MANAGEMENT PROJECT TITLE: COCA-COLA SUBMITTED BY: ARSLAN MAQSOOD L1F10BBAM0110 MUHAMMAD AHSAN L1F10BBAM2129 SECTION : L SUBJECT: MANAGEMENT

SUBMISSION DATE: 24-05-2011 SUBMITTED TO: PROFESSOR FAROOQ ANWAR

1: INTRODUCTION
This report deals with the Management Functions of the Coca-Cola Beverage Limited. The material in it has been chose to help the reader to get an insight of the Coca Cola Company. The report includes Planning, Organizing, Leading, Controlling Functions and the sub headings which are related to these functionalities.

1.1: HISTORY
International:
Coca-Cola Beverage Industry started in 1886 in Atlanta, but it was in 1895 when coke was started to sell in bottles to the public. So from its mere beginning in 1886 the Brand got popular and famous among people and at the present time it has turned to be one of the biggest multinational company in the world and the most consumed Brand worldwide.

National:
Coca-Cola Beverages Pakistan Limited (CCBPL) started its work officially in Pakistan in May 1996. They started by acquiring the National Beverages LTD Karachi and then went of purchasing bottler companies in Hyderabad. Coca-Cola plans to buy each SME bottler company in Pakistan to bring it under the title of the multinational Coca-Cola beverages and to increase the market share in Pakistan as there are a lot of opportunities opening for them in the market.

1.2: PRODUCTS
Currently CCBPL is dealing in 5 major products in Pakistan.      Coke Fanta Sprite Kinley (Pure drinking water) Pulpy Orange (Fruit Juice)

These products are sold in the market in different containers ranging as follow:    250 ml 250 ml (Disposable) 500 ml

  

1 liter 1.5 liter 2.25 liter

 IN PAKISTAN DIFFERENT SLOGANS HAVE BEEN USED IN THE

PAST YEARS, INCLUDINS EVEN SPECIAL TAG LINES FOR SPECIAL EVENTS LIKE WORLD CUP; AN EXAMPLE OF WHICH IS AS FOLLOW: “ALWAYS COCA COLA”  “DIL HAI TO MANGO OR”  “COKE SE KHULAY KHUSIAAN” (OPEN HAPPINES)  “COKE CRICKET JUNNON” (FOR WORLD CUP 2011)

2: PLANNING
“Without a strategy the organization is like a ship without A rudder, going around in circles. It’s like a tramp that Has no place to go to”
(Joel Ross and Michael Kami) Q: WHAT IS PLANNING? ANS: Planning is the first step in the management process. It is all about setting goals & objectives for an organization and determines the best way to achieve it. To understand the “Goals & objectives” we should understand the mission & vision statement. According to us goals should be:      Smart. Measurable. Attainable. Relevant. Time bound.

OVERVIEW:
Strategic planning has become a great part of an organization’s goals in fact organizational goal are achieved through this strategic planning. To certain people it may seem new but ever since the advent of management planning has been its foremost priority because without planning we can move nowhere and do nothing except wasting time, money and power. Plans help other management functions to be accomplished, like a plan will be used to organize the further work schedule, similarly a plan will be used by a leader to lead the organization because if he doesn’t has a goal, a mission, and a strategic plan to achieve that plan than he can only lead his team go astray. Then the plans are used after finishing a certain job in the controlling cycle for managers use predefined set of standards mentioned in the plan for controlling and analyzing the job done.

“Good strategy and good implementation are the most trustworthy Proof of good management”
 A strategic plan, then, is the bridge to the future, which an organization uses to lead from what it is to what it envisions it can become.

2.1: CORPORATE OBJECTIVES

Vision Statement: “We will become the best and the biggest anchor bottler in the world”
 All the goal setting within the company is done by the top management as the company contains a very flat hierarchy consisting only 3 numbers of layers. The company’s objectives can be classified as follow:

Strategic Goals:
Although strategic goals are made on long-term basis for many companies but for Coca-Cola it only has a span of only three years. These goals and objectives are made by the Top Management by interaction with the Headquarters in Singapore. However, these plans are reviewed annually at the account of changing environmental conditions day by day. These goals include:

   

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 along with the complete tactical and operational support.

Tactical Goals:
The Top Management devises these goals on annual basis after the consultation with lower level employees. Once these goals have been made, different departments of the company are sent their goals and are divided into quarterly or monthly basis to have a proper channel of check and balance. This makes it easy for the company to manage their control cycle. Present tactical goals are as follow:  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:
Operational goals are made by the Top Management after the consultation of certain factors with the lower level employees. In Coca-Cola Beverages Management By Objective (MBO) system is used that allocates each employee its duties in the Master Plan and every employee is expected to fulfill those duties on time and there are certain set of standards already set to evaluate each employee on individual basis to pay him the compensation.

For Example: A sales man is given following tasks, duties and certain targets: Each salesman has to oversee around 100-125 outlets. The frequency of visits to each outlet depends upon the sales of that particular outlet. Normally, a salesman has to visit a single outlet thrice a week i.e. every alternate day. This means that a salesman visits at least 20-30 outlets per day. The salesman has three basic functions to perform:     To find new customers, To retain existing ones, To bring back the discontinued accounts. Each salesman has to bring in at least three new accounts every month. These may either be new customers or the reactivation of the discontinued accounts.

Sales Manager are held responsible for achieving these operational goals, these managers are given certain hold over their employees so that they can held accountable their employees for the activities they are performing and achieving these goals.

2.2: DECISION MAKING
“Competing in the market place is like a war. You have Injuries and casualties, and the best strategy win” (John Collins)
CCBPL follows the centralization format in decision making. All the decisions regarding economic factors, feasible solutions, etc. are taken by the Top Management and they spend their time in improving the company’s charts and bars. Top Management considers only itself to be reliable and competent in making decisions of such tasks. Line Managers also have their say regarding the matters of daily routine, in establishing and completing the goals of productions and else on daily basis but still they require an approval or consent from their general manager. The Top Management usually takes following decisions:     The package positioning Trade discounts  Advertisements Price reductions Distribution

While hiring new employees Top Management conveys its Human Capital Department about the testing, hiring process, and many other factors. After testing, managers themselves take the interviews of the personnel and final decision goes on for Top Management. CCBPL although follows decisions from its Top management but the lower level and middle level managers provide them with the input and they are more than welcomed to provide suggestions and analysis on current work situations. The Management is very cooperative and its employees are asked to come up with new ideas to help the organization grow and achieve its organizational goals.

3: ORGANIZING Analysis of Organization’s Structure
Q: what is organizing?

ANS: it is the second step in the management process. At this stage all the managers should try to arrange the resources to carry out the planning stage.

3.1: DEPARTMENTALIZATION
CCBPL works on the approach of functional departmentalization. The company has been divided into different functional departments which are overviewed by the General Mangers. This departmentalization introduces work specialization in the company and the employees learn to tackle difficult situations and develop a skill for Problem Solving. These departments can be classified as follow:  Production Department is responsible for the overall production of the CCBPL. There are 8 plants of CCBPL operating throughout the country. Different areas are distributed the products on the basis of nearness so as to reduce the transportation cost.  Industrial Relations Department is responsible for dealing with the problems related to the working environment of the employees and the issues related to the labor unions.  Sales and Marketing Department is responsible for the making the product available in the market and to deal with the issues related to the advertisements of the products.  Human Capital Department is responsible for looking for the efficient pool of workers, selecting the professionals and makes them happy so that they should stick to the company. The Human Capital department deals with management level employees’ grievances.  Finance Department deals with the overall costing and pricing of the products. This also handles the import related issues of the company. Accounting department assists the sales department in making invoices and payroll entries.

3.2: WORK SPECIALIZATION
As mentioned earlier, CCBPL has a high level of work specialization as every manager is performing only those tasks which he should be in the mentioned plan and is held responsible only for them. The level of activity is quite high due to challenging tasks and promotions, salesman barely find a chance to fell boredom on monotony.

3.3: AUTHORITY AND RESPONSIBILITY
There is a great role of sales manager in the company. Every salesman reports to his respective sales manager. Managers check the performance of their respective salesman and give them

timely feedback. They also serve as a guide and help salesman whenever it is needed. These salesmen are monitored on timely basis to get the best out of them. Every employee of the company has his own authority and responsibility. Employees are awarded freedom as well as they are held responsible for the tasks they are performing. But mangers play a vital role in the company for every employee stands before them for any matter.

3.4: DELEGATION AND ACCOUNTABILITY
Great examples of delegation are seen in CCBPL, but as the managers delegate their services they must have some good authority and responsibility for at the end of period they are held responsible for the tasks of their subordinates, to whom services had been delegated. For this purpose proper instruction and guidance is required managers on their behalf do some of the working but the main work is done by the Human Capital Department which trains the employees to work efficiently and effectively so that they don’t let their managers go down and produce the best out of themselves.

3.5: SPAN OF CONTROL
The span of control in the organization is quite low. Only 3-5 employees report to their managers at max. This amount is low because the tasks been performed in the company are quite different from each other and the management considers it to be low for efficient and effective working around the company.

3.6: RESOURCE ALLOCATION
In CCBPL managers have free hand to use whatever they want from resources under their span of control. They may use raw material, workforce, capital or any other form of resources. But if they want to share the assets of somebody else then they must take permission from the concerned manager and then perform whatever work they want to on it.

3.7: ORGANIZING THE HUMAN RESOURCES
Coca-Cola usually hires employees on need basis. Whenever a supervisor or sales manager needs a staff he may search for the options but first the approval is sent to the general manager to hire the new sales person. CCBPL first searches for the option within the organization so that a bond of family is created and they can provide maximum benefits to their employees. If a suitable

option is not found then company looks into its database and even if then its unlucky then it comes for the advertisement in the newspaper which is taken very quickly. Selection process is quite simple and easy. The foremost requirement is the education, candidates are screened on this basis after this screening stage candidates are called for the aptitude test in which they are tested for simple arithmetic and general knowledge questions, in some cases spoken and written English may also be required. After that candidates are called for interviews by sales and HR department, which are a sort of formality just to confirm the information the selected candidates have provided. After that they are required to submit four securities so that the company can trust on them and start a good relation with them.

3.8: TRAINING
Coca-Cola puts great stress on employee training for if the salesman is not well trained he may produce difficulties for the company and come up with broken relationship of years with the customers. Salesmen are made well aware of the company’s policies, rules and regulations, and ethics and usually they are asked to do work under some experienced salesman so that they come to know about the work. Besides this CCBPL also organizes in-house training in which sales personnel are given lectures, seminars, and different techniques by their seniors or General Managers. They tell them about the sales techniques, the changing environment around us, the economy and different day to day to factors necessary for a salesman to learn. Several virtual workshops are held in which videos are shown to employees to help them brush up their selling skills and techniques. Company holds a very good in-house promotion. Employees are promoted on their objective evaluation which managers then analyze; above all the wages that company pays to its laborers are more than the normal industry wages and the fringe benefits and incentive plans which CocaCola holds to keep its employees working in happy conditions and keep them attracted towards achieving the organizational goals.

4: LEADING
Q: what is leading? Ans: it is the third step in the management process that influences the human resources, motivate it, get work done and achieve the goals & objective.

4.1: LEADERSHIP STYLE

Coca-Cola gives great importance to its General Managers, because they hold a top position in the organization. They are required to take major administrative and general decisions and also these managers are responsible for leading and motivating their subordinates and staff people.   Increasing business with a coordinated approach by helping each other in its operations. Encouraging the employees to give new ideas so as to increase the customer satisfaction.

Due to the presence of delegation and participation the Democratic Leadership Style is used since managers have to run the organization by involving their workforce and considering them as an important part of the organization. Sales and Marketing Departments make the use of team work to keep the interest of their fellow employees developed. Juniors are not considered inferiors rather they are given a good dosage of experience and help that they start working on their own without the words of their managers. Performance awards are also there for lower level employees so that they perform at their best and work at least to get the awards.

4.2: MOTIVATION
As mentioned earlier promotions are given on performance in CCBPL, so the employees gets motivated to work hard and achieve that level of performance so that they may prosper within the organization. Also amount of wages is relatively higher than a normal industry wage that creates a major difference not only the old employees work faithfully but the new ones are motivated to become part of such a good organization whose main priority is lower level employees. Managers give their teams’ timely feedback on their team’s performance and keep them motivated by helping them personally without any rules and restrictions also those who want to come forward are given a shoulder, a step to make their dream come true.

4.3: COMMUNICATION
Open culture is the basis of communication in the organization. Employees are consulted by the top management for the decision process and the chain moves on. Managers also cop up with their teams and their offices are open 24/7 for those who want to remove any confusion. Sometimes even the Grape Vine structure is used too so that the management can get the feedback of the employees about their working, which helps managers a lot in making further decisions.

4.4: CORPORATE CULTURE
Top Management takes great care of the Organizational Rules & Regulations which ought to be followed by every personnel of the company. Every employee is made well aware of the norms

and values of the organization and formal set of rules is strictly followed so that some people may not benefit from the name of company and turn it into a dirty fish in front of the world.

5: CONTROLLING
Q: what is controlling? Ans: it is the fourth step in the management process . It is all about monitoring, controlling and evaluating the performances. It is the step when we measure our progress against the goals & objectives.
Evaluation is done on the objective basis and on the predefined set of rules. Managers measure the performance of workers and analyze them against the pre set standards in the planning process and if some employees fall under the required level then corrective action is taken against them they are questioned, helped, reviewed, and given any sort of assistance so that they may not fall astray.

5.1: SALES PERSON’S REPORTING SYSTEM
Sales persons contact market developers of there are for assistance. They may come at any time to seek assistance and to know anything they want. Also they are requires to take record of their daily activities and report them to the marketing developer. These activities include attendance, total sales, punch card readings, time spent on customers, orders brought, etc. all these information takes a good track of them for they can be analyzed through this data. Sales department also gets help from this data in managing the wages and salaries of sales personnel.

5.2: SALES PERSON’S EVALUATION SYSTEM
Sales persons are evaluated through their performance and good performances are rewarded with promotions or monetary awards. Sales persons give their best at the work so that they become legitimate for the promotions and awards. Also there are awards like best seller, best manager, best marketing developers, all these motivate the employees and they work at their best to achieve them and also a feeling is developed in them hat someone is caring for them so they try to achieve their sales targets, punctuality, customer orders and many more factors.

6: ANALYSIS

CCBPL being a multinational has all the good traits of good management functions. All of them are properly devised and implemented in the organization. Planning holds a great position in the aim of the company; its planning makes it different from other multinationals. Annual business plan of the year represents a great mind set behind the management of the organization. The division of departments within the organizations makes it profitable and increases both its efficiency and effectiveness.

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