Task 2 E3 C1
In order to find out the company’s success, I will read the annual report given by The Coca-Cola Company or will visit the Website of The Coca-Cola Company or email them asking them their success i.e. profits and sale revenues.
Task 3 E5 C2 A1 A2
First I will describe the mean of the word “management style, culture and the organizational structure”. Every company has its own style of management and culture and different culture. The management style, culture and the organizational structure of The Coca-Cola Company will be stated on the booklet, provided by the company itself. Going through the internet and reading through the booklet will states the above task.
Task 4 E6 C3
I will define “internal and external communication”. Both types of communications are important for each company. They have different meaning. Advantages and disadvantages of each type of communication will be explained. What does internal and external communication contains (i.e. verbal, media etc) and why it is important, all relevant information will be describe and then I will describe internal and external communication of The Coca-Cola Company.
b) Business cannot be run without ICT. I will describe the advantages and the use of ICT and then will tell you why The Coca-Cola Company uses ICT and explain the negatives and positives uses of the ICT on internal and external communication.
Task 4 E7 A3
The word “added value” will be defined briefly. Explanation of how the business adds value to its goods, description of production processes, quality assurance will be done using business keys. I will define each process, which the company uses, advantages, and disadvantages of each process the company uses.
*All these tasks will be finish by me using the “Business Key Term”. I will try my best to make this coursework the best so that I can achieve the highest grade
Task One E1
They type of businesses
- Private and Public enterprise
- Limited Liability
- Franchising
- Co-operative
- Holding Companies
PRIVATE OWNERSHIP
Sole Trader
Sole trader is a type of business owned by one person who provides all of the capital needed to form, operate, or expand the business. The sole trader is the simplest and most common type of enterprise. It is the easiest form of business to set up and it is more likely to fail than any other is.
Sole trader tends to have fewer employees and less machinery or capital than larger businesses. They also have less plant facilities and less opportunity to make economies of scale.
Advantages
- The small size of this type of business requires a relatively small amount of capital for formation.
- The owner does not have to consult with anyone else when making decision therefore decision-making is fast.
- All the profits goes to the owner
- The owner will be familiar with all aspects of the business.
- There is less form filling than there is, for example, limited companies, and the bookkeeping should be less complex.
- There is no legal cost of drawing up partnership agreement or limited company documentation
DISADVANTAGES
- The owner’s personal assets are at risk because the business has unlimited liability, this means when the business fails then the owner has to pay all his assets to cover the loss he made, he might have to lose his personal possession like house, car etc.
- There can be difficulties in continuing business if the owner is on holidays, ill, or dies.
- It is difficult to borrow money from the banks.
- Shortage of capital may occur because all the capital has to be provides by one person i.e. the owner.
- No new ideas will come to the business because only one person is running the business.
PARTNERSHIP
A partnership is a group of individuals working together in business with a view to making a profit. Individuals can be more than 2 but not more than 20. Each partner shares the capital and share the liability.
Advantages
- Easily formed
- Greater continuity than sole trader
- More people are available to contribute capital to the business.
- Expenses and management of the business is share.
- All the losses are share.
- New ideas come in the business.
- There is a cover for the sickness, illness, and holidays.
Disadvantages
- All the profits are share among the partners
- Decision-making is slow, because each partner has its own opinion and points
- Unlimited liability, each partner is liable for the whole debt of the partnership, to the extent that he/she may be made personally bankrupt if the business fails.
- Possible conflict between partners.
PRIVATE LIMITED COMPANIES (Ltd)
Any company, which is not registered as a public company, is a private limited company. Both private and public limited companies are referred to as joint stock companies because the money is contributed by many shareholders is combined to form a joint stock of capital assets, which is used in some form of business enterprise to generate further profits which is divided between the shareholders. Private limited company is allowed to from two to fifty numbers of members. The capital of the firm is divided into shares, but the shares are not sold on the Stock Exchange.
ADVANTAGES
-
Have more people to contribute the capital than the sole trade or partnership.
- Has greater continuity than smaller business.
- Limited liability
- Easy to borrow money from the bank.
- New ideas can come in to the business.
- Risk is spread among the shareholders.
DISADVANTAGES
- Capital rising possibilities are limited because shares cannot be offered for public sale
- Capital rising may be further limited if the company decides to restrict share transfer.
- Audited accounts have to be available for inspection
- Decision-making is slow because of shareholders
PUBLIC LIMITED COMPANIES (plc)
A public limited company can offer its shares for sale on the Stock Exchange Market in order to raise the capital. Public limited companies have the same features as the private limited company but plc has more advantages than private limited company.
ADVANTAGES
- Have limited liability
- Enjoy maximum continuity
- Can raise capital by issuing more shares
- Large size enables them to enjoy ‘economies of scale’, such as being able to buy supplies in bulk
- Find it easier to borrow money from the bank without any hassle.
DISADVANTAGES
- Formation involves considerable documentation and expenses.
- Company, employees, and shareholders become too detached from one another because of large size.
- Have to make annual report to show the company cash flow in and out.
FRANCHISING
In franchising, a company allows someone to buy the right to use their products or technique under trade names. Franchising offers a ‘ready-made’ business opportunity for those who have the capital and are willing to work hard. The potential entrepreneur of franchisee pays to the name, products or service of the franchisor who receives a lump sum and a share of the profits of the business.
The Coca-Cola Company was registered in 1893 in the United States. In 1895, The Coca-Cola Company was turned into public limited company. The company trademark is The Coca-Cola Company without ‘plc’ at the end. There are over 5,600,000,000 shareholders. The Coca-Cola Company’s shareholder has limited liability. The company has easily raised the capital by issuing more shares.
BUSINESS OBJECTIVES
The main objectives of The Coca-Cola Company are:
- Maximize the profit lever
- To provide good service to the consumers
- To expand the business
Every business main objective is to maximize their profit level and that is the reason they start up a business. To maximize the profit level enable the company to enhance the business, to expand the business, allow business to take over other business, buy new machineries, and pay more dividends to the shareholders.
Enhancing the business means to upgrade the business in a sense that a business buys new Computers, new office equipments, new furniture, expand the office, employee more labour etc.
Expand the business is also another main objectives of a company. This enables them to expand the business overseas. Have their offices around the world etc.
FUNCTIONAL AREAS OF THE COCA-COLA COMPANY
Marketing Department
Finance department
Advertisement department
Packaging department
Manufacturer department
Research and Development Department
Marketing Department
Marketing department at the Atlanta Headquarters develops core strategies for Company brands to ensure that all communication is consistent in every market. Global marketing colleagues and independent bottling plants personnel around the world to pursue locally relevant executions of those strategies. With this cohesive effort, the Coca-Cola system maximizes its resources for market leadership and profitable growth.
Finance Department
The Finance department of The Coca-Cola Company is responsible for financial record keeping. This involves keeping records of money received
and paid out. The financial records will be used to produce the annual reports for the shareholders so that they can see the company performance. The Finance department is also responsible for the management accounts of the business like marketing etc. The Coca-Cola Company finance department is also responsible for making budget of the company and for each department like marketing department or research and development department. They will also be involve in the planning process like taking over or any major decision
Packaging Department
The packaging department of The Coca-Cola Department is responsible for the packaging of the products. They have to make the packaging attractive so that that product meets the eyes of the consumers. Bringing new products package is their responsibility.
The Sales Department
The sales department of The Coca-Cola Company is to coordinate the selling program. They also have to make the distribution methods etc. Also how much to sell and how much to store in the warehouse and to choose the transporting methods.
Research and Development Department
These departments have their budget given by the finance department and their responsibility is to investigate new products. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. If necessary then they also have to improve the quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like DIET COKE WITH LEMON, FANTA Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.
Administration Department
This department is essential in keeping the wheels of the business. The maintenances of the company equipments etc. They also acts as a help support of the company, this means if there is any enquiry by the customers, the customers will ring the helpdesk support and complain about the products or any information that the customers need will be provided by the this department. About the complains, these complains will be transfer to the research and development department to make the product better or to fix the problem the consumer having.
These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfy the customer by providing the information they needs and taking the complains and passing to the research and development departments who improves the products. The marketing departments are responsible for marketing the products and advertising the products and promoting the products.
If all these departments perform their duty firmly then the objectives of The Coca-Cola Company will meets.
