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Title : Management Research Name of the Organization : Coca Cola Preparer : Usama Ali Khan Date : September 2, 2013

Course : Principles Of Management

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Research Methods
world wide web Library Interview

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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 8th may 1886. Its price was 5 cent per glass and was available at the largest pharmacy of Atlanta known by the name of Jacobs 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 days 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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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. 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.

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

Planning Methodologies

Primary Planning Types

Business planning types come in various flavors depending on the company size and industry. However, there are three basic plans that apply to all businesses, large or small. Business, strategic and marketing plans are important to every for-profit and nonprofit organization. Understanding the goals and components of each offers businesses the tools to create effective plans using the most basic or sophisticated techniques.

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Business Plans

Typically used for starting up or financing a company, business plans are the cornerstone of the planning function. Components of a business plan include an executive summary, market analysis, product/service descriptions and financial/operations projections for a minimum of three to five years. In start-up situations that need initial financing, creators should paint a vivid, yet conservative, picture of the founders and the rationale for believing the business will succeed. When seeking growth-financing, management should highlight past company performance and carefully project the impact of the new funding on improving net income. Always include debt service, which is the amount needed to repay the new loan, in income and expense projections.

Strategic Plan

Strategic plans should be created by business owners and/or senior management only. Unlike business plans, which are based on historical data and future projections, strategic plans are more conceptual. These plans should include defining your organizational goals, identifying your available options to achieve your objectives and considering new short-term opportunities you believe will exist to improve your business's results. You may want to incorporate specific industry trends into your planned strategy. Strategic plans are not long-term creations, but should address taking advantage of available opportunities in the next 12 to 24 months.

Marketing Plans

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All the fabulous business and strategic plans ever devised will fail if you don't market and sell your product or service. A solid marketing plan will help you achieve gross income and sales goals. A SWOT (strengths, weaknesses, opportunities, and threats) analysis is an effective technique for creating a winning marketing plan. SWOT is also useful in strategic plan creation as a foundation technique. You can also combine a SWOT analysis with the four P's--product, price, publicity, and place--of effective marketing. Even if you have invented the "better mousetrap", you need a superior marketing plan to get results. These techniques will give you the ammunition you need. Plans are developed in order to set out a route map to help in achieving business objectives. External influences that affect planning include the actions of competitors, and a range of social, legal, economic, and technological factors. A plan therefore needs to be designed to take account of the external environment.

Corporate strategy
For example, if the organisation is planning to expand it is important to make sure that the market will justify such an expansion (which depends on social and economic factors such as consumer The planning process tastes can therefore be and illustrated in the incomes). following way:

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Large companies like Coca-Cola and Kellogg's will create a number of plans. At the highest level they will create an organisation wide plan termed corporate strategy. This will be supported by a range of lower level plans including marketing plans, production plans, advertising plans, human resources plans etc The strategic planning of coca-cola is to reexamine their strategic models, based upon carbonated soft drinks (cola,lemon-lime and orange) and move to new beverage categories. Also be able to renovate bottling to make it flexible enough to provide manufacturing and sales distribution of all new products

Customers of Coca Cola

At Coca-Cola HBC, customers are at the heart of everything we do. Customer preference
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is a core value of our business. This means building true partnerships that create sustainable value and profitable growth for our business and our customers across all key channels. By finding new ways to win together in the marketplace, we aim to be the preferred supplier to all of our customers. To achieve this, we have adopted a comprehensive set of initiatives designed to build collaborative customer relationships and ensure excellent execution.

Competitors

PepsiCo, Inc. Nestle S.A. Dr Pepper Snapple Group, inc.

Coke has a 50% share of the global carbonated soft-drink industry and over 80% in many markets. Coke appears to have a sustainable scale advantages over its competition - it's reatest competitive advantage is the scale of its global bottling system, even more than the predominance of the Coke brand. Coke should be able to used these scale advantages outside the US to leverage its distribution pipeline expanding into other beverage segments.

However, as Coke has seen its stock nearly half since 1998, its main competitor, PepsiCo (PEP) has seen its stock climb from $35 to a high of $50 (now currently at $47) with a 52-week rise of 14% vs. Coca-Cola's fall of 24% - reversing the 10 year trend of consistently lagging behind Coca-Cola. Pepsi internationally manufactures concentrates of brand Pepsi, Mountain Dew, and other brands for sale to franchised bottlers in the US and international markets. Pepsi also markets, sells, and distributes juices under several Tropicana trademarks in the US and

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internationally. In addition to the soft drink and juice business, PepsiCo is engaged in the snack food segment through its domestic and international Frito Lay business. Like Coca-Cola, Pepsi has also been attempting to move into the faster growing non-carbonated beverage segment with its recent acquisitions of South Beach Beverage Co. and its popular SoBe line of herb- spiked fruit, energy, and tea drinks, as well as the prized Gatorade sports drink through a $13-billion acquisition of Quaker Oats Co. Pepsi also makes and markets North America's best selling brands of ready-to-drink coffees and teas through joint ventures with Lipton and Starbucks.

Another competitor to Coca-Cola is National Beverage Co. (FIZ). FIZ is a holding company for various subsidiaries that develop, manufacture, market, and distribute a complete portfolio of beverage products throughout the United States. The Company's brands emphasize distinctive flavor variety, including its flagship brands, Shasta and Faygo, complete lines of multi-flavored and cola soft drinks. In addition, the Company offers an assortment of premium beverages geared toward the health-conscious consumer. The Company also produces specialty products, including VooDoo Rain, a line of alternative beverages geared toward young consumers, Ohana fruit-flavored drinks, and St. Nick's holiday soft drinks. The Company develops and produces soft drinks for retail grocery chains, warehouse clubs, massmerchandisers and wholesalers (allied brands) as well as soft drinks for other beverage companies.

Organizing

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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 dont 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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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

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MD

HR
Managers

Marketing
Manager

Finance
Manager Frontline Manager

Production
Manager Frontline Manager

Quality
Manager Frontline Manager Workers

Admin
Manager

Frontline
Manager Workers

Frontline
Manager Workers

Frontline
Manager Workers

Workers

Workers

Decision Making Process

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Decisions are guided by several factors, primarily the significance of the issue, the impact the decision may have, and the person's or group's morals and cultural norms. For less significant decisions that have little impact, people might not invoke the higher thinking skills that theorists expect.

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 dont 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.

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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.

Change management-----A case of Coca Cola Corporation

Coca Cola is a type of company that requires making changes in its products and business strategies according to the consumer expectations and external environment. Coca Cola Corporation is among one of the oldest corporations of the world. It has gone through many internal and external changes since it has been in existence. The company has used techniques of change management in order to survive from the consequences of those events.
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The company has faced a lot of external changes, for example in world war II, the company was able to manage its existing position at that time and also entered in many new markets and discovered new niches. The company established 64 plants across the world to supply drinks to the troops (Coca Cola company, 2006-2011). The company also provided free drinks to soldiers which were the part of its strategy to become a patriotic symbol for the people of the country. Also it boosted the sales, so the company achieved two objectives by carefully planning to respond to that external environmental change. The plants developed by the company in war era helped its expansion after the war. Barton et al (2002) reported that Coca Cola Corporation adopted acquisition strategy in time of Asian financial crisis. The company acquired bottling, coffee and tea shop businesses in Korea and Malaysia. Beverage is a type of industry where tastes and preferences of the consumers change on continuous basis. Coca Cola Company also responded to such consumer changing behaviors in effective way by developing new products like Diet Coke and Coca Cola Zero. The company also committed a marketing blender when a rival company launched a black beverage with comparatively sweet and smooth taste. The product was named as new Coke. But the sales gradually went down and company faced severe consumer critics and protests. The company managed this situation very commendably by restoring the old formula and naming the bottle as diet coke (Kotler and Armstrong, 2010). As people are becoming more health conscious and willing to invest on health based products, coca cola is developing juices and various energy drinks as well. This shows the companys strategy to responding varying consumer tastes and expectations and changing itself according to it. The coco cola company used theory of organization change presented by Kotler (1996) which elaborated the procedure to manage change on the people dimension of the organization.

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The well known CEO of coca cola Corporation Mr. Gouizetta who remained CEO of the company for seventeen years determined and solved the problem in manufacturing of drinks. He was the key man in revising coca colas operations and tailoring strategies that helped the company standing high among its competitors. He achieved objectives of the firm by planning and leading the tasks by himself and provided an inspirational leadership to the employees. He was the one who appointed talented human resource like Ivester who took great part in covering the weaknesses and exploiting the opportunities for the company (The Coca-Cola company case. n.d.). In addition to making operational and strategic changes, the company also changed its advertising strategy by targeting various groups of consumers like American consumers. African consumers, Middle and far eastern consumers and European consumers. The company altered the packaging of its coca cola brand and developed more product lines and broadened them globally (The Coca-Cola company case. n.d.). The present condition of coca cola company worldwide is very good. The company is selling its beverages throughout the world successfully. But in some countries, coca cola stores are not as according to the companys main marketing, inventory and efficiency theme. The company is planning to align its performance standards according to its own corporate culture and strategies with the help of a comprehensive change management plan. These changes will be implemented within the business operations and management of the company.

Leading
The third management function is leading. The following major steps are taken by the Coca Cola Company in the leading function:
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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 companys 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. 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
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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 employees behavior.

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

Sales Persons Reporting System

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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.

Financial controls

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting defined under the Securities Exchange Act of 1934 ("Exchange Act"). Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2009. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
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Commission (COSO) in Internal Control Integrated Framework. Based on this assessment, management believes that the Company maintained effective internal control over financial reporting.

How Information System has Helped Coca Cola

Coca-Cola is the world's largest beverage company. They sell their products in almost 200 countries all over the world. Due to its size, monitoring the finances and logistics of their global enterprise is crucial and having the right kind of information system can mean the difference between success and failure. They started out with an old system called the legacy system. This turned out to be very inefficient, it was not user friendly and a lot of costs were incurred because of these problems. They also did their financial plans manually on spreadsheets and were submitted as hard copies. This made it very difficult to update information and was a very big issue as they began to expand globally. As they were growing an integrated business management system was needed to handle the different aspects of their worldwide corporation. They decided to incorporate Strategic Enterprise Management (SEM). This provided them with business planning for finances, data warehousing for information collection and data analysis, and can also generate financial reports and monthly sales forecasts. This information system is now fully implemented in the company and all the data it collects provides baseline information so that Coca-Cola can track the financial health and growth of the company.

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Different types of information systems are needed for different companies. Each company has individual needs and requirements and finding the right information system to suit your company is crucial to succeed and compete in a market.

Entrepreneurship in Coca Cola


ATLANTA Coca-Cola recently hosted a special sendoff at its global headquarters for 93 young entrepreneurial college students from the Middle East, North Africa and Near Asia who completed a month-long learning and development program in the U.S.

In 2012, Coca-Cola and the U.S Department of State partnered with the Kelley School of Business at Indiana University to support and empower the next generation of business and social entrepreneurs across the Middle East and North Africa (MENA) region. Now in its second year, the Coca-Cola MENA Scholarship Program provides college students with valuable business knowledge, lasting relationships and fuels their passion to make a difference.

The program recently expanded its reach to eight countries bringing together Afghan, Algerian, Egyptian, Jordanian, Moroccan, Pakistani, Palestinian and Tunisian students. They were selected from more than 7,000 applicants who submitted ideas about how to Make Tomorrow Better in their respective communities by either creating a new business or launching a new community initiative to meet local needs. The ideas were posted on each markets Coca-ColaFacebook page, where the public voted for their favorite concepts.

During the program, the students gained a broad understanding of American business practices through an accelerated, four-week curriculum at the Kelley School of Business. They worked in teams to develop business plans and presented their ideas first to a group of venture
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capital leaders in Indiana, then at the State Department before heading to their final destination: Atlanta.

Ethical Dilemma
Coca-Cola is the largest soda provider in the world. Although it is widely consumed, many people are unaware of its labor violations.

The company has come under fire in the last few months for the way in which its workers are treated in Guatemala. The primary source of all the violence is the workers union. On February 25, 2010, Coke was sued by those Guatemalan laborers, who claim that they, endured a campaign of violence from the people who worked for the bottling or processing plants owned by Coke (Business Week).

This violence took place in Guatemala City. The perpetrators were employed by Incasa, which operated the bottling plant (Business Week). One of the plaintiffs is Jose Palacios, who faced violence after rejoining the workers union in 2004. Not only was he shot at and threatened at the bottling plant, but armed men broke into his home and threatened his family (Atlanta Business News). A few weeks after this invasion, in 2005, he was fired without a cause (North American Congress on Latin America).

Another plaintiff in the case is Jose Chavez, a prominent union leader. In 2008, after he participated in collective-bargaining activities in Guatemala City, returned home to his waiting family. Upon his arrival, Chavezs son and nephew were brutally murdered in front of his eyes
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and his 16 year old daughter was gang-raped (North American Congress on Latin America). This violence was a response to his activity in the union.

Critical Issues/Problems:

Solid waste and water issue: The communities near the bottling plant in India complained about the passage of sludge as fertilizer, causing health and environmental damage. The most important issue concerning these communities is the depletion of water levels caused by the Coca-Cola bottling operations which have drastically reduced availability of water for irrigation purposes.

Pesticides in soft drinks: The other issue concerning human health caused by Coca-Cola is that their bottled water and soft drinks contain pesticides which were tested by the reputed NGO, CSE.

Dual product standards: Coca-Cola is accused of having dual standards in terms of their products and safety measures concerning human health with respect to USA, Europe and India.

Community issue: These allegations affected Coca-Cola largely with its sales and also caused the closure of one of their bottling plants in Kerala, India. Additionally, Coca-Colas products are banned in the state of Kerala, India.
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Employee Empowerment

Giving employees the permission and ability to make decisions and act autonomously for the good of the company. Coca Cola is currently focusing on the empowerment of employees specially women. That's why Coke has pledged $500,000 to empower women and girls. Empowering brings motivation and motivated employees bring the engine that drives the company's growth.

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References
1- For God, country and Coca Cola 2- Inside Coca Cola 3- The Coke Machine 4- The Story Of Coca Cola 5- Interview of an employee "Ahmad Rao" 6- http://www.coca-colacompany.com/our-company/mission-vision-values 7- http://www.unc.edu/~jdee/adplan.html 8- http://www.cocacolafemsa.com/femsa/web/conteudo_en.asp?idioma=1&conta=44&tipo=27617 9- http://businesscasestudies.co.uk/coca-cola-great-britain/creating-an-effective-organisationalstructure/a-global-and-local-strategy.html#axzz2dYNt1HV8 10- http://www.studymode.com/subjects/coca-cola-decision-making-process-page1.html 11- http://www.wikinvest.com/stock/CocaCola_Bottling_Co._Consolidated_(COKE)/Internal_Control_Over_Financial_Reporting 12- http://www.wikinvest.com/stock/CocaCola_Company_(KO)/Managements_Report_Internal_Control_Over_Financial_Reporting 13- http://imaginecorporation.blogspot.com/2009/08/ethical-issues-concerning-coca-cola-in.html
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14- http://ethicalfootprint.wordpress.com/2010/04/28/unethical-companies-coca-cola/

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