Final project on coca cola beverage company 1. Final Project on Coca Cola Beverage Company. Management Project Hamza L1F

Final Project on Coca Cola Beverage Company.

Management Project

Hamza L1F10BBAM0326 UMER FAROOQ L1F10BBAM2131

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Introduction:

The project is based on the history, mission, vision, organizational structure

and management functions of the Coca Cola Company. All these headlines are

discussed in detail in whole of the project.

Introduction of the Company

The Coca Cola Company is one of the biggest manufacturers, distributer and

marketers of beverages in the world. It was formed in 1886. Coca Cola offers more

than 400 brands in approximately more than 312 countries.

History of the Brand

Coca Cola is a multinational company who started its business on May 1886

in Atlanta as a beverage (formal drink) industry. Dr. John Styth Pemberton made a

cough syrup which he named “coke” on 8 th may 1886. Its price was 5 cent per

glass and was available at the largest pharmacy of Atlanta known by the name of

Jacob’s Pharmacy. Later on it was purchased by a well known businessman Asa

Griggs Candler who introduced it as a “carbonated soft drink” in the market and

hid marketing tactics led coke to Coca Cola and it dominated the market of

carbonated soft drinks throughout the twentieth century.

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In 1895 the company started to sell their product coke in bottles which was a

strategy of the company to be recognized well in the International market. Their

strategy worked and the bottled form of coke was successfully recognized all over

the world in the beginning of 1896. Now a day’s Coca Cola is the most famous and

highly consumed brand in all over the world.

Coca Cola Company started its business in Pakistan in 1953, with the brands

Coca Cola

Sprite

Fanta

The name of the company was “Coca Cola Beverage Pakistan Limited”. The

company was result of a joint venture between The Coca Cola International,

Fraser and Neeves Singapore and Pakage ltd. It acquired many local bottling

companies Pakistan, recently most of the bottling companies have been

acquired by the company and now it has switched its attention to boost up

their shares in Pakistani market.

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Plants of the company in Pakistan

There are many plants of the Coca Cola Company in whole over Pakistan. The

plants are in Karachi, Hyderabad, Multan, Gujranwala, Sialkot, Faisalabad,

Rahim Yar Khan and Lahore.

Location In Lahore

Coca-Cola Beverages Pakistan Limited. 5-E-II, Gulberg III, Lahore 54660,

Pakistan.

Mission, Vision and Values

The company is facing a huge numbers of challenges from all over the world.

Competitors are making brand new strategies to come close or defeat the company.

If the company wants to flourish them in the future, they must look forward and

should understand the direction of the business in the market and make their mind

for future. The company should become aware about what is going to come in

front of them in the future and how will they be able to tackle the situation. Their

vision for next ten years is about to create a long term destination program for their

business which will also provide them a “Roadmap” for wining from their bottling

competitors.

Mission

“Our Roadmap starts with of our mission, which is enduring. It declares our

purpose as a company and serves as a standard against which we weigh our

actions and decisions.

a. To refresh the world.

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b. To inspire moments of optimism and happiness.

c. To create value and make difference.”

Vision

“ We will become the best and biggest anchor bottler in the world”

“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.

a. People: Be a great place to work where people are inspired to be the best

they can be.

b. Portfolio: Bring to the world a portfolio of quality beverage brands that

anticipate and satisfy people desires and needs.

c. Partners: Nurture a wining network of consumers and suppliers, together

we create mutual, enduring value.

d. Planet: Be a responsible citizen that makes a difference by helping build and

support sustainable communities.

e. Profit: Maximize long term return to shareowners while being mindful of

our overall responsibilities.

f. Productivity: Be a highly effective, lean and fast moving organization.”

Organizational Design

Before the nineties the Coca Cola company was having the centralize system of

control in it, but after sometime they realized that if they had to meet the demands

of the customers they should adopt the decentralized system in which the authority

of decision making is distributed between different managers so that the every

sector can be managed effectively. This system was implemented in the nineties by

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the company’s board of directors. Now the organization is having two groups who

are responsible for operating:

Bottling Investments

Corporate

Operating groups are also divided by different regions i.e. Africa, Asia, Middle

East, European Union, Latin America, North America etc. All the divisions are

further divided into geographical regions. This allows the local market to involve

in decision making, due to this the organization responds quick to the changing

demands of the market, this helps the upper level managers to concentrate on the

long term planning of the organization.

The company’s corporate division is filled with different departments which are as

follow:

 Finance Department

 Human Resource Department

 Marketing Department

 Innovation Department

 Planning Department

Some of the above mentioned departments are in the lower levels in the regions of

the company, the decision making job is most of the times done by the top level

management.

Sharing the latest information with each other is very fast by all the departments

and by such activities the organization appears to be doing their job effectively by

balancing standardization and mutual adjustment. The organization has made the

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CODE OF CONDUUCT which is a guidebook for the employees that how should

they act? The disciplinary actions are the main subjects of the code of conduct.

The larger role in the organization’s success in played by the mutual adjustments

due to the changes brought upon by Nevile Isdell the CEO and Chairman of the

company 2004. The turnover has been reduced because the employees feel more

engaged in the work. The organization’s growth rates increased and the return of

equity for stockholders went from a negative return to a 20 percent return. The

changes brought by Isdell proved to be good for the organization and the

employees were also happy with the change which is reflected by the end results of

the company.

Such balances are indispensible because due to them the employees feel some

flexibility and it also gives some time to the organization to forecast their future

plans about the organization. The structure of the Coca Cola Company is made up

of both “Mechanistic & Organic” models. The Coca Cola Beverage Company

mainly focuses on the responsiveness.

All the complex integrating mechanism which are discussed before are the

characteristics of the organic structure. The company uses survey and interviews

for the flow of information from bottom to up, latterly the information is

exchanged by the intranet. The surveys have made the Coca Cola Company to

believe of simplification and standardization. Centralization and standardization

are associated with mechanistic structure.

The mix of the two structures looks to be ideal for the organization. When

organization wants to appeal to such a huge kind of independent market it requires

to be flexible, on the other hand to be more efficient in production. Coordination is

easy for the company when it uses complex integrating mechanisms. Due to

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centralization the organization goals and organizational choices are kept align.

Now that the information in the company is flowing very easily, the top level of

management will receive the information more fast due to tre organization’s

flexibility and responsiveness.

Recently there was a shift in the organization to make it more decentralized and

organic which corresponded with quite uncertainty with organization.

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Organization Structure

94,800 employees are currently working in the Coca Cola Company. According to

the organizational chart there are five hierarchical levels at the corporate level.

Managing Director (MD)

 Human Resource Managers

 Marketing Manager

 Finance Manager

 Production Manager

 Quality Manager

 Administrator Manager

MD

HR

Managers

Frontline

Manager

Workers

Marketing

Manager

Frontline

Manager

Workers

Finance

Manager

Frontline Manager

Workers

Production

Manager

Frontline Manager

Workers

Quality

Manager

Frontline

Manager

Workers

Admin

Manager

Frontline

Manager

Workers

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Management Functions of Coca Cola Company

There are four major functions of management of the Coca Cola Company which

are as follow:

1. Planning

2. Organizing

3. Leading

4. Controlling

Planning

The Coca Cola Company consists of just a three layers of flat hierarchy. Due to

this the top level management has the duty of setting the goals and objectives of

the company. Planning is also done by the upper level managers.

Strategic Goals

In most of the companies the strategic goals are made for long term but Coca Cola

Company’s goals are set for only three years, they change their strategies after

every three years. The goals are set by the Managing Director of the company after

getting the clearance from the headquarters of the company in Singapore. Every

year in the annual meeting they have a review of their strategy to make sure that

are moving with the changing environment in the market.

The following are the strategic goals of Coca Cola Company:

“

 To continue to be an organization providing the quality products to the

valuable customers.

 To select and retain the professional people for the organization.

 To project an outstanding corporate image.

 To satisfy the customer through extra ordinary service and an excellent

service

 A along with the complete tactical and operational support.”

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Tactic Goals

Tactic goals are set at the end of the year at annual basis. The top level

management decides these goals with the consultation of the lover level

employees. The following are the tactic goals of the company:

”

 To increase the revenues by 20% as compared to last year.

 To increase the total retail customers by around 10%

 To increase the market share by 5%

 To reactivate the discontinued customers by 30%”

Operational Goals

The operational goals are also set by the Managing Director of the company.

Before implementing these goals the manager consult them with lower level

employees and after convincing them they implement the goals officially. In this

type of goals the company uses Management by objectives (MBO). Every

employee assigned is told about what the organization is expecting from him/her

and then his evaluation is done on the basis of organization’s rules and regulations.

According to Coca Cola Company: a sales man has three main functions to

perform:

“

 To find new customers.

 To retain existing ones.

 To bring back the discounted accounts.”

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Decision Making

Decision making process is centralized in the company. The classical model is

used, the top level managers take their time in making the decisions, all the

possible alternatives are kept in mind before going for the rationally economic

solution.

The top level managers don’t consult with any employee in case of programmed

decision making. The ordinary routine decisions are made by the line managers of

the middle level management after getting the permission from the general

manager.

The following are the decisions which are taken by the top level of management in

the Coca Cola Company:

“

 The package positioning

 Trade discounts

 Advertisements

 Price reductions

 Distribution.”

In recruitment of new employees the top level management approves the vacancies

and the Human Capital Department is asked to conduct a written test such kind of

tests are conducted for the employees of lower level. The prospective applicants

are shot listed through the interview process. After taking the interview of the

applicant the operation manager and the general manager make the final decision

of selection of the employee.

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Organizing

Organizing is the second management function. The following steps are taken by

the Coca Cola Company in organizing their goals and objectives:

 Departmentalization

 Work Specialization

 Delegation and Accountability

 Resource Allocation

 Organizing the Human Resources

All the steps are discussed bellow in detail:

Departmentalization

On the basis of functional approach the Coca Cola Company is divided into

different departments. Grouping of employees is done on the basis of their

common skills and work activities. Such kind of approach helps the company in

solving their problems and it also make the less the need of training the employees

specially. The general manger is head of all the departments all the department

have to report to the general manager in the Coca Cola Company. There are five

major departments in the company which are as follow:

 Production Department

 Industrial Relations Department

 Sales and Marketing Department

 Human Capital Department

 Finance Department

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Production Department: This department looks around all the production of the

company. All plants in the country are in under its control.

Industrial Relation Department: This department deals with the problems of the

employees. The department listen the problems of the employees and send them to

the high authorities for settling them up and stop them from becoming a hurdle in

the work progress of the company.

Sales and Marketing department: This department makes sure that the product is

easily available in the market for the customers to buy and deals with the issues of

advertisement, promotion, and distribution of the product.

Human Capital Department: This department takes care of the efficient workers

of the company, they select some efficient workers of in the company recommend

their names for promotion in job so that the workers remain happy and don’t leave

the company. Management level employees are dealt by the department.

Finance Department: The department is concerned with cost and price of the

products produced by the company. It also tackles with import related issues of the

company. Finance department is assisted by the sales and marketing department in

making invoices and payroll entries.

Work Specialization

There is a high percentage of work specialization in the Coca Cola Company

because every manager is appointed in the function in which he is expert so there is

no boredom or monotony. All the promotions of the employees are based on their

performances. No favoritism is allowed in the company.

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Delegation and Accountability

There is a high percentage of delegation in the company. The work is done with

proper authority and responsibility. Every manager is made accountable for the

actions of his subordinates. All the subordinates are guided very keenly by their

respective managers at the time of accomplishing some goal. Keeping the

delegation process on the other side the managers also motivate their subordinates

to boost up their energy and make them more effective by using different methods.

They make their subordinated think that they have to give their best to their

managers which increases their performance, quality of work and satisfaction of

the customers.

Resource Allocation

When the issue of resource allocation comes into action the Coca Cola Company

has given the authority to managers to use the resources of the company where

ever and whenever they are needed. Only they are required to get the approval

from the manager if those assets belong to his department. The resources can be

capital, labor, machinery or anything else.

Organizing the Human Resources

The company does the recruitment process when there is a position empty and the

recruitment is always done on permanent basis in Coca Cola Company.

Recruitment is done when the manger needs the employee under him and he send

the request to the general manager and after the approval of the general manager

the request is sent to the Human Resource Department.

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In Coca Cola firstly all the vacancies are announced within the organization so that

if there is someone who can fulfill the requirements can get him/herself promoted

or can refer someone of his relative to join if he is capable of that job. If there are

no suitable persons than the company searches its bank where there are huge

amount of application of the applicants. If there also they find no person suitable

for the job then at last they give the advertisement in the newspaper etc.

Leading

The third management function is “leading”. The following major steps are taken

by the Coca Cola Company in the leading function:

 Motivation

 Communication

 Corporate Culture

Motivation

Coca Cola Company gives high attention to the motivation of the employees.

Promotions of hardworking employees are a part of the company’s policy.

Promotions of employees are done on the performance basis which is a great

motivation for the employee that higher his performance there is more chance of

his promotion.

Beside from promotion strategy the Coca Cola Company also uses the

compensation strategy to motivate the employee; Coca Cola is paying industrial

average in compensation. Not only this different campaigns and competitions

between the employees itself are also used to motivate the employees.

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Managers play a very important role in the motivation of the employees in Coca

Cola Company. They help them in all their problems either they are personnel or

professional. They give them feedback on their performance which makes the

employee feel good. Working environment and a challenging milestone are a major

factor in employee motivation in the company.

Communication

There is an open environment in the Coca Cola Company which allows the

employees to communicate with each other and it allows the information to flow

inside the company and discourages the barriers between members to share

information. Before making the decisions the top level managers discuss it with the

middle level managers and before decision making it is shared till the end of the

hierarchy. The Coca Cola Company allows the employees that anyone of them can

meet the general manager if he/she is facing any kind of difficulty.

Interdepartmental communication is done in the form of formal and informal

manners. To get the feedback of the employees and get the view of the employee

about the manager the grapevine is used.

Corporate Culture

The top management of the Coca Cola tries to follow the prescribed culture of the

organization. Coca Cola has formal and documented values that are communicated

to all the employees. The top level manager acts as role models to make sure that

the rules and regulations are been applied in the company and closely administrator

review their employee’s behavior.

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Controlling

The last and the most crucial function of management are “Controlling”. In this

function the company evaluates that either they have achieved the goals which they

had set before. If the answer is “yes” then the employees and managers are

rewarded with bonuses and other ways and vice versa. In the following we’ll come

to know that how the Coca Cola Company performs its controlling function?

Sales Person’s Reporting System

Sales person had to report to the market developer area every day about his

activities. He give him record of the per day sales and he can get any kind of

assistance by the area market developer anytime on any matter.

Attendance of the sales person is taken with the punch card system, with the help

of which the entry and exit time of the sales person is recorded.

Every sales person is given a route card in which there are details of the visit of the

outlets, how much time he spent on the outlets, number of sales made on the

outlets, the time taken during travelling from one outlet to the other, name of the

loader and sales person and the entry and exit time of the vehicle.

Apart from this the sales person is also given a forum to fill up for the orders of the

next day to be loaded in the truck. This makes the managers know that how much

sales of which brand and the size of the product are been done by the sales person.

The information is useful for the human resource department because they have to

evaluate the total performance and calculate the total salary of the sales person.

Sales Person Evaluating System

Evaluation of all the sales person is done on quarterly basis. Evaluation helps in the

promotion of the people to higher levels in the organization. The evaluation is a

great motivator for the sales person because due to this he works hard to get

promotion or at least the monetary reward. Monetary rewards are not only given to

the best sales person, they are also given to the best market developer and the best

sales manager of the year.

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Performance development plan is kept as base to evaluate the performance of the

employee. The measurement of performance is done on the basis of achievement

of targets which were set and communicated at the start of the year in front of each

sales manager, each quarter to market developer and monthly to ever salesperson.

This performance develop plan evaluates the sales made by the salespersons on the

basis of call slips, route calls, call completion, effective and productive call,

attendance of the salespersons, growth in sales done by the sales man, market

development and the punctuality of the sales person .

The End.