BUSINESS STRATIGIES OF THE

COCA COLA CORPORATION

Presented to:
Dr. Syed Imaad Shah

Presented by:

Asimullah shah 70 Shabir khan

Aslam Khan 84 syed Mustafa
Zohaib khan 05 Sifatullah Khan 99

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 “With the name of Allah the most beneficial and the most merciful”

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ACKNOWLEDGMENT

Most humbly I express my thanks to the supreme Ruler, the ALLAH Almighty, the most Benevolent, ever
Merciful, Whose divine helped me to complete my Internship and this report Successfully.

Then I am thankful to the Institute of Management Studies, University of Peshawar, which provided me such a
great opportunity of practical work to enhance my knowledge about day-to-day working of the Banking.

I am also thankful to my Supervisor Dr. Syed Imaad Shah, who supervised my writing activity. The sale
manager of the Coca cola Hyatabad Peshawar Branch, was very cooperative, they helped us a lot in our work. I
am specially thanked full to Mr. Mohayudin Shah who guided us and helped us during our report.

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 DEDICATION

WE DEDICATE OUR THIS HUMBLE EFFORT

To our

Friends

Table of Contents
ACKNOWLEDGMENT.......................................................................................................................................................2

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DEDICATION...................................................................................................................................................................... 3
Introduction........................................................................................................................................................................... 5

Mission and Objectives:........................................................................................................................................................5

Mission:-........................................................................................................................................................................... 5
Vision:-.............................................................................................................................................................................5
Growth.................................................................................................................................................................................. 6
When Coca Cola came in Pakistan?......................................................................................................................................7
When Coco Cola came in Peshawar?....................................................................................................................................8
Issues of Coca Cola in Peshawar...........................................................................................................................................8
Operational issues................................................................................................................................................................. 9
Health issues.........................................................................................................................................................................9
HR Induction......................................................................................................................................................................... 9
Establishment...................................................................................................................................................................... 10
HR Policies and Promotion Criteria....................................................................................................................................10
Raw Materials issues...........................................................................................................................................................10
Production Plant.................................................................................................................................................................. 11
Market and marketing issues...............................................................................................................................................11 5
Promotional issues..............................................................................................................................................................11
Religious Issues................................................................................................................................................................... 12
Environmental Issues..........................................................................................................................................................12
Culture issues...................................................................................................................................................................... 13
Political issues..................................................................................................................................................................... 13
Legal issues......................................................................................................................................................................... 13
Geographical issues.............................................................................................................................................................13
Organizational polices issues..............................................................................................................................................14
Conclusion.......................................................................................................................................................................... 15
Bibliography:...................................................................................................................................................................... 15

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 Introduction
There are several beverage Companies in the word in which Coca Cola is ranked the world’s
leading soft drink producer with almost 400 different non alcoholic brands spread in 200
different countries depending upon the cultures and preferences of the countries. Coca Cola is
most popular brand in the world because of worldwide standard company. Coca Cola was
inaugurated on May 8, 1886 by Pharmacist Dr. John Styth Pemberton in Atlanta. The Coca Cola
name was designed by the company accountant, Frank Robinson. The purpose behind the use of
Cs in the name is that it will look attractive to customers in advertisement. In 1887 John S.
Pemberton registered Coca Cola syrup in US patent office. In 1889 Asa Candler begun slowly
and gradually acquiring Coca Cola formulas and patents from the owner and became his partner.
In 1892 Asa Griggs candler received the case from John S. Pemberton, who owned the
Company, Candler is very happy from John S. Pemberton actions.
After the 1990’s the company received great respect among all the companies of soft drinks
manufacturers. The management of the company was considered as the strong team and was 6

very successful. The company has faced a lot of internal and external weaknesses and threats like
(SWOT).

Mission and Objectives:

Mission:-
a) To refresh the world…
b) To inspire moments of optimism and happiness…
c) To create value and make a difference.

Vision:-
The vision of Coca-Cola is presenting 6ps which are as under.
People: Attract people to efficient work
Portfolio: to provide various beverages
Partners: to create valuable product line with the help of using combination mix of suppliers and
customers
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 Planet: helping
communities by
rendering different services
Profit: Working efficiently and effectively to increase shareholders value
Productivity: High effective and growing organization

Growth
Since 1898 the company has shown growth of 5 times then its initial stages in the next 12 years.
In 1899 Coca Cola sold by Asa Candler to Benjamin F. Thomas and Joseph B. Whitehead of
Chattanooga, Chattanooga is the first city where contract occurred. The second bottling plant to
begin production under the 1899 contract opens in Atlanta. In 1901 Coca Cola assigned budget
for advertisement almost $100,000 for the first time and advertisement was run through D’Arcy
Advertising Company due to this budget sale was increased till 1million gallon mark. In 1909 the
company has divided their three basic customers in three categories domestic wise, plants
purchased by domestic entrepreneurs. Their struggled and changes in technologies bring
improved and efficiency in plants and most of families purchased their shares due to his good
standard in market The business was further extended to Canada, Cuba and Panama, outside the 7

United States with the passage of time. In 1912 it also entered into Asia. The first bottling plant
was opened in Philippine. At that time Coca Cola was comprised of 2,300 wholesalers and more
than 415,000 retailers. During First World War it was considered as a blood drive to attract
people. Later, after the First World War it was purchased by group of investors led by Ernest
Woodruff for $25 million. At this stage the success growth of Coca Cola as compared to other
competitors was higher and was encouraged to keep on rendering and manufacturing different
products. Looking at the success of Coca Cola the competitors started introducing beverages
brands with names resembling and sounding like Coca Cola for earning profit and for getting a
little advantage by use of such name I-e Koka Kola, Noca Cola etc.. At that time Coca Cola
slogan was “Thirst knows no time nor season” .In 1923 Robert W. Woodruff was elected as
President of The Coca Cola Company due to a lot of experience in business field and due to his
quality decisions Coca cola secret formulas has been saved and a lot of billboard advertisement
was started with aim to increase sales. Looking at the affects of advertisement on the sales the
president of the company started Sponsoring its first radio program, Vivian the Coca cola Girl.
After this the second board of director was assigned her name was “Lettie Pate Evans”. She was

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 the first women
to serve Coca
Cola and many other corporations and served coca cola till 1953 and due to her good decision
the first paper cups for Coca Cola were introduced according to consumer’s needs and wants.
Coca Cola as international business:
In 1919 Coca Cola started taking interest to be working globally by engaging in international
business. For this purpose the first production plants were opened in Europe, in Paris and
Bordeaux and that time it was purchased by group of investors and moves to its current location
on North Avenue in Atlanta. In 1930 it was exported outside the United States. During Second
World War US shown interest in acquiring Coca Cola beverages for their troops and requested to
provide them from different easily available outlets so that their troops can get it easily. For this
purpose coca cola extended its 64 production plants to Asia, North Africa and Europe. After the
Second World War the outlet they made temporary convert into permanent outlet because of
high demand and also they increased coke prices by 5 % in 1946. This was the first increase in
price which occurred in California.

When Coca Cola came in Pakistan? 8

In 1953 Coca Cola begun its operation in Pakistan, in the start it was different in format compare
to Pakistani format and slowly and gradually it adjusted with them. Initially it was opened
franchise but it was very costly and in 1996 the company was decided to open bottling system in
Pakistan and now the system has been installed in Pakistan and handled by the Coca Cola
company in Pakistan as known by the Coca Cola Beverage Pakistan Limited, which is basically
operated by the Turkey (CCI) because most of the shares are owned by them.
There are six plants of coca cola in Pakistan which are located in
1: Rahimyar khan 2: Karachi 3: Faisalabad
4: Haiderabad 5: Lahore 6: Gujranwala
Coca Cola has almost 2 lack clients in Pakistan and almost 2500 people are hired by Coca Cola
and play important role in eliminate unemployment in Pakistan. For the period of last two years
Coca Cola has invested in Pakistan almost $ 125(million) and provided 60 years success services
to its clients in Pakistan.

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When Coco Cola
came in
Peshawar?
As by Amjad Khan (interview 2014) in 1995 coca cola established a distribution unit in
Peshawar at Charsadda Road under the management of Aslam Khattak.
Presently we operate in six distributions centers in Peshawar providing almost 34 spu’s (Sub
product units), i.e. Coke, sprite, Fanta, Pulpy juices and mineral water which are the basic
brands available in 1L , 500ML, 250ML, 1.5L and 2.25L Scales.

In Pakistan there are six plants of coca cola which are located in
1: Rahimyar khan 2: Karachi 3: Faisalabad
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4: Lahore 5: Haiderabad 6: Gujranwala
The all distribution centers in Peshawar are working under Lahore Plant. These distributions are
not franchises but it’s privately owned and authorized by CCI (Coca Cola International). Every
distribution has prepared DD (Distribution Demand) and sends to DPG according to his target.
Whenever distribution receives products from DPG is called primary sale and when distributions
distribute products in customers is called secondary sale.

Issues of Coca Cola in Peshawar

Coca Cola is although working its best worldwide but there are certain issues that are arise
because of Coca Cola products. Following are the major Issues which are also prevailing in the
city of Peshawar.

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Operational issues
The very first

issues company facing is operational issue that is lack of sale persons and staff and another
example is less number of distribution vehicles which causes a less number of supply. So
because of all these problems they can’t achieve their targets.

Health issues
Tooth decaying is also a major issue caused by most of the Coca Cola beverages
Some of the Coca Cola products containing Pesticides which are causing huge health problems
The production process of Coca Cola are causing to emit different toxic gases which are
contaminating the environment and thus give rise to different health problems like lungs
disorders
In Peshawar the Coca Cola is indulged in Monopolistic competition which in turn causes
abnormal profit to them which against social ethics.
Coca Cola is also involved in deceptive type of marketing which is also against the codes of
social ethics.
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The few major issues of Coca Cola are prevailing in its different departments which are
discussed below one by one.

HR Induction
Coca Cola is a fast growth beverages corporation with almost thousands of employees in
Peshawar region but the issues that exist are the induction of employees on the basis of nepotism,
references and through use other unethical strategies. The employees are often not well trained
and having lower management skills which are making it subjected to uncertainties and weaker
operations.

Establishment
As discussed above the unethical practices of management of coca cola in Peshawar they are
confronted with a varying nature of problems. The Establishment is involved in unethical hiring,

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 lack of fair
remunerations to
employees and use of labor as machines are making it delayed in achieving timely completing
aims and objectives.

HR Policies and Promotion Criteria

The HR policies of coca cola are unfair up to a certain limit. The recruitment process is not free
from nepotism and other top level influence. Working conditions are not the same for all the
employees as some of the employees are enjoying healthy time and others are following strict
rules in sales related activities as well as in other day to day working activities. The labor is
subjected to work like a machine for lower and unfair financial benefits.
Similarly the marketing strategies of coca cola are also susceptible to minor deceptive acts of
exaggerating their products in commercial with the extreme level of quality and satisfaction
which are in real not the same. Their products are containing different chemicals which are bad
for health and are causing serious health diseases.
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Raw Materials issues

Coca Cola being a very big beverages corporation uses different raw materials which are used in
production department. The main raw materials used are the bottling, chemicals, packaging,
water use and other formulas necessary for manufacturing different brands. In this process there
exist some issues regarding use of raw materials like use of excessive natural water in a scarce
situation in the country and mostly in the city of Peshawar. In addition the policies for acquiring
the raw materials are all according to the will of the coca cola regarding prices and quality by use
of unfair approaches in contacting suppliers and acquisition of raw materials on lower prices.
Sometime in hard situation like in extreme demand the use of local and inexpensive and harmful
raw materials are used which are causing side effects to the ultimate consumers.

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Production Plant
The issues that

are related to the production plant are the problem of acidity that occurs due to the use coca cola
products. Tooth decaying is also a major issue caused by most of the Coca Cola beverages. Some
of the Coca Cola products contain pesticides which are causing huge health problems. The
production process of Coca Cola are causing to emit different toxic gases which are
contaminating the environment and thus give rise to different health problems like lungs
disorders.

Market and marketing issues

The Coca cola is creating many issues in the markets by provision of unequal quota of brands to
different markets and wholesalers thus making fluctuations in the prices in some markets.
Similarly the marketing process of some of the products of coca cola are deceptive in nature
which are making the customers annoyed and brand switchers because of the difference between
the expected and perceived quality and the real quality. For example in most of the ads some of 12

the beverages which are containing toxic and hazardous chemicals are shown 100% safe which
later on causes some serious sort of side effects when used by the customers which is a big issue.

Promotional issues
As discussed above the main promotional issues of coca cola is sometime showing the extreme
quality and satisfaction of the products and uses bombarded type of promotional campaigns
which are in real not like that and causes frustration to the customers.

Religious Issues
The use of different formulae containing different types of chemicals like alcohol is not
acceptable and allowed in some religions which is creating an issue for the coca cola company.
However this type of issue is not prevailing in Peshawar city as they are not offering products
which contain Islam prohibited chemicals like alcohol.
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Environmental

Issues
Being indulged in various processes in the production of different types of beverages coca cola is
susceptible to many environmental issues globally as well as in Peshawar. The main issue is non
recycling procedures of the waste products that are produced as by products in the production
and also the recycling of plastic bottles in Peshawar. Other main issues include the use of
excessive natural water in the time when the water resources are scarce in Peshawar. Similarly,
the contamination of the chemicals generated from the production with the water in rivers is also
big issues to which coca cola is confronted. All these issues are causes serious health disease and
disorders which are socially and ethically not a good indicator for coca cola.

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Culture issues
In Peshawar there are majority of religious people because of them coca cola can’t place
female’s pictures in advertisement just like occurred in MMA government in 2002. According to
Amjad khan there are no issues faced to distribution related to Peshawar culture

Political issues
There are various political issues which are affecting different organization include coca cola due
to instability in political system every day government rule and polices has been changed which
make a source of affecting organizations. Recently coca cola facing advance income tax issue
which is imposed by government. These issues play important role to affect coca cola.

Legal issues
These issues are also important over the past 10 years; the Coca-Cola Company has deal with a
number of legal issues. Among these cases, the most famous was the pollution of Coca-Cola 14
beverages that were internationally sold. Issues like this can put at risk a company reputation if a
consumer gets sick or dies. These harmful issues not only destroy a company's monetary
conditions, in covering up law suits, but also hurt the market reputation causing the stakeholders
to go away for competitors.

Geographical issues
The geographical issue for the coca cola company is occurred in when Coca Cola Company
constructed their plant in Jahangira (nearby attock). The basic main issue was the taste of the
water which was not compete the standard of the coca cola company. Therefore they move their
plant from Jehangira to Gadoon (Swabi)

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Organizational
polices issues

As by conducting interview with Amjad khan he said there is a decentralized policy and
sometimes when the new CEO comes to the organization he revised overall the policy this make
us uncomfortable and un relaxed.

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Conclusion

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 We have
concluded from
this report that although the fact is that coca cola currently dominated the market leadership
position over all it does not guarantee that the company will continue its position in the future as
well. In Pakistan as compared to Pepsi coca cola has less number of consumer as Pepsi market
shares in Pakistan is approximately 54 % someplace as coke market shares is balanced about
36%, therefore is that coca cola must improve factors such as relationship marketing, innovation
and technology especially in Pakistan to achieve market leader position in the region as well.

Bibliography:
1) Generally interview from Amjad khan (regional sell manager Industrial state Hayatabad
Peshawar branch) conduct by the group members.
2) Public annual report of Coca Cola International 2012
3) Google search provided different links used for general ideas
4) www.ccbpl.com.pk 16
5) www.cci.com

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