CHAPTER ONE
INTRODUCTION
Today world the environment changes of the organization/business are changing vastly and these are very challengeable. Presently the world economy is going down very pasty due to the various managerial problems and it has effected to go down the world economy. These effects has infected to our country economy and also effected to the many organization. Today the biggest challenge is how to ged rid off this economical crisis situation and government is implementing lot of method to to overcome the problem.
CHAPTER TWO
METHODOLOGY
AIMS AND OBJECTIVES OF THE STUDY
An organization defends on the environment in which it operates and the success of any organization is reducing from the way it responses to the environmental influences. Identify the different environment elements influencing and organization familiar to you. Also describe how particular organization responds to such environmental influences.
CHAPTER TREE
Organization
1. Organization which I selected for the assignment is the Coca Cola industry. Today the coca coal industry is the world wide famous industry and million of people are consuming this drink since long time. Thought several drinks come in to the present market like Pepsi coala, Fanta, Cream soda Etc, still the Coca Cola industry is keeping their sells in very high. Because the industry has won the environment challenges today and they have change their management system considering the present economical situation.
2. When discussing about the main environment challenges which faced by this industry, the following factors can be identified.
a. Economics factors
b. Social and cultural factors
c. Economics factors
d. International factors
e. Other factors.
Economics factors
3. Economics factor is the one of main environmental factor which effects to the Coca Cola industry. Under this category following point can be brought forwarded to highlight how this factor effect to this industry.
a. Raw materials
For any industry the raw materials are required for the production of the organization. The Prices of the raw materials which uses for the production is mainly effected to the product. In a situation of prices of material going up or down will effect to the industry. It might be affected to change the price of the Coca Cola.
b. Supplier conditions
Various suppliers provide difference type of raw materials to this industry. The condition which adopted by the supplier will also directly effected to the industry in many ways. As example, Contractor who provides bottle for the industry has been signed a agreement to provide bottle in a same rate for a five years. But in a situation of a reducing the price of bottle can not be added to the price of a Coca Cola bottle.
c. Income of the people
When the money is more with the men, they may tend to buy more bottles of Coca Cola for various purposes. Specially, if the prices of the arrack bottle are very law, the customers who drink Coca Cola with liquor buy more and more. But if the liquor price is very high, the people buy few and simultaneously the coco Coal demand also go down.
d. Increase or decrease the general price level of the same type of products
In a situation of increasing or decreasing the price of the same type of products of the market will directly affected to the Coca Cola products. If price of Fanta goes down, Coca Cola Company has to reduce the price of their products. If not the company will not be able to exists and their demand will be decrease .That is the influence can be done. Further this will effect to decrease or transfer more customer for another products.
e. Competitors
No of competitive products and their behaviors also can influence in to any product. As an example, the same products like Pepsi, Fanta, Mirinda etc can influence in to the coca cola products in many ways. As examples
a. Changing of price level of above products will effect to the Coca Cola products directly.
b. Other products may influence to the Coca Cola products by using the advertisement campaign.
c. Other benefits given by the same type of producers will also affect to the Coca Cola products. As an example, Fanta production may introduce to the market, when buying a bottle another bottle is given in free. In here the customers may tends to buy the Fanta instead of the Coca Cola. To overcome this, the Coca Cola industry also has to introduce a system to their products. As example Coaca Cola Company can start a competition among the customers.
Social and cultural factors
4. Generally in any organization, the social environment, such as human features, human habits, attitude, belief, different religious background and custom and manners may also influence.
a. Some time human habits can influence in to any organization. As an example, today some younger generation are used to drink Coca Cola with the lunch or during the meal time. This has become a habit of some people. There is a fact in the society said that Coca Cola is not good for health and not to drink. This fact badly effected to the Coca Cola industry and then the Industry has to launch propaganda to educate the people by using the electronic media, news paper or any other media.
b. Religious background
Religious background of the people also may influence in any organization. Some people may think that the Coca Cola drink may contains some amount of alcohol and they may avoid drinking the products. If this matter spread, the consumers may reluctant to drink. Then it will effect to the product. In this situation the company should start a campaign to educate the people on this matter.
c. Price of labour charges also a key factor which can influence any organization. If the labour or wages is very high, automatically the prices of the product will go up. In the Coca Cola industry, if the wages or labour charges are very high, then the product of a bottle will go up. When buying the items by the consumers, the prices might have gone up and customers may turn to buy another product.
d. For further understanding of the social influence, the following example can be highlighted .School children in Belgium became ill after drinking Coca-Cola. The Belgian government ordered a recall of all bottles of Coca-Cola and banned the sale of all related Coke products. In a rush to safeguard the health of their publics, the governments of Spain and France banned the sale of Coca-Cola soft drinks. However, other nations near Belgium, including Denmark, Norway, and Sweden, did not ban sales of Coke products.
Why did some nations rush to ban products made by Coca-Cola while other nations waited for more information about the crisis. One answer may be found in an examination of the cultural dynamics of these six nations. What we can understand by this example is how much explore the cultural variability, especially uncertainty avoidance and power distance, and to examine how it affects public response to crisis. An analysis of the national cultures of each of these countries showed that publics who live in nations that are high in uncertainty avoidance and power distance tend to react more strongly, and more quickly, to perceived threats.
International Factors.
5. Lot of international factors also can influence in any organization. The following factors which can influence the Coca Cola industry directly or indirectly.
a. Policies of the country who supply the raw materials to the industry.
Different countries adopt different policies when importing the materials to another country. Especially in the Coca Cola industry, except few materials, most of materials are exported from different country. Therefore, different taxes, various charges like loading, unloading from production to the arrival, in this situation the prices of these will effects to the price of the products. In this situation the company can sign agreement or can adopt any other method to obtain the materials in a fix rate for a specific period. Further some country may ban the exporting the Coca Cola due to various social and cultural behaviors. In this situation also, the industry may be influenced.
b. Launching new type of products on same product by the international companies in this country.
In this situation, the influence to the Coca Cola product may be will be varying as per the strength of the influence and the type of influence. It depends on the quality of competitor’s products, their price, and customer’s satisfaction. To avoid from this influence the Coca Cola Company has to adjust to the above influences by using various means like propaganda, advertisement campaign, adopting new marketing systems.
Technological factors
6. The technological factors also can influence the Coca Cola industry in many ways. If the industry cannot introduce much technological system to their production, the other companies will over take the company and they will catch the market very soon. As examples, Coca Cola has introduced different type of Coke in the same product .and also The Company has introduced some machine system which can provide Coke canes once money inserted.
7. Further, the new machine system and new improvised flavors can be used to uplift the production and taste of the Coca Cola with the help of the new technology method. That may influence the production and can influence the other same products which available at the market.
Political Influences
8. The political factors also the one of main factor which can influence any production. The decision, rules and regulation and policies which are introduced by the government may effect to the industry directly or indirectly. As the examples.
a. Increasing taxes on exporting raw materials of the Coca Cola will affect to increase the price of the production and it will effect for the sales of the products.
b. Various levies which imposed by the budget or the parliament also will effect to the production directly.
c. Different rules and regulation which introduce by the government will also effect to the products.
d. The various facilities which given by the government like raw materials free from taxes will effect to the products.
INTRODUCTION
Today world the environment changes of the organization/business are changing vastly and these are very challengeable. Presently the world economy is going down very pasty due to the various managerial problems and it has effected to go down the world economy. These effects has infected to our country economy and also effected to the many organization. Today the biggest challenge is how to ged rid off this economical crisis situation and government is implementing lot of method to to overcome the problem.
CHAPTER TWO
METHODOLOGY
AIMS AND OBJECTIVES OF THE STUDY
An organization defends on the environment in which it operates and the success of any organization is reducing from the way it responses to the environmental influences. Identify the different environment elements influencing and organization familiar to you. Also describe how particular organization responds to such environmental influences.
CHAPTER TREE
Organization
1. Organization which I selected for the assignment is the Coca Cola industry. Today the coca coal industry is the world wide famous industry and million of people are consuming this drink since long time. Thought several drinks come in to the present market like Pepsi coala, Fanta, Cream soda Etc, still the Coca Cola industry is keeping their sells in very high. Because the industry has won the environment challenges today and they have change their management system considering the present economical situation.
2. When discussing about the main environment challenges which faced by this industry, the following factors can be identified.
a. Economics factors
b. Social and cultural factors
c. Economics factors
d. International factors
e. Other factors.
Economics factors
3. Economics factor is the one of main environmental factor which effects to the Coca Cola industry. Under this category following point can be brought forwarded to highlight how this factor effect to this industry.
a. Raw materials
For any industry the raw materials are required for the production of the organization. The Prices of the raw materials which uses for the production is mainly effected to the product. In a situation of prices of material going up or down will effect to the industry. It might be affected to change the price of the Coca Cola.
b. Supplier conditions
Various suppliers provide difference type of raw materials to this industry. The condition which adopted by the supplier will also directly effected to the industry in many ways. As example, Contractor who provides bottle for the industry has been signed a agreement to provide bottle in a same rate for a five years. But in a situation of a reducing the price of bottle can not be added to the price of a Coca Cola bottle.
c. Income of the people
When the money is more with the men, they may tend to buy more bottles of Coca Cola for various purposes. Specially, if the prices of the arrack bottle are very law, the customers who drink Coca Cola with liquor buy more and more. But if the liquor price is very high, the people buy few and simultaneously the coco Coal demand also go down.
d. Increase or decrease the general price level of the same type of products
In a situation of increasing or decreasing the price of the same type of products of the market will directly affected to the Coca Cola products. If price of Fanta goes down, Coca Cola Company has to reduce the price of their products. If not the company will not be able to exists and their demand will be decrease .That is the influence can be done. Further this will effect to decrease or transfer more customer for another products.
e. Competitors
No of competitive products and their behaviors also can influence in to any product. As an example, the same products like Pepsi, Fanta, Mirinda etc can influence in to the coca cola products in many ways. As examples
a. Changing of price level of above products will effect to the Coca Cola products directly.
b. Other products may influence to the Coca Cola products by using the advertisement campaign.
c. Other benefits given by the same type of producers will also affect to the Coca Cola products. As an example, Fanta production may introduce to the market, when buying a bottle another bottle is given in free. In here the customers may tends to buy the Fanta instead of the Coca Cola. To overcome this, the Coca Cola industry also has to introduce a system to their products. As example Coaca Cola Company can start a competition among the customers.
Social and cultural factors
4. Generally in any organization, the social environment, such as human features, human habits, attitude, belief, different religious background and custom and manners may also influence.
a. Some time human habits can influence in to any organization. As an example, today some younger generation are used to drink Coca Cola with the lunch or during the meal time. This has become a habit of some people. There is a fact in the society said that Coca Cola is not good for health and not to drink. This fact badly effected to the Coca Cola industry and then the Industry has to launch propaganda to educate the people by using the electronic media, news paper or any other media.
b. Religious background
Religious background of the people also may influence in any organization. Some people may think that the Coca Cola drink may contains some amount of alcohol and they may avoid drinking the products. If this matter spread, the consumers may reluctant to drink. Then it will effect to the product. In this situation the company should start a campaign to educate the people on this matter.
c. Price of labour charges also a key factor which can influence any organization. If the labour or wages is very high, automatically the prices of the product will go up. In the Coca Cola industry, if the wages or labour charges are very high, then the product of a bottle will go up. When buying the items by the consumers, the prices might have gone up and customers may turn to buy another product.
d. For further understanding of the social influence, the following example can be highlighted .School children in Belgium became ill after drinking Coca-Cola. The Belgian government ordered a recall of all bottles of Coca-Cola and banned the sale of all related Coke products. In a rush to safeguard the health of their publics, the governments of Spain and France banned the sale of Coca-Cola soft drinks. However, other nations near Belgium, including Denmark, Norway, and Sweden, did not ban sales of Coke products.
Why did some nations rush to ban products made by Coca-Cola while other nations waited for more information about the crisis. One answer may be found in an examination of the cultural dynamics of these six nations. What we can understand by this example is how much explore the cultural variability, especially uncertainty avoidance and power distance, and to examine how it affects public response to crisis. An analysis of the national cultures of each of these countries showed that publics who live in nations that are high in uncertainty avoidance and power distance tend to react more strongly, and more quickly, to perceived threats.
International Factors.
5. Lot of international factors also can influence in any organization. The following factors which can influence the Coca Cola industry directly or indirectly.
a. Policies of the country who supply the raw materials to the industry.
Different countries adopt different policies when importing the materials to another country. Especially in the Coca Cola industry, except few materials, most of materials are exported from different country. Therefore, different taxes, various charges like loading, unloading from production to the arrival, in this situation the prices of these will effects to the price of the products. In this situation the company can sign agreement or can adopt any other method to obtain the materials in a fix rate for a specific period. Further some country may ban the exporting the Coca Cola due to various social and cultural behaviors. In this situation also, the industry may be influenced.
b. Launching new type of products on same product by the international companies in this country.
In this situation, the influence to the Coca Cola product may be will be varying as per the strength of the influence and the type of influence. It depends on the quality of competitor’s products, their price, and customer’s satisfaction. To avoid from this influence the Coca Cola Company has to adjust to the above influences by using various means like propaganda, advertisement campaign, adopting new marketing systems.
Technological factors
6. The technological factors also can influence the Coca Cola industry in many ways. If the industry cannot introduce much technological system to their production, the other companies will over take the company and they will catch the market very soon. As examples, Coca Cola has introduced different type of Coke in the same product .and also The Company has introduced some machine system which can provide Coke canes once money inserted.
7. Further, the new machine system and new improvised flavors can be used to uplift the production and taste of the Coca Cola with the help of the new technology method. That may influence the production and can influence the other same products which available at the market.
Political Influences
8. The political factors also the one of main factor which can influence any production. The decision, rules and regulation and policies which are introduced by the government may effect to the industry directly or indirectly. As the examples.
a. Increasing taxes on exporting raw materials of the Coca Cola will affect to increase the price of the production and it will effect for the sales of the products.
b. Various levies which imposed by the budget or the parliament also will effect to the production directly.
c. Different rules and regulation which introduce by the government will also effect to the products.
d. The various facilities which given by the government like raw materials free from taxes will effect to the products.
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