Businesses operate on a widerange of different environments.
The functions of businesses vary depending onthe type and scope of the business. Businesses and organisations have differentrelationships with their stakeholders and these different environmentsinfluence and shape the businesses decision making.There are different types ofsectors in business organisations. The different type of sectors are Public,Private and legal structures which includes sole trader, partnership andprivate limited company (LTD)Public sectors are mostly owned and operated by the government and toprovide services for its people. Some of example of a public sectororganisation is Schools, Libraries, Healthcare and Hospitals.
PrivateSectors when the business or an organisation is run by individuals orcompanies, rather than the government. The aim of a business inthe private sector is to make a profit. Unlike public sector, privatelimited companies are small- to medium-sized businesses that are often run bya family or small group of owners. Some of example of a private sectororganisation is Designers, Developers, Plumbers, and Repairmen etc.
Sole trader is when a person is its only owner of a business,that person is entitled to keep all profits after tax has been paid but liablefor all losses.A partnership business iswhen a business is owned by two or more people. Examples of professionals whomay go into partnership together are doctors, dentists and solicitors Private limited company alsoknown as LTD is a type of privately held small business. Private limitedcompany limits owner liability to their shares. This is mostly up to 50shareholders.Inthis assignment I will be attempting to explain 2 different types and sizes ofbusiness that compete with the multinational company Coca Cola.
My main company is Coca Cola.Coca Cola is known and recognized by 94% of the world’s population. The Coca-Cola Company isranked on the list of the top organizations for multicultural businessopportunities.
Coca-Cola in GreatBritain is responsible for 20 brands and more than 80 drinks. There are around134 people employed at the London headquarters. There are 6 manufactures inGreat Britain and 4,000 people employed by Coca-Cola. This information wasfound from the Coca Cola website The 2 companies that are competing with Coca-Cola are Irnbru and Ribena.Irn Bru is a Scottish soft drink.
Somemarketing campaigns have kept it as the number one selling soft drink in Scotland.Irn Bru competes with some of the global brands such as Coca-Cola. IrnBru is one of the most popular soft drink in Scotland, with Coca-Cola comingsecond most popular; however by competition between the two brands they havebrought their sales to the same levels. Irn Bru is also the 3rd best sellingsoft drink in the UK, after Coca-Cola. Ribena my second competitor isalso one of the the number 1 juice drink brand in the UK, Ribena has been lovedby the nation for over 75 years. This drink is made from 100% British Blackcurrants.Ribena had a campaign in 2015 they had a funky re-launch with a campaign thatfocused on the pure blackcurrant taste which made the customers connection withthe brand even more.All 3 of these organisationssell drinks worldwide.
The difference between Irn Bru and the other 2 drinks is that they only has one flavoured drinkand packaging for its bottle and cans is orange with blue and white writing. Whereaslike Coca-Cola Ribena has different flavours and packaging according to itsflavours, like blackcurrant is purple, Strawberry is red. Out of the 3 drinksRibena is healthiest and parents will by for their kids.An organizational structure isthe way and extent in which the roles and responsibilities are delegate to. Thisis to controlled and co-ordinated how the information is used between differentparts of management. It refers to the pattern of the relationships amongindividuals and department in an organisation. There are different types oforganizational structures. This will include a hierarchical, flat, matrix, lineand staff, decentralised and divisional organization structures.
Coca-Cola and the other 2drinks, Irn Bru and Ribena, may adopt a functional structure. Coca-cola and theother 2 drinks adopting a functional structure to its business have its advantagesof clear authority. This allows each employee to concentrate on theirparticular mission and task within their job. The disadvantage about this is thatyou can end up with departments that you don’t really talk to, or an individualthat you might not talk to which will effect you carrying out your task and to cooperatewell each other.
This means a customer might get transferred from department todepartment if this problem does not get solved or it does not relate to oneparticular department or function.Coca Cola and the other 2organisation using a matrix structure in their business will help them a lot bygiving them flexibility in business function. In a matrix structure, forexample each employee in Coca Cola and the other 2 organisation Irn Bru andRibena will have people who work in a function-based department, such as therewill be someone in the marketing or finance department can be assigned to a projectswhich can be under different managers or can be teamed up with employees whohave different functions or different department. This structure will helps Coca-Cola,Irn Bru and Ribena by helping them to adapt the organizational function tochanging their organizational needs. However the disadvantage about this isthat the procession of command in a matrix may become overcast and conflictedby all departments working for a different department where they might not haveknowledge with.Human resources function inCoca-Cola, Irn Bru and Ribena will be for them to be able recruitment, selection,training their staff members who join or are already working for them. Thisdepartment helps and exceed their employee to use their maximum work efficiencyand skills in order to achieving their organisational objectives.
Development and Research functionis used by when Coca-Cola, Irn Bru and Ribena in order to do researches and to developmenttheir different department within the organisation. This helps employees to useold features in to make new features, creating new and better products for its customers,also to improve their production methods, and to create more effectiveprocesses. All these functions help Coca-Cola,Irn Bru and Ribena to improve their business and help to gain customers asdifferent organisation functions has its different purpose.Macro environment which includeexternal factors which are not in the control of Coca Cola, Irn Bru and Ribena.
This effects in them making decisions, their performanceand their strategies that they use for their organisation. Some of the externalfactors will include economic, legal, cultural and social factors andtechnological changes. Some example of macro environmental factors can be the changein the consumers taste and preferences, the changes with the interest rates, thechange with the government policies. Coca-Cola, Irn Bru and Ribena will beeffected by all of these factors.
Macro environment factorsinclude:EconomicFactors: Economic factors are broad in range; it is a mixture of nationaland international environment. Business organisations are working under complexeconomic environments which effect both the decisions related with the organisation’sproduction and the consumer’s decision making process.Political and legal factors:this includes changes in the government activities and changes in the legalpolicies and regulations. Political and legal factors affect marketingdecisions of the company. For example, the government might say that there is alow rate of taxation of retailer business then it impact positively on themarketing decisions of the organisation. Political forces include the possibilityof election and the possible outcomes whether the environment will be peacefulor there will be chances of political transition.EnvironmentalFactors: Every organisation may also use some natural resources for their businesssuch as forests, agricultural products and sea products etc. Furthermore, therecan also be some non renewal resources used by the business organisation.
The organisationshould take a decision after considering the availability of these resources.Social and culturalforces: this includes targeting customers of the organisation and theirtaste, preferences, customer’s attitudes and values etc. These factors changethe business organisation’s demand and supply. If the business produces suchgoods as per customer taste and their preferences then it affects the organisationin a positive aspect.Technological Factors: Thesefactors include new technologies and the knowledge required for the productionof goods and services. The technology and materials needed for the productionalso impact the business decisions of the organisation.
Companies such as Coca-Cola,Irn Bru and Ribena will face these macro environmental factors. These macroenvironment factors are usually out of the control of the business and consequentlyit is necessary that the management of the company is able to analyse theeffect of these factors so they could make good and productive decisions. Inconclusion, from this assignment it is clear how the different businessesoperate according to different environments and how their marketing and thebusinesses themselves have their similarities and differences due to thesestrategies. We have also seen how the environment of the company and theenvironment of the customers effect the sales rates and how it is not requiredfor a company to broaden their environment, an example of this is the use ofone flavour by the Irn Bru company compared to the variety of flavours sold bythat of Coca cola and Ribena, to increase its sales and keep up with thecompetitors.REFERENCES- Coca-colacompany. c2018. The Coca-Cola Company.
Online. 18January 2018. Available from:http://www.coca-colacompany.
com/brands/product-description- Coca-colacompany. c2018. The Coca-Cola Company. Online. 18January 2018.
Available from:http://www.coca-cola.co.uk/about-us/our-business.- Lrsuntory. 2016. Lrsuntorycom. Online.
18January 2018. Available from:https://www.lrsuntory.com/our-brands/ribena/- Wikipedia. 2018. Wikipediaorg. Online. 18January 2018.
Available from: https://en.wikipedia.org/wiki/Irn-Bru