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MANAGEMENT PROJECT
TITLE: COCA-COLA
SUBMITTED BY:
ARSLAN MAQSOOD L1F10BBAM0110
MUHAMMAD AHSAN L1F10BBAM2129
SECTION : L
SUBJECT: MANAGEMENT
SUBMISSION DATE:
24-05-2011
SUBMITTED TO:
PROFESSOR FAROOQ ANWAR
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This report deals with the Management Functions of the Coca-Cola Beverage Limited. The
material in it has been chose to help the reader to get an insight of the Coca Cola Company. The
report includes Planning, Organizing, Leading, Controlling Functions and the sub headings
which are related to these functionalities.

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Coca-Cola Beverage Industry started in 1886 in Atlanta, but it was in 1895 when coke was
started to sell in bottles to the public. So from its mere beginning in 1886 the Brand got popular
and famous among people and at the present time it has turned to be one of the biggest
multinational company in the world and the most consumed Brand worldwide.

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Coca-Cola Beverages Pakistan Limited (CCBPL) started its work officially in Pakistan in May
1996. They started by acquiring the National Beverages LTD Karachi and then went of
purchasing bottler companies in Hyderabad. Coca-Cola plans to buy each SME bottler company
in Pakistan to bring it under the title of the multinational Coca-Cola beverages and to increase
the market share in Pakistan as there are a lot of opportunities opening for them in the market.

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Currently CCBPL is dealing in 5 major products in Pakistan.

Ñc Coke
Ñc Fanta
Ñc Sprite
Ñc Kinley (Pure drinking water)
Ñc Pulpy Orange (Fruit Juice)

These products are sold in the market in different containers ranging as follow:

Ñc 250 ml
Ñc 250 ml (Disposable)
Ñc 500 ml
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Ñc 1 liter
Ñc 1.5 liter
Ñc 2.25 liter

c IN PAKISTAN DIFFERENT SLOGANS HAVE BEEN USED IN THE

PAST YEARS, INCLUDINS EVEN SPECIAL TAG LINES FOR
SPECIAL EVENTS LIKE WORLD CUP; AN EXAMPLE OF WHICH IS
AS FOLLOW:

Ñc oALWAYS COCA COLA´

Ñc oDIL HAI TO MANGO OR´
Ñc oCOKE SE KHULAY KHUSIAAN´ (OPEN HAPPINES)
Ñc oCOKE CRICKET JUNNON´ (FOR WORLD CUP 2011)

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Strategic planning has become a great part of an organization¶s goals in fact organizational goal
are achieved through this strategic planning. To certain people it may seem new but ever since
the advent of management planning has been its foremost priority because without planning we
can move nowhere and do nothing except wasting time, money and power. Plans help other
management functions to be accomplished, like a plan will be used to organize the further work
schedule, similarly a plan will be used by a leader to lead the organization because if he doesn¶t
has a goal, a mission, and a strategic plan to achieve that plan than he can only lead his team go
astray. Then the plans are used after finishing a certain job in the controlling cycle for managers
use predefined set of standards mentioned in the plan for controlling and analyzing the job done.

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Ñc A strategic plan, then, is the bridge to the future, which an organization uses to lead from
what it is to what it envisions it can become.

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Ñc All the goal setting within the company is done by the top management as the company
contains a very flat hierarchy consisting only 3 numbers of layers. The company¶s
objectives can be classified as follow:

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Although strategic goals are made on long-term basis for many companies but for Coca-Cola it
only has a span of only three years. These goals and objectives are made by the Top
Management by interaction with the Headquarters in Singapore. However, these plans are
reviewed annually at the account of changing environmental conditions day by day. These goals
include:
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Ñc To continue to be an organization providing the quality products to the valuable

customers.
Ñc To select and retain the professional people for the organization.
Ñc To project an outstanding corporate image.
Ñc To satisfy the customer through extra ordinary service and an excellent service along
with the complete tactical and operational support.

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The Top Management devises these goals on annual basis after the consultation with lower level
employees. Once these goals have been made, different departments of the company are sent
their goals and are divided into quarterly or monthly basis to have a proper channel of check and
balance. This makes it easy for the company to manage their control cycle. Present tactical goals
are as follow:
Ñc To increase the revenues by 20% as compared to last year.
Ñc To increase the total retail customers by around 10%.
Ñc To increase the market share by 5%.
Ñc To reactivate the discontinued customers by 30%.

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Operational goals are made by the Top Management after the consultation of certain factors with
the lower level employees. In Coca-Cola Beverages Management By Objective (MBO) system is
used that allocates each employee its duties in the Master Plan and every employee is expected to
fulfill those duties on time and there are certain set of standards already set to evaluate each
employee on individual basis to pay him the compensation.

For Example: A sales man is given following tasks, duties and certain targets: Each salesman has
to oversee around 100-125 outlets. The frequency of visits to each outlet depends upon the sales
of that particular outlet. Normally, a salesman has to visit a single outlet thrice a week i.e. every
alternate day. This means that a salesman visits at least 20-30 outlets per day.

The salesman has three basic functions to perform:

Ñc To find new customers,

Ñc To retain existing ones,
Ñc To bring back the discontinued accounts.
Ñc Each salesman has to bring in at least three new accounts every month. These may either
be new customers or the reactivation of the discontinued accounts.
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Sales Manager are held responsible for achieving these operational goals, these managers are
given certain hold over their employees so that they can held accountable their employees for the
activities they are performing and achieving these goals.

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CCBPL follows the centralization format in decision making. All the decisions regarding
economic factors, feasible solutions, etc. are taken by the Top Management and they spend their
time in improving the company¶s charts and bars. Top Management considers only itself to be
reliable and competent in making decisions of such tasks. Line Managers also have their say
regarding the matters of daily routine, in establishing and completing the goals of productions
and else on daily basis but still they require an approval or consent from their general manager.
The Top Management usually takes following decisions:

Ñc The package positioning

Ñc Trade discounts
Ñc Advertisements
Ñc Price reductions
Ñc Distribution

While hiring new employees Top Management conveys its Human Capital Department about the
testing, hiring process, and many other factors. After testing, managers themselves take the
interviews of the personnel and final decision goes on for Top Management. CCBPL although
follows decisions from its Top management but the lower level and middle level managers
provide them with the input and they are more than welcomed to provide suggestions and
analysis on current work situations. The Management is very cooperative and its employees are
asked to come up with new ideas to help the organization grow and achieve its organizational
goals.

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CCBPL works on the approach of functional departmentalization. The company has been
divided into different functional departments which are overviewed by the General Mangers.
This departmentalization introduces work specialization in the company and the employees learn
to tackle difficult situations and develop a skill for Problem Solving. These departments can be
classified as follow:
Ñc -,# c$!  is responsible for the overall production of the CCBPL.
There are 8 plants of CCBPL operating throughout the country. Different areas are
distributed the products on the basis of nearness so as to reduce the transportation
cost.
Ñc
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related to the working environment of the employees and the issues related to the
labor unions.
Ñc  c -c%. "c$!  is responsible for the making the product
available in the market and to deal with the issues related to the advertisements of
the products.
Ñc
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workers, selecting the professionals and makes them happy so that they should
stick to the company. The Human Capital department deals with management
level employees¶ grievances.
Ñc 6  #c$! cdeals with the overall costing and pricing of the products.
This also handles the import related issues of the company. Accounting
department assists the sales department in making invoices and payroll entries.

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As mentioned earlier, CCBPL has a high level of work specialization as every manager is
performing only those tasks which he should be in the mentioned plan and is held responsible
only for them. The level of activity is quite high due to challenging tasks and promotions,
salesman barely find a chance to fell boredom on monotony.

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There is a great role of sales manager in the company. Every salesman reports to his respective
sales manager. Managers check the performance of their respective salesman and give them
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timely feedback. They also serve as a guide and help salesman whenever it is needed. These
salesmen are monitored on timely basis to get the best out of them.
Every employee of the company has his own authority and responsibility. Employees are
awarded freedom as well as they are held responsible for the tasks they are performing. But
mangers play a vital role in the company for every employee stands before them for any matter.

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Great examples of delegation are seen in CCBPL, but as the managers delegate their services
they must have some good authority and responsibility for at the end of period they are held
responsible for the tasks of their subordinates, to whom services had been delegated. For this
purpose proper instruction and guidance is required managers on their behalf do some of the
working but the main work is done by the Human Capital Department which trains the
employees to work efficiently and effectively so that they don¶t let their managers go down and
produce the best out of themselves.

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The span of control in the organization is quite low. Only 3-5 employees report to their managers
at max. This amount is low because the tasks been performed in the company are quite different
from each other and the management considers it to be low for efficient and effective working
around the company.

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In CCBPL managers have free hand to use whatever they want from resources under their span
of control. They may use raw material, workforce, capital or any other form of resources. But if
they want to share the assets of somebody else then they must take permission from the
concerned manager and then perform whatever work they want to on it.

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Coca-Cola usually hires employees on need basis. Whenever a supervisor or sales manager needs
a staff he may search for the options but first the approval is sent to the general manager to hire
the new sales person. CCBPL first searches for the option within the organization so that a bond
of family is created and they can provide maximum benefits to their employees. If a suitable
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option is not found then company looks into its database and even if then its unlucky then it
comes for the advertisement in the newspaper which is taken very quickly.

Selection process is quite simple and easy. The foremost requirement is the education, candidates
are screened on this basis after this screening stage candidates are called for the aptitude test in
which they are tested for simple arithmetic and general knowledge questions, in some cases
spoken and written English may also be required. After that candidates are called for interviews
by sales and HR department, which are a sort of formality just to confirm the information the
selected candidates have provided. After that they are required to submit four securities so that
the company can trust on them and start a good relation with them.

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Coca-Cola puts great stress on employee training for if the salesman is not well trained he may
produce difficulties for the company and come up with broken relationship of years with the
customers. Salesmen are made well aware of the company¶s policies, rules and regulations, and
ethics and usually they are asked to do work under some experienced salesman so that they come
to know about the work. Besides this CCBPL also organizes in-house training in which sales
personnel are given lectures, seminars, and different techniques by their seniors or General
Managers. They tell them about the sales techniques, the changing environment around us, the
economy and different day to day to factors necessary for a salesman to learn. Several virtual
workshops are held in which videos are shown to employees to help them brush up their selling
skills and techniques.

Company holds a very good in-house promotion. Employees are promoted on their objective
evaluation which managers then analyze; above all the wages that company pays to its laborers
are more than the normal industry wages and the fringe benefits and incentive plans which Coca-
Cola holds to keep its employees working in happy conditions and keep them attracted towards
achieving the organizational goals.

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Coca-Cola gives great importance to its General Managers, because they hold a top position in
the organization. They are required to take major administrative and general decisions and also
these managers are responsible for leading and motivating their subordinates and staff people.

Ñc Increasing business with a coordinated approach by helping each other in its operations.
Ñc Encouraging the employees to give new ideas so as to increase the customer satisfaction.

Due to the presence of delegation and participation the Democratic Leadership Style is used
since managers have to run the organization by involving their workforce and considering them
as an important part of the organization. Sales and Marketing Departments make the use of team
work to keep the interest of their fellow employees developed. Juniors are not considered
inferiors rather they are given a good dosage of experience and help that they start working on
their own without the words of their managers. Performance awards are also there for lower level
employees so that they perform at their best and work at least to get the awards.

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As mentioned earlier promotions are given on performance in CCBPL, so the employees gets
motivated to work hard and achieve that level of performance so that they may prosper within
the organization. Also amount of wages is relatively higher than a normal industry wage that
creates a major difference not only the old employees work faithfully but the new ones are
motivated to become part of such a good organization whose main priority is lower level
employees. Managers give their teams¶ timely feedback on their team¶s performance and keep
them motivated by helping them personally without any rules and restrictions also those who
want to come forward are given a shoulder, a step to make their dream come true.

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Open culture is the basis of communication in the organization. Employees are consulted by the
top management for the decision process and the chain moves on. Managers also cop up with
their teams and their offices are open 24/7 for those who want to remove any confusion.
Sometimes even the Grape Vine structure is used too so that the management can get the
feedback of the employees about their working, which helps managers a lot in making further
decisions.

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Top Management takes great care of the Organizational Rules & Regulations which ought to be
followed by every personnel of the company. Every employee is made well aware of the norms
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and values of the organization and formal set of rules is strictly followed so that some people
may not benefit from the name of company and turn it into a dirty fish in front of the world.

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Evaluation is done on the objective basis and on the predefined set of rules. Managers measure
the performance of workers and analyze them against the pre set standards in the planning
process and if some employees fall under the required level then corrective action is taken
against them they are questioned, helped, reviewed, and given any sort of assistance so that they
may not fall astray.

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Sales persons contact market developers of there are for assistance. They may come at any time
to seek assistance and to know anything they want. Also they are requires to take record of their
daily activities and report them to the marketing developer. These activities include attendance,
total sales, punch card readings, time spent on customers, orders brought, etc. all these
information takes a good track of them for they can be analyzed through this data. Sales
department also gets help from this data in managing the wages and salaries of sales personnel.

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Sales persons are evaluated through their performance and good performances are rewarded with
promotions or monetary awards. Sales persons give their best at the work so that they become
legitimate for the promotions and awards. Also there are awards like best seller, best manager,
best marketing developers, all these motivate the employees and they work at their best to
achieve them and also a feeling is developed in them hat someone is caring for them so they try
to achieve their sales targets, punctuality, customer orders and many more factors.

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CCBPL being a multinational has all the good traits of good management functions. All of them
are properly devised and implemented in the organization. Planning holds a great position in the
aim of the company; its planning makes it different from other multinationals. Annual business
plan of the year represents a great mind set behind the management of the organization. The
division of departments within the organizations makes it profitable and increases both its
efficiency and effectiveness.