Short and long term management


Management focuses on the entire organisation from both a short and a long-term perspective. Management is the managerial process of forming a strategic vision, setting objectives, crafting a strategy and then implementing and executing the strategy.

Management goes beyond the organisation's internal operations to include the industry and the general environment. The issues related to environmental scanning and industry analysis, appraisal of current and future competitors, assessment of core competencies, strategic control and the effective allocation of organisational resources.

An organisation have no control over the external environment, their success depends upon how well they adapt to the external environment. A organisation's ability to design and adjust its internal variables to take advantage of opportunities offered by the external environment, and its ability to control threats posed by the same environment, determine its success.

This assignment deal with the internal and external environment factors of Coca-Cola company. Founded in 1886, the Coca-Cola company is the world's leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups. The company's corporate headquarters are in Atlanta, with local operations in over 200 countries around the world.

Although Coca-Cola was first created in United States, its quickly became popular wherever it went. Our first international bottling plants opened in 1906 in Canada, Cuba and Panama soon followed by many more. Today, company produce more than 300 brands. More than 70 percent of our income comes from outside the U.S. but the real reason company are a truly global company that company's products meet the varied taste preferences of consumers everywhere.


The Coca Cola Company Corporate

The World's Most Powerful Brand

The company was forms to sell three main products.

  1. Pemberton's French Wine of cola ( later known as Coca-cola).
  2. Pemberton's India Queen Hair Dye,
  3. Pemberton's Globe Flower Cough Syrup.

The Coca-cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day.

Coca-Cola India President Profile A

tul Singh President and CEO, Coca-Cola India

He took over as the President &CEO, Coca-Cola India from 1st September 2005.

He hold s a MBA degree from Texas Christian University.

Prior to this assignment, Atul Singh was the President of East, Cental & South (ECS) China Division in January 2005.

Prior to joining Coca-Cola, Atul worked for the Colgate Palmolive Company for 10 years and held several roles including Country General Manager, Nigeria (1995-1998), CFO then General Manager, Romania (1992-1995) and Finance Manager, USA Body Care (1990-1992), Prior to Colgate, Atul worked as an Auditor with Price Waterhouse in New York


  • Coca-Cola
  • Thums-up
  • Fanta
  • Limca
  • Sprite
  • Maaza
  • Kinley
  • Georgia
  • Minute Maid


The ICFAI centre for management research state that the business environment can be define as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making or resource use and capabilities. Business environment is a set of political, economic, social, and technological (PEST) forces that are largely outside the control and influence of a business and that can potentially have both a positive and negative impact on the business.


PESTLE stands for:







A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. Sometimes two additional factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can easily be subsumed in the others. The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The result can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans.

POLITICAL factors: These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

It comprises political stability and the policies of the government. Ideological inclination of political parties, personal interest on politicians, influence of party forums etc, creare political environment. For example, Bangalore established itself as the most important IT \acentre of India mainly because of political support.

Like most companies, Coca-Cola is monitoring the policies and regulations set by the government. There are no political issues in this instance.

Economic factors: economic environment consists of economic factors that influence the business in a country. These include interest rates, taxation changes, economic growth, inflation and exchange rates. For example:

  • higher interest rates may deter investment because it costs more to borrow
  • a strong currency may make exporting more difficult because it may raise the price terms of foreign currency
  • inflation may provoke higher wage demands from employees and raise costs
  • higher national income growth may boost demand for a firm's products.

There is low growth in the market for carbonated drinks, especially in Coca-Cola's main market, North America. The market growth recorded at only 1% for North America in2004.

SOCIAL factor: it describes the characteristics of the society in which the organisation exists. Literacy rat, custom, values, beliefs, lifestyle, demographic features and mobility of population are part of the social environment. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario.

Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. There are basically three types of social factors: Demographic, social and lifestyle.

TECHNOLOGICAL factors: It includes the level of technology available in a country. It also indicates the pace of research and development and progress made in introducing modern technology in production. Technology provides capital intensive but cost effective alternative to traditional labour intensive methods. In a competitive business environment technology is the key to development.

New technologies create new products and new processes. Mp3 plyaers, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. There developments can benefit consumers as well as the organisations providing the products.

As the technology advances, new products are introduced into the market. The advance in technology has led to the creation of cherry coke in 1985 and diet coke in 2005 but consumers still prefers the traditional taste of the original coke.

ENVIRONMENTAL factors: environmental factors include the weather and climate change. With major climate changes occurring due to global warming and with greater environment awareness, the growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars ) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities.

LEGAL factors: these are related to the legal environment in which firm operate. Legal changes can affect a firm's costs (for example if the law affects the likelihood of customers buying the good or using the service).

Different categories of law include:

  • Consumer laws
  • Competition laws
  • Employment laws
  • Health and Safety legislation

Organisation is responsible for setting environmental strategy across our business operations, developing environmental standards and programs and managing of coca-cola company performance. From Pestle government, non government organisations and academia provides counsel to our management on environmental issues, the views of external stakeholders and our environmental policies, programs and performance.


In sectors where technological and production processes are homogeneous, extra weight is placed on standardisation of products as a prerequisite for success. As part of its vision that Coke should taste the same around the world, Coca-Cola has chosen to standardise its product and manufacturing process.

The knock on effects of this are more streamlined procedures and greater cost efficiencies. It is worth noting levitt's argument that companies' which opt to produce an assortment of products serving different customer segments would be unable to survive globalisation due to inefficiencies in their operation.

Coca-Cola Company Organization
  • It is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world.
  • Established : 1886
  • Ranking: own 4 of the world's top 5 nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta.
  • Company Associates:90,500 worldwide (as of December 31,2007)
  • Operational Reach: 200+ countries.
  • Consumer Serving(per day): 1.5 billion.
  • Beverage Variety: Company offer more than 2,800 products including diet and regular sparkling beverages, and still beverages such as 100 percent juices drink, water, sports and energy drinks, tea and coffees, and milk-and soy-based beverages.


In 2006, the World Environment Foundation (WEf) honoured Coca-Cola India with the Golden Peacoock Environment Management Special Commendation Award for its world-class environment practices.

  • Coca-Cola India won the Delhi Government's Bhagidari Award 4th consecutive year for its efforts in Water conservation and community development. New Delhi on February 3,2007 by the hon'ble Chief MINISTER of Delhi, India Smt Ms Sheila Dikshit.

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