Introduction of Coca-Cola

The Coca-Cola Company is the worlds largest beverage company, The Coca-Cola Company
markets four of the worlds top-five soft-drink brandsCoca-Cola, diet Coke, 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 out a proper place in the market but it is expected that the company may
stop its production of this product in near future. 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, they
have a diverse workforce of approximately 50,000 individuals. 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, and distributor of
nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta,
Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world.
Syrups, concentrates and beverage bases for 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 its subsidiaries 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 certain territorial boundaries and
under conditions that ensure the highest standards of quality and uniformity.

Operational Structure All Over the World

The Company's operating management structure consists of five geographic groups. The
North America Group comprises the United States and Canada. The Latin America Group
includes the Company's operations across Central and South America, from Mexico to the
tip of Argentina. The Greater Europe Group stretches from Greenland to Russia's Far East,
including some of the most established markets in Western Europe and the rapidly growing
nations of Eastern and Central Europe. The Africa and Middle East Group encompasses the
Middle East and the entire continent of Africa. The Asia Pacific Group has operations 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 much more attractive as
compare to those areas due to intensity of population and some such markets which are still
not captured by any of the firm. So, now the firm is paying more attention towards these
areas to increase market share of the company in these countries. The visit of chairman in
2005 is an evidence of this fact that company is now focusing on this region to maximize its
share in this market. According to the management of the firm, they are working on a plan
to achieve 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 to thirsty
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 constituents they serve,
including their consumers, their customers, their bottlers and their communities. The CocaCola Company creates value by executing a comprehensive business strategy guided by six
key beliefs:
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, expand their share
of worldwide nonalcoholic ready-to-drink beverage sales, maximize their long-term cash
flows, create economic-value-added by improving economic profit and creating such an
image of the company that the consumers start differentiating their product from other
competitors.
The Coca-Cola system has more than 16 million customers around the world that sell or
serve their products directly to consumers. They keenly focus on enhancing 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 more of their
beverage consumption demands and their ability to add value for their customers. They
achieve this when they place the right products in the right markets at the right time.
Ultimately, their basic task to perform in a market like Pakistan should be to confirm the
availability the products all over the country because it is observed that one of the main
reason of low market share of this brand in Pakistan is unavailability 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 the United
States on the New York Stock Exchange. Common stock also is traded on the Boston,
Cincinnati, Chicago, Pacific and Philadelphia exchanges. Outside the United 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 social
responsibility through philanthropy and good citizenship. The Company's reputation for
good corporate citizenship results from charitable donations, employee volunteerism,
technical assistance and other demonstrations of support in thousands of communities
worldwide.
The Coca-Cola Company continues to sponsor the world's most exciting sports events,
including World Cup Soccer, the National Football League, National Basketball Association,
NASCAR, the Tour de France, the Rugby World Cup, COPA America and numerous local
sports teams. The Coca-Cola Company has sponsored the Olympic Games since 1928.

Bottlers System
One of The Coca-Cola Company's greatest strengths lies in its ability to conduct business on
aglobal scale while maintaining a local approach. At the heart of this approach is the
bottler system.
Their Company has business relationships with three types of bottlers:
1. Independently owned bottlers, in which they have no ownership interest;
2. Bottlers in which they have invested and have a no controlling ownership interest; and
3. Bottlers in which they have invested and have a controlling ownership interest.

During 1999, independently owned bottling operations produced and distributed

approximately 27 percent of our worldwide unit case volume. Bottlers in which they own a
no controlling ownership interest produced and distributed approximately 58 percent of our
1999 worldwide unit case volume. Controlled bottling and fountain operations produced
and distributed approximately 15 percent.
They view certain bottling operations in which they have a no controlling ownership interest
as key or anchor bottlers due to their level of responsibility and performance. The strong
commitment of both key and anchor bottlers to their own profitable volume growth help
them meet their strategic goals and further the interests of their worldwide production,
distribution and marketing systems. These bottlers tend to be large and geographically
diverse, with strong financial 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-Cola Company
markets four of the worlds top-five soft-drink brandsCoca-Cola, diet Coke, 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. The products 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 their other brands is distributed in one or more countries, and is tailored to the
cultures and tastes of those consumers. So wherever you are, you're sure to find a Coca-Cola
product to enjoy. The main product range is as fellows:

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 several reasons

History of The Coca-Cola Company

Dr. John Stith Pemberton invented Coca-cola in 1886. It was the doctors second drink 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, a coca-wine drink invented by

Angelo Mariani in 1883. Although there were several imitators of the French Coca-Wine,
Pemberton's formula was superior. He was actually 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 third of the company to
Willis Venable and another third to George Lowndes. Either man 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. Dozier owned 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-cola twice. 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 ad
looking for additional investors.
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. In late 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 the month 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's son) claiming his right to the drink. This kicked off two coke clones by
the names of: Yum Yum and Koke.
Pemberton grew even more ill, but continued with his work. He was developing a new drink,
a modified cola with celery extract. The drink was never finished. Pemberton died on August
16, 1888. Candler served as a pallbearer at Pemberton's funeral and spoke very highly of
him. In later years he was quoted saying "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 calling himself 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 most recognized trademark.

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 machine
The Coca-Cola bell glass was made available.
In 1934, Johnny Weiss Muller, and Olympic champion swimmer, and Maureen O'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 Dwight Eisenhower'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 advertised on over five
hundred TV channels around the world.
In 1952, William T. Campbell wrote The Big Beverage, the first novel about Coca-Cola.
In 1960, Coke was introduced in a size of twelve ounces.
In 1961, another product of the Coke was introduced Sprite.

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 granted
registration 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 year large 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 be known 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 to produce diet Coke. They
put 4 million dollars of research to come up with the new 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 the third trip
into space for Coca-Cola and the first for Diet Coke.
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 Olympics in Nagano, Japan,
marking the 70th anniversary of the Company's Olympic partnership. New products Citra
and Surge hit the market. And M. Douglas Ivester was named chairman of the Board of
Directors and chief executive officer of The Coca-Cola Company. He was the tenth chairman
of the board in the Company's history.

In 1998, Sales of Coca-Cola and other Company products exceed 1 billion servings 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, Maldives
Coca-Cola beverages Pakistan limited (CCBPL) is responsible for all operations about
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 business activities in
Pakistan are monitored by The coca-cola export corporation (TCCEC). Head office of
TCCEC was in Karachi at that time but now days it is shifted to Lahore. But this TCCEC only
monitored business activities, this company issued license for plants in different cities of
Pakistan to start production according to company standard. In 1990, company decided for
acquisition worldwide. Actually they were operating their business through joint venture,
now they decided for acquisition. Thats why in 1996 The coca-cola company buys the
Karachi plant, at that time TCCEC decided to form a new company to monitor the operation
of bottling in Pakistan. So coca-cola beverages Pakistan limited (CCBPL) is the company,
which is responsible 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 and TCCEC is responsible
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, the Peshawar
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 and it 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 the other plants Lahore, Faisalabad,
Gujranwala, Rawalpindi and Peshawar are monitored by CBU General Manager (GM). You
can better understand from this organization 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 and monitored by
a Country

Manager.

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

Mission of CCBPL
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 to make it
easy to distribute Coke in different areas and to make it No. 1 in the market, and with the
hope that it will play a great role in increasing the production and to make it popular in all
over the country. Mr. Haider Zeman was the owner of this Plant. After 20 years Mr. Haider
sold this plant to Mr. Akbar in 1984 that is one of the famous industrialist in Multan city.
Mr. Akbar couldnt give his proper attention to this beverage business because he is more
interested in Textile business. For that reason Multan plant couldnt get a big market share
in 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 purchase and take over Multan
plant on January 18, 2000. After acquisition some major changes 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 on the basis of their
competencies they have from other organizations of beverages field and experienced people
from other multinational organizations e.g. Liver Brothers etc.
Coca-Cola Beverages Pakistan Limited made number of changes in the Multan Plant and in
other plants. Some of these changes were structural in nature and some 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 appointed as the BOM in Multan
in 2000.
He made number of changes in Production system, marketing system etc. for the
improvement in quality. They purchased new foolproof bottles washing system in which
almost every bottle remains in the process for one and a half hour. That step 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 was appointed as
BOM of plant, who was previously handling the Sales & Marketing Department 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 also introducing Plastic bottle of 1 liter.
But now two new products are launched currently to improve the market standings of the
company. These are Sprite 3G and Fanta Citrus. Sprite 3G has recorded a very good start
but unfortunately, the second one, Fanta Citrus could not get success in the market of
Multan. However it is doing a very good business in Peshawar and other nearby areas.
TERRITORY OF MULTAN PLANT
Multan plant is covering a very huge area and according to Assistant production manager of
plant, we are still having a capacity cousin available and the plant is enough to support the
increasing demand of the products till 2009, if demand rises according to the expectations
of the management but after that, there will be a requirement of another plant, for which the
management is planning these days. 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-defined channel of
distributors.

Data Flow Diagram

System Decomposition

Context level Diagram

First Level Diagram

Second Level Diagram

Second Level Diagram (Cont)

Second Level Diagram (Cont)

Second Level Diagram (Cont)

Operational and Managing Structure of Multan Plant

Business Operations Manager (BOM)
Business Operations Manager is responsible for all the operations of Multan Plant. In
Multan Plant Mr. Usman Butt is BOM of the organization. He was appointed on this
designation after departure of Mr. Aamir Altaf. He has done MBA 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 organization and 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

We can divide the whole organization of Coca-Cola Beverages Pakistan Limited Multan
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 is mentioned in the organ gram of
the CCBPL, Multan Plant Mr. Irfan Butt is the Head of the department. He is a competent
person in the field of marketing but now he has left the organization and joined a research
organization as a manager of whole Gulf countries and now the position of Sales and
Marketing Manager is still to be occupied by someone else. You may able to better
understand the structure of Sales and Marketing Department of CCBPL, by that figure
Sales & Marketing Department

Sale & Marketing Manager

Mr. Irfan Butt was the head of the Sales and Marketing Department of Multan Plant. He is a
very competent person. His responsibilities are to co-ordinate the activities of
sales department and of Marketing Department. He assists the regional sales managers for
the sale in their regions. And also assist marketing manager for running the marketing
activities smoothly. He used to perform his responsibilities 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.

Sales area of Multan Plant

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

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 sale in 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 for each 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 the development
of the market.
Basically for sales purposes the whole territory of Multan region and other regions is divided
into many small parts and for each part we have a separate distributor i.e. for Multan Cant
we have Bismillah Agency. and for MDA. Chowk we have Niazi Traders as distributors. For
every two distributors normally the company offers the services of one Marketing
Development Officer. For that company get two types of benefits

With the help of these MDOs Company come to know the actual situation of 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 the company.
Sahiwal Region

Iftikhar Ahmad Choudhary is Sales Manager of that region. He is also a graduate from our
department. He completed his studies from the department in 1989. He is really a cooperative man. During my stay at Coca-Cola he really helps me in understanding the culture
of the organization. This remains helpful for me for the period. 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 in Sahiwal. 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 region are able to
achieve the sale targets.
The remaining departmental structure of the Sahiwal Region is exactly similar to that of
Multan Region.

Dera Ghazi Khan Region

Dera Ghazi Khan is another region that is controlled by Multan plant. Sales team in this
region is also controlled by same sort of team consisting of a RSM and his team of ASMs and
MDOs.
Ahmad Daniyal is the RSM of this region. He is a young man who started his career a few
years back as an MDO. His other fellows are still on same designation 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 to achieve
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 is divided 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 marketing department 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 the record 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 a new lot of deep
freezer came to plant by TCCEC then marketing department distribute these assets among
different regions according to their requirement and their sale.

Functions of MROs:
Market department also contains Market Research Officers (MROs). These people are used
to have a check on MDOs in a way that the physical verification of assets is the responsibility
of these people. They people also check whether the assets are properly used or not. Misuse
of assets means that the shopkeeper should not use the assets of the company, for the
products of the competitors or for 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 experienced people 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 valuable
knowledge 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 department for 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 MDOs and to check
whether the customers are satisfied with the services of MDOs or not. 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 (The Coca-Cola
Export Corporation) for the period of month or two and finance manager of TCCEC of and
on came

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.

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 companys financial affairs, company has developed
some systems discussed below.
As it is shown in above diagram that Accounts Department is controlling Purchase and MIS
department as well. This structure is different from other organizations where all these
departments are usually working separately but here, in this organization Accounts
department is controlling the other two important departments. This is one of the reasons
why all the purchase transactions are required to approve by the Accounts Manager.
Different individuals are assigned different responsibilities in this department like, 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

Report Extraction Stage

Advance Reporting Level

1- Data Entry Stage
Data is fended at this stage. There are basically three types of vouchers used to record
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
involved

Transaction Procedure
Every voucher has some distinct number, debit and credit Ledger Account number and
amount to be debited or credited against each Ledger Account number. Particular voucher
cannot be saved unless debit amount and credit amount becomes equal. After saving
transaction voucher is printer, support is attached and signed by the preparing person. This
voucher is forwarded to next signatories for checking and approval. After checking and
approval voucher is posted by a simple authorized click.
2- Report Extraction Stage
General Ledger are instantly updated after posting, however trial balance is updated after
periodical monthly processing General Ledger, Sub Ledger, Trial Balance are generated at
report extraction stages.
3- Advance Reporting Level
Balance Sheet, Trial Balance, Cash flow Statement, Statement of Changes In Equity is
generated at advance report stages.

Inventory Management System Software

Inventory System is used in handling of store spares and raw material. Store issues and
inventory cost is booked with Weighted Average system. This system is used to prepare item
wise detail along with cost of relevant item in different scenarios. 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, accumulated

depreciation, location, its purchase authorization No. etc.
Software Used in Organization
Different applications are used in different parts of the organization for different purposes.
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. It sometimes 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 at different prices but in the end all the
goods are recorded at same cost due to average cost method.
BASIS is used for cash related matters. It is specialized software for beverages but now it has
become outdated and it is expected that the firm will replace it with a new 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 from distributors end. Company is
using this software for indirect sales. An operator used 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 about 78
distributors in different areas.

Route settlement documents flow

When Route settlement documents flow is basically flow of documents started from
entrance of empty at gate to the distribution of filled bottles to the distributors 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 coordinator prepare demand form and verified this demand from
shipping department in DPG. After verification from shipping department out load is
prepared and this load is send to distributor. The copy of this load is sending to finance
department and finance department prepare an invoice for distributor. With this invoice
account officer is responsible to prepare cash copies, EDS copies and A/R slips according to
current condition of payment and empty. These copies send to RSA where he prepares route
header copy, this copy send to distributor after signature and stamp of guard. I think its not
easy to understand the flow of route settlement documents therefore I prepare a diagram so
that reader can easily understand the route settlement document flow.
Route Settlement Document Flow

Store
The stores in charge give the present situation of the equipments and material in the store.
There are three types of stores in Coca-Cola.
One is located in the factory where company stores equipments and material like tissue
paper boxes, soaps, ballpoints, crowns of bottles, ink etc. of daily usage. And every purchase,
which comes into the factory premises, first added to the store registers. Then it is
submitted to the concerned department.
Second store is located near to the factory in a separate building. This is called the store for
marketing assets. Every type of breakage of bottles is submitted in that 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 a small 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 at approximately 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 their orders. 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 department i.e. for
production department about the situation of empty and syrup, report of manufactured
stock for the sales coordinator. And these reports are also submitted to the TGM and to the
Accounts Manager. On the basis of these reports Management make decisions about the
production, sales and different matters.
This department is also responsible for the development of computer programs for all
departments. That department is consists of only 5 employees one is MIS Manager and
remaining four are his assistants.

Cash Room
Cash Room is like a bank. It makes the transaction of cash possible for the company. Mr.
Javaid Iqbal Khan controls that department. Coca-Cola made payments in two ways one
through check and other in the form of cash. If the payment 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 through check is issued by Accounts department itself while cash
payments are given to the vendors from that cash room. For example Coca-Cola pay to daily
wagers in the form of cash and that payment is made through that cash room while the
salary of permanent employees is automatically transferred to their Bank accounts. And
cash room is also responsible for the collection of cash from distributors 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 Technical or
Production department. And also number of daily wagers is also working in the department.
There are number of processes takes place in Technical department like washing of empty
bottles, preparation of syrup, chilling and filling plant. That is purely a technical department
most of the employees in the department 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 proper quantity 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.
Production of this plant is about 600 cases per hour but number of hours worked used to
change depending on the season. Normally two shifts are used for production. In normal or
down season, duration of shift is reduced to 8 hours but in 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 the industry.
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 before filling.
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
Due to too many fluctuations in temperature, all the germs are killed and removed. After
this some light men inspect all the bottles. These people are performing jobs for maximum
of 20 minutes at a time then a next pair comes in their place and so on.
Next step is of mixing the syrup and water and filling them in bottles. For this purpose water
is obtained from a depth of more than 510 ft. Carbo Cooler is used for mixing the syrup and
water and then bottles are filled. After filling and marking 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), which is 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 on the situation. According
to production department, current capacity is sufficient to meet the increasing demand by
2009 but after that there will be a need for expansion.

Technical Department

Purchase Department

The responsibility of Purchase Department is to purchase every sort of requirements of

different department but they are not responsible for some technical 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 the signature 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 is producing the product on credit and one copy will sent to concerned department and
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 the check with the slip of
work order.
Purchase department consists of only three employees one is Purchase Manager and others
is his Assistants. Purchase Manager of Coca-Cola Beverages Pakistan Limited 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. In formal activities
the maintenance of attendance sheet of daily wagers, which is then shifted to the finance
department where they made salaries for these employees on the basis of there attendance
at the end of the week or month. For that 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 comes in the factory and when he leaves either he is on official duty or going
out for his private work.
On the whole HRIR Department is consisting of eleven employees. The structure of
Administration Department is given on next Page
HRIR Department

This department also maintains attendance record .The automatic thumb machine is used
for attendance for permanent employees. And attendance is sent to TGM after to 20
minutes, so that he becomes able to take some corrective actions 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 Fleet department. And
shipping department is responsible for the maintenance of inventory of empty bottles. On
the whole logistic department is consists of 27 permanent employees. And rest of the
employees work on daily wages.
The structure of Logistic Department is given on next Page.

Responsibilities of Fleet Department

As I mentioned earlier logistic department is basically for the purchase and maintenance 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 made arrangement with a workshop from where
employees get work done and the factory 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
Vans for Loading
Loader Machine
All types of vehicles already insured by the Insurance Company. Coca-Cola offers a
motorbike and 70 liters of petrol per month to each Market Development officer (MDO).
And the maintenance of the motorbike is also the responsibility of company. The issuance
and maintenance of these motorbikes is also the responsibility of logistic department. If a
new employee is employed in the sales department as MDO then marketing or sales

department send a request for motorbike to the logistic department and if logistic
department has any extra motorbike then they issue that one to that employee otherwise
they purchase a new motorbike for that employee.
Coca-Cola also offers cars for the management. Coca-Cola Multan plant has approximately
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 logistic department. 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 pump
of 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 such as 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 and unload the
trucks etc. For the maintenance of these vehicles and cars a workshop is present in the
factory where many competent mechanics were employed to assure 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 concerned
department will send a requisition to purchase department and purchase department will
continue further.

FMS (Fleet Management System)

It is the application that is used in fleet department to keep updated record about fuel 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 areas like
Sahiwal and DG Khan, they people are allowed to consume more but after getting approval
from manager of their concerned department.
Following are different types of slips that are used in fleet department for some spare parts.
1. Demand Slip

It is used when goods are available in store and fleet department is going to use it. 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 the store. PR is
sent to purchase department. Purchase Department will have to receive three or four
quotations from various vendors according to rates and 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 issued that 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 solved inside factory or not.
4. Repair Work Requisition
Fleet department sends it to any company like Honda for some repair. It is approved by
TGM and initiated and authorized by Fleet In charge and Logistic Manager 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 Department

Issuance

Purchase
department

Store

PR
Demand slip

Availability

Need origination

Financial Statements
THE COCA-COLA COMPANY AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME

Year Ended December 31,

($) 2009

($) 2008

NET OPERATING REVENUES

30,990

31,944

Cost of goods sold

11,088

11,374

GROSS PROFIT

19,902

20,570

Selling, general and administrative expenses 11,358

11,774

Other operating charges

313

350

OPERATING INCOME

8,231

8,446

Interest income

249

333

Interest expense

355

438

Equity income (loss) net

781

-874

(In millions except per share data)

Other income (loss) net

40

39

INCOME BEFORE INCOME TAXES

8,946

7,506

Income taxes

2,040

1,632

CONSOLIDATED NET INCOME

6,906

5,874

Less: Net income attributable to noncontrolling interests

82

67

NET INCOME ATTRIBUTABLE TO

SHAREOWNERS OF THE COCACOLA COMPANY

6,824

5,807

BASIC NET INCOME PER SHARE1

DILUTED NET INCOME PER SHARE1 3

AVERAGE SHARES OUTSTANDING

2,314

2,315

Effect of dilutive securities

15

21

AVERAGE SHARES OUTSTANDING

ASSUMING DILUTION

2,329

2,336

Basic net income per share and diluted net

income per share are calculated based on net
income attributable 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)

ASSETS
CURRENT ASSETS
Cash and cash equivalents

7,021

4,701

Short-term investments

2,130

TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM

INVESTMENTS

9,151

4,701

Marketable securities

62

278

Trade accounts receivable, less allowances of $55 and $51, respectively

3,758

3,090

Inventories

2,354

2,187

Prepaid expenses and other assets

2,226

1,920

TOTAL CURRENT ASSETS

17,551 12,176

EQUITY METHOD INVESTMENTS

6,217

5,316

OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES

538

463

OTHER ASSETS

1,976

1,733

PROPERTY, PLANT AND EQUIPMENT net

9,561

8,326

TRADEMARKS WITH INDEFINITE LIVES

6,183

6,059

GOODWILL

4,224

4,029

OTHER INTANGIBLE ASSETS

2,421

2,417

TOTAL ASSETS

48,671 40,519

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Accounts payable and accrued expenses

6,657

6,205

Loans and notes payable

6,749

6,066

Current maturities of long-term debt

51

465

Accrued income taxes

264

252

TOTAL CURRENT LIABILITIES

13,721

12,988

LONG-TERM DEBT

5,059

2,781

OTHER LIABILITIES

2,965

3,011

DEFERRED INCOME TAXES

1,580

877

Issued 3,520 and 3,519 shares, respectively

880

880

Capital surplus

8,537

7,966

Reinvested earnings

41,537

38,513

Accumulated other comprehensive income (loss)

-757

-2,674

Treasury stock, at cost1,217 and 1,207 shares, respectively

-25,398 -24,213

THE COCA-COLA COMPANY SHAREOWNERS EQUITY

Common stock, $0.25 par value; Authorized 5,600 shares;

EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA

COMPANY
24,799

20,472

EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS

547

390

TOTAL EQUITY

25,346

20,862

TOTAL LIABILITIES AND EQUITY

48,671

40,519

Financial Statements Analysis

Liquidity Ratios
Current Ratio
2009

2008

1.28

0.94

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

2008

0.95

0.62

Quick ratio or the Acid-test ratio has increased in 2009 to 0.95. This increase represents
that the company is much more liquid than before and it has the ability 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 is aggressively
financing its growth by debt. A growth can cause trouble to the company in case if it suffer
any losses.
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 as compared to its liabilities.
Interest Coverage
2009

2008

26.20

18.14

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

Long-term (investment) Activity Ratio

Net Fixed Assets Turnover

2009

2008

3.24

3.84

Coca-Colas net fixed asset turnover has decreased in 2009. This ratio indicates ability to
generate sales from its fixed assets. So the decrease in this ratio means that Coca-Cola has
been less effective in using its fixed assets to generate its revenues.

Total Asset Turnover

2009

2008

0.64

0.79

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

Equity Turnover
2009

2008

1.25

1.56

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

Turnover Ratios
Inventory Turnover
2009

2008

13.16

14.61

Coca-Colas inventory turnover has decreased in 2009. This means that either the sales 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 ratio means 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

21.98

23.32

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

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
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 over its costs than
before.

Return on Investment (%)

Return on Equity (ROE)
2009

2008

27.52

28.37

ROE has decreased in 2008. A lower return on equity means that the company is now 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 us how much
company is earning on its investments. A lower ratio in 2009 means that company is now
earning relatively less money on it investments than it did before.