Coca Cola Company Is the Market Leader

¶ … Coca Cola Company is the market leader in the production of soft drinks and non-alcoholic beverages globally. It has a long history of excellent performance courtesy of its extremely efficient management style. The company has been considered as a monopoly in the industry. This is because it has dominated the market as the key player in production of soft drinks and non-alcoholic drinks.

Basic legal

The legal system of a country where Coca Cola operates largely affects the company's political system. For example, the relationship between the judicial system and the political process is a vital factor to the existence, growth, and survival of Coca Cola in the region. National laws particularly in the areas of employment practices, safety standards, trade and patent probations as well as health and safety standards affect many organizations. There are also laws governing any cross-border activities such as payment of custom duties and dividends on imports and exports. International laws are meant to determine how Coca Cola operates in the process of manufacturing, distribution and selling of its drinks across borders. Such laws include international treaties that govern the transfer of waste across borders (Unesco, 2009).

Social and Economic Environments

The Coca Cola Company is currently facing a serious challenge because of the industry's economic environment. This includes indices such as the relationship between the power of international and domestic currency, inflation rates, taxation, national income, availability of resources and balance of payments. However, Coca Cola is likely to boost investments in different countries that operate under deeply rooted legal, regulatory, corporate and finance reforms.

Societies have been enriched by Coca Cola through manufacturing soft drinks and beverages as it intends to win the respect and trust of the global community. This is aimed at preserving a steady and lasting growth whilst harmonizing global societies and the environment. Coca Cola is pursuing multicultural human resource policies that facilitate global mobility of their highly competitive talents. This will enhance the company's success in the global market characterized by the ever-changing demographics. Economies are advancing, and the younger generation is increasingly demanding more creativity in products and services. The management of Coca Cola emphasizes on transparency concerning product information, environmental practices, workers, treatment, and the company's political contributions. This helps the customers to make judgments on the behavior of a company and its business principles (Hiles, 2005).

Management Structure

Management structure of the company has introduced a new management system whereby chief officers have been appointed the directors of the company. They are the top authority undertaking diverse operational functions. The Coca Cola Company has developed this system because of its philosophy of emphasizing developments at the sites. The chief officers are the primary link between the site operations and management. This system does not focus exclusively on the management. In addition, the above system allows managers to make decisions directly at the site operations. This is done through reflecting on the opinions of site personnel on the strategy of management and implementing the decisions of management in to real operations. Moreover, Coca Cola has appointed a team of seven corporate auditors, four of whom are external auditors. This team is responsible for monitoring the company's management (Hiles, 2005).

Operational and financial issues

Coca Cola boasts in the producing soft drinks and beverages industry with operations stretching beyond its domestic operations shores. The company is battling a lot of environmental factors and hurdles. For the company to sustain its global command in the future, it has to combat these factors successfully. The company is currently under expansion in global markets and controlling operations in overseas markets as well as in domestic markets. As mentioned above, the company is battling key issues related to finances. Such issues include rates of inflation, the power of international and domestic currencies, taxation, national income, availability of resources and balance of payments. In this context, Coca Cola's operations will only be successful in countries that have set deeply rooted legal, regulatory, corporate and finance reforms. As a result, such nations are likely to enjoy increased investments (Unesco, 2009).

Impact of Potential Change Factors

There is high competition due to emerging economies in the worldwide industry of soft drinks and beverages. New entrants in the beverages markets pose a massive threat to Coca Cola. With increased globalization of the world economy, the beverage industry has intensified its degree of competition amidst the problems in the overall market conditions. Additionally, as globalization continues, it is likely to draw upon more intensified competition in the industry thus prompting heightened industry reorganization. Competition in this industry is affected by factors such as product features and quality, reliability, safety, the amount of time required for innovation, customer service, pricing and financial terms.