Internship on Coke

7/30/2019 Internship on Coke

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Organizational Structure

Following table shows different Departments in CCBPL along with theirrespective functions

Department Function AccountsDepartment

To prepare monthly, quarterly andannually Accounts, Costing, Budgeting& Forecasting. To handle payable andinsurance, Inventory & Stores etc.

FinanceDepartment

Arranging Finance and negotiate overcoat of finance, To handle sale,receivable, debtor aging, cash and bank etc.

Internal Audit To monitor the implementation of internal procedures, policies internalcontrol systems and repot any violation.Detection and control of financial risk and frauds.

InformationTechnology

Department

Development of SAP program,Networking, Hardware Maintenance

Human Resource Hiring new manpower, satisfaction,Motivation, Appraisals etc

HealthEnvironment &Security (HEC)

ISO Audit and ISO implementation,Internal safety & environmentalawareness and health improvement.

ProductionDepartment

To undertake production activity andmaintain desired production volume

Electrical &Instrument

Maintain and economies electricity consumption, Installation andmaintenance of Electrical & ElectronicsInstruments

MechanicalDepartment

Installation and maintenance of plantand machinery.


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Research andDevelopment(R&D)

Product development, productimprovement and economiesproduction cost by discovering raw material substitute or change inproduction process.

Quality Control Maintain quality and deal withcomplaints

ProjectDepartment

To design and build structural design of new plant to be installed.

Marketing & Sale To increase existing demand, to work asorganizations intelligence in largeouter environment, customer

satisfaction, advertisement, smoothdispatch, rationing of products in caseof excess demand

Executive Summary

The Coca-Cola Company is the world's leading manufacturer, marketer, and

distributor of nonalcoholic beverage concentrates and syrups, with worldheadquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage basesfor Coca-Cola, the Company's flagship brand, and over 230 other Company soft-drink brands are manufactured and sold by The Coca-Cola Company and itssubsidiaries in nearly 200 countries around the world.

Coca-Cola is the world's leading manufacturer, marketer and distributor of nonalcoholic beverage concentrates and syrups. Company manufactures beverage

concentrates and syrups and, in certain instances, finished beverages, which wesell to bottling and canning operations, authorized fountain wholesalers andsome fountain retailers. They also market and distribute juice and juice-drink products. In addition, they also have ownership interests in numerous bottlingand canning operations.


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They compete in the nonalcoholic ready-to-drink beverage business. Theirofferings in this category include some of the world's most valuable brands, 232in all. These include soft drinks and non-carbonated beverages such as sportsdrinks, juice and juice drinks, water products, teas and coffees. As discussed

earlier, to meet their long-term growth objectives, they make significantinvestments to support their brands. This involves investments to supportexisting brands and to acquire new brands, when appropriate.

The coca-cola company started his business in Pakistan in 1960.All businessactivities in Pakistan are monitored by The coca -cola export corporation(TCCEC). Head office of TCCEC is in Karachi at that time but now days it isshifted to Lahore. But this TCCEC only monitored business activities, thiscompany issued license for plants in different cities of Pakistan to startproduction according to company standard.

In 1990 decided for acquisition worldwide. Actually they are operated their business through joint venture, now they decided for acquisition. Thats why in1996 The Coca -Cola Company buys the Karachi plant, at that time TCCECdecided to form a new company to monitor the operation of bottling in Pakistan.So Coca -Cola beverages Pakistan limited (CCBPL) is the company, which isresponsible to monitor the operations of bottling in Pakistan. Some time people

says that there is no difference in CCBPL and TCCEC, but the basic difference between both companies is that CCBPL is responsible for bottling operations andTCCEC is responsible for marketing and corporate decision world wide.

On the whole Accounts Department is consisting of about 14 permanentemployees. As mentioned in the organ gram of the CCBPL, Multan Plant Mr. Aamir Ahmad Jan was the Head of the department during my internshipprogram. He is a competent person in the field of Accounting. As mentioned inthe organ gram of Marketing Department it is basically a subpart of Sales and

Marketing Department. Basically the task is divided into two parts onis Sales and the other is Marketing . Marketing in CCBPL means the co-ordination of the sales department. The basic task of the marketing department isthe distribution and checking of company assets in the market in the form of Deep Freezer, Visi Cooler, and Chest Cooler or in the form of Cabins, boards,hoardings etc.


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Accounts Department is responsible for proper flow of cash and for thecontrolling of financial assets of the organization. The budget is allocated by TCCEC (The Coca-Cola Export Corporation) for the period of month or two andfinance manager of TCCEC used to come there to check the financial activities.

On the whole Finance Department consists of 25 (Twenty five Employees).

Logistic department is basically the combination of two departments these areFleet and shipping department. The whole transports and vehicles are arrangedand maintained by Fleet department. And shipping department is responsible forthe maintenance of inventory of empty bottles. On the whole logistic departmentis consists of 27 permanent employees. And rest of the employees work on daily wages.

After take over of the company in late 90s, progressive management enables theorganization to increase the profitability continuously in last many years and thecompany is continuously increasing its market share consistently. Increase inprofits and sales volume is shown in financial analysis of the firm and it isindicating that firm is achieving more and more effectiveness day by day.

I spent about 6weeks in the plant. During this period, I got a lot of practicalknowledge in various fields. Especially I got a chance to practically work in Accounts & Finance Department and apply all those concepts in reality that Ilearnt in my MBA program. I worked as an active member of the team that was working on Accounts Assistant. This project was basically a check on theMarket Development Officers to see whether the assets of the company arepresent in market in proper shape or not. Another objective was to minimize themisuse of these assets.

Career Planning

The company provides attractive salary packages as well as good careerprogressions to its employees. Special attention is given to Succession plans to fillup gaps required at the time of need. The employees are made aware of theircareer progressions profile righ t at the time of induction.


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Chairmans Message

I am pleased with the progress we made in 2005 toward our goal of deliveringconsistent, sustainable growth. In 2005, both profits and unit case volumereached a record high, and our employee morale improved. Our Manifesto forGrowth has set our strategic road map, and the engagement of our people hasgiven us a solid start.

Sustainable growth is how The Coca-Cola Company will regain its position as the beverage provider of choice for consumers, the employer of choice for our people,the partner of choice for our customers and the investment of choice for our

shareowners.

We understand the unspoken agreement between our Company and those whochoose to purchase and consume our products every day around the world. Weunderstand our responsibilities as an engaged citizen of the world. We believe welead a system that creates value and makes a positive difference everywhere itdoes business. Taken as a whole, the Coca-Cola system--comprising The Coca-Cola Company and our bottling partners--is one of the largest consumer productsenterprises in the world, with hundreds of thousands of employees and an

estimated $80 billion in revenue.

My priority in 2010 was to continue building on this unrivaled foundation todeliver long-term sustainable growth while being mindful of our short-termcommitments. Our work is far from finished, but as we've moved from words todeeds and from plans to actions, the initial impact of our efforts shows clearly inour 2005 results.

In 2005, our Company earned $2.04 per share, an increase of $0.04--2 percent--

over 2004. Volume grew 4 percent to 20.6 billion unit cases, and net operatingrevenues grew 6 percent to $23.1 billion. Through Our Manifesto for Growth , weidentified strategic corridors for expansion to complement our core carbonatedsoft-drink business. We more effectively integrated marketing, strategy andinnovation while reinvesting an incremental $400 million in those capabilities.


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And we introduced new products--capturing greater share--in juice and juicedrinks, water, energy drinks and sports drinks.

Beverage Industry in Pakistan

The beverage industry of Pakistan has become a play ground for many firms likeCoke, Pepsi, RC Cola, Amrat Cola, Gourmet Cola and many others newly introduced local companies. But only two companies share most of the marketshare, Pepsi and Coke. These two companies jointly are enjoying a market shareof more than 90%. But still a very huge share of this market is still uncovered. Butin covered areas, it can be said both the dominant companies are facing very stiff competition from each one another.

The newly introduced brands are still disabling to find a stable position yet andstill most of them are not considered as real competitors of these two players onany base, product quality, availability, visibility or promotion.

The positioning of these two well-known brands is almost same. A huge part of the market is still unable to differentiate between these two products and they areconsidered as perfect substitute of one another. On the other hand the other new brands like Gourmat Cola, Amrat Cola, Double Cola, and Makkah Cola etc. arestill considered as inferior on basis of quality. This is one of the reasons why these

brands are still unable to create their market and capture the share of these twogiants of the industry.

The religious campaigns against these two brands that were carried on by some of the religious groups in near-past acted as a break-through for these newly introduced brands but they could not make the best use of this opportunity andtherefore they are still struggling in the market. But it cannot be said that thesecampaigns were wholly failed and could not disturb the business of these twofirms. A negative image of Pepsi has created in minds of some religious peopledew to its affiliation with Israel.

So, it can be said that there are only two main competitors in this industry inPakistan like most of the other countries of the world. But the statistics of thisindustry are very much different in this market from most of the other countries.Coca Cola is unlikely not the biggest player and Pepsi is having a very clear lead


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as it is having in most of the South Asian countries. Pepsi is claiming a marketshare of about 60% of the total market; on the other hand Coke is claiming amarket share of about 37% to 40%. And both the competitors are also claimingthat their market share is increasing rapidly.

Introduction of Coca-Cola

The Coca- Cola Company is the worlds largest beverage company, The Coca -ColaCompany markets four of the worlds top -five soft-drink brands Coca-Cola, dietCoke, Sprite and Fanta. And now currently the company has offered two new products in this market, Sprite 3G and Fanta Citrus. Sprite 3G is doing its

business successfully and meeting the expectations of the management by capturing market share of Dew quickly but on the other hand the second newly introduced product is not meeting the expectations and still struggling to find outa proper place in the market but it is expected that the company may stop itsproduction of this product in near future. Their beverage offerings encompassnearly 400 brands, including coffees and teas, juices and juice drinks, sportsdrinks and waters as well as carbonated soft drinks . With operations in morethan 200 countries, they have a diverse workforce of approximately 50,000individuals. Together with their subsidiaries and bottling partners , they strive to be an integral and contributing member of each of the communities where they operate.

The Coca-Cola Company is the world's leading manufacturer, marketer, anddistributor of nonalcoholic beverage concentrates and syrups, with worldheadquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage basesfor Coca-Cola, the Company's flagship brand, and over 230 other Company soft-drink brands are manufactured and sold by The Coca-Cola Company and itssubsidiaries in nearly 200 countries around the world.

By contract with The Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soft drinks within certainterritorial boundaries and under conditions that ensure the highest standards of quality and uniformity.
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Operational Structure All Over the World

The Company's operating management structure consists of five geographicgroups. The North America Group comprises the United States and Canada. The

Latin America Group includes the Company's operations across Central andSouth America, from Mexico to the tip of Argentina. The Greater Europe Groupstretches from Greenland to Russia's Far East, including some of the mostestablished markets in Western Europe and the rapidly growing nations of Eastern and Central Europe. The Africa and Middle East Group encompasses theMiddle East and the entire continent of Africa. The Asia Pacific Group hasoperations from India through the Pacific region including China, Japan, and Australia.

In past it was seen that the company was paying more attention to European and American region but now it is recognized that the Middle East region is muchmore attractive as compare to those areas due to intensity of population andsome such markets which are still not captured by any of the firm. So, now thefirm is paying more attention towards these areas to increase market share of thecompany in these countries. The visit of chairman in 2005 is an evidence of thisfact that company is now focusing on this region to maximize its share in thismarket. According to the management of the firm, they are working on a plan toachieve about 50% of the market share by 2011.

Mission of Coca-Cola Company

From their heritage to their mission to the people who bring their products tothirsty consumers, The Coca-Cola Company is a part of lives everywhere.

Their Mission is

To Maximize Share -Owner Value over Time.

In order to achieve this mission, they must create value for all the constituentsthey serve, including their consumers, their customers, their bottlers and theircommunities. The Coca-Cola Company creates value by executing acomprehensive business strategy guided by six key beliefs:


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Consumer demand drives everything they do.

Brand Coca-Cola is the core of their business.

They will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day.

They will be the best marketers in the world.

They will think and act locally.

They will lead as a model corporate citizen

Objective

The ultimate objectives of their business strategy are to increase volume, expandtheir share of worldwide nonalcoholic ready-to-drink beverage sales, maximizetheir long-term cash flows, create economic-value-added by improving economicprofit and creating such an image of the company that the consumers startdifferentiating their product from other competitors.

The Coca-Cola system has more than 16 million customers around the world thatsell or serve their products directly to consumers. They keenly focus onenhancing value for these customers and helping them grow their beverage businesses. They strive to understand each customer's business and needs, whether that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market.

There are nearly six billion people in the world who are potential consumers of their Company's products.

Their success in achieving their mission depends on their ability to satisfy moreof their beverage consumption demands and their ability to add value for theircustomers. They achieve this when they place the right products in the rightmarkets at the right time.


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Ultimately, their basic task to perform in a market like Pakistan should be toconfirm the availability the products all over the country because it is observedthat one of the main reason of low market share of this brand in Pakistan isunavailability of the products in most of the areas.

The company stock

The Coca-Cola Company stock, with ticker symbol KO, is listed and traded in theUnited States on the New York Stock Exchange. Common stock also is traded onthe Boston, Cincinnati, Chicago, Pacific and Philadelphia exchanges. Outside theUnited States, Company common stock is listed and traded on German and Swiss

stock exchanges.

Social Responsiveness

The Coca-Cola Company has a commitment, more than a century old, to socialresponsibility through philanthropy and good citizenship. The Company'sreputation for good corporate citizenship results from charitable donations,employee volunteerism, technical assistance and other demonstrations of supportin thousands of communities worldwide.

The Coca-Cola Company continues to sponsor the world's most exciting sportsevents, including World Cup Soccer, the National Football League, NationalBasketball Association, NASCAR, the Tour de France, the Rugby World Cup,COPA America and numerous local sports teams. The Coca-Cola Company hassponsored the Olympic Games since 1928.

Bottlers SystemOne of The Coca-Cola Company's greatest strengths lies in its ability to conduct business on a global scale while maintaining a local approach . At the heartof this approach is the bottler system.

Their Company has business relationships with three types of bottlers:


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1. Independently owned bottlers, in which they have no ownership interest;

2. Bottlers in which they have invested and have a no controlling ownershipinterest; and

3. Bottlers in which they have invested and have a controlling ownership interest.

During 1999, independently owned bottling operations produced and distributedapproximately 27 percent of our worldwide unit case volume. Bottlers in whichthey own a no controlling ownership interest produced and distributedapproximately 58 percent of our 1999 worldwide unit case volume. Controlled bottling and fountain operations produced and distributed approximately 15percent.

They view certain bottling operations in which they have a no controllingownership interest as key or anchor bottlers due to their level of responsibility and performance. The strong commitment of both key and anchor bottlers totheir own profitable volume growth help them meet their strategic goals andfurther the interests of their worldwide production, distribution and marketingsystems. These bottlers tend to be large and geographically diverse, with strongfinancial resources for long-term investment and strong management resources.These bottlers give them strategic business partners on every major continent.

Brands of The coca -cola Company

The Coca- Cola Company is the worlds largest beverage company. The Coca -ColaCompany markets four of the worlds top -five soft-drink brands Coca-Cola, dietCoke, Sprite and Fanta. Their beverage offerings encompass nearly 400 brands,including coffees and teas, juices and juice drinks, sports drinks and waters as well as carbonated soft drinks with operations in more than 200 countries. Theproducts of The Coca-Cola Company touch lives everywhere. Their core brands

have made an impact around the world; brands such as Fanta, Sprite and off course, Coca-Cola, are available and recognized in many countries. Each of theirother brands is distributed in one or more countries, and is tailored to thecultures and tastes of those consumers. So wherever you are, you're sure to find aCoca-Cola product to enjoy. The main product range is as fellows:
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Coca-Cola classic Diet coke Cherry coke Diet cherry coke Minute maid orange Minute maid Mango Minute maid Pulpy Sprite Sprite 3G Fanta

And many others, which are still not introduced in subcontinent due to severalreasons

History of The Coca -Cola Company

Dr. John Stith Pemberton invented Coca- cola in 1886. It was the doctors seconddrink with coca leaves and the kola nut as a basis. The doctors first coca leaf drink, Pemberton's French Wine Coca, was actually an imitation of Vin Mariani, acoca-wine drink invented by Angelo Mariani in 1883. Although there were several

imitators of the French Coca-Wine, Pemberton's formula was superior. He wasactually quoted saying

"I believe that I am now producing a better preparation than that of Mariani."

Pemberton was not very good health, not to mention he was a morphine addict.So in 1887 he began to sell parts of the company off. On July 8th he sold a thirdof the company to Willis Venable and another third to George Lowndes. Eitherman had the time to market, make or sell Coke so they sold their portion of the

company to Woolfolk Walker and his younger sister Margaret Dozier. Dozierowned two-ninths and Walker four-ninths of the formula rights. Now here is where it gets interesting. Venable somehow disposed off his portion of Coca-colatwice. During some time in 1887, he gave his share of Coca-cola to Joseph Jacobs,owner of Jacobs' Pharmacy. In early October 1887 Pemberton ran a blind adlooking for additional investors.


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He was able to get three investors with this ad. He took $2,000 from each of them. Their names were J.C. Mayfield, A.O. Murphey and E.H. Bloodworth. Inlate December the three new partners moved to Atlanta, ready to produce all of Pemberton's wonderful medicines.

At this point Pemberton, Walker and Dozier officially owned the formula of Coca-cola, but several others had interest in it. Enter Asa Candler, an ambitious Atlanta druggist. Candler some how acquired control of the company later in themonth of December although he probably didn't own any part of the company until 1888. He acquired the drink in return for debts owed him by certain"gentlemen." Things got a little sticky for a while with Charley Pemberton (John'sson) claiming his right to the drink. This kicked off two coke clones by the namesof: Yum Yum and Koke.

Pemberton grew even more ill, but continued with his work. He was developing anew drink, a modified cola with celery extract. The drink was never finished.Pemberton died on August 16, 1888. Candler served as a pallbearer atPemberton's funeral and spoke very highly of him. In later years he was quotedsaying "Why, I suppose Dr. Pemberton felt I was one of his best friends in town."

Exactly two weeks after Pemberton died Candler bought the remaining interest of Walker and Dozier for $1,000. With the exception of the Walker, Candler &Company ownership, Asa Candler had legal rights to Coca-Cola. He was callinghimself the drink's sole proprietor by May 1, 1889.

By the turn of the century Candler would become one of the wealthiest men in Atlanta and Coca-Cola would become the most popular soft drink in America. After this the main events and improvements in this firm are summarized below:

In 1906, Coca Cola was launched outside the United States for the first time. It was launched in two countries simultaneously, Cuba and Panama.

In 1917, another milestone was completed, 3 million Cokes bottles were sold per day and it was also observed that had become the worlds mostrecognized trademark.


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In 1925, sales volume was increased to 6 millions Cokes bottles per day.

In 1927, Coca Cola was firstly advertised through radio.

In 1929, Coca-Cola was made available through vending machineThe Coca-Cola bell glass was made available.

In 1934, Johnny Weiss Muller, and Olympic champion swimmer, and MaureenO'Sullivan, a motion-picture star, appeared on a metal serving tray for Coca-Cola.

In 1940, Coke was operating in more than 40 countries of the world.

In 1943, On June 29, an urgent cablegram arrived from General DwightEisenhower's Allied Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American servicemen overseas. Eventually, 64 plants were set up during World War2.

In 1950, Advertising on the television began. Currently Coca-Cola is advertisedon over five hundred TV channels around the world.

In 1952, William T. Campbell wrote The Big Beverage, the first novel aboutCoca-Cola.

In 1960, Coke was introduced in a size of twelve ounces.

In 1961, another product of the Coke was introduced Sprite.


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In 1971, a very famous song "I'd like to Buy the World a Coke" was released.

In 1977, the unique contour bottle, familiar to consumers everywhere, is grantedregistration as a trademark by the U.S. Patent and Trademark Office, an honor

awarded to only a few other packages

In 1978, company launched the product in plastic bottles and in the same yearlarge size of two litters was also launched.

In 1979, Fifteen hundred employees moved to the new corporate headquarters in Atlanta located on North Avenue. The new corporate headquarters came to beknown as "The Tower."

In 1982, Diet Coke was introduced in July.

In 1985, The Coca-Cola Company made what has been known as one of the biggest marketing blunder. They stumbled onto a new formula in efforts toproduce diet Coke. They put 4 million dollars of research to come up with thenew formula.

In 1988, Coca-Cola became the first independent operator in Soviet Union.

In 1993, Coca-Cola completed another milestone by increasing their sales volume to 10 billion cases worldwide. The company also started its advertisement with new slogan of "Always Coca-Cola".

In 1995, Coke was consumed aboard the Space Shuttle Discovery -- marking thethird trip into space for Coca-Cola and the first for Diet Coke.


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In 1996, The Summer Olympics was held in Atlanta, Georgia, the home of Coca-Cola. For more than 65 years, Coca-Cola has been a sponsor of the Olympics.

In 1997, World of Coca-Cola Las Vegas opens, complete with a hundred-foot-tall

Coca-Cola contour bottle. The Coca-Cola Company sponsors the Winter Olympicsin Nagano, Japan, marking the 70th anniversary of the Company's Olympicpartnership. New products Citra and Surge hit the market. And M. DouglasIvester was named chairman of the Board of Directors and chief executive officerof The Coca-Cola Company. He was the tenth chairman of the board in theCompany's history.

In 1998, Sales of Coca-Cola and other Company products exceed 1 billionservings per day.

Introduction to Coca-cola beverages Pakistan Limited (CCBPL)

Coca Cola is being produced and sold in most of the countries of the world. For better control, world is divided into various regions. Pakistan is the part of South West Region. South West Asia region includes:

Pakistan, India, Philippines, Thailand, Hong Kong, Burma, MaldivesCoca-Cola beverages Pakistan limited (CCBPL) is responsible for all operationsabout production and sale of coca-cola brands in Pakistan.

Difference between CCBPL and TCCEC:

The coca-cola company started his business in Pakistan in 1960. All businessactivities in Pakistan are monitore d by The coca -cola export corporation(TCCEC). Head office of TCCEC was in Karachi at that time but now days it isshifted to Lahore. But this TCCEC only monitored business activities, thiscompany issued license for plants in different cities of Pakistan to startproduction according to company standard. In 1990, company decided foracquisition worldwide. Actually they were operating their business through joint venture, now they decided for acquisition. Thats why in 1996 The coca -colacompany buys th e Karachi plant, at that time TCCEC decided to form a new


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company to monitor the operation of bottling in Pakistan. So coca -cola beverages Pakistan limited (CCBPL) is the company, which is responsible tomonitor the operations of bottling in Pakistan. Some time people says that thereis no difference in CCBPL and TCCEC, but the basic difference between both

companies is that CCBPL is responsible for bottling operations and TCCEC isresponsible for marketing and corporate decision world wide.

CCBPL units in Pakistan

There are eight units in Pakistan for production and selling of coca-cola brands.These units are situated in eight cities of Pakistan.

Karachi

Rahim Yar Khan Multan Lahore Faisalabad Gujranwala Rawalpindi Peshawar

But some of these plants are currently not operating these days. For example, thePeshawar plant could not start its operations after the take over of the company in 1990 because it was working under too much burdens of debts in the past andit was declared insolvent. Therefore, it was not profitable for the company to pay all the debts and start operations again.

CCBPL Management Structure:

CCBPL has divided the whole Pakistan in two regions named as Southern business unit (SBU) and Central business unit (CBU). Karachi, Rahim Yar Khan and Multan plants are monitored by SBU General Manager (GM) while theother plants Lahore, Faisalabad, Gujranwala, Rawalpindi and Peshawar are


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monitored by CBU General Manager (GM). You can better understand from thisorganization chart.

It is shown in this diagram that the whole country is divided in to two parts on

the basis of geographical regions. And the whole country is controlled andmonitored by a Country

Manager.

CCBPL Vision

CCBPL vision is to have a strong, dominant and profitable business in Pakistan .

Mission of CCBPL


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CCBPL mission is to create value for our shareholders. They are committed to

Building preference & market leadership for their brands Achieve quality excellence and serve their customers with quality products

Maximizing profits Developing their people Optimum utilization of assets

CCBPL Values CCBPL give value and respect to their people They communicate openly They have integrity They are committed to winning.

History of Multan Plant

In Multan, the franchise unit was established in 1964, with the wish or struggle tomake it easy to distribute Coke in different areas and to make it No. 1 in themarket, and with the hope that it will play a great role in increasing theproduction and to make it popular in all over the country. Mr. Haider Zeman wasthe owner of this Plant. After 20 years Mr. Haider sold this plant to Mr. Akbar in1984 that is one of the famous industrialist in Multan city. Mr. Akbar couldntgive his proper attention to this beverage business because he is more interestedin Textile business. For that reason Multan plant couldnt get a big market sharein Multan territory. In 1996 coca-cola company decided for acquisition and it buy first time Karachi plant in Pakistan. After four year coca-cola company purchaseand take over Multan plant on January 18, 2000. After acquisition some majorchanges were made by CCBPL in Multan plant.

Changes in Multan Plant after acquisition

After the purchase of plants in Pakistan CCBPL fire almost all of the employees working in the old setups. And they rehired some of these and other personnel onthe basis of their competencies they have from other organizations of beveragesfield and experienced people from other multinational organizations e.g. LiverBrothers etc.


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Coca-Cola Beverages Pakistan Limited made number of changes in the MultanPlant and in other plants. Some of these changes were structural in nature andsome were related to operations of the system.

Now instead of Managing Director of organization, Business Operations Manager(BOM) is the head of organization. And Mr. Aamir Altaf Qureshi was appointedas the BOM in Multan in 2000.

He made number of changes in Production system, marketing system etc. for theimprovement in quality. They purchased new foolproof bottles washing system in which almost every bottle remains in the process for one and a half hour. Thatstep increased the quality of the product and shows the concern of the company for the society and consumers in Pakistan.

But now, after departure of Mr. Altaf Qureshi, Muhammad Usman But wasappointed as BOM of plant, who was previously handling the Sales & MarketingDepartment of the company. He is also continuing the policies of the company towards improving the quality of the products.

Product Range

In their product range, they had three categories, i.e. Coca-Cola, Fanta and

Sprite, which are further divided into different packing units. They are 175ml,250ml, 300NR, 1 liter, 1.5 liter plastic and 2.0 liter plastic. Now they are alsointroducing Plastic bottle of 1 liter.

But now two new products are launched currently to improve the marketstandings of the company. These are Sprite 3G and Fanta Citrus. Sprite 3G hasrecorded a very good start but unfortunately, the second one, Fanta Citrus couldnot get success in the market of Multan. However it is doing a very good businessin Peshawar and other nearby areas.

TERRITORY OF MULTAN PLANT

Multan plant is covering a very huge area and according to Assistant productionmanager of plant, we are still having a capacity cousin available and the plant isenough to support the increasing demand of the products till 2009, if demand


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rises according to the expectations of the management but after that, there will bea requirement of another plant, for which the management is planning thesedays. Multan Plant covers the areas of:

Multan City Pak-patan Sahiwal Bahawalnagar Dera Ghazi Khan Rajan Pur Ziarat in Balochistan.

It covers some other urban and rural areas in Punjab and Balochistan also.

They are managing the distribution of the products through a well-definedchannel of distributors.

Data Flow DiagramSystem Decomposition


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Context level Diagram


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First Level Diagram


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Second Level Diagram


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Second Level Diagram (Cont)


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Operational and Managing Structure of Multan Plant

Business Operations Manager (BOM)

Business Operations Manager is responsible for all the operations of MultanPlant. In Multan Plant Mr. Usman Butt is BOM of the organization. He wasappointed on this designation after departure of Mr. Aamir Altaf. He has doneMBA in marketing from IBA Karachi and very experienced in the field of Beverages as doing work in that field for almost 10 years. He was previously performing the duties as Sales and Marketing Manager in the same organizationand plant as well. He is 2 nd BOM of Multan plant after acquisition. He is

considered as the big boss of the Multan plant.

Now we shall discuss responsibilities and structure of each department one by one:

Structure of Multan plant


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We can divide the whole organization of Coca-Cola Beverages Pakistan LimitedMultan Plant into 5 (Five) major departments these are

Sales and Marketing Department

HRIR Department Finance Department Logistic Department Technical Department

Sale & Marketing Department

On the whole sales and marketing department is consisting of thirty-seven (37)employees and three MROs that are working on daily wages basis. It ismentioned in the organ gram of the CCBPL, Multan Plant Mr. Irfan Butt is theHead of the department. He is a competent person in the field of marketing butnow he has left the organization and joined a research organization as a managerof whole Gulf countries and now the position of Sales and Marketing Manager isstill to be occupied by someone else. You may able to better understand thestructure of Sales and Marketing Department of CCBPL, by that figure

Sales & Marketing Department


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Sale & Marketing Manager

Mr. Irfan Butt was the head of the Sales and Marketing Department of MultanPlant. He is a very competent person. His responsibilities are to co-ordinate theactivities of sales department and of Marketing Department. He assists theregional sales managers for the sale in their regions. And also assist marketingmanager for running the marketing activities smoothly. He used to perform hisresponsibilities by maintaining a well-balanced formal and informal relationship with his subordinates. He was also having a sufficient record of each employee of his department.


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Sales area of Multan Plant

The whole area of Multan plant is divided into three major divisions. These are asfollows:

1. Multan Region.2. Sahiwal Region.

3. Dera Ghazi Khan Region.

Multan Region

Mr. Ali Navaiz is the Sales Manager of the Multan. He is responsible for the salein Multan Region. The whole Multan region is further divided into two areas,

These are named as

Multan Base. Multan District.

The whole Multan city including old city is the part of Multan Base.

While Multan District consists of all neighboring areas of Multan city e.g. Bodla,Makhdoom Rasheed, Muzaffar Garh etc.

For the co-ordination of Mr. Ali Navaiz there are two Area Sales Managers foreach area of Multan Region.

These are:

Rafeeq Meo for Multan Base and Mr. Sabir for Multan District.

And these both have number of Market Development Officers (MDOs) for thedevelopment of the market.

Basically for sales purposes the whole territory of Multan region and otherregions is divided into many small parts and for each part we have a separatedistributor i.e. for Multan Cant we have Bismillah Agency. and for MDA. Chowk


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we have Niazi Traders as distributors. For every two distributors normally thecompany offers the services of one Marketing Development Officer. For thatcompany get two types of benefits

With the help of these MDOs Company come to know the actual situationof the market from the mouth of their own employees. And company provides assistance to the distributor for achieving the sales

targets. Company issues all the chillers and other assets to retailers and

distributors after the guarantee and approval of concerned MDO. It helps in maintaining direct relationships with the retailers, so that

company should not any critical situation if any distributor is not coordinating

properly. If MDOs are not sent, distributors will be in better position to blackmail

the company and it may damage the profitability and market standings of thecompany.

Sahiwal Region

Iftikhar Ahmad Choudhary is Sales Manager of that region. He is also a graduatefrom our department. He completed his studies from the department in 1989. Heis really a co-operative man. During my stay at Coca-Cola he really helps me inunderstanding the culture of the organization. This remains helpful for me for theperiod. Sahiwal Region covers the area of Sahiwal City, Jahanian, Khanewal etc.

As in Multan region there are two Area Sales Managers for the co-ordination of Regional Sales Manager similarly there are also two Area Sales Manager inSahiwal. According to the sale Sahiwal Region is best among the whole territory of Multan Plant.

These two ASMs are

Mr. Shahid Habib. Mr. Rao Azam.

They are hard working people. Due to their hard work distributors of that regionare able to achieve the sale targets.


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The remaining departmental structure of the Sahiwal Region is exactly similar tothat of Multan Region.

Dera Ghazi Khan Region

Dera Ghazi Khan is another region that is controlled by Multan plant. Sales teamin this region is also controlled by same sort of team consisting of a RSM and histeam of ASMs and MDOs.

Ahmad Daniyal is the RSM of this region. He is a young man who started hiscareer a few years back as an MDO. His other fellows are still on samedesignation but in this short period, he became ASM and now working as RSM of a whole region.

Wali Lodhi is coordinating him as an ASM and a team of MDOs is coordinating toachieve the sales targets.

Marketing Department

As mentioned in the organ gram of Sales and Marketing Department it is basically a subpart of Sales and Marketing Department. Basically the task isdivided into two parts on is sales and the other is Marketing. Marketing in CCBPL

means the co-ordination of the sales department. The basic task of the marketingdepartment is the distribution of company assets in the market in the form of Deep Freezer, Visi Cooler, and Chest Cooler or in the form of Cabins, boards,hoardings etc. And they are also responsible for the proper maintenance of therecord of these assets i.e. they have to maintain the record that which asset is where and in which condition and how many assets we have in the store, they also responsible for the distribution of assets among different regions. When anew lot of deep freezer came to plant by TCCEC then marketing departmentdistribute these assets among different regions according to their requirement

and their sale.

Functions of MROs:

Market department also contains Market Research Officers (MROs). Thesepeople are used to have a check on MDOs in a way that the physical verification


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of assets is the responsibility of these people. They people also check whether theassets are properly used or not. Misuse of assets means that the shopkeepershould not use the assets of the company, for the products of the competitors orfor private purpose.

These days four MROs are working in this department. These are:

M. Yousaf

Najam-ul-Hassan

M. Naveed

M. Naeem

These people are working on daily wages basis but these are very experiencedpeople in their field and they are having a very good know how about the market.

During my internship, I spend some time with these people and got very valuableknowledge about the market. These people act as representatives of the company during their visits to the market.

Now a day it was under consideration that there should be a separate departmentfor these people, which are concerned with the audit of the assets of the company.

These people are also used to record the feedback for the services of the MDOsand to check whether the customers are satisfied with the services of MDOs ornot. On the basis of this report the performance of the MDOs is evaluated.

Finance Department

Finance Department is responsible for proper flow of cash and for the controlling

of financial assets of the organization. The budget is allocated by TCCEC (TheCoca-Cola Export Corporation) for the period of month or two and financemanager of TCCEC of and on came


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Accounts Department Operations

Accounts Department perform verity of function these includes

Preparation of monthly quarterly and annually financial performance. Handling payables against purchases of raw material, store and spares and

services. Preparation of organization budget. Keeping record of fixed assets. Preparation of RFA, s Capex (Request for Authorization) to capitalized

Assets.


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Preparation of daily base Bank Reconciliation. Keeping store inventory. Preparing monthly Budget monitoring report. Keeping Insurance record and pursuing insurance claim. Submitting weekly Income tax challan to Income tax Office to deducted

vendors payments. and keeping tax record. Submitting every month Employees tax challan to Income tax Officer to

deduct from Employees Salaries. Verification of salary prepared by Human Resource Department. Costing and viability of all the products. Keeping check and balance / internal control in all financial transaction.

Coordinate in conduct of statutory audit.FUNCTIONS OF THE FINANCE DEPARTMENT

Finance and Accounts Departments play a key role in success or failure of any organization. A fair or exaggerated picture of financial affairs can leads to winning or disastrous decision. To present a true and fair picture of companysfinancial affairs, company has developed some systems discussed below.

As it is shown in above diagram that Accounts Department is controllingPurchase and MIS department as well. This structure is different from otherorganizations where all these departments are usually working separately buthere, in this organization Accounts department is controlling the other twoimportant departments. This is one of the reasons why all the purchasetransactions are required to approve by the Accounts Manager.

Different individuals are assigned different responsibilities in this departmentlike, some are concerned with Cash, and some are with Route settlement,

Accounts Receivables, Excise and other relative tasks.Finance & Accounts Software

Its function is divided in three level or stages.

Data Entry Stage


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Report Extraction Stage Advance Reporting Level

1- Data Entry Stage

Data is fended at this stage. There are basically three types of vouchers used torecord transaction

I Bank Vouchers - used for recording bank transaction

II Cash Voucher - Used to record cash transaction

III Journal Vouchers - Used to record adjusting entries in which no cash or bank

transaction involvedTransaction Procedure

Every voucher has some distinct number, debit and credit Ledger Accountnumber and amount to be debited or credited against each Ledger Accountnumber. Particular voucher cannot be saved unless debit amount and creditamount becomes equal. After saving transaction voucher is printer, support isattached and signed by the preparing person. This voucher is forwarded to nextsignatories for checking and approval. After checking and approval voucher isposted by a simple authorized click.

2- Report Extraction Stage

General Ledger are instantly updated after posting, however trial balance isupdated after periodical monthly processing General Ledger, Sub Ledger, TrialBalance are generated at report extraction stages.

3- Advance Reporting Level

Balance Sheet, Trial Balance, Cash flow Statement, Statement of Changes InEquity is generated at advance report stages.

Inventory Management System Software


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Inventory System is used in handling of store spares and raw material. Storeissues and inventory cost is booked with Weighted Average system. This system isused to prepare item wise detail along with cost of relevant item in differentscenarios. Following reports are commonly used.

Item wise consumption

Period range (From To)

Code of Item Description of Items Cost of items

Total

Item wise Stock

Time (At Date)

Code Of Item Description of Items Cost of items

Total

Cost Centre wise consumption

Period (From To) Cost Centre ..

Code of Item Description of Items Cost of items

Total .....

Other Software are

Fixed Asset Management System

It provides asset wise type wise following detail of all the assets

Original cost, written down value, date of acquiring, accumulateddepreciation, location, its purchase authorization No. etc.Software Used in Organization


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Different applications are used in different parts of the organization for differentpurposes.

Three main applications are given below:

SAP (System Application Program) BASIS (Beverages Advanced Standard Information System) ISCIMS (Indirect Sales & Cooler Impact Monitoring System)

SAP is used to allocate the cost on the basis of Average Cost Method. Itsometimes create problem because due to this a huge fluctuation results in cost.It mostly happens when same sort of product is purchased from various firms atdifferent prices but in the end all the goods are recorded at same cost due toaverage cost method.

BASIS is used for cash related matters. It is specialized software for beverages butnow it has become outdated and it is expected that the firm will replace it with anew one in the start of next year.

ISCIMS is used for having a contact with the distributors. Information is shared between company and an employee that used to send information fromdistributors end. Company is using this software for indirect sales. An operatorused to send information on daily basis through mail. Information is usually related about;

Stock at Distributor. Discount Allowed by distributor to various customers. Low fills and burst allowances. Free sampling.

Through this software, Mr. Farooq of Accounts Department is controlling about78 distributors in different areas.

Route settlement documents flow


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When Route settlement documents flow is basically flow of documents startedfrom entrance of empty at gate to the distribution of filled bottles to thedistributors with all basic entries of account.

vehicle with empty bottles enter into the gate then gate man entered this empty into the register with party name, vehicle no, qty of vehicle and time in. One copy of this form is send to gate office and the other one is send to shipping office. After that shipping officer count these empty bottles and prepare a verified list.This list is send to sales co-coordinator in DPG. After that sales coordinatorprepare demand form and verified this demand from shipping department inDPG. After verification from shipping department out load is prepared and thisload is send to distributor. The copy of this load is sending to finance departmentand finance department prepare an invoice for distributor. With this invoiceaccount officer is responsible to prepare cash copies, EDS copies and A/R slipsaccording to current condition of payment and empty. These copies send to RSA where he prepares route header copy, this copy send to distributor after signatureand stamp of guard. I think its not easy to understand the flow of routesettlement documents therefore I prepare a diagram so that reader can easily understand the route settlement document flow.

Route Settlement Document Flow


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Store

The stores in charge give the present situation of the equipments and material inthe store. There are three types of stores in Coca-Cola.

One is located in the factory where company stores equipments and material liketissue paper boxes, soaps, ballpoints, crowns of bottles, ink etc. of daily usage. And every purchase, which comes into the factory premises, first added to thestore registers. Then it is submitted to the concerned department.

Second store is located near to the factory in a separate building. This is calledthe store for marketing assets. Every type of breakage of bottles is submitted inthat store and new assets of company like D/F, V/C are also stored in that store.

New crates of wood are also manufactured there. For that purpose there is asmall workshop. The in charge of that store gives report to the store in charge of factory, which then submit that report to the Accounts Manager.

Third store is located on the Vehari Road near the B.C.G. Chowk atapproximately half kilometers distance. That is a store of finished goods i.e. filled bottles came there from the factory and from there the distributors get theirorders. The in charge of that store is directly reporting to Accounts Manager.

MIS (Management Information System) Department

MIS department is responsible for the generation of reports for each departmenti.e. for production department about the situation of empty and syrup, report of manufactured stock for the sales coordinator. And these reports are alsosubmitted to the TGM and to the Accounts Manager. On the basis of thesereports Management make decisions about the production, sales and differentmatters.

This department is also responsible for the development of computer programsfor all departments. That department is consists of only 5 employees one is MISManager and remaining four are his assistants.

Cash Room


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Cash Room is like a bank. It makes the transaction of cash possible for thecompany. Mr. Javaid Iqbal Khan controls that department. Coca-Cola madepayments in two ways one through check and other in the form of cash. If thepayment is less than Rs.5000 then it is made through cash and if it is greater

than Rs.5000 then it is paid through check. The payment which is made throughcheck is issued by Accounts department itself while cash payments are given tothe vendors from that cash room. For example Coca-Cola pay to daily wagers inthe form of cash and that payment is made through that cash room while thesalary of permanent employees is automatically transferred to their Bank accounts. And cash room is also responsible for the collection of cash fromdistributors for their purchases.

Technical Department

Technical department consists of three major divisions;

Production

Quality Control

Maintenance

On the whole there are thirty-five permanent employees working in the Technicalor Production department. And also number of daily wagers is also working inthe department. There are number of processes takes place in Technicaldepartment like washing of empty bottles, preparation of syrup, chilling andfilling plant. That is purely a technical department most of the employees in thedepartment are technical and others are operative people. The structure of Technical or Production Department is given on next page.

There is also two Shift Chemists separate for day and night shifts. There is a lab

in the production department, which is responsible for the assurance of properquantity of sugar, syrup, waters in each bottle after every 500 regular bottles they check one bottle for the assurance.

Mr. Malik Jaffer is the manager of the technical department.


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Production of this plant is about 600 cases per hour but number of hours workedused to change depending on the season. Normally two shifts are used forproduction. In normal or down season, duration of shift is reduced to 8 hours butin peak season this duration is increased to 12 hours to meet the demand of the

market.

Production Process

The environment of the production hall is very clean unlike of other players of theindustry.

In Multan plant, there are two lines of production in which all the products can be produced by making an adjustment in syrup and concentrate.

Production process starts with washers where all the bottles are washed beforefilling.

In washer 24 bottles are entered in a row at a time and the washer is capable of containing 300 cases at a time.

This washer consists of 3 tanks:

Tank 1: Caustic 1 to 1.5%

Temperature 45 to 85 centigrade

Tank 2: Caustic 3 to 4%

Temperature 65 to 75 centigrade

Stabilon 0.4 to0.5%

Tank 3: Cold water and air

Below 0 centigrade


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Due to too many fluctuations in temperature, all the germs are killed andremoved. After this some light men inspect all the bottles. These people areperforming jobs for maximum of 20 minutes at a time then a next pair comes intheir place and so on.

Next step is of mixing the syrup and water and filling them in bottles. For thispurpose water is obtained from a depth of more than 510 ft. Carbo Cooler is usedfor mixing the syrup and water and then bottles are filled. After filling andmarking date and time of production light men again check bottles.

Three light men are working in the plant and their duties are given below:

First -----check brand, breakage and dirtiness.

Second---check cleanliness.

Third ---- level of liquid after production.

Due to such an effective system of quality controlling, plant is certified by ISO.The more important certificate is TCCQS (The Coca Cola Quality System), whichis awarded by the company itself to a limited number of plants. It is given to only 65 plants out of 1000units and Multan plant is one of them.

The last function of maintenance is performed in down season of November,December or January by shutting down the plant for 15 to 30 days depending onthe situation. According to production department, current capacity is sufficientto meet the increasing demand by 2009 but after that there will be a need forexpansion.

Technical Department


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Purchase Department


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The responsibility of Purchase Department is to purchase every sort of requirements of different department but they are not responsible for sometechnical requirement like TCCEC or shipping department itself manages empty.The work procedure of purchase department is like that if a department wants to

purchase any thing he will prepare a purchase requisition on this requisition thesignature of departmental head, TGM and of Financial Manager is necessary.Then this requisition will sent to the Purchase department where they prepare a work order and give one copy of this work order to the shopkeeper who isproducing the product on credit and one copy will sent to concerned departmentand one will remain in the purchase department to receive the amount of that work vendor should contact to the finance department for the payment or for thecheck with the slip of work order.

Purchase department consists of only three employees one is Purchase Managerand others is his Assistants. Purchase Manager of Coca-Cola Beverages PakistanLimited Multan Plant is Mr. Nasir Abbas, Mr. Rana Kashif Ali and Mr.Muhammad Bilal are his Assistant.

HRIR Department

The responsibility of HRIR department in Coca-Cola Beverages Pakistan Limited,Multan Plant is the administration of all sort of formal and informal activities. Informal activities the maintenance of attendance sheet of daily wagers, which isthen shifted to the finance department where they made salaries for theseemployees on the basis of there attendance at the end of the week or month. Forthat purpose there are gate keepers who are also responsible for the issuance of entry cards to the visitors and they maintain the record when an employee comesin the factory and when he leaves either he is on official duty or going out for hisprivate work.

On the whole HRIR Department is consisting of eleven employees. The structureof Administration Department is given on next Page

HRIR Department


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This department also maintains attendance record .The automatic thumbmachine is used for attendance for permanent employees. And attendance is sentto TGM after to 20 minutes, so that he becomes able to take some correctiveactions against regular late comers.

Logistics Department

Logistic department is basically the combination of two departments. These are:

Fleet Department Shipping department.

The whole transports and vehicles are arranged and maintained by Fleetdepartment. And shipping department is responsible for the maintenance of inventory of empty bottles. On the whole logistic department is consists of 27permanent employees. And rest of the employees work on daily wages.

The structure of Logistic Department is given on next Page.


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Responsibilities of Fleet Department

As I mentioned earlier logistic department is basically for the purchase andmaintenance of new vehicles. For that purpose they have a workshop for heavy-

duty vehicles and for cars in the factory. And for the motorcycles they madearrangement with a workshop from where employees get work done and thefactory will make payment at the end of the month.

Logistics Department

Types of Vehicles in Multan Plant

There are basically four major types of vehicles in the factory. .These are as.

Motor Cycles for Market Development Officers (Sales & Marketing Staff)

Cars for Management


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Vans for Loading

Loader Machine

All types of vehicles already insured by the Insurance Company. Coca-Cola offersa motorbike and 70 liters of petrol per month to each Market Developmentofficer (MDO). And the maintenance of the motorbike is also the responsibility of company. The issuance and maintenance of these motorbikes is also theresponsibility of logistic department. If a new employee is employed in the salesdepartment as MDO then marketing or sales department send a request formotorbike to the logistic department and if logistic department has any extramotorbike then they issue that one to that employee otherwise they purchase anew motorbike for that employee.

Coca-Cola also offers cars for the management. Coca-Cola Multan plant hasapproximately 15 cars for management. 1300 CC car is only allowed to TGM(Territory General Manager) and all departmental heads can use 1000 CC car.The issuance and maintenance of these cars is the responsibility of logisticdepartment. Logistic department is also responsible to maintain the record of petrol consumption of each motorbike and car. For the purpose of petrol Coca-Cola Company Multan Plant arranged an agreement with a petrol pumpof Total and Cultus near the factory from where any employ can fill his vehicle by giving a slip, which is issued by logistic department.

Vans are also there in the Coca-Cola Multan Plant. These are for the purpose of supply of crates to the places where cases are issued directly by the factory suchas Police Commissioners and these vans are also used to supply assets of factory to the shops like Deep Freezers, Visi Coolers and Chest Coolers etc.

Loader Machines are used in shipping department. These are used to load andunload the trucks etc. For the maintenance of these vehicles and cars a workshopis present in the factory where many competent mechanics were employed toassure the proper maintenance and working of these vehicles.

But in the end it should be made clear that fleet department is not concerned with the purchase of vehicles. If any vehicle is to be issued to any person then the


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concerned department will send a requisition to purchase department andpurchase department will continue further.

FMS (Fleet Management System)

It is the application that is used in fleet department to keep updated record aboutfuel and maintenance of the vehicles.

Following are the fuel limitations for different sort of vehicles

Bikes Vehicles

Base people 50 liters. 250 liters.

Outside people 75 liters. 300 liters.

But these are not very rigid rules, for example, when MROs visit the outside areaslike Sahiwal and DG Khan, they people are allowed to consume more but aftergetting approval from manager of their concerned department.

Following are different types of slips that are used in fleet department for somespare parts.

1. Demand Slip

It is used when goods are available in store and fleet department is going to useit. Store department will issue the desired parts against this slip. These parts can be installed within or outside the organization depending on the situation.

For outside repair, a returnable or non-returnable pass is given which indicates whether it is necessary to return the damaged goods to factory or not.

2. Purchase Requisition

It is issued for the purchase of any thing, which is already not available in thestore. PR is sent to purchase department. Purchase Department will have toreceive three or four quotations from various vendors according to rates and


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quality offered and will be select one vendor which rates & quality is suitable. After this it will be made comparative statement for further process.

But PR must be approved by

Department in charge that is in need.

Accounts Manager.

TGM.

After purchase, goods are sent to store and GRN (Goods Received Note) is issuedthat is also authorized by

Store In charge.

Department in charge that is in need.

Three copies of GRN are kept by Store, Purchase and Accounts Departments.

3. Complaint Document

It is filled by anyone who is having any problem regarding his automobile and

then it is checked by concerned authorities whether this problem con be solvedinside factory or not.

4. Repair Work Requisition

Fleet department sends it to any company like Honda for some repair. It isapproved by TGM and initiated and authorized by Fleet In charge and LogisticManager respectively.

If fleet department is in need of any thing, whether it is available in store or not,the whole procedure is shown in following diagram:

Procedure of Issuance from Store to Fleet DepartmentIssuance


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Purchasedepartment

Store

PR Demand slip

Availability

Need origination

Financial StatementsTHE COCA-COLA COMPANY

ND SUBSIDIARIES CONSOLIDATED STATEMENTSOF INCOME

ear Ended December 31, ($) 2009 ($) 2008 (In millions except per share data)NET OPERATING REVENUES 30,990 31,944Cost of goods sold 11,088 11,374GROSS PROFIT 19,902 20,570Selling, general and administrativeexpenses 11,358 11,774Other operating charges 313 350


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OPERATING INCOME 8,231 8,446Interest income 249 333Interest expense 355 438Equity income (loss) net 781 -874

Other income (loss) net 40 39INCOME BEFORE INCOMETAXES 8,946 7,506Income taxes 2,040 1,632CONSOLIDATED NET INCOME 6,906 5,874Less: Net income attributable to non-controlling interests 82 67NET INCOME ATTRIBUTABLE

TO SHAREOWNERS OF THECOCA-COLA COMPANY 6,824 5,807BASIC NET INCOME PER SHARE 1 3 3DILUTED NET INCOME PER SHARE 1 3 2

VERAGE SHARESOUTSTANDING 2,314 2,315Effect of dilutive securities 15 21

VERAGE SHARESOUTSTANDING ASSUMINGDILUTION 2,329 2,3361 Basic net income per share anddiluted net income per share arecalculated based on net incomeattributable to shareowners of The Coca-Cola Company.

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

December 31, ($)2009

($)2008

(In millions except par value)SSETS

CURRENT ASSETS


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Cash and cash equivalents 7,021 4,701Short-term investments 2,130 -TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERMINVESTMENTS 9,151 4,701

Marketable securities 62 278Trade accounts receivable, less allowances of $55 and $51,respectively 3,758 3,090Inventories 2,354 2,187Prepaid expenses and other assets 2,226 1,920TOTAL CURRENT ASSETS 17,551 12,176EQUITY METHOD INVESTMENTS 6,217 5,316OTHER INVESTMENTS, PRINCIPALLY BOTTLING

COMPANIES 538 463OTHER ASSETS 1,976 1,733PROPERTY, PLANT AND EQUIPMENT net 9,561 8,326TRADEMARKS WITH INDEFINITE LIVES 6,183 6,059GOODWILL 4,224 4,029OTHER INTANGIBLE ASSETS 2,421 2,417TOTAL ASSETS 48,671 40,519LIABILITIES AND EQUITY CURRENT LIABILITIES

Accounts payable and accrued expenses 6,657 6,205Loans and notes payable 6,749 6,066Current maturities of long-term debt 51 465 Accrued income taxes 264 252TOTAL CURRENT LIABILITIES 13,721 12,988LONG-TERM DEBT 5,059 2,781OTHER LIABILITIES 2,965 3,011DEFERRED INCOME TAXES 1,580 877

THE COCA-COLA COMPANY SHAREOWNERS EQUITY Common stock, $0.25 par value; Authorized 5,600 shares;Issued 3,520 and 3,519 shares, respectively 880 880Capital surplus 8,537 7,966Reinvested earnings 41,537 38,513


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Accumulated other comprehensive income(loss) -757 -2,674Treasury stock, at cost 1,217 and 1,207 shares,respectively

-25,398

-24,213

EQUITY ATTRIBUTABLE TOSHAREOWNERS OF THE COCA-COLA COMPANY 24,799 20,472EQUITY ATTRIBUTABLE TONONCONTROLLING INTERESTS 547 390TOTAL EQUITY 25,346 20,862TOTAL LIABILITIES AND EQUITY 48,671 40,519

Financial Statements AnalysisLiquidity Ratios

Current Ratio

2009 2008

1.28 0.94

Coca- Colas current ratio has increased in 2009. This increase represents thegood position of the company liquidity-wise. It provides a margin of safety to thecreditors, so this means more investors will invest in this company.

Quick Ratio


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2009 2008

0.95 0.62

Quick ratio or the Acid-test ratio has increased in 2009 to 0.95. This increaserepresents that the company is much more liquid than before and it has theability to meet its liabilities in time much better than before.

Debt Ratios

Debt to Equity

2009 2008

0.48 0.45

Debt-to-equity ratio is high in 2009, and a high ratio means that company isaggressively financing its growth by debt. A growth can cause trouble to thecompany in case if it suffer any losses.


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Debt to Capital

2009 2008

0.32 0.31

Coca-Cola has higher debt-to-capital ratio in 2009 as compared to 2008. A higher ratio means that Coca-Cola has now increased amount of debt ascompared to its liabilities.

Interest Coverage

2009 2008

26.20 18.14

This ratio basically indicates the extent to which earnings are available to meet itsinterest payments. So an increase in 2009 means that Coca-Cola is now in betterposition to meet its interest payments as compared to 2008.

Long-term (investment) Activity Ratio


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Net Fixed Assets Turnover

2009 2008

3.24 3.84

Coca- Colas net fixed asset turnover has decreased in 2009. This ratio indicatesability to generate sales from its fixed assets. So the decrease in this ratio meansthat Coca-Cola has been less effective in using its fixed assets to generate itsrevenues.

Total Asset Turnover

2009 2008

0.64 0.79


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Coca- Colas total asset turnover ratio has decreased in 2009, and it indicates thatits net sales have decreased or investment made into business is not paying out asdesired.

Equity Turnover

2009 2008

1.25 1.56

This ratio is used to measure how well Coca-Cola company uses its stockholderequity to generate revenues. The decrease in this ratio means that the companysefficiency has decreased.

Turnover Ratios

Inventory Turnover

2009 2008

13.16 14.61


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Coca- Colas inventory turnover has decreased in 2009. This means that either thesales are going poor than before or the company has excess of inventory. Either way Coca-Cola need to improve its inventory turnover.

Receivables Turnover

2009 2008

8.25 10.34

Coca- Colas ratio has dropped in 2009 which is not a good sign. A low ratiomeans that company is now operating on credit more than it did before. In 2008,

it was operating more on cash than now.

Payables Turnover

2009 2008


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21.98 23.32

This ratio indicates the times a company pays back its payables. The decrease inCoca- Colas ratio shows that now the company is taking more time to pay back itssuppliers.

Working Capital Turnover

2009 2008

6.59 8.18

Working Capital turnover ratio has decreased in 2009. This means that company

is not generating enough sales as compared to the capital it uses to fund the sales.

Profitability Ratios

Return on Sales (%)

Operating Profit Margin


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2009 2008

26.56 26.44

Coca- Colas ratio has increased in 2009. This means that it is earn from its sales

as per dollar than it did in previous year. Higher ratio is better.

Net Profit Margin

2009 2008

22.02 18.18

Coca- Colas profit margin is higher in 2009 than in 2008. So this higher profit

margin means that the company is more profitable and it has more control overits costs than before.

Return on Investment (%)


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Return on Equity (ROE)

2009 2008

27.52 28.37

ROE has decreased in 2008. A lower return on equity means that the company isnow less capable of generating cash internally. With a higher ratio it would have been the case otherwise.

Return on Assets

2009 2008

14.02 14.33

Coca- Colas ROA has decreased in 2009 as compared to 2008. This ratio tells ushow much company is earning on its investments. A lower ratio in 2009 meansthat company is now earning relatively less money on it investments than it did before.


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Vertical Analysis Balance SheetsTHE COCA-COLA COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS December 31, 2009 2008 (In millions except par value)

SSETS CURRENT ASSETSCash and cash equivalents 14.43% 11.60%Short-term investments 4.38% -TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERMINVESTMENTS 18.80% 11.60%Marketable securities 0.13% 0.69%Trade accounts receivable, less allowances of $55 and $51,respectively 7.72% 7.63%Inventories 4.84% 5.40%Prepaid expenses and other assets 4.57% 4.74%TOTAL CURRENT ASSETS 36.06% 30.05%EQUITY METHOD INVESTMENTS 12.77% 13.12%OTHER INVESTMENTS, PRINCIPALLY BOTTLING

COMPANIES 1.11% 1.14%OTHER ASSETS 4.06% 4.28%PROPERTY, PLANT AND EQUIPMENT net 19.64% 20.55%TRADEMARKS WITH INDEFINITE LIVES 12.70% 14.95%GOODWILL 8.68% 9.94%OTHER INTANGIBLE ASSETS 4.97% 5.97%TOTAL ASSETS 100.00% 100.00%LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses 13.68% 15.31%Loans and notes payable 13.87% 14.97%Current maturities of long-term debt 0.10% 1.15% Accrued income taxes 0.54% 0.62%TOTAL CURRENT LIABILITIES 28.19% 32.05%LONG-TERM DEBT 10.39% 6.86%


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OTHER LIABILITIES 6.09% 7.43%DEFERRED INCOME TAXES 3.25% 2.16%THE COCA-COLA COMPANY SHAREOWNERS EQUITY

Common stock, $0.25 par value; Authorized 5,600 shares;Issued 3,520 and 3,519 shares, respectively 1.81% 2.17%Capital surplus 17.54% 19.66%Reinvested earnings 85.34% 95.05% Accumulated other comprehensive income(loss) -1.56% -6.60%Treasury stock, at cost 1,217 and 1,207 shares,

respectively -52.18% -59.76%EQUITY ATTRIBUTABLE TOSHAREOWNERS OF THE COCA-COLA COMPANY 50.95% 50.52%EQUITY ATTRIBUTABLE TONONCONTROLLING INTERESTS 1.12% 0.96%TOTAL EQUITY 52.08% 51.49%TOTAL LIABILITIES AND EQUITY 100.00% 100.00%

Vertical Analysis Income StatementsTHE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME

ear Ended December 31, 2009 2008 (In millions except per share data)NET OPERATING REVENUES 100.00% 100.00%Cost of goods sold 35.78% 35.61%GROSS PROFIT 64.22% 64.39%Selling, general and administrative expenses 36.65% 36.86%Other operating charges 1.01% 1.10%OPERATING INCOME 26.56% 26.44%Interest income 0.80% 1.04%Interest expense 1.15% 1.37%


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Equity income (loss) net 2.52% -2.74%Other income (loss) net 0.13% 0.12%INCOME BEFORE INCOME TAXES 28.87% 23.50%Income taxes 6.58% 5.11%

CONSOLIDATED NET INCOME 22.28% 18.39%Less: Net income attributable to non-controlling interests 0.26% 0.21%NET INCOME ATTRIBUTABLE TOSHAREOWNERS OF THE COCA-COLA COMPANY 22.02% 18.18%BASIC NET INCOME PER SHARE 1 0.01% 0.01%DILUTED NET INCOME PER SHARE 1 0.01% 0.01%

VERAGE SHARES OUTSTANDING 7.47% 7.25%Effect of dilutive securities 0.05% 0.07%

VERAGE SHARES OUTSTANDING ASSUMINGDILUTION 7.52% 7.31%

Horizontal Analysis Balance SheetTHE COCA-COLA COMPANY ANDSUBSIDIARIES CONSOLIDATED BALANCE SHEETS

December 31, 2009 (In millions except par value)SSETS

CURRENT ASSETSCash and cash equivalents 49.35%Short-term investments 100.00%TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 94.66%Marketable securities -77.70%Trade accounts receivable, less allowances of $55 and$51, respectively 21.62%Inventories 7.64%Prepaid expenses and other assets 15.94%TOTAL CURRENT ASSETS 44.14%EQUITY METHOD INVESTMENTS 16.95%


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OTHER INVESTMENTS, PRINCIPALLY BOTTLINGCOMPANIES 16.20%OTHER ASSETS 14.02%PROPERTY, PLANT AND EQUIPMENT net 14.83%

TRADEMARKS WITH INDEFINITE LIVES 2.05%GOODWILL 4.84%OTHER INTANGIBLE ASSETS 0.17%TOTAL ASSETS 20.12%LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses 7.28%Loans and notes payable 11.26%

Current maturities of long-term debt -89.03% Accrued income taxes 4.76%TOTAL CURRENT LIABILITIES 5.64%LONG-TERM DEBT 81.91%OTHER LIABILITIES -1.53%DEFERRED INCOME TAXES 80.16%THE COCA-COLA COMPANY SHAREOWNERS EQUITY

Common stock, $0.25 par value; Authorized 5,600 shares;Issued 3,520 and 3,519 shares, respectively 0.00%Capital surplus 7.17%Reinvested earnings 7.85% Accumulated other comprehensive income(loss)

-71.69%

Treasury stock, at cost 1,217 and 1,207

shares, respectively 4.89%EQUITY ATTRIBUTABLE TOSHAREOWNERS OF THE COCA-COLA COMPANY 21.14%EQUITY ATTRIBUTABLE TONONCONTROLLING INTERESTS 40.26%TOTAL EQUITY 21.49%


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TOTAL LIABILITIES AND EQUITY 20.12%

Horizontal Analysis Income StatementTHE COCA-COLA COMPANY ANDSUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME

ear Ended December 31, 2009 (In millions except per share data)NET OPERATING REVENUES -2.99%Cost of goods sold -2.51%GROSS PROFIT -3.25%

Selling, general and administrative expenses -3.53%Other operating charges -10.57%OPERATING INCOME -2.55%Interest income -25.23%Interest expense -18.95%

Equity income (loss) net-189.36%

Other income (loss) net 2.56%

INCOME BEFORE INCOME TAXES 19.18%Income taxes 25.00%CONSOLIDATED NET INCOME 17.57%Less: Net income attributable to non-controllinginterests 22.39%NET INCOME ATTRIBUTABLE TOSHAREOWNERS OF THE COCA-COLA COMPANY 17.51%BASIC NET INCOME PER SHARE 1 17.53%DILUTED NET INCOME PER SHARE 1 17.67%

VERAGE SHARES OUTSTANDING -0.04%Effect of dilutive securities -28.57%

VERAGE SHARES OUTSTANDINGSSUMING DILUTION -0.30%


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SWOT Analysis

SWOT analysis enables us to find out a better way of utilizing the strengths of anorganization to get maximum benefits of the opportunities available in theindustry and it also helps in dealing with threats that may adversely affect the business of the firm in future. So, the policy of any firm should be to focus onstrengths to get better results from opportunities, deal with threats by using yourstrengths and try to convert your weaknesses in your strengths. According to my limited analysis of the company, following are the strengths, weaknesses,opportunities and threats for the Coca Cola:

Strengths One of the main strengths of CCBPL is the financial strength of the

company because it is supported and controlled by Coca Cola International.Therefore, unlike past, now they can start any long term project withoutconcerning too much about finances available. Coca Cola is enjoying a positive image in the minds of the consumers. They

normally think that it is better in quality as compare to other competitorsavailable in the market.

Better workforce is strength of the company. Due to better availability of finance they can hire quality workforce and get better results. Established Nation-wide infrastructure is helping the organization to

increase the sales volume of the company. CCBPL has up to date technology in its production. As coca-cola company

claims that they are very sensitive about hygienic conditions, so thats why they using up to date technology to achieve this objective. Another strength of the brand is the quality that they are offering to

customers. Another important strength of CCBPL is the working environment that

they are offering to their employees. Due to this environment, the employees thatare working here are loyal to the organization and it is resulting in improving themotivation level of the employees, which in the end results in high productivity and better performance.


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Weaknesses The major weakness of the company is its distribution channel. It is one of

the main reasons of its slow progress and low market share in this market. Due tolack of availability of the products and less differentiation from competitors, it

has become very difficult to capture a big market share. The company is also lacking in utilization of the resources, especially in

Multan plant. People are having various facilities but they dont kno w their bestuse. For example, people working in fleet department dont know to make the best use of Fleet Management System and usually performing tasks in very difficult manner manually that can be easily performed by using FMS.

Opportunities The best opportunity for CCBPL is to increase market share through

increasing the availability of the products in the market. The company can also produce better results by creating awareness in the

society about the quality of the products they are offering. The successful introduction of Sprite 3G has proved that greater market

share can be captured by introducing some new products. So, the company should introduce some of the products that are running successfully in othermarkets but are not available in Pakistan. A huge part of the market is still waiting for first entry. Coca Cola can gat

the advantage of first entry if it focus on such areas.Threats High production capacity of the main competitor is a threat for Coke,

because they are having a better chance to increase the production andavailability of the products and further increase the market share. The local manufacturers can also disturb the market share due to their low

price offerings.

PEST Analysis

Pest Analysis is basically an environmental analysis which covers these fourdimensions of environment.


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Political

As far as political environment is concerned company is very worried about it.Pakistan is not a political stable country. Even after the18 February election

political environment is still not friendly for business. Coca Cola Company cannotheavily invest in the Pakistani market due to this factor.

Economical

As far as the economic conditions are concerned they are also not favorable thepurchasing power of people is decreasing due to high inflation and there is athreat that this condition may directly hit the sales of the company.

Social

Due to its American origin people in Pakistan have a little bit cultural clash withthe coca cola company specially after Iran and Iraq war but the participation of company in social responsibilities is appreciating which have build a goodreputation in the market.

Technological

Market of Pakistan is passing through a technological revolution which providesopportunity to all the industries to modify their process. For example if the Cocacola Company would start selling its beverages through automatic vendingmachines it would be a healthy change for the company and the market.

Suggestions for Further Improvement

While working in this organization, I got a lot of practical knowledge and

Internship on Coke

Documents

Transcript of Internship on Coke