The Role Of External Environment On The Business Environment

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Abstract For an organization to be successful it requires elements of the individual and the environment. If you take away either of these important elements that are required for success it becomes impossible to operate in the business environment. Regarding an organization, the environmental factors may be classified into different types-external and internal environment. The external environment has an indirect influence on the business that is uncontrollable by the organization. The internal environment, on the other hand, has a direct impact on the business. These internal factors that are controllable by the company can be altered or modified to meet the company’s needs. The beverage company that has had a major impact in the world…show more content…
Because of people awareness about health and obesity concerns, the company began to experience a downfall in the share sales. Coca-Cola comes with a long-term objective motto “double the revenue by 2020 and to fabricate scalable and premium innovative brands” (Deichert et al. 2006). Coca-Cola company states that strategy followed by the company is globally known and that it provides a diverse portfolio about the product. The company also enunciate that it provides multiple options for customers and inversely gained more market share. Therefore, the Coca-Cola organization is known to be considered one of the world’s largest beverage organizations. Segments of Coca-Cola’s External Environment The external environment of a company encompasses two areas, macro, and micro environment. In the Coca-Cola organization, the macro, environment contains external and uncontrollable factors. These influence the company’s strategies, performance and in how their decisions are made. The influences are political, social, technological and legal factors. Under micro environment, the factors affecting the business operations are market structure, market trends, competition, customers and suppliers (Fahad, 2013). The external environment of Coca-Cola was analyzed using PESTLE analysis of marketing tool. As stated before, the external environment of Coca-Cola company has impacted by various factors. Every angle of the Coca-Cola Company was assessed to define the whole external
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