Unit 1 Learning Aim C and D
,Unit 1 Learning Aim C and D
,Unit 1 Learning Aim C and D
,Unit 1 Learning Aim C and D
Contents
Introduction...........................................................................................................................................6
P4 – Discuss the internal, external and competitive environment on a given organisation..................6
What is the Business Environment?......................................................................................................6
Internal..................................................................................................................................................7
External..................................................................................................................................................7
Competitor analysis...............................................................................................................................7
Corporate Culture..................................................................................................................................8
Corporate Social Responsibility.............................................................................................................8
P5 – Select a variety of techniques to undertake a situational analysis of a given organisation............9
PESTLE...................................................................................................................................................9
Political..............................................................................................................................................9
Taxation.........................................................................................................................................9
Brexit...........................................................................................................................................10
Economic.........................................................................................................................................10
Employment.................................................................................................................................10
Social................................................................................................................................................10
Health Problems..........................................................................................................................11
Ageing population........................................................................................................................11
Technological...................................................................................................................................11
Social Media.................................................................................................................................11
Equipment’s.................................................................................................................................11
Legal.................................................................................................................................................12
The National Living Wage............................................................................................................12
Health and Safety at Work Act 1974............................................................................................12
Competition Law..........................................................................................................................13
Environmental.................................................................................................................................13
Plastic Pollution...........................................................................................................................13
Conclusion.......................................................................................................................................13
SWOT...................................................................................................................................................14
Strengths.........................................................................................................................................14
Weaknesses.....................................................................................................................................14
,Unit 1 Learning Aim C and D
Opportunities...................................................................................................................................15
Threats.............................................................................................................................................15
Conclusion.......................................................................................................................................16
Porter's 5 Forces..................................................................................................................................16
Rivalry between competitors...........................................................................................................16
Substitute products.........................................................................................................................16
Threat of new elements...................................................................................................................17
Supplier power................................................................................................................................18
Bargaining power of buyers.............................................................................................................18
Conclusion.......................................................................................................................................18
Monetary (interest rates)....................................................................................................................19
Fiscal (taxation) policy.........................................................................................................................20
P6 – Explore how the market structure and influences on supply and demand affect the pricing and
output decisions for a given business..................................................................................................20
Market Structure.................................................................................................................................20
D3 and M4...........................................................................................................................................21
Conclusion...........................................................................................................................................22
,Unit 1 Learning Aim C and D
The Effects of the Environment on a Business
In this assignment, I have been requested to draft a report about a manufacturing business that runs
in the UK. The business I have chosen to investigate is Coca-Cola which is a large and successful
business that operates globally. In this written report, I will be discussing the environment in which
Coca-Cola operates and how Coca-Cola adapted and reacted towards changes in the market in the
past and how they are preparing for possible future changes.
Introduction
Founded in 1886 by John Pemberton, Coca-Cola is a public limited company that trades its shares on
the New York stock exchange.1 This happened since it’s the world’s largest beverage distributor,
offering more than 500 brands from sodas to waters, from coffees to teas, from juices to kombuchas
in more than 200 countries. Furthermore, through brands like Coke, Diet Coke, Fanta and Sprite, it
delivers over 3% of all drinks consumed globally every day. Now it’s the world’s most recognisable
brands.
P4 – Discuss the internal, external and competitive environment on
a given organisation
What is the Business Environment?
A business environment is a mixture of internal and external factors that contribute to and
influences a business's operations. The business environment can include factors such as customers,
suppliers, its competitors and economic strength of a country.
1
https://www.coca-cola.co.uk/our-business/faqs/who-owns-the-coca-cola-company#:~:text=The%20Coca
%E2%80%91Cola%20Company%20is,Coca%E2%80%91Cola%20Company%20was%20CCO.
,Unit 1 Learning Aim C and D
Internal
Internal environmental are factors that occur within an organisation which are easier to control than the external
environment. These factors usually impact the organisation's actions and decisions, especially the performance of
employees. For instance, CSR can greatly influence how a business operates as it portrays a positive image of how
socially conscious business is.
External
External environmental are factors that take place outside of the organisation which are
uncontrollable and unpredictable. These factors influence the organisation's choices and activities
and determine its opportunities and risks. For examples, Monetary policy is where banks or
government agency control the amount of money and interest rates in an economy in order to
influence output, employment rate, and expenses. These are done by modifying the interest rate,
buying or selling government bonds, regulating foreign exchange rates, and changing the amount of
money banks are required to maintain as reserves. 2
Competitor analysis
Currently, the market leader in the Global Beverage Industry is Coca-Cola since 2004, according to
Statista. This is because it has outperformed everyone by capturing 42.5% 3 of the market share, who
still managed to stay top of the leader board despite experiencing a market cap of $185.8 billion,
unlike Pepsi-Co who has a market cap of $188.6 billion. This might be due to numerous amounts of
competition between the Two powerhouses who work in the same field which causes high amounts
of competition between them, but has their own difference like Coca-Cola own unique brand.
Hence, suggesting that consumers will have various brands to choose from having and may be
tempted to go for the cheapest products or that they offer high quality products. This means that it
would affect Coca-Cola to possibly lose loyal customers if customer expectation hasn't been satisfied
which will result in loss of revenue.
In addition, the mixture of uncertainty over the consequences of Brexit, COVID-19 and consumers
who have begun to seek out healthier alternatives hit Coca-Cola badly as they mainly produce fizzy
drinks, juice, sports and energy drinks which mainly contain sugar. This suggests that Coca-Cola may
foresee a continued downward trend on their products which will result in a decline in profits and
increased competition. This has been shown by their Share in 2020 which has fallen by 19% 4.This
shows that consumers are more interested in healthy products that cause less harm to the body due
to concerns over the on-going pandemic and health related issues. Therefore, informing that may
2
"Monetary Policy Definition - Investopedia."
https://www.investopedia.com/terms/m/monetarypolicy.asp.
3
https://www.investopedia.com/ask/answers/060415/how-much-global-beverage-industry-controlled-coca-
cola-and-pepsi.asp#:~:text=Since%202004%2C%20Coca%2DCola%20Company%20has%20been%20the
%20market%20leader,market%20cap%20of%20%24185.8%20billion.
4
https://www.fool.com/investing/2020/07/06/why-coca-cola-stock-has-fallen-19-so-far-in-2020.aspx
,Unit 1 Learning Aim C and D
struggle in the future to compete against competitors like Pepsi as they still lack the necessary
resources they require.
Corporate Culture
Corporate culture is the set of shared values, beliefs and standards of an organisation that influence
features work environment. For instance, it affects the way they communicate, decide, work, engage
and compete with competitors. This is crucial as having a good workplace culture helps an
organisation to be successful in improving brand reputation and attracting new talents as good
workplace culture helps employees spread the message to people.
Coca-Cola 's workplace culture is to give every one of their customers an experience they'll love
forever. This is because they believe that their brands are admired for what they do, but they're
bought to make people feel special such as a reward for hard work and achievement or the
embodiment of dreams. They also hold that their customers have high expectations so they simply
have to lead their profession through delivering great products, in the experience’s customers have
and positive part of the society around them. In order to maintain these standards, Coca-Cola aims
for the highest standards possible in the way they work and in the quality of their products.
5
Overall, the employees who work for Coca-Cola have a positive relationship as they are interested in
working in the best place workplace. Evidently, this has been proven by 81% of employees
recommending others to work for Coca-Cola. This is good as it shows that the relationship between
the employees and the organisation are incredibly well. This influences Coca-Cola to keep up their
progress by introducing an open survey for employees, to make sure they're an attractive employer.
Corporate Social Responsibility
Corporate social responsibility otherwise known as CSR is to assure organisations handle their
business in a humane way. This is done by them being socially accountable for social, economic,
environmental impact whilst acknowledging human rights. This usually includes activities such as:
working in local communities, socially responsible investing, Improving links among workers and
clients and Environmental protection and sustainability 6.
5
https://fr.glassdoor.ch/Reviews/The-Coca-Cola-Company-Reviews-E161.htm?countryRedirect=true
, Unit 1 Learning Aim C and D
Likewise, Coca-Cola works with expert organisations around the world to create opportunities for
communities facing social, economic and environmental challenges. They do this by many ways such
as working with Recycling water7, to ensure that they’re returned cleaned back to communities and
nature from local business or initiatives. This is good as it shows that they have concerns about
water pollution and are taking important actions to reduce their water footprint in order to make
the world a healthy and friendly environment. By doing this, it would improve their brand reputation
as they are working really hard to make their manufacturing plants safe and non-polluting for the
environment.
Furthermore, giving access to safe water at home means families can remain healthier and can
spend more time at school and work so that families can improve their education and future
prospects and incomes.
P5 – Select a variety of techniques to undertake a situational
analysis of a given organisation
PESTLE
A PESTEL analysis is an acronym utilised to recognise the key features of the external environment
facing an organisation.
Political
Political factors can impact a business by making the market environment more or less friendly for
that business. Typically, governments have a great deal of power over businesses and many times,
there is not much that businesses can do about it.
Taxation
Taxes are imposed by the government so that they can make money and control society by
discouraging certain activities. Hence increasing the sugar tax would prevent, Coca-Cola 's
consumers to reduce sugar consumption as they would have to pay more in taxes. This is bad for
Coca-Cola as recent figures from the Beverage Daily showing Coca-Cola Classic sales volumes in
Europe decline by 1% over the last three months due to the impact of new soft drinks industry
taxes8. In contrast, this is good as it helped Coca-Cola Zero Sugar grow by 18.5%, with retailers
increasingly shifting space over to the sugar-free variety which mean they wouldn’t be affected by
the sugar tax.
6
"What is corporate social responsibility? | The University of Edinburgh." 3 Jul. 2017,
https://www.ed.ac.uk/careers/your-future/options/occupations/csr/what-is-csr. Accessed 20 Jan. 2019.
7
https://www.coca-colacompany.com/sustainable-business/water-stewardship
8
https://www.beveragedaily.com/Article/2018/10/29/Sugar-tax-knock-for-Coca-Cola-Classic-in-Great-Britain-
but-Zero-Sugar-up
,Unit 1 Learning Aim C and D
,Unit 1 Learning Aim C and D
,Unit 1 Learning Aim C and D
Contents
Introduction...........................................................................................................................................6
P4 – Discuss the internal, external and competitive environment on a given organisation..................6
What is the Business Environment?......................................................................................................6
Internal..................................................................................................................................................7
External..................................................................................................................................................7
Competitor analysis...............................................................................................................................7
Corporate Culture..................................................................................................................................8
Corporate Social Responsibility.............................................................................................................8
P5 – Select a variety of techniques to undertake a situational analysis of a given organisation............9
PESTLE...................................................................................................................................................9
Political..............................................................................................................................................9
Taxation.........................................................................................................................................9
Brexit...........................................................................................................................................10
Economic.........................................................................................................................................10
Employment.................................................................................................................................10
Social................................................................................................................................................10
Health Problems..........................................................................................................................11
Ageing population........................................................................................................................11
Technological...................................................................................................................................11
Social Media.................................................................................................................................11
Equipment’s.................................................................................................................................11
Legal.................................................................................................................................................12
The National Living Wage............................................................................................................12
Health and Safety at Work Act 1974............................................................................................12
Competition Law..........................................................................................................................13
Environmental.................................................................................................................................13
Plastic Pollution...........................................................................................................................13
Conclusion.......................................................................................................................................13
SWOT...................................................................................................................................................14
Strengths.........................................................................................................................................14
Weaknesses.....................................................................................................................................14
,Unit 1 Learning Aim C and D
Opportunities...................................................................................................................................15
Threats.............................................................................................................................................15
Conclusion.......................................................................................................................................16
Porter's 5 Forces..................................................................................................................................16
Rivalry between competitors...........................................................................................................16
Substitute products.........................................................................................................................16
Threat of new elements...................................................................................................................17
Supplier power................................................................................................................................18
Bargaining power of buyers.............................................................................................................18
Conclusion.......................................................................................................................................18
Monetary (interest rates)....................................................................................................................19
Fiscal (taxation) policy.........................................................................................................................20
P6 – Explore how the market structure and influences on supply and demand affect the pricing and
output decisions for a given business..................................................................................................20
Market Structure.................................................................................................................................20
D3 and M4...........................................................................................................................................21
Conclusion...........................................................................................................................................22
,Unit 1 Learning Aim C and D
The Effects of the Environment on a Business
In this assignment, I have been requested to draft a report about a manufacturing business that runs
in the UK. The business I have chosen to investigate is Coca-Cola which is a large and successful
business that operates globally. In this written report, I will be discussing the environment in which
Coca-Cola operates and how Coca-Cola adapted and reacted towards changes in the market in the
past and how they are preparing for possible future changes.
Introduction
Founded in 1886 by John Pemberton, Coca-Cola is a public limited company that trades its shares on
the New York stock exchange.1 This happened since it’s the world’s largest beverage distributor,
offering more than 500 brands from sodas to waters, from coffees to teas, from juices to kombuchas
in more than 200 countries. Furthermore, through brands like Coke, Diet Coke, Fanta and Sprite, it
delivers over 3% of all drinks consumed globally every day. Now it’s the world’s most recognisable
brands.
P4 – Discuss the internal, external and competitive environment on
a given organisation
What is the Business Environment?
A business environment is a mixture of internal and external factors that contribute to and
influences a business's operations. The business environment can include factors such as customers,
suppliers, its competitors and economic strength of a country.
1
https://www.coca-cola.co.uk/our-business/faqs/who-owns-the-coca-cola-company#:~:text=The%20Coca
%E2%80%91Cola%20Company%20is,Coca%E2%80%91Cola%20Company%20was%20CCO.
,Unit 1 Learning Aim C and D
Internal
Internal environmental are factors that occur within an organisation which are easier to control than the external
environment. These factors usually impact the organisation's actions and decisions, especially the performance of
employees. For instance, CSR can greatly influence how a business operates as it portrays a positive image of how
socially conscious business is.
External
External environmental are factors that take place outside of the organisation which are
uncontrollable and unpredictable. These factors influence the organisation's choices and activities
and determine its opportunities and risks. For examples, Monetary policy is where banks or
government agency control the amount of money and interest rates in an economy in order to
influence output, employment rate, and expenses. These are done by modifying the interest rate,
buying or selling government bonds, regulating foreign exchange rates, and changing the amount of
money banks are required to maintain as reserves. 2
Competitor analysis
Currently, the market leader in the Global Beverage Industry is Coca-Cola since 2004, according to
Statista. This is because it has outperformed everyone by capturing 42.5% 3 of the market share, who
still managed to stay top of the leader board despite experiencing a market cap of $185.8 billion,
unlike Pepsi-Co who has a market cap of $188.6 billion. This might be due to numerous amounts of
competition between the Two powerhouses who work in the same field which causes high amounts
of competition between them, but has their own difference like Coca-Cola own unique brand.
Hence, suggesting that consumers will have various brands to choose from having and may be
tempted to go for the cheapest products or that they offer high quality products. This means that it
would affect Coca-Cola to possibly lose loyal customers if customer expectation hasn't been satisfied
which will result in loss of revenue.
In addition, the mixture of uncertainty over the consequences of Brexit, COVID-19 and consumers
who have begun to seek out healthier alternatives hit Coca-Cola badly as they mainly produce fizzy
drinks, juice, sports and energy drinks which mainly contain sugar. This suggests that Coca-Cola may
foresee a continued downward trend on their products which will result in a decline in profits and
increased competition. This has been shown by their Share in 2020 which has fallen by 19% 4.This
shows that consumers are more interested in healthy products that cause less harm to the body due
to concerns over the on-going pandemic and health related issues. Therefore, informing that may
2
"Monetary Policy Definition - Investopedia."
https://www.investopedia.com/terms/m/monetarypolicy.asp.
3
https://www.investopedia.com/ask/answers/060415/how-much-global-beverage-industry-controlled-coca-
cola-and-pepsi.asp#:~:text=Since%202004%2C%20Coca%2DCola%20Company%20has%20been%20the
%20market%20leader,market%20cap%20of%20%24185.8%20billion.
4
https://www.fool.com/investing/2020/07/06/why-coca-cola-stock-has-fallen-19-so-far-in-2020.aspx
,Unit 1 Learning Aim C and D
struggle in the future to compete against competitors like Pepsi as they still lack the necessary
resources they require.
Corporate Culture
Corporate culture is the set of shared values, beliefs and standards of an organisation that influence
features work environment. For instance, it affects the way they communicate, decide, work, engage
and compete with competitors. This is crucial as having a good workplace culture helps an
organisation to be successful in improving brand reputation and attracting new talents as good
workplace culture helps employees spread the message to people.
Coca-Cola 's workplace culture is to give every one of their customers an experience they'll love
forever. This is because they believe that their brands are admired for what they do, but they're
bought to make people feel special such as a reward for hard work and achievement or the
embodiment of dreams. They also hold that their customers have high expectations so they simply
have to lead their profession through delivering great products, in the experience’s customers have
and positive part of the society around them. In order to maintain these standards, Coca-Cola aims
for the highest standards possible in the way they work and in the quality of their products.
5
Overall, the employees who work for Coca-Cola have a positive relationship as they are interested in
working in the best place workplace. Evidently, this has been proven by 81% of employees
recommending others to work for Coca-Cola. This is good as it shows that the relationship between
the employees and the organisation are incredibly well. This influences Coca-Cola to keep up their
progress by introducing an open survey for employees, to make sure they're an attractive employer.
Corporate Social Responsibility
Corporate social responsibility otherwise known as CSR is to assure organisations handle their
business in a humane way. This is done by them being socially accountable for social, economic,
environmental impact whilst acknowledging human rights. This usually includes activities such as:
working in local communities, socially responsible investing, Improving links among workers and
clients and Environmental protection and sustainability 6.
5
https://fr.glassdoor.ch/Reviews/The-Coca-Cola-Company-Reviews-E161.htm?countryRedirect=true
, Unit 1 Learning Aim C and D
Likewise, Coca-Cola works with expert organisations around the world to create opportunities for
communities facing social, economic and environmental challenges. They do this by many ways such
as working with Recycling water7, to ensure that they’re returned cleaned back to communities and
nature from local business or initiatives. This is good as it shows that they have concerns about
water pollution and are taking important actions to reduce their water footprint in order to make
the world a healthy and friendly environment. By doing this, it would improve their brand reputation
as they are working really hard to make their manufacturing plants safe and non-polluting for the
environment.
Furthermore, giving access to safe water at home means families can remain healthier and can
spend more time at school and work so that families can improve their education and future
prospects and incomes.
P5 – Select a variety of techniques to undertake a situational
analysis of a given organisation
PESTLE
A PESTEL analysis is an acronym utilised to recognise the key features of the external environment
facing an organisation.
Political
Political factors can impact a business by making the market environment more or less friendly for
that business. Typically, governments have a great deal of power over businesses and many times,
there is not much that businesses can do about it.
Taxation
Taxes are imposed by the government so that they can make money and control society by
discouraging certain activities. Hence increasing the sugar tax would prevent, Coca-Cola 's
consumers to reduce sugar consumption as they would have to pay more in taxes. This is bad for
Coca-Cola as recent figures from the Beverage Daily showing Coca-Cola Classic sales volumes in
Europe decline by 1% over the last three months due to the impact of new soft drinks industry
taxes8. In contrast, this is good as it helped Coca-Cola Zero Sugar grow by 18.5%, with retailers
increasingly shifting space over to the sugar-free variety which mean they wouldn’t be affected by
the sugar tax.
6
"What is corporate social responsibility? | The University of Edinburgh." 3 Jul. 2017,
https://www.ed.ac.uk/careers/your-future/options/occupations/csr/what-is-csr. Accessed 20 Jan. 2019.
7
https://www.coca-colacompany.com/sustainable-business/water-stewardship
8
https://www.beveragedaily.com/Article/2018/10/29/Sugar-tax-knock-for-Coca-Cola-Classic-in-Great-Britain-
but-Zero-Sugar-up
