What type of company is Coca Cola?
his unit is based on Business at work. The company I have chosen to write my report on is Coca Cola. Coca Cola is a well-respected company and one of the biggest companies in the world. Coca Cola was founded in 1886, which is over a century ago. The company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups used to produce more then 230 beverage brands. Coca Cola corporate headquarters are located in Atlanta, with local operations in over 190 countries worldwide.
What type of company is Coca Cola? Coca Cola is a public limited company. A public company has its shares bought and sold in the stock exchange. The main advantage of selling shares through the stock exchange is that large amounts of capital can be raised very quickly. The main disadvantage is that the original shareholders can lose control of the business if large quantities of shares are purchased in a big take over (51% of the entire shares) Coca Cola and its community Coca Cola has a promise to their customers. Their promise is short and very simple.
“The Coca Cola Company exists to benefit and refresh everyone who is touched by their business. Fulfilling the promise means that everyday we have to live up to our values so that people continue to invite us into their lives we have to maintain our special place in local cultures, recognizing the difference between countries and regions. We must operate as model business citizens, shaping the business decisions we make to improve the quality of the life of our communities in which we do business. We feel that we should supply the thirsty people in this world with what they want. ”
Ownership of Coca Cola Coca Cola has a public ownership. Coca Cola is a public limited company. This means that its shareholder owns it. Coca Cola is under both sectors; secondary and tertiary. The reason for this is they produce their own products such as ‘Fanta’ and provide services to their consumers. Other public limited companies could include Tesco’s British airways, HMV, and First Sport. Public limited companies are companies where you can buy and sell shares in a stock exchange market without having to ask permission of a shareholder like you do in a private limited company.
This is the largest type of privately owned enterprises. Coca Cola is a large company and one reason being this could have been by the amount of capital they had raised and they way they would do that is by selling shares throughout the stock exchange market, you will receive large amounts of capital very quickly. If someone makes a takeover bid and takes more then 50% of the shares then they would be made the new owner of the company but that is very unlikely because Coca Cola is worth a lot of money as it is one of the biggest companies in the world.
Money brought in by the shareholders is spend on things like improving quality and machinery. If Coca Cola was to make a major decision or investment they would have to inform their shareholders of what they are doing There are different types of ownership like sole trader and partnership. A sole trader is a business, which is owned by one person for example an off license. There are different types of sole traders like plumbers, hairdressers and an accountant could be a sole trader unless they work for a company.
Sole traders have unlimited liability which means that they are personally liable for the firms debts and will have to pay them out of their own pocket. The advantages of a sole trader are that the firms are usually small and easy to set up. Only a small amount of capital needs t be invested to start up the business. There will be not many employees working for you; sometimes none so there will be no wage cost for the company. The owner can make decisions without consulting someone else.
The disadvantages for being a sole trader will often work long hours and find it difficult to take time off if they want to take a holiday or if they are ill. If you want to make the business bigger then it is it will be difficult due to the amount of limited capital you will have. There will be the risk of limited liability where the sole trader can be forced to sell his or her personal assets to cover any debts. Advantage of this type of ownership -The shareholders have limited liability which means Their owners are not personally liable for the firm’s debts
-Public limited companies benefit from economies of scale which is money savings made by large companies, they make these savings buy buying in bulk and getting a cheaper average cost for each product because it will be cheaper for them to buy in bulk. The Shares in the company can be freely bought and sold, the reason for this is A Public Limited Company can sell its shares on the Stock Market, while a Private Limited Company cannot. Unlike a sole trader or a partnership, the owners of a Limited Company are not involved in the running of the business, unless they have been elected to the Board of Directors
-The company can easily raise capital for expansion and development buy selling its shares to the public. -Banks and other financial institutions are more willing to lend the company money because of the company’s reputation and profits, usually at preferential rates of interest because they have a high expectancy of getting their money back. -The companies continue existence does not depend on the founders of the business because anyone can take over the business as long as they have bought enough shares on the stock market of the business. Disadvantages of this type of ownership
-The founder owners can lose control of the company because its shares can be readily bought on the stock exchange -Starting a public limited company is expensive compared with other types of business and requires a great deal of documentation To become a public limited company, applicants have to submit a Memorandum of Association which states the business’ name, address and main purpose. It also describes the liability and amount of capital invested. The internal workings of the company including the number of directors, how they are elected and what their roles are described in the articles.
This also describes how profits will be divided. -Large organizations can become difficult to manage efficiently; staff often feels ignored by remote management -They have to have detailed financial accounts, which must be published each year that provides valuable information to competitors and prospective take over companies. -Annual reports need to be submitted and given to every shareholder. -Company could get the threat of a takeover bid. Objectives of the Business An objective is a way which you will govern yourself to operate.
Every company sets themselves different kinds of objectives, objectives are very important as they give you a clear idea of the direction you are heading in, another way of describing an objective would be a target, here are some of Coca Cola’s objectives: Making a profit: This objective is one which I think most companies would set themselves because most companies would like to make profit. If a company does not make any profit it will eventually become bankrupt and go out of business. If you wanted to calculate profit you would find the difference between the total revenue of a business and its total costs.
If a company does not make a profit then shareholders would be affected, employee jobs will be at risk, suppliers may be affected because they may receive less money or maybe worrying about receiving less money from the company, and the government would be affected, as the company would pay less tax. Profit is important because it allows you to expand the business as a whole, shareholders will receive more dividends for their shares because more profit would show that the business is successful.
This would allow managers and executives to make key decisions in expanding the workforce, product range or the facilities. Increasing share or market share: All business like to have a wider market shares then others, mainly their competitors, as this gives them a better image and places the business in a stronger position compared to its rivals. Market share and profits are very important to a business as well as its shareholders because the shareholders want to invest their money where they can make a profit. So mainly they would invest their money into company that are more profitable.
Surviving in the market: Every companies main aim is to survive in the market otherwise if they don’t then they will also be bankrupt. Competitive markets, taste, new fashion can affect a company’s survival, because a company may have a lot of a certain product for example they may have a lot of ‘Reebok’ trainers but they may not be in fashion and they may lose profits from this and not survive in the market. Falling profits will affect a company’s survival the market as well. Producing high quality products & offering high quality services:
Coca Cola makes sure that all their products and goods are at the best standard and that if the product purchased is not up to standard the product can be returned and refunded. This maintains quality control so that Coca Cola can find out if there is something wrong with the product that they purchased it will be returned so that Coca cola can find out what is wrong with it and they can prevent it from happening in the future. This will keep the customer happy so they will carry on buying Coca Cola, if Coca Cola did not do this then customers may switch to another brand. Improve customer service and customer loyalty:
Coca Cola tried to improve services and loyalty towards the customer by making sure that the customers have accessibility to the products all the world and ensuring that each product is at a high standard. Coca Cola’s objectives The main reasons for Coca Cola being the worlds leading soft drinks manufacturer are their low prices, high quality and excellent service that they provide. Customer service objectives: Coca Cola like any other business, they want to provide the customers with good service. The way they will do this is by refunding money if customers are not satisfied with their goods. Pricing objectives:
Coca-Cola keep their prices as low as they can to keep customers satisfied but at the same time making a profit. They also undercut their competitors prices in order to attract more customers and gain a wider market share. Profit making objective: Their aim is to make high profits but still keep low prices for their customers Promotion objectives: Coca-Cola has a number of advertisements and they often change them according to the season. One example of this could be during the Christmas season coca cola would make a Christmas advert and add things in the advert like Christmas tree’s, snow and maybe Santa.
Ranges of products Coca Cola have many types of soft drinks, they actually have more then 230 and they are always looking to expand. They do this so they can cater for all types of people and attract more customers worldwide. Functional areas of the business Production Department This department that makes sure that the Coca Cola products are up their high standards. This department is in charge of quality control and quality assurance. This is very important to a business, because if the products are not up to their high standards their will be complaints about the products and consumers will not purchase them.
This department helps the business to keep its customers. I. T Department This department takes control of internal and external communications. This department makes the advertisements and posters of the company. The Internet is also involved in this department. If Coca Cola wanted to make a poster or an advert then they will consult this department and this department will then make up the idea of the advert or poster and then actually make the idea into film or poster.
This department also controls the payrolls of people, they are responsible for the calculations of pay so if one of the employee’s feel’s he or she has been paid less they will consult this department. The department also decreases costs for the company, before companies would have had to pay postage and packaging or paid for communication with other companies either by phone or letter’s but now they can just email who they want instead of writing letter’s which works out faster and cheaper for the company itself. This means that there is time to do other work for the company. Human resources Department
This department recruits staff and helps to train them up. They produce application forms and give them out, once they have received the replies they will then look at all of them and select the ones which they feel are best suited for the job and more qualified in some cases. After this they will then send out an email or letter to the applicants to say that they have an interview with them. They will then interview the chosen applicants and then they choose the best ones form the interviews. This department is very important for the company, as they need to select the people with the right qualities for the job.
The department helps to improve customer service. They do this by employing people with the right qualities and experience. The employees are fully trained by the department before dealing with customers. They are trained to answer to all question put forward to them. Sales Department Depending on the organization and whether it is selling goods or services, both sales revenue and sale volume can be relevant The success of the organization is measured in terms of quantity, that is the number of people who use the service, while for a manufacturing business quantity might only be achievable with a price cut and therefore a loss in revenue.
There can be conflict within a business if it tries to achieve maximum sales at the same time. It has suggested that managers aim to maximize the sales revenue of the business while at the same time making just enough profit to satisfy the shareholders. The reason for this is that most managers get rewarded on the sales they make rather then the profits. Stock More store managers have a concern of running out of either the equipment or raw materials needed by the business or the finished goods.
The result is that they treat the stock as their own personal belongings. The advantage of this approach is that The production department knows there will be no hold-ups in production because of a shortage of components The sales department knows that it has stock available and can guarantee delivery. Coca Cola has thousands of local operations in countries worldwide. This means that Coca Cola has millions of employees worldwide. Every department within Coca Cola has the exact same organizational structure.
It is important to all companies that they have a clear organization structure because this will make the business work more efficiently and effectively. It will also make the companies targets easier to teach. The organizational structure is to show each department how it is organized and the employees within the department. The customer service department deals with customer satisfaction. Their role is to make sure that all customers are satisfied with products and services provided by Coca Cola.
This department also sorts out all problems that customers may have, for example they are not happy with the people who are giving them service, or they may have found things in their drinks etc. Coca Cola’s organizational structure is very large because it is such a large company. So it is very important that Coca cola has a very clear organization structure, this will benefit the company as it will make achieving targets much more easier. Culture of the Business There are many different types of cultures that a business can adopt; these are some examples of cultures within a business
Role Culture A tradition operating style, relying upon agreed procedures and strict hierarchy and roles within the organization. With the tradition roles, employees are expected to behave convent ally. It is very important to follow the rules and individualism is discouraged. Everyone is expected to act the same and get on with their work. Some government departments and merchant banks operate with this type of culture. Role cultures flourish in stable and predictable environments. Role culture conducts the following things