You are on page 1of 38

The Report

On
Assisting Customer Based Brand Quality in
Analysis on Coca Cola

Supervised By
Md. Ahasan Uddin
Assistant Professor
Department of Business Administration
Dhaka International University

Prepared By
Md. Ruhul Amin
Program: RMBA
Roll No: 25
Reg. No: BS-M1-37B-16-103664
Batch: 37B
Major: Marketing
Department of Business Administration
Dhaka International University

Dhaka International University


Submitted Date: 27th October, 2017

1
Letter of Transmittal

To
Md. Ahasan Uddin
Assistant Professor
Department of Business Administration
Dhaka International University

Subject: Submission of Internship Report.

Dear Sir,
With due respect and humble submission to state that I am submitting my Internship
Report on Assisting Customer Based Brand Quality in Analysis on Coca Cola for
your kind consideration as a part of requirement in completing my RMBA program .
This project paper contains a lot of information about Customer Satisfaction .

I would like to express my heartiest gratitude for your kind cooperation and guidance
in making this project paper informative and time oriented . There may have some
unintentional mistakes and lapses . You are requested to consider those as excuses .

Sincerely Yours ,

………………………….
Md. Ruhul Amin
Program: RMBA
Roll No: 25
Reg. No: BS-M1-37B-16-103664
Batch: 37B
Major: Marketing
Department of Business Administration
Dhaka International University

Supervisor’s Declaration
2
This is to certify that the Internship Report on Assisting Customer
Based Brand Quality in Analysis on Coca Cola by direct
supervision in partial additional work of the RMBA.
So far I know, she has prepared this term paper by herself and is not copied or
borrowed from anywhere without proper acknowledgement.

I wish him every success in life.

Supervisor

Md. Ahasan Uddin


Assistant Professor
Department of Business Administration
Dhaka International University

3
ACKNOWLEDGEMENT

At the very beginning we would like to express our deepest gratitude to


almighty Allah for giving us the strength and the composure to finish the
task within the schedule time.

Then my sincere thanks go to honorable course Md. Ahasan Uddin for


providing me with the opportunity to observe & analyze such an
interesting topic & moreover for this invaluable giddiness suggestions &
advice whenever needed. I would like to express our gratitude all the
group members.
At last our thanks goes to the various personnel we had contacted to have
their invaluable & timely cooperation all others who helped me towards
completion of this report.

I am included the all of web addresses which are helped us to completing


this report.

4
Executive Summary

This report is aimed at finding out the management functions of the Coca-Cola
Company internationally. Coca cola is a multinational company and running their
business successfully. Coca Cola being the multinational and reputed organization
apply all the good traits of planning, organizing, leading and controlling from top
to bottom. The first stage of international planning is to decide how to do business
globally and international businesses must be organized so that they can adapt to
cultural and environmental differences. Then geographic dispersion and distance,
language barriers, and legal restrictions complicate the controlling function. And
last one is leading where manager lead all the operations. For every multinational
company like as the Coca-Cola Company SWOT analysis is also very important to
operate all the management functions.

5
TABLE OF CONTENTS
Title of the report Page No

Acknowledgement
Letter of Transmittal
Executive Summary
1. Introduction 08-10
1.1 History
1.2 Products
2. Planning 11-15
2.1 Environment
2.1.1 General Environment
2.1.2 Task Environment
2.2 General Corporate Objectives
2.3 Decision Making
3. Organizing 16-21
3.1 Departmentalization
3.2 Work Specialization
3.3 Authority and responsibility
3.4 Delegation and Accountability
3.5 Span of control
3.6 Resource Allocation
3.7 Organizing the Human Resources
3.8 Training
4. Leading 22-24
4.1 Leadership style
4.2 Motivation
4.3 Communication
4.4 Corporate Culture
5. Controlling 25-26
5.1 Sales Person’s reporting system
5.2 Sales Person’s Evaluation System
6. SWOT Analysis 27-34

6
6.1 Strengths
6.2 Weakness
6.3 Opportunities
6.4 Threats
7. Analysis 35
8. Recommendation 36
9. Conclusion 37
10. Bibliography 38

7
1. INTRODUCTION

The Coca-Cola Company is a beverage company, manufacturer, distributor, and


marketer of non-alcoholic beverage concentrates and syrups. The company is
best known for its flagship product Coca-Cola, invented by pharmacist John
Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in
1889 by As a Candler who incorporated The Coca-Cola Company in 1892.
Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more
than 400 brands in over 200 countries or territories and serves 1.6 billion
servings each day. The company operates a franchised distribution system
dating from 1889 where The Coca-Cola Company only produces syrup
concentrate which is then sold to various bottlers throughout the world who
hold an exclusive territory. The Coca-Cola Company is headquartered in
Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA, S&P 500
Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its
current chairman and CEO is Muhtar Kent.

1.1 HISTORY

The Coca-Cola Company was originally established in 1891 as the J. S.


Pemberton Medicine Company, a co-partnership between Dr. John Stith
Pemberton and Ed Holland. The company was formed to sell three main
products: Pemberton's French Wine Cola (later known as Coca-Cola),
Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough
Syrup. In 1884, the company became a stock company and the name was
changed to Pemberton Chemical Company. The new president was D. D. Doe
while Ed Holland became the new Vice-President. Pemberton stayed on as the
superintendent. The company's factory was located at No. 107, Marietta St.

8
Three years later, the company was again changed to Pemberton Medicine
Company, another co-partnership, this time between Pemberton, A. O.
Murphy, E. H. Blood worth, and J. C. Mayfield. Finally in October 1888, the
company received a charter with an authorized capital of $50,000. The
charter became official on January 15, 1889. By this time, the company had
expanded its offerings to include Pemberton's Orange and Lemon Elixir.
1.2 PRODUCTS

The Coca-Cola Company offers nearly 400 brands in over 200 countries,
besides its namesake Coca-Cola beverage. Tab was Coca-Cola's first attempt to
develop a diet soft drink, using saccharin as a sugar substitute. Introduced in
1963, the product is still sold today, however its sales have dwindled since the
introduction of Diet Coke. The Coca-Cola Company also produces a number of
other soft drinks including Fanta and Sprite. Fanta's origins date back to
World War II when Max Keith, who managed Coca-Cola's operations in
Germany during the war, wanted to make money from Nazi Germany but did
not want the negative publicity. Keith resorted to producing a different soft
drink, Fanta, which proved to be a hit, and when Coke took over again after
the war, it adopted the Fanta brand as well. The German Fanta Klare Zitrone
("Clear Lemon Fanta") variety became Sprite, another of the company's
bestsellers and its response to 7 Up.

During the 1990s, the company responded to the growing consumer interest
in healthy beverages by introducing several new non-carbonated beverage
brands. These included Minute Maid Juices to Go, PowerAde sports beverage,
flavored tea Nestea (in a joint venture with Nestle), Fruitopia fruit drink and
Dasani water, among others. In2001, Minute Maid division launched the
Simply Orange brand of juices including orange juice.

THE SLOGAN: “ALWAYS COCA COLA”

9
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)

AN OVERVIEW:

Strategic planning, formulation and implementation are core management


functions. Although

strategic management has been in existence for only a few years its
implications have been firmly and strongly rooted in organizations that want
to stand in good stead. Among all the varied things that managers have to deal
with and act upon, few affect an organization’s performance more lastingly
than do the task of charting an organization’s future course, figuring out the
what strategic moves and approaches to undertake, and then orchestrating
execution of the chosen strategy as close to perfection
as is managerially possible. One of the biggest factors in determining whether
the organization performs up to its potential or not is the extent to which the
management team performs, the strategy making and strategic implementing
functions indeed,

“Good strategy and good implementation are the most trustworthy Proof of good
marketing”

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.

10
2.1 ENVIRONMENT

The environmental factors affecting Coca Cola can be divided into:

2.1.1 THE GENERAL ENVIRONMENT:

The Coca Cola Beverages has a very strong potential in the future as
population is increasing and there is a shift in the consumer perception of its
conservatism and the stigma, which was attached to it as an American
product, is losing its effect. Increase in the level of inflation is a major concern
for the company as the purchasing power of the people is eroding day by day.
As there is an increase in the dual career families and women
has started working in the offices with a great
enthusiasm so it can be a capitalizing point for the company. The legal/politic
al environment does have much effect on this company. As there has been a
continuous change in the governments and the policies related to the duties
and taxation so it is relatively less immune to changes in this sectors of the
environment.

2.1.2 THE TASK ENVIRONMENT:

As Coca Cola has acquired more plants in the country from their franchisees
so it will increase their share as they are having more professional people in
their management. The consumers of CCL are people from all the cultures and
all the level of incomes. It is a company who is distributing its products to the
masses. Apart from this they have some exclusive customers who are
categorized as industrial customers these are: KFC, PIA, Pearl Continental,
Sheraton, etc. With the acquisition of the new plants they have hired MBAs
just to increase the level of professionalism. Their major competitors are
Pepsi, RC cola, and some local products, which are manufactured in the
cottages. Apart from these they consider all the thirst quenching products as

11
their indirect competitors like Nestle, Haleeb, Milo etc. As for as suppliers are
concerned they import their raw materials from the parent company.

2.2 THE CORPORATE OBJECTIVES

The world is changing all around it. To continue to thrive as a business over
the next ten years and beyond, they must look ahead, understand the trends
and forces that will shape their business in the future and move swiftly to
prepare for what's to come. They must get ready for tomorrow today. That's
what their 2020 Vision is all about. It creates a long-term destination for their
business and provides it with a "Roadmap" for winning together with their
bottling partners.

Mission

Their Roadmap starts with their mission, which is enduring. It declares their
purpose as a company and serves as the standard against which they weigh
their actions and decisions.

 To refresh the world


 To inspire moments of optimism and happiness
 To create value and make a difference.

Vision

Their vision serves as the framework for their Roadmap and guides every
aspect of their business by describing what they 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 people's desires and needs.

12
 Partners: Nurture a winning network of customers and suppliers,
together they 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 their overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

Winning Culture

Their Winning Culture defines the attitudes and behaviors that will be
required of us to make their 2020 Vision a reality.

Live Their Values

Their values serve as a compass for their actions and describe how they
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, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as their brands.
 Quality: What they do, they do well

Focus on the Market

 Focus on needs of their 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.
 Be insatiably curious.

13
Work Smart

 Act with urgency.


 Remain responsive to change.
 Have the courage to change course when needed.
 Remain constructively discontent.
 Work efficiently.

Be the Brand

Inspire creativity, passion, optimism and fun.

2.3 DECISION-MAKING

“Competing in the market place is like a war. You have Injuries and casualties, and the best
strategy win” (John Collins)

The decision-making process in CCL is centralized. The model used


is classical, whereby the top management takes their time while making
decisions and explore and evaluate all the possible alternatives before
choosing the rationally economic and feasible solution.

Programmed decisions are made only by the top management with no


consultation what so ever with the line managers while the daily and routine
decisions are made by the line managers at the middle level with the prior
permission or approval from the general manager.

Decisions, which are normally taken at the top management, are related to

 The package positioning.


 Trade discounts.
 Advertisements.

14
 Price reductions.
 Distribution

While recruiting new employees, the top management approves the vacancies
and asks the Human Capital Department to conduct the written test and this
test normally is conducted for the employees at the lower level. Then
prospective applicants are shortlisted through the interview
process. Then the Business and operations manager or general manager
personally interviews the employees and then makes the final decision about
the selection himself.

Hence, the style of decision-making followed by the CCL model is AII. That is,
the decisions are made on the basis of the inputs provided by the lower level
employees and the managers at the
middle management level. Top management asks for the suggestions and
ideas of his subordinates and then takes the final decision himself. However,
the remaining decisions, which are mainly related to the daily operations, are
made by the respective managers who are eventually made responsible
for the results.

The management is very much cooperative and encourage its employees to


come up with new ideas related to their duties and the work they do so as to
increase the overall efficiency of the organization and eventually increasing
the profits.

15
3. ORGANIZING

Analysis of the organization’s structure

3.1 DEPARTMENTALIZATION:

CCL is divided into different departments on the basis of functional approach.


People are grouped together on the basis of common skills and work
activities. This approach helps company in achieving the economies of scale
through high quality of problem solving and lesser needs of the training of the
employees.

CCL is headed by the General Manager. There are five departments at CCL
namely, Production, Industrial Relations, Sales and Marketing, Human Capital,
and Finance and Accounting.

•Production Department is responsible for the overall production of the CCL.


There are many plants of CCL operating throughout the world. 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.

16
•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:

The work specialization is high, as each Manager is made responsible for only
a particular function, which is his expertise. There is no boredom or
monotony as each salesman is meeting the different
sort of person and the work is challenging and promotions are based on
performance there is no monotony and boredom.

3.3 AUTHORITY AND RESPONSIBILITY:

The salesman has to report to the sales manager. These sales managers are
responsible for the performance of the sales man and they are required to
provide them timely feedback. They are also required to provide the guidance
at any time and related to the issues related to the performance of the
employees. These salesmen are monitored on an on-going basis by their
manager, which serves as an effective control mechanism.

17
The employees have a lot of authority, responsibility and information relative
to the work that they are doing. However, all the information and authority
relative to the work is provided by their respective managers. The procedure
is same in the other departments as well.

3.4 DELEGATION AND ACCOUNTABILITY:

There is a high degree of delegation and delegation is done with proper


authority and
responsibility. Each manager is also made accountable for the actions of his
subordinates. Proper instructions and guidance is given at time to time to
achieve the objectives by the respective managers.

Apart from the delegating every manager is responsible for motivating his
juniors so as to increase the effectiveness and efficiency of the employees.
Human Capital department also helps employees realize their potential and
motivate them through different methods. They make sure that they give the
best in return to their managers. This increases their performance, the quality
of their work, and customer satisfaction.

3.5 SPAN OF CONTROL:

The span of control is lower employees reporting to their managers. This low
structure is due to the fact that organization is a vertical and different people
have different works to do so. It is also difficult to control more people and
still manage the resources and people in an effective manner.

18
3.6 RESOURCE ALLOCATION:

As far as resource allocation is concerned, the managers of each department


have the authority to utilize the organizational resources whenever needed
for the functions of his department. They have to get the approval from the
other managers if these assets belong to other managers. These resources
may be capital, human or any other available.

3.7: ORGANISING THE HUMAN RESOURCES:

Recruitment is normally done on the required positions and not on the


standby basis. Recruitment starts whenever a supervisor or sales manager
needs a salesperson and it is

first approved by the general manager before sending it to the human resourc
es department.

All the vacancies are first internally advertised so that all the employees who
fulfill the requirements can avail this opportunity. If there aren’t any suitable
persons for a particular job then human resource department search its data
bank and if there is no suitable person then at last it is advertised in the
newspaper but it is rarely the case at coca Cola for the sales man. Selection is
based on different criterion for different positions. Education requirements
are the first and the
most important and are the first part of the screening of the personnel.

After the screening stage, applicant is called for the aptitude test. For a
salesman job simple arithmetic and general
knowledge is tested. Know how of English is also necessary in some cases.

19
After passing the aptitude test applicant is asked to appear for an interview.
This interview is normally carried out by the sales and human resource
department. Purpose of this interview is to confirm the data and claims,
which the applicant has produced and made.

If the applicant is selected, he is asked for four sureties or any other


references, which he can make and sometimes, human resource department
also like to confirm from their Ex-Employers about the conduct and the
reason for leaving of the applicant.

3.8 TRAINING:

At Coca cola on the job training is given the utmost importance. At first a sales
man is given information about the product, sales environment and company
policies and procedures. Ethical behavior is emphasized most so as not to
create any sort of bad habits which can cause great problems for the company.
Normally a new sales man is supposed to work under another salesman to
learn the basics of selling techniques and the overall environment in which he
will be working.

A salesman is then allowed to work under the salesman but he is asked to


perform all the operations by his own. These include filling out the route card,
dealing with the customers, communicating with to loader, cash management,
setting the visa cooler and the next days order to be loaded. After doing this
entire if has any problems in learning then he is guided by salesman, market
developer, and sales manager if required.

Apart from this on the job training, the company also has some in-house
training facilities. The company has a sales hall in which all the sales
personnel are given some tips regarding the changes in the selling

20
environment and how to improve efficiency and efficacy. These tips are
normally given by the general manager.

Coca Cola also arranges some type of seminars, work shops and modules
related to
the sales management, Forecasting of the daily sales, merchandising, selling s
kills, supervisory techniques and other areas related to the sales.

Coca Cola does not have any library and special trainers but they do have the
separate space for the training and they also use some sort of videos to
elaborate and show the examples of effective selling skills and techniques.

To maintain the professional employees company has a policy of promotion


from within. Promotions are based on the performance, which is measured
very objectively. Apart from this the company pays its employees more than
the industry wages. Not only the wages and salary but different other benefits
are also given to employees to motivate and retain them in the organization.
The company also has an effective incentive plan.

21
4. LEADING

4.1 LEADERSHIP STYLE:

The general manager of the company is at the topmost position in the


organizational hierarchy; Even though he is not directly involved in its
operations he is responsible for taking major administrative decisions
regarding the company policy and Operations. Departmental managers
are responsible for leading and directing their subordinates. These leaders
focus on these areas:

 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.

As there is a very high degree of delegation and participation so they believe


that the leadership style used in all the departments of CCL is democratic. The
concept of team management is only practiced in the sales and marketing
department as they have to work in dependence of one another. Subordinates
are given a fair treatment and are dealt in a very good manner so as to give
them a feeling that you are not only an employee but also a member of the
family.

The managers at CCL are very supportive as they use teams and treat
subordinates as equals, and have a highly open communication system. They
are participative since they encourage the involvement of the employees in
decision-making and make use of group discussions. However, some
monetary and non-monetary rewards are used to create a high involvement
from the employees especially at the lower level.

22
4.2 MOTIVATION:

Employee motivation is given a very high consideration at CCL. At CCL they


have the policy of promotion from within policy. Promotions are bestowed
on the performance basis. This
performance base motivates employees to work hard and achieve the goals,
which are very objective and are perceived achievable by most of the
employees.

Apart from this compensation plan is also a motivating factor as CCL is paying
more than the industry averages. Not only this different campaigns and
competitions between the employees itself are also used to motivate the
employees.

Managers play a vital role in motivating employees as they give them the
timely feedback about their activities. They also help them solve different
problems, which can be job related or personal problems. Working
environment and a challenging milestone are a major factor in employee
motivation at CCL.

4.3 COMMUNICATION:

There is open environment in CCL, which discourages barriers among the


members sharing information. The top management consults lower ranks
before deciding on the policy matters and
then these things are communicated downwards. Every employee is allowed
to see the general manager at any time if he has any problem.
Inter departmental communication is done through formal and informal
manners. Grapevine is also used to get the feedback about the employees’
views about the management.

23
4.4 CORPORATE CULTURE:

The Top management at coca cola also tries to emphasize to follow the
prescribed culture of the
organization. CCL has formal and documented values that are communicated
to all the employees. To ensure proper application of the rules and behaviors
of the values, the top management act as role models, and closely
administer and review their employee’s behaviors.

24
5. CONTROLLING

Control is done through the evaluation, which is based on the very objective
basis. Certain criteria are fixed in advance and if these criteria are not met
then the employees are asked and evaluated for the reasons and corrective
actions are taken by the respective managers. Different departments
have different criteria and different reporting and controlling systems. The
reporting, evaluation and control system of sales departments is follows:

5.1 Sales Person’s reporting system:

Every sales person directly reports to market developer of his area. A sales
person is supposed to give him a daily report of his activities and he is free to
ask for any kind of assistance from the market developer.

Every salesperson is given an attendance punch card, which records his


arrival and departure time. He is also given a route call card, which he is
supposed to fill out. This card includes all the details about the visits of the
outlets, time spent on these outlets, ales made on these outlets, time spent on
these outlets, sales made on these outlets, time during traveling, names of the
loaders and salesperson’s time in and time out of the vehicle.

Apart from this a sales person is also given a form to fill up for the next days
order to be loaded in the truck. This basically tells about the total sales of the
salesman according to the brand and the size of the product. This basically is
used by the human resources department to evaluate the performance and
calculating the total salary of the salesman.

25
5.2 Sales Person’s Evaluation System:

Every salesperson’s evaluation is done on quarterly basis. Evaluation helps


the company to promote the people to the higher levels of the organization.
This evaluation also motivates salespeople to work hard and get the
promotion or at least the monetary rewards, which are given not only to the
best salesman but the best market developer and the best sales manager of
the year.

Performance is evaluated on the basis of performance development plan.


Performance is measured on the basis of achievement of the targets, which
are set and communicated at the very beginning of the year to each sales
manager, each quarter to every market developer and every month to each
salesperson. This performance development plan evaluates the sales people
on the basis of call slips, Route call, Call completion, Effective and
productive call, attendance, growth in sales, market development and the
punctuality of the salesman.

26
6. “SWOT” ANALYSIS

The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor


and marketer of Non-alcoholic beverage concentrates and syrups, in the
world. Coca-Cola has a strong brand name and brand portfolio. Business-
Week and Inter brand, a branding consultancy, recognize Coca-Cola as one of
the leading brands in their top 100 global brands ranking in 2006. The
Business Week-Interbred valued Coca-Cola at $67,000 million in 2006. Coca-
Cola ranks well ahead of its close competitor Pepsi which has a ranking of
22 having a brand value of $12,690million The Company’s strong brand value
facilitates customer recall and allows Coca-Cola to penetrate markets.
However, the company is threatened by intense competition which could have
an adverse impact on the company’s market share.

FIGURE: SUMMERY OF SOWT ANALYSIS OF COCA COLA LIMILED

27
I. STRENGTHS
 World’s leading brand-

Coca-Cola has strong brand recognition across the globe. The company has a
leading brand value and a strong brand portfolio. Business-Week and Inter
brand, a branding consultancy, recognize. Coca-Cola as one of the leading
brands in their top 100 global brands ranking in2006.The Business Week-
Inter brand valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well
ahead of its close competitor Pepsi which has a ranking of 22 having a brand
value of $12,690 million Furthermore; Coca-Cola owns a large portfolio
of product brands. The company owns four of the top five soft drink brands in
the world: Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the
company to introduce brand extensions such as Vanilla Coke, Cherry Coke and
Coke with Lemon. Over the years, the company has made large investments in
brand promotions. Consequently, Coca-cola is one of the best
recognized global brands. The company’s strong brand value facilitates
customer recall and allows Coca-Cola to penetrate new markets and
consolidate existing ones.

 Large scale of operations-

With revenues in excess of $24 billion Coca-Cola has a large scale of operation.
Coca-Cola is the largest manufacturer, distributor and marketer
of nonalcoholic beverage concentrates and syrups in the world. Coco-Cola is
selling trademarked beverage products since the year 1886 in the US. The
company currently sells its products in more than 200 countries. Of the
approximately 52billion beverage servings of all types consumed worldwide
every day, beverages bearing trademarks owned by or licensed to Coca-Cola
account for more than 1.4 billion. The company’s operations are supported
by a strong infrastructure across the world. Coca-Cola owns
and operates 32 principal beverage concentrates and/or syrup manufacturing
plants located throughout the world. In addition, it owns or has interest in 37
28
operations with 95 principal beverage bottling and canning plants located
outside the US. The company also owns bottled water production and
still beverage facilities as well as a facility that manufactures juice
concentrates. The company’s large scale of operation allows it to feed
upcoming markets with relative ease and enhances its revenue generation
capacity.

 Robust revenue growth in three segments

Coca-cola’s revenues recorded a double digit growth, in three operating


segments. These three segments are Latin America, ‘East, South Asia,
and Pacific Rim’ and Bottling investments. Revenues from Latin America grew
by 20.4% during fiscal 2006, over 2005. During the same period, revenues
from ‘East, South Asia, and Pacific Rim’ grew by 10.6% while revenues
from the bottling investments segment by 19.9%. Together, the three
segments of Latin America, ‘East, South Asia, and Pacific Rim’ and bottling
investments, accounted for 34.8% of total revenues during fiscal 2006. Robust
revenues growth rates in these segments contributed to top-line growth for
Coca-Cola during 2006.

II. Weaknesses
 Negative publicity

The company received negative publicity in India during September


2006.The Company was
accused by the Center for Science and Environment (CSE) of selling products c
ontaining pesticide residues. Coca-Cola products sold in and around the
Indian national capital region contained a hazardous pesticide residue.
These pesticides included chemicals which could cause cancers, damage the

29
nervous and reproductive systems and reduce bone mineral density. Such
negative publicity could adversely impact the company’s brand image and the
demand for Coca-Cola products. This could also have an adverse impact on
the company’s growth prospects in the international markets.

 Sluggish performance in North America

Coca-Cola’s performance in North America was far from robust. North


America is Coca-Cola’s core market generating about 30% of total revenues
during fiscal 2006. Therefore, a strong performance in North America is
important for the company.

In North America the sale of unit cases did not record any growth. Unit case
retail volume in North America decreased 1% primarily due to weak
sparkling beverage trends in the second half of 2006 and decline in
the warehouse-delivered water and juice businesses. Moreover, the company
also expects performance in North America to be weak during 2007.Sluggish
performance in North America could impact the company’s future growth
prospects and prevent Coca-Cola from recording a more robust top-line
growth.

 Decline in cash from operating activities

The company’s cash flow from operating activities declined during fiscal
2006. Cash flows from operating activities decreased 7% in 2006 compared to
2005. Net cash provided by operating activities reached $5,957 million in
2006, from $6,423 million in 2005. Coca-Cola’s cash flows from operating
activities in 2006 also decreased compared with 2005 as a result of a
contribution of approximately $216 million to a tax-qualified trust to fund
retiree medical benefits. The decrease was also the result of certain marketing
accruals recorded in 2005.Decline in cash from operating activities reduces
availability of funds for the company’s investing and financing activities,

30
which, in turn, increases the company’s exposure to debt markets and
fluctuating interest rates.

III. Opportunities

 Acquisitions

For the last one year, Coca-Cola has been aggressively adopting the inorganic
growth path.
During 2006, its acquisitions included Kerry Beverages, (KBL), which was sub
sequently, reappointed Coca-Cola China Industries (CCLIL). Coca-Cola
acquired a controlling shareholding in KBL, its bottling joint venture with the
Kerry Group, in Hong Kong. The acquisition extended Coca-Cola’s control over
manufacturing and distribution joint ventures in nine Chinese provinces. In
Germany the company acquired Apollinaire which sells sparkling and still
mineral water in Germany. Coca-Cola has also acquired a 100% interest in TJC
Holdings, a bottling company in South Africa. Coca-Cola also made
acquisitions in Australia and New Zealand during 2006.These acquisitions
strengthened Coca-Cola’s international operations. These also give Coca-Cola
an opportunity for growth, through new product launch or greater
penetration of existing markets. Stronger international operations increase
the company’s capacity to penetrate international markets and also gives it an
opportunity to diversity its revenue stream.

 Growing bottled water market

Bottled water is one of the fastest-growing segments in the world’s food and
beverage market owing to increasing health concerns. The market for bottled
water in the US generated revenues of about $15.6 billion in 2006. Market
consumption volumes were estimated to be 30 billion liters in 2006. The
market's consumption volume is expected to rise to 38.6 billion units by the

31
end of 2010. This represents a CAGR of 6.9% during 2005-2010. In terms of
value, the bottled water market is forecast to reach $19.3 billion by the end of
2010. In the bottled water market, the revenue of flavored water (water-
based, slightly sweetened refreshment drink) segment is growing by
about $10 billion annually. The company’s Dasani brand water is the third
best-selling bottled water in the US. Coca-Cola could leverage its strong
position in the bottled water segment to take advantage of growing demand
for flavored water.

 Growing Hispanic population in US

Hispanics are growing rapidly both in number and economic power. As a


result, they have
become more important to marketers than ever before. In 2006, about 11.6
million US households were estimated to be Hispanic. This translates into a
Hispanic population of about 42million. The US Census estimates that by
2020, the Hispanic population will reach 60 million or almost 18% of the total
US population. The economic influence of Hispanics is growing even
faster than their population. Nielsen Media Research estimates that the buyin
g power of Hispanics will exceed $1 trillion by 2008- a 55% increase over
2003 levels. Coca-Cola has extensive operations and an extensive product
portfolio in the US. The company can benefit from an
expanding Hispanic population in the US, which would translate into higher
consumption of Coca-Cola products and higher revenues for the company.

IV. Threats

Intense competition Coca-Cola competes in the nonalcoholic beverages segme


nt of the commercial beverages industry. The company faces intense
competition in various markets from
regional as well as global players. Also, the company faces competition from v

32
arious nonalcoholic sparkling beverages including juices and nectars and fruit
drinks. In many of the countries in which Coca-Cola operates, including the
US, PepsiCo is one of the company’s primary competitors. Other significant
competitors include Nestle, Cadbury Schweppes, Groupe
DANONE and Kraft Foods. Competitive factors impacting the company’s
business include pricing, advertising, sales promotion programs, product
innovation, and brand and trademark
development and protection. Intense competition could impact Coca-
Cola’s market share and revenue growth rates.

 Dependence on bottling partners

Coca-Cola generates most of its revenues by selling concentrates and syrups


to bottlers in whom it doesn’t have any ownership interest or in which it has
no controlling ownership interest. In2006, approximately 83% of its
worldwide unit case volumes were produced and distributed by bottling
partners in which the company did not have any controlling interests. As
independent companies, its bottling partners, some of whom are publicly
traded companies, make their own business decisions that may not always
be in line with the company’s interests. In addition, many of its
bottling partners have the right to manufacture or distribute their own
products or certain products of other beverage companies. If Coca-Cola is
unable to provide an appropriate mix of incentives to its bottling partners,
then the partners may take actions that, while maximizing their own short-
term profits, may be detrimental to Coca-Cola. These bottlers may devote
more resources to business opportunities or products other than those
beneficial for Coca-Cola. Such actions could, in the long run, have an adverse
effect on Coca-Cola’s profitability. In addition, loss of one or more of its major
customers by anyone of its major bottling partners could indirectly affect
Coca-Cola’s business results. Such

33
dependence on third parties is a weak link in Coca-Cola’s operations and incre
ases the company’s business risks.

 Sluggish growth of carbonated beverages

US consumers have started to look for


greater variety in their drinks and are becoming increasingly health conscious.
This has led to a decrease in the consumption of carbonated and other sweetened
beverages in the US. The US carbonated soft drinks market generated total
revenues of $63.9 billion in 2005, this representing a compound annual growth
rate (CAGR) of only 0.2% for the five-year period spanning 2001-
2005. The performance of the market is forecast to decelerate, with an
anticipated compound annual rate of change (CAGR) of -0.3% for the five-year
period 2005-2010 expected to drive the market to a value of $62.9 billion by the
end of 2010.Moreover in the recent years, beverage companies such as Coca-Cola
have been criticized for selling carbonated beverages with high amounts of sugar
and unacceptable levels of dangerous chemical content, and have been
implicated for facilitating poor diet and increasing childhood
obesity. Moreover, the US is the company’s core market. Coca-
Cola already expects its performance in the region to be sluggish during 2007.
Coca-Cola’s revenues could be adversely affected by a slowdown in the US
carbonated beverage market.

34
7. ANALYSIS
Coca Cola being the multinational and reputed organization apply all the good
traits of planning, organizing, leading and controlling from top to bottom.

When they look at the planning procedure of the Coca Cola it runs very
smoothly in every department. There is very well integrated effort of all the
department of the organization to organize and control an individual for a
particular task.

It’s forecasting planning system according to the company requirements in


which each department has to justify the employees it required in the Annual
Business Plan of the year.

The Head Office of the organization has complete check on the every function
of the organization.

Taking about organizing and controlling all the work done by their respective
departments as the company is divided in different departments planning
starts (strategic planning) from top authority and afterwards organizing and
leading and controlling is done as per the requirements of each and every
department.

35
8. RECOMMENDATION
Coca cola is a multinational company and running their business successfully.
Americans took over the organization in 2000. They introduced many
advantageous programs to the employees which were very lucrative such as
life insurance, health and safety insurance and many other reward-giving
policies. But there are some draw backs in the reorganization, these are
Coca cola does not use advertisement media extensively as most of the jobs
are filled by referrals and unsolicited applications files. Unsolicited
applications files are good approach but most of the people do not know
about such methods.

Coca cola does not hire fresh graduates at middle level management; this
creates bad image of the organization. They should hire fresh graduates as it
may give them new and fresh ideas.

To some extend they include the lower management staff in decision mailing
so they should be De-centralized structures of planning to some extend.

They should be proper communication cycle from top to bottom employees so


they should be no chance of miscommunication. And at the end they should
be proper motivational practices should be implementing to increase the
moral of employees so they work more efficiently.

36
9. CONCLUSION
This report gives complete briefing about all the planning process carried out
in an organization when planning is completed how to carry out all the phase
of organizing different tasks in different departments according to the
requirements. This report gives complete information about the working of
coca cola in market a complete overview of planning, organizing, controlling,
leading with its strengths, weakness, opportunities and threats.

37
10. BIBLIOGRAPHY

o Annual Report, Coca-Cola Company 2009


o Annual Report, Coca-Cola Company 2010
o http://www.coca-cola.com/en/index.html
o http://www.coca-cola.com/index.jsp
o http://www.thecoca-colacompany.com
o http://en.wikipedia.org/wiki/Coca-Cola
o http://www.oppapers.com/subjects/management-function-of-coca-cola-
page1.html
o http://www.scribd.com/doc/28547856/Coca-Cola
o http://www.bookrags.com/essay-2005/8/16/134242/800

38