Name of the Company

Coca-Cola Beverages Philippines, Inc.

Nature of the Business

Coca-Cola Beverages Philippines, Inc., formerly Coca-Cola FEMSA Philippines,
Inc., is a Philippine-based company engaged in the manufacturing, bottling, and
distribution of Coca-Cola products in the country. This non-alcoholic beverage brand is
a subsidiary of The Coca-Cola Company, and it was founded in 1981 as Coca-Cola
Bottlers Philippines, Inc. It operates nationwide, with 19 manufacturing plants and
approximately 50 sales offices and distribution centers, employing more than 9,700
regular employees.

Types of Business Environment of the Company

The ever-changing business environment has and is still continuously
challenging businesses in applying various measures to adapt and stay in operation.
Business environment consists of internal and external forces that exert pressure on its
activities. The internal business environment consists of the factors within an
organization that can be manipulated and controlled by the management for the benefit
of the organization. On the other hand, the external environment comprises of
legislative actions, economic conditions, and social forces that a business has no direct
control of.
As aforementioned above, the internal environment pertains to the factors that
are regarded as controllable. Examples are the financial resources, physical and human
resources, objectives of the business, work environment, company image and brand,
labor management relationship, and the company’s technological capabilities. These
factors are crucial, a reason why Coca-Cola Beverages Philippines, Inc., continues to
properly manage its internal environment to continue its success.
To point the company in a specific direction, they identified their main mission or
objective as, to refresh the world, to inspire moments of optimism and happiness, and
to create value and make a difference. Because Coca-Cola Beverages Philippines, Inc.
understands how employees are an indispensable aspect of the fulfillment of this
mission and to the success of the company, they treat their employees as the heart of
their business. In this light, they ensure to properly impose policies and to address labor
management through the appropriate division of tasks, the provision of just employee
benefits, as well as the provision of a work environment that allows the human
resources, the employees, to improve their skills and values in the work setting. This is
evident in their vision statement which states that they strive to provide a great place to
work where people are inspired to be the best they can be.
 Regarding the company’s financial resources, Coca-Cola Beverages Philippines,
Inc. invests in multiple charitable organizations and in is involved in the addressing of
the Sustainable Development Goals (SDGs). They also invest in technology through the
continuous improvement and development of how they produce and distribute their
products. Because of this, the company controls their resources wisely, ensuring the
proper procurement and utilization of funds. This is evident in their 2019 Business and
Sustainability Report. Furthermore, this affiliation and involvement in the fulfillment of
the SDGs also enabled the company to build and establish a strong image and brand,
gaining respect from various stakeholders.
As for the external business environment, as defined earlier, it refers to the
factors that a company has no control of. Hence, a company’s success depends on how
it responds or adapts to the environment. There are two types of external business
environment, the microenvironment, and the macroenvironment.
The microenvironment is composed of the suppliers, customers, competitors,
and marketing intermediaries. Since similarities in micro elements can be drawn from
one company to another, the success of a firm depends on their relative effectiveness in
dealing with these elements. Coca-Cola Beverages Philippines, Inc. has more than 30
suppliers and they have maintained a professional and good relationship because of
their honest conduct of business. The company also has more than 20 competitors,
however the most acknowledged company is PepsiCo Inc. As for customers, the
company has a great number of consumers, ranging from merchandising business
owners to common individuals of all ages, enabling the company to sell 1.9 billion
servings per day. Finally, Coca-Cola Beverages Philippines, Inc. has multiple marketing
intermediaries. Fast food chains like McDonald’s and Jollibee are examples for Coca-
Cola products are marketed through their menus. Broadcasting networks and various
actors, actresses, and artists also market the products in the form of advertisements.
The other type of external business environment is the macroenvironment. This
type is further divided into two, the economic and non-economic environment. For the
economic environment, economic factors have a major and direct impact on the
business of large companies like Coca-Cola. As a beverage company, the company
needs water in great amounts for production, but its availability is limited. In addition,
the rising costs of raw products and labor has risen over time. Aside from the products
and manpower needed to manufacture the company’s products, the current pandemic,
COVID-19, also greatly affects a lot of businesses as some are closing and failing,
affecting the world’s economy. Since most people are staying inside of their homes, not
working and not earning income, people are also switching to the purchase of only the
necessities under such conditions.
As for the macroenvironment, it consists of the socio-cultural, legal, international,
political, technological, and natural environment. Under the socio-cultural environment,
with the global drive of obesity as well as other health problems, consumers have been
starting to move away from unhealthy products and adopt healthier lifestyles. However,
to address this, Coca-Cola Beverages Philippines, Inc., or the Coca-Cola Company in
general, introduced healthier alternatives. In the legal and political environment, non-
alcoholic beverages fall in the category under the FDA and the government plays a role
within the operation of manufacturing these products. The government also affects the
international environment as there are policies in importing and exporting. In terms of
regulations, the government has the power to set potential fines for the companies that
did not meet their standard law requirement. But in the company’s 2019 Business and
Sustainability Report, Coca-Cola Beverages Philippines, Inc. assured that they conduct
their activities with the primary consideration of the laws and regulations set and
mandated by the government.
Technology or the technological environment also plays a vital role in large
businesses such as Coca-Cola, for it ensures timely production and an efficient supply
chain. The production, packaging, and distribution of the company’s products rely
heavily on technology. Thus, technological factors have an important and sizable impact
on the business of Coca Cola. In addition, the company has also utilized the different
social media technology in order to connect with audiences. Finally, for the natural
environment, the company ensures that manufacturing plants are in accessible areas,
allowing efficient distribution and transportation.
Throughout the document, it is clear that Coca-Cola Beverages Philippines, Inc.
properly manages their internal environment as they are aware that the appropriate
manipulation of the internal factors directly affects the performance of the company.
Similarly, they value their external environment, as how the company conducts its
activities is based upon these external and uncontrollable factors.

References
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Coca-Cola Company. (2019). Coca-Cola business and sustainability report. Retrieved
November 5, 2020 https://www.coca-colacompany.com/content/dam/journey
/us/en/reports/coca-cola-business-and-sustainability-report-2019.pdf
Nyakangi, E. (2020). Coca-Cola: External and internal environments market analysis.
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