Coca cola is a cola (a type of carbonated soft drink)

Coca-Cola product invented by pharmacist john stith pemberton in 1886

Coca cola is a manufacturer, distributor and marketer of non-alcoholic beverage
company
best known for its flagship product Coca-Cola
The coca cola company produces and sold concentrate syrup to bottlers who
holding coca cola franchise.
Coca-Cola currently offers more than 400 brands in over 200 countries and serves
1.6 billion servings each day
having headquartered in Atlanta, Georgia a state of USA
Its stock is listed on the new York stock exchange

History of coca cola

The first coca cola recipe was invented in covington,gorgia, by JOHAN
STITH PEMBERTAN
originally as a coca wine called pemberstons
french wine coca in 1886.
The first sale were made at Jacobs pharmacy for
5 cents in atlanta,on may 8,1886, and for first eight
months only nine drink were sold each day.
company established in 1891 as the J.S. Pemberton medicine company,
a co-partnership between Dr. John Stith Pemberton and Ed Holland
It incorporated in 1892 as coca cola company (the current corporation)
The company was formed to sell three main products
Pemberton French Wine Cola (later known as Coca-Cola)
Pemberton Indian Queen Hair Dye
Pemberton Globe Flower Cough Syrup

Coca cola in Pakistan

The Coca-Cola company began operating in Pakistan in 1953
Coca-Cola, Fanta and sprites are the brand in Pakistan
The Coca-Cola system in Pakistan operates through eight bottlers, four
of which are majority owned by Coca-Cola beverage Pakistan private
limited (CCBPL)
The Coca-Cola system in Pakistan serves 70000 customers retail
outlets
During the last two years, Coca-Cola system in Pakistan has invested
$130 million
CCBPL operated under the supervision of the Coca-Cola international
Coca-Cola owns 10 plants all around in Pakistan which are in Karachi,
Lahore, Rawalpindi etc.

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Mission + Commitment = Focus

Focus + Action = Results

Mission
To refresh the world

To inspire moments of optimism and happiness

To create value and make a difference

Vision
Our vision serve 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 that
anticipate and satisfy people desires and needs.
Partners: Foster a winning network of customers and suppliers,
together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build

and support
Profit: Maximize long-term return to shareholders while being careful
of overall responsibilities
Productivity: Be a highly effective, lean and fast moving organization

Values
Coca-Cola values serve as a compass for its actions and describe how it
behave in the world.

Leaderships: the courage to shape a better future

Collaboration: leverage collective genius
Integrity: Be real
Passion: committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do will

OBJECTIVES OF THE COMPANY

Coca-Colas first objective is to maximize share value over time.
To ensure the strongest and most efficient production, distribution, and
marketing system as possible
to be globally known as a business that conducts business with
responsibility and ethical standers

accelerate sustainable growth to operate in tomorrow's world

struggle towards a goal and create new drinks with objective to

continue and sustain market share
spending more time in creating new ways to commercialize their
product everywhere
Maximize long-term cash flow

STRATEGIES
Distributes products through restaurants, grocery markets, street
vendors and others, which sell to the end users.
Introducing new products, innovative packaging and collaborating
with customers.
Acquisition to gain competition advantage. For example mineral water
companies.
Apply different kinds of marketing strategies according to region.
Increase investments in bottling investments, equipment and people.
Collaboration with Apple iTunes involved in a digital program focuses
on youth.

COMPETITOR ANALYSIS
Competitor of Coca-Cola in Pakistan are following:

PEPSI:
PepsiCo is a world leader in convenient foods and beverages.
PepsiCo was founded in 1965.
The brand are available in nearly 200 countries and territories.
Pepsi is direct competitor of Coca cola. There is always stiff
competition between these two.
Pepsi market share in Pakistan are 54% and Coca-Cola are
36%.
both companies often engage in price cut wars, price scheme
wars, and sponsorship wars to win over each other customers.

INTERANTIONAL MARKET SHARE

GLOBAL MARKET:341.6 billions

CORBONATED DRINKS

OTHERS; 31%
COCA COLA; 49%

PEPSI CO INC; 20%

NESTLE
Nestle does not give tough competition to Coca-Cola.
It mainly deals with baby foods, milk products and
chocolates.
But the iced tea that nestle launch provides tough
competition to the Coca-Cola.
Iced tea is one of the closest substitutes to the colas.

SHEZAN
Shezan international limited is Pakistani beverage, corporation and
manufacturer.
Company produce various products including soft drinks, juices.
The company is single largest grower of mangoes in Pakistan. The
company is best known for its trademark product shezan mango a
drink popular in Pakistan.
The Coca-Cola company in Pakistan are in so much competition with
shezan especially in the season of mangoes.
When the mango season came the Coca-Cola sales are drop down up to
the extent.

ORGANIZATIONAL DESIGN
Before the nineties the Coca-Cola company was having a centralize
system of control, but after sometime they adopt a decentralized
system in which the authority of decision making is distributed among
different managers so that every sector can be managed effectively.
Now the organization having two groups responsible for operating:
a)

Bottling investment
b) Corporate

) Operating groups are also divided by different regions i.e. Africa,

Asia, Middle East, European Union etc. All the divisions are further
divided into geographical regions

 This allows the local market to involve in decision making

which help the organization to responds quick to the
changing demands of the market
Also helps the upper level managers to concentrate on the
long term planning of the organization.
The company corporate division have different departments
which are
Finance department
Human resource department
Marketing department
Innovation department
Planning department
the decision making job is most of the times done by the top
level management.

ORGANIZATION STRUCTURE
Coca-Cola is tall in terms of organizational complexity. Coca-Cola
is controlled through a vertical hierarchy, decision making is the
authority of the company upper management.
Daily and routine decisions are made by the line managers at the
middle level.
Coca-Cola head office is responsible for providing overall
direction and support to the regional structure.
The company executive committee makes key strategic decisions
for the company.
The chair of the executive committee acts as a figurehead for the
company and chair the board meetings. He is the CEO and senior
decision maker of the company

 Each division of the company has a marketing manager,

public affairs director, finance director etc.
When one of these divisions is planning to do something,
an advertising campaign for example, the division has to
communicate with their superiors to get approval.

The organization structure is shown by the graph:

MANAGEMENT STYLE OF COCA-COLA

A management style is an overall method of leadership used by the
manager
management teams at Coca-Cola has in motivating its employees to
meet their objectives is based on the management style they adopt.
There are three main management styles
Democratic
autocratic
laissez-faire style.

Democratic
individuals and teams are given responsibilities and decisions to make,
usually within a given framework. If anything wrong happens then the
individuals and teams are held responsible for the decisions that are
chosen
Autocratic
leader keeps strict control over the followers by keeping close regulation
of the policies and procedures given to the followers the leader makes all
the decisions and there is no negotiation with followers
laissez-faire style
The Coca-Cola company has a culture that is run in the laissez-faire style
meaning the hands off approach.
the laissez-faire style sometimes described as the hands off leadership
style
In this the leader delegates tasks to their followers, while providing little
or no direction to the followers.

MA

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Planning
Organizing
Leading
Controlling

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Planning
In Coca-Cola Company Planning is done by upper level managers setting
pre-determined goals for the overall organization.
Planning is made for different types of goals which are discussed as
follows:

STRATEGIC GOALS
the strategic goals are made for long term but Coca-Cola Companys
strategic goals are set for three years set by the Managing Directors of the
company
Strategic goals of Coca-Cola Company:
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
Along with the complete tactical and operational support.

TACTIC GOALS
Tactic goals are set at annual basis. The top level management decides
these goals with the consultation of the lower level employees

The following are the tactic goals of the company:

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
The operational goals are also set by the Managing Director of the
company
Before implementation consult with lower level employees and after
convincing them they implement the goals
In operation goals the company uses Management by objectives (MBO)
approach

Decision making
Decision making process is centralized in the company. The top level managers
take their time in making the decisions and all the possible alternatives are kept in
mind before going for the economic solution.
The top level managers dont consult with any employee in case of programmed
decision making
The decisions which are taken by the top level of management in the Coca-Cola
Company:
The package positioning

Trade discounts

Advertisements

Price reductions

Distribution

The ordinary routine decisions are made by the line managers of the middle level
after getting the permission from the general manager.

ORGANIZING
The following steps are taken by the Coca-Cola Company in organizing
their goals and objectives:
Departmentalization
Work Specialization
Delegation and Accountability
Resource Allocation
Organizing the Human Resources

DEPARTMENTALIZATION
On the basis of functional approach the Coca-Cola Company is divided
into different departments
Grouping of employees is done on the basis of their skills and work
activities in solving their problems and make the less need of training the
employees specially
The general manger is head of all the departments all the department have
to report to the general manager
There are five major departments in the company:
Production Department
Industrial Relations Department
Sales and Marketing Department
Human Capital Department
Finance Department

Work Specialization
Every task is assigned to specialized person that the task to do in such a
manner most nearest to the desired objectives
There is a high percentage of work specialization in the Coca-Cola
Company because every manager is appointed in the function in which he
is expert
All the promotions of the employees are based on their performance no
favoritism and nepotism is allowed in the company
The Coca-Cola company is world wide known to it specialized
personnel's

DELEGATION AND ACCOUNTABILITY

There is a high percentage of delegation in the company. The work is
done with proper authority and responsibility
Every manager is made accountable for the actions of his subordinates.
All the subordinates are guided very keenly by their respective managers
at the time of accomplishing some goal
managers also motivate their subordinates to boost up their energy and
make them more effective

RESOURCE ALLOCATION
the Coca-Cola Company has given the authority to managers to use the
resources of the company where ever and whenever they are needed
Only they required to get the approval from the manager if those assets
belong to his department.

ORGANIZING THE HUMAN RESOURCES

The company does the recruitment process when there is a position
empty and the recruitment is always done on permanent basis in CocaCola Company.
Recruitment is done when the manger needs the employee under him
and he send the request to the general manager and after the approval
of the general manager the request is sent to the Human Resource
Department.
In Coca-Cola firstly all the vacancies are announced within the
organization so if there is someone who fulfill the requirements can
get himself promoted or can refer someone of his relative to join. If
there are no suitable persons than the company searches its bank
where there are huge amount of application of the applicants. If no
person suitable for the job then at last they give the advertisement in
the newspaper etc.

LEADING
The third management function is leading. The following major steps
are taken by the Coca-Cola Company in the leading function:
Motivation
Communication
Corporate Culture

MOTIVATION
Coca-Cola Company gives high attention to the motivation of the
employees
Promotions of hardworking employees are a part of the companys
policy. Promotions of employees are done on the performance basis
higher his performance there is more chance of his promotion.
Coca-Cola Company also uses the compensation strategy to motivate
the employee
Managers play a very important role in the motivation of the
employees. They help them in all their problems either they are
personnel or professional. They give them feedback on their
performance which makes the employee feel good.

COMMUNICATION
There is an open environment in the Coca-Cola Company which
allows the employees to communicate with each other and it allows
the information to flow inside the company
Before making the decisions the top level managers discuss it with the
middle level managers and before decision making it is shared till the
end of the hierarchy
The Coca-Cola Company allows the employees that anyone of them
can meet the general manager if he/she is facing any kind of difficulty.
Interdepartmental communication is done in the form of formal and
informal manners

CORPORATE CULTURE
The management of the Coca-Cola company tries to follow the
prescribed culture of the organization

The company has formal and documented values that are

communicated to all the employees.

The top level manager acts as role models to make sure that the rules
and regulations are been applied in the company.

CONTROLLING
The last and the most crucial function of management are
Controlling. In this function the company evaluates that either they
have achieved the goals which they had set before
If the answer is yes then the employees and managers are rewarded
with bonuses and other ways.
Know we discuss that how the Coca-Cola Company performs its
controlling function?

SALES PERSON REPORTING SYSTEM

Sales person had to report to the area market developer every day
about his activities.
Attendance of the sales person is taken with punch card system.
Every sales person is given a route card in which there are details of
visit of the outlet, how much time he spent on the outlet.
Sales person is also given a form to fill up for the orders for the next
day to be loaded In the vehicle.
This makes the managers know that how much sales of which brand
and the size of the product are been done by the sales person.

SALES PERSON EVALUATING SYSTEM

Evaluation of all the sales person is done on quarterly basis.

Evaluation helps in the promotion to higher level in the organization.
Performance plan is kept as base to evaluate the performance of the
employee.
The measurement is done on the basis of achievement of targets which
were set.

ENVIRONMENTAL ANALYSIS
SWOT ANALYSIS
STRENGTHS:
Strong leading brands with high level of consumer
acceptance
Large scale of operations
Leading market position
Strong cash flow from operations
Personnel relations
Extensive advertising
Strong distribution network
Largest sponsorship in games such as football, Olympic etc.

WEAKNESSES
Negative publicity
Sluggish performance
Slow decision making
Less number of retailers
Vehicles are less
Not planned for setting up new plants

OPPORTUNITIES
Expansion-reaching all segments
Booming global functional drink market e.g. energy drink
Catering to health consciousness of people
Bottled water growth
Acquisitions of small players
Increasing trend of cold drink of different brands

 THREATS:
Threat of substitutes
Fake beverages
Differentiation in tastes
Mango season in Pakistan is great threat
Intense competition
Commodity prices growth
Overdependence on bottling industries
Image perception in certain parts of the world

PESTEL ANALYSIS
POLITICAL FACTOR:
Changes in laws and regulations, including changes in
accounting standards.
Political conditions, especially in international markets,
including civil unrest, government changes and restrictions
Taxation policy
ECONOMICAL FACTOR:
Major hindrance of business activities in Pakistan is
electricity shortage

 Economic factor is major threat in external environment

for Coca-Cola; the major problem that they are facing is
getting maximum output with minimum input the reason
is due to shortage of electricity and devaluation of
currency.
High inflation rates are also disturbing the disposable
incomes of consumers.
Economic factor can affect the consumption of soft drinks.
When there is economic crisis people only buy there basic
need product such as food etc. as a result the sales of coke
goes down.

 SOCIAL FACTOR
In Pakistan people are hard worker, trend of working for
long hours, high population density, joint family system
are some of traits of Pakistan socio-environment.
A majority of Pakistani population is consist on Muslim
community, so they have to be careful for using
ingredients in manufacturing process. In Pakistan religion
and culture are those factors if companies try to go against
them people will go against them. But Coca-Cola strictly
following these factors.

 Due to high population density and trend of working for

long hours; cheap labor is easily available
High youth population is an indicator/surety for long
survival in Pakistani market.
TECHNOLOGICAL FACTOR:
New technology of internet and television which use
special affects for advertising. They make some product
look attractive which helps in selling the products.
Introduction of cans and plastic bottles have increased
sales for Coca-Cola as these are easy to carry and one can
bin them once they used.

 In Pakistan, advancement in automation and information

technology have posed the challenging situation for
organization in future.
The technical progress in Pakistan especially in IT sector
would bring positive impact on Coca-Cola.
ENVIRONMENTAL FACTOR:
This factors include weather and climate change. Changes
in temperature can impact many industries.
The company is in the process of setting specific global
targets, in addition. The company has worked hard to
advance community recycling programs.

 In 2008, Coca-Cola Pakistan sponsored coke studio

which provides platform for renowned as well as
upcoming and less mainstream artists of various groups.
Coca-Cola system supports numerous litter prevention and
beautification organizations around the world, including
keep Australia clean in Australia and also in many other
countries.
LOGICAL FACTOR:
Coca-Cola perform thorough study of legal and political
problems to decide to enter into any country.

They track the previous record of the ruling party and

policies.
They also keep in mind the attitude of other opposition
parties about foreign companies.
If any problem arises they dont sacrifice their policies and
secrecies, as we have a case of coke and Indian
government. When Indian government asked to have
formula for the concentrate they deny and left the huge
Indian market.

Thank You!

Please enjoy a delicious

and refreshing Coca-Cola
Classic!

ANY QUESTIONS???