Coca Cola Internship Report

Organizational Structure
Following table shows different Departments in CCBPL along with their respective functions

Department Accounts Department

Function To prepare monthly, quarterly and annually Accounts, Costing, Budgeting & Forecasting. To handle payable and insurance, Inventory & Stores etc. Finance Department Arranging Finance and negotiate over coat of finance, To handle sale, receivable, debtor aging, cash and bank etc. Internal Audit To monitor the implementation of internal procedures, policies internal control systems and repot any violation. Detection and control of financial risk and frauds. Information Technology Development of SAP program, Networking, Hardware Department Maintenance Human Resource Hiring new manpower, satisfaction, Motivation, Appraisals etc Health Environment & ISO Audit and ISO implementation, Internal safety & Security (HEC) environmental awareness and health improvement. Production Department To undertake production activity and maintain desired production volume Electrical & Instrument Maintain and economies electricity consumption, Installation and maintenance of Electrical & Electronics Instruments Mechanical Department Installation and maintenance of plant and machinery. Research and Development Product development, product improvement and economies (R&D) production cost by discovering raw material substitute or change in production process. Quality Control Maintain quality and deal with complaints Project Department To design and build structural design of new plant to be installed. Marketing & Sale To increase existing demand, to work as organizations intelligence in large outer environment, customer satisfaction, advertisement, smooth dispatch, rationing of products in case of excess demand

Executive Summary
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. 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 we sell to bottling and canning operations, authorized fountain wholesalers and some fountain retailers. They also market and distribute juice and juice-drink products. In addition, they also have ownership interests in numerous bottling and canning operations. They compete in the nonalcoholic ready-to-drink beverage business. Their offerings in this category include some of the world's most valuable brands, 232 in all. These include soft drinks and non-carbonated beverages such as sports drinks, juice and juice drinks, water products, teas and coffees. As discussed earlier, to meet their long-term growth objectives, they make significant investments to support their brands. This involves investments to support existing brands and to acquire new brands, when appropriate. 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 is 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 decided for acquisition worldwide. Actually they are operated 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. On the whole Accounts Department is consisting of about 14 permanent employees. As mentioned in the organ gram of the CCBPL, Multan Plant Mr. Aamir Ahmad Jan was the Head of the department during my internship program. He is a competent person in the field of Accounting. As mentioned in the organ gram of 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 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. Accounts 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 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 are Fleet and 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. After take over of the company in late 90s, progressive management enables the organization to increase the profitability continuously in last many years and the company is continuously increasing its market share consistently. Increase in profits and sales volume is shown in financial analysis of the firm and it is indicating 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 practical knowledge in various fields. Especially I got a chance to practically work in Accounts & Finance Department and apply all those concepts in reality that I learnt 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 the Market Development Officers to see whether the assets of the company are present in market in proper shape or not. Another objective was to minimize the misuse of these assets.

Career Planning
The company provides attractive salary packages as well as good career progressions to its employees. Special attention is given to Succession plans to fill up gaps required at the time of need. The employees are made aware of their career progressions profile right at the time of induction.

Chairmans Message
I am pleased with the progress we made in 2005 toward our goal of delivering consistent, sustainable growth. In 2005, both profits and unit case volume reached a record high, and our employee morale improved. Our Manifesto for Growth has set our strategic road map, and the engagement of our people has given 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 who choose to purchase and consume our products every day around the world. We understand our responsibilities as an engaged citizen of the world. We believe we lead a system that creates value and makes a positive difference everywhere it does business. Taken as a whole, the Coca-Cola system--comprising The Coca-Cola Company and our bottling partners--is one of the largest consumer products enterprises 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 to deliver longterm sustainable growth while being mindful of our short-term commitments. Our work is far from finished, but as we've moved from words to deeds and from plans to actions, the initial impact of our efforts shows clearly in our 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 operating revenues grew 6 percent to $23.1 billion. Through Our Manifesto for Growth, we identified strategic corridors for expansion to complement our core carbonated soft-drink business. We more effectively integrated marketing, strategy and innovation while reinvesting an incremental $400 million in those capabilities. And we introduced new products--capturing greater share--in juice and juice drinks, water, energy drinks and sports drinks.

Beverage Industry in Pakistan

The beverage industry of Pakistan has become a play ground for many firms like Coke, Pepsi, RC Cola, Amrat Cola, Gourmet Cola and many others newly introduced local companies. But only two companies share most of the market share, Pepsi and Coke. These two companies jointly are enjoying a market share of more than 90%. But still a very huge share of this market is still uncovered. But in 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 and still most of them are not considered as real competitors of these two players on any 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 are considered 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. are still 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 two giants 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 and therefore they are still struggling in the market. But it cannot be said that these campaigns were wholly failed and could not disturb the business of these two firms. A negative image of Pepsi has created in minds of some religious people dew to its affiliation with Israel. So, it can be said that there are only two main competitors in this industry in Pakistan like most of the other countries of the world. But the statistics of this industry 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 as it is having in most of the South Asian countries. Pepsi is claiming a market share of about 60% of the total market; on the other hand Coke is claiming a market share of about 37% to 40%. And both the competitors are also claiming that their market share is increasing rapidly.

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.

per day.

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

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.

released.

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

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 give value and respect to their people

CCBPL Values

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 2nd 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 (In millions except per share data) 30,990 NET OPERATING REVENUES Cost of goods sold 11,088 19,902 GROSS PROFIT Selling, general and administrative expenses 11,358 Other operating charges 313 OPERATING INCOME 8,231 Interest income 249

($) 2008 31,944 11,374 20,570 11,774 350 8,446 333

Interest expense 355 438 Equity income (loss) net 781 -874 Other income (loss) net 40 39 7,506 INCOME BEFORE INCOME TAXES 8,946 Income taxes 2,040 1,632 6,906 5,874 CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests 82 67 NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA6,824 5,807 COLA COMPANY 3 3 BASIC NET INCOME PER SHARE1 1 2 DILUTED NET INCOME PER SHARE 3 2,315 AVERAGE SHARES OUTSTANDING 2,314 Effect of dilutive securities 15 21 AVERAGE SHARES OUTSTANDING 2,329 2,336 ASSUMING DILUTION 1 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, (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Marketable securities Trade accounts receivable, less allowances of $55 and $51, respectively Inventories Prepaid expenses and other assets TOTAL CURRENT ASSETS EQUITY METHOD INVESTMENTS OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES OTHER ASSETS PROPERTY, PLANT AND EQUIPMENT net TRADEMARKS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES

($) 2009 ($) 2008

7,021 2,130 9,151 62 3,758 2,354 2,226 17,551 6,217 538 1,976 9,561 6,183 4,224 2,421 48,671

4,701 4,701 278 3,090 2,187 1,920 12,176 5,316 463 1,733 8,326 6,059 4,029 2,417 40,519

Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFERRED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS EQUITY Common stock, $0.25 par value; Authorized 5,600 shares; Issued 3,520 and 3,519 shares, respectively Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost1,217 and 1,207 shares, respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCACOLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY

6,657 6,749 51 264 13,721 5,059 2,965 1,580

6,205 6,066 465 252 12,988 2,781 3,011 877

880 8,537 41,537 -757 -25,398 24,799 547 25,346 48,671

880 7,966 38,513 -2,674 -24,213 20,472 390 20,862 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.

Vertical Analysis Balance Sheets 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 14.43% 11.60% Short-term investments 4.38% TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 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% LONG-TERM DEBT 10.39% OTHER LIABILITIES 6.09% DEFERRED INCOME TAXES 3.25% 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% Capital surplus 17.54% Reinvested earnings 85.34% Accumulated other comprehensive income (loss) -1.56% Treasury stock, at cost1,217 and 1,207 shares, respectively -52.18% EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCACOLA COMPANY 50.95% EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1.12% TOTAL EQUITY 52.08% TOTAL LIABILITIES AND EQUITY 100.00%

32.05% 6.86% 7.43% 2.16%

2.17% 19.66% 95.05% -6.60% -59.76% 50.52% 0.96% 51.49% 100.00%

Vertical Analysis Income Statements THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, (In millions except per share data) NET OPERATING REVENUES Cost of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income (loss) net Other income (loss) net INCOME BEFORE INCOME TAXES Income taxes CONSOLIDATED NET INCOME Less: Net income attributable to non-controlling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY BASIC NET INCOME PER SHARE1 DILUTED NET INCOME PER SHARE1 AVERAGE SHARES OUTSTANDING Effect of dilutive securities AVERAGE SHARES OUTSTANDING ASSUMING DILUTION

2009

2008

100.00% 100.00% 35.78% 35.61% 64.22% 64.39% 36.65% 36.86% 1.01% 1.10% 26.56% 26.44% 0.80% 1.04% 1.15% 1.37% 2.52% -2.74% 0.13% 0.12% 28.87% 23.50% 6.58% 5.11% 22.28% 18.39% 0.26% 0.21% 22.02% 0.01% 0.01% 7.47% 0.05% 7.52% 18.18% 0.01% 0.01% 7.25% 0.07% 7.31%

Horizontal Analysis Balance Sheet THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Marketable securities Trade accounts receivable, less allowances of $55 and $51, respectively Inventories Prepaid expenses and other assets TOTAL CURRENT ASSETS EQUITY METHOD INVESTMENTS OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES OTHER ASSETS PROPERTY, PLANT AND EQUIPMENT net TRADEMARKS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS TOTAL ASSETS 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 cost1,217 and 1,207 shares, respectively 4.89% EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCACOLA COMPANY 21.14% EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 40.26% TOTAL EQUITY 21.49%

2009

49.35% 100.00% 94.66% -77.70% 21.62% 7.64% 15.94% 44.14% 16.95% 16.20% 14.02% 14.83% 2.05% 4.84% 0.17% 20.12%

TOTAL LIABILITIES AND EQUITY

20.12%

Horizontal Analysis Income Statement THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2009 (In millions except per share data) -2.99% NET OPERATING REVENUES Cost of goods sold -2.51% -3.25% GROSS PROFIT 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% 19.18% INCOME BEFORE INCOME TAXES Income taxes 25.00% 17.57% CONSOLIDATED NET INCOME Less: Net income attributable to non-controlling interests 22.39% NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA17.51% COLA COMPANY 17.53% BASIC NET INCOME PER SHARE1 1 17.67% DILUTED NET INCOME PER SHARE -0.04% AVERAGE SHARES OUTSTANDING Effect of dilutive securities -28.57% -0.30% AVERAGE SHARES OUTSTANDING ASSUMING DILUTION

SWOT Analysis
SWOT analysis enables us to find out a better way of utilizing the strengths of an organization to get maximum benefits of the opportunities available in the industry 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 on strengths to get better results from opportunities, deal with threats by using your strengths 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 without concerning 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 competitors available 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 that are working here are loyal to the organization and it is resulting in improving the motivation level of the employees, which in the end results in high productivity and better performance. 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 to lack 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 know their best use. 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 other markets 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 and availability 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 four dimensions of environment.

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 cannot heavily invest in the Pakistani market due to this factor.

Economical
As far as the economic conditions are concerned they are also not favorable the purchasing power of people is decreasing due to high inflation and there is a threat 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 with the coca cola company specially after Iran and Iraq war but the participation of company in social responsibilities is appreciating which have build a good reputation in the market.

Technological
Market of Pakistan is passing through a technological revolution which provides opportunity to all the industries to modify their process. For example if the Coca cola Company would start selling its beverages through automatic vending machines 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 experience of working in Accounts Department. During this whole period, I found that following improvements can further enhance the performance of the organization.