Business And Business Environment

 

 

 

 

 

 

 

 

 

 

 

                                                                                                            
Name

 

 

 

 

 

Table of contents

 

Introduction…………………………………………………………………………………
4

The SWOT analysis of three companies………………………………………………..
5

Coca-Cola, Pepsi
comparison…………………………………………………………… 9

Segmentation of products…………………………………………………………………
9

Target marketing…………………………………………………………………………..
11

Mission and vision…………………………………………………………………………
12

Marketing mix………………………………………………………………………………
13

CSR and stakeholders ……………………………………………………………………14

Organizational structure………………………………………………………………….
16

Legal structure…………………………………………………………………………….
18

Conclusion…………………………………………………………………………………
18

 

 

 

 

 

 

 

 

Introduction

This assignment has done to
present as a report to the CEO as I employed as a Business Analyst by a large
multinational organisation. Here I’ve chosen the main competitor Coca-Cola and
other two competitive companies are Sweepers and Pepsi. Worldwide, these main
players are battling it out for a large part of the ever growing soft drink
market. In here I’ve covered backgrounds, mission, vision, size, scope, legal
structures, stakeholders etc.

Maslow’s Hierarchy theory
involves in this. Maslow developed several levels through which individual’s
move in the course of life. He believed that humans are motivated to move from
one stage to other starting at the bottom and reaching the top, in a
progression of satisfying their needs. First, individuals try to fulfil their
basic needs: such as food, water which are essential for survival. Once an
individual fulfil the needs of the first stage, he moves to fulfil
psychological needs: belongingness and love needs and self-esteem needs. In self-esteem,
this the prestige and feeling of accomplishment. These drinks like Coca-cola, Pepsi,
Schweppes are nowadays a prestige drink. Without one of these, a party is
incomplete.

 

Coca-Cola

Coca-Cola company is a
multinational and Coca cola is a carbonated soft drink sold all over the world.
This is the world’s most popular and number one biggest selling soft drink and
it has been a catalyst for social interaction and inspired innovation. It was
created in 1886 in Atlanta, Georgia, by Dr.John S. Pemberton. Pemberton’s
clerk, Frank Robinson is  the persons
named the Coca-Cola. Candler was the 1st president, and forerunner and
brought true vision.

 

Pepsi

Pepsi is a carbonated soft
drink that is produced and manufactured by PepsiCo. Created and developed
in1898 and introduced as “Brad’s drink”, then renamed as Pepsi Cola in 1903 and
the name Pepsi in 1961.

It is one of the most famous
brands worldwide today, and distributed more than 160 countries. India is a major
market and also it added value to Indian agriculture industry.

 

Schweppes

Schweppes started in 1783. Jacob
Schweppes is the forerunner, created new art of carbonating beverages, so he advanced
his own process of creating mineral water. At 1851 great exhibition in London, Schweppes
is an official drink and made an impact of fountain is still on the logo today.
It introduced fizzy lemonade in 1831, the success of which led to a overflow of
other flavoured fizzy drinks.

 

Mission and vision

Mission
of Coke

•           To refresh the world in mind, body and spirit

•           To do everything varies

•           Our product in everyone’s hand

•           Being a global leader in beverage world.

 

Mission
of Pepsi

PepsiCo mission is ‘to be
the world’s premier consumer products company intensive on convenient foods and
beverages’. They pursue to create financial rewards to investors as they deliver
chances for growth and upgrading to their staffs, their business partners and the
communities in which they operate.

 

Vision
of coke

•           Profit – maximize the return of shareholder.

•           People – establish a great to work where people are
inspired to the best they               can
do.

•           Portfolio- Bring to the world a portfolio of beverage
brands that anticipate and safely people’s desire and need.

•           Partners – nurturing a winning network of partners and
building a mutual loyalty.

 

Coca-cola’s
organizational structure

This company have a distinct
International Division Structure because its international works function alone
and in separation from head office. It has numerous divisions in all continents
worldwide with presidents that control each continental division. This have
five continental divisions.

•           Eurasia & Africa Group

•           Europe Group

•           Latin America Group

•           North America Group

•           Pacific Group

Each Continental division
has vice presidents that control sub-divisions based on regions or countries.
This structure is very effective for the company since it is a large company.

 

 

Coca-Cola is as an
ethnocentric MNC because its domestic operations are very similar to its
international operations. Regardless of the country or region, Coca-Cola functions
the same way and sells the same brand and type of soft drink. The company has
tight control over its operations from head office.

{ http://cokemnc.blogspot.com/p/organizational-structure.html}

 

Legal
structure

The company divides its
operations into two segments:

•           Beverages: The beverage business operates the franchise
for manufacturing and distributing Coca-Cola trademarked products in Australia,
New Zealand, Fiji, Indonesia and Papua New Guinea and Alcoholic Beverages

•           Food & Services: The Food & Services division
manufactures and distributes packaged fruit and vegetables, jams and sauces
throughout Australia and globally.

 

Vision
of Schweppes

Working together to create brands
people love.

 

Mission
of Schweppes

‘To provide our customers with
a tempting and exquisite taste’

 

Vision
of Pepsi

Pepsi’s vision is to put
into action through programs and a focus on background stewardship activities
to help society and a commitment to form shareholder value by creation PepsiCo
a truly justifiable company.

 

Marketing
mix

Marketing mix is the set of
marketing tools that the firm practices to pursue its marketing objectives.
Marketing mix have classification for the marketing tools. These marketing are
classified and called as the 4 p’s. (product, price, place and promotion)

 

 

SWOT
Analysis                                                          

 

Strengths
(S)

Weaknesses
(W)

Opportunities
(O)

Threats
(T)

Coca
cola

Coke
brands enjoy and high profile global presence                
 
Broad-based
bottling strategy
 
47%
of global volume sales in carbonates
 

Carbonates
market is in decline
 
Over-complexity
of relationship with bottlers in North America
 
The
existing supply system is not so efficient for non-carbonates.
 

Soft
drink volumes is the Asia Pacific region forecast to increase by over 45%
 
Brands
like Minute Maid light and Minute Maid premium heart wise are concerened
“Health Concerned” market.
 

Growing
“health-conscience” society
 
PepsiCo’s
Gatorade, Tropicana and Aquafina are stronger brands.
 
Boycott
in the Middle East
 
Protest
against Coke in India
 
Negative
publicity in Western Europe.
 
 

Pepsi
 

PepsiCo
brands enjoy and high profile global presence.
 
Pepsi
owns the world’s 2nd best selling soft drinks brand.
 
Constant
product innovation
 
Aggressive
marketing strategies using famous celebrities.
 
A
broad portfolio of products.
 

Carbonates
market is in decline
 
Pepsi
is strongest in North America
 
They
only target young people.
 

Increased
consumer concerns with regard to drinking water
 
Growth
in healthier beverages
 
Growth
in RTD tea and Asian beverages
 
Growth
in the functional drinks industry.
 

Aggressive competition is a major threat against
the company. Influence of the Coca-Cola Company especially important against
PepsiCo.
 
lifestyles trend is a threat against PepsiCo’s because
unhealthful because of their sugar, salt, or fat content.
 
Environmentalism- threatens the company in
how consumers negatively respond to product waste and lifecycle issues.

Sweepers

With
a strong growth in volume, it is the company’s second biggest volume driven
brand
 
Increase
in net sales and net profit
 
Strong
advertising and marketing makes it a top of the mind brand

Not
easily available in many major markets like India, China, Africa etc.
 
Only
available in limited flavours and has high competition means limited market
share
 

Emerging
economies like India, China etc.
 
Diversify
product portfolio
 
More
advertising and marketing to increase brand awareness
 

Intense
competition
 
Foreign
exchange risk, interest rate risk, commodity risks etc.
 
Fluctuating
economic conditions
 

 

 

Coke
and Pepsi comparison

Coke

Pepsi

Main
dark cola drink of the company began the opposition between those companies.  

Pepsi’s
dark cola is the key contestant to Coke.

Coca-Cola
company’s energy drink Full Throttle.

PepsiCo’s
product under the Mountain Dew soft drink brand AMP is an energy drink

vault
is a carbonated drink that released by the Coca-Cola company in June 2005

Mountain
Dew is an energy drink manufactured and distributed by PepsiCo

PowerAde
is a sport drink by  and now number one
sports drink worldwide.

Gatorad
is a non-carbonated sports drink marketed by Qaker Oats company, a division
of PepsiCo. Originally made for athelets, but now consumed as a snack
beverage.
 

Sprite
is a clear lemon-lime flavoured, non-caffeinated soft drink.

7UP
is a brand of a lemon-lime flavoured soft drink.

 

 

Segmentation
of Coca-Cola

Coca-Cola segmented their
market in many ways. It’s customer segmentations is chiefly by their market
based on age, income and family size. It’s behavioural segmentation is vital to
the company’s success. Age is the main part of Coca Cola’s segmentation. It
introduces Coca cola diet for the people those concerned sugar and for aged
people. Coca cola’s target population customer age is 10-35.

   

 Segmentation of Schweppes

Geographic segmentation

·        
Introduced nationwide in United States.

Demographic segmentation

·        
It had a gentle fondness on natural market

·        
Positioned in midpoint of the basic market.

 

Positioning

·        
Sweepers is one of the largest British owned
confectionary and soft drink.

·        
It positioned itself in the consumer mind as
a mixer

·        
Adult soft drink in the mind of consumer

·        
Used to mixed with alcohol in a party.

 

    Target

·        
Introduced countrywide in UnitedStates

·        
Targeted all age of people and all class.

 

     Marketing mix

·        
Product

    Rasperry Ginger Ale

·        
Price

    1.79 US $ for 1 litre bottle

·        
Promotion

    United States Market with $ 1 million spent
on advertising.

·        
Place

         Unitedsstate is the Target

 

Segmentation
of Pepsi

Pepsi segments their market
in numerous ways. Mainly segment their market according to age, income and
family size. It’s behavioural segmentation is a main factor for company
success. Age is a most important parts of segmentation. It introduces Pepsi
diet for the people concerned with sugar and for aged people. It chiefly
produces Pepsi cola. Main customer is young people between the age of 10-35

 

Target
marketing of Coca-Cola

They make numerous values to
achieve this portion of market by marketing targeting. Their market segment
profiles shown that the majority of carbonated beverage drinkers are youth and
middle age people. Coca cola targets the Bangladeshi schools, universities,
restaurants, hotels and fast food stores. Coca cola customers are mostly
teenagers and young adults between the ages of 16-35 and also made diet coke is
mainly for sugar concern people.

 

Target
marketing of Pepsi

Pepsi targeted this market
is because it is the major amongst its users. Market segment profiles express
that in Bangladeshi customers of carbonated drinks are middle age youth, and
also targeted universities, hotels and schools. Pepsi customers are mostly
teenagers and young adults between the age of 14-30.

 

Coke
price

Coke was a leading company
in the market before the enter of Pepsi. Earlier the price of coke was cost
based. But after the emergence of the companies especially the likes of Pepsi,
Coca-Cola started with a pricing strategy based on the basis of competition. Nowadays
more expenses spent on advertising softdrink companies rather than on manufacturing.

 

Pepsi-Price

Pepsi decides it price on
the basis of competition. Pepsi is very flexible and it can come down with the
price very quickly. The company is renowned to bring the price down even up to
half if required.

Through lowering the price
will attract the customers but it won’t help them regain cost in production.
This is before, but now Pepsi is a full-fledged and growing company and covered
all its losses and growing at a fast rate.

PepsiCo’s
CSR Initiatives & Stakeholders’ Interests

PepsiCo’s
corporate social responsibility strategies supported based on how stakeholders
impact the business. The company’s prioritization of stakeholders is stated in
its corporate beliefs and purpose of business. The following are PepsiCo’s
major stakeholder groups, arranged according to the company’s prioritization:

1.   
Consumers and Customers- Consumers and
customers plays major part in PepsiCo’s corporate social responsibility
strategy. This stakeholder group governs financial standing of the company in
terms of revenues. Based on the importance of these stakeholders, PepsiCo practises
continuing innovation processes to advance its produces.

 

2.   
Communities- Part of PepsiCo’s thrust in
corporate social responsibility is to ensure that it always has a positive
impact on society. The interests of stakeholders include corporate support for
community development programs. The PepsiCo Foundation provides financial
assistance for such programs.

 

 

3.   
Employees- PepsiCo believes that employees
are significant determinants of the company’s long-term growth. This
stakeholder group is interested in career development and fair compensation.

 

4.   
Investors- As stakeholders, investors are
interested in PepsiCo’s higher financial performance. Investors mainly affect
the company through availability and cost of capital.

 

5.   
Government- Governments are important in
terms of imposing rules and wants on PepsiCo’s business.

 

Coca-Cola’s
CSR activities

Ø 
Water

·        
Conserve
water

·        
Watershed
protection, rain water harvesting projects

·        
110
recharge shafts that collect rainwater.

·        
 

Ø 
Energy

·        
Reduce
energy consumption and emission of GHGs by such as refrigeration

·        
GHG
emission reduced by three fourths

·        
Increased
the energy efficiency of its equipment by 40-50

 

Ø 
Packaging
and recycling

·        
Packaging
framework that aimed at recycling

·        
A
PET recycling project

·        
Collected
the company’s packaging material consisting of glass bottles, cans, etc. after
they were disposed.

Ø 
Health

·        
Offered
health checkups, medicine and education to rural communities on health related
topics.

·        
Also
conducted camps for Hepatits B vaccination, eye checkups and malaria
eradication in Andrapradesh.

 

Ø 
Economic
responsibilities

·        
Offer
employment and gave the community chances to expand.

·        
For
every job in Coca cola system, some indirect jobs created.

.

 

Sweepes
CSR activities

CSR activities include,
having raised $6 million for United Way, Action Nation Month encourages
employees to contribute 50 hours for any NGO, and various environmental
initiatives etc.

Conclusions

Coca-Cola, Sweepers and
Pepsi have their unique features, positives and negatives. They try to maximum
their strength and minimise their weakness. They try to fulfil the consumer
needs and to gain consumers trust to increases the demand for their product.
Theses product produces in different flavours and produce to people who are
with health issues to fulfil consumers’ wants, compete with each other in
global market to increases the sales of the product. To produce these products,
available  resources are limited but
human needs and wants are unlimited. So scarcity takesplace.

These product sales all over
the world and has sub companies in different countries. There are many issues
generates in these companies. Environment issues, packing, manufacturing and
also inequalities between higher officers and staffs.  

There are so many soft
drinks worldwide. These soft drinks liked byfrom children to old age.They
consume soft drinks oftenly. In this report discussed about Coca-Cola, Sweepers
and Pepsi about their backgrounds, mission, vision, size, scope, legal
structures, and stakeholders. However, these companies reduce the negatives and
strengthen the positives to create the need for their product in the global
market.

 

 

 

References

Zigu. 2018. Schweppes
SWOT Analysis | USP & Competitors | BrandGuide | MBA
Skool-Study.Learn.Share.. ONLINE Available at: https://www.mbaskool.com/brandguide/food-and-beverages/13805-schweppes.html. Accessed 16 January 2018.

SWOT Analysis and Report
for Cadbury Schweppes – Business Research Paper. 2018. SWOT Analysis
and Report for Cadbury Schweppes – Business Research Paper. ONLINE
Available at: http://www.freeonlineresearchpapers.com/swot-analysis-report-cadbury-schweppes. Accessed 16 January 2018.

Schweppes: Case Study.
2018. Schweppes: Case Study. ONLINE Available at: https://www.slideshare.net/newsworks/newsworks-schweppes-effectiveness. Accessed 16 January 2018.

CADBURY
SCHWEPPES PLC – Company Profile, Information, Business Description, History,
Background Information on CADBURY SCHWEPPES PLC. ONLINE Available at: http://www.referenceforbusiness.com/history2/15/CADBURY-SCHWEPPES-PLC.html. Accessed 16 January 2018.

World of
Coca-Cola. ONLINE Available
at: https://www.worldofcoca-cola.com/about-us/coca-cola-history/. Accessed 16 January 2018.

 

https://www.ama.org/documents/ame_teaching_materials_2007_08_ford_stephens_cooper.pdf

 

Csr
Activities of Coca Cola | Corporate Social Responsibility | Corporate
Governance. ONLINE Available
at: https://www.scribd.com/doc/43803883/Csr-Activities-of-Coca-Cola. Accessed 16 January 2018.