Question

short essay where i need to identify the  external and internal elements for coca cola company and how its affecting the organizational design

Answer 1

Coca cola is the world's most sold beverage company with market expansion over 200 countries. It was established in 1886 which markets more than 500 brands and over 3300 beverage products till date.

In every organization there are different kinds of factors that affects organizational design. They can be divided into two parts- Internal and external. In coca cola company internal factors can be identified and analysed through the Porter's five forces and external forces with Diamond.E 's model.

Internal factors in accordance with porter's five forces analysis-

Threat of new entrants- Coca cola faces lots of competition in soft drink industry but threat of new entrant is very low as entering into this industry costs great amount of capital investments and Coca cola deals in more than 500 brands product which provides good substitution option. But nowadays consumers are getting health conscious and they are ditching soft drinks for healthy juices and medicinal beverages. And this lead to new entrants rising into the industry slowly. Coca cola should find the continuity in developing its brand loyalty worldwide to convince consumers.

Competitive rivalry: The biggest rival of Coca cola is Pepsico. Both of them are the most intense competitive rivals of the industry. They fight for winning the market share. According to Porter, this kind of high rivalry leads to limit the profitability in the industry.

Power of the buyers: for Coca cola buyer's power is highest.They always play most significant role in company's strategies and the process.

Power of the suppliers: Supplier's power is also very high in the company as if they start boycotting the product company will be finished.

Barriers to entry: Main competitors of the coca cola are: Dr. Pepper, pepsico,and nestle.Coca cola has admitted that it faces huge competition from big global units as well as local participants. According to porter, economies of scale on supply side obstruct the entry by compelling new entrants to enter the market at large scale. So we can say that this industry is prevented from entry of new entrants as it puts barrier in form of supply side on scale economies.

External forces in accordance with Diamond's model analysis

Management preferences

Organization- under this leadership, unique features, structure of the coca cola company is to be identified. This company has over 300 bottling partners worlwide and enjoys one of the best channel of distribution.Its bottling partner also serves customers closely so that they can help in strategizing at local basis.

Resources:According to Diamond, resources should keep growing and innovating.Coca cola has utilize its resources like shareholders, investors etc to develop bio friendly products and also started so many programmes to prevent environment exploitations.They know very well that their product can be made only by using natural products and if they become vanished from nature they could not make the production anymore.