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Chapter – 1

Indian Economic Scenario


The economic scenario of India is continuing moving forward with a diverse variety of
market oriented economic reforms. These include liberation of foreign investment
and exchange regimes, significant reductions in tarrifs and other trade barriers,
industrial de-control, reform and modernization of the financial sector, significant
adjustments in govt. Monetary and fiscal policies and safeguarding intellectual
property rights.

India’s Economic Outlook Projection

2007 2008 2009 2010

GDP 9.40% 7.30% 5.40% 7.20%


Growth
CPI 6.40% 9.30% 5.50% 4.90%

Economic Scenario 2010

In order to sustain economic growth during the time of the bad


recession, government authorities in India have announced the incentive packages
to support the economic growth. To finance the incentive packages, the Indian
government has raised over $100 billion over the last four quarters in a way
to finance the incentive package. The country’s public debt, according to the RBI,
has surged to over 50% of the total GDP and the RBI has started printing new
currency notes.

Indian economy has registered a growth of 7.4 per cent in 2009-10, with 8.6 per cent
year-on-year (y-o-y) growth in its fourth quarter. The growth is driven by robust
performance of the manufacturing sector on the back of government and consumer
spending. GDP growth rate of 7.4 per cent in 2009-10 has exceeded the government
forecast of 7.2 per cent for the full year. According to government data, the
manufacturing sector witnessed a growth of 16.3 per cent in January-March 2010,
from a year earlier.

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Economic Activities

Economic activities which showed significant growth rates in 2009-10 over the
corresponding period last year were mining and quarrying (10.6 per cent),
manufacturing (10.8 per cent), electricity, gas and water supply (6.5 per cent),
construction (6.5 per cent), trade, hotels, transport and communications (9.3 per
cent), financing, insurance, real estate and business services (9.7 per cent),
community, social and personal services (5.6 per cent). The Gross National Income
is estimated to rise by 7.3 per cent in 2009-10 as compared to 6.8 per cent in 2008-
09. The per capita income is estimated to grow at 5.6 per cent in 2009-10.

Industrial Growth

India’s industrial output grew by 17.6 per cent in April 2010. The manufacturing
sector that accounts for 80 per cent of the index of industrial production (IIP) grew
19.4 per cent in April 2010, as against 0.4 per cent a year-ago.

Capital goods production grew by 72.8 per cent against a contraction of 5.9 per cent
a year ago. Consumer durables output continued to grow at a fast pace of 37 per
cent, mirroring higher purchase of goods such as televisions and refrigerators.

Agriculture

Agriculture is one of the strongholds of the Indian economy and accounted for 15.7
per cent of the country's gross domestic product (GDP) in 2008-09, and 10.23 per
cent of the total exports. Moreover, it provided employment to 58.2 per cent of the
work force.

Production of food grains during 2009-10 is estimated at 216.85 million as per


second Advance Estimates.

Foreign Investment

The number of registered foreign institutional investors (FIIs) was 1710 and the total
FII inflow in equity during January to May 2010 was US$ 4606.50 million while it was
US$ 5931.80 million in debt.India received foreign direct investment (FDI) worth US$
25,888 million.

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The exchange rate are also contributed to economy and decide the country position.
The current exchange rate as on June 2010, 47.14 INR

The growth has been concentrated only in some selected areas in the service
sectors rather than vital sectors such as agriculture and industry which provide
livelihoods to millions of people in the country.

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Chapter- 2

Industry Analysis- Soft Drink Industry In India

With the development of world and human being, the taste, need and the attitude of
human being is also changes. India is one of the common market in the world with
the population of more than one billion. Soft drink is a popular common product
which is generally purchased by consumers for quenching their thirst in summer and
also to have cooling refreshment. As far as the market of soft drinks is concerned, it
is facing cut throat competition from the larger number of soft drinks available in the
market. Different brands are available in every segment of flavours, but the attitudes
of the consumers differ from each other due to several factors.

Manufacturers diversify on a health and wellness platform

Manufacturers are continued to focus on health and wellness products in 2009,


introducing green tea versions of powder concentrates and RTD tea. There were
also a number of launches in terms of new products and flavours in fruit/vegetable
juice. The only necarbonates was Grappo Fizz by Parle Agro Pvt Ltd. Non-cola
carbonates performed very well as these products are perceived by consumers to be
less of a health threat than cola carbonates. Even in niche categories like energy
drinks, sugar-free versions were introduced as manufacturers try to attract health
conscious and diabetic consumers.

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Coca-Cola India continues to lead soft drinks
Coca-Cola India Pvt. Ltd continued to lead soft drinks in 2009, followed by PepsiCo
India Holdings Pvt. Ltd in off-trade value terms. The launch of Nimbooz by 7-Up
(PepsiCo India) helped the company retain its leading position in the terms of off-
trade value sales. Coca-Cola India and PepsiCo India continued to invest in soft
drinks in India. However, domestic players such as Parle Agro, Parle Bisleri Ltd and
Dabur India Ltd continued to provide tough competition to the leading multinationals.
Thus, while the leading multinationals retained their leading positions in off-trade
value terms, they continued to record slight off-trade value share reductions in 2009,
while these leading domestic players grew their shares.

Global Market Share Percentage


Coca-Cola 50%
Pepsico 21%
Cadbury schweppes 7%
Others 22%

Marginal slowdown in supermarkets/hypermarkets

The growth in supermarkets/hypermarkets boosted the soft drinks industry over


much of the review period. However, due to the economic downturn, the off-trade
volume share of supermarkets/hypermarkets decreased in 2009. This in turn
affected some of the more niche and premium product types like energy drinks and

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reconstituted 100% juice which enjoyed high visibility through this distribution
channels. However, this trend is not expected to continue as the economy recovers
since consumers will revert to their previous shopping patterns.

Soft drinks is expected to record healthy sales growth in the


forecast period

Soft drinks is expected to witness a healthy double-digit total volume CAGR growth
over the forecast period. As consumer awareness and understanding of the variety

of soft drinks increases and as manufacturers continue to be innovative, soft drinks


is expected to perform well. Products on the health and wellness platform and niche
categories can expect to see good sales growth in the forecast period.

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Chapter- 3
Company Analysis – Hindustan Coca-Cola

Beverages Pvt. Ltd.

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Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 500 beverage brands. It sells beverage concentrates
and syrups to bottling and canning operators,
distributors, fountain retailers and fountain
wholesalers. The Company’s beverage
products comprises of bottled and canned soft
drinks as well as concentrates, syrups and not-
ready-to-drink powder products. In addition to
this, it also produces and markets sports drinks,
tea and coffee. The Coca-Cola Company began
building its global network in the 1920s. Now
operating in more than 200 countries and
producing nearly 500 brands, 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- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything,
that system is dedicated to people working long and hard to sell the products
manufactured by the Company. This unique worldwide system has made The Coca-
Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,
from Montreal to Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe. For more than 115 years,
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.The Company aims at increasing shareowner value over time. 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,
thus increasing brand equity on a global basis. 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, to meet business goals and
objectives. The associates of this Company jointly take responsibility to ensure

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compliance with the framework of policies and protect the Company’s assets and
resources whilst limiting business risks.

The biz.system of coca-cola in India directly employs approximately 6,000 people, &
indirectly creates employment for many more related industries throw our wash
procurement, supply and distribution system.

The vast Indian operations comprise 25 companies owned bottling operations & 24
franchises –owned bottling operations. The apart a network of contract packers also
mfg. a range of the product for company. On the distribution front, 10 tone trucks,
open-bay three wheelers that can navigate the narrow alleyways of Indian cities,
ensure that our product available in each corner of the country.
The coca cola is responsible for the manufacturing, distribution & sales of product
across the country.

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Historical Background Of Coca-Cola
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries. It is produced by the Coca-Cola Company
which is also often referred to as simply Coca cola or coke. Coke is one of the
world's most recognizable and widely sold commercial brands; its major rival is
Pepsi. Originally intended as a patent medicine when it was invented in the 19th
century, Coca-cola was bought out by businessman Asa Griggs Candler, whose
marketing tactics led Coke to its dominance of the world soft drink market throughout
the 20th century.
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding, such as Sprite, Fanta, and others. Coca cola was invented. In
Atlanta, Georgia, by John S. Pemberton, originally as a coca wine caned
Pemberton's French, Wine coca in 1885. He was ' inspired by the formidable
success of European Angelo Mariani's coca wine Mariana.

History Of Soft Drink In India


The first brand of soft drink Gold spot established 53 years ago. Before all
empowering Coca-Cola entered the country to dominate the soft drink market, the
history of soft drink in India is quite drinking old. Down the ages, people consume
soft drink to give them a refreshing feeling. Gold spot is considered as the first brand
of soft drink in India, it was introduced in 1965.

Coca- cola at the same time entered the Indian mark t .and dominated the whole
market. It faced no though competition from the domestic market. Due to certain
circumstances the Coca cola Company discontinued its operations in India. In 1993
Coca Cola was launched in Agra (India) again with a slogan of "OLD WAVE HAVE
COME AGAIN" Joining the hand with Parle export Pvt. Ltd., The Company was
trying its best to regain prestige which it had before. At present only Coca Cola and
Pepsi Food are giving tough competition to each other.

Coca Cola was the first foreign drink came in India in the year 1965. Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in India.

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The marketing people did not even require advertising Coca Cola. This extra
ordinary success of soft drink could be attributed to following factors.
Later in 1970, it introduced Limca a lemony soft drink. Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola. The Indian drink had a significant opportunity
in 1977 when Coca Cola decided to wind up its operation rather than bowing to the
government of India insistence of dilution of equity.

HISTORY OF SOFT DRINK IN BIHAR


When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt. Ltd. Of Patna, Bihar on lease for 20 years in 1997- 98 started its operation. The
first product launched by Hindustan Coca Cola Beverages Pvt. Ltd. of Patna was
Coca-cola and after that all the remaining products came in the Bihar market. At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt. Ltd. is
140 including all the departments.

The soft drink market in India is quite wide. The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr. Dharma Chad
Kumari which was named as Steel city Beverages Pvt. Ltd. The company controlled
the lions share in the soft drink market for nearly 10 years. Parle also entered this
field in Bihar with the installation of bottling unit in collaboration with Mr. Rajendra
Poddar in the name of Orient Beverage Pvt. Ltd. In 1997 with the advent of Janta
Party Government, it created trouble for Coca Cola which led to withdraw its
operation from India.

After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc. Dowell pure drinks and local drinks entered into the market. They
would not compete with Parle.

Once again with the liberalization of economy in 1991. Pepsi Food Ltd. Entered in
the India market. It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamani's collaboration with Birla Group

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which was once the bottling plant for Coca-Cola. After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically. Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi.

Mission, Visions, & Values

The world is changing all around us. To continue to thrive as a business over the
next ten years and beyond, we must look ahead, understand the trends and forces
that will shape our business in the future and move swiftly to prepare for what's to
come. We must get ready for tomorrow today. That's what our 2020 Vision is all
about. It creates a long-term destination for our business and provides us with a
"Roadmap" for winning together with our bottler partners.

Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions.

• To refresh the world...


• To inspire moments of optimism and happiness...
• To create value and make a difference

Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.

• People: Be a great place to work where people are inspired to be the best
they can be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.

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• Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization.

Values

Our values serve as a compass for our actions and describe how we behave in the
world.

• Leadership: The courage to shape a better future


• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well

Focus on the Market

• Focus on needs of our consumers, customers and franchise partners


• Get out into the market and listen, observe and learn
• Possess a world view

Focus on execution in the marketplace every day.

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Shareholding Pattern

Sr. No. Holder Shares % Out


1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5,700,000 1.14
2 CRM Mutual Fd Tr-Mid Cap Value Fd 3,647,200 .73
3 JNL Variable LLC-JNL/Mellon Cap JNL 5 Fd 3,079,000 .62
4 VANGUARD TOTAL STOCK MARKET INDEX 2,966,951 .59

FUND
5 VANGUARD 500 INDEX FUND 2,949,370 .59
6 SPDR S&P 500 ETF Trust 2,330,486 .47
7 VANGUARD INSTITUTIONAL INDEX FUND- 2,223,290 .44

INSTITUTIONAL INDEX FD
8 COLLEGE RETIREMENT EQUITIES FUND- 2,166,555 .43

STOCK ACCOUNT
9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL 2,129,800 .43

GLOBAL DISCOVERY SECURI


10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL 2,129,800 .43

DISCOVERY FD

Organizational Chart of
Hindustan Coca Cola Beverages Pvt. Ltd.

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Organisation Structure

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No. Of Employees Working
Gender Employees Numbers
Male 130
Female 10
Total 140

Classification Of Employess

Age:
Particulars Numbers Percentage
Below 20 Years 5 3.57%
20-30 Years 35 25%
30-40 Years 70 50%
Above 40 Years 30 21.43%
Total 140 100%

Service Renderd:

Service Rendered Percentage

Less Than 5 Years 17%


6 - 15 Years 42%
16 - 25 Years 40%
26 Years and Above 35%
Total 100%

Sex:

Gender Percentage
Male 93%
Female 7%

Total 100%
Marital Status:

Marital Status Number Percentage

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Married 85 60.72%

Single 55 39.28%

Total 140 100%


Size Of Land & Building

Coke begins its operation in Patna on 4th Sept. 1998 by taking over the franchise
bottler.It is located at E-I Industrial Area, Patliputra. Plant is spread over an area of
1.75 acres and houses most sophisticated machinery to produce coca-cola and
many other brands marketed by the company.The plant can produce around 24000
cases of soft drinks per day and employees 113 workers to do the same.

Corporate Head quaters Of Coca-Cola Pvt. Ltd. In Atlanta, USA

Branches Of Coca-Cola in India

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Products Produced
The Coca-Cola Company offers a wide range of products to the customers including
beverages, fruit juices, and bottled mineral water. The Company is always looking to

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innovate and come up with, either complete new products or new ways to bottle or
pack the existing drinks. The following products are marketed by HCCBPL:

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Market Share
Market Share Percentage
Coca-Cola Classic 20.3%
Pepsi 13.9%
Diet Coke 8.6%
Company’s Major
Mountain Dew 7.1%
Sprite 6.5%
Local Sales and Exports & imports
Dr. Pepper 6.2%
Diet Pepsi 4.9% which involve exports to different
Seven-Up 2.0% countries like Bangladesh, United
Minute Maid Orange 1.5% States of America, United Kingdom,
Others 295 Singapore and Malaysia.
Total 100%

Customer Profile

The customer of CoCa-Cola are-

• Retailers

• Distributers

• Final Consuemer

Suppliers of Raw Materials

• Tate & Lyle

• South Eastern Container

• Cutrale Citrus Juice USA

• Aloca

• Visy Industries

• Xerox

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Bankers and Financial Institution

Sl. No. Holder


1 BlackRock Institutional Trust Company,

N.A.
2 FMR LLC
3 Bank of New York Mellon Corporation
4 STATE STREET CORPORATION
5 VANGUARD GROUP, INC. (THE)
6 SCOUT CAPITAL MANAGEMENT LLC
7 LSV ASSET MANAGEMENT
8 CRAMER ROSENTHAL McGLYNN

LLC/ADV
9 FRANKLIN RESOURCES, INC
10 JANUS CAPITAL MANAGEMENT, LLC

Related Ancillary Industry

• Pepsico

• Dabur

• Nestle

• RC Cola

SWOT ANALYSIS OF THE COMPANY

Coca-Cola Company is one of the leading MNC in the world. It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way. By going through its SWOT analysis we can know much
more about the company.
Strengths:
The company has got various strengths, which leads the company be a market
leader. Some of the strengths listed below:
1. Beverage experience.

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2. Personal relations.

3. Knowledge regarding competitor.

4. Hardworking stuff and distributer.

5. People reliance on quality of product and brand.

6. Coca-Cola has been a complex part of world culture for a very long time.

7. The product’s image is loaded with over-romanticizing and this is an image


many people have taken deeply to heart. The Coca-Cola image is displayed
on T-shirts, hats and collectible memorabilia.

8. This extremely recognizable branding is one of Coca-Cola’s greatest


strengths. “Enjoyed more than 685 million times a day around the world Coca-
Cola stands as a simple, yet powerful symbol of quality and enjoyment.”

Additionally, Coca-Cola’s bottling system is one of their greatest strengths. It allows


them to conduct business on a global scale while at the same time maintain a local
approach. The bottling companies are locally owned and operated by independent
business people who are authorized to sell products of the Coca-Cola Company.
Because Coke does not have outright ownership of its bottling network, its main
source of revenue is the sale of concentrate to its bottlers.

Weaknesses:
Weaknesses for any business need to be both minimized and monitored in order to
effectively achieve productivity and efficiency in their business’s activities, Coke is no
exception.

Local Weaknesses:

a) Finance problem.

b) Less empty on floor.

c) Vehicles are less.

d) Large number of PCI empty stock.

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e) More seasonal demand.

f) Poor service.

g) High prices.

Coca-Cola on the other side has effects on the teeth which is an issue for health
care. It also has got sugar by which continuous drinking of Coca-Cola may cause
health problems. Being addicted to Coca-Cola also is a health problem, because
drinking of Coca-Cola daily has an effect on body after few years.

Opportunities:
1. Brand recognition is the significant factor affecting Coke’s competitive
position. Coca-Cola’s brand name is known well throughout 94% of the world
today.

2. Coca-Cola’s bottling system also allows the company to take advantage of


infinite growth opportunities around the world. This strategy gives Coke the
opportunity to service a large geographic, diverse area.

3. Opening new outlets in the area where the coca cola’s market share is less.

4. Covering greater institutional areas as younger generation gets much


fascination out of such beverages.

Local Opportunities:

a) Customers are anode from competitor especially in rural area.

b) New projects have been started.

c) Niche markets that large companies do not wish to serve.

Threats:
Currently, the threat of new viable competitors in the carbonated soft drink industry is
not very substantial.

1. The threat of substitutes, however, is a very real threat. The soft drink industry
is very strong, but consumers are not necessarily married to it. Possible

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substitutes that continuously put pressure on both Pepsi and Coke include
tea, coffee, juices, milk, and hot chocolate.

2. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage
market, the changing health-consciousness of the market could have a
serious affect.

3. Consumer buying power also represents a key threat in the industry. The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition.

4. Furthermore, consumers can easily switch to other beverages with little cost
or consequence.

5. Competitor’s distributor is financially strong.

6. Competitor is thinking seriously about textile sector market.

7. Economic conditions become unfavourable.

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Chapter - 4.1
Functional Analysis- Production Department
Manufacturing Unit of HCCBPL

The manufacturing unit of HCCBPL, situated at Patna, is one of the bottling


operations owned by the company. The Plant has one PET line which has the
capacity of yielding 209 bottles, per minute, two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles
per minute. It caters to the whole Bihar through a network of more than 50
distributors.

Manufacturing
Plant, Patna

Sales and
Distribution
Operations

Distributors Outlets

Outlets

Fig 1: Chain followed from manufacture to distributon.

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Products Produced-
BRAND GLASS TETRA PACK PET CAN FOUNTAIN

200ml & 600 ml, 1.5 L, 330 ml Various


300 ml --- 1.25L sizes
and 2L
Fanta
330 ml
--- --- ----
---
Diet coke
200ml & 250 125ml & 600 ml & 1.2
ml 200ml L ----
Mazz ----
a
200 ml & 300 600ml, 1.5L, 330 ml Various
ml ---- 2L. 2.25 L sizes

Lim
ca
200 ml & 600ml, 1.5L, 330 ml Various
300 ml ---- 2L sizes

Coca-Cola
200 ml & 600ml, 1.5L, 330 ml Various
300 ml ---- 2L Sizes
Thumps Up

200 ml & 600ml, 1.5 L, 330 ml Various


300 ml 2L Sizes
Sprite ----
500 ml, &
---- ---- 1L ---- ----

500 ml
---- ---- ---- ----
Minute
Maid
Pulpyorange

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Raw Materials
Water is a main ingredient in substantially all Coca-Cola products. In addition to
water, the principal raw materials used by our business are nutritive and non-nutritive
sweeteners. The principal nutritive sweetener is sucrose, another form of sugar,
which is available from numerous sources and is historically subject to fluctuations in
its market price. The principal non-nutritive sweeteners we use in our business are
aspartame, acesulfame potassium, saccharin, cyclamate and sucralose.
Company-owned or consolidated bottling and canning operations and finished
products business also purchase various other raw materials including, but not
limited to, PET resin, preforms and bottles; glass and aluminum bottles; aluminum
and steel cans; plastic closures; aseptic fiber packaging; labels; cartons; cases; post-
mix packaging; and carbon dioxide.

Inventory Management: 2 methods are followed based on the


requirement
At Factory
FIFO Method: All the materials that come in first are sent out first, there is no
staggering of raw materials.
JIT Method: This method is used specifically for Suzuki Motors, all the materials are
supplied when the company orders for the products, and this method is specially
used for 1 client as per their specifications and requirements.
At Stores
FIFO and LIFO Methods: Based on the current demand one of the methods are
followed by the stores management, there is no stock maintenance at any of the
stores.

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Total Quality Management Tools Used:
Pareto Principle

The Pareto principle suggests that most effects come from relatively few causes. In
quantitative terms: 80% of the problems come from 20% of the causes (machines,
raw materials, operators etc.); 80% of the wealth is owned by 20% of the people etc.
Therefore effort aimed at the right 20% can solve 80% of the problems. Double (back
to back) Pareto charts can be used to compare 'before and after' situations. General
use, to decide where to apply initial effort for maximum effect.

Scatter Plots

A scatter plot is effectively a line graph with no line - i.e. the point intersections
between the two data sets are plotted but no attempt is made to physically draw a
line. The Y axis is conventionally used for the characteristic whose behaviour we
would like to predict. Use, to define the area of relationship between two variables.

Warning: There may appear to be a relationship on the plot when in reality there is
none, or both variables actually relate independently to a third variable.

Control Charts

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Control charts are a method of Statistical Process Control, SPC. (Control system for
production processes). They enable the control of distribution of variation rather than
attempting to control each individual variation. Upper and lower control and tolerance
limits are calculated for a process and sampled measures are regularly plotted about
a central line between the two sets of limits.This prevents over-
correction/compensation for random variation, which would lead to many rejects.

Flow Charts

Pictures, symbols or text coupled with lines, arrows on lines show direction of flow.
Enables modelling of processes; problems/opportunities and decision points etc.

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Develops a common understanding of a process by those involved. No particular
standardisation of symbology, so communication to a different audience may require
considerable time and explanation.

Cause and Effect , Fishbone, Ishikawa Diagram

The cause-and-effect diagram is a method for analysing process dispersion. The


diagram's purpose is to relate causes and effects. Effect = problem to be resolved,
opportunity to be grasped, result to be achieved. Excellent for capturing team
brainstorming output and for filling in from the 'wide picture'. Helps organise and
relate factors, providing a sequential view. Deals with time direction but not quantity.
Can become very complex. Can be difficult to identify or demonstrate
interrelationships.

Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data. It enables us to see


patterns that are difficult to see in a simple table of numbers. Can be analysed to
draw conclusions about the data set.

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Check Sheets
A Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself. It needs to be designed for the specific data it is to
gather. Used for the collection of quantitative or qualitative repetitive data. Adaptable
to different data gathering situations. Minimal interpretation of results required. Easy
and quick to use. No control for various forms of bias - exclusion, interaction,
perception, operational, non-response, estimation.

Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation. Checklists are used under operational conditions to ensure that all
important steps or actions have been taken. Their primary purpose is for guiding
operations, not for collecting data. Generally used to check that all aspects of a
situation have been taken into account before action or decision making. Simple,
effective.

Safety Program
HCCBPL Patna are committed to ensure the maximum level of safety and
prevention of loss for employees, assets and visitors. We believe in the involvement
of each and every one of us in this effort and realize the importance of every
individual’s contribution to safety. We strive for continuous improvement in our
safety standards and to the consistently meet or exceed them. We therefore, will
make certain that the necessary financial and personnel resources are made
available in order to continuously improve our safety standards. With this belief we
vow to.
Set our safety standard at a level that ensures compliance with governmental and
company requirements.
Protect our employees and ensure public safety extending throughout our
organization.
Integrate sound safety practices in to our daily business operation even in the
absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment, products and
packages taking in to account the associate costs or profit for each safety benefits.

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Ensure each and every one to use in responsible and accountable for our actions.
Establish mechanisms to communicate effectively with employee’s consumers and
government on our safety performance.

Manufacturing Process
1. Water Treatment:

HCCBPL Patna follow a batch treatment which includes coagulation & flocculation.
The method ensures disinfection and settling of all macro impurities and there after it
pass to sand, carbon filters to remove off odour ,off colour, off taste, and thus it is
strictly bought in line with the WHO requirements. They are also using state of art –
micron filtration process where the water is filtered up to the extent of 1 micron
before it is fed to the process. This extensive treatment of water under strict
monitoring and sampling for quality leads to pure hygienic water with the highest
quality meeting the Coca-Cola standards.

2.Syrup Preparation:

Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards, which serves as the strict criteria before acceptance of a
lot. To ensure high quality of syrup, it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature. It is then passed
through a filter press which removes the carbon particles and other impurities before
it declared fit for concentrate mixing. All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of the numerous
tests carried out in the entire process which makes it a foolproof process.

In the ready syrup tank the pre-decided quantity of concentrate is mixed to the
simple syrup in very strict hygienic condition to yield final syrup. The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room.

3. Container Washing:

Container has been identified as one of the major critical control point in the entire
manufacturing process & that’s the reason that company has laid some of the very

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stringent and foolproof systems which ensures Coca-Cola product to be of the
highest quality and reflects our commitment towards delivering the best in class
product to the consumers.

The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles, excessively dirty
bottles, bottles carrying foreign matter, foreign bottles. And thus the good bottles
pass into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling. However as an additional safety, there is again a post wash
inspection station comprising of 4 sub-stations, which ensures removal of the chip
necked bottles and suspected bottles from the lot. Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling.

4. Mixing, Proportioning:

Proportioning is basically a process where ready syrup is diluted in a predetermined


fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to company’s norms and specifications. It is carried out by an Italian Machine-
MOJONNIER.

5. Filling & Crowning:

The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER. The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a
perfectly safe and fresh product.

6. Final Inspection:

After date coding, there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine.

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7. Managing The Waste Water:

Production lines maintain the waste water from the bottle washers, Syrup and Filler
rooms. Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas. Part of this water is being used for
gardening purpose within the plant premises.

8.Market & Customer:

Once the finished product is ready, it is transported to the distribution centers and
then to retail outlets by way of route trucks. The consumer buys the soft drink from
the retailer outlets. The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products.

9. Suppliers and Other Business Partner:

Other than water and concentrate, bottling operation require sugar, CO2, bottles,
crates and other miscellaneous materials. The Coca-Cola India division has a
Supplier authorization program where suppliers are authorized based on a defined
criterion. Environmental considerations are amongst the critical of these criterions.

Challenges faced by production managers due to recession in the


economy:

The Production/Operations Manager is the worst hit during the recessions as he


is the person involved with production and people management.

1. Low Demand of products.


2. People Management forms a very critical part for the manager to maintain
during the recession as the company does not want overheads but the
manager cannot release the employees.
3. Low Realization due to low production
4. Employee Efficiency is at the decline due to lot of ideal time.

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5. Maintain the right Revenue Projection will be hard for the production
manager as it will be at the lowest.
6. ROI will not be achievable as the Returns are Less than the Investment
7. Maintain the Employee relation strong to retain talent.

Fig 2 : Manufacturing process

Vendor Management
Vendors are selected from head office, the local authorities has to pass the audit
check after that a vendor is become permanent supplier.

Vendor management can be a painless process by following a few simple guidelines:


� Share your top priorities with vendors to ensure they are aware of them.
� Obtain solutions with features that fit your organization now and allow room for
growth in the future.
� During the evaluation process, narrow down the choices to your top two vendors.
Engage in negotiations with the top two (rather than just one vendor) to

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encourage friendly competition.
� If you are looking to build long term relationships with your vendors, avoid overly
aggressive maneuvers for short term gain.

SWOT Analysis:

Strength
• Strong Brands: The products produced and marketed by the Company have
a strong brand image. People all around the world recognize the brands
marketed by the Company. Strong brand names like Sprite, Fanta, Limca,
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole.
• Low Cost Of Operation: The production system is very efficient due to
forward planning and maintenance of consistency of operation which minimise
cost of operation.

Weaknesses:
• Although domestic businesses as well as many international markets are
thriving, Coca-Cola has recently reported some “declines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
power.”

• Being addicted to Coca-Cola also is a health problem, because drinking of


Coca-Cola daily has an effect on body after few years.

Opportunities:

• Coca-Cola’s bottling system also allows the company to take advantage of


infinite growth opportunities around the world. This strategy gives Coke the
opportunity to service a large geographic, diverse area.

• Minor signage work is done in area by PCI.

• PCI is getting interest in textile sector.

• New technologies that increase efficiencies.

Threats:

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• Water is the main ingredient in substantially all of our products. It is also a
limited resource in many parts of the world, facing unprecedented challenges
from overexploitation, increasing pollution, poor management and climate
change. As demand for water continues to increase around the world, and as
water becomes scarcer and the quality of available water deteriorates, our
system may incur increasing production costs or face capacity constraints
which could adversely affect our profitability or net operating revenues in the
long run.

• Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage
market, the changing health-consciousness of the market could have a
serious affect.

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Chapter- 4.2
Functional Analysis- Marketing Department

Marketing is the basic reason for the existence of a business organisation. In the age
of fast changes, marketing is the springboard of all activities. Basically Marketing
Department is necessary for every organisation. In multinational companies like coca
cola have their own separate department of marketing.

Sales Department

C
hart-4 : Sales Department of HCCBPL

The sales department of the Coca Cola Company is to coordinate the


selling program. They also have to make the distribution methods,etc.
Also, decide how much to sell and how much to store in the warehouse
and to choose the transporting method which is the most cost efficient and the
quickest way.

Marketing research Department

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This department has their budget given by the finance department and
their responsibility is to investigate new products. They work closely
with marketing by looking at marketing research findings. They have to
bring new products in the market for the change because the consumer
cannot stick with the same old products. If necessary then they also
have to improve the quality of the products. The Coca-Cola Company
research department has done a lot of research.

Promotion Department

In today’s competitive environment, having the right product at the right place in the
right place at the right time may still not be enough to be successful. Promotion is
designed to inform the marketplace about who you are, how good your product is,
and where they can buy it. Promotion is also used to persuade the customers to try a
new product, or buy more of an old product.

Promotions refers to mainstream media: Advertising through common media such as


television, radio, transport, and billboards and in newspapers and magazines.
Because most of the target is most likely to be exposed to media such as television,
radio, and magazines, Coca Cola has used this as the main form of promotion for
extensive range of products.

Promotion through restaurants and cinema hall hordings:

Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca, Sprite, Maaza etc. these
restaurants are authorized to keep and use the merchandising assets of Pepsi.

Advertising:

It is a impersonal salesmanship for mass selling, a means of mass communication.


The company uses adver4tising to trigger desire as often and in as many ways as
possible. Through out the years, slogans or coca-cola have been memorable.

Brand Ambessdors

Coca-Cola had signed on various celebrities including movie stars and cricket
players such as Shahrukh Khan, Hritik Roshan, Amir Khan, Akshay Kumar,

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Aishwerya Rai, Vivek Oberai, Rani Mukherjee, Bipasha Basu, Riya Sen, Saurav
Ganguly, Virendar Sehwag.

Sales Promotion

Coca-Cola gives discount my giving free extra 25% cold drink in PET bottle. Sales
promotion gain additionl market share or additional revenue, expand the target
market.

Distribution Department:

It appoints distributors and establishes a distribution network, processes approved


sale orders and prepares invoices, arranges logistics and ship products, co-ordinates
with distributors for collections and monitors distribution stocks and their set-up.

MARKETING STRATEGIES:

1) Coca-Cola sales club:


This club is for the retailers. In this approach retailers are given some points
once in a month depending upon how they are using the display material
provided by the company to them. This material consists of Fridges, DPS
Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt, Commodity Packs,
Stands, Posters etc. Depending upon these points retailers are rewarded by
certain gifts from the company.
2) Schemes:

Hindustan Beverages India comes out with the schemes on their different products
many times in a year. Most of these schemes are made to benefit the retailers.
Some of the schemes are as follows:
• 1 bottle of 2lt. free with one 2lt bottle pack.
• 1 bottle of 1lt. free with one 1lt bottle pack.
• 2 bottles of 500ml free with one 500ml bottle pack.
• 6 bottles of Kinley free with one pack of Kinley.

3) Advertising:

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Through the consumers survey it has been proved that the T.V. commercials and
sinages affect the consumer buying behaviour by approximately 70%. May be only
Cococola. is investing huge finances in the T.V. commercials and other sinages, big
names of Indian film industries and sports hero’s are being proposed to become the
brand promoters and brand ambassadors.
• Posters
• DPS boards
• Glow Sign boards
• Date calendars
• Cinema hall tickets
• Radio commer
4) Merchandising assets:

Coca-Cola also try to promote their brands by providing their retailers and dealers
some display items. Some of such items are as follows:
1. Fridges
2. Coca-Cola/Mazza stands
3. Display bottles
4. Posters
Retailers usually use the merchandising asset of one company in such a way that it
benefits another company. Sometime they do it unknowingly, sometimes they do it
knowingly and sometimes because of the deficiencies of the company itself. These
deficiencies are as follows: -

1. Irregularity of the salesman to the retailers shop.


2. Shortage of the different products and different packages.
3. Sometimes because of the rude behavior of the salesman.

6) Strengthen distribution network and promotions through word of mouth


through sales man:

Unlike the rival brand Pepsi, Coca-Cola co.. Basically depends upon its sales man
for promoting and launching the new as well as old brands because instead of doing
the business through dealer’s network like Pepsi, Coca-cola believes in making and

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maintaining relations with retailers directly. Therefore salesman is the very important
part of Coca-cola co. marketing strategy.

SWOT Analysis:
Strengths

• Knowledge regarding competitor.

• Hardworking stuff and distributer.

• More market share in textile sector.

• People reliance on quality of product and brand.

• Coca-Cola has been a complex part of world culture for a very long time.

• The Company has a strong and reliable distribution network. The network is
formed on the basis of the time of consumption and the amount of sales

yielded by a particular customer in one transaction.

Weaknesses

• The brands produced by the company are brands produced world wide
thereby making the export levels very low. In India, there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola. In 2003, the Centre for Science and
Environment (CSE), a non-governmental organization in New Delhi, said
aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins including
lindane, DDT, malathion and chlorpyrifos- pesticides that can contribute to
cancer and a breakdown of the immune system.

• The Company’s operations are carried out on a small scale and due to
Government restrictions and ‘red-tapism’, the Company finds it very difficult to
invest in technological advancements and achieve economies of scale.

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Opportunities

• The domestic market for the products of the Company is very high as
compared to any other soft drink manufacturer. Coca-Cola India claims a 58
per cent share of the soft drinks market; this includes a 42 per cent share of
the cola market. Other products account for 16 per cent market share, chiefly
led by Limca. The company appointed 50,000 new outlets in the first two
months of this year, as part of its plans to cover one lakh outlets for the
coming summer season and this also covered 3,500 new villages.

• The Company can come up with new products which are not manufactured
abroad, like Maaza etc and export them to foreign nations. It can come up
with strategies to eliminate apprehension from the minds of the people
towards the Coke products produced in India so that there will be a
considerable amount of exports and it is yet another opportunity to broaden
future prospects and cater to the global markets rather than just domestic
market.

Threats
• The nonalcoholic beverages segment of the commercial beverages industry is
highly competitive. We compete with major international beverage companies
that, like our Company, operate in multiple geographic areas, as well as
numerous firms that are primarily local in operation. In many countries in
which we do business, including the United States, PepsiCo, Inc., is a primary
competitor.
• Consumer buying power also represents a key threat in the industry. The
rivalry between Pepsi and Coke has produce a very slow moving industry in
which management must continuously respond to the changing attitudes and
demands of their consumers or losing market share to the competition.

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Chapter- 4.3

FUNCTIONAL ANALYSIS- HR DEPARTMENT

Human Resource Management is an essential part for any organization. Moreover,


development of this department is the first step, the ground on which the future of the
company depends. It is essential for every single business unit and especially for
such international company as Coca Cola. It is people, not technology who create
the company. Human Resource Management at Coca Cola Company has many
advantages. It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company, cultural and political
differences need to be taken into account.

Basically the HRM practices are necessary for every organization. In multinational
companies like coca cola have their own separate department of HRM.

HR Srategy Of The Company:


Every organization has its own policies and strategies by which they control the
functions of their departments. Similarly, we also have own policies and strategies by
which we control all the functions of our departments. coca cola HR department is
also conducting all the practices of HRM like Job analysis and design of work,
recruitment and selection, training and development, performance appraisals,
compensation, employee relationships, staff welfare and medical policies and some

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other things like that. These all practices are conducted by own policies and
strategies.
HR department not make decisions related of its own department, they also conduct
in company’s decision.

Recruitment & Selection Process


Recruitment process is well established first of all they give ads in news papers,
company website, institutions etc.Once they receive an application form, from
candidates with required documents and C V.

• Internal recruitment

External recruitment

The selection process will vary depending on the position you’re applying for, as one
process can’t fit all the different roles we have here at CCE. However, in most cases
a combination of any of the following tools will be used:

• Interview

• Group exercises

• Presentations

• Psychometric tests

• Role plays/Situational Exercises

• Interview

The interview is designed to reveal more about you and your experiences. We’ll ask
for examples of how you behaved in different situations, maybe at school, university,
a club, at home or in previous jobs. This is not designed to 'catch you out' and our
interviewers will never try and trick you into an answer.

Group exercises

We’re very much a team at CCE so these will show us how effectively you work with
people. They’re a good opportunity for us to see how you communicate, influence
and involve other people in the workplace.

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Presentations

Presentations give you the chance to show your ability to communicate to a group of
people on a specific topic. You may be given a topic in advance or on the day, but
don’t worry – you’ll have plenty of time to prepare.

Psychometric tests

Psychometric tests are timed exercises that examine candidate abilities and
potential. On occasions, we may also use a personality assessment tool that is
designed to find out more specific things about candidate.

Role Plays/Situational Exercises

Designed to assess how you react in certain situations, these help to highlight
particular skills and how well you’re suited for a position. You may be given facts and
figures to review, or a report to complete; we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace.

Training & Development Program

Training process is essential part of every employee with out training; employee can
not come to now the procedure of work, rules and regulations of firm, some times
when new technology is introduced it is also responsibility of a firm to train its
employees.
After recruiting the fresh employee we train them for three months and also pay them
salaries after three months they become part of a firm.

Promotion Policy:
Employee has to complete at least a minimum of 1 year prior to being eligible for any
kind of Promotion.
The criteria of evaluation are as follows:

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• On Bases of performance appraisal scores.
• Attendance (excluding Privilege Leave).
• Competencies
• Education
• Honesty and sincerity

Transfer Policy:
While transfering employee HR Manager must have set objectives.
- Appointment letter must have clause for transfer.
- Transfer should be followed by the following:
- Company letter for exemtping taxes levied on commercial goods while
Transportation of Household Goods.
- Reimbursement of the Transportation Cost.
- Traveling Fare with expenses for family members from present place to his place of
transfer.
- Initial settlement expenses if any as employee asistance for gas connection and
other expenses.

Compensation and Benefits :

HR department manager says that employees are our assets, there for we are
careful about their health and benefits. We give following compensation and benefits:

• Basic salary,

• Bonus

• Medical facility

• Pick and drop

• Gratuity Fund

• Social security.

We get many advantages from our employees because they are happy from
company. Our employees are satisfy from our compensation and in the coca cola

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never downsizing occurred which shows that well relationship between employees
and company.

Empowerment:

Empowerment includes the following, or similar, capabilities:-

 The ability to make decisions about personal/collective circumstances


 The ability to access information and resources for decision-making
 Ability to consider a range of options from which to choose (not just yes/no,
either/or.)
 Ability to exercise assertiveness in collective decision making
 Having positive-thinking about the ability to make change
 Ability to learn and access skills for improving personal/collective
circumstance.
 Ability to inform others’ perceptions though exchange, education and
engagement.
 Involving in the growth process and changes that is never ending and self-
initiated
 Increasing one's positive self-image and overcoming stigma
 Increasing one's ability in discreet thinking to sort out right and wrong

Reward – Punishment System:

The Rewards & Punishment Includes-

Rewards-

• Monetary Incentives
• Promotion
• Bonus

Punishment-

• Demotion
• Transfer

Performance appraisal :

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Coca cola performance appraisal is annually Hr manger waqar mahmood said that
we appraise the employee due to their performance about goals of the
organization .we set the goals started the year and tell the employees about the goal
if the employees achieve this goal we appraise the employees.
Steps in appraising performance
The performance appraisal process process contains three steps;
• Define the job
• Appraise the performance
• Provide feedback

Retrenchment:
Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity
of an organization's operations. Retrenchment is also a reduction of expenditures in
order to become financially stable. Retrenchment is nothing but Downsizing the
Excess Manpower of the Company.

Retrenchment takes place due to the following reasons:

1. Reduction in the Volume of Business


2. Company running on Excess Manpower

Results of Retrenchment:
1. cost cutting
2. Downsizing the Strength so that equal responsibility is shared betn the current
employees.

SWOT Analysis

Strengths:

• Providing competitive advantage to all employees

• Evaluating permormance of the employee time to time.

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• Employees are satisfy from compensation and in the coca cola never
downsizing occurred which shows that well relationship between employees
and company.

Weakness

• No free snacks and tea provided to workers.

• There is no mentoring program are provided to workers so that they can’t


improve their efficiency.

• There is gap between higher level management and lower level management.

Opportunities

• Create a system of mentoring program that includes one-to-one mentoring,


group mentoring, mentoring self-study tools. These programs promote trusting
relationships for networking, coaching, career counseling and life lessons.
The benefits of mentoring also strengthen our company. Mentoring increases
the flow of information across organizational lines and encourages diverse
thinking and cross-functional learning.

• We have a strong commitment to hiring interns through The Coca-Cola


Company Internship Programs. The company offers a number of internship
programs for undergraduate and graduate students.

Threats

• Diversity of employees if competitive company offers more salries, bonus,


etc.

• Promotional opportunities are blocked.

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Chapter – 4.4

Functional Analysis- Finance Department

The finance function deals with the procurement of money at the time when it is
needed and its effective utilization in the enterprise. Money is the life blood to
purchase of any enterprise, as it is required to purchase machines and materials to
pay wages and salaries to employee and to allow credit facilities to customer.

The event of capital-intensive technique has increased the importance of finance.


The ambition plans of an industrial undertaking will remain mere dreams unless
adequate finance is available to convert them into reality. Therefore it has become
an important function of management to provide for adequate finance for the
functioning of the enterprise.

For companies, which carry on production and distribution and distribution on a


large scale provision of adequate finance, is a very challenging task. It affects all the
business decisions where money is involved, since the large commercial and
industrial undertaking are set up in the form of companies, the problem of finance for
modern business is for all practical purpose of the problem of corporate finance.

Any business for the matter whether large or small, profit motive is consider to be a
financial concern and its success or failure to a large extent depends on its financial
decisions. It involves planning and controlling of the financial resources of the firm:
• Purchase finance: clear the purchase proposals
• Priced store ledger
• Bills payable

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Hierarchy of finance department

Finance Manager

AFM
(working
AFM capital)
(payment)

Executive Executive Executive Executive Executi


Exec

(exci
utive

se)

(bills) (freight) (claims) (cashier) ve


(credit
control)

Functions:

The finance department gets funds extremely from the sales holders and banks. They
provide funds only for expansion purpose and purchase of fixed capital like
machinery, plant & building etc, on long term loan basis. The working capital is
provided by the internal working capital.


Planning


Acquisition of funds


Investments of funds

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Dividend decision


Preparing of financial statements


Accounts payable


General ledger


Working capital management

Planning of funds
Planning of funds refers to the total funds required which includes both fixed and
working capital requirement. In the current year

Acquisitions of the funds


The company acquisition funds from different resources like they gets funds from
share holders by issuing shares, and borrowing money from banks in the form of
loan and they get fund from sales of scrap existing in the organization.

Allocation of funds
The Company allocates the funds what they required from different sources:
• To purchase raw materials.
• To salaries for employees
• To expenses
• To pay the interest for the loan amount.

Investment decision
Investment decision of investment in the capital assets, investment in current assets
which are purchased by the company.

Dividend decision

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Dividend decision in percentage of profits to be paid to its shareholders by the
company on the basis of their shares.

Preparing of financial statements


The company prepares the financial statements like trading and profit or loss
account, balance sheet, cash budget, cash flow statements and, fund flow
statement.

Financing resources of the organization


The company has the following source of funds


Share capital


Secured loans


Unsecured loans


Total shareholder funds


Cash reserve

NET FIXED ASSETS

Fixed assets are shown at the cost less accumulated depreciation. Cost
comprises of purchase price, import duties and other nonrefundable takes and any
other directly attributed costs. Fixed assets mainly consist of land building, plant &
machinery, furniture and fittings, equipment, motor cars and other vehicles.

The company Net fixed assets are worth Rs 70 Crore.

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CURRENTS ASSETS

Current fixed assets of the company are worth Rs. 15 Crore.

CURRENT LIABILITIES

The current liability of coca cola (Patna) is Rs. 25 Crore annually.

NET SALES

The net sales of the company are Rs120 Crore.

PROFIT BEFORE TAX

The profit before tax is Rs.7, 535,000/- as on Dec. 31st 2009.

PROFIT AFTER TAX

The profit after tax is Rs.6, 307,000/- as on Dec. 31st 2009

CAPITAL STRUCTURE: The capital structure of the company is Rs. 400 Crore.

SWOT ANALYSIS OF FINANCE DEPARTMENT

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Strengths


Proper recording of accounts by using modern software’s(i.e. customized
ERP )


On the basis of requirement, funds are required, provided by the financial
institutions.


Many banks are ready to give loans for the establishment and development
of industry.

Weakness


There are a stringent set of financial rules, each proposal has to fulfill the
requirement of those rules.


Working capital management is not up to the mark, lack of co-ordination
between departments.

Opportunities


Huge market potential both in domestic and internationally by proper
investment planning.


The company can increase their investment opportunity by planned
borrowing.

Threats

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Not taking measures to reducing production cost adopting proper costing
method may lead to problem.

CHAPTER- 5
ORGANISATION SWOT ANALYSIS
Strentghs:

• The production, marketing and distribution systems are very efficient due to
forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs.
• The products produced and marketed by the Company have a strong
brand image. People all around the world recognize the brands marketed
by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up
and Maaza add up to the brand name of the Coca-Cola Company as a
whole. The red and white Coca-Cola is one of the very few things that are
recognized by people all over the world.
• Advertising plays a major in promoting sales of the product. The company has
got one of the best advertising strategies. Appointing film actors, as the brand
ambassadors, makes a great impact on the mind of the customers. The
company should try to launch more and more advertising and sales
campaigns to promote sales to the maximum.

Weaknesses:
• The company has got a pricing strategy as there is no certainty of rising or fall
of price during the peak season. This also hamper the sales of the company

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as the retailers and distributor get dilemma whether to place the next order or
not as increase or decrease in price may hamper their profit margin and
blockage of the goods.

• The brands produced by the company are brands produced world wide
thereby making the export levels very low. In India, there exists a major
controversy concerning pesticides and other harmful chemicals in bottled
products including Coca-Cola. Therefore, people abroad, are apprehensive
about Coca-Cola products from India.

Opportunities:
• Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income. Unlike olden
times, people now goods of their choice without having to worry much about
the flow of their income. The beverage industry can take advantage of such a
situation and enhance their sales. have the power of buying.
• Coca- Cola Company has got more than 300 brands which is running
successfully over the world. Thus it can launch some more brands in the
country, after studying the demand and desire of the people and can deep its
roots by winning their minds and hearts.

• As India is said to be one of the biggest market in the world, thus the
company survive for long and can expands to its length and width. Still there
are thousand of villages which have not been covered by soft drink
companies. If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole
nation.

Threats:

• The tax system in India is accompanied by a variety of regulations at each


stage on the consequence from production to consumption. When a license is
issued, the production capacity is mentioned on the license and every time

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the production capacity needs to be increased, the license poses a problem.
Renewing or updating a license every now and then is difficult. Therefore, this
can limit the growth of the Company and pose problems.
• One of the strong competitors of the company is Pepsi Co. thus it has to
formulate such strategies which make it to remain one step ahead and give a
strong competition to the competitors.

• The rural market may be alluring but it is not without its problems: Low per
capita disposable incomes that is half the urban disposable income; large
number of daily wage earners, acute dependence on the vagaries of the
monsoon; seasonal consumption linked to harvests and festivals and special
occasions; poor roads; power problems; and inaccessibility to conventional
advertising media. All these problems might lead to a slowdown in the
demand for the company’s products.

Chapter – 6
SUMMARY OF FINDINGS AND SUGGESTIONS

It could be seen that “economical variables” highly affects the Coke’s resolution.
Economic factors are those actors who effect the production of any industry. So,
Coke is not the out of question. If the economic conditions of the country is not that
strong and Coke increases its Price in this situation. Then it would impact highly
negative. And inflation is also not a good position for any country’s production point
of view. It also impacts highly negative in the Coke’s production.

The Coca-Cola Company has always believed that education is a powerful force in
improving the quality of life and creating opportunity for people and their families
around the world.

Of course business innovation leaves highly good impacts in the business of Coke.
As coke use more advance technology in its production process. It will result in
increment of their production throughout the country.

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As far as the “governmental hindrances” are concerned the impacts highly bad on
coke’s production. Ever year when budget in announced government taxes rates
always shoot up. This approach of government decreases the profit margin of Coke.

Coca-Cola has always had a close consumer and supplier relationship with its
customers. Its entertaining and colorful advertisements have always and will always
rock the media. Indian rock stars, sportmen, and actors have played a very vital role
in making Coca-Cola such a popular beverage.

Coca-Cola is the leading soft drink brand in Patna region & most selling brand in the
region is Thumps Up, Sprite and Maaza.
According to most of the outlet owners the product which is seen is sold i.e. "Jo
Dikhta Hai Woh Bikta Hai"
Few activation elements like Table Top, Glow Shine Board, Hanger; Road Stand
plays a major role in increasing sell of the soft drink.

Conclusion

In this particular city Coca cola is doing well as compared to Pepsi. But there are
few mixed outlets too. So to increase the market share of Coca cola it should tap all
the mixed outlets. About 80% of market is owned by it, yet more is expected to be
achieved. Coca cola is trying to increase its expansion by:

• Entering to the Milk segment.


• Providing the packed Lemon water.
• Entering to the organized Juice market.

Company should take advantage of its positive aspect like rain harvesting and many
social activities. Coke is investing a huge amount on advertising, it should reduce the
advertising cost and that amount should be used in various promotional offers then
the sell will increase like any thing. If sale increase obviously the market share will
also increase.

There are few threats that the company should not neglect, they are like-

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1. People are becoming health conscious hence switching to fresh fruit juice
2. Omfed is also gaining its weightage in soft drink market
3. Amul cool also is increasing its demand
4. Increasing crowd in fruit juice and lassi stalls are alarming
5. It also can introduce vitamin water considering health consciousness of
customers

So, considering these problems if Coca Cola Company looks after these problems
and tries to rectify it then definitely coca cola would be the number one company in
the world according to revenue generation where now it holds the fourth position.

Suggestions
I can sum the recommendations in brief as follows :

• Aggressive Marketing .

• Regular visit to distributors.

• Sales promotion and advertising to be made more frequent for brand building

• Communications should be improved. Fulfill the Demand of product by


company . In the field’s sales situation. Sales persons work independently and
away from the office .

• Good communication requires interaction between those preparing and those


receiving reports. A good sales reporting system provides both for
communication from the field to office and form office to the field.

• Sales reports provide data for evaluating performance.

• Company should make plans for better performance to the sales man.

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• Company should be implement the customers suggestions and complaints
about products, service policies, price changes, advertising companies etc.

• Company should gather information of competitor’s activities. Transportation


confers time utility and place utility to the product. It determines the
company’s customer service; it has also crucial bearing on the other elements
of physical distribution and marketing.

Chapter- 7

Learning Experience

I didn’t have any idea about the great company like Coca – Cola. What I had learnt in
my entire 1st year course I realized this practically during my internship programme. I
got a chance to deal with corporate citizens. In the beginning when I joined here I
was only concerned about the data collection which was interesting. Then I was
assigned a project known as Organisation study of HCCBPL. I did the project very
carefully which gave a successful outcome.

The co-operation by management & employees is really helpful. The project aims at
mainly to increase the market share in low market share areas and to tap the
potential market where our presence is unfelt. So that it will create some awareness

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in the mind of the people and it can easily identify the problems faced by competitor
counter.

This Internship gave me an insight of what the Theory reads and what exactly
happens on the floor, I learnt the actual difference between the theories that I study
in its practical applicability in the organization. I learnt how the business operates
and exposed to a wide range of company aspects.

I also came to know about the importance of the training and development and how
it would help the employee

Now I know fully about manufacturing sector. I wish after completion of my study I
may join any organization like Coca-Cola.

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BIBLIOGRAPHY
TEXT BOOKS

Production and Operation Management

Marketing Management- Philip Kotler

Human Resource Management- K. Aswathappa

WEBSITE

www.google.co.in

www.cocacolaindia.com

www.wikipedia.com

Journals

Monthly Circular of Coca-Cola

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