Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Business Management

Assignment: Managing Business Activities to Achieve Results

Mr. Dudley Ofori

I.D No: 105649 NIPUNA WEERAKOON

Higher National Diploma

Page 1

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Executive summary Acknowledgements Introduction to organization

1.1 Coca cola functions and Culture 1.2 Coca cola Mission and Vision 1.3 Coca cola objectives

Table of contents

Chapter I .......
07-09 10 11 12 14-15

1.4 Principles and models of coca cola process management 1.5 Quality Gateway

Chapter II .
2.1 Management and responsibilities 2.1.1 Function specific skills and knowledge required at Position Entry 2.1.2 Management decision type and responsibilities 2.2 Leadership and Coca cola 16 17 18-19 20

Chapter III
3.1 Total Quality Management 3.1.1 TQM vs. Six Sigma 3.2 International Standard Organization (ISO) 3.3 Performance Management 3.4 Change management 21 22-23 24 25-26 27-28

Chapter IV ..
4.1 Health and Safety at Coca cola 4.1.1 Food & Drink Safety and Law 29 29-32

Bibliography Appendices

Page 2

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Acknowledgements

I would like to acknowledge the advice and guidance of Mr. Dudley Ofori. Thanks very much for Mr. Dudley Ofori provided lecture for students every Tuesday, and he patiently explained and analyzed from the most basic knowledge, help me step by step understand the questions of assignment and how to do it. Also I want to thanks for my classmates, thanks for your enthusiasm to help me solve the problems which I meet during the assignment.

The major materials for the research from the library books, so thanks college library support books and social library staffs introduce some books for me.

Nipuna Weerakoon,

Page 3

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Executive Summary
This report is prepared by the author addressing various influences that will impact on business activity at Coca-Cola. Furthermore, it will relate to other areas such as company vision, Mission management responsibilities and quality and Total quality development that are essential to achieve aim and objectives in their work schedule.

This report has been divided into four chapters which have been discussed briefly as follows: Chapter 1 about, Process management at coca cola, Company aim and objectives and Coca cola current quality management methods. Chapter 2 highlight in Coca cola companys management, responsibilities and leadership. Chapter 3 emphasizes Total quality management (TQM), International standards such as ISO, performance management and change management. Finally chapter 4 highlights Health and Safety and Food drink safety law which related to Coca Cola Company.

Page 4

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Introduction

Managing business activity is a great opportunity to every organization for increases overall business performance and understand modern professional quality management and quality assurance. Business activity management has a special role in both strategic change and operational run. Strategic and operational management levels are involved when managing different activities, the strategic one focuses on the whole business system and the operational one on single processes and projects. To establish quality strong level at organization it necessary to understand and analyze company vision, mission, culture and the structure. Finally after manage all activities the objectives must be fulfill to be success. Business activity management consists of planning and controlling then improving the operations, and cover quality. Most practical general model for business activity management is PDCA (Plan + Do + Check + Act) below diagram will describe that,

Figure 1: PDCA, http://www.qualityintegration.biz/BusinessProcessManagementShort.html

Page 5

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Back ground of organization: Coca-Cola is one of the worlds largest carbonate drink company. The coke Company selling, more than 3000 products, around 200 countries in the world. Coca cola was invented by John Pemberton in late 19 century, after that it bought Griggs Candler who was a business man, because of coca cola marketing tactic it was lead of the world soft-drink market entirely the 20th century. The Coke Company mainly focuses on the non-alcoholic carbonate beverage market so they producing a deferent range of drinks around the world such as Juice drinks, Soft drinks, Tea and coffee Sport drinks and Water. Coke is the worlds leading manufacturer also distributor and marketer share of non-alcoholic beverages; the company everyday selling over six million beverages.

Coca-Cola selling over 3000 product (full list available at Coca Cola Website) all over the worlds here can see most famous product which selling UK.

Figure 1.1: Coca cola Brands, http://www.inminds.com/img/logos/coca-cola-brands-uk.jpg

Page 6

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 1.1 Coca cola functions and Culture: Any organizational structure is a mainly hierarchical method of helpers of qualify that confirm and contribute to serve for one common aim. There are six deferent organization structures, The Functional Organizational Structure, The Geographic Organizational Structure, The Form/Product Organizational Structure, The User/Market Organizational Structure, The Hybrid Organizational Structure and The Matrix Organizational Structure. (Refer Appendix 1 for more information). Daft (2008),

Formal Organization Strategy and goal Structure, norm and procedures Products and services Management and Financial wealth

Informal Organization Beliefs, Attitudes and Values. Leadership style and behavior Organizational norm and culture of behavior Politics, Conflicts also power. Informal body

Figure 2: Compare of informal and formal organisations, Field work

Here at coca cola they follow a combination of structures for the benefit and the ease of the company. The main structure they follow is a formal structure, where everything runs in a plan method, rules and regulations are followed. Coca cola also follows a flat structure where the CEO of the company will speak to its employees to show that he cares about them. As shown by star bucks, the CEO makes 9 calls every day. And one of them is to the employee of the day. This shows that they actually care about the employees and not only about their profits. Formal Structure Tall structure More capitalized on centralisation Over 92800 of employees all around the world Narrow span of control Multinational organization Higher chain of command

Page 7

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Page 8

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Culture at Coca Cola

One company At coca cola they have a shared lust. That is transforming the Coke Company. They also create an environment where can find their way with free ideas. Helps is always close at hand and pride wake them to grow. Every day they develop meaningful and valuable learning space and anticipate the skills and prosperity they will need to found their future demands.

One Team As employees of Coke say, our job is to refresh the world and we take it very seriously. They also know that to achieve this, it requires the vision, streamline, and lust of everybody inside company. To increase their positive thinking they engage in a friendly conversation with a different member of staff every day so that the team will get stronger as they grow.

One Passion At coca cola they have a shared lust. That is transforming Coke Company. The employees at Coke try their best to give the joy of Coke Company outside its walls of the company. They believe in a workplace that cuddles all of their staffs unique abilities. They are also committed to help communities and they are dedicated to save and protecting the planet.

Page 9

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 1.2 Coca cola Mission and Vision: Rader (1994) told that published mission statement act as a proof of correctness when talking mission every organization can ask basin question what business are we in . Coca cola mission gave a way to judge the appropriateness of all potential activities that the coca cola might engage in. bellow two diagrams describe that coca cola mission and vision statement.

Integrity Always doing what is right Our Values Service

Exceeding the expectation of coke customers. Our communicate and coke people

Passion Driven to be the very best in what we do and how we do it.

We Aspire To Live By these Values Every day Page 10

Quality Excellence every time

Results Winning as a team in the market place and the workplace. Fun Enjoy what we do every day.

Respect Listening understanding and appreciating others.

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 1.3 Goal and Objectives:

When talking about coca cola goals and objectives there are various kind of objectives under deferent department also Coca Cola Company is world largest manufacturing and distributing Soft Drink Company they have already achieved objectives and day to day running objectives hens to easy to identify here author briefly describe that key objectives which necessary to achieve to keep their strength.

Page 11

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 1.4 Principles and models of coca cola management of process : Management process This process is that operating in management system. Normally process includes corporate governance and strategic management. In this stage top management suppose to identify input and output activities of whole industry. Process of Operational Operational process are key activities in any organization this is the place which most active and important. Normally operational processes are manufacturing, purchasing, marketing and facilities. Process of Supporting Supporting process is activity or function that helping day to day operation of the organization. Such as sales, accounting, maintenance and communications.

Typical information intensive processes

Marketing

Lead generation, advertising, formulating new products and services

Sales

Bidding for new work, managing customers etc,

Operations/Project

Undertaking new product, producing product

Support/Maintenance

Looking after existing customers, maintaining assets

Managements

Overseeing the whole business, making high level decisions

Administration

Finance, HR, QA, etc Figure 4: Typical information intensive processes, (Field work)

Page 12

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon O Coca cola Manufacturing and distribution process: Below diagram shows that part of operational activity in coca cola which running manufacture and distribution system.

Figure 5: Coca cola Manufacturing and distribution process http://www.cokecce.com/brochures/cce_2005/02_atglance.html O Coca cola Value chain analysis:

http://www.va1ue-chain.com/1/COCA-COLA-VALUE-CHAIN/screenshot.gif

Page 13

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

1.5 Quality Gateway : Quality is Enjoying the customer by fully meeting their needs and hope.Coca cola is world top soft drink company they producing 1.6 million products a day so they must maintain their products quality. Coca cola mention that providing quality products to the market is company highest objective. Coca cola have their own brand quality management system name call TCCQS, TCCQS develop by global cross-functional team and endorsed by senior management of coke. TCCQS also combined with international quality system like ISO 9000.

Coke expect their quality in this areas, Quality expectation

Also coca cola expect from suppliers same quality standard which can full fill coke objectives To make sure there quality practice they measure it two areas such as Good manufacturing practice and Good laboratory practice.

Page 14

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Coca cola quality requirement for suppliers: Coca cola should authorized their suppliers by identifying following quality areas, Laws and Regulation: Supplier should meet coca cola laws, rules and regulation in manufacturing system. Child Labor : Supplier do not use child labor Forced labor : Supplier do not use forced labor Abused of labor : Supplier do not abused labor Freedom of Association and collective bargaining : Supplier should full filed this law Discrimination: Supplier should agree with local discrimination law. Environment: Supplier should protect all environment laws.

Also Coca cola mainly expect this quality standard among their product and services

I.

Process monitoring and controlling: Suppliers and coke must ensure all products are manufacturing according to company specification.

II.

Finished product management: Finished product or packaging products should create to company standard.

III.

Storage and transporting: Transport method and storage system should protect from hygiene regulation and safe method.

IV.

Security: Supplier or coke company must make sure there products and labor force security at any time.

Page 15

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 2.1 Management and responsibilities: According to U.S. Geological Survey Manual (1988) the objective of the personnel management evaluation is to assure that human resources are being used efficiently and economically. Most companies spend millions of pounds a year to bring their work force up to speed. Most companies prefer to spend large amounts in training its workforce so they can benefit in the long run. Coca cola also dose the same investment to bring their work force up to speed. Top Executives Marketing Manager Finance Manager Production Manager R&D Manager

O Main approaches to organization, structure and management

Figure: Main approach to organization management and structure, Field work Coca cola approach combination of classical and Human Relations. Human relation approaches describe about leadership, behavior of employees and groups of organization. This classical approach and Human relations approach help to coca cola to gain their product in market among their competitors. O Coca cola top management Job title breakdown :

Figure 6: Job Title breakdown, http://www.hrssoutsourcing.com/uploadedImages/EventRedesign/USA/2012/May/18172006/ Assets/job-title-breakdown.gi

Page 16

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

2.1.1 Function specific skills and knowledge required at Position Entry:

Inside the coca cola organization there has been operating different type of activities in different department so when required staff to the coca cola management they hope deferent knowledgeable skills for each works. Bellow describes that specific skills and knowledge required.

Page 17

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

2.1.2 Management decision type and responsibilities :

There are basically three main type of decision such as strategic, Tactical and operational

Page 18

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Strategic level (Senior management)

Tactical level (Responsible Middle Management)

Operational level (Responsible Junior Management)

Figure 7: Level of coca cola management Decision Making, (Field work)

Example, According to coca cola

Strategic

Tactic

Operational

Expand market share Develop new price Extra new product by establishing a new structure to attract one due to increase in areas customers demand

(Refer Appendix 2 for more information, Board Mission and Director Responsibilities)

Page 19

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 2.2 Leadership and Coca cola: Leadership is a process of social impact in which one person can enlist the help and support of others in the performance of a common organizational goal. The concept of leadership is relevant to any aspect of ensuring effectiveness in organizations and in managing change.

Figure 8: Qualities of a leader, Leadership qualities, Oxcel Some Qualities of a leader should be Communicate, Vision, Integrity, Honesty, Dedication, Magnanimity, Humility, Openness, Creativity, Fairness, sense of humor, Assertiveness. Every leader will not have most of these qualities. When coca cola requiting the person for top management to bottom management they expect those quality from each person.

Page 20

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 3.1 Total Quality Management Total quality management is way for manage future. This found in 1950s and nowadays most famous method to manage total management process. Total quality management is place which can involve management and an employee to give continues improvement for product and services. Its support to help wasteful activities in organization. TQM tool must be practice in all department every person such as marketing, manufacturing, sales, purchasing etc,

Figure 9: TMQ Process, http://4.bp.blogspot.com/_5NhPekd5TdE/S627H7_QxI/AAAAAAAAAXg/Zu0BDlgxpVk/s1600/TQM_MODEL.png

Page 21

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 3.1.1 TQM vs. Six Sigma Six sigma is business improvement method it can use to manage company total quality standard. There are six variables which can describe define, deter mine company goal and current process, Measure is identify current performance and collect data, Analyze is identify actual reason, Improve is determine appropriate solution and final stage Control is main the gain achieve positive process.

Figure 10: Six sigma model, http://www.i360institute.com/files/image/DMAIC_roadmap_75.gif

Page 22

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon O Below chart shows that differences between TQM and Six Sigma

Page 23

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 3.2 International Standard Organization: International standard is high value to any organization. Most famous standard one is ISO 9001 that is measure quality standard. ISO 9001 can achieved any new business if they meet quality requirement. International standard awards can benefit to organization deferent way such as reduce mistake, achieve high targets, market coke business very effectually, enter new market sector etc, O Below chart shows that four element of the ISO 9001:2008 standard.

I.

Management responsibility

According to the customer needs and business objectives top management need to support the quality system. People and work environment need to fulfill and improve with quality system. Design sales, production and purchasing activities according to what customers need.

II.

Resource management

III.

Product realization

IV.

Measurement analysis and improvement

Make sure company and customer both part satisfied with company activities.

O Coca cola management system standard, Quality Management at coca cola (ISO 9001) Food Safety at coca cola (ISO 22000) Environment Management coca cola (ISO 14001) Occupational Health and Safety at working place (OHSAS 18001)

Page 24

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 3.3 Performance Management: The record of outcomes produced on specified job functions or activities during a specified time period (Benardin 2006) Simple as the definition provided, Performance management is the process whereby an organization fixed the parameters within which investment, programs, and acquisitions are to be reached in order to get the desired results. In a business environment there are two major that are internal and external sector. The Internal and External environments affecting the business can be classified as follows. The internal environment factors are internal rules and regulations, Work ethics, Relationship at work, Change. The external environment may include Economy, political and legal. Ian Worthington, (2006). There is deferent kind of tools to identify company performance below shows benchmarking process to identify cola performance.

Figure 11: The Benchmarking Process http://www.change-management-toolbook.com/mod/book/view.php?id=74&chapterid=66 Soft drink industry is huge industry so important to identify organization weakness also good way to find the new opportunities. For that Benchmarking most important, Benchmarking is the method which we can compare one's business processes and performance metrics to other industry best practice. Target typically measured are time, quality, and cost. Improvements from learning mean, doing something with good quality and fast with cheap price.

Page 25

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Performance management stages of Coca-Cola

Value results Prepare current Year Development plan

Set KRAs Finalize current year development Plan.

Performance-linked pay Recognize Top performers

observe results. Competency development plan.

(Refer Appendix 3 for more information, Performance evaluation)

Page 26

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 3.4 Change management: Nickols (2006) introduced four basic definitions for change management; according to Nickols Change management is a task of managing differences, a method of professional practice, a structure of knowledge and information and a control mechanism. Change come to the business, it can mean many things. Change can give result in a good way also bad way. This is a Coca cola and Pepsi marketing changes over the past years.

Figure 12: Coca cola Vs. Pepsi Logo changes, Negative

Traditionalists

Resistors

Bystanders
Positive Passive

Change agents

active

Figure 13: The four change categories, Bourne M (2002) http://www.underconsideration.com/brandnew/archives/cocacola_vs_pepsi_revised_edition.php

Page 27

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Management of change: Managing any organizations change will be more successful if apply these simple principles. Also every positive Change must be realistic, achievable and measurable. The author strongly believes that, an organization can implement a successful change program also strongly communication and motivation will effect for management of change.

Figure 14 - Change Management Process Image sources: http://www.change-management.com/tutorial-change-process-detailed.htm

When talking management of change human resource most impotent than others, because if senior management arrange some changes for organisation progress some time because of that change employees may face difficulties to adopt themselves to new processes. specially because of new changes organisation environment normally change so employee feel uncomfortable situation in that new environment it default to continues organisation works. Therefore it is responsibility of the management so management should continuously motivate the employees.

Page 28

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon 4.1 Health and Safety at Coca cola: In United Kingdom primary occupational Health and Safety at Work etc Act 1974, also referred to as HASAW or HSW. There are deferent levels in health and safety such as employee safety and food safety.

4.1.1 Food & Drink Safety: Food Safety law affect to both management and employer. The Food Safety Act 1990 is the main law regarding food safety. Under this law it is an offence to sell food and which is unfit for human consumption, contaminated or injurious to health. Coca cola maintain ISO 22000 and HACCP standard.

Food and Drink Safety Law

Food safety law affects to directors/ managers and all employers in organization. The food safety Act 1990 is the main law regarding food safety. Under this law it is an offence to sell food which is can injurious to health. Another important piece of legislation is the Regulation (EC) No 852/2004. This law tells us the requirement of the hygienic operation and construction of food premises. Also this law affects employer and manager both part because if employer know have food poison he or she should report as soon as possible also food handles must use clean high level of cloths. For under the Food safety Act can fined up to 20,000 and under Regulation (EC) No 852/2004 up to 5,000 per offence.

Page 29

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Product storage Coke expects from suppliers and

subordinate ensure that their products does not become contaminated or damage The general rules of storage are:

Keep the storage area in a good

clean, dry & tidy condition.

Store food products off the floorthis will avoid pest infestation and contamination if there is a spillage nearby.

Ensure the products are clearly

labeled.

Keep raw and complete products

separate.

Pest control activities must be active and Pest should done by certificate organisation, make sure avoide Rat Mice Insects Files Birds

Pest carry pathogens and spread diseases also can infect food with bacteria so employees must store food safe place. Its all employees responsibility to reduce

Page 30

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Effective cleaning is of the highest Cleaning : importance in all food production enviroments and it is a key factor in ensuring the preparation When talking effective cleaning employer must follow these important rules: I. Keep chemical in orginal container II. Strore chemical in a dedicated area away from food. III. Wear the correct protective clothing

Physical hazards and chemical hazards A physical hazard is something which has fallen onto or in food. This can happen any stage of food handling. Physical hazard can come from: I. Employers Jewelers earrings can be physical hazard. II. III. IV. V. Bits of work wear. Plaster Finger nails and false nails Glass and personal items.

Chemical hazard can be : i. Cleaning chemicals

Perfumes & aftershave

Page 31

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Assessing safety risks Coke has a safety risk assessment tool for their production facilities that includes an analysis of the job safety of each position in the organisation. This tool guides us in reducing the risks associated with each role. Also each employee needs to get health and safety training before they start job so coke try to reduce mistake as much as they can.

Page 32

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Conclusion:
Quality is a major Objective of Coca cola company. Nowadays people are clever to find good reasonable healthy products for their day to life so manufacture always need to improve and maintain their standard. In this report author has spoken about many things that effect to coca cola such as Health and safety, Total quality management, performance management and deferent kind of process. By completing this report learnt that there are specific things that coca cola management can do impress at TQM also mainly talk that how deferent process management important to coca cola and employees. We have learned many important lessons that should help us in our professional and personal lives.

Page 33

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Bibliography
Ould, M.A, (2005) Business process management: British computer society: UK Poorinma M. Charantimath (2011) Quality Management (2nd Edition) Dorling Publish limited: India. Tennant, G., (2001) six sigma: Gower publishing limited: England.

Drucker, F., (2006) Organization structure: cybernetic systems foundation, Collins, London

Bacal, R (1999), Performance management, A Briefcase book, McGraw-Hill Professional.

Driving the Truth into performance management, The Conference Board Review, September 2008.

Team Performance (4th Edition) John Wiley and Sons Inc: San Francisco

Bourne, M. , (2002)Change management, Hodder education, England

Stranks, J., (2003) Health and safety at work,(7th Edition) Kogan page Limited: England.

Entis,P,.(2007) Food safety,. ASM Press: Washington, DC

(n.a)., (2002)Guide to food hygiene, Food standards agency, England.

(n.a), (2002)Food safety regulations, Food standards agency, England. Cookery (2002) [online] The Coca Cola Company,(2011)[Online] http://www.thecoca-colacompany.com/ [Accessed 25 December 2011]

Johnson, P.A (1998) [Internet] http://www.leadership-expert.co.uk/leadership-styles/ [Accessed 28 December 2011]

Page 34

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon

Appendix
Appendix 1: Types of organizational structures Management experts have identified 6 different organizational structures: The Functional Organizational Structure Each part has a functional purpose with regard to helping its internal or external customers. This structure is easy to manage but can be difficult to find something quickly. The Geographic Organizational Structure Parts are distributed in different places (i.e. not under one roof). The Form/Product Organizational Structure You group people in the organization by the type of material they are dealing with (eg. in a library, a person deals with audiovisual material, or book materials etc), not by their position. The User/Market Organizational Structure The bank structure is an example. The separation of customers based on user/market segmentation. The Hybrid Organizational Structure Two separate organization structures are combined into one. Most organizations are hybrids because of its simplicity. The Matrix Organizational Structure The matrix structure involves a repeating substructure within each department or unit under the one roof which are the same. In this structure, staff could have several bosses with several different projects. It is quite complex. But in life, you already have a matrix structure, because you deal with several bosses (eg. wife, the community etc). While it can take time to maintain and make them work, it does free up management for strategic planning. But unfortunately it encourages internal power struggle and anarchy. Requires lots of interpersonal skills. Expensive.

Page 35

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Appendix 2: Board Mission and Director Responsibilities

The Board is elected by the shareholders to oversee their interest in the long-term health and the overall success of the business and its financial strength. The Board serves as the ultimate decision-making body of the Company, except for those matters reserved to or shared with the shareholders. The Board selects and oversees the members of senior management, who are charged by the Board with conducting the business of the Company. The core responsibility of the Directors is to exercise their business judgment to act in what they reasonably believe to be in the best interests of the Company and its shareholders. Directors must fulfill their responsibilities consistent with their fiduciary duty to the shareholders, in compliance with all applicable laws and regulations. Directors will also, as appropriate, take into consideration the interests of other stakeholders, including employees and the members of communities in which the Company operates. The Board provides advice and counsel to the Chief Executive Officer and other senior officers of the Company. The Board oversees that the assets of the Company are properly safeguarded, that appropriate financial and other controls are maintained, and that the Company's business is conducted wisely and in compliance with applicable laws and regulations and proper governance. In discharging their duties, Directors may rely on the Company's senior executives and outside advisors and auditors. Accordingly, skill and integrity will be important factors in selection of the Company's senior executives and other advisors. The Board has the authority to hire independent legal, financial or other advisors as they may deem necessary. Directors are expected to attend all meetings of the Board and of the Committees on which they serve. Directors should devote the time and effort necessary to fulfill their responsibilities. Information important to Directors' understanding of issues to come before the Board or a Committee will be provided sufficiently in advance of meetings to permit Directors to inform themselves. Directors are expected to review these materials before meetings. The Board will hold regularly scheduled meetings at least five times a year. The Chairman of the Board will set the agenda for Board meetings. Any Director may suggest items for inclusion on the agenda. Any Director may raise a subject that is not on the agenda at any meeting. Certain items pertinent to the oversight and monitoring function of the Board will be brought to the Board regularly. The Board will review the Company's long-term strategic plans and the most significant financial, accounting and risk management issues facing the Company at least one Board meeting each year.

Page 36

Managing Business Activities to Achieve Results 105649/Nipuna Weerakoon Appendix 3: Performance Evaluation:

Page 37