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COMPUTER COMMUNICATION DEVELOPMENT INSTITUTE

Sorsogon Campus

Research Paper
about

Submitted to:
Mr. Tito D. Fortes, CESO V

Submitted by:
Leader: Jade F. Sotto
Secretary: Angelica D. Hermosa
Members:
Judeth H. Gregory
Kristine Joy Drece
Mara Alforque
Jhon Chester Leoncito
Willy Dongsao
Mark Anthony Bagasin

Rizal St., Sorsogon City Tel. No. 421-55-75 www.ccdi-sorsogon.net

"Where quality I.T.
happens"
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TABLE OF CONTENTS

Introduction ……………………………………………………………………………….

Production …………………………………………………………………………………….

Finance …………………………………………………………………………………………….

Personnel ……………………………………………………………………………………….

Sales and Marketing …………………………………………………………….

Principles of Management ……………………………………………….

Summary and Conclusion …………………………………………………….

References …………………………………………………………………………………….
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INTRODUCTION

The Coca-Cola Company is an American corporation, and

manufacturer, retailer, and marketer of non-alcoholic beverage
concentrates and syrups. The company is best known for its
flagship product Coca-Cola invented in 1896 by Pharmacist John
Smith Pemberton in Atlanta, Georgia. The Coca-Cola formula and
brand were bought in 1894 by Asa Griggs Candler (December 30,
1851 March 12, 1929), who incorporated The Coca-Cola Company.
The company headquartered in Atlanta, Georgia, but incorporated
in Wilmington, Delaware ”has operated a franchised distribution
system since 1889: the Company only produces syrup concentrate,
which is then sold to various bottlers throughout the world who
hold exclusive territories. The company owns its anchor bottler
in North America, Coca-Cola Refreshments. The company's stock is
listed on the NYSE and is part of DJIA, the S&P 500 index, the
Russell 1000 Index, and the Russell 1000 Growth Stock Index.
Muhtar Kent serves as chairman of the company with James Quincey
as president and chief executive officer.

HISTORY

In 1886, pharmacist John Pemberton invented the original Coca-

Cola drink and sold it as a medicinal beverage. Pemberton's
bookkeeper, Frank M. Robinson is credited naming the products
and creating its logo. Robinson chose the name Coca-Cola because
of its two main ingredients (coca leaves and kola nuts) and
because it sounded like an alliteration. John Pemberton had
taken a break and left Robinson to make, promote as well as sell
Coca-Cola on his own. He promoted the drink the best he could
with the limited budget that he had and succeeded.

In 1894, American businessman Asa Candler purchased the company

from Pemberton's heirs with the intent to advertise and sell it
as a beverage to regular consumers. Candler was one of the first
businessmen to use merchandising in his advertising strategy. By
1895, Coca-Cola was being sold in every state in the
union. Coca-Cola’s first ad read "Coca Cola. Delicious!
Refreshing! Exhilarating! Invigorating!"

As of 1948, Coca-Cola had claimed about 60% of the market

share. In 1919, the company was sold to Ernest Woodruff's Trust
Company of Georgia. By 1984, The Coca-Cola Company's market
share decreased to 21.8% due to new competitors, namely Pepsi,
being released.
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In general, The Coca-Cola Company and its subsidiaries only

produce syrup concentrate, which is then sold to
various bottlers throughout the world who hold a local Coca-
Cola franchise. Coca-Cola bottlers, who hold territorially
exclusive contracts with the company, produce the finished
product in cans and bottles from the concentrate, in combination
with filtered water and sweeteners. The bottlers then sell,
distribute, and merchandise the resulting Coca-Cola product
to retail stores, vending machines, restaurants, and food
service distributors. Outside the United States, these bottlers
also control the fountain business. Since the early 1980s, the
company has actively encouraged the consolidation of bottlers,
with the company often owning a share of these "anchor
bottlers".

PRODUCTION

a. Type of Production process

 Synthetic process
A number of different materials are combined to form a
single product.

b. Production Process
The production cycle starts with sugar, fruit juices,
flavors and concentrate or beverage base. The finished
products will be packaged in PET or glass bottles, metal
cans, and bag in box or kegs.
 Water treatment
The water used in the production process is subjected
to special treatments that ensure the microbiological
safety and the correct concentration of naturally
dissolved salts, in compliance with specific
compositional and sensory characteristics.
 The syrup
The syrup is prepared in special tanks by dissolving
sugar in the treated water, then filtering the water
to remove any impurities. Only after this,
this “simple syrup” is mixed with “concentrate” or the
various “basic preparations” used for the various
drinks, thus becoming “final syrup”.

c. Production Control Process

The treated and cooled water is mixed with the final syrup
and, for sparkling drinks, with the carbon dioxide that
gives the product its characteristic effervescence.
The drink is then ready to be packaged: every hour, tens of
thousands of perfectly clean containers are filled,
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hermetically sealed, labelled, coded and tested in modern

automatic plants. The glass bottles are placed in boxes,
while the nonreturnable glass bottles, PET bottles and cans
go into various multi-packs.

d. Quality Control Process

They installed electronic bottle inspection equipment on
all refillable bottling production lines to identify and
reject even the tiniest irregularity in our beverages.
A flash pasteurization thermal process ensures that even
the most sensitive products will not alter their sensory
characteristics during their shelf life.
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FINANCE

a. Source of Financing of the company

 Outstanding bonds
€800 million 2,375% 2020 bond ISIN: XS0944362812
€600 million 1.875% 2024 bond ISIN: XS1377682676
On 18 June 2013, Coca-Cola HBC Finance BV issued EUR
800,000,000 bond at 2,375% with maturity date on 18
June 2020.
In March 2016, Coca-Cola HBC Finance BV issued an
additional fixed rate bond of €600 million with a
coupon of 1.875% due 11 November 2024. The proceeds
from the bond issue were mainly used for the repayment
of existing bonds. In the same month, Coca-Cola HBC
Finance B.V announced a tender offer for its bonds
maturing in November 2016, resulting in a reduction in
their nominal value by approximately €214.6 million.
The remaining amount of the bond, €385.4 million, was
fully repaid on maturity, November 2016.

 Commercial paper
We have had an active €1.0bn commercial paper (CP)
programme since March 2002, which we have been using
to further diversify our short-term funding sources.
In October 2013, we established a new €1.0bn Euro-
commercial paper programme in place of the old CP
programme.
In September 2014 this Euro-commercial paper programme
was further updated. The commercial paper notes may be
issued either as non-interest bearing notes sold at a
discount or as interest bearing notes at a fixed or at
a floating rate.
All commercial paper issued under the programme must
be repaid within 7 to 364 days.

 Revolving credit facility

On 25 June 2015, we announced the replacement of the
existing multi-currency revolving facility, which was
set to expire in June 2016, with a new €500 million
multi-currency revolving credit facility with a
syndicate of eight banks. This has a tenor of 5 years,
maturing in June 2020. In June 2016 the banks approved
the extension of the Revolving credit facility’s
maturity for 1 more year, until June 2021.
The facility can be used for general corporate
purposes and carries a floating interest rate over
EURIBOR and LIBOR.
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No amounts have been drawn under the syndicated loan

facility since inception.

 Shareholder structure
We have a diversified shareholder structure, with more
than two-thirds of our free-float held by UK and US
institutional investors.

Our principal shareholders are Kar-Tess Holding (a

Luxembourg company) holding approximately 23.02 percent of
our outstanding ordinary shares, and The Coca-Cola Company,
which indirectly holds approximately 22.96 percent of our
outstanding ordinary shares.
23% - The Coca-Cola Company
23% - Kar-Tess
54% - Free float
29% - Free float: US
3% - Free float: Rest of the world
6% - Free float: retail investors
29% - Free float: UK
33% - Free float: Continental Europe

b. Duties of the company’s Treasurer and Controller

The Treasurer is responsible for managing the Treasury
function within the Coke Florida Finance organization,
including accountability for managing corporate liquidity,
investments and hedging. This position supports our banking
and investor relationships, also sets Treasury strategy and
policy. This leader provides critical financial insight and
analysis to senior leaders in Coke Florida.

Principle Duties and Responsibilities

 Create and maintain cash and financial forecasting model,

aligning annual and long range financial targets with
Enterprise Planning
 Develop and enhance cash management strategies, policies
and procedures
 Develop and implement financing and investment policy and
strategies to minimize cost of capital and manage overall
investment portfolio
 Implement and maintain corporate hedging policy and program
for aluminum, fuel and PET
 Manage all financial risk exposures including commodities
and interest rates
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 Liaise closely with CFO, Controller and Enterprise Risk

Management to develop comprehensive process for
identification and mitigation of critical treasury and
financial risks
 Play key role in managing banking and senior note investor
relationships
 Play key role in managing extension of credit to customers
 Play key role in management corporate card program
 Undergraduate degree with concentration in Finance,
Accounting or Economics
 10+ years of progressive experience in treasury services
with leadership experience preferred
 Strong analytical skills, ability to exercise judgment and
make critical decisions
 Excellent interpersonal and communication skills (both
verbal and written)

The controlling function in Coca-Cola is done through periodic

reviews of managerial and salespersons performance. Towards this
end, an appraisal system based on objective evaluation of
whether the employee being appraised has met his or her targets
forms the backbone of the controlling function in the company.
Though managerial performance goes beyond evaluation of targets
and their compliance as the managers typically perform other
roles such as people management and strategic planning, the
salespersons are appraised based on the Sales Person’s reporting
system and the Sales Person’s evaluation system.
The former tracks the activities of the salesperson on a daily
basis whereas the latter is done according to the appraisal
cycle and the results of which are used to determine promotions,
bonuses, and other incentives. The evaluation period is usually
a year for sales managers whereas it is a quarterly cycle for
the market development roles, and a monthly cycle for the
salespersons.
Apart from these performance measures, the employees are also
evaluated according to their contribution to the actualization
of the overall goals of the organization as well as on their
soft skills including communication, people management,
coordination, and service quality.
Further, the controlling function also ensures that a
performance development plan is prepared which takes into
account the salespersons meeting the targets such as growth in
sales, market development, and completion of customer and
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partner calls including conversion of cold calling, attendance,

and the punctuality of the salesperson.
The key point to note about Coca-Cola’s controlling function is
that it follows a Global approach wherein the performance
measures vary according to the local conditions of the markets
in which it operates.

PERSONNEL

a. Selection Process
1. Completion of Application
2. Initial Interview
3. Employment Testing
4. Background Investigation
5. Preliminary selection in HR department
6. Interview
7. Medical Exam and Drug Testing
8. Hiring Decision

Completion Background
of Initial Employment Investigat
Application Interview Testing ion

Medical Preliminary
Hiring Exam and Interview selection
Decision Drug in HR
Testing department

b. Training Programs or opportunity for the employees

 On-the-job training
 Volunteer work in the local community
 Local charities
 Coaching and feedback
 Training and development programs

c. Company’s Incentives
 Summer hours and flexible working
 Gym membership
 Catered lunch
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 Learning allowance/green allowance

 Cycle-to-work scheme
 Pension
 Healthcare
 Additional holiday

d. Labor and management relations of the company

e. Industrial Peace
f. Collective bargaining agreement
g. Grievance committee
h. Imposing of discipline among its employees

SALES AND MARKETING

a. Personnel’s employed in the company’s Sales and Marketing

Department
b. Sales and Marketing functions
c. Company’s Promotion
 direct marketing
 web based media
 social media
 sales promotions

PRINCIPLES OF MANAGEMENT

a. PLANNING FUNCTION
The coca cola company consists of just a three layers of
flat hierarchy. Due to this the top level management has
the duty of setting the goals and objectives of the
company. Planning is also done by the upper level managers.
 Strategic goals
 Tactic goals
 Operational goals
 Decision making

b. COORDINATING FUNCTION/ORGANIZING FUNCTION

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
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 Resource Allocation
 Organizing the Human Resources

c. DIRECTING FUNCTION/LEADING FUNCTION

The following major steps are taken by the coca cola
company in the directing function:
 Motivation
 Communication
 Corporate culture

d. CONTROLLING FUNCTION
In this function the company evaluates that either they
have achieve the goals which they had set before. If the
answer is yes, then employees and managers are awarded with
bonuses and other ways and vice versa. In the following
we’ll come to know that how the coca cola company performs
its controlling function:
 Sales Person Reporting System
 Sales Person Evaluating System

SUMMARY AND CONLUSION

The Coca-Cola Company takes cares of its employees in return by

creating a good working environment and working along with
unions and government agencies to make sure its employees are
safe. The Coca-Cola Company that in today’s business world
technology is very essential to run such a big Company like
Coca-Cola.
Coca Cola is still trying to gain more ground in some region or
continent around the world. Since they have a strong competitor
like Pepsi they were suggested to adapt a differentiation
strategy plan which will bring new ideas within the team towards
the profit growth of the company. And since Coca Cola is the
world's leading soda beverage, the company itself provides the
best strategies to be done in order to maintain the good image
of the brand starting from production down to the different
functions of the management. They were able to successfully
select a person that is best fitted for the position. The
advertisements of the brand were also being appreciated by the
consumers and that is the best in marketing the product. The
management of the company also ensures to do their specific
tasks depends on their function. Thus, the Coca Cola Company
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remains to be the best and most recognized soft beverage brands

in the world.

REFERENCES

file:///F:/The%20Coca-Cola%20Company%20-%20Wikipedia_files/

file:///G:/Production%20processes%20_%20Coca-Cola%20HBC.html

http://ilokabenneth.blogspot.com/2014/12/budgeting-process-and-
procedures-in.html?m=0

https://coca-colahellenic.com/en/investors/debt-investors/funding-
sources/

https://en.wikipedia.org/w/index.php?title=The-coca-
cola_company&oldid=863465190