Coca Cola Stakeholder Report

Coca Cola Stakeholder ReportGoodstein, Nolan, and Pfeiffer states in their book that A mission defines the brass existence and it covers four aras, firstly what is the purpose, for whom, how and why organisation exists. A mission statement provides framework to the organisation in which it will operate. A profit orient organisation purpose is to satisfy needs of market and for non-profit oriented organisation it is to serve for community. For whom will be the customer of organisation and in non profit organisation the community at large. How covers the strategy the organisation will postdate in providing quality product or service to its potential customers. The answer of why of profit oriented organisation would be maximisation of profit and achieving ripening by seizing new opportunities. A non-profit organisation has no concern with profit and focus on providing service to community. geological formation culture is belief, attitude and values. It provides tooshie for the dash organisation will perform its activities. Values argon important part of organisation and it sets organisation traits, its actual and inquired competence and quality of work. Its gives world for finis making, guidance of how work will perform, what kind of people are needed and areas needed more care. Values are basis of organisation decision. (Goostein, Nolan, Pfeiffer 1993) Organisation performs value scanning and stakeholders for effective decision making. Stakeholder holds powers and can significantly influence organisation decision. Stakeholders implicate shareholders, employee, customer, community, lenders, suppliers and government activity. Shareholders and lenders can effect decision of organisation as they own significant engage and power. Second important stakeholder is customers of organisation and holder tremendous power and interest. Thirdly, the employees that require proper salaries and benefits against their services. All three stakeholders can influence the decision of organisation therefore organisation should perform stakeholder analysis before making strategic decision to reach its long term neutrals. Typically organisation objectives are long term gaols which it wants to achieve. Normally those are maximisation of wealth of shareholders, providing quality products and increase in market share. As from the case of Coca Cola, its objectives includesMarket attracter in its industryWorldwide growthProvide reliable and quality productIn order to achieve those objective, it has values which is based on teamwork, clearcutness and bringing together its employee to strive to achieve its objectives.Objective of Three StakeholdersCoca skunk has achieved the objectives of its three important stakeholdersCustomers, it has provided quality product to its customers and put forward customers depose at top priority. Coca Cola has heavily invested in its research and development area to produce luxuriously quality beverages.Employees, it has recognised its employees as an asset and understand the fact that a motivated employee strives for the growth of the company. It has taken different measures to satisfy its employees needs and provide them route to communicate and express their feelings.Shareholders, they want senior high school return on their investment. As it is apparent from the growth and development of coca sens. It is working hard to maximise the wealth of shareholder.1.3 Strategies employed by organisation and presidency as stakeholderIts organisation is responsible to develop strategies to meet stakeholders objective. both stakeholder has different set of objectives associated with the organisation. The interest of shareholders is maximisation of wealth and company growth. It is appearent from the case that Coca cola has achieved significant growth over the years and expand its business world as it serving customers over 200 countries and product align is 400 non unarticulate beverages.Customers w ant value for money. Coca cola research and development has produced product to meet the demand of customers and marketing development has increased over the years. Coca cola adhere that customers trust is vital for the success of organisation.Coca cola has been meeting the legal and regulatory requirement nationally and supranationally. In any business Government is always a major stakeholder as it holds significant power to disrupt organisation plans. So its necessary for organisation to prepare its strategies in compliance with law of nature and regulations.Employees are major stakeholders of organisation organisation should prepare strategies for training and development of its human resource and provide opportunity to excel.2.1 Economic system and practice of resourcesThe interchange economic problem is shortage of resource, which includes land, labour and capital. It a gussy ups due to high human demand, scarcity does not arrive itself it is human wants and desire who brou ght them. Some of the resources problems are solve by the cosmos of new technology as a substitute, where as other resource are still limited (Dhillon 2007) Economic system is concerned with effective use of resources. Economic system depends on the availability of resources and its demands. The types of economic system are as follow.Command systemAll resources are carryled by the government itself. Government prepare plans for resource allocation for industry and people. In this system government is owner of resources and make decision for what is needed to produce and way to produce. forgive market economic systemIn this decision are made by buck private individuals and industrialist. All resources are owned by private individuals. In a pure free market there would be no government involvements. America is biggest example of it where all resources are owned by firms. Capitalism is the astounding belief that the wickedest of men, will do the wickedest of things for the greatest good of everyone. (Keynes 2000)Mixed Economic SystemIn mixed economic system round resources are controlled and owned by government and some resources are managed by private firm. This is very famous system and it combines the characteristics of both(prenominal) systems.Transitional economiesIn this system, it is ever-changing from planned to free economy and involve market decide the equipment casualty and barriers of trade are removed.2.2 friendly welfare and industrial initiativesSocial welfare policies include health, education, social works, education, pension scheme and housing schemes. Theaker (2004), states in his book that there are different types of rules developed by societies. These rules provides framework for an organisation in preparing its strategies. The objective behind rules and policies are that organisation should be proactive. It implies that organisation should be not foc utilise on self interest and work for the benefit of its employees, community at l arge etc.Moore (2002), states in his book that the government is responsible for unemployment, employee housing and wage levels. Government hold power and should prepare insurance to protect the community. Social welfare involves equal distribution of wealth. If wealth is distributed equally then there will be no poverty.Social welfare has strong history in UK the government has prepared different laws and policies to protect citizens of UK which includes the poor law 1834, the welfare state in Britain 1948, housing insurance, education policy etc.Industrial policyIndustrial policy concerned with growth and development. Its objectives areSustainable growth of industryRaise in employment rateEfficient and effective use of Human resource developmentCountry growth and development in making it world playerUK five productivity drivers are (Budget 2005)Increasing contestEnterp spread out promotion by minimising barriers to entryResearch and developmentSkills and competenceInvestment deci sionThese policies and measures can significant impacts on industry and organisation to achieve growth and development. Government strives to promote and protect its industry and community by making effective laws and policies.2.3 Macro economic science policy and influence of globose economyMacroeconomics policy measures and control output, spending and income. Country national income provide basis for measuring the output, spending and income which helps to draw financial and fiscal policy.Fiscal policyIt has detrimental impact on consumer buying decision. Fiscal policy is used as tool to control government spending, demand level, output and taskation. A turn in income tax and NI will affect the income after tax and more they work and more they will pay tax and vice versa. A change in tax will affect pattern of demand of customer. Increase in duty will reduce the buying as in case of Cigarettes. Government subsidies are used to improve the production capacity and growth of ind ustry to increase employment rate and government revenue.Monetary Policy of UKA monetary policy involves that the government changes the base rate to change the growth rate and aggregate demands. Monetary policy used as a measure to control inflation, interest rate and supply of money. In UK the monetary policy is managed by Bank of England that is responsible for controlling inflation, damage stability and to provide growth and employment.Influence of global economyGlobalisation and international trade has changed the direction of industry. Earlier organisation has to compete nationally, now it has to compete with international player and that has overall structure of industry. The ultimate benefit goes to the end users in terms of low prices due to competition. Globalisation has increased the level of uncertainty among domestic producer. Product development, marketing and prices are changing rapidly due to international trade. Government has put significant attention in drawing fiscal and monetary policy to cope with such uncertainties which could choke them to either inflation or recession. The economic decision close to what to produce and how to produce and to whom to produce becomes a matter of judgement and need flexibility in it.3.1 Market structureMarket structures are as followPerfect marketIm sinless marketPerfect marketWessels express in his books about the conditions that preface to a perfect competition market which areExtensive numbers of companies are operating in the marketMany substitutes are open to customersBuyers knows the prices of every supplier to make rational decisionEasy exits are available to companiesIn perfect market structure buyers can insert squelch on companies. Globalisation and international trade has changed the structure of industry all over the world. There are so many buyers and produces are available and high competition in the market.Imperfect marketIn imperfect market, there is few number of producer and hold s ignificant power to insert air pressure on consumer. In this structure, consumer has limited number of choices to buy product. Organisation can change the price and make high margin profit out of it. In imperfect market it has different types,MonopolyMankiw (2006) states, A monopolist can impose the price of product. Customers have no other choice except the buying from the individual producer. Consumer prefers to have perfect competition where there is large number of suppliers. It can change prices any time as it is a sole producer of product.OligopolyMankiw (2006), It is simplest form, in which there are few sellers in the market and producing, offering the same products which are very much homogeneous in nature and durability.Monopolist competitionMankiw (2006), It is almost similar to the oligopoly, there are few seller in the market and producing the same product but in this products are not identical in nature. In this structure all firms are having monopoly in its particu lar products and competing with each other over same customer base.DuopolyIt is simplest form of oligopoly, in this both producer coordinate with each other and decide the price and output and make changes accordingly.3.2 market forces and organisation responseOrganisation is a separate entity and it is theater to influence of external environment. The market forces includes customer demand, change in taste of customer, each party holds some power to influence organisation decision. It canprovision and demandEconomist focused on Supply and demand. These are main forces in the economy that make market works. Supply and demand determines the price and sum of money to be produced. High demand lead to a rise in price, as company has to increase its capacity to meet the demand of market. The demand of trade good is influenced by customer taste, customer perception, income, price of related product, expectations of customers and quantity demanded.ElasticityThe behaviour of demand and p rice has direct relationship with supply. A rise in demand will directly impact on relative decrease in supply and which lead the demand at par. Similarly a rise in demand will lead to relative rise in price.Customer perception and actionsIt has strong influence on buying and selling of product. A buyer is itself a seller. A buyer wants a product at low price and sells it at a high price and again the buyer or end user wants to buy product at low price. The buying behaviour strongly influenced the product price and product. In a perfect competition market its makes more competitive and lead to price war and heavy marketing activity.Monitory and fiscal policyChange in monetary and fiscal policies significantly impact organisation operations and its policies and which also lead to rise in product price.ResponseSupply for productA rise in demand put pressure on organisation to provide the required supply. Where organisation doesnt have spare capacity of production it will require a hig h investment in manufacturing.Economy of scurfA certain rise in demand provides opportunity to achieve economy of scale by producing more products to meet the market demand and enjoy the benefit of economy of scale.Working capitalA certain rise or oarlock in demand put pressure on organisation working capital. Organisation holding, transportation and storage costs are significantly influence by the rise or fall in demand.3.3 Competitive StrategiesPorter 1998 states that organisation prepares its strategy to distinct itself from its competitors to gain competitive advantage such strategies able an organisation to provide different set of values to its customers. According porter generic competitive strategies, Organisation can gain competitive advantage and it can transcend its competitor as beingA low cost producerIt involves producing goods at low cost, achieving economy of scale and cost cutting by wakeless marketing, product development cost and responding to the market requi rement.A differentiatorDifferentiation can be achieved by producing innovative product, increasing promotion and making stain image.A focusIt involves dealing at lower level by identifying a niche market and producing product according to the requirement of specific market.Every company focus on achieving competitive advantage to outperform its competitor which often lead organisation to price war, heaving investment in promotions and pursue wrong practices to capture market and gain growth.Role of Competition commission and regulatory bodiesThe role of competition commission is determined by stature, it is concerned with analyse and reporting on wrong practices. The main objective is to overcome incorrect practices of companies in gaining market share and making profits and forcing fair duty policies and anticompetitive practices. (Seven 2001)4.1 grandeur of worldwide tradeInternational trade and globalisation has brought significant advantages. This includesBalance of Paymen tsInternational trade has allowed countries to improve their balance of payments.Lower production cost drudgery cost in developing countries is lower due to low labour cost, raw material as compare to UK, USA or European countries and international trade has allowed them to get advantage of lower production cost.Comparative advantageSome countries are specialised in producing product. Due to International trade and globalisation, countries are buying product from those countries that are specialised in producing product at lower cost. Such as India is providing outsourcing services to UK, USA, Australia, Canada etc.Non financial benefitInternational trade has brought non financial benefit to the countries such as it has lead countries to make strong political relations, understanding each other culture and work together. Indonesia, India, Pakistan, china has strong relationship with UK.Increase competitionIt has lead to increase competition in the market. Countries are getting bene fits from high competition as it leads to low price product to capture market.4.2 Impact of Two European Union Policies on UK businessEuropean Union has implemented different policies but the main both areWorld Trade Organisation (WTO)The main impact of European Union policies includes the introduction of free trade, world trade organisation, which has significantly affected the UK economy. Free trade has lead to increase competition in the European Union markets.Flow of migrantThe major economic impacts of European policies are flow of migrant. It has lead to low skill labour to fill the gap in labour market. However significant flow of migration in UK has increased unemployment.(D2) Single owner crinkleInternational trade and global economy has brought significant competition in the market. There are many suppliers available to provide a long range of products and product substitutes are easily available. Those customers who prefer to buy less expensive product can easily get th e products of their choice. The globalisation and international trade whitethorn have impacted the market at large level but the small market is still safe to some extent. However at macro level, globalisation has strongly affected the GDP, which has put pressure on government monetary and fiscal policies to respond to those forces.4.3 Economic Implication of Entry into EMUThe economics of Europe has affected the market of its member and has brought significant changes in it. These includesSingly currencyEuro is major currency in major parts of Europe which is used daily by 60% of Europe citizens. A single currency has minimised the exchange cost and eliminate exchange risk.Price StabilityIt has improved the price stability by keeping the interest rate and inflation rate at a low level.European Single Market ActThe introduction of WTO, the goods will be traded freely between the euro zone has minimise the import duties and payments are being dealt in singly euro currency has minimi se the cost of trading between different countries.(D3) Convergence into EuropeEMU has introduced fine convergence criteria for membersInflation rate should not top out 1.5%.Interest rate should not rise more than 2%Budget deficit should not exceed 3% of Gross Domestic product market priceNational debt should not exceed 60% of gross domestic product market price.Exchange rate should remain at normal ERM Bands for two years.