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A REPORT ON
HINDUSTAN COCA – COLA BEVERAGES PVT LTD, MOULA ALI (HYDERABAD)
Project submitted in partial fulfilment for the award of Post Graduation Degree in Management
By ANKITA GUPTA Register No.- 09XQCMA011 Under the guidance of Mrs. Hema Harsha
M.P BIRLA INSTITUTE MANAGEMENT Associate Bharatiya Vidya Bhavan #43, Race Course Road, Bangalore-590001
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
ORGANIZATIONAL STUDY AT HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED, MOULA ALI HYDERABAD
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
I hereby certify that this internship report entitled “ORGANISATION STUDY AT HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES”, has been prepared by ANKITA GUPTA (bearing USN 09XQCMA011) under my guidance and supervision.
Place: Bangalore Date: (Mrs. Hema Harsha)
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
This is to certify that this internship report entitled '' ORGANISATION STUDY AT HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES” has been prepared by ANKITA GUPTA (bearing register number 09XQCMA011) under the guidance of Mrs. Hema Harsha, M P Birla Institute of Management, Bangalore
Place: Bangalore Date: Malavalli) (Dr Nagesh
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
(ANKITA GUPTA) MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .5 DECLARATION I hereby declare that this Project Report titled “ORGANISATION STUDY AT HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT.) AND RESEARCH ON SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES” . submitted by me is a bonafide work undertaken by me and it is not submitted to any other institution or university for the award of any degree/diploma certificate or published any time before. LTD.
1.3 Trends 02 02 02 02 04 04 04 05 06 2. Introduction 1.6 CONTENTS Page no.6 Beverage Industry in India: A brief insight 3.1.1 Fast facts MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) 07 08 08 09 11 13 14 .1 Objective of the Study 1.2 Challenges in the food and beverage industry 07 2.1 History 22.214.171.124 Food and Beverage: Background 2. Company Profile 3.1 History 2.2 Scope of the Study 1. PART A 1.4 Future Outlook 2.2 Leaders 2.3 Limitation of the Study 2.3 Growth Prospects 2. Industry Profile 2.5 Key findings 2.
6 Manufacturing unit at HCCBPL 3.1 About the company 3.3 Corporate social responsibility 3.5 Mission and values of HCCBPL 3.4 HCCBPL 126.96.36.199 Mission 3.3 Vision for sustainable growth 3.5.2 History of bottling 3.8 Business plan model at HCCBPL 3.9.1 Values 3.7 3.1.1 Distribution routes 3.2.1 Values 3.9 Distribution network 188.8.131.52.7 Manufacturing process at HCCBPL 3.2 Mission 3.2 Values and mission of coca cola 3.2 Distribution system 3.3 Departments involved in the Distribution Process MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) 15 18 18 18 18 19 21 21 23 23 23 24 24 25 26 27 27 28 28 .3 Quality policy 3.5.4.
Research Methodology 5.8 3.13.2 Non Statutory welfare schemes 39 39 40 40 40 5.2 Employee welfare schemes 4.2.4 Threats 29 31 35 36 36 36 37 37 PART B 4.1 Strengths 3.13.10 Company’s Product mix 184.108.40.206 Opportunities 3.12 Competitors to HCCBPL 3.2 Weakness 3.2. Employee Welfare 4.13 SWOT Analysis 3.1 Introduction 4.1 Statutory welfare schemes 4.11 Packaging details 3.1 Need for the study MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) 42 43 .
3 Scope of the study 5.2 Objectives of the study 5.2 Scaling technique 5.4 Methodology 5. Conclusion Bibliography Annexure 43 44 44 44 45 45 45 46 46 47 60 61 63 65 67 MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .6 Limitations of the study 6.1 Size 5.5.5. 8.2 Suggestions 7.1 Primary data collection 5.5 Sampling 5.4.4. 9.1 Findings 6. Findings and Inferences 6.2 Secondary data collection 5.9 5.
3. 3. 5. LIST OF FIGURES 1. FOBO and Contract packaging in India Manufacturing Process at HCCBPL 19 22 25 MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Vision for sustainable growth Location of COBO.10 LIST OF FLOWCHARTS 1. 6. 4. Beverage Industry in India Chain followed from Manufacture to distribution Business Plan Model at HCCBPL Organisational Structure of Coca Cola in India Organisational Structure at the regional level Organisational Structure of the Sales Department 09 24 27 32 33 34 2. 2.
of lavatories Graph showing satisfaction with restroom facilities Graph showing satisfaction with sanitary conditions Graph showing management of grievances by organisation Graph showing facilities provided by company Graph showing satisfaction with canteen facility Graph showing satisfaction with first-aid facility Graph showing satisfaction with welfare activities 48 49 50 51 52 53 54 55 56 57 58 59 MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Graph showing satisfaction with physical conditions Graph showing satisfaction with safety measures Graph showing satisfaction with drinking water facility Graph showing satisfaction with no.11 LIST OF GRAPHS 1. 11. 3. 7. 10. 6. 12. 9. 4. Graph showing that welfare schemes play an important role in increasing the employee’s loyalty and motivation 2. 5. 8.
I would like to thank Mr. I take this opportunity to thank the management and staff of MP Birla Institute of Management for giving this opportunity to do this project and for their endless support.Komali (HR Executive). who gave me opportunity to learn the subject in a more practical manner in this organization. Hyderabad.Srinivasa Rao (HR Team leader) and Ms. Hindustan CocaCola Beverages Pvt. (ANKITA GUPTA) MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . All those employees of HINDUSTAN COCA – COLA BEVERAGES PVT LTD deserve special thanks for their cooperation and help in the collection of necessary and relevant material for the project. P. Rajesh Pebbilli (Human Resource Manager). HINDUSTAN COCA – COLA BEVERAGES PVT LTD. who in spite of their busy schedule helped and guided me throughout the project . I extend my thank to Mr. to extend my heartfelt gratitude to everyone who has encouraged and guided me all through my project in particular. Ltd. Moula-Ali.12 ACKNOWLEDGEMENT The ideal way to begin this research would be.
The Coca-Cola Company began building its global network in the 1920s. it also produces and markets sports drinks. marketer and distributor of non-alcoholic beverage concentrates and syrups. the product that has given the world its best-known taste was born in Atlanta. used to produce nearly 400 beverage brands. Now operating in more than 200 countries and producing nearly 400 brands. benefits and facilities offered to employees & by the employers. Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or to salaries. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. syrups and not-ready-to-drink powder products. on May 8. 1886. Moula Ali related to the welfare activities. In addition to this. accident and unemployment for the workers and their families. creation of industrial harmony through infrastructure for health. the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money. It sells beverage concentrates and syrups to bottling and canning operators.a billion times a day.” In this project I intend to study about the satisfaction levels of the employees of HCCBPL (Hindustan Coca-Cola Beverages Pvt. “Employee welfare is a comprehensive term including various services. Georgia. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates. industrial relations and insurance against disease. Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. distributors. Employee welfare includes monitoring of working conditions. Ltd). Through such generous fringe benefits the employer makes life worth living foe employees”. The welfare measures need not be in monetary terms only but in any kind/forms. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . tea and coffee.13 EXECUTIVE SUMMARY Coca-Cola. fountain retailers and fountain wholesalers. Coca-Cola Company is the world’s leading manufacturer.
medical benefits. Workers take active interest in their jobs and work with a feeling of involvement and participation. This makes workers to pay more attention towards work and thus increases their productivity. • Facilities like housing schemes. • Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. etc are reduced to a greater extent by the welfare policies. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . healthy. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarised as follows: • They provide better physical and mental health to workers and thus promote a healthy work environment. and education and recreation facilities for workers’ families help in raising their standards of living. • Employers get stable labour force by providing welfare facilities.14 The very logic behind providing welfare schemes is to create efficient. • The social evils prevalent among the labours such as substance abuse. loyal and satisfied labour force for the organization.
The study was conducted in a short period of six weeks. therefore an attempt is made to cover the crucial issues as much as possible. INTRODUCTION 1. SCOPE OF THE STUDY The scope is limited to the extent of the place. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Marketing. It is done as a part of academic study. Ltd. The information collected is limited to the academic knowledge gained during the study of the course. It is difficult to cover all the areas. in completion of the MBA Degree Course. The study is confined only to Hindustan Coca Cola Beverages Pvt. Maula Ali. which is an integral part.15 1.3 LIMITATION OF THE STUDY The study is not proposed to be an expert study as it was done by a student for the purpose of a partial fulfilment of the course in the in plant training. Some of the information being confidential was not included in the study. organization and their information collected during the internship. 1. and so the finding cannot be generalized for all times. To gain firsthand experience from industry.1 OBJECTIVES OF THE STUDY (INTERNSHIP) To examine the organization structure of the company. time. Hyderabad.2. To make assessment of the organization in the industry. 1. To gain necessary interpersonal and managerial Skills. The scope of the study limited to information supplied by the Department Heads and information collected by standing order and settlement copies of the company. To understand functions of various departments such as Production. Human resource management and finance. To gain well rounded view of Management operations. The scope of the study by and large is very vast.
16 INDUSTRY PROFILE MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
followed by wine and spirits. The results were the ability to mass produce food products at a lower cost and improved transportation. For alcoholic beverages. The food and beverages industry is considered a mature industry. Now. which we now distinguish agriculture as a separate industry.17 2. The beverage segment is composed of alcoholic and non-alcoholic beverages. as food is often a precious commodity. enabled many food products to be enjoyed in regions where food cannot be grown. Reliance on transport has increased as the industry has developed to be more global in nature. Prices were determined by availability and regulation. Food Administration to regulate the contents of domestically produced food. soft drinks far outsell coffee. In the food industry. Most MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . In the nonalcoholic segment.1. After World War I. cider and other flavored alcoholic beverages make up the bulk of the market.S. the industry is much more focused on technology and mechanical manipulation of raw foods to create more value-added food products. beer. The food and beverage industry used to be considered the production of food. Federal Government established the U. INDUSTRY PROFILE 2. followed by baked and cereal items.S. the U. the Industrial Revolution contributed largely to the production and distribution of food and beverage. the food and beverage industry shifted.1 FOOD AND BEVERAGE: BACKGROUND The food and beverage industry is composed of companies involved in processing raw food materials and manufacturing. such as railroads and barges. with most food products being offered by a handful of globe-spanning corporations. tea. During wartime. 2. juice and water. and chilled foods. packaging or distributing food or drink – the steps in food production after harvest and before retail purchase. it is very competitive and relies strongly on advertising to promote brand names. the dairy sector is the largest.1 HISTORY In the late 18th and early 19th centuries.
The Cola Wars. the total beverage consumption will grow at 9% over the next 20 years. product advertising costs more than the cost of production. a campaign of mutually-targeted television advertising. The Food and Beverage Industry registered a growth rate of 8. One such franchise is McDonalds. In the 1950s and 1960s. was one example of extensive . the largest Food and Beverage Company in the World. Some of the Industry’s biggest growth spurts have come from megamergers between Food Industry giants.5% in 2005-06. Since the 1980s there were many mergers and acquisitions of Food and Beverage Companies. diversification. Kraft Foods and Nabisco and General Mills and Pillsbury were two major mergers. and branding is partially responsible for the emergence of radio and television. 3584 billion. currently the World’s largest chain of fast food restaurants. India produces above 600 million tons of food products every year and is one of the major producers of food in the World. 2. This enabled franchisers to expand with limited capital investment. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) advertisements and marketing campaigns between soft drink manufacturers The Coca-Cola Company and PepsiCo.18 countries involved in World War II rationed food and regulated prices in order to stabilize the economy. alcoholic beverage and non-alcoholic beverage will see a spurt of 9. According to McKinsey’s report.6% and 8. Of which.2 LEADERS In the Food and Beverages Industry. In many instances. India’s Food and Beverage Industry is valued at Rs. Unilever and Kraft Foods have all diversified well and performed well. After World War II the Food and Beverage Industry began branding products through advertising to increase popularity.8% respectively. with many companies actively buying and selling brands. For example.1. Nestle. whether into many different types of food or beverage or into different preparations. the concept of franchised restaurants was promoted. has been shown to be a key to ensuring future growth. This trend continues today.
Although this is bad news for grocery retailers. costs have increased at the agriculture end. such as Red Bull. which increases raw materials costs for food processors who also deal with increased production and transportation costs at their end. Food safety programs have been adopted recently as issues of chemical and bacterial contamination and new food-borne pathogens remain a public health concern. Britannia Industries Limited. The non-alcoholic beverage segment is led by Coca-Cola with PepsiCo and Cadbury Schweppes. Rising costs have become an issue in the Food and Beverage Industry. PepsiCo. Bottled water has become well established in the market as many beverage companies. and enhanced waters containing vitamins or supplements are gaining popularity. Nestle. Another trend in the Industry has been the development of health foods. it is difficult for these companies to raise their prices accordingly and profit margins have suffered as a result. 2. Cadbury Schweppes PLC. have also burst forth onto the scene. and other food service providers. Energy drinks. Since the Industry is so competitive. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .1. Hindustan Lever Limited. The key players currently operating in the Indian Food and Beverages Industry including Dabur India Limited. food makers realize food eaten away from home is still food they can provide. or those containing only organic ingredients. Inc. Godrej Industries Limited. Statistics shown that more people are dining out and food producers are finding themselves devoting more attention to products designed for restaurants. as the rising costs of petroleum cause a twofold increase in cost for companies in the Food Industry. such as those containing less trans-fat or fewer calories.19 becoming leaders in their market. many times at higher margins.3 TRENDS Recently. Quality control and assurances are vital to this Industry. vending machines. Future Group. Companies have spent a lot of money researching consumers eating habits and preferences.. RPG Enterprise and Godrej Agrovet Limited. ITC Limited.
According to McKinsey’s report. Of which. rapid urbanization and increasing popularity of convenience foods. India produces above 600 million tons of food products every year and is one of the major producers of food in the World. awareness campaign about products in urban as well as rural areas and large scale transformation. 3584 billion. Different rules and regulations and licensing are defined for different commodities 2.3 GROWTH PROSPECTS With increase in disposable income of consumers. the total beverage consumption will grow at 9% over the next 20 years. alcoholic beverage and non-alcoholic beverage will see a spurt of 9.2 CHALLENGES IN THE FOOD AND BEVERAGE INDUSTRY Poor infrastructure Lack of adequate facilities for storage. food and beverage sector is expected to grow at a high rate. transportation and cold chain facilities No common food law Food standards are confusing and contradictory High cost of raw material and packing material and high railway freight puts pressures on margins.6% and 8. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . This sector holds a huge potential to grow because of the increase in advertisement spending.5% in 2005-06. India’s Food and Beverage Industry is valued at Rs. The Food and Beverage Industry registered a growth rate of 8.20 2.8% respectively. growing awareness among consumers about health products.
33% for the period spanning from 2007-201 The processed-food market is the main focus for foreign companies as this segment is underdeveloped and presents enormous potential for growth Rising household incomes.05% for the period spanning from 2007-2011 The rapidly developing and full of potential processed food market will attract foreign companies Consumption of soft drinks expanded at an average annual rate of 11% by volume during 2002 to 2006. It is expected that it will increase at a CAGR of 10.4 FUTURE OUTLOOK RNCOS “Indian Food and Beverages Forecast (2007-2011)” report gives an in-depth analysis of the present and future prospects of the Indian Food and Beverages Industry. This report helps clients to analyze the factors and examine the opportunities critical to the success of food and beverage industry in India. albeit it has a small base of consumers MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . changing lifestyles and the rapid growth of the private-sector and dairy-processing Industry should lead to greater demand for value-added. such as processed cheese. increasing urbanization. food processing Industry and packed/convenience food Industry. table butter and ice cream The growth rate of soft drink sales will decelerate during the forecasted period due to pesticide contamination issues and growing popularity of fruit juice drinks and bottled water Coffee consumption is likely to expand at a rapid rate during the forecasted period. and this is forecast to accelerate only slightly to 12% during 2007 to 2011 Production of branded snack food is estimated to be growing at an annual rate of 20% in coming 2-3 years. milk-based products. It looks into the Industry in detail with foci on organized food retailing.21 2. consumer food purchasing behavior. 2.5 KEY FINDINGS It is expected that fruit consumption will increase at a CAGR of 4.
FLOWCHART 1. It is an industry.22 Being the world’ largest market for whisky. India will remain major global spirits market in the coming 3-4 years 2. beverages form an important part of the lives of people. in which the players constantly innovate. BEVERAGE INDUSTRY IN INDIA BEVERAGES ALCOHOLIC NON-ALCOHOLIC CARBONATED NON CARBONATED COLA NON COLA NON COLA MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . in order to come up with better products to gain more consumers and satisfy the existing consumers.6 BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT In India.
high levels of consumption and low levels of consumption. beverages are a luxury and that beverages have to be consumed occasionally. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .e.e. it could be observed that consumers perceive beverages in two different ways i. It is important to look at the entire beverage market.e. for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. beverages for kids. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health. Age wise segmentation i. purchase and consume. relaxation. as a big opportunity. The beverage market has still to achieve greater penetration and also a wider spread of distribution. refreshment. Communication should be relevant and trendy so that consumers are able to find an appeal to go out. so as to cater the right product to the right person. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.23 The beverage industry is vast and there various ways of segmenting it. taste. for adults and for senior citizens Segmentation based on the amount of consumption i. The different ways of segmenting it are as follows: Alcoholic. well-being or prestige relevant to the category. In order to leverage the beverage industry. non-alcoholic and sports beverages Natural and Synthetic beverages In-home consumption and out of home on premises consumption. it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. stimulation. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. If the behavioural patterns of consumers in India are closely noticed. These two perceptions are the biggest challenges faced by the beverage industry.
24 COMPANY PROFILE MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment. The Company aims at increasing shareowner value over time. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . has brought pleasure to thirsty consumers around the globe. This unique worldwide system has made The CocaCola Company the world’s premier soft-drink enterprise. More than anything. 1886. Georgia. it also produces and markets sports drinks. In addition to this. Coca-Cola. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services. For more than 115 years. from Montreal to Moscow.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. syrups and not-ready-to-drink powder products. thus increasing brand equity on a global basis. tea and coffee. to meet business goals and objectives.a billion times a day. From Boston to Beijing. fountain retailers and fountain wholesalers.25 3. THE COCA COLA COMPANY Coca-Cola. Now operating in more than 200 countries and producing nearly 400 brands. used to produce nearly 400 beverage brands. more than any other consumer product. on May 8. marketer and distributor of non-alcoholic beverage concentrates and syrups. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates. It sells beverage concentrates and syrups to bottling and canning operators. Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. the product that has given the world its best-known taste was born in Atlanta. distributors. the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money. Coca-Cola Company is the world’s leading manufacturer. The Coca-Cola Company began building its global network in the 1920s. that system is dedicated to people working long and hard to sell the products manufactured by the Company.
Within four years. The trademark “Coca-Cola. suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. inviting thirsty citizens to try “the new and popular soda fountain drink. Pemberton never realized the potential of the beverage he created. in the year 1886 in Atlanta. a pharmacist. Robinson. sold his remaining interest in Coca-Cola to Asa G. a theme that continues to echo today wherever Coca-Cola is enjoyed. Mr. sales of Coca-Cola averaged nine drinks per day. For his efforts. was registered in the United States Patent Office on January 31. whether by accident or otherwise. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup. Dr. By the year 1886. Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard.” The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal. Pemberton grossed $50 and spent $73. his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother. The first year. Pemberton sold 25 gallons of syrup. John Pemberton’s former partner Frank Robinson and two other associates.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings. producing a drink that was proclaimed “delicious and refreshing”. Dr.” used in the marketplace since 1886.96 on advertising. Pemberton’s partner and book-keeper. an entrepreneur from Atlanta. He suggested that “the two Cs would look well in advertising. Dr. By the year 1891. Dr. Frank M. Mr.1 HISTORY Coca-Cola was first introduced by John Syth Pemberton. just prior to his death in 1888. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Candler. He gradually sold portions of his business to various partners and. with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment. 1893. Red has been a distinctive color associated with the soft drink ever since.26 3. shipped in bright red wooden kegs. Candler.Candler formed a Georgia corporation named the Coca-Cola Company. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. John S.
Texas. In the year 1919. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success.e Coca-cola. Others were opened in Chicago. diet coke and Fanta Company associates: 90.1. Candler announced in his annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United States. California.5 billion Beverage variety: Offers more than 2800 products including diet and regular sparkling beverages. and in 1894. sports drinks. In 1895. 3.” As demand for Coca-Cola increased. making Coca-Cola one of the most recognized and valued brands around the world. Illinois.500 worldwide Operational reach: 200+ countries Consumer Servings (per day): 1. coffee and milk and soy-based beverages. and still beverages such as 100% juices. the first syrup manufacturing plant outside Atlanta was opened in Dallas. sprite. the Coca-Cola Company was sold to a group of investors for $25 million. teas.1 FAST FACTS Established: 1886 Ranking: Owns 4 of world’s top 5 non-alcoholic brands i.three years after The Coca-Cola Company’s incorporation. the following year. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. juice drinks. Mr. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . the Company quickly outgrew its facilities. and Los Angeles.27 The business continued to grow. Robert W.
3.1.2 HISTORY OF BOTTLING Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Year 1894: A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A.Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that CocaCola be bottled, but Candler focused on fountain sales. Year 1899: The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of
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the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world. In the 1920s: Bottling overtakes fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras,Mexico, Belgium, Italy and South Africa. By the time World War II began,Coca-Cola was being bottled in 44 countries. In the 1940s: Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. In the 1950s: Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960.
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
In the 1960s: Introduction of new brands Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world. In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy, retail customers of The CocaCola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century: Coca-Cola today The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
3.2 VALUES AND MISSION OF COCA COLA 3.2.1: VALUES: Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being: LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be, it’s up to me COLLABORATION: Leverage collective genius INNOVATION: Seek, imagine, create, delight QUALITY: What we do, we do well 3.2.2: MISSION To Refresh the World... In body, mind, and spirit To Inspire Moments of Optimism... Through our brands and our actions To Create Value and Make a Difference... Everywhere we engage. 3.2.3: VISION FOR SUSTAINABLE GROWTH PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities. PEOPLE: Being a great place to work where people are inspired to be the best they can be. PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ Desires and needs. PARTNERS: Nurturing a winning network of partners and building mutual loyalty. PLANET: Being a responsible global citizen that makes a difference.
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
by addressing water. The company’s mission statement. focused on higher education as a vehicle to build strong communities and enhance individual opportunity Coca-Cola’s footprint in India was significant as well. Coca-Cola took seriously its ability and responsibility to positively affect the communities in which it operated. The Company MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . VISION FOR SUSTAINABLE GROWTH 3. UNAIDS. called the Coca-Cola Promise.3 CORPORATE SOCIAL RESPONSIBILITY As one of the largest and most global companies in the world. stated: “The Coca-Cola Company exists to benefit and refresh everyone who is touched by our business. climate change and waste management initiatives. and other NGOs. and the environment.” The Company has made efforts towards good citizenship in the areas of community. Their activities also included The Coca-Cola Africa Foundation created to combat the spread of HIV/AIDS through partnership with governments.32 Fig1. and The Coca-Cola Foundation. by improving the quality of life in the communities in which they operate.
30-40 more were created in the supply chain. Priorities included education. Like its parent. where primary education projects had been set up to benefit children in slums and villages. the company committed itself to environmental responsibility through its own business operations in India including: Environmental due diligence before acquiring land or starting projects Environmental impact assessment before commencing operations Ground water and environmental surveys before selecting sites Compliance with all regulatory environmental requirements Ban on purchasing CFC-containing refrigeration equipment Waste water treatment facilities with trained personnel at all company-owned bottling operations Energy conservation programs 50% water savings in last seven years of operations MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . where the Company supported community-based rainwater harvesting projects to restore water levels and promote conservation education. where Coke India partnered with NGOs and governments to provide medical access to poor people through regular health camps. In addition to outreach efforts. and health. water conservation.33 employed 7000 citizens and believed that for every direct job. Coke India’s Corporate Social Responsibility (CSR) initiatives were both community and environment-focused.
when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. The complexity of the Indian market is MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . which were floated by Parle. as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. Limca. Coca-Cola is made up of 7000 local employees.4. However. With access to 53 of Parle’s plants and a well set bottling network.Thus these products became a part of range of products of the Coca-Cola Company. One such major commitment was that. Maaza.4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) 3. Goldspot. 500 managers.34 3. the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favour of resident shareholders by June 2002. the Indian bottling arm of the Coca-Cola Company. HCCBPL. It also has a supporting distribution network consisting of 700. over 60 manufacturing locations. In the new liberalized and deregulated environment in 1993. Coca-Cola made its reentry into India through its 100% owned subsidiary. this was based on numerous commitments and stipulations which the Company agreed to implement in due course. Almost all goods and services required to cater to the Indian market are made locally. with help of technology and skills within the Company. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years. 27 Company Owned Bottling Operations (COBO).1 ABOUT THE COMPANY Coca-Cola was the leading soft drink brand in India until 1977. with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation.000 retail outlets and 8000 distributors. an excellent base for rapid introduction of the Company’s International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up.
This new market accounted for over 80% of India’s new Coca-Cola drinkers. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. Between 2001 and 2003. the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs. act local”. with punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. FOBO & CONTRACT PACKAGING IN INDIA MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . “Think local. recognition and loyalty worldwide.5 per bottle. At Coca-Cola. is the mantra that Coca-Cola follows.35 reflected in the distribution fleet which includes different modes of distribution. they have a long standing belief that everyone who touches their business should benefit. COBO FOBO CONTRACT Fig2. thereby inducing them to uphold these values. LOCATIONS OF COBO. enabling the Company to achieve success.
INNOVATION: To continuously strive for progress and reach the next level of excellence in everything we do.5. flexible business system and continuous improvement. motivate and drive the team with energy and zeal. to deliver outstanding results. ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for delivering agreed targets and goals.1: VALUES The values that the employees in the Company are expected to keep up to and work by regularly are as follows: LEADERSHIP: To take an initiative and lead. Indian society in the form of a contribution to economic and social development.36 3. Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the use of finished drinks. PASSION: To be deeply committed and display drive and energy in the quest to deliver outstanding performance. 3.2: MISSION To create consumer products. TEAMWORK: To unite for greater strength and work collectively as a group towards the achievement of common goals.5. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economic value added Suppliers as an opportunity to make reasonable profits when creating real value-added in an environment of system-wide team work. to have decisions taken at the lowest appropriate level. processes and tools in order to create competitive advantage and deliver superior value to. services and communications. OWNERSHIP: To think and act like owners at all levels.5 MISSION AND VALUES OF HCCBPL 3. customer service and bottling system strategies.
Vijaywada and Nellore. we commit to quality in our thoughts. 2 Green fields and 1500 associates. The total turnover of AP is over 750 crores with 3 plants.5. FLOWCHART 2.3: QUALITY POLICY “To ensure customer delight.” 3. deeds and actions by continually improving our processes…Every time.37 3. one each in Vizag.6 MANUFACTURING UNIT OF HCCBPL There are 2 manufacturing units in Hyderabad one based at Ameenpur and one at Moula-Ali. There are 3 more units. Ameenpur has 3 CSD (carbonated soft drinks) lines and Moula-Ali has 2 CSD and 1 PET line. MAULA ALI SALES AND DISTRIBUTION DISTRIBUTORS OUTLETS OUTLETS MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION MANUFACTURING PLANT.
38 3. Once both the water and the final syrup are ready. inspected and washed for the purpose of filling in the final product in MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . In the syrup room. the concentrate received from another bottling plant situated at Pune. simultaneously. is blended with the sugar syrup. On the other hand. further passing through the sand filter and the activated carbon filter.7 MANUFACTURING PROCESS AT HCCBPL Fig 3. so as to attain pure cleansed water. they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product. the returnable glass bottles are depalletized. MANUFACTURING PROCESS The manufacturing of the products of Coca-Cola involves the following steps: Water is received and it passes through the water treatment plant.
8 BUSINESS PLAN MODEL AT HCCBPL FLOWCHART 3 Coca-Cola India division Manufactures Concentrate. This step does not take place in the PET bottle line as the bottles once used are disposed.39 it. The product is finally filled in the bottles. Beverage base and Syrup Regional Bottlers COBO/FOBO Manufactures finished Bottles/Cans/Fountain Syrup Customers Consumers MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . crowned (in case of RGB)/ capped (in case of PET bottles). labeled and cased in order to be sent into the warehouse for distribution. 3.
Corporate houses etc. either a month of half a month. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . are exhausted on the same day and might run a little into the next day i. A detailed and well organized distribution system contributes to the efficiency of the salesmen. higher sales and higher efficiency thereby leading to higher profits to the firm. 3.e.Consumer The customers of the Company are divided into different categories and different routes. A typical distribution chain at HCCBPL would be: Production --. Examples: Small sized bars and restaurants. and every salesman is assigned to one particular route.40 3. Examples: Departmental stores. the products are consumed at a fast pace. which is to be followed by him on a daily basis. The Company provides goods to these customers on credit. instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product.9. The stock does not exhaust within a day or two. Examples: Clubs. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. Super markets etc.9 DISTRIBUTION NETWORK HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The stocks of products in these outlets are not stored for future use instead.Depot Warehouse --. It also leads to low costs. educational institutions etc.Retail Shelf --. wherein a considerable amount of stock is kept in order to use for future consumption. payments being made by them after a certain period of time i. hotels.Plant Warehouse --.1: DISTRIBUTION ROUTES The various routes formulated by HCCBPL for distribution of products are as follows: Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. Future Consumption: This route consists of outlets of Coca-Cola products.e. fine dine restaurants.Distribution---Warehouse --Retail Stock --.
3. an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales. co-ordinates with distributors for collections and monitors distribution stocks and their set-up.41 General: Under this route. Shipping or Warehousing Department: It dispatches goods as per approved by order. ensures that stocks are dispatched on a FIFO basis. In certain locations special teams who go into business locations to specifically merchandise our products. 3. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm. records collections from distributors.2: DISTRIBUTION SYSTEM Direct distribution: In direct distribution. value and Quality. The consumption period is not taken into consideration in this particular route. delivery. Sales people and delivery personnel both have this responsibility. Indirect distribution: In indirect distribution. the bottling unit or the bottler partner has direct control over the activities of sales. all the outlets that come in a particular area or an area along with its neighboring areas are catered to. and merchandising and local account management at the store level. ensures physical control over load out area and updates warehouse stock records in a timely manner. obtains balance confirmation from distributors and follows up outstanding balances. delivery.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS The Distribution process mainly consists of three departments: Distribution Department: It appoints distributors and establishes a distribution network. periodically reconciles outstanding balances from distributors. merchandising and local account management) Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit.9.9. arranges logistics and ship products. processes approved sale orders and prepares invoices.
fruit juices and bottled mineral water. either complete new products or new ways to bottle or pack the existing drinks. The Company is always looking to innovate and come up with.42 3. The Coca-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL: In the Cola section In the Lemon section In the Orange section MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .10 COMPANY’S PRODUCT MIX The Coca-Cola Company offers a wide range of products to the customers including beverages.
43 In the Juice section In the Soda water and Bottled Mineral Water section In the Coffee section MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
Fanta Limca and Sprite: 330 ml can. Thums Up. 500+100 ml free PET bot t l e s Schweppes Mineral Water: 750 ml PET bottles Schweppes Tonic Water: 330 ml can MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .5 litre and 2 litre PET bottles Diet Coke: 330 ml can and 500 ml PET bottle Maaza: 200 ml and 250 ml Returnable Glass Bottle.44 3. 500+100 ml free and 1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles Schweppes Soda Water: 300 ml returnable glass bottles. 200 ml and 300 ml returnable glass bottles.11 PACKAGING DETAILS Coca-Cola. 500+100 ml free. 1.
45 FLOWCHART4. ORGANISATIONAL STRUCTURE OF COCA COLA IN INDIA Chief Executive Officer Vice President Supply Chain Chief Finance Officer Human Resource Director Vice President BSG Regional Vice President (North) Regional Vice President (Central) MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
ORGANISATIONAL STRUCTURE AT THE REGIONAL LEVEL Region Vice president AGM/AOD (Unit 1) AGM/AOD (Unit 2) AGM/AOD (Unit 3) AGM/AOD (Unit 4) Region Finance Region Human resource Region Customer service Region External Affairs Region Cold drink Region Legal Region BSG Region Director/Manager Region Capability Management Region Channel MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .46 FLOWCHART5.
47 FLOWCHART6. DEPARTMENT ORGANISATIONAL STRUCTURE OF TH E SALES AGM/AOD Plant Manager Route to Market Human Resource Manager Finance Manager General Sales Manager Area Sales Manager Channel Manager Area Capability Manager Sales Executive Marketing Sales Trainers Market Developers Key Accounts Distributors and Salesmen MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
48 3. Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products.12: COMPETITORS TO HCCBPL The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Dabur: Dabur in India. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people. The key competitors in the industry are as follows: PepsiCo: The PepsiCo challenge. and Slice. Baby foods and Chocolates. Cola is not the company's only beverage. Apart from food products. PepsiCo sells Tropicana orange juice brands. PepsiCo and Coca-Cola hold together. carbonated softdrink maker. The company's soft drinks include Pepsi. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange. Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. the Coca-Cola Company never ends for the World's # 2. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. Mountain Dew. Gatorade sports drink.8% is held by Coca-Cola and the rest belongs to Pepsi. a market share of 95% out of which 60. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. and Aquafina water. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. to keep up with archrival.
3.49 3.13. The product’s image is loaded with over-romanticizing. SWOT analysis is a technique much used in general managements as well as marketing scenarios. memorabilia. This extremely recognizable branding is Coca-Cola’s greatest strengths. Although domestic businesses as well as many international markets are thriving. hats. the bottling system of Coca-Cola is one of their greatest strengths. It also contains sugar which with continuous drinking may cause health MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . The Coca-cola image is displayed on T-shirts.2 WEAKNESS Weakness of any business needs to be both minimised and monitored in order to effectively achieve productivity and efficiency in their business activities. coke has reported decline in unit case volume in some parts of the world because of reduction in consumer purchasing power and none of these markets are performing upto the expectations. SWOT consists of examining the current activities of the organisation in strengths and weaknesses and then using the external research data to set out the opportunities and threats that exist. 3. its main source of revenue is sale of concentrate to its bottlers. It allows them to conduct business at a global scale while at the same time maintain a local approach. Because coke does not have outright ownership of bottling networks. It is enjoyed more than 685 million times in a day around the world and thus stands as a simple yet powerful symbol of quality and enjoyment. and this is an image many people have taken deeply to heart.1 STRENGTHS Coca-cola has been a complex part of world culture for a very long time. Additionally. The bottling companies are locally owned and operated by independent business people who are authorised to sell products of Coca-Cola company. Coca-Cola on the other hand has effects on the teeth which is an issue for health care.13 SWOT ANALYSIS SWOT stands for Strengths Weakness Opportunities and Threats.13. Coke is no exception.
coffee. Possible substitutes that put continuous pressure on both coke and pepsi are tea. Furthermore. Even though Coke and Pepsi cover 40% of the entire beverage market. Coca-Cola’s brand name is known well throughout 94% of the world. The threat of substitutes however is a very real threat. Of course both Coke and Pepsi have diversified into these markets.50 problems. Being addicted to Coca-Cola also is a health problem. Packaging changes have also affected sales and industry positioning. allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market. 3. the threat of new viable competitor in the carbonated soft dring industry is not very substantial.13.3 OPPURTUNITIES Brand recognition is the significant factor affecting Coke’s competitive positioning. milk and hot chocolate.4 THREATS Currently.13. juices. consumers can easily switch to other beverages with little cost or consequence. This strategy gives coke the opportunity to service a large geographic and diverse area. The primary concern has been to get this brand name to be even better known. The soft drink industry is very strong but customers cant be faithful to it. because drinking of Coca-Cola daily has an effect on your body after few years. 3. the changing health consciousness of the consumers may have an adverse affect. The rivalry between coke and pepsi has produced a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competitors. but in general the company has tended not be affected by new products. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Coca-Cola’s bottling system also allows the company to take advantage of infinite growth opportunities around the world. Consumer buying behaviour also represents a key threat in the industry.
51 PART –B SATISFACTION LEVEL OF EMPLOYEES WITH WELFARE ACTIVITIES IN HCCBPL MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
Workers take active interest in their jobs and work with a feeling of involvement and participation. creation of industrial harmony through infrastructure for health. EMPLOYEE WELFARE 4. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. Employers get stable labour force by providing welfare facilities.52 4. This makes workers to pay more attention towards work and thus increases their productivity. The welfare measures need not be in monetary terms only but in any kind/forms. healthy. accident and unemployment for the workers and their families. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. etc are reduced to a greater extent by the welfare policies. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Labour welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition wages or salaries. The very logic behind providing welfare schemes is to create efficient. Employee welfare includes monitoring of working conditions. loyal and satisfied labour force for the organization. The social evils prevalent among the labours such as substance abuse.1 INTRODUCTION Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. and education and recreation facilities for workers’ families help in raising their standards of living. industrial relations and insurance against disease. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes. medical benefits.
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Dock Workers Act (safety. The employee welfare schemes can be classified into two categories viz. trade unions voluntary organizations and governmental agencies which help employees feel better and perform better. health and welfare) 1986. 4. The non statutory schemes differ from organization to organization and from industry to industry. Mental. Rest rooms. Changing rooms. First aid appliances. Welfare means faring or doing well. Facilities for sitting. 4.. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. Moral. Latrines and Urinals. These include provisions provided in industrial acts like Factories Act 1948. Canteen facilities.2 EMPLOYEE WELFARE SCHEMES Organizations provide welfare facilities to their employees to keep their motivation levels high. Mines Act 1962. Lighting.1 STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Drinking Water. It is a comprehensive term it refers to Physical.2. Spittoons. Washing places. statutory and non-statutory welfare schemes. Emotional well being of an individual.53 Labour welfare refers to all those efforts of employers.
Maternity & Adoption Leave. Medical insurance.2 NON STATUTORY WELFARE SCHEMES Many non statutory welfare schemes may include the following schemes: 1) 2) 3) 4) 5) Personal Health Care.2. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .54 4. Transport facility. Housing facility.
55 RESEARCH METHODOLOGY MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
Each society has its own unique store of resource that differs in type. To understand the employees perception on implementation of welfare measures. other factors of production cannot complete the production cycle and they will become incomplete. 5. Other factors are land. Labour in many cases is the most plentiful resource. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . To build up stable labour force. To know if the employees require more facilities. To know whether the employees are making use of the welfare facilities provided.2 OBJECTIVES OF THE STUDY To understand the welfare measures undertaken in HCCBPL. Labour is not only resource that is necessary to produce goods and services to satisfy our needs. RESEARCH METHODOLGY 5.1 NEED FOR THE STUDY Labour is one of the important factors of the production process. To win over employees loyalty and increases their moral. although many factors influence its productivity. To save oneself from heavy taxes on surplus profit. To develop efficiency and productivity among workers. To study how the welfare measures help in increasing the productivity and job satisfaction.56 5. To offer useful suggestion for improving the effectiveness of the welfare measures. To earn goodwill and enhance public image. To learn how the welfare services provided to employees helps organization to build up a stable work force by reducing absenteeism and labour turn over. quantity and quality. To know how far the welfare measures have served the purpose. to reduce labour turnover & absenteeism. Without labour. capital and management.
every employee has his own expectations and the resulting idea he forms about the measure is his own prerogative. rest rooms. The data collected basically depends on: Primary data Secondary data 5. it is mainly through conversation with concerned change of officers and staff members. If the welfare measures gratified his needs in the way he expects it to. sanitary and drinking water facilities. Maula Ali. And the non statutory welfare measures namely housing facility. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Hence. without any short falls. either individually or collectively. transport facility and recreation it also includes a study on issues like grievance handling and working environment.57 5. In the study. it is safe to conclude that no single factor or attribute of the service can be held responsible for how the employee feels about it. The study is conducted only on employees of HCCBPL.1 PRIMARY DATA COLLECTION The information collected directly with out any reference is primary data. washing facility. 5. Enough care was taken to make sure that the department in which the employees operated in are into way affected the survey or cause the finding to be skewed. which forms universe of the study. storing facility.4 METHODOLOGY Employee satisfaction cannot be defined on the basis of two single words-satisfied and dissatisfied. Any deviation from his intended expectation could leave him dissatisfied thus causing a grievance. he is satisfied.4.3 SCOPE OF THE STUDY The study covers all the statutory welfare measures namely canteens.
g. organizations) from a population of interest so that by studying the sample we may fairly generalize our results back to the population from which they were chosen. Here I have chosen random sampling method to carry out the research. Web sites. people.58 The data includes: Conducting personal interaction with the department of the company. it has to be limited because of time constraint even than the sample size is not considered to be small it is enough to draw conclusion.2 SECONDARY DATA COLLECTION Secondary Data is that data which has been gathered for purposes other than addressing the issue or problem currently under study. Individual observation. 5. Interactions of employees directly the information gathered or questionnaire.5.4. 5.. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .1 SIZE: A sample of 30 employees has been selected at through it looks to be a small sample keeping in view the large number of employees. Journals. 5. The various sources of secondary data collection are: Text books.5 SAMPLING Sampling is the process of selecting units (e.
6 LIMITATION OF THE STUDY: There were some limitations with respect to the analysis and data that may affect the accuracy of the results.59 5. Like any other project report my report also is subject to human fallacies.2 SCALING TECHNIQUE Scaling technique used is Likert’s scale. A Likert item is simply a statement which the respondent is asked to evaluate according to any kind of subjective or objective criteria. One month is major constraint in collecting data. More so when an open questionnaire is given they fear of possible discipline at a client if they speak anything unpalatable. However it is feared that any error occurred in selection of sampling will directly affect the final outcome/conclusion. generally the level of agreement or disagreement is measured. Lastly I wish to conclude that the project report is applicable to the company under study only and also to the particular period of study. I have interviewed very few employees in the organization.5. Often five ordered response levels are used. 5. measuring either positive or negative response to a statement. Employees generally may not speak anything against management. Likert scaling is a bipolar scaling method. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
60 FINDINGS AND INFERENCES MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
FINDINGS AND INFERENCES 1) Do you agree that welfare schemes play an important role in increasing the employee’s loyalty and motivation? No.61 6. Welfare activities increase the satisfaction levels of the employees. A well motivated employee would always be loyal towards its organisation and work towards improving the productivity. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . which leads to increase in motivation. of Respondents Strongly agree Agree Cannot say Disagree Strongly disagree 13 17 0 0 0 Percentage 44 56 0 0 0 GRAPH 1 Inference: All the respondents agree that welfare activities play an important role in increasing loyalty and motivation.
Proper safety measures are taken by the organisation for the employees working in the plant. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 10 17 0 3 0 Percentage 34 56 0 10 0 GRAPH 2 Inference: Most of the respondents are satisfied with the physical conditions at the work place. Cleanliness is maintained in the entire place. Thus it can be inferred that the physical conditions at HCCBPL are good. Only 10% are dissatisfied.62 2) Are you satisfied with the physical conditions at the work place? No. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
The machineries are checked on regular basis for any defects. Thus it can be inferred that respondents are happy with the safety measures which are taken. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .63 3) Sufficient safety measures are taken in the plant? No. like inside the plant are trained on safety measures and all the required safety equipments are provided to them. The employees who work in hazardous areas. Very few disagree. of Respondents Strongly agree Agree Cannot say Disagree Strongly Disagree 4 20 0 6 0 Percentage 14 66 0 20 0 GRAPH 3 Inference: Most of the respondents agree that proper safety measures are taken in the plant.
Only few are dissatisfied. Drinking water facilities is available for employees near their working places itself.64 4) Are you satisfied with the drinking water facility? No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 9 17 0 4 0 Percentage 30 56 0 14 0 GRAPH 4 Inference: Maximum number of the respondents are satisfied with the drinking water facilities. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
65 5) Sufficient number of lavatories are provided. No. but still some respondents were unsatisfied because they needed more lavatories. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . of Respondents Strongly Agree Agree Cannot say Disagree Strongly Disagree 4 13 2 11 0 Percentage 14 43 7 36 0 GRAPH 5 Inference: Many respondents disagree that sufficient lavatories are provided. The number of lavatories were in accordance with the Factory’s Act 1948.
66 6) Mention your level of satisfaction to the facility of restroom provided by HCCBPL? No. Thus it is inferred that management should provide more restrooms and maintain it in good condition. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 5 12 0 13 0 Percentage 17 40 0 43 0 GRAPH 6 Inference: Maximum number of respondents were satisfied with the restroom facility but quite a lot were unhappy also. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
The lavatories were cleaned just once in a day. Thus it is inferred that the lavatories should be cleaned more frequently for the satisfaction of the employees.67 7) Proper sanitary conditions are maintained in the lavatories No. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . of Respondents Strongly agree Agree Cannot say Disagree Strongly Disagree 4 12 0 14 0 Percentage 13 40 0 47 0 GRAPH 7 Inference: Many respondents were unhappy with the sanitary conditions provided in the lavatories.
68 8) Management accepts and responds positively for the demands of employees regarding welfare activities and acts accordingly. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Thus it is inferred that grievance handling of the management is good. No. of Respondents Strongly Agree Agree Cannot say Disagree Strongly disagree 2 23 0 5 0 Percentage 7 76 0 17 0 GRAPH 8 Inference: Maximum number of the respondents agreed that the management responds positively to their demands regarding welfare activities.
check-ups. 67% of the employees benefit from the employee referral scheme. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . 80% of employees agree that they get medi-claim insurance schemes. of Respondents Regular Medical Check-ups Maternity and adoption leave Medi-claim insurance scheme Employee referral scheme 27 13 24 20 Percentage 90 44 80 67 GRAPH 9 Inference: a) b) c) d) 90% of the employees agree that the company gets them regular medical 44% of employees get maternity and adoption leaves.69 9) Mention/Tick on the facilities provided to you by the company No.
of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 8 18 0 4 0 Percentage 27 60 0 13 0 GRAPH 10 Inference: Maximum number of the respondents were satisfied with the canteen facilities provided. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .70 10) Are you satisfied with the canteen facility provided? No. The food provided is prepared in hygienic conditions and variety is provided.
71 11) Mention your level of satisfaction with first-aid facilities.aid room is provided and the first-aid facilitator is available during the working hours. No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 8 18 0 4 0 Percentage 27 60 0 13 0 GRAPH 11 Inference: Maximum number of the employees are satisfied with the first-aid facilities provided. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . A separate first.
of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 12 15 0 3 0 Percentage 40 50 0 10 0 GRAPH 12 Inference: Maximum number of the respondents are satisfied with the welfare activities provided at HCCBPL. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .72 12) Are you satisfied with the welfare activities conducted by HCCBPL? No. Thus the welfare activities provided by the organisation are good.
The welfare programs improve self confidence and imbibe positive thinking among the employees. Management is very much concerned for the workers welfare. The employer. The HCCBPL provides various non-statutory welfare schemes also such as medi-claim insurance and regular medical check-ups. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . Canteen facility is very good. Most of the people have positive attitude towards the organization. Staff and workers were fully involved in their work during shift hours.1 FINDINGS The organization has good working environment provided by the management. Different welfare programs are conducted in different departments.73 6.employee relations in this HCCBPL is very good. HCCBPL was maintaining good relation between employee and employer. They maintain good safety measures to their employees as well as for the workers in the organization under the welfare programs.
The notices should be put up in regional language also. The frequency of the employee welfare facilities should be more. Depending on the department the employee welfare facilities should be conducted for the employees.2 SUGGESTIONS Some of the employees think that welfare activities should be improved by the management in following: Detailed welfare facilities should be more. Organization has to improve the continuous employee welfare facilities like safety measures.74 6. Organization should be able to understand the needs of every department welfare facilities. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
75 CONCLUSION MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
The welfare activities carried out in HCCBPL are very good and the employeremployee relations are maintained in good terms. In 2005 it was divided into CCI (Coca Cola India) and HCCBPL (Hindustan Coca Cola Beverages Private Ltd. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . CONCLUSION Coca Cola is a multinational company and a leader in the non-alcoholic beverage in the world. HCCBPL is into bottling of the beverages produced.76 7.) in India. The organisation has good working conditions and the employees were highly motivated. CCI produces the syrups for the production of the beverages. Various welfare activities are conducted in different departments of the company to maintain the employee’s loyalty and keep them motivated.
77 BIBLIOGRAPHY MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
coca-colaindia.html 5) http://food-beverages.exportersindia.org/wiki/The_Coca-Cola_Company 3) en.com 2) en.com/ 6 ) Industrial Law by PL Malik 7) http://www.wikipedia.com/human-resources-articles/employee-welfare-999627.articlesbase.78 8.wikipedia.org/wiki/Labour_law 4) http://www.net/ MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) . BIBLIOGRAPHY 1) www.indianfoodindustry.
79 ANNEXURES MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
(a) Strongly agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree 3) Are you satisfied with the physical conditions at the work place. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .80 QUESTIONNAIRE Name:_________________________________________ 1) (a) (b) (c) (d) (e) 2) Are you satisfied with the welfare activities conducted by HCCBPL? Highly satisfied Satisfied Cannot say Dissatisfied Highly dissatisfied Do you agree that welfare schemes play an important role in increasing the employee ‘s loyalty and motivation. (a) Highly satisfied (b)Satisfied (c) Cannot say (d) Dissatisfied (e) Highly dissatisfied 4) Sufficient safety measures are taken in the plant.
81 (a) Strongly Agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly Disagree 5) Are you satisfied with the drinking water facility provided (a) Highly satisfied (b) Satisfied (c) Cannot say (d) Dissatisfied (e) Highly dissatisfied 6) Sufficient number of latrines and urinals are provided (a) Strongly agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree 7) Mention your satisfaction level to the facility of restroom provided by HCCBPL MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
82 (a) Highly satisfied (b) Satisfied (c) Cannot say (c) Dissatisfied (d) Highly dissatisfied 8) Proper sanitary conditions are maintained in the lavatories (a) Strongly agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree 9) Management accepts and respond positively for the demands of employees regarding welfare activities and acts accordingly (a) Strongly Agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree 10) Mention/Tick on the facilities provided to you by the company MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
83 Regular medical check ups Maternity and adoption leave Medi-claim insurance scheme Employee referral scheme 11) Are you satisfied with the canteen facility provided? (a) Highly satisfied (b) Satisfied (c) Cannot say (d) Dissatisfied (e) Highly Dissatisfied 12) Mention your level of satisfaction for first-aid facilities (a) Highly satisfied (b) Satisfied (c) Cannot say (d) Dissatisfied (e) Highly Dissatisfied MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) .
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