coca-cola 1
TRANSCRIPT
Chapter ndash 1
Indian Economic Scenario
The economic scenario of India is continuing moving forward with a diverse variety of
market oriented economic reforms These include liberation of foreign investment
and exchange regimes significant reductions in tarrifs and other trade barriers
industrial de-control reform and modernization of the financial sector significant
adjustments in govt Monetary and fiscal policies and safeguarding intellectual
property rights
Economic Scenario 2010
In order to sustain economic growth during the time of the bad
recession government authorities in India have announced the incentive packages
to support the economic growth To finance the incentive packages the Indian
government has raised over $100 billion over the last four quarters in a way
to finance the incentive package The countryrsquos public debt according to the RBI
has surged to over 50 of the total GDP and the RBI has started printing new
currency notes
Indian economy has registered a growth of 74 per cent in 2009-10 with 86 per cent
year-on-year (y-o-y) growth in its fourth quarter The growth is driven by robust
performance of the manufacturing sector on the back of government and consumer
spending GDP growth rate of 74 per cent in 2009-10 has exceeded the government
forecast of 72 per cent for the full year According to government data the
manufacturing sector witnessed a growth of 163 per cent in January-March 2010
from a year earlier
Seshadripuram Institute Of Management Studies Page 1
Indiarsquos Economic Outlook Projection
2007 2008 2009 2010 GDP Growth 940 730 540 720CPI 640 930 550 490
Economic Activities
Economic activities which showed significant growth rates in 2009-10 over the
corresponding period last year were mining and quarrying (106 per cent)
manufacturing (108 per cent) electricity gas and water supply (65 per cent)
construction (65 per cent) trade hotels transport and communications (93 per
cent) financing insurance real estate and business services (97 per cent)
community social and personal services (56 per cent) The Gross National Income
is estimated to rise by 73 per cent in 2009-10 as compared to 68 per cent in 2008-
09 The per capita income is estimated to grow at 56 per cent in 2009-10
Industrial Growth
Indiarsquos industrial output grew by 176 per cent in April 2010 The manufacturing
sector that accounts for 80 per cent of the index of industrial production (IIP) grew
194 per cent in April 2010 as against 04 per cent a year-ago
Capital goods production grew by 728 per cent against a contraction of 59 per cent
a year ago Consumer durables output continued to grow at a fast pace of 37 per
cent mirroring higher purchase of goods such as televisions and refrigerators
Agriculture
Agriculture is one of the strongholds of the Indian economy and accounted for 157
per cent of the countrys gross domestic product (GDP) in 2008-09 and 1023 per
cent of the total exports Moreover it provided employment to 582 per cent of the
work force
Production of food grains during 2009-10 is estimated at 21685 million as per
second Advance Estimates
Foreign Investment
The number of registered foreign institutional investors (FIIs) was 1710 and the total
FII inflow in equity during January to May 2010 was US$ 460650 million while it was
US$ 593180 million in debtIndia received foreign direct investment (FDI) worth US$
25888 million
Seshadripuram Institute Of Management Studies Page 2
The exchange rate are also contributed to economy and decide the country position
The current exchange rate as on June 2010 4714 INR
The growth has been concentrated only in some selected areas in the service
sectors rather than vital sectors such as agriculture and industry which provide
livelihoods to millions of people in the country
Seshadripuram Institute Of Management Studies Page 3
Chapter- 2
Industry Analysis- Soft Drink Industry In India
With the development of world and human being the taste need and the attitude of
human being is also changes India is one of the common market in the world with
the population of more than one billion Soft drink is a popular common product
which is generally purchased by consumers for quenching their thirst in summer and
also to have cooling refreshment As far as the market of soft drinks is concerned it
is facing cut throat competition from the larger number of soft drinks available in the
market Different brands are available in every segment of flavours but the attitudes
of the consumers differ from each other due to several factors
Manufacturers diversify on a health and wellness platform
Manufacturers are continued to focus on health and wellness products in 2009
introducing green tea versions of powder concentrates and RTD tea There were
also a number of launches in terms of new products and flavours in fruitvegetable
juice The only necarbonates was Grappo Fizz by Parle Agro Pvt Ltd Non-cola
carbonates performed very well as these products are perceived by consumers to be
less of a health threat than cola carbonates Even in niche categories like energy
drinks sugar-free versions were introduced as manufacturers try to attract health
conscious and diabetic consumers
Seshadripuram Institute Of Management Studies Page 4
Coca-Cola India continues to lead soft drinks
Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009 followed by PepsiCo
India Holdings Pvt Ltd in off-trade value terms The launch of Nimbooz by 7-Up
(PepsiCo India) helped the company retain its leading position in the terms of off-
trade value sales Coca-Cola India and PepsiCo India continued to invest in soft
drinks in India However domestic players such as Parle Agro Parle Bisleri Ltd and
Dabur India Ltd continued to provide tough competition to the leading multinationals
Thus while the leading multinationals retained their leading positions in off-trade
value terms they continued to record slight off-trade value share reductions in 2009
while these leading domestic players grew their shares
Global Market Share Percentage
Coca-Cola 50
Pepsico 21
Cadbury schweppes 7
Others 22
Marginal slowdown in supermarketshypermarkets
The growth in supermarketshypermarkets boosted the soft drinks industry over
much of the review period However due to the economic downturn the off-trade
Seshadripuram Institute Of Management Studies Page 5
volume share of supermarketshypermarkets decreased in 2009 This in turn
affected some of the more niche and premium product types like energy drinks and
reconstituted 100 juice which enjoyed high visibility through this distribution
channels However this trend is not expected to continue as the economy recovers
since consumers will revert to their previous shopping patterns
Soft drinks is expected to record healthy sales growth in the
forecast period
Soft drinks is expected to witness a healthy double-digit total volume CAGR growth
over the forecast period As consumer awareness and understanding of the variety
of soft drinks increases and as manufacturers continue to be innovative soft drinks
is expected to perform well Products on the health and wellness platform and niche
categories can expect to see good sales growth in the forecast period
Seshadripuram Institute Of Management Studies Page 6
Chapter- 3
Company Analysis ndash Hindustan Coca-Cola
Beverages Pvt Ltd
Coca-Cola the product that has given the world its best-known taste was born in
Atlanta Georgia on May 8 1886 Coca-Cola Company is the worldrsquos leading
manufacturer marketer and distributor of non-alcoholic beverage concentrates and
syrups used to produce nearly 500 beverage brands It sells beverage concentrates
and syrups to bottling and canning operators
distributors fountain retailers and fountain
wholesalers The Companyrsquos beverage
products comprises of bottled and canned soft
drinks as well as concentrates syrups and not-
ready-to-drink powder products In addition to
this it also produces and markets sports drinks
tea and coffee The Coca-Cola Company began
building its global network in the 1920s Now
operating in more than 200 countries and
producing nearly 500 brands the Coca-Cola
Seshadripuram Institute Of Management Studies Page 7
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Economic Activities
Economic activities which showed significant growth rates in 2009-10 over the
corresponding period last year were mining and quarrying (106 per cent)
manufacturing (108 per cent) electricity gas and water supply (65 per cent)
construction (65 per cent) trade hotels transport and communications (93 per
cent) financing insurance real estate and business services (97 per cent)
community social and personal services (56 per cent) The Gross National Income
is estimated to rise by 73 per cent in 2009-10 as compared to 68 per cent in 2008-
09 The per capita income is estimated to grow at 56 per cent in 2009-10
Industrial Growth
Indiarsquos industrial output grew by 176 per cent in April 2010 The manufacturing
sector that accounts for 80 per cent of the index of industrial production (IIP) grew
194 per cent in April 2010 as against 04 per cent a year-ago
Capital goods production grew by 728 per cent against a contraction of 59 per cent
a year ago Consumer durables output continued to grow at a fast pace of 37 per
cent mirroring higher purchase of goods such as televisions and refrigerators
Agriculture
Agriculture is one of the strongholds of the Indian economy and accounted for 157
per cent of the countrys gross domestic product (GDP) in 2008-09 and 1023 per
cent of the total exports Moreover it provided employment to 582 per cent of the
work force
Production of food grains during 2009-10 is estimated at 21685 million as per
second Advance Estimates
Foreign Investment
The number of registered foreign institutional investors (FIIs) was 1710 and the total
FII inflow in equity during January to May 2010 was US$ 460650 million while it was
US$ 593180 million in debtIndia received foreign direct investment (FDI) worth US$
25888 million
Seshadripuram Institute Of Management Studies Page 2
The exchange rate are also contributed to economy and decide the country position
The current exchange rate as on June 2010 4714 INR
The growth has been concentrated only in some selected areas in the service
sectors rather than vital sectors such as agriculture and industry which provide
livelihoods to millions of people in the country
Seshadripuram Institute Of Management Studies Page 3
Chapter- 2
Industry Analysis- Soft Drink Industry In India
With the development of world and human being the taste need and the attitude of
human being is also changes India is one of the common market in the world with
the population of more than one billion Soft drink is a popular common product
which is generally purchased by consumers for quenching their thirst in summer and
also to have cooling refreshment As far as the market of soft drinks is concerned it
is facing cut throat competition from the larger number of soft drinks available in the
market Different brands are available in every segment of flavours but the attitudes
of the consumers differ from each other due to several factors
Manufacturers diversify on a health and wellness platform
Manufacturers are continued to focus on health and wellness products in 2009
introducing green tea versions of powder concentrates and RTD tea There were
also a number of launches in terms of new products and flavours in fruitvegetable
juice The only necarbonates was Grappo Fizz by Parle Agro Pvt Ltd Non-cola
carbonates performed very well as these products are perceived by consumers to be
less of a health threat than cola carbonates Even in niche categories like energy
drinks sugar-free versions were introduced as manufacturers try to attract health
conscious and diabetic consumers
Seshadripuram Institute Of Management Studies Page 4
Coca-Cola India continues to lead soft drinks
Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009 followed by PepsiCo
India Holdings Pvt Ltd in off-trade value terms The launch of Nimbooz by 7-Up
(PepsiCo India) helped the company retain its leading position in the terms of off-
trade value sales Coca-Cola India and PepsiCo India continued to invest in soft
drinks in India However domestic players such as Parle Agro Parle Bisleri Ltd and
Dabur India Ltd continued to provide tough competition to the leading multinationals
Thus while the leading multinationals retained their leading positions in off-trade
value terms they continued to record slight off-trade value share reductions in 2009
while these leading domestic players grew their shares
Global Market Share Percentage
Coca-Cola 50
Pepsico 21
Cadbury schweppes 7
Others 22
Marginal slowdown in supermarketshypermarkets
The growth in supermarketshypermarkets boosted the soft drinks industry over
much of the review period However due to the economic downturn the off-trade
Seshadripuram Institute Of Management Studies Page 5
volume share of supermarketshypermarkets decreased in 2009 This in turn
affected some of the more niche and premium product types like energy drinks and
reconstituted 100 juice which enjoyed high visibility through this distribution
channels However this trend is not expected to continue as the economy recovers
since consumers will revert to their previous shopping patterns
Soft drinks is expected to record healthy sales growth in the
forecast period
Soft drinks is expected to witness a healthy double-digit total volume CAGR growth
over the forecast period As consumer awareness and understanding of the variety
of soft drinks increases and as manufacturers continue to be innovative soft drinks
is expected to perform well Products on the health and wellness platform and niche
categories can expect to see good sales growth in the forecast period
Seshadripuram Institute Of Management Studies Page 6
Chapter- 3
Company Analysis ndash Hindustan Coca-Cola
Beverages Pvt Ltd
Coca-Cola the product that has given the world its best-known taste was born in
Atlanta Georgia on May 8 1886 Coca-Cola Company is the worldrsquos leading
manufacturer marketer and distributor of non-alcoholic beverage concentrates and
syrups used to produce nearly 500 beverage brands It sells beverage concentrates
and syrups to bottling and canning operators
distributors fountain retailers and fountain
wholesalers The Companyrsquos beverage
products comprises of bottled and canned soft
drinks as well as concentrates syrups and not-
ready-to-drink powder products In addition to
this it also produces and markets sports drinks
tea and coffee The Coca-Cola Company began
building its global network in the 1920s Now
operating in more than 200 countries and
producing nearly 500 brands the Coca-Cola
Seshadripuram Institute Of Management Studies Page 7
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
The exchange rate are also contributed to economy and decide the country position
The current exchange rate as on June 2010 4714 INR
The growth has been concentrated only in some selected areas in the service
sectors rather than vital sectors such as agriculture and industry which provide
livelihoods to millions of people in the country
Seshadripuram Institute Of Management Studies Page 3
Chapter- 2
Industry Analysis- Soft Drink Industry In India
With the development of world and human being the taste need and the attitude of
human being is also changes India is one of the common market in the world with
the population of more than one billion Soft drink is a popular common product
which is generally purchased by consumers for quenching their thirst in summer and
also to have cooling refreshment As far as the market of soft drinks is concerned it
is facing cut throat competition from the larger number of soft drinks available in the
market Different brands are available in every segment of flavours but the attitudes
of the consumers differ from each other due to several factors
Manufacturers diversify on a health and wellness platform
Manufacturers are continued to focus on health and wellness products in 2009
introducing green tea versions of powder concentrates and RTD tea There were
also a number of launches in terms of new products and flavours in fruitvegetable
juice The only necarbonates was Grappo Fizz by Parle Agro Pvt Ltd Non-cola
carbonates performed very well as these products are perceived by consumers to be
less of a health threat than cola carbonates Even in niche categories like energy
drinks sugar-free versions were introduced as manufacturers try to attract health
conscious and diabetic consumers
Seshadripuram Institute Of Management Studies Page 4
Coca-Cola India continues to lead soft drinks
Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009 followed by PepsiCo
India Holdings Pvt Ltd in off-trade value terms The launch of Nimbooz by 7-Up
(PepsiCo India) helped the company retain its leading position in the terms of off-
trade value sales Coca-Cola India and PepsiCo India continued to invest in soft
drinks in India However domestic players such as Parle Agro Parle Bisleri Ltd and
Dabur India Ltd continued to provide tough competition to the leading multinationals
Thus while the leading multinationals retained their leading positions in off-trade
value terms they continued to record slight off-trade value share reductions in 2009
while these leading domestic players grew their shares
Global Market Share Percentage
Coca-Cola 50
Pepsico 21
Cadbury schweppes 7
Others 22
Marginal slowdown in supermarketshypermarkets
The growth in supermarketshypermarkets boosted the soft drinks industry over
much of the review period However due to the economic downturn the off-trade
Seshadripuram Institute Of Management Studies Page 5
volume share of supermarketshypermarkets decreased in 2009 This in turn
affected some of the more niche and premium product types like energy drinks and
reconstituted 100 juice which enjoyed high visibility through this distribution
channels However this trend is not expected to continue as the economy recovers
since consumers will revert to their previous shopping patterns
Soft drinks is expected to record healthy sales growth in the
forecast period
Soft drinks is expected to witness a healthy double-digit total volume CAGR growth
over the forecast period As consumer awareness and understanding of the variety
of soft drinks increases and as manufacturers continue to be innovative soft drinks
is expected to perform well Products on the health and wellness platform and niche
categories can expect to see good sales growth in the forecast period
Seshadripuram Institute Of Management Studies Page 6
Chapter- 3
Company Analysis ndash Hindustan Coca-Cola
Beverages Pvt Ltd
Coca-Cola the product that has given the world its best-known taste was born in
Atlanta Georgia on May 8 1886 Coca-Cola Company is the worldrsquos leading
manufacturer marketer and distributor of non-alcoholic beverage concentrates and
syrups used to produce nearly 500 beverage brands It sells beverage concentrates
and syrups to bottling and canning operators
distributors fountain retailers and fountain
wholesalers The Companyrsquos beverage
products comprises of bottled and canned soft
drinks as well as concentrates syrups and not-
ready-to-drink powder products In addition to
this it also produces and markets sports drinks
tea and coffee The Coca-Cola Company began
building its global network in the 1920s Now
operating in more than 200 countries and
producing nearly 500 brands the Coca-Cola
Seshadripuram Institute Of Management Studies Page 7
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Chapter- 2
Industry Analysis- Soft Drink Industry In India
With the development of world and human being the taste need and the attitude of
human being is also changes India is one of the common market in the world with
the population of more than one billion Soft drink is a popular common product
which is generally purchased by consumers for quenching their thirst in summer and
also to have cooling refreshment As far as the market of soft drinks is concerned it
is facing cut throat competition from the larger number of soft drinks available in the
market Different brands are available in every segment of flavours but the attitudes
of the consumers differ from each other due to several factors
Manufacturers diversify on a health and wellness platform
Manufacturers are continued to focus on health and wellness products in 2009
introducing green tea versions of powder concentrates and RTD tea There were
also a number of launches in terms of new products and flavours in fruitvegetable
juice The only necarbonates was Grappo Fizz by Parle Agro Pvt Ltd Non-cola
carbonates performed very well as these products are perceived by consumers to be
less of a health threat than cola carbonates Even in niche categories like energy
drinks sugar-free versions were introduced as manufacturers try to attract health
conscious and diabetic consumers
Seshadripuram Institute Of Management Studies Page 4
Coca-Cola India continues to lead soft drinks
Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009 followed by PepsiCo
India Holdings Pvt Ltd in off-trade value terms The launch of Nimbooz by 7-Up
(PepsiCo India) helped the company retain its leading position in the terms of off-
trade value sales Coca-Cola India and PepsiCo India continued to invest in soft
drinks in India However domestic players such as Parle Agro Parle Bisleri Ltd and
Dabur India Ltd continued to provide tough competition to the leading multinationals
Thus while the leading multinationals retained their leading positions in off-trade
value terms they continued to record slight off-trade value share reductions in 2009
while these leading domestic players grew their shares
Global Market Share Percentage
Coca-Cola 50
Pepsico 21
Cadbury schweppes 7
Others 22
Marginal slowdown in supermarketshypermarkets
The growth in supermarketshypermarkets boosted the soft drinks industry over
much of the review period However due to the economic downturn the off-trade
Seshadripuram Institute Of Management Studies Page 5
volume share of supermarketshypermarkets decreased in 2009 This in turn
affected some of the more niche and premium product types like energy drinks and
reconstituted 100 juice which enjoyed high visibility through this distribution
channels However this trend is not expected to continue as the economy recovers
since consumers will revert to their previous shopping patterns
Soft drinks is expected to record healthy sales growth in the
forecast period
Soft drinks is expected to witness a healthy double-digit total volume CAGR growth
over the forecast period As consumer awareness and understanding of the variety
of soft drinks increases and as manufacturers continue to be innovative soft drinks
is expected to perform well Products on the health and wellness platform and niche
categories can expect to see good sales growth in the forecast period
Seshadripuram Institute Of Management Studies Page 6
Chapter- 3
Company Analysis ndash Hindustan Coca-Cola
Beverages Pvt Ltd
Coca-Cola the product that has given the world its best-known taste was born in
Atlanta Georgia on May 8 1886 Coca-Cola Company is the worldrsquos leading
manufacturer marketer and distributor of non-alcoholic beverage concentrates and
syrups used to produce nearly 500 beverage brands It sells beverage concentrates
and syrups to bottling and canning operators
distributors fountain retailers and fountain
wholesalers The Companyrsquos beverage
products comprises of bottled and canned soft
drinks as well as concentrates syrups and not-
ready-to-drink powder products In addition to
this it also produces and markets sports drinks
tea and coffee The Coca-Cola Company began
building its global network in the 1920s Now
operating in more than 200 countries and
producing nearly 500 brands the Coca-Cola
Seshadripuram Institute Of Management Studies Page 7
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Coca-Cola India continues to lead soft drinks
Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009 followed by PepsiCo
India Holdings Pvt Ltd in off-trade value terms The launch of Nimbooz by 7-Up
(PepsiCo India) helped the company retain its leading position in the terms of off-
trade value sales Coca-Cola India and PepsiCo India continued to invest in soft
drinks in India However domestic players such as Parle Agro Parle Bisleri Ltd and
Dabur India Ltd continued to provide tough competition to the leading multinationals
Thus while the leading multinationals retained their leading positions in off-trade
value terms they continued to record slight off-trade value share reductions in 2009
while these leading domestic players grew their shares
Global Market Share Percentage
Coca-Cola 50
Pepsico 21
Cadbury schweppes 7
Others 22
Marginal slowdown in supermarketshypermarkets
The growth in supermarketshypermarkets boosted the soft drinks industry over
much of the review period However due to the economic downturn the off-trade
Seshadripuram Institute Of Management Studies Page 5
volume share of supermarketshypermarkets decreased in 2009 This in turn
affected some of the more niche and premium product types like energy drinks and
reconstituted 100 juice which enjoyed high visibility through this distribution
channels However this trend is not expected to continue as the economy recovers
since consumers will revert to their previous shopping patterns
Soft drinks is expected to record healthy sales growth in the
forecast period
Soft drinks is expected to witness a healthy double-digit total volume CAGR growth
over the forecast period As consumer awareness and understanding of the variety
of soft drinks increases and as manufacturers continue to be innovative soft drinks
is expected to perform well Products on the health and wellness platform and niche
categories can expect to see good sales growth in the forecast period
Seshadripuram Institute Of Management Studies Page 6
Chapter- 3
Company Analysis ndash Hindustan Coca-Cola
Beverages Pvt Ltd
Coca-Cola the product that has given the world its best-known taste was born in
Atlanta Georgia on May 8 1886 Coca-Cola Company is the worldrsquos leading
manufacturer marketer and distributor of non-alcoholic beverage concentrates and
syrups used to produce nearly 500 beverage brands It sells beverage concentrates
and syrups to bottling and canning operators
distributors fountain retailers and fountain
wholesalers The Companyrsquos beverage
products comprises of bottled and canned soft
drinks as well as concentrates syrups and not-
ready-to-drink powder products In addition to
this it also produces and markets sports drinks
tea and coffee The Coca-Cola Company began
building its global network in the 1920s Now
operating in more than 200 countries and
producing nearly 500 brands the Coca-Cola
Seshadripuram Institute Of Management Studies Page 7
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
volume share of supermarketshypermarkets decreased in 2009 This in turn
affected some of the more niche and premium product types like energy drinks and
reconstituted 100 juice which enjoyed high visibility through this distribution
channels However this trend is not expected to continue as the economy recovers
since consumers will revert to their previous shopping patterns
Soft drinks is expected to record healthy sales growth in the
forecast period
Soft drinks is expected to witness a healthy double-digit total volume CAGR growth
over the forecast period As consumer awareness and understanding of the variety
of soft drinks increases and as manufacturers continue to be innovative soft drinks
is expected to perform well Products on the health and wellness platform and niche
categories can expect to see good sales growth in the forecast period
Seshadripuram Institute Of Management Studies Page 6
Chapter- 3
Company Analysis ndash Hindustan Coca-Cola
Beverages Pvt Ltd
Coca-Cola the product that has given the world its best-known taste was born in
Atlanta Georgia on May 8 1886 Coca-Cola Company is the worldrsquos leading
manufacturer marketer and distributor of non-alcoholic beverage concentrates and
syrups used to produce nearly 500 beverage brands It sells beverage concentrates
and syrups to bottling and canning operators
distributors fountain retailers and fountain
wholesalers The Companyrsquos beverage
products comprises of bottled and canned soft
drinks as well as concentrates syrups and not-
ready-to-drink powder products In addition to
this it also produces and markets sports drinks
tea and coffee The Coca-Cola Company began
building its global network in the 1920s Now
operating in more than 200 countries and
producing nearly 500 brands the Coca-Cola
Seshadripuram Institute Of Management Studies Page 7
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Chapter- 3
Company Analysis ndash Hindustan Coca-Cola
Beverages Pvt Ltd
Coca-Cola the product that has given the world its best-known taste was born in
Atlanta Georgia on May 8 1886 Coca-Cola Company is the worldrsquos leading
manufacturer marketer and distributor of non-alcoholic beverage concentrates and
syrups used to produce nearly 500 beverage brands It sells beverage concentrates
and syrups to bottling and canning operators
distributors fountain retailers and fountain
wholesalers The Companyrsquos beverage
products comprises of bottled and canned soft
drinks as well as concentrates syrups and not-
ready-to-drink powder products In addition to
this it also produces and markets sports drinks
tea and coffee The Coca-Cola Company began
building its global network in the 1920s Now
operating in more than 200 countries and
producing nearly 500 brands the Coca-Cola
Seshadripuram Institute Of Management Studies Page 7
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
system has successfully applied a simple formula on a global scale ldquoProvide a
moment of refreshment for a small amount of money- a billion times a dayrdquo
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world More than anything
that system is dedicated to people working long and hard to sell the products
manufactured by the Company This unique worldwide system has made The Coca-
Cola Company the worldrsquos premier soft-drink enterprise From Boston to Beijing
from Montreal to Moscow Coca-Cola more than any other consumer product has
brought pleasure to thirsty consumers around the globe For more than 115 years
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every dayThe Company aims at increasing shareowner value over time It
accomplishes this by working with its business partners to deliver satisfaction and
value to consumers through a worldwide system of superior brands and services
thus increasing brand equity on a global basis They aim at managing their business
well with people who are strongly committed to the Company values and culture and
providing an appropriately controlled environment to meet business goals and
objectives The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companyrsquos assets and
resources whilst limiting business risks
The bizsystem of coca-cola in India directly employs approximately 6000 people amp
indirectly creates employment for many more related industries throw our wash
procurement supply and distribution system
The vast Indian operations comprise 25 companies owned bottling operations amp 24
franchises ndashowned bottling operations The apart a network of contract packers also
mfg a range of the product for company On the distribution front 10 tone trucks
open-bay three wheelers that can navigate the narrow alleyways of Indian cities
ensure that our product available in each corner of the country
The coca cola is responsible for the manufacturing distribution amp sales of product
across the country
Seshadripuram Institute Of Management Studies Page 8
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke Coke is one of the
worlds most recognizable and widely sold commercial brands its major rival is
Pepsi Originally intended as a patent medicine when it was invented in the 19th
century Coca-cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding such as Sprite Fanta and others Coca cola was invented In
Atlanta Georgia by John S Pemberton originally as a coca wine caned
Pembertons French Wine coca in 1885 He was inspired by the formidable
success of European Angelo Marianis coca wine Mariana
History Of Soft Drink In India
The first brand of soft drink Gold spot established 53 years ago Before all
empowering Coca-Cola entered the country to dominate the soft drink market the
history of soft drink in India is quite drinking old Down the ages people consume
soft drink to give them a refreshing feeling Gold spot is considered as the first brand
of soft drink in India it was introduced in 1965
Coca- cola at the same time entered the Indian mark t and dominated the whole
market It faced no though competition from the domestic market Due to certain
circumstances the Coca cola Company discontinued its operations in India In 1993
Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE
COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was
trying its best to regain prestige which it had before At present only Coca Cola and
Pepsi Food are giving tough competition to each other
Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India
Seshadripuram Institute Of Management Studies Page 9
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
The marketing people did not even require advertising Coca Cola This extra
ordinary success of soft drink could be attributed to following factors
Later in 1970 it introduced Limca a lemony soft drink Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The
first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was
Coca-cola and after that all the remaining products came in the Bihar market At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is
140 including all the departments
The soft drink market in India is quite wide The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad
Kumari which was named as Steel city Beverages Pvt Ltd The company controlled
the lions share in the soft drink market for nearly 10 years Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra
Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta
Party Government it created trouble for Coca Cola which led to withdraw its
operation from India
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc Dowell pure drinks and local drinks entered into the market They
would not compete with Parle
Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in
the India market It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamanis collaboration with Birla Group
Seshadripuram Institute Of Management Studies Page 10
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi
Mission Visions amp Values
The world is changing all around us To continue to thrive as a business over the
next ten years and beyond we must look ahead understand the trends and forces
that will shape our business in the future and move swiftly to prepare for whats to
come We must get ready for tomorrow today Thats what our 2020 Vision is all
about It creates a long-term destination for our business and provides us with a
Roadmap for winning together with our bottler partners
Mission
Our Roadmap starts with our mission which is enduring It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable quality growth
People Be a great place to work where people are inspired to be the best
they can be
Portfolio Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy peoples desires and needs
Seshadripuram Institute Of Management Studies Page 11
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Partners Nurture a winning network of customers and suppliers together we
create mutual enduring value
Planet Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity Be a highly effective lean and fast-moving organization
Values
Our values serve as a compass for our actions and describe how we behave in the
world
Leadership The courage to shape a better future
Collaboration Leverage collective genius
Integrity Be real
Accountability If it is to be its up to me
Passion Committed in heart and mind
Diversity As inclusive as our brands
Quality What we do we do well
Focus on the Market
Focus on needs of our consumers customers and franchise partners
Get out into the market and listen observe and learn
Possess a world view
Focus on execution in the marketplace every day
Seshadripuram Institute Of Management Studies Page 12
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Shareholding Pattern
Sr No Holder Shares Out
1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73
3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62
4 VANGUARD TOTAL STOCK MARKET INDEX
FUND
2966951 59
5 VANGUARD 500 INDEX FUND 2949370 59
6 SPDR SampP 500 ETF Trust 2330486 47
7 VANGUARD INSTITUTIONAL INDEX FUND-
INSTITUTIONAL INDEX FD
2223290 44
8 COLLEGE RETIREMENT EQUITIES FUND-
STOCK ACCOUNT
2166555 43
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL
GLOBAL DISCOVERY SECURI
2129800 43
10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL
DISCOVERY FD
2129800 43
Seshadripuram Institute Of Management Studies Page 13
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Organizational Chart of
Hindustan Coca Cola Beverages Pvt Ltd
Seshadripuram Institute Of Management Studies Page 14
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Organisation Structure
Seshadripuram Institute Of Management Studies Page 15
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Seshadripuram Institute Of Management Studies Page 16
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
No Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140
Classification Of Employess
Age
Particulars Numbers Percentage
Below 20 Years 5 357
20-30 Years 35 25
30-40 Years 70 50
Above 40 Years 30 2143
Total 140 100
Service Renderd
Service Rendered Percentage
Less Than 5 Years 17
Seshadripuram Institute Of Management Studies Page 17
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
6 - 15 Years 42
16 - 25 Years 40
26 Years and Above 35
Total 100
Sex
Gender Percentage
Male 93
Female 7
Total 100
Marital Status
Marital Status Number Percentage
Married 85 6072
Single 55 3928
Total 140 100
Size Of Land amp Building
Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise
bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of
175 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the companyThe plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same
Seshadripuram Institute Of Management Studies Page 18
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA
Branches Of Coca-Cola in India
Seshadripuram Institute Of Management Studies Page 19
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages fruit juices and bottled mineral water The Company is always looking to
innovate and come up with either complete new products or new ways to bottle or
pack the existing drinks The following products are marketed by HCCBPL
Seshadripuram Institute Of Management Studies Page 20
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Seshadripuram Institute Of Management Studies Page 21
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Market Share
Companyrsquos Major
Local Sales and Exports amp imports which involve exports to different countries like
Bangladesh United States of America United Kingdom Singapore and Malaysia
Customer Profile
The customer of CoCa-Cola are-
Retailers
Distributers
Final Consuemer
Suppliers of Raw Materials
Tate amp Lyle
South Eastern Container
Seshadripuram Institute Of Management Studies Page 22
Market Share Percentage
Coca-Cola Classic 203
Pepsi 139
Diet Coke 86
Mountain Dew 71
Sprite 65
Dr Pepper 62
Diet Pepsi 49
Seven-Up 20
Minute Maid Orange 15
Others 295
Total 100
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Cutrale Citrus Juice USA
Aloca
Visy Industries
Xerox
Bankers and Financial Institution
Sl No Holder
1 BlackRock Institutional Trust Company
NA
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP INC (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN
LLCADV
9 FRANKLIN RESOURCES INC
10 JANUS CAPITAL MANAGEMENT LLC
Related Ancillary Industry
Pepsico
Dabur
Nestle
RC Cola
Seshadripuram Institute Of Management Studies Page 23
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
SWOT ANALYSIS OF THE COMPANY
Coca-Cola Company is one of the leading MNC in the world It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way By going through its SWOT analysis we can know much
more about the company
Strengths
The company has got various strengths which leads the company be a market
leader Some of the strengths listed below
1 Beverage experience
2 Personal relations
3 Knowledge regarding competitor
4 Hardworking stuff and distributer
5 People reliance on quality of product and brand
6 Coca-Cola has been a complex part of world culture for a very long time
7 The productrsquos image is loaded with over-romanticizing and this is an image
many people have taken deeply to heart The Coca-Cola image is displayed
on T-shirts hats and collectible memorabilia
8 This extremely recognizable branding is one of Coca-Colarsquos greatest
strengths ldquoEnjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo
Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows
them to conduct business on a global scale while at the same time maintain a local
approach The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company
Because Coke does not have outright ownership of its bottling network its main
source of revenue is the sale of concentrate to its bottlers
Weaknesses
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their businessrsquos activities Coke is no
exception
Seshadripuram Institute Of Management Studies Page 24
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Local Weaknesses
a) Finance problem
b) Less empty on floor
c) Vehicles are less
d) Large number of PCI empty stock
e) More seasonal demand
f) Poor service
g) High prices
Coca-Cola on the other side has effects on the teeth which is an issue for health
care It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems Being addicted to Coca-Cola also is a health problem because
drinking of Coca-Cola daily has an effect on body after few years
Opportunities
1 Brand recognition is the significant factor affecting Cokersquos competitive
position Coca-Colarsquos brand name is known well throughout 94 of the world
today
2 Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
3 Opening new outlets in the area where the coca colarsquos market share is less
4 Covering greater institutional areas as younger generation gets much
fascination out of such beverages
Local Opportunities
a) Customers are anode from competitor especially in rural area
b) New projects have been started
c) Niche markets that large companies do not wish to serve
Threats
Seshadripuram Institute Of Management Studies Page 25
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Currently the threat of new viable competitors in the carbonated soft drink industry is
not very substantial
1 The threat of substitutes however is a very real threat The soft drink industry
is very strong but consumers are not necessarily married to it Possible
substitutes that continuously put pressure on both Pepsi and Coke include
tea coffee juices milk and hot chocolate
2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
3 Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
4 Furthermore consumers can easily switch to other beverages with little cost
or consequence
5 Competitorrsquos distributor is financially strong
6 Competitor is thinking seriously about textile sector market
7 Economic conditions become unfavourable
Seshadripuram Institute Of Management Studies Page 26
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Chapter - 41
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL
The manufacturing unit of HCCBPL situated at Patna is one of the bottling
operations owned by the company The Plant has one PET line which has the
capacity of yielding 209 bottles per minute two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute It caters to the whole Bihar through a network of more than 50
distributors
Fig 1 Chain followed from manufacture to distributon
Seshadripuram Institute Of Management Studies Page 27
Manufacturing Plant Patna
Sales and Distribution Operations
Distributors
Outlets
Outlets
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN
Fanta
200ml amp 300 ml ---
600 ml 15 L125Land 2L
330 ml Various sizes
Diet coke
--- --- ----330 ml
---
Mazza
200ml amp 250 ml
125ml amp 200ml
600 ml amp 12 L ----
----
Limca
200 ml amp 300 ml ----
600ml 15L 2L 225 L
330 ml Various sizes
Coca-Cola
200 ml amp300 ml ----
600ml 15L2L
330 ml Various sizes
Thumps Up
200 ml amp300 ml ----
600ml 15L2 L
330 ml Various Sizes
Sprite
200 ml amp300 ml
----
600ml 15 L2 L
330 ml Various Sizes
---- ----500 ml amp1 L ---- ----
MinuteMaid Pulpyorange
---- ----500 ml
---- ----
Seshadripuram Institute Of Management Studies Page 28
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Raw Materials
Water is a main ingredient in substantially all Coca-Cola products In addition to
water the principal raw materials used by our business are nutritive and non-nutritive
sweeteners The principal nutritive sweetener is sucrose another form of sugar
which is available from numerous sources and is historically subject to fluctuations in
its market price The principal non-nutritive sweeteners we use in our business are
aspartame acesulfame potassium saccharin cyclamate and sucralose
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including but not
limited to PET resin preforms and bottles glass and aluminum bottles aluminum
and steel cans plastic closures aseptic fiber packaging labels cartons cases post-
mix packaging and carbon dioxide
Inventory Management 2 methods are followed based on the
requirement
At Factory
FIFO Method All the materials that come in first are sent out first there is no
staggering of raw materials
JIT Method This method is used specifically for Suzuki Motors all the materials are
supplied when the company orders for the products and this method is specially
used for 1 client as per their specifications and requirements
At Stores
FIFO and LIFO Methods Based on the current demand one of the methods are
followed by the stores management there is no stock maintenance at any of the
stores
Seshadripuram Institute Of Management Studies Page 29
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Total Quality Management Tools Used
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes In
quantitative terms 80 of the problems come from 20 of the causes (machines
raw materials operators etc) 80 of the wealth is owned by 20 of the people etc
Therefore effort aimed at the right 20 can solve 80 of the problems Double (back
to back) Pareto charts can be used to compare before and after situations General
use to decide where to apply initial effort for maximum effect
Scatter Plots
A scatter plot is effectively a line graph with no line - ie the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict Use to define the area of relationship between two variables
Seshadripuram Institute Of Management Studies Page 30
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Warning There may appear to be a relationship on the plot when in reality there is
none or both variables actually relate independently to a third variable
Control Charts
Control charts are a method of Statistical Process Control SPC (Control system for
production processes) They enable the control of distribution of variation rather than
attempting to control each individual variation Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limitsThis prevents
over-correctioncompensation for random variation which would lead to many
rejects
Flow Charts
Seshadripuram Institute Of Management Studies Page 31
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Pictures symbols or text coupled with lines arrows on lines show direction of flow
Enables modelling of processes problemsopportunities and decision points etc
Develops a common understanding of a process by those involved No particular
standardisation of symbology so communication to a different audience may require
considerable time and explanation
Cause and Effect Fishbone Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion The
diagrams purpose is to relate causes and effects Effect = problem to be resolved
opportunity to be grasped result to be achieved Excellent for capturing team
brainstorming output and for filling in from the wide picture Helps organise and
relate factors providing a sequential view Deals with time direction but not quantity
Can become very complex Can be difficult to identify or demonstrate
interrelationships
Seshadripuram Institute Of Management Studies Page 32
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data It enables us to see
patterns that are difficult to see in a simple table of numbers Can be analysed to
draw conclusions about the data set
Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself It needs to be designed for the specific data it is to
gather Used for the collection of quantitative or qualitative repetitive data Adaptable
to different data gathering situations Minimal interpretation of results required Easy
and quick to use No control for various forms of bias - exclusion interaction
perception operational non-response estimation
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation Checklists are used under operational conditions to ensure that all
important steps or actions have been taken Their primary purpose is for guiding
operations not for collecting data Generally used to check that all aspects of a
situation have been taken into account before action or decision making Simple
effective
Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees assets and visitors We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individualrsquos contribution to safety We strive for continuous improvement in our
Seshadripuram Institute Of Management Studies Page 33
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
safety standards and to the consistently meet or exceed them We therefore will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards With this belief we
vow to
Set our safety standard at a level that ensures compliance with governmental and
company requirements
Protect our employees and ensure public safety extending throughout our
organization
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment products and
packages taking in to account the associate costs or profit for each safety benefits
Ensure each and every one to use in responsible and accountable for our actions
Establish mechanisms to communicate effectively with employeersquos consumers and
government on our safety performance
Manufacturing Process
1 Water Treatment
HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand carbon filters to remove off odour off colour off taste and thus it is
strictly bought in line with the WHO requirements They are also using state of art ndash
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards
2Syrup Preparation
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards which serves as the strict criteria before acceptance of a
lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature It is then passed
through a filter press which removes the carbon particles and other impurities before
Seshadripuram Institute Of Management Studies Page 34
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
it declared fit for concentrate mixing All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room
3 Container Washing
Container has been identified as one of the major critical control point in the entire
manufacturing process amp thatrsquos the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles excessively dirty
bottles bottles carrying foreign matter foreign bottles And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling However as an additional safety there is again a post wash
inspection station comprising of 4 sub-stations which ensures removal of the chip
necked bottles and suspected bottles from the lot Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling
4 Mixing Proportioning
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-
MOJONNIER
5 Filling amp Crowning
Seshadripuram Institute Of Management Studies Page 35
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product
6 Final Inspection
After date coding there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine
7 Managing The Waste Water
Production lines maintain the waste water from the bottle washers Syrup and Filler
rooms Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas Part of this water is being used for
gardening purpose within the plant premises
8Market amp Customer
Once the finished product is ready it is transported to the distribution centers and
then to retail outlets by way of route trucks The consumer buys the soft drink from
the retailer outlets The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products
9 Suppliers and Other Business Partner
Other than water and concentrate bottling operation require sugar CO2 bottles
crates and other miscellaneous materials The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion Environmental considerations are amongst the critical of these criterions
Seshadripuram Institute Of Management Studies Page 36
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Challenges faced by production managers due to recession in the
economy
The ProductionOperations Manager is the worst hit during the recessions as he
is the person involved with production and people management
1 Low Demand of products
2 People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees
3 Low Realization due to low production
4 Employee Efficiency is at the decline due to lot of ideal time
5 Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest
6 ROI will not be achievable as the Returns are Less than the Investment
7 Maintain the Employee relation strong to retain talent
Seshadripuram Institute Of Management Studies Page 37
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Fig 2 Manufacturing process
Vendor Management
Vendors are selected from head office the local authorities has to pass the audit
check after that a vendor is become permanent supplier
Vendor management can be a painless process by following a few simple guidelines
1048707 Share your top priorities with vendors to ensure they are aware of them
1048707 Obtain solutions with features that fit your organization now and allow room for
growth in the future
1048707 During the evaluation process narrow down the choices to your top two vendors
Engage in negotiations with the top two (rather than just one vendor) to
encourage friendly competition
1048707 If you are looking to build long term relationships with your vendors avoid overly
aggressive maneuvers for short term gain
SWOT Analysis
Seshadripuram Institute Of Management Studies Page 38
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Strength
Strong Brands The products produced and marketed by the Company have
a strong brand image People all around the world recognize the brands
marketed by the Company Strong brand names like Sprite Fanta Limca
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole
Low Cost Of Operation The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation
Weaknesses
Although domestic businesses as well as many international markets are
thriving Coca-Cola has recently reported some ldquodeclines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
powerrdquo
Being addicted to Coca-Cola also is a health problem because drinking of
Coca-Cola daily has an effect on body after few years
Opportunities
Coca-Colarsquos bottling system also allows the company to take advantage of
infinite growth opportunities around the world This strategy gives Coke the
opportunity to service a large geographic diverse area
Minor signage work is done in area by PCI
PCI is getting interest in textile sector
New technologies that increase efficiencies
Threats
Water is the main ingredient in substantially all of our products It is also a
limited resource in many parts of the world facing unprecedented challenges
from overexploitation increasing pollution poor management and climate
change As demand for water continues to increase around the world and as
water becomes scarcer and the quality of available water deteriorates our
system may incur increasing production costs or face capacity constraints
Seshadripuram Institute Of Management Studies Page 39
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
which could adversely affect our profitability or net operating revenues in the
long run
Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage
market the changing health-consciousness of the market could have a
serious affect
Chapter- 42
Functional Analysis- Marketing Department
Seshadripuram Institute Of Management Studies Page 40
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Marketing is the basic reason for the existence of a business organisation In the age
of fast changes marketing is the springboard of all activities Basically Marketing
Department is necessary for every organisation In multinational companies like coca
cola have their own separate department of marketing
Sales Department
C
hart-4 Sales Department of HCCBPL
The sales department of the Coca Cola Company is to coordinate the
selling program They also have to make the distribution methodsetc
Also decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way
Marketing research Department
This department has their budget given by the finance department and
their responsibility is to investigate new products They work closely
with marketing by looking at marketing research findings They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products If necessary then they also
Seshadripuram Institute Of Management Studies Page 41
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
have to improve the quality of the products The Coca-Cola Company
research department has done a lot of research
Promotion Department
In todayrsquos competitive environment having the right product at the right place in the
right place at the right time may still not be enough to be successful Promotion is
designed to inform the marketplace about who you are how good your product is
and where they can buy it Promotion is also used to persuade the customers to try a
new product or buy more of an old product
Promotions refers to mainstream media Advertising through common media such as
television radio transport and billboards and in newspapers and magazines
Because most of the target is most likely to be exposed to media such as television
radio and magazines Coca Cola has used this as the main form of promotion for
extensive range of products
Promotion through restaurants and cinema hall hordings
Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca Sprite Maaza etc these
restaurants are authorized to keep and use the merchandising assets of Pepsi
Advertising
It is a impersonal salesmanship for mass selling a means of mass communication
The company uses adver4tising to trigger desire as often and in as many ways as
possible Through out the years slogans or coca-cola have been memorable
Brand Ambessdors
Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar
Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav
Ganguly Virendar Sehwag
Sales Promotion
Seshadripuram Institute Of Management Studies Page 42
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales
promotion gain additionl market share or additional revenue expand the target
market
Distribution Department
It appoints distributors and establishes a distribution network processes approved
sale orders and prepares invoices arranges logistics and ship products co-ordinates
with distributors for collections and monitors distribution stocks and their set-up
MARKETING STRATEGIES
1) Coca-Cola sales club
This club is for the retailers In this approach retailers are given some points
once in a month depending upon how they are using the display material provided by
the company to them This material consists of Fridges DPS Boards Glow Sign
Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc
Depending upon these points retailers are rewarded by certain gifts from the
company
2) Schemes
Hindustan Beverages India comes out with the schemes on their different products
many times in a year Most of these schemes are made to benefit the retailers
Some of the schemes are as follows
1 bottle of 2lt free with one 2lt bottle pack
1 bottle of 1lt free with one 1lt bottle pack
2 bottles of 500ml free with one 500ml bottle pack
6 bottles of Kinley free with one pack of Kinley
3) Advertising
Through the consumers survey it has been proved that the TV commercials and
sinages affect the consumer buying behaviour by approximately 70 May be only
Cococola is investing huge finances in the TV commercials and other sinages big
names of Indian film industries and sports herorsquos are being proposed to become the
brand promoters and brand ambassadors
Seshadripuram Institute Of Management Studies Page 43
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Posters
DPS boards
Glow Sign boards
Date calendars
Cinema hall tickets
Radio commer
4) Merchandising assets
Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items Some of such items are as follows
1 Fridges
2 Coca-ColaMazza stands
3 Display bottles
4 Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company Sometime they do it unknowingly sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself These
deficiencies are as follows -
1 Irregularity of the salesman to the retailers shop
2 Shortage of the different products and different packages
3 Sometimes because of the rude behavior of the salesman
6) Strengthen distribution network and promotions through word of mouth
through sales man
Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealerrsquos network like Pepsi Coca-cola believes in making and
maintaining relations with retailers directly Therefore salesman is the very important
part of Coca-cola co marketing strategy
Seshadripuram Institute Of Management Studies Page 44
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
SWOT Analysis Strengths
Knowledge regarding competitor
Hardworking stuff and distributer
More market share in textile sector
People reliance on quality of product and brand
Coca-Cola has been a complex part of world culture for a very long time
The Company has a strong and reliable distribution network The network is
formed on the basis of the time of consumption and the amount of sales
yielded by a particular customer in one transaction
Weaknesses
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola In 2003 the Centre for Science and
Environment (CSE) a non-governmental organization in New Delhi said
aerated waters produced by soft drinks manufacturers in India including
multinational giants PepsiCo and Coca-Cola contained toxins including
lindane DDT malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system
The Companyrsquos operations are carried out on a small scale and due to
Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to
invest in technological advancements and achieve economies of scale
Opportunities
The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer Coca-Cola India claims a 58
per cent share of the soft drinks market this includes a 42 per cent share of
the cola market Other products account for 16 per cent market share chiefly
led by Limca The company appointed 50000 new outlets in the first two
months of this year as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3500 new villages
Seshadripuram Institute Of Management Studies Page 45
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
The Company can come up with new products which are not manufactured
abroad like Maaza etc and export them to foreign nations It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market
Threats
The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive We compete with major international beverage companies
that like our Company operate in multiple geographic areas as well as
numerous firms that are primarily local in operation In many countries in
which we do business including the United States PepsiCo Inc is a primary
competitor
Consumer buying power also represents a key threat in the industry The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition
Seshadripuram Institute Of Management Studies Page 46
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Chapter- 43
FUNCTIONAL ANALYSIS- HR DEPARTMENT
Human Resource Management is an essential part for any organization Moreover
development of this department is the first step the ground on which the future of the
company depends It is essential for every single business unit and especially for
such international company as Coca Cola It is people not technology who create
the company Human Resource Management at Coca Cola Company has many
advantages It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company cultural and political
differences need to be taken into account
Basically the HRM practices are necessary for every organization In multinational
companies like coca cola have their own separate department of HRM
HR Srategy Of The Company
Every organization has its own policies and strategies by which they control the
functions of their departments Similarly we also have own policies and strategies by
which we control all the functions of our departments coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work
recruitment and selection training and development performance appraisals
compensation employee relationships staff welfare and medical policies and some
other things like that These all practices are conducted by own policies and
strategies
HR department not make decisions related of its own department they also conduct
in companyrsquos decision
Recruitment amp Selection Process
Recruitment process is well established first of all they give ads in news papers
company website institutions etcOnce they receive an application form from
candidates with required documents and C V
Internal recruitment
External recruitment
Seshadripuram Institute Of Management Studies Page 47
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
The selection process will vary depending on the position yoursquore applying for as one
process canrsquot fit all the different roles we have here at CCE However in most cases
a combination of any of the following tools will be used
Interview
Group exercises
Presentations
Psychometric tests
Role playsSituational Exercises
Interview
The interview is designed to reveal more about you and your experiences Wersquoll ask
for examples of how you behaved in different situations maybe at school university
a club at home or in previous jobs This is not designed to catch you out and our
interviewers will never try and trick you into an answer
Group exercises
Wersquore very much a team at CCE so these will show us how effectively you work with
people Theyrsquore a good opportunity for us to see how you communicate influence
and involve other people in the workplace
Presentations
Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic You may be given a topic in advance or on the day but
donrsquot worry ndash yoursquoll have plenty of time to prepare
Psychometric tests
Psychometric tests are timed exercises that examine candidate abilities and
potential On occasions we may also use a personality assessment tool that is
designed to find out more specific things about candidate
Seshadripuram Institute Of Management Studies Page 48
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Role PlaysSituational Exercises
Designed to assess how you react in certain situations these help to highlight
particular skills and how well yoursquore suited for a position You may be given facts and
figures to review or a report to complete we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace
Training amp Development Program
Training process is essential part of every employee with out training employee can
not come to now the procedure of work rules and regulations of firm some times
when new technology is introduced it is also responsibility of a firm to train its
employees
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm
Promotion Policy
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion
The criteria of evaluation are as follows
bull On Bases of performance appraisal scores
bull Attendance (excluding Privilege Leave)
bull Competencies
bull Education
bull Honesty and sincerity
Transfer Policy
While transfering employee HR Manager must have set objectives
- Appointment letter must have clause for transfer
- Transfer should be followed by the following
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods
- Reimbursement of the Transportation Cost
- Traveling Fare with expenses for family members from present place to his place of
Seshadripuram Institute Of Management Studies Page 49
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
transfer
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses
Compensation and Benefits
HR department manager says that employees are our assets there for we are
careful about their health and benefits We give following compensation and benefits
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity Fund
Social security
We get many advantages from our employees because they are happy from
company Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees
and company
Empowerment
Empowerment includes the following or similar capabilities-
The ability to make decisions about personalcollective circumstances
The ability to access information and resources for decision-making
Ability to consider a range of options from which to choose (not just yesno
eitheror)
Ability to exercise assertiveness in collective decision making
Having positive-thinking about the ability to make change
Ability to learn and access skills for improving personalcollective
circumstance
Seshadripuram Institute Of Management Studies Page 50
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Ability to inform othersrsquo perceptions though exchange education and
engagement
Involving in the growth process and changes that is never ending and self-
initiated
Increasing ones positive self-image and overcoming stigma
Increasing ones ability in discreet thinking to sort out right and wrong
Reward ndash Punishment System
The Rewards amp Punishment Includes-
Rewards-
Monetary Incentives Promotion Bonus
Punishment-
Demotion Transfer
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees
Steps in appraising performance
The performance appraisal process process contains three steps
Define the job
Appraise the performance
Provide feedback
Retrenchment
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organizations operations Retrenchment is also a reduction of expenditures in
Seshadripuram Institute Of Management Studies Page 51
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
order to become financially stable Retrenchment is nothing but Downsizing the
Excess Manpower of the Company
Retrenchment takes place due to the following reasons
1 Reduction in the Volume of Business
2 Company running on Excess Manpower
Results of Retrenchment
1 cost cutting
2 Downsizing the Strength so that equal responsibility is shared betn the current
employees
SWOT Analysis
Strengths
Providing competitive advantage to all employees
Evaluating permormance of the employee time to time
Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company
Weakness
No free snacks and tea provided to workers
There is no mentoring program are provided to workers so that they canrsquot
improve their efficiency
There is gap between higher level management and lower level management
Opportunities
Create a system of mentoring program that includes one-to-one mentoring
group mentoring mentoring self-study tools These programs promote trusting
relationships for networking coaching career counseling and life lessons
The benefits of mentoring also strengthen our company Mentoring increases
Seshadripuram Institute Of Management Studies Page 52
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning
We have a strong commitment to hiring interns through The Coca-Cola
Company Internship Programs The company offers a number of internship
programs for undergraduate and graduate students
Threats
Diversity of employees if competitive company offers more salries bonus
etc
Promotional opportunities are blocked
Seshadripuram Institute Of Management Studies Page 53
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Chapter ndash 44
Functional Analysis- Finance Department
The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise Money is the life blood to
purchase of any enterprise as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer
The event of capital-intensive technique has increased the importance of finance
The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise
For companies which carry on production and distribution and distribution on a
large scale provision of adequate finance is a very challenging task It affects all the
business decisions where money is involved since the large commercial and
industrial undertaking are set up in the form of companies the problem of finance for
modern business is for all practical purpose of the problem of corporate finance
Any business for the matter whether large or small profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions It involves planning and controlling of the financial resources of the firm
Purchase finance clear the purchase proposals
Priced store ledger
Bills payable
Seshadripuram Institute Of Management Studies Page 54
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Hierarchy of finance department
Functions
The finance department gets funds extremely from the sales holders and banks They
provide funds only for expansion purpose and purchase of fixed capital like
machinery plant amp building etc on long term loan basis The working capital is
provided by the internal working capital
Planning
Acquisition of funds
Investments of funds
Dividend decision
Preparing of financial statements
Accounts payable
General ledger
Working capital management
Planning of funds
Seshadripuram Institute Of Management Studies Page 55
Finance Manager
AFM (payment)
AFM (working capital)
Executive (freight) E
xec
utiv
e
(exc
ise
)
Exe
cut
ive
(e
xci
se) Executive
(claims)
Executive (cashier)
Executive (credit control)
Executive (bills)
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement In the current year
Acquisitions of the funds
The company acquisition funds from different resources like they gets funds from
share holders by issuing shares and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization
Allocation of funds
The Company allocates the funds what they required from different sources
To purchase raw materials
To salaries for employees
To expenses
To pay the interest for the loan amount
Investment decision
Investment decision of investment in the capital assets investment in current assets
which are purchased by the company
Dividend decision
Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares
Preparing of financial statements
The company prepares the financial statements like trading and profit or loss
account balance sheet cash budget cash flow statements and fund flow
statement
Financing resources of the organization
The company has the following source of funds
Share capital
Secured loans
Unsecured loans
Seshadripuram Institute Of Management Studies Page 56
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Total shareholder funds
Cash reserve
NET FIXED ASSETS
Fixed assets are shown at the cost less accumulated depreciation Cost
comprises of purchase price import duties and other nonrefundable takes and any
other directly attributed costs Fixed assets mainly consist of land building plant amp
machinery furniture and fittings equipment motor cars and other vehicles
The company Net fixed assets are worth Rs 70 Crore
CURRENTS ASSETS
Current fixed assets of the company are worth Rs 15 Crore
CURRENT LIABILITIES
The current liability of coca cola (Patna) is Rs 25 Crore annually
NET SALES
The net sales of the company are Rs120 Crore
PROFIT BEFORE TAX
The profit before tax is Rs7 535000- as on Dec 31st 2009
PROFIT AFTER TAX
The profit after tax is Rs6 307000- as on Dec 31st 2009
CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore
Seshadripuram Institute Of Management Studies Page 57
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
SWOT ANALYSIS OF FINANCE DEPARTMENT
Strengths
Proper recording of accounts by using modern softwarersquos(ie customized
ERP )
On the basis of requirement funds are required provided by the financial
institutions
Many banks are ready to give loans for the establishment and development
of industry
Weakness
There are a stringent set of financial rules each proposal has to fulfill the
requirement of those rules
Working capital management is not up to the mark lack of co-ordination
between departments
Opportunities
Huge market potential both in domestic and internationally by proper
investment planning
The company can increase their investment opportunity by planned
borrowing
Threats
Not taking measures to reducing production cost adopting proper costing
method may lead to problem
Seshadripuram Institute Of Management Studies Page 58
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs
The production marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs
The products produced and marketed by the Company have a strong
brand image People all around the world recognize the brands marketed
by the Company Strong brand names like Sprite Fanta Limca Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world
Advertising plays a major in promoting sales of the product The company has
got one of the best advertising strategies Appointing film actors as the brand
ambassadors makes a great impact on the mind of the customers The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum
Weaknesses
The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season This also hamper the sales of the company
as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods
The brands produced by the company are brands produced world wide
thereby making the export levels very low In India there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola Therefore people abroad are apprehensive
about Coca-Cola products from India
Seshadripuram Institute Of Management Studies Page 59
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Opportunities
Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income Unlike olden
times people now goods of their choice without having to worry much about
the flow of their income The beverage industry can take advantage of such a
situation and enhance their sales have the power of buying
Coca- Cola Company has got more than 300 brands which is running
successfully over the world Thus it can launch some more brands in the
country after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts
As India is said to be one of the biggest market in the world thus the
company survive for long and can expands to its length and width Still there
are thousand of villages which have not been covered by soft drink
companies If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation
Threats
The tax system in India is accompanied by a variety of regulations at each
stage on the consequence from production to consumption When a license is
issued the production capacity is mentioned on the license and every time
the production capacity needs to be increased the license poses a problem
Renewing or updating a license every now and then is difficult Therefore this
can limit the growth of the Company and pose problems
One of the strong competitors of the company is Pepsi Co thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors
The rural market may be alluring but it is not without its problems Low per
capita disposable incomes that is half the urban disposable income large
number of daily wage earners acute dependence on the vagaries of the
monsoon seasonal consumption linked to harvests and festivals and special
Seshadripuram Institute Of Management Studies Page 60
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
occasions poor roads power problems and inaccessibility to conventional
advertising media All these problems might lead to a slowdown in the
demand for the companyrsquos products
Chapter ndash 6
SUMMARY OF FINDINGS AND SUGGESTIONS
It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution
Economic factors are those actors who effect the production of any industry So
Coke is not the out of question If the economic conditions of the country is not that
strong and Coke increases its Price in this situation Then it would impact highly
negative And inflation is also not a good position for any countryrsquos production point
of view It also impacts highly negative in the Cokersquos production
The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world
Of course business innovation leaves highly good impacts in the business of Coke
As coke use more advance technology in its production process It will result in
increment of their production throughout the country
As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on
cokersquos production Ever year when budget in announced government taxes rates
always shoot up This approach of government decreases the profit margin of Coke
Coca-Cola has always had a close consumer and supplier relationship with its
customers Its entertaining and colorful advertisements have always and will always
rock the media Indian rock stars sportmen and actors have played a very vital role
in making Coca-Cola such a popular beverage
Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the
region is Thumps Up Sprite and Maaza
According to most of the outlet owners the product which is seen is sold ie Jo
Dikhta Hai Woh Bikta Hai
Seshadripuram Institute Of Management Studies Page 61
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Few activation elements like Table Top Glow Shine Board Hanger Road Stand
plays a major role in increasing sell of the soft drink
Conclusion
In this particular city Coca cola is doing well as compared to Pepsi But there are
few mixed outlets too So to increase the market share of Coca cola it should tap all
the mixed outlets About 80 of market is owned by it yet more is expected to be
achieved Coca cola is trying to increase its expansion by
Entering to the Milk segment
Providing the packed Lemon water
Entering to the organized Juice market
Company should take advantage of its positive aspect like rain harvesting and many
social activities Coke is investing a huge amount on advertising it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing If sale increase obviously the market share will
also increase
There are few threats that the company should not neglect they are like-
1 People are becoming health conscious hence switching to fresh fruit juice
2 Omfed is also gaining its weightage in soft drink market
3 Amul cool also is increasing its demand
4 Increasing crowd in fruit juice and lassi stalls are alarming
5 It also can introduce vitamin water considering health consciousness of
customers
So considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position
Seshadripuram Institute Of Management Studies Page 62
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Suggestions
I can sum the recommendations in brief as follows
Aggressive Marketing
Regular visit to distributors
Sales promotion and advertising to be made more frequent for brand building
Communications should be improved Fulfill the Demand of product by
company In the fieldrsquos sales situation Sales persons work independently and
away from the office
Good communication requires interaction between those preparing and those
receiving reports A good sales reporting system provides both for
communication from the field to office and form office to the field
Sales reports provide data for evaluating performance
Company should make plans for better performance to the sales man
Company should be implement the customers suggestions and complaints
about products service policies price changes advertising companies etc
Company should gather information of competitorrsquos activities Transportation
confers time utility and place utility to the product It determines the
companyrsquos customer service it has also crucial bearing on the other elements
of physical distribution and marketing
Seshadripuram Institute Of Management Studies Page 63
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
Chapter- 7
Learning Experience
I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in
my entire 1st year course I realized this practically during my internship programme I
got a chance to deal with corporate citizens In the beginning when I joined here I
was only concerned about the data collection which was interesting Then I was
assigned a project known as Organisation study of HCCBPL I did the project very
carefully which gave a successful outcome
The co-operation by management amp employees is really helpful The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt So that it will create some awareness
in the mind of the people and it can easily identify the problems faced by competitor
counter
This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor I learnt the actual difference between the theories that I study
in its practical applicability in the organization I learnt how the business operates
and exposed to a wide range of company aspects
I also came to know about the importance of the training and development and how
it would help the employee
Now I know fully about manufacturing sector I wish after completion of my study I
may join any organization like Coca-Cola
Seshadripuram Institute Of Management Studies Page 64
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-
BIBLIOGRAPHY
TEXT BOOKS
Production and Operation Management
Marketing Management- Philip Kotler
Human Resource Management- K Aswathappa
WEBSITE
wwwgooglecoin
wwwcocacolaindiacom
wwwwikipediacom
Journals
Monthly Circular of Coca-Cola
Seshadripuram Institute Of Management Studies Page 65
- Scatter Plots
- Flow Charts
- Cause and Effect Fishbone Ishikawa Diagram
- Histogram or Bar Graph
- Check Sheets
- Check Lists
- 1) Coca-Cola sales club
- This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company
-