible so they bought out a countless number of drink brands get there brand name known even better and getting closer to consumers and to continue to widen the gap between them and their competitors. But they may lose control on some amounts of the entire beverage market, changing health-consciousness attitude of the market.

Moreover, there might be some threats from the legal side such as the supreme wealth and popularity because many people will be trying to find fault with the best and take them down. Also the health minister will be trying to utilize the unhealthy side of Coca Cola's products and threaten the status and success of sales.

So any organization will be trying to avoid the threats because of the other competitor organization that are selling similar drinks or other products like juices, coffee, and milk. They must also save their name from the declining

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