Structures Funding And Roles

Task 1

Public sector business organizations are those organizations that are operated and owned by governments with the sole purpose for their existence being to provide services to the citizens (Viborg Andersen, 2006). These organizations are never formed with the intention of making profits. To fund the organizations, money is raised from taxes, levying fees and through different financial transfer methods from other levels of the government (Arnaboldi, Lapsley, and Steccolini, 2015). Various governments across the globe have been observed to employ different methods of funding their public sector organizations which are unique. At times, partnerships will be formed between public sector organizations and other organizations in the private sector for purposes of creating public-private ownerships (Caperchione, Demirag, and Grossi, 2017). Examples of organizations in the public sector are electricity, education, emergency services, fire service, gas and oil, healthcare, infrastructure, law enforcement, police services, postal services, waste management, social services, and public transit. For students who are pursuing degrees in business administration or related fields, understanding the dynamics of funding and governance in public sector business organizations can be critical, making business dissertation help a valuable resource for deep research and analysis.

Private sector companies are those companies that are owned individuals and which are intended to earn profits. The profits earned here are shared among investors, shareholders, and owners. Financing of these types of companies is by private money that is obtained from bank loans and shareholders (Mazzucato, 2015). There are different private sector business organisations, and these include franchises, companies, partnerships, and sole traders. Being found in a range of activities that is wide, the sole trader is the most common form of business. The sole trader type of business is one which is run by one individual and owners of such companies get to make decisions without necessarily having to consult with any other persons.

In most of the free economies across the world, private sector business organizations make up for significant portions of the economy (Scheyvens, Banks, and Hughes, 2016). This is in contrast to nations where the state has more control over businesses. Such countries have larger public sectors. In China, the state is in control of most of the corporations and as such China has a more significant public sector, while the United States which has a free economy, has a robust private sector (Dussel Peters, 2015).

Charity/voluntary business organizations are such business organizations which fit in the category of non-profit organizations. Generally, these types of entities usually are referred to as foundations or charities, and they can be run either privately or publicly (Mohd Nassir et al., 2012). While some charity business organizations are cantered on activities that are of interest to the public and which are of a philanthropic nature, others are focused on educational and religious grounds.

There are charitable organizations that operate as private foundations that get funded through individuals, families, corporations and other single financial sources which do not require them to solicit funds from the public (Butler and Wilson, 2015). Endowment funds are most of the times used in private foundations for purposes of providing grants to outside and other affiliated organizations that are supportive of the objectives of an organization. Such kind of organizations are typically known as "non-operating," and an excellent example of such is the Rockefeller Foundation and also the Bill & Melinda Gates Foundation.

Task 2

Stakeholders are parties that have interests in a company and can either be affected or affect a business. Investors, customers, employees, and suppliers usually are the primary stakeholders in any typical corporation. The modern theory of the idea of stakeholders, however, goes beyond this notion and includes other stakeholders for example trade associations, governments, and communities. Stakeholders are either external or internal (Jones et al., 2017). Those individuals who have direct relationships with a company are known as internal stakeholders, and these include, investors, employees, and owners (Andriof et al., 2017). Those individuals who do not have any direct relationship with a company but in one way or the other are affected by a business’s outcomes and actions are known as external stakeholders. Examples of external stakeholders are public groups, creditors and suppliers (Finch et al., 2015).

Shareholders are institutions (this includes corporations) and individuals who own one or more shares of stock legally in both private and public corporations. Shareholders are customarily entitled to reap the benefits of the success of a company because they are also owners of a company. They get a share of the success in the form of increased valuation of the stock. If a company performs poorly and a decline in the prices of its stocks is recorded, there is a high likelihood that shareholders would lose money.

Stakeholder analysis is a technique used for identifying stakeholders and further analysing their needs. This technique is used in the identification of all key stakeholders, both secondary and primary, who possess a vested interest in the issues with which a particular project is concerned (Cohn, Gillan, and Hartzell, 2016). In conducting stakeholder analysis, Coca Cola would first need to identify its stakeholders. This would be effected through thorough brainstorming to know who the stakeholders are. As part of this, it will be necessary to determine every person that is affected by the operations of Coca Cola Company. After the stakeholders have been identified, the next step will involve prioritizing the stakeholders. From the list of stakeholders made in the previous step, at this point, it will be necessary to identify those that have within them the powers of advancing the operations of Coca Cola or blocking them.

While there are stakeholders with a keen interest in the operations of a company, there are also those who do not care (Block, 2016). It will be necessary to map out all the stakeholders and consequently classify them according to the powers they have over one`s work. When stakeholders have been mapped out in order of their importance, it is now possible to focus the efforts of a company on the high priority groups, while at the same time, providing information that is sufficient and that would keep those groups that are not as powerful contended and happy. After that is done, the third step will involve gaining a proper understanding of the key stakeholders. This will be done to establish the exact thoughts of the key stakeholders concerning the company. At this point, it will be necessary to come up with a proper strategy for engaging and communicating with the key stakeholders (Mangifera, 2019).

Task 3

There exists an essential role that would be played by environmental analysis for Coca Cola. An environmental analysis would put Coca Cola in an excellent position to identify the different threats and opportunities in its external environment. With proper environmental analysis, those in charge of conducting the review would be in a place to develop plans and at the same time maintain the makers of decisions within the organization (Jenkins, and Williamson, 2015). Additionally, with proper analysis of the environment, a company puts itself in a better position to improve the outline of its environment. Organizations are today faced with different issues and challenges often, as a result of the emergence of globalization and its influences. That is the reason, in any organization, decision-makers have to devote their time to environmental analysis if they have to continue surviving in the fields they operate within.

Business Environmental analysis is by itself a process that is quite systematic, which is used in identifying environmental factors within a business, assessing the impacts of the elements and further developing strategies to mitigate or even take advantage of the ecological factors. Decision makers should always be in a good position to correctly understand the ever-changing environments and should also always be in a place to make predictions of how such changing environmental factors could influence their businesses before they embark on making decisions that pertain a business (Khan, Alam, and Alam, 2015). To facilitate easy understanding of the different environmental factors, the factors could be identified as either “External” or “Internal” factors. For example, Coca Cola`s threats and opportunities would be related to external factors, while its weaknesses and strengths could be identified as being internal factors.

Conducting environmental analysis will put Coca Cola in an excellent position to identify the potential influence of different aspects of the general (political, economic, natural, technological, cultural, international and demographic environments) and also opening environments which include a company`s competitors, customers, suppliers and even the entire public on their operations. Additionally, through the analysis, the managers of Coca Cola will be in a position to identify threats, weaknesses, strengths, and opportunities that they need to address. As such, for any business, environmental analysis is critical if the company has to continue existing and growing (Kew, and Stredwick, 2017).

Political Factors

The products of Coca Cola are generally at the mercy of the different regulations regulating food in various countries in the world. As such, in every country in which Coca Cola operates, it must meet the rules that have been set by the respective governments, for them to sell their products. Coca Cola may be prevented from distributing its drinks by changes in laws that have already been established. Changes in labor laws, internal marketing's, taxes and accounting could affect Coca Cola in this way.

Economic Factors

The products from Coca Cola usually are distributed to different countries which have different tastes, customs, desires, and cultures. For purposes of accommodating these different customers, Coca Cola has in the past changed the handling of its products, and this has been done through the creation of different flavours in different parts of the world. As of today, Coca Cola has over $80 billion of equity, the majority of this coming from its beverage industry.

Social Factors

In recent decades, consumers have been observed to switch to healthy drinks from flavoured drinks. Trends like this have been leading to the decline of the products from Coca Cola because Coca Cola has been putting minimal effort towards offering healthy beverages. There are only a few calorie drinks that have been introduced by Coca Cola that are intended at addressing these changes.

Technological Factors

The production and packaging and also distribution activities at Coca Cola are heavily dependent on technology (Coca Cola Journey, n.d.). It is necessary for Coca Cola to invest heavily in technology if it has to remain profitable continuously. An efficient supply chain and timely production would be facilitated by efficiency in technology.

Legal

All rights that are related to Coca Cola`s businesses are retained by Coca Cola itself (The Coca-Cola Company, 2019). These include rights for future and even past products that have been developed with processes that have been patented.

Environmental

In the 21st century, environmental and sustainability concerns have grown central to any business activity (Feys and Probert, 2015). That is even for those companies with zero or near zero environmental footprints. Coca Cola has been investing heavily on environmental issues and stewardship of water. The company has in place ambitious plans for 2020 and has put a lot of effort to ensure these efforts are achieved. Through programs like CARE and Rain, the company has invested in water-smart agriculture. And in addition to the efforts towards reducing environmental impacts, Coca Cola has also been focusing on sustainable packaging and recycling.

Porters Five Analysis of Coca Cola

The porters' five analysis tool is a strategic tool for analysis that usually is helpful in the study of different factors that have an effect on the level of competition within any given industry. Based on an analysis of these forces, managers can always form strategies that would see an increment in profitability within their businesses.

Suppliers Bargaining Power

The suppliers of Coca Cola have weak bargaining power. A large number of suppliers and the relatively low switching costs for Coca Cola are the mains reason behind this (Kraus, 2018). The suppliers cannot switch away from Coca Cola with the same ease Coca Cola can change from one supplier to another. Additionally, for most of the suppliers, forward integration is a distant possibility.

Customers Buying Power

For individual customers, the bargaining power is low. While individual customers are not concentrated in any specific markets, they are also generally observed to make their purchases in small volumes. It is worth noting that there exists a low level of differentiation between Coca Cola and Pepsi. Their flavors are mostly similar. While both brands enjoy high brand loyalty, there are low switching costs for customers.

Additionally, Coca Cola`s customers are not price sensitive. Whether for a large retailer or an individual customer, backward integration is not an option. A retailer can only acquire some bargaining power if they purchase the products in large volumes.

The risk of new entrants is relatively low. Across the beverage industry, there exist some factors that discourage the entry of new brands. The biggest discouragements are the significant investments that have to be made. Large investments are required in each step, starting from operations to marketing. While some brands would opt to start small, there would still be some significant investments needed in marketing and the hiring of staff that is qualified. There is a moderate level of customer loyalty across the industry and as such, some considerable time would be required by any company that would aspire to build customer loyalty. As such, while there is a possibility that new entrants could compete with Coca Cola at local levels, creating a brand that matches the status of Coca Cola is not easy and would require skilled human resources and high amounts of capital.

Something that could give any new entrant an upper hand is investing in drinks that are healthy. In the event several new entrants were to invade the industry all at once providing healthy beverages, this could with no doubt have some effect on Coca Cola. And with the entrant of smaller companies into the beverage market, the possibility of the threat intensifies. A takeover would, however, be highly unlikely.

Pepsi offers most of the substitutes to Coca Cola products. There exists a high number of alternatives to the products of Coca Cola (Pansari and Kumar, 2017). Across the market, there exists several juices and other types of cold and hot beverages. For the customers, switching costs are low. It is also worth noting that the quality of the substitutes is also equally good. From these factors, it would be comfortable to conclude that there is a substantial threat from substitutes.

Pepsi and Coca Cola are the two major players in the soda industry. Even though there are smaller players; they do not pose any significant threats. Pepsi and Coca Cola are almost of the same size, and their products and strategies are also roughly similar. There even exists a low level of product differentiation between these two brands, and this intensifies price competition. As such, the existing firms’ competitive rivalry is a strong force.

Task 4

Between 2013 and 2017, one thing that is quite conspicuous is that Coca Cola`s sales have been going down year in, year out. A revenue decline of 2% to $46.9 billion was recorded in 2013 (Coca Cola, 2019). In organic terms, there was, however, a 3% rise in the top-line and this was explicitly observed when the impacts of currency fluctuations and structural changes were stripped out. In 2013 and 2014, while global volume trends were positive, with a 2% growth each year, in 2014, the companies sales further dipped by 2%. In 2015, reported sales also dipped to $44.3billion a 4% dip.

On an organic base, the sales however increased by 4%. At the end of 2015, global volumes rose by 2%, and this rise was led by North America which is the flagship market of the group. On a reported basis, in 2016, there was a dip in sales of 5%. The sales went down to $41.9 billion. That was attributed to unfavorable impacts that came about from structural changes and foreign currencies. For the year, there was a 3% growth of the organic revenue. In its annual report, Coca Cola stated that its focus during the year had been on driving solid performance across its developed markets. This has been aimed at offsetting macroeconomic pressure in emerging markets like Latin America. North America inspired most of the growth. For that year, a 1% rise was observed globally.

In 2017, the sales further tumbled to $35.4 billion, a 15% decline. The decline was mainly as a result of 17% structural headwinds following the franchising programmes in the US and China. However, even with that, organic revenues went up by 3%, and this was despite the evenness of volumes across the year with improved margins.

The current growth reporting practices at Coca Cola not quite equal and financial measures are mostly used for measuring growth as compared to non-financial. Financial measures of growth are subjective measures that explore how well a firm utilizes its assets from its primary business model for purposes of generating revenue. Common financial metrics used at Coca Cola include return on assets, profit margin, earnings and return on investments. Parameters that are non-financial are those quantitative measures that cannot be possibly expressed in monetary units. Coca Cola should improve its focus on healthy drinks to augur well with the new healthy living trends. They should shift their focus on producing drinks that are low on calories, sugars, and fats.

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