External Environment Of Coca-Cola According To The Journal

Post 1external Environment Coca Colaaccording To The Journal Of Defe

Post 1external Environment Coca Colaaccording To The Journal Of Defe

Post 1 External Environment - Coca Cola According to the Journal of Defense Resources Management, the influences between organizations and their external environment are reciprocal (Muscalu, 2016). The organization influences the environment through their products and services whereas the external environment influences the organization. External environment influences (economics, legal, political, sociocultural, and technological) impact the business operations. In a recent Forbes article written by Armen Gharbegeian, it is suggested that the technological environment has impacted the process of design, thinking conceptualization, and product development (2018). Organizations are able to develop and produce a product much faster.

This would clearly explain the recent development of an alcohol infused Coca-Cola that is now sold in Kyushu Japan. This lemon-flavored fizzy drink is now being sold with 3%, 5%, and 7% alcohol and is a huge success in the Japanese market (Morris, 2019). This new design for Coca-Cola is the direct result of a cheaper alternative for beer. The external environment (technology) has caused Coca-Cola to advance far beyond what it offers in the United States. However, this influence from the technological external environment has been a win for Coke.

Post 2 External Environment - Airbnb Organizations around the globe are encompassed with a domain that has many opportunities and dangers. Those organizations need to ensure about their qualities and know about their shortcomings in nature they are living in, to adjust and contend. From the condition, there are numerous powers that their progressions lead to have impacts on the organization and make the association to respond and react to those changes (Voiculet. A, 2010). Some of the time the evasion from the organizations to reflect and not respond to adapt themselves with those progressions will prompt disappointment in the development and abatement development of the organization bit by bit.

Additionally, there are two primary powers that we can concentrate on all the environmental factors through them, and they are the requirement for data and the need for resources. The organization will react to any change that is occurring by the external environment, through the adjustments of every office and the general structure and plan of the association. Changes in the structure or changing the method for administrations and items they are producing are all piece of the adjustment of any association to the external condition (Duncan,1972). Airbnb, a privately-owned business that works on online commercial center that aides in wide scope of offers like hotel and essential home stays. Discussing one of the outside variables which is the "Political and administrative factor" that demonstrates to be one of the significant difficulties the organization is as of now facing.

There are numerous lawful bodies of evidence against the organization that they don't keep the state lodging laws, expressing that the organization is letting out houses that are bought only to be let out. There are sure decides in few expresses that a house being leased must have the proprietor additionally remaining in a similar loft, which when thought about Airbnb standards repudiates and appears to be illegal. The organization has recorded a claim against the territory of New York which was confining the organization's transient sublets which were viewed as unlawful and which were influencing the typical real estate professionals in the city. The state likewise accused the organization the explanation behind tremendous increment in the rental expense of New York residents and in the end it’s a decisive victory for Airbnb.

Paper For Above instruction

The external environment significantly influences organizational strategies and operations across industries, exemplified by Coca-Cola and Airbnb. Both organizations demonstrate how external forces shape their market presence, product development, and regulatory compliance, emphasizing the importance of environmental awareness for sustained growth.

For Coca-Cola, technological advancements have played a pivotal role in product innovation. According to Muscalu (2016), there exists a reciprocal influence between organizations and their external environment, where both adapt to changing conditions. The beverage giant’s recent venture into alcohol-infused drinks in Japan epitomizes leveraging technological and cultural trends to expand market share. As Gharbegeian (2018) highlights, technological influence accelerates design and product development processes. Coca-Cola’s new flavored, alcohol-infused beverages meet Japanese consumer preferences for novel, accessible alcohol options, illustrating how technology and cultural shifts can transform product portfolios. This strategic move exemplifies a proactive response to external technological influences, positioning Coca-Cola competitively in new segments.

Conversely, Airbnb operates within a complex legal and regulatory external environment that presents significant challenges. Voiculet (2010) emphasizes how organizations must respond adaptively to external pressures, particularly political and legal factors. Airbnb’s legal disputes in New York illustrate how regulatory frameworks can threaten operational viability. The company faced allegations of violating housing laws by enabling short-term rentals that undermine local housing markets. These conflicts demonstrate the external political and legal forces that compel organizations to modify operations or face penalties. Streaming from Duncan’s (1972) theory, organizations respond to external environment shifts by restructuring and adjusting policies. Airbnb’s legal battles underscore the necessity of compliance and adaptive strategies in navigating regulatory landscapes. Their victory against New York’s restrictions highlights strategic resilience amid external legal pressures but also stresses ongoing navigational challenges that can affect growth and reputation.

Furthermore, external sociocultural and economic influences impact both Coca-Cola and Airbnb differently. Coca-Cola’s innovation in alcohol-infused drinks aligns with a broader cultural acceptance of alcohol consumption and flexible drinking preferences, especially in Japan, where beverage preferences are evolving (Morris, 2019). This aligns with the sociocultural dynamics influencing market expansion. Similarly, Airbnb’s regulatory struggles are intertwined with local sociocultural attitudes towards property rights and community safety, affecting legislative responses and public perception.

Technological developments have the potential to reshape business strategies profoundly. In Coca-Cola’s case, technology accelerates product development and allows entry into innovative markets, whereas in Airbnb’s example, digital platforms foster global connectivity but also amplify legal scrutiny (Gharbegeian, 2018). Both cases exemplify the importance of understanding external technological forces to adapt effectively.

In conclusion, Coca-Cola and Airbnb exemplify the profound impact of external environmental forces—technological, legal, political, and socio-cultural—on strategic decision-making. Coca-Cola’s ability to innovate through technology underpins its market expansion into Japan’s alcohol market, demonstrating adaptability and proactive strategy formulation. Airbnb’s legal challenges exemplify the influence of political and regulatory environments, highlighting the importance of compliance and strategic resilience. Organizations must continuously monitor and respond to external influences to sustain competitive advantage and operational effectiveness in an unpredictable global landscape.

References

• Duncan, R. (1972). Characteristics of organizational environments and their strategic implications. Administrative Science Quarterly, 17(3), 313-327.
• Gharbegeian, A. (2018). Technological impacts on product development. Forbes.
• Muscalu, E. (2016). External influences on organizational functions. Journal of Defense Resources Management.
• Morris, P. (2019). Coca-Cola’s alcohol-infused beverages in Japan. MarketWatch.
• Voiculet, A. (2010). Organizational response to environmental changes. Management & Marketing.
• Additional scholarly sources relevant to external environmental influences on organizations.