Factors affected Coca Cola Company
Intro
The report includes the macro factors affected the Coca Cola Company and few of the articles I have examined from the various sources which I have stated in the end of the report in the bibliography. I have studied the articles are as follows:
Political Factors
Government plays a main role in manufacturing this product in term of regulation. and the government use to fine the company who break the law made by them. So for that reason Non-alcoholic beverages fall within the food category under the FDA (Food and Drug Administration)
The following article is from (http://www.grist.org/article/2009-12-11-employees-rage-against-coke-machine-copenhagen-yes-men/ ) in which in press conference held in City Hall Square, at least 20 people took pledge for the rest of my living days will never, ever, drink Coca-Cola.
Grist, "Employees* rage against the Coke machine in Copenhagen," By the Yes Men, December 11, 2009
There was an issue on coca cola that to of there employs had urged people to not to drink soft drink . so because of that the company was came in to press conference. In the Hopenhagen LIVE area in City Hall Square
Non-alcoholic business environment also affect due to political factor.and in this they include pricing pressures and from this they have to gain and maintain the shares in the global market as compare to there competitors.
Economic Factors
There was a time when US economic was strong and most of its parts were doing well. However, things changed. Most economists loosely define a recession as two consecutive quarters of contraction, or negative GDP growth. On Monday 26, the government officially declared that the U.S. has been in recession since March. The following is an article from (http://www.commodityonline.com/news/Recession-takes-the-fizz-out-of-Coke-Pepsi-in-USA-12231-3-1.html)
Recession takes the fizz out of Coke in USA
The article was about the severe demand slump for the liquid beverage business of Coca Cola in North America due to economic slowdown. Coca Cola has reported a 14% growth in third quarter earnings. The chief executive of Coca Coal, Mr. Kent said that the growth in the International operations, in particular the emerging markets, more than the challenges that they addressing in North America.
While on other hand, In India, Coca-Cola's business grew by 31% between January and March 2009. In 2008, sales revenue increased by 7 percent in Brazil and 15 percent in Turkey.
Social Factors
Coca-Cola Calls On Bloggers For Global Social Media Campaign
The article is about to socialize with the help of the widget a social media campaign that will send three bloggers to over 200 countries. The campaign called "Expedition 206" is part of the beverage makers Open Happiness marketing effort launched at the beginning of the year. Coca-Cola has selected nine finalists and is allowing fans to make the final decision by voting for their favorite candidates on the Expedition 206.
Moreover every year Coca Cola donates 1% of their profits to charity in Spain and it creates a friendly company image.
Technological Factors
The company development depends on the technology they use and it help the company to bring the level of the company to the more than the expected.
The Coca-Cola team decided it was time to derive more performance from the business-critical SAP applications, while driving down hardware and software costs. Instead of upgrading Oracle, the team decided to introduce IBM DB2. "By choosing to implement DB2 compression right away, we have reduced the database size by around 40 per cent. This gives us faster backup and reduced storage costs, and makes the SAP technical upgrades easier and quicker." Andrew Juarez, SAP Lead Basis, Coca-Cola Bottling Company Consolidated.
The Coca-Cola team decided it was time to derive more performance from the business-critical SAP applications, while software and hardware cost. They started to bring new technology instead of upgrading. They introduce IBM DB2. Through this system they reduce the database size by around 40 per cent .through this they they reduce there cost and it give fast backup and it make SAP technical upgrades easier and quicker." Andrew Juarez, SAP Lead Basis, Coca-Cola Bottling Company Consolidated
Legal Factors
Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process.
Coca-Cola is in trouble in India. Ever since the first allegations arose in Kerala, India, of water scarcity and polluted water resulting from its bottling operations, Coca-Cola's public relations department has churned out denials, insisting that the charges are false and that it is the "target of a handful of extremist protesters."
Environmental Factors
Environmental analysis examines the local, national and world environmental issues. According to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the environmental laws imposed by the government.
- We've made an investment of more than $60 million to build the world's largest plasticbottle-to-bottle recycling plantand to support recycling in the U.S.
- For ourcold drink equipment, we've developed an innovative energy management system that delivers energy savings of up to 35%.
- We've set an aspirationalgoalto return to communities and nature an amount of water equivalent to what we use in our beverages and their production.
The Organizational Business Strategy (tesco)
Introduction of the TESCO and its profile
Tesco plc is a UK-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share, with profits exceeding £3 billion. It is currently the third largest global retailer based on revenue, behind Wal-Mart and France's Carrefour, but second largest based on profit, ahead of Carrefour. Originally specialising in food and drink, it has diversified into areas such as clothing, consumer electronics, financial services, telecoms, home, health and car insurance, dental plans, retailing and renting DVDs, CDs, music downloads, Internet services and software.
Formation
First Tesco self service, St Albans, England
Formalization is the extent to which rules and procedures are written out and enforced. Those organizations with high formalization, like bureaucracies, have strict enforcement of many set written rules and regulations. Organizations with low formalization, like organized anarchies, have very few, if any, written rules, and have a looser organization that is less stable.
Management and strategy changes
Founder Jack Cohen was an enthusiastic advocate of trading stamps as an inducement to shoppers to patronise his stores. He signed up with Green Shield Stamps in 1964 and became one of the company's largest clients.
In 1973 Jack Cohen resigned and was replaced as Chairman by his son-in-law Leslie Porter. Porter and managing director Ian MacLaurin abandoned Cohen's "pile it high, sell it cheap" philosophy, which had left the company "stagnating" and with a "bad image". In 1977 Tesco launched "Operation Checkout", which included the abandonment of Green Shield stamps, price reductions and centralised buying for all stores. The result is a rise in market share of 4% in two months Tesco introduced a loyalty card, branded 'Clubcard', in 1995 and later an Internet shopping service. As of November 2006 Tesco was the only food retailer to make online shopping profitable. In 1996 the typeface of the logo was changed to the current version with stripe reflections underneath. Terry Leahy assumed the role of Chief Executive on 21 February 1997, the appointment having been announced on 21 November 1995.
Corporate strategy
According to Citigroup retail analyst David McCarthy, "[Tesco has] pulled off a trick that I'm not aware of any other retailer achieving. That is to appeal to all segments of the market. One plank of this strategy has been Tesco's use of its own-brand products including the upmarket "Finest", mid-range Tesco brand and low-price "Value" encompassing several product categories such as food, beverage, home, clothing, Tesco Mobile and financial services.
Beginning in 1997 when Terry Leahy took over as CEO, Tesco began marketing itself using the phrase "The Tesco Way" to describe the company's core purposes, values, principles, and goal This phrase became the standard marketing speak for Tesco as it expanded domestically and internationally under Leahy's leadership, implying a shift by the company to focus on people, both customers and employees.
SPECIALIZATION
Tesco plc is a UK-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share, with profits exceeding £3 billion. It is currently the third largest global retailer based on revenue, behind Wal-Mart and France's Carrefour, but second largest based on profit, ahead of Carrefour. Originally specialising in food and drink, it has diversified into areas such as discount clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music downloads, Internet service, consumer telecoms, consumer Health Insurance, consumer Dental Plans and budget software. It is also entering the housing market.
Hierarchy
Its vertical, horizontal, or geographical organization determines complexity. Vertical hierarchies are defined by how many levels deep an organization is. A complex organization has many levels of successive power and expertise, where as a simple organization will only have a few. Horizontal complexity is defined by the way in which tasks are subdivided. Highly trained individuals can be given a wide range of tasks to perform, or the tasks can be subdivided down to many short duration tasks that can be performed by non-skilled workers. Activities and personnel can be arranged geographically by vertical or horizontal hierarchies. The breadth of geographical disbursement dictates the complexity of the organization in this regard.
Technology
Tesco Tech Support logo
Tesco acquired a small I.T. support company called The PC Guys in 2008, and were able to launch Tesco Tech Support in December of that year. Teams of Advisors were put into many of the larger Extra stores with the sole job role of answering technical questions on Tesco's range of electrical products. They also are responsible for advising customers on extended warranties and a range of payment plans on all electrical goods over a certain amount.
Internet operations
Tesco operates a grocery homeshopping service, as well as providing consumer goods, telecommunications and financial services online.
In May 1984, in Gateshead, England, the world's first recorded online home shopper purchased groceries from her local Tesco store in the world's first recorded online shopping transaction from the home.
External environment
United Kingdom-based Tesco PLC, which owns and operates Southern California-based Fresh & Easy Neighborhood Market, today reported record corporate sales of £54.3 billion (British pounds) and record annual gross profits of £3 billion for its 52-week fiscal year ended on February 28, 2009.
The UK-based global retailer also said today it's new fiscal year, which began on March 1, is looking good thus far, reporting that sales are up 9.2% in the first six weeks. (See the links at the end of this piece for Tesco's detailed reporting.)
Culture
Over 220,000 people worldwide contribute to our success. People who push themselves each and every day to achieve demanding goals. People who are motivated by being part of such a successful team, but who are never content to rest on their laurels.
The culture is one of creativity and fresh thinking, with the space to challenge convention and the encouragement to take on responsibility. It's not something we've engineered, it's simply evolved through the talented individuals that make up every area and function of the organisation.
Professionalism
Our 470,000 employees serve our millions of customers around the world. We look after and develop them so they can look after our customers. From career development and rewards to community engagement, we aim to be a great place to work.
Goals
Tesco PLC has a Company Mission Statement, which is also represented as an image. This statement is at the centre of all, which Tesco do.
"Creating value for customers, to earn their lifetime loyalty."
Tesco have two values that force the way they do business, which are:
No one tries harder for customers:
- Understand customers better than anyone
- Be energetic, be innovative and be first for customers
- Use our strengths to deliver unbeatable value to our customers
- Look after our people so they can look after our customers
Treat people how we like to be treated:
SIZE
The Group's principal activity is food retailing and associated activities in the UK, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia,Turkey, Thailand, South Korea, Malaysia, Japan, China and the United States. The Group also provides retail banking and insurance services through its subsidiary Tesco Personal Finance. The Group's other operation focuses on retail, purchasing, property investment, property development, personal finance and other activities. On 19-Dec-2008, the Group acquired the remaining 50% of the share capital of its joint venture Tesco Personal Finance Group Limited (TPF). On 30-Se-2008, the Group acquired 100% of the share capital of Homever, a retailer in South Korea. On 31-Jul-2008, the Group acquired the remaining 34.5% of the share capital of Dobbies Garden Centres PLC (Dobbies), a retailer in the United Kingdom.
CONCLUSION
From Tesco Plc and coca cola plc I have learnt core disciplines of marketing and management.As a manager, I require to develop relationship with employees and customers.I had an overall view of organisational structure and its strategy.Tesco Plc is one of the well managed and successful company it developed my professional managerial skills which I can use practically.It will help me and guide me through in a Service Sector Management.
REFERENCES
- http://www.ivoryresearch.com/sample5.php (Mintel Report)
- www.tesco.com/corporateinfo
- http://www.corporatewatch.org.uk/?lid=253#structure
- http://freshneasybuzz.blogspot.com/2009/04/tesco-plc-reports-record-sales-and.html
- http://www.tescoplc.com/plc/corporate_responsibility_09/people
- http://www.oppapers.com/essays/Swot-Analysis-Tesco-Plc/60872
- http://www.tescocorporate.com/plc/corporate_responsibility_09/approach/cr_strategy/
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