MANUFACTURING ORGANIZATION DESIGN &

CONTROL

Identification of Coca Cola’s

Organizational Environment

By:
Ivana Dione / 4175
Thomas Bagus Budi Prakoso / 5268

ATMAJAYA YOGYAKARTA UNIVERSITY

INDUSTRIAL TECHNOLOGY FACULTY
INDUSTRIAL ENGINEERING INTERNATIONAL CLASS
2010
 Coca Cola Bottling Indonesia Overview
The Coca Cola Bottling Indonesia is the leading manufacturers and distributors of soft
drink in Indonesia under the license of The Coca Cola Company. The Coca Cola Bottling
Indonesia is a trade name and is made up of joint venture company formed by local
companies, owned by independent businessmen, and Coca Cola Amatil Limited, which is one
of the largest manufacturers and distributors Coca Cola products in the world.
The company produce and distribute Coca Cola products to over 400,000 outlets
through more than 120 Sales Center. They also employ approximately 9,000 employees.
Their main products are such as Coca Cola, Sprite, Fanta, and Frestea, are produce in
their factory all over Indonesia. They not only produce soft drinks, but also tea, isotonic
drinks, and mineral water. The products that Coca Cola Bottling Indonesia produces are Coca
Cola, Diet Coke, Coke Zero, Sprite, Sprite Zero, Fanta, Fanta Vitamin C, Schweppes, A&W,
Frestea, Frestea Green, Frestea Green My Body, AdeS mineral water, Powerade Isotonik, and
Minute Maid Pulpy Orange.
Because Coca Cola is a large company, it also has a wide scope of organizational
environment, which is give us many topics and ideas to discuss and to gain more
acknowledgement about identifying the environment of a company or an organization.
 COCA COLA ORGANIZATIONAL ENVIRONMENT

Sometimes, there occurs some conflicts among the stakeholders of a company

because each stage and part of the stakeholders have different concerns and objectives.
Therefore, we will explain each stages and each part of the Coca Cola’s organizational
environment.

The Internal Stakeholders of Coca Cola Company

 The main attributes in internal environment include, efficiency in the production
process through management skills and effective communication channel among all members
of the internal stakeholders. To effectively control and monitoring the internal environment,
the Coca Cola Company must conduct continual appraisals of the businesses operations and
readily act upon any factors that causing inefficiencies in any phase of the production and
consumer process.
1. Shareholders
They concern on earning profits.
2. Board of Directors (Management)
They have concern to keep the labor and material cost down, so, they can keep the
production cost low.
3. Employees
While the employees want to have raises and increased benefits from the company.

The External Stakeholders of Coca Cola Company

1. Customers
The customers of Coca Cola are, individual consumers, food stores, and other retail
outlets. Customers have influence in demand, complaints, and trust, which must be
consider by the company, because the customers taking the most important role in
company performance.
2. Suppliers
The supplier of Coca Cola for example are Nutrasweet as the producer of aspartame
which is one of the ingredients in their product, Stepan Company as the authorized
company to process and import coca plant which we know is the main ingredient in
Coke, the packaging company, the local raw materials suppliers, the machinery
company, etc. As supplier, they have objective to gain more revenues by charging
higher price to their customers. They also taking important part for the progress of a
company, so the management must able to build an effectively and efficiently
comunications with them in order to establish a good supply chain for the company.
3. Competitors
The first competitor of Coca Cola is Pepsi Cola, followed by 7Up (Seven Up), and
other soft drinks products. The presence of the competitors of a company can bring a
good impact for the company itself, this condition will make the company more
 innovative.
4. Strategic partners
Coca Cola have several strategic partners, such as McDonald’s, Pizza Hut, and the
other restaurants in Indonesia. These strategic partners taking role in the product’s
marketing of Coca Cola.
5. Government
Several government policies that have impact directly to the Coca Cola company are
BPOM (Food & Drugs Supervision Agency in Indonesia) registration, Environmental
Protection Agency, Labor Law, regulations for beverages manufacturers, etc.
6. Media
The function of media is for advertising. Advertisment is not only via the paper and
television media, but also can be done via some events. The advertising media of
Coca Cola is print / paper media in magazines, newspapers, etc.; television media
which sometimes the advertising is a collaboration with popular artist in their market
segment and adjust the advertising with the public holiday in Indonesia.; international
events and foundations, such as become the sponsor of Olympics and WWF.
7. Local Communities
The local communities have concern with the environmental issues and labor
standards. The example of local communities are, labor union, Green Peace, WALHI,
etc.

The General Environment of Coca Cola Company

1. Technological Variables
Some technological variables that we can identify in Coca Cola are:
• The effectiveness of company’s advertising, marketing, and promotional
programs. The company use the new technology of internet and television to
make their product more attractive, therefore they can socialize their products
to their costumers more effectively and efficiently.
• The introduction of slimmer can and plastic bottle in order to make their
products is easier to carry.
• Using newer machinery technology for production.

2. Political Variables
 Some variables of this sector, such as:
• Changes in tax rates and regulations
• Political problems and conditions, l. e.: Century case
• Changes in the government regulations
• Indonesia governement plan to have a global trading with China
• The rise in private healthcare and privatisations under Conservative
governments.
3. Economical Variables
• The global economy crisis that happen last year, inevitably also give impact to
the Coca Cola company. Day by day, the purchasing power of Indonesia
people is decreased because of the difficult economy situation in Indonesia. It
makes them not buy this kind of products which is expensive for them.
• A recession creating increased activity at the lower ends of product price
ranges.
• Rate of interest rises depressing business and causing redundancies and lower
spending levels
4. Social Variables
• The changing attitudes and lifestyles Indonesian people. Many Indonesia
citizens getting aware about health issues. This condition force the beverage
manufacturers like Coca Cola to produce dietary products, mineral water, and
also isotonic waters.
• The increasing number of women going out to work, for example, led to the
need for time-saving products for the home.

Source:
http://www.coca-colabottling.co.id/