External Stakeholders play an essential part in the success of Coca Cola. Without the external stakeholders, Coca Cola would not be the success it is today. These organizations and persons who are considered to be external stakeholders vary in range and responsibility. The most basic of the external stakeholders but one of the most essential are the customers. Without the customers, Coca Cola would be just a name and not a product or multi-national and international organization. Customers range from individuals to stores or other organizations. The customers hold one of the most important parts in Coca Cola’s success. The performance of the organization is measured by the sales of the Coca Cola products. Also, the interest of what is hot and trending, whether it be a new flavor or a change in the bottling of a product, the customers demand is what the company must take into consideration when presenting its product to this external stakeholder.
Another external stakeholder who is vital to Coca Cola is the suppliers. The suppliers range from the materials to the packaging company play an essential role in the workings of everyday life within and around Coca Cola. Communication in and around the supply chain through management it helps to keep a well-oiled machine going. The suppliers’ interest or claim in Coca Cola is simple. With Coca Cola as one of its clients, these suppliers stand to run and make a good profit and have continuous business. The quality of the work these suppliers have must meet Coca Cola’s standards. These suppliers insure Coca Cola that their standards are up to par and are inspected. (Dione, 2010). Competitors are another external stakeholder. Coca Cola has various competitors from Pepsi to 7up (Dione, 2010).. These competitors keep Coca Cola on their toes. The interest these external stakeholders have is making sure they are staying competitive with what Coca Cola is presenting and selling. These competitors do not want to be out sold Coca Cola. What this does for Coca Cola is it keeps them on their toes.
Companies that know they have competition are creative and innovative as they try to stay one step ahead of their competition. Media is an external stakeholder. Advertising is used to present commercial of current and new products. Coca Cola takes advantage of this by using the media to promote its brand worldwide. From television, newspapers, magazines, radio, and the internet, the world can find Coca Cola everywhere. The local community is a stakeholder. Organization such as Green Peace, Labor Unions, and other environment organizations have the opportunity to put their name and cause in front of the public with the help and support of Coca Cola. (Dione, 2010). Government Agencies are also external stakeholder.
Coca Cola is an international organization. Coca Cola have to coordinate with governments around the world to sell their products. Knowing the customs and the regulations of that country is important. The interest held by the government is that the presence of Coca Cola within its country can help its economy. (“Defining Stakeholders And Their Responsibilities”, 2003-2013). These external stakeholders all have a stake in the success of Coca Cola. From the customers to the suppliers, media, and the competitors, they all have some to gain and lose. All of these external elements are what make Coca Cola what it is today and tomorrow. External Stakeholders Authority and Responsibility to Coca Cola
Each external stakeholder has authority and responsibility to their community, competitor, and those who have an interest in it. Many organizations support their community. In return, the organization expects some sort of loyalty in return. Customers have the authority to make or break a company. Whether they purchase the product or speak out against the product. The voice of the consumer is powerful. Therefore, it is the responsibility of the consumers to speak out responsibly. (“Defining Stakeholders And Their Responsibilities”, 2003-2013). Suppliers have the authority to slow up or speed up productions.
If a supplier is out of a material needed, that supplier can halt the production and hurt sales. It is the responsibility of the supplier to keep on top of knowing what they have and how much of what they have. Communicating that information to Coca Cola is essential in their business with Coca Cola and possible other companies. (“Defining Stakeholders And Their Responsibilities”, 2003-2013). It is the authority and responsibility of the external stakeholders to play their part in creating and promoting a working relationship to benefits both the external stakeholder and Coca Cola.
Defining Stakeholders and their responsibilities. (2003-2013). Retrieved from http://www.ukessays.com/essays/business/defining-stakeholders-and-their- responsibilities-and-influence-on-organisations-business-essay.php
Dione, Ivana. (2010). Identification of Coca Cola’sOrganizational Environment. Retrieved from http://www.scribd.com/doc/26976302/Organizational-Environment-Identification-in- Coca-Cola-Bottling-Indonesia