Strategic Management: External Analysis

External Environment Analysis

The Coca-Cola Company owes the success of its internal operations to its principles of corporate responsibility . The firm has incorporated an apt ethics program this will guide their employees , and ensure them growth achievement , and satisfaction for their jobs . In to make this possible , The ideology of corporate responsibility is moderated and promulgated by the Public Policy and Corporate Reputation Council . The Council is comprised by a group of senior managers from each beverage and bottling company in the industry . It ascertains the risks and opportunities that each

company in the industry encounters . The PPCR Council advises beverage companies in their employee management and operations . Feasible business strategies are generated in to achieve growth and progress for beverage companies like the Coca-Cola Company (The Coca-Cola Company ,2008

The firm believes there is no Coke without the presence of its prolific employees , which is the major force behind more than satisfactory results for the growth and progress of the company . Its operations are bolstered by innovative thinking , unique perspectives , and operational excellence of the workforce , which sustains profit margins of the firm as well as its image . With this in mind , the company recognizes the crucial role of its workforce plays in its worldwide operations . The Coca-Cola Company puts a premium on job satisfaction . The firm ensures that the Coca-Cola workplace is an environment where people can generate excellent input and augment their performance while enjoying what they do (The Coca-Cola Company ,2008

Porter 's Five Forces Analysis

Supplier Power

Coca-Cola 's suppliers have been clamoring for increased prices for raw materials used in manufacturing their products . Usually , these suppliers are responsible for the prices of raw materials to increase . Suppliers have gained the notoriety of manipulating the cost of raw materials which generates a deliberate effect on the firm 's part . Suppliers are more manipulative whenever the number of suppliers is low . This gives the handful of suppliers to raise the price of raw materials , which in turn leaves firms line Coca-Cola 's no further options to purchase commodities of lower cost . An international brand like Coca-Cola 's is usually responsible for improving the working conditions within their factories (Foust , 2006 . The firm provides the much-needed technical assistance , which help augment the performance of both factory workers and shop floor employees

Buyer Power

Buyer power is also considered the spending capacity of the consumer . In the athletic shoe industry , the buyer power is strong . This aspect simply states that the buyer or the consumer has always has a say ' on the price of particular good . Furthermore , buyer power is considered crucial due to the fact that it has a deliberate impact on the industry However , softdrink companies like Coca-Cola 's has a discreet mutual arrangement regarding the aspect of buyer power . These intangible mutual contracts between the firm and its consumers have been apparent for quite some time now (Foust , 2006 . Firms have been empowering consumers to augment their buyer power . Buyer power has a...