ACKNOWLEDGEMENT

We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans written history. The work of some unknown person makes our lives easier everyday. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our lives and our work.

First of all we would like to thank our teacher Mr. Imran Qamar for their guidance throughout the semester.

Then we would like to thank our friend and brother Mr. Zeeshan Anjum for providing us the information that was required for completion of this project.

Vision of Coca Cola

The Coca-Cola Company Mission Our mission is:

To refresh the world - in mind, body and spirit To inspire moments of optimism - through our brands and actions To create value and make a difference everywhere we engage

The Coca-Cola Company Vision To achieve our mission, we have developed a set of goals, which we will work with our bottlers to deliver: Profit: Maximising return to shareholders, 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 people's desires and needs Partners: Nurturing a winning network of partners and building mutual loyalty Planet: Being a responsible global citizen that makes a difference Productivity: Be a highly effective, lean and fast-moving organisation

COCA COLA INTERNATIONAL

Introduction:
Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca -Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca -Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca -Cola Enterprises and the Johnston Coca Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion

History in Pakistan: Although Coca-Cola is not a new name for the local market, Coca-Cola Beverages Pakistan Limited (CCBPL) began its operations on 26 May 1996 in Pakistan. Coca-Cola Beverages Private LTD (CCBPL) is a joint venture between Coca-Cola International, Fraser and Neeves Singapore and Package Ltd. Initially it acquired National Beverages LTD Karachi and later acquired International Beverages LTD Hyderabad .In May 1996 Fraser and Neeves, a Singapore based bottler of Coke, bought off the local bottlers in Karachi. Not long after it went on to acquire the bottling plants in Hyderabad as well. Since then coke has made an impressive impact on the local market by increasing its availability as well as its volume share. CCBPL has decided to expand its operations in Pakistan by buying other bottlers all over Pakistan. Implementing their plans of acquisitions of other plants they have recently acquired all the plants in Pakistan as they are inclined to give more attention to increase the market share in Pakistani market. STRATEGIC GOALS: The strategic goals are considered when company is thinking of the long-term objectives but at coca cola strategic objectives and goals are set up for three years. These strategic goals are decide by the top management with consultation by the parent company head quartered at Singapore. However, they are reviewed every year in the annual meeting to make sure that they are in line with the changing environment. They are: To continue to be an organization providing the quality products to the valuable customers. To select and retain the professional people for the organization. To project an outstanding corporate image. To satisfy the customer through extra ordinary service and an excellent service along with the complete tactical and operational support. TACTICAL GOALS: The top management of the company on an annual basis devises these goals together with the consultation of the lower level employees. Then each departmental director is given these annual tasks that then subdivide it on the quarterly or monthly basis to have a proper check to ensure that these objectives are achieved, mainly through marketing, is the job of the director of each division. For this year, these goals are:

To increase the revenues by 20% as compared to last year. To increase the total retail customers by around 10%. To increase the market share by 5%. To reactivate the discontinued customers by 30%.

OPERATIONAL GOALS: Operational goals are decided by the top management in consultation with the lower level employees. They are following the concept of management by objectives (MBO). Each employee is assigned its goals and is told what is expected of him and then he is evaluated on the basis of certain rules and regulations followed evenly by the company. 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. To find new customers, To retain existing ones, To bring back the discontinued accounts. 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. Sales manager is made responsible for the performance and achievement of operational goals and is assigned to set certain milestones for the salesman so as to give him proper feedback, which definitely helps the salesman achievement of the above-mentioned goals. Future Strategic Plans:
KARACHI: Optimistic about its growth prospects in Pakistan, the Coca-Cola Company one of the worlds largest beverage companies will invest $379 million on manufacturing facilities across Pakistan over the next three years to expand its business, the companys Pakistani subsidiary announced on Monday. The announcement comes on top of the $172 million already invested by Coca-Cola in the country in 2011. The beverage giant will be spending the money on three new bottling plants,

one each in Karachi, Multan and Islamabad. The announcement was made in the groundbreaking ceremony of the Multan plant on Monday. The funds will be utilised for expansion and bringing about infrastructure changes and systemic improvements in the Coca-Cola system, an official press release said. The expansion plans come as rising demand makes it difficult for Coca-Cola to keep pace with its existing production capacity in Karachi and Punjab, according to company officials. A decent growth in its top-line may also be another factor encouraging more investments. Owing to its strategic location, Multan can not only serve southern and northern Punjab which alone accounts for more than 60% of Coca-Colas business but can also cater to Karachis market, company spokesman Fahad Qadir told The Express Tribune. Greenfield investment refers to new foreign direct investment that will be utilised in setting up a completely new project, as opposed to an existing business expanding operations with its free cash flows. Qadir says the plant will be fully equipped with state-of-the-art production equipment and product warehousing facilities. The plant will also have a much higher manufacturing capacity, he said. Besides the three Greenfield plants announced, Coca-Cola Pakistan already operates six bottling factories in Pakistan, located in Karachi, Gujranwala, Multan, Lahore, Rahimyar Khan, and Faisalabad. It buys close to Rs13 billion in raw materials from around 300 local suppliers. The Coca-Cola System, according to the press release, provides direct and indirect employment to more than 8,000 people in Pakistan; while another 35,000 people are employed through its supply chain, and another 100,000 benefit through employment in allied industries. Coco-Cola Pakistan refused to comment on its revenues: but our sources say the company earned over Rs50 billion in revenues for the financial year ending June 30, 2012; a 55% increase when compared with the previous year. It also paid Rs10 billion in taxes. Correction: An earlier version of this article incorrectly stated that the term Greenfield mean energy-efficient. Published in The Express Tribune, March 5th, 2013. Like Business on Facebook to stay informed and join in the conversation. LAHORE: It was an announcement made so quietly that it did not even make the headlines: having already invested $172 million in Pakistan this past year, The Coca Cola Company one of

the worlds largest beverage companies is planning on investing another $248 million in the country over the next two years. It may have something to do with the fact that Pakistanis are estimated to have spent approximately Rs110 billion ($1.3 billion) on carbonated beverages in 2011, according to an analysis by The Express Tribune based on figures compiled from industry sources. Coca Cola currently enjoys a 30% market share, second only to arch-rival PepsiCo. We see great potential in Pakistans future, which is why the company is investing significantly in upgrading infrastructure and adding value to allied industries, said Rizwan Khan, general manager for The Coca Cola Company in Pakistan and Afghanistan. The money will be spent on two new bottling plants, one each in Karachi and Multan, as well as investing in more coolers, which will be distributed amongst retailers to help with the companys retail sales efforts. Company officials were quick to point out that the investment is not simply the recycling of profits and cash flows from existing operations in Pakistan, but green-field foreign direct investment that will flow into the country over the next two years. The expansion plans come as rising demand makes it difficult for Coca Cola to keep pace with its existing production capacity in Karachi and Punjab. The new plants will follow the establishment of a Coca Cola facility, already completed in 2011, which manufactures Coke cans. Previously, Coca Cola used to import cans from its factories in other countries. Coca Colas business model in Pakistan is somewhat unique. The global US-based parent owns a subsidiary called The Coca Cola Export Company, which has a Pakistan branch. That Pakistan branch conducts all marketing and brand building activities and manufactures the concentrate for the companys signature beverages from a plant it owns and operates in Raiwind. The concentrate is then sold to Coca Cola Beverages Pakistan, a joint venture between the USbased parent and Coca Cola Iiek, a Turkey-based partner of the group. Coca Cola Beverages Pakistan operates six bottling factories in Pakistan, located in Karachi, Gujranwala, Multan, Lahore, Rahimyar Khan, and Faisalabad. Coca Cola used to have eight franchisees for its bottling facilities in Pakistan, but in the mid1980s the company felt that the business model was not working. It then spent the next decade buying out every single franchisee in Pakistan, consolidating them under one umbrella to form Coca Cola Beverages Pakistan. This entity was a wholly-owned subsidiary of the US-based parent until 2008, when Coca Cola Iiek took a 49% share. The company declined to provide a precise revenue figure or growth numbers, but said that it buys close to Rs13 billion in raw materials from its 300 local suppliers. According to Coca Cola Iieks annual report, the companys revenue growth rate in Pakistan is in the high teens. Coca Cola has over 4,000 employees in Pakistan, and employs another 6,000 indirectly. Company officials say that it paid Rs11 billion in taxes last year.

Taxation is something of a sore point for Coca Cola, since it is forced to pay excise duty on both the concentrate and the finished product, in addition to paying sales taxes on the final product. It also pays the full corporate income tax on its net income. In 2010, the federal government removed the requirement to pay excise duty on the concentrate, but Coca Cola still feels that the burden of what it calls double taxation needs to be lightened. Our aim is to inspire economic activity, create employment and increase tax revenue for the government. However, it is the governments responsibility to ensure that a productive investment and business operating environment is provided to local and international companies, said Khan. In the meantime, Coca Cola has tried to cut back on other costs, notably its logistics and distribution costs. One innovation it has introduced is called pre-sell, where instead of simply going up to every retailer with a truck, the company asks for orders to be placed via text messages. This method has saved the company approximately 30% in man-hours of delivery time. Published in The Express Tribune, November 10th, 2012.

Products:
Coca cola Beverages Pakistan has a very narrow product range. It has the following brands in Pakistan. Coca Cola Sprite Fanta

These products are sold in the market in different sizes of bottles. These sizes are available for all its products. 250ml 250 ml (Non Returnable) 300ml 1 liter 1.5 liter pet

MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.
Chairman Board of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

MARKET SHARE:
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

GLOBAL MARKET SHARE:

Strategy:
On a conference call, Chief Executive Officer Muhtar Kent said the world's largest soft drink company would proceed by investing in its brands and seeking acquisitions. In the third quarter, net income rose 6 percent to $2.45 billion, or 54 cents per share, in the third quarter from $2.31 billion, or 50 cents per share, a year earlier. Revenue fell 3 percent to $12.03 billion from $12.34 billion, slightly below analysts' estimates of $12.05 billion. The decline was largely due to weaker-than-expected currencies in many emerging markets . Chief Financial Officer Gary Fayard said he expected currency weakness to hurt operating income by 5 percent to 6 percent in the fourth quarter.

Strength Of Coke Brand

Morningstar analyst Tom Mullarkey said he was encouraged by Coke's global volume growth, which reached 2 percent overall, as well as the popularity of the Coca-Cola brand in North America. "Soda is not doing great overall in the U.S.," he said, "but the Coke brand is the leading soda brand, and so the company continues to push it forward." Kent said the Coke brand was resilient, helping the company deliver a record 181 billion beverage servings in the quarter. Shares of Coca-Cola, which generates almost 60 percent of its revenue from international markets and nearly 70 percent from soft drinks, were up 0.2 percent at $37.97 in midday trading. In North America, sales volume increased 2 percent overall, largely because of the strong performance of Coke's non-soda offerings. Still-drink and bottled water sales rose 5 percent, and teas, which include Honest Tea and Fuze, had double-digit percentage growth. Sparkling drink sales in the region were flat. Volume rose 5 percent in the Asia-Pacific region, led by growth of 21 percent in Vietnam. In China, volume increased 9 percent, including an 8 percent rise in soft drinks, without any significant pricing promotions. Executives said the nation had stabilized economically, and its people had more disposable income. Volume rose 4 percent in Eurasia and Africa, fell 1 percent in Europe and stayed flat in Latin America, in part because storms hampered beverage sales in Mexico. Also in Mexico, the government said in September that it was planning on levying taxes on soda to combat obesity. "A regressive discriminatory tax on one part of the food industry just is not going to work," Kent said Tuesday's call. Kent later told reporters that the company was not even sure the tax would become law. To capitalize on the 2014 FIFA World Cup, Coca-Cola has already begun its largest soccerrelated marketing campaign, which will cover more than 170 markets. The company said it had repurchased $2.8 billion in stock in 2013 and planned to increase that amount to between $3.0 billion and $3.5 billion for the full year. (The story has been filed again to state that Coca-Cola brand helping the overall business deliver 181 billion servings in the quarter, not delivered alone in paragraph 10.) (Reporting by Atossa Araxia Abrahamian; Editing by Lisa Von Ahn)

This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Thus they are increasing their market day by day. The operation income earned by Coca Cola Company can be illustrated by the following pie chart. (Figure)

This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data of the global unit sale of the Coca Cola Company can be represented by following chart.

(Figure)
12 10 8 6 4 2 0 1971 1981 1991 2002
unit sale in billions