Assignment Brief

BA (Hons.) International Business & Finance

Academic Year 2019-20
Module Information:
Qualification: BA (Hons.) International Business & Finance

Module Code & Title: BAIBF 08001 Economic Environment for Business

Assignment Title: Group Report

Component Weighting: 40%

Due date:
Date of Issue:18/11/2019 Online Submission: 02/01/2020
Hard Copy Submission: 05/01/2020

To be filled by the student:

B00382208,B00382211,B00382215,
Student ID:
B00382224,B00382260,B00382200
IBF 19012012,IBF 19012051,
Serial Number as provided in the Assignment Docket : IBF 19012047,IBF 19012064,
IBF 19012007, IBF 19012021
Online Submission: 02/01/2020
Date of Submission:
Hard Copy Submission: 05/01/2020
*All work must be submitted on or before the due date. If an extension of time to submit work is required, a Mitigating
Circumstance Form must be submitted.

Has an extension been approved? Yes No

If yes, please provide the new submission date ….…/.…. /……., and affix appropriate evidence.

First Marker: Second Marker:

Agreed Mark: Refer: Yes / No

1
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use previous
page as your cover sheet and be sure to fill the details correctly.
2. This entire brief should be attached in first before you start answering.
3. All the assignments should be prepared using word processing software.
4. All the assignments should print in A4 sized paper.
5. Allow 1” margin on each side of the paper. But on the left side you will need to leave room for binding.
6. Ensure that your assignment is stapled or secured together in a binder of some sort and send the
Softcopy of your final document to assignment@successpoint.ae
7. The submission of your work assessment should be organized and clearly structured.
Word Processing Rules
1. Use a font type that will make easy for your examiner to read. The font size should be 12
point, and should be in the style of Times New Roman.
2. Use 1.5-line word-processing. Left justify all paragraphs.
3. Ensure that all headings are consistent in terms of size and font style.
4. Use footer function on the word processor to insert Your Student ID, Name, Subject, Module
code, and Page Number on each page. This is useful if individual sheets become detached
for any reason.
5. Use word processing application spell check and grammar check function to help edit your
assignment.
6. Ensure that your printer’s output is of a good quality and that you have enough ink to print
your entire assignment.
Important Points:
1. Check carefully the hand in date and the instructions given with the assignment. Late
submissions will not be accepted.
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Don’t leave things such as printing to the last minute – excuses of this nature will not be
accepted for failure to hand in the work on time.
4. A printed version of the assignment needs to be submitted physically along with a soft copy
mailed to the email mentioned above on or before the stated deadline.
5. You must take responsibility for managing your own time effectively.
6. If you are unable to hand in your assignment on time and have valid reasons such as illness,
you may apply (in writing) for an extension.
7. Non-submission of work without valid reasons will lead to an automatic REFERRAL. You will
then be asked to complete an alternative assignment.
8. Take great care that if you use other people’s work or ideas in your assignment, you properly
reference them in your text and any bibliography, otherwise you may be guilty of plagiarism.

2
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
 Statement of Originality and Student Declaration

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it
as my own without attributing the sources in the correct way. I further understand what it means to
copy another’s work.
1. I know that plagiarism is a punishable offence because it constitutes theft.
2. I understand the plagiarism and copying policy of the University of the West of Scotland.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspect of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct
way.
5. I acknowledge that the attachment of this document signed or not, constitutes my agreement
on it.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: Date: 02.01.2020

3
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
TASK

For an organisation of your choice, analyse the macro environment particularly the macro economic
factors affecting the performance of the organisation.

The report should include, but not restricted to the following:

 Introduction of macro environment

 Introduction of the chosen organization

 Analysis of the macro economic factors affecting the performance of the organization

 Conclusion

 Bibliography

Total word Limit: 2500

4
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
INDEX
 ABSTRACT

1) INTRODUCTION TO COCA COLA

1.1) MISSION,VISION AND VALUES OF COCA COLA

1.2) OBJECTIVES OF COCA COLA

2) INTRODUCTION TO MACRO ENVIRONMENT

3) MACRO ENVIRONMENTAL FACTORS AFFECTING COCA COLA

 POLITICAL FACTORS

 ECONOMICAL FACTORS

 SOCIO-CULTURAL FACTORS

 TECHNOLOGICAL FACTORS

 ENVIRONMENTAL FACTORS

 LEGAL FACTORS

 DEMOGRAPHICS

4) CONCLUSION

5) BIBLIOGRAPHY

Abstract
Study of this report helps the reader to know that how Coca Cola has achieved its current
market position. This report enlightens those factors that company has adopted during its long
journey of 52 years .This report includes the introduction and macro environment factors
affecting coca cola. The reader of this report can expect that after having complete study
he/she can certainly have a broader view the marketing environment of Coca-Cola, what are
the company’s external factors affecting Coca-Cola Company.

5
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
1. Introduction to Coca-Cola Company
The Coca-Cola Company is a global business enterprise and one of two main soft drink
sellers. The Coca-Cola Company was founded in 1892 and established its Headquarters in
Atlanta. The Coca Cola Franchise is the World’s biggest Beverage Industry. It dominated a
48% of the global Market share. In total the Franchise is responsible for over 160 different
beverages within a market consisting of 200 Countries.

1.1 Mission, Vision & Values of Coca Cola

The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape our
business in the future and move swiftly to prepare for what's to come. We must get ready for
tomorrow, today. That's what our 2020 Vision is all about. It creates a long-term destination
for our business and provides us with a "Roadmap" for winning together with our bottling
partners.

Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.

• To refresh the world...

• To inspire moments of optimism and happiness...

• To create value and make a difference.

Our Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

• People: Be a great place to work where people are inspired to be the best they can be.

• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.

• Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.

• Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

6
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.

• Productivity: Be a highly effective, lean and fast-moving organization. Our Winning

Culture Our Winning Culture defines the attitudes and behaviors that will be required of us to
make our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.

• Leadership: The courage to shape a better future

• Collaboration: Leverage collective genius

• Integrity: Be real

• Accountability: If it is to be, it's up to me

• Passion: Committed in heart and mind

• Diversity: As inclusive as our brands

• Quality: What we do, we do well

Focus on the Market

• Focus on needs of our consumers, customers and franchise partners

• Get out into the market and listen, observe and learn

• Possess a world view

• Focus on execution in the marketplace every day

• Be insatiably curious

Work Smart

• Act with urgency

• Remain responsive to change

• Have the courage to change course when needed

• Remain constructively discontent

• Work efficiently

7
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
Act like Owners

• Be accountable for our actions and inactions

• Steward system assets and focus on building value

• Reward our people for taking risks and finding better ways to solve problems

• Learn from our outcomes -- what worked and what didn’t Be the Brand

• Inspire creativity, passion, optimism and fun

1.2 Objectives Of Coca-Cola

The company has sales based objective .Everything else (marketing plan, advertising plan,
production etc.) is derived from this objective. Currently the company‘s objective is to
“Increase the volume of sales up to the maximum level as much as possible during the current
fiscal year.”

The company sets its objective keeping in view the past performance, Historical trends,
current market position, economic condition, macro environment and micro environment
factors, social values, market size and growth rate ,future expectations and predictions.

2. Introduction to Macro-Environment
The non-alcoholic beverages brand Coca Cola operates in the global environment. The global
environment subjects a corporation to several pressures. Today, the world market has grown
highly globalized. Companies are doing business across large regions spanning several
countries. In this highly globalized market, certain factors are of special significance that
affects the businesses. Culture, politics, economic situation and even laws are some factors
that affect businesses directly and indirectly. Coca Cola, also feels the pinch from time to
time. Any change in the global business environment can impact its profits and revenues
directly.

Coca Cola despite being the leading brand in the beverages industry is not immune to the
various political, social or economic fluctuations. Political or economic changes can
negatively impact its profits. There are laws and regulations which vary from country to
country and affect it directly. Simultaneously, Cultural factors are of significance. The
business of Coca Cola is spread over more than 200 countries. Social and cultural factors
acquire a special importance in that case.

A PESTEL analysis of Coca Cola will determine all these factors which can impact
its business in the global macro- environment.

8
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
3. Macro-Environmental factors affecting Cola Cola
Political Factors

Coca Cola is a brand that is highly dependent on governmental policies about sugar and
caffeine consumption. And with lawmakers becoming stricter about such factors due to
health condition deterioration of the general factors, Coca Cola is forced to alter the chemical
components in their drinks in certain areas. In countries where governments have not yet
taken a stance on such issues are also prone to change.

The rise of taxes on sugar production in the UK, which is one of its main markets, is also an
imminent threat to Coca Cola. The company is highly dependent on the regulation of taxes in
the various countries it has its factories based in.

Economic Factors

The consumption of water in huge quantities is a factor that affects Coca Cola in various
ways. The company is forced to spend a huge amount of its budget on solving water crisis
issues and ensuring that their water demands are met. The global economic crisis has also
affected the company harshly since to many countries Coca Cola is still seen as a luxury item,
and in times of crisis such items are bound to lose sales.

The rising cost of raw materials is a reason for alarm. Coca Cola uses some very basic
ingredients to produce its products, and these ingredients are always rising in prices. The
company can be seen shifting its production base to various countries where the raw material
costs are lower.

Socio-Cultural Factors

The biggest social factor that affects Coca Cola is the mentality change in its consumers. The
millennial and Gen-X consumers are readily shifting to energy drinks instead of carbonated
drinks due to the health concerns that the latter brings. Diseases such as obesity are associated
with the long-term consumption of Coca Cola and these factors are being brought to light in
recent times. The mindset of the general population has turned towards healthy living, and in
such a state Coca Cola is not a beneficial product.

One of the ways in which the brand has reintroduced itself is through products such as ‘Coke
Zero’ and other low-calorie products. Since the current generation is quite health specific,
these aerated drinks have been accepted by them. However, looking at matters globally, soda
and aerated drinks have faced a staunch decrease in sales across the world.

There are also cultural issues that are associated with Coca Cola. The brand has been
considered quite destructive towards environments and livelihoods in many third world
countries and is thus not accepted by people. Many Middle Eastern countries still continue to
disallow the launching of the brand due to it being an American product. Coca Cola still
pursues developing markets to be its primary zone of expansion.

9
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
Technological Factors

Social media-based advertising has turned out to be a boon for the brand. It has one of the
highest follower bases throughout the various social media platforms, and it uses these
platforms quite actively to campaign for its products. Coca Cola currently has 108 million
followers on Facebook, 3.34 million followers on Twitter, and such high numbers in other
platforms as well. So, these platforms serve as the primary method for the brand to reach its
target market.

Technological advancements such as AI bases analytics and big data operations have also
served the brand in deciding markets trends and service chain management processes. Coca
Cola actively uses the latest technological innovations to help increase its target market and
production base. Other technological processes that are being used by Coca Cola are various
smart farming methods and water harvesting processes. These are crucial for the company to
maintain its low price of raw materials and also to ensure that it does not lead to water crisis
as a result of its high-water demand.

Environmental Factors

Coca Cola is considered to be the biggest consumer of freshwater in the world. And for this
reason alone, the company has faced a massive amount of backlash from environmental
groups. In countries such as India, Coca Cola is being held accountable for completely
draining off groundwater in large areas. Coca Cola needs to immediately take steps to put in
water management operation or it can be banned in these countries.

Some of these steps have been taken by the brand. It has promised a mission to reduce its
carbon footprint to near zero in the coming years and is also being looked at as a model
corporation by many. Water smart farming methods such as RAIN and CARE are also
applied by Coca Cola that tries to use as little water-based resources as possible and harvest
the maximum amount of water possible.

The development of humid climate across the world as a part of the climate change has
proven to be beneficial for the company. It can now successfully increase its operation
capacity in countries where it was not possible before. However, low resource efficiency still
continues to be a problem for Coca Cola.

Legal Factors

Legal compliance to the local laws of the countries where it operates is the primary legal
hassle that Coca Cola has to face. Various countries have different laws when it comes to
caffeine standards and sugar consumption. The brand needs to ensure that it meets all such
regulations wherever its products are sold. Coca Cola has faced trouble in the past for added
caffeine quantities in its products in various countries and have had to pay lawsuits.

10
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
Another legal issue that shows possible problems is their labor practices. The company has
been known to treat its employees in unfair manners and also pay wages that are less than the
standard in their operating country. As a result, Coca Cola has faced protests from various
labor unions. Its corporate ethics are of primary concerns to the company right now.

Other Macro-environmental factor affecting the company is;

Demographics

Coca cola knows its people very well. It offers different flavors & packaging according to its
customer’s taste. It offers following sizes & every size is targeting different slots of
customers.

1. SSRB (Standard size returnable bottle)

2. LRB (Large size returnable bottle)

3. NRD (Non-returnable/ Disposable bottle)

4. PET (Plastic Bottle 500 ml)

5. PET (Plastic Bottle 1.5 liter)

6. CANS (tin pack 330 ml) It targets its different sizes according to customers of different
age groups & occupations.

• SSRB is generally targeted to young children & people going to schools & universities. It is
also targeted to the people of lower class.

• LRB & PET 1.5 liters is usually consumed by households &I s one of its economy packs.

• Disposable bottles are for the “on the go” people. As they don’t have the time to stand at a
spot & drink the whole beverage.

• PET 500ml was introduced, on the basis of the analysis, which shows that people nowadays
are in a trend to drink two 250ml coke bottles together. As Coca Cola is a company who
knows its consumers very well, they introduced the 500ml Pet bottle.

• Business executives always expect something different for them form an organization, so
Coke CANS were the answer to their expectation from coke. Different flavors always attract
different types of people. They are for the people who always want to try something new.

• Classic coke is the one suitable product who don’t want a change in their life or who don’t
want to try something new.

11
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
• Keeping the people in view who are fitness oriented, health conscious & diabetic patients
Diet Coke is the solution for all their beverage problems.

• Vanilla Coke was introduced for the people who want a more sweetened beverage & who
are looking for vanilla in everything they have.

• Cherry & Lime Coke is targeted to the people who want something citrus.

Coca Cola launches its product after they study their customers in deep detail & conclude that
what their customers really wants from them. Consumers always welcome Coca Cola’s
product, as they know that Coca Cola is the one who knows them the best.

4. Conclusion

A PESTEL analysis demonstrates that certain political, economic, social and technological
factors are of particular importance for the soda giant’s business. While the technological
factors might be in its control, the social, political and economic factors would require it to
adopt its marketing strategies as per the changing conditions. Water scarcity is particularly a
big problem affecting Coca Cola. Water scarcity would continue to trouble it in the long term
in most of the countries where its production plants are based. This will also be the most
difficult area for Coca Cola to manage. While it has made its move towards
healthier products by increasing the number of low calorie beverages and the world economy
is also geared towards growth, a stronger dollar may still continue to bite.

5. Bibliography

 http://www.thecocacolacompany.com/ourcompany/mission_vision_values.html

 http://www.thecoca-colacompany.com/ourcompany/index.html

 http://www.balochistanglass.com/clients.htm

 www.tradekey.com/profile.../ShangHai-Plato-chemical-co-Ltd.htm

 http://www.thecoca-colacompany.com/ourcompany/meet_our_people.html

 http://www.dailytimes.com.pk/default.asp?page=story_24-12-2003

 http://www.thecoca-colacompany.com/citizenship/education.html

12
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
  http://www.thecocacompany.com/presscenter/nr_20070420_corporate_reduce_energy
_consumption.html

 http://www.thecoca-colacompany.com/citizenship/watershed_protection.html

 https://www.marketingtutor.net/pestle-analysis-of-coca-cola/

 https://notesmatic.com/2016/08/coca-cola-pest-analysis/

 https://www.ukessays.com/essays/marketing/the-introduction-of-coca-cola-company-
marketing-essay.php

13
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS
14
GROUP-4
BAIBF 08001 ECONOMIC ENVIRONMENT FOR BUSINESS