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Essay / The effect of changes in the political and legal context...
IntroductionBusinesses always operate in a certain environment; the formulation and implementation of business strategy are also limited by particular environmental factors. In other words, the environment determines the strategy, decision-making, organizational structure and management styles of companies. Environmental awareness has become the starting point of environmental analysis. In general, business strategy should take into account two environmental factors: internal and external environments. In addition, since the degrees of influence are different, outdoor environments are divided into macro environment and industrial environment. The productivity and operation of modern businesses have been increasingly impacted by the external environment. Strategic management for the needs of the organization includes a comprehensive and objective analysis of the change in the external environment, based on the research result to establish the strategic goals and plans of the organization. The enterprise and its external operating conditions are in a relationship of interaction and interdependence. The purpose of the study on the peripheral environment is to give organizations the opportunity to identify possible development opportunities and potential threats, and use them as conditions and limits for developing the business strategy. General Information: The Coca-Cola Company was established in 1892, headquartered in Atlanta, United States, Ochoa is the world's leading owner and marketer of soft drink brands and the largest beverage manufacturer in the world. world, which has a global market share of 48%. Alongside Coca-Cola, the world's most valuable brand, The Coca Cola Company owns and markets four of the...... middle of paper ......mpany be influenced. First, legislative and regulatory changes, such as changes in accounting standards and tax requirements, will impact capital allocation and accounting methodology. And then, changes in the soft drinks market, product competition and pricing pressures could take some of Coca Cola's sales. Additionally, political conditions, especially in international markets, include civil unrest or changes in government which also impact the operation of Coca Cola in that market. These changes in the political and legal environment have a general negative impact on the operation of the Coca Cola Company; however, their incidence rate is low. The company must remain attentive to changes in political and legal environments, anticipate the threat and ensure that the company operates in a long-standing environment..