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Internal environment reflects the processes and systems within an organization that influence manufacturing, supplying and the general operations of an organization. It includes what is available within the organization that is within its (Lawton, 2006). It encompasses the employees, the management and the corporate culture that defines the behavior of the employees. In this paper, the internal environment of Coca-Cola is analyzed and the weaknesses and strengths thereby revealed with a view to building a more stable business structure.
Coca-Cola is a leading multinational company that manufactures soft drinks. Its internal environment is built around its resources. This is what has kept it in the market for such long spells. It has set its own assets base that immensely aids its operations. By setting up its own plant and equipment in various production plants, the production costs are greatly reduced. Assets like buildings are used as storage facilities, laboratories and offices. Since such costs are now fixed, the costs of production have been reduced, and hence profits appreciate in most instances.
Coca-Cola enjoys a strong financial base. Its branches are based in almost every country in the world. Their drinks are a popular household commodity thereby enhancing their sales volume. This has enabled it to explore areas that are new like investing in research and coming up with new drinks like Black Current and other flavors. This has therefore accorded it a huge advantage (Henry, 2007). The Coca-Cola workforce is highly motivated. They train their employees and pay them well meaning that they remain a happy workforce and therefore able to offer their best for the organization.
The intellectual and goodwill owned by Coca-Cola is also immense. Due to the favorable financial position, the company is able to attract top brains to drive their agenda. The company also engages in activities that assist the society’s cause and thereby draws goodwill from many people.
Coca-Cola, a leading manufacturer in its area, must however take note of the other factors that would affect its operations. This lies mostly in the external environment. Changes in technology and societal beliefs have a potential of changing the fortunes of any company. Additionally, however good they are, employees must be supervised. In the case of Donoghue vs. Stevenson, the manufacturer was found to be negligent in its operations. Such instances can greatly harm the company. The company must therefore realize that as it grows the risks it is exposed to also increase. As such, there is a need to be cautious to avoid faults.