Pest Analysis Of Coca-Cola
For this assignment I have been asked to do a SWOT (Strengths, Weaknesses, Opportunities, and
Threats) and a PEST (Political, Economic, Social, and Technology) Analysis. I have chosen to
do Coca-Cola for my assignment, as they are an international success and the market share leader
in their product area, which is very impressive. I believe the organisation structure and their
planning is the key to their success.
The reader of this assignment will find a brief account of Coca-Cola, a diagram and evaluation of
Coca-Cola’s organisational structure. There is also a complete detailed SWOT and PEST
analysis; with the analysis what I personally believe Coca-Cola should do to adapt or change to
improve the company. Finally the reader
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A tall hierarchical structure has
many levels within the business, each level is one above the other. At each stage in the chain,
one person, usually a manager has a number of workers directly under them, within their span of
control. The chain of command is typical a pyramid shape. (Management, 2014) Coca-Cola uses
a geographical departmentalisation. Their company is broken up into regions, European, North
America, Latin America, Pacific and Eurasia - Africa division. The span of control is the number
of subordinates (workers) a manager can directly control; this number varies depending on the
business. (Garvey, Bus. Management, 2014) Coca-Cola has a large span of control as Coca-Cola
is an international business, each manager has entire section to control, e.g.: the finance section,
this section looks after all of the company finance needs, so they have many subordinates to
control which can be good if there is a good management team in place.
Decision making is the most integral part for Coca-Cola, the executive committee makes both
centralised decisions, the decision-making policy where authority resides at the top of
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Divisions and regions
operate as business unit teams, each having a director reporting to the division president.
(Business Studies.com, 2014) The diagram below illustrates the tall, geographically divided
Ella Shiels
organisational structure.
Ella Shiels
In my opinion I believe Coca-Cola is very well organised the staff can clearly identify where and
who they are within the business. They have divided the company up so well that Coca-Cola
does not have to get confused on what is happening around the world they have different areas
looking after each section they sell to; which is very good and very efficient of Coca-Cola so
they do not waste time or money on trying to get to around the world from America. Also by
doing this it is easier for them to trade within different trading groups like the European trading
group. They do not have to pay the extra taxes and tariffs they would have paid if they were
exporting from America. I also believe this structure has helped being the key to their immense
success.
Ella Shiels
SWOT Analysis
Strengths Weaknesses
● World’s largest market share in
beverage
● Strong marketing and
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