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External/internal Factors Paper (coke)

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Autor:   •  June 18, 2011  •  Research Paper  •  1,965 Words (8 Pages)  •  1,667 Views

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External/Internal Factors Paper (Coke)

Plenty of factors, both internal and external impact the planning function for management within an organization. Regardless of size, age, revenue, product, or service, planning is the most fundamental and important component for management. By no means is the Coca-Cola Company an exception. Arguably, Coca-Cola is the most recognized, most popular, as well as the biggest-selling soft drink in history. Synonymous for Coke, the company produced nearly 550 million servings in 2007 selling other brands such as Sprite, Dasani, Bacardi, Fanta, Minute Maid, and Powerade generating a net operating revenue of $28.9 million. (Isdell, 2007). This paper will examine 4 major internal and external factors that impact managerial planning; globalization, technology, diversity, and ethics. In addition, will explain how managers can use delegation to manage the impact that these factors have on the four functions of management.


In a literal sense, one can simply define globalization as international integration; to take a product or service across oceans and cross cultures. The Coca-Cola brand has been built up for over a century and is recognized in over 300 countries. Nearly all corporate executives wish to take their product global. Essentially, well planned and well managed globalization creates name recognition and generates revenue.

Becoming a small fish in a gigantic pond creates a new series of problems. There is no such thing as a local problem in a global market. A problem overseas can spread like wild fire scaring stock holder and investors around the world.

In 1999 Coca-Cola experienced the flip side of globalization. The soft drink giant was hit with a heath scare that rocked Europe. France, Luxembourg, Belgium, and the Netherlands pulled cans off its shelves after reports of possible contamination. Consumer problems that had started in Belgium raced around the world ruining the world's most powerful brand name affecting its stock price on Wall Street.

"[The value of Coca-Cola's brand, built up over more than a century, can be shaken as suddenly and capriciously as the Thai baht or the Indonesian ringgit. That is what globalization means. Companies, like currencies, are vulnerable to instantaneous flows of rumor. American multinationals are often in the driver's seat in this global marketplace, but they can occasionally get crushed under the wheels, too.]" (Ignatius, 1999).


From high tech developments to creative ideas, today's technology is constantly improving and has a definite impact on management. Internally management strategies are changed due to advances in technology and externally technology has forced management to create different marketing strategies. When looking at the Coca-Cola Company there are not many options in upgrading their product with technology. Considering they produce drinking products technology can only do so much, so managers must use technology to create ways to keep consumers purchasing their product. A new idea that the Coca-Cola Company has put into effect is the Coke rewards program. With this program management has developed a way to use technology to help reward people, and keep them buying their products. For each Coca-Cola product that is purchased you receive a certain amount of rewards points, depending on the value of the item purchased. For example, if you purchase a twelve pack of any Coca Cola product you will receive ten rewards points allowing you to purchase items online, and if you bought a 32 pack you would receive 25 rewards points. These rewards are available online and vary from t-shirts to electronics; you can even enter to win vacations. One of the newer advances in technology allows you to exchange your Coke rewards points into music downloads that can be transferred to your portable mp3 device, such as an iPod. Due to the increasing advances in technology, management must strive to come up with new ideas that can be compatible with modern technology. When a new high tech item comes out that is highly popular within the consumer community Coca-Cola's management team is impacted internally and externally. Internally they must find a way to relate their product to these high demand high tech devices, and externally they need to find ways to link it out into the public, keeping consumers interested in purchasing their products.


"The Coca-Cola Company is built around two core assets, its brand and its people. These two assets give us the opportunity to keep our central promise: to refresh the world in mind, body, and spirit, and inspire moments of optimism; to create value and make a difference. By building an inclusive workplace environment, The Coca-Cola Company seeks to leverage its worldwide team, which is rich in diverse people, talent and ideas" (The Coca-Cola Company, 2007).

The Coca-Cola Company, is a multi-billion dollar company that operates in over two hundred countries worldwide. Its manufacturing plants, bottling and distributions channels have presence in multiple continents; Africa, Asia, Europe, Latin America, North America and the Pacific. With its multiple distribution channels, The Coca-Cola Company provides approximately 1.5 billion consumer servings per day. Currently, The Coca-Cola Company employs over 90,500 people around the world. The Coca-Cola Company is a multinational, multilingual and multibillionaire company.

Brief History

It all started back on a regular afternoon, in the year 1886 in Atlanta, Georgia, when a pharmacist named John Pemberton, by curiosity decided to stir up a fragrant, caramel-colored liquid (syrup) and was combined with carbonated water. This drink, named Coca-Cola, was carried over to a near pharmacy, Jacob's Pharmacy, and was first sold for .05 cents a glass. For the first year, Pemberton sold only 9 glasses a day. Pemberton past away in the year 1888 without ever knowing that the miracle syrup he had created would be a success.

Between the years of 1888-1891, a business man named Asa G. Candler purchased the rights to the miracle syrup for $2,300. Mr. Asa G. Candler took Coca-Cola into a business dimension. He started his distribution channel with local pharmacists and promoted the drinks with complimentary taste coupons and marketed the same with clocks, urns and calendars with the Coca-Cola brand. It was until 1894 that Coca-Cola drinks were bottled for the


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