INTRODUCTION 3

PLANNING...............................................................................................5
ORGANIZING..................................................................................11
ANALYSIS OF THE ORGANISATION STRUCTURE.............................................13

LEADING...................................................................................................17
LEADERSHIP STYLE.............................................................................................17
CONCLUSION...................................................................................................21
SWOT ANALYSIS..........................................................................................................21
 Coca Cola Beverages Pakistan limited

INTRODUCTION
The focus of this report is basically to analyze the different management
functions at Coca cola beverages Pakistan limited Karachi. These functions
include planning, organizing, leading and controlling.

History:

International:

Coca-Cola laid the foundation of the beverage industry when it was formed
in May 1886 in Atlanta. However it was not until 1895 that the idea of
selling coke in bottles was introduced. With the passage of time Coca-Cola
gained popularity and its product began to get recognized internationally.
Thus from its mere beginning in 1886 Coca-Cola has now been transformed
into a strong multinational with its product being currently recognized all
over the world. Coca-Cola, in fact, has now become one of the most famous
and widely consumed brands in the world. It has not only established its
footings in the beverage industry but is currently heading the list of the
most financially sound companies in the world.

Pakistan:

Although Coca-Cola is not a new name for the local market, Coca-Cola
Beverages Pakistan Limited (CCBPL) began its operations on 26 May 1996 in
Pakistan. Coca-Cola Beverages Private LTD (CCBPL) is a joint venture
between Coca-Cola International, Fraser and Neeves Singapore and
Package Ltd. Initially it acquired National Beverages LTD Karachi and later
acquired International Beverages LTD Hyderabad .In May 1996 Fraser and

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Neeves, a Singapore based bottler of Coke, bought off the local bottlers in
Karachi. Not long after it went on to acquire the bottling plants in
Hyderabad as well. Since then coke has made an impressive impact on the
local market by increasing it’s availability as well as its volume share. CCBPL
has decided to expand its operations in Pakistan by buying other bottlers all
over Pakistan. Implementing their plans of acquisitions of other plants they
have recently acquired all the plants in Pakistan as they are inclined to give
more attention to increase the market share in Pakistani market.

Products:
Coca cola Beverages Pakistan has a very narrow product range. It has the
following brands in Pakistan.

 Coca Cola
 Sprite
 Fanta

These products are sold in the market in different sizes of bottles. These
sizes are available for all its products.

 250ml
 250 ml (Non Returnable)
 300ml
 1 liter
 1.5 liter pet

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PLANNING
AN OVERVIEW
Strategic planning, formulation and implementation are core management
functions. Although strategic management has been in existence for only a
few years its implications have been firmly and strongly rooted in
organizations that want to stand in good stead. Among all the varied things
that managers have to deal with and act upon, few affect an organization’s
performance more lastingly than do the task of charting an organization’s
future course, figuring out the what strategic moves and approaches to
undertake, and then orchestrating execution of the chosen strategy as
close to perfection as is managerially possible. One of the biggest factors in
determining whether the organization performs up to its potential or not is
the extent to which the management team performs the strategic making
and strategic implementing functions. Indeed

Good strategy and good implementation are the most trustworthy

proof of good management

A strategic plan, then, is the bridge to the future, which an organization uses
to lead from what it is to what it envisions it can become.

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 Coca Cola Beverages Pakistan limited

ENVIRONMENT:

The environmental factors affecting Coca Cola can be divided into:

THE GENERAL ENVIRONMENT:

The Coca Cola Beverages Pakistan limited has a very strong potential in the
future as Pakistani population is increasing and there is a shift in the
consumer perception of its conservatism and the stigma, which was attached
to it as an American product, is losing its effect. Increase in the level of
inflation is a major concern for the company as the purchasing power of the
people is eroding day by day. As there is an increase in the dual career
families and women has started working in the offices with a great
enthusiasm so it can be a capitalizing point for the company. The
legal/political environment does have much effect on this company. As
there has been a continuous change in the governments and the policies
related to the duties and taxation so it is relatively less immune to changes in
this sectors of the environment.

THE TASK ENVIRONMENT:

As Coca Cola has acquired 6 more plants in the country from their
franchisees so it will increase their share as they are having more
professional people in their management. The consumers of CCBPL are
people from all the cultures and all the level of incomes. It is a company
who is distributing its products to the masses. Apart from this they have
some exclusive customers who are categorized as industrial customers these
are: KFC, PIA, Pearl Continental, Sheraton, etc. With the acquisition of the
new plants they have hired MBAs just to increase the level of
professionalism. Their major competitors are Pepsi, RC cola, and some local
products, which are manufactured in the cottages. Apart from these they
consider all the thirst quenching products as their indirect competitors like
Nestle, Haleeb, Milo etc. As for as suppliers are concerned they import their
raw materials from the parent company.

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THE CORPORATE OBJECTIVES

Coca-Cola vision statement:

“We will become the best and the

biggest anchor bottler in the
world”

CCBPL has a very flat hierarchy, consisting of just three layers. Thus, the
top management handles most of the goals setting and planning activities.

The objectives of this company can be classified as:

STRATEGIC GOALS:
The strategic goals are considered when company is thinking of the long-
term objectives but at coca cola strategic objectives and goals are set up for
three years. These strategic goals are decide by the top management with
consultation by the parent company head quartered at Singapore. However,
they are reviewed every year in the annual meeting to make sure that they
are in line with the changing environment. They are:
 To continue to be an organization providing the quality products to
the valuable customers.
 To select and retain the professional people for the organization.
 To project an outstanding corporate image.
 To satisfy the customer through extra ordinary service and an
excellent service along with the complete tactical and operational
support.

TACTICAL GOALS:

The top management of the company on an annual basis devises these goals
together with the consultation of the lower level employees. Then each

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departmental director is given these annual tasks that then subdivide it on the
quarterly or monthly basis to have a proper check to ensure that these
objectives are achieved, mainly through marketing, is the job of the director
of each division. For this year, these goals are:

 To increase the revenues by 20% as compared to last year.

 To increase the total retail customers by around 10%.
 To increase the market share by 5%.
 To reactivate the discontinued customers by 30%.

OPERATIONAL GOALS:

Operational goals are decided by the top management in consultation with

the lower level employees. They are following the concept of management
by objectives (MBO). Each employee is assigned its goals and is told what is
expected of him and then he is evaluated on the basis of certain rules and
regulations followed evenly by the company.

For example: a sales man is given following tasks, duties and certain
targets: Each salesman has to oversee around 100-125 outlets. The
frequency of visits to each outlet depends upon the sales of that particular
outlet. Normally, a salesman has to visit a single outlet thrice a week i.e.
every alternate day. This means that a salesman visits at least 20-30 outlets
per day.

The salesman has three basic functions to perform.

 To find new customers,

 To retain existing ones,
 To bring back the discontinued accounts.

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Each salesman has to bring in at least three new accounts every month.
These may either be new customers or the reactivation of the discontinued
accounts.

Sales manager is made responsible for the performance and achievement

of operational goals and is assigned to set certain milestones for the
salesman so as to give him proper feedback, which definitely helps the
salesman achievement of the above-mentioned goals.

DECISION-MAKING

Competing in the market place is like a war. You have

injuries and casualties, and the best strategy wins

John Collins

The decision-making process in CCBPL is centralized. The model used is

classical, whereby the top management takes their time while making
decisions and explore and evaluate all the possible alternatives before
choosing the rationally economic and feasible solution.
Programmed decisions are made only by the top management with no
consultation what so ever with the line managers while the daily and routine
decisions are made by the line managers at the middle level with the prior
permission or approval from the general manager.
Decisions, which are normally taken at the top management, are related to

 The package positioning

 Trade discounts
 Advertisements
 Price reductions
 Distribution

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While recruiting new employees, the top management approves the

vacancies and asks the Human Capital Department to conduct the written
test and this test normally is conducted for the employees at the lower level.
Then prospective applicants are short listed through the interview process.
Then the Business and operations manager or general manager personally
interviews the employees and then makes the final decision about the
selection himself.

Hence, the style of decision-making followed by the CCBPL model, is AII.

That is, the decisions are made on the basis of the inputs provided by the
lower level employees and the managers at the middle management level.
Top management asks for the suggestions and ideas of his subordinates
and then takes the final decision himself.

However, the remaining decisions, which are mainly related to the daily
operations, are made by the respective managers who are eventually made
responsible for the results.

The management is very much cooperative and encourage its employees to

come up with new ideas related to their duties and the work they do so as
to increase the overall efficiency of the organization and eventually
increasing the profits.

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 Coca Cola Beverages Pakistan limited

ORGANIZING

ORGANOGRAM

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ANALYSIS OF THE ORGANISATION

STRUCTURE

DEPARTMENTALISATION:

CCBPL is divided into different departments on the basis of functional

approach. People are grouped together on the basis of common skills and
work activities. This approach helps company in achieving the economies of
scale through high quality of problem solving and lesser needs of the
training of the employees.
CCBPL is headed by the General Manager. There are five departments at
CCBPL namely, Production, Industrial Relations, Sales and Marketing,
Human Capital, and Finance and Accounting.
Production Department is responsible for the overall production of the
CCBPL. There are 8 plants of CCBPL operating throughout the country.
Different areas are distributed the products on the basis of nearness so as to
reduce the transportation cost.
Industrial Relations Department is responsible for dealing with the problems
related to the working environment of the employees and the issues related
to the labor unions.
Sales and Marketing Department is responsible for the making the product
available in the market and to deal with the issues related to the
advertisements of the products.
Human Capital Department is responsible for looking for the efficient pool
of workers, selecting the professionals and makes them happy so that they
should stick to the company. The Human Capital department deals with
management level employees’ grievances.
Finance Department deals with the overall costing and pricing of the
products. This also handles the import related issues of the company.
Accounting department assists the sales department in making invoices and
payroll entries.

WORK SPECIALISATION:
The work specialization is high, as each Manager is made responsible for
only a particular function, which is his expertise. There is no boredom or
monotony as each salesman is meeting the different sort of person and the
work is challenging and promotions are based on performance there is no
monotony and boredom.

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 Coca Cola Beverages Pakistan limited

AUTHORITY AND RESPONSIBILITY:

The salesman has to report to the sales manager. These sales managers are
responsible for the performance of the sales man and they are required to
provide them timely feedback. They are also required to provide the
guidance at any time and related to the issues related to the performance of
the employees. These salesmen are monitored on an on-going basis by their
manager, which serves as an effective control mechanism.
The employees have a lot of authority, responsibility and information
relative to the work that they are doing. However, all the information and
authority relative to the work is provided by their respective managers.
The procedure is same in the other departments as well.

DELEGATION AND ACCOUNTABILITY

There is a high degree of delegation and delegation is done with proper
authority and responsibility. Each manager is also made accountable for the
actions of his subordinates. Proper instructions and guidance is given at
time to time to achieve the objectives by the respective managers.

Apart from the delegating every manager is responsible for motivating his
juniors so as to increase the effectiveness and efficiency of the employees.
Human Capital department also helps employees realize their potential and
motivate them through different methods. They make sure that they give
the best in return to their managers. This increases their performance, the
quality of their work, and customer satisfaction.

SPAN OF CONTROL:

The span of control is low as there are 3-5 employees reporting to their
managers. This low structure is due to the fact that organization is a vertical
and different people have different works to do so. It is also difficult to
control more than five people and still manage the resources and people in
an effective manner.

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 Coca Cola Beverages Pakistan limited

RESOURCE ALLOCATION:

As far as resource allocation is concerned, the managers of each department

have the authority to utilize the organizational resources whenever needed
for the functions of his department. They have to get the approval from the
other managers if these assets belong to other managers. These resources
may be capital, human or any other available.

ORGANISING THE HUMAN RESOURCES

Recruitment is normally done on the required positions and not on the

standby basis. Recruitment starts whenever a supervisor or sales manager
needs a salesperson and it is first approved by the general manager before
sending it to the human resources department.

All the vacancies are first internally advertised so that all the employees
who fulfill the requirements can avail this opportunity. If there aren’t any
suitable persons for a particular job then human resource department
search its data bank and if there is no suitable person then at last it is
advertised in the newspaper but it is rarely the case at coca Cola for the
sales man.

Selection is based on different criterion for different positions. Education

requirements are the first and the most important and are the first part of
the screening of the personnel.

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After the screening stage, applicant is called for the aptitude test. For a
salesman job simple arithmetic and general knowledge is tested. Know how
of English is also necessary in some cases.

After passing the aptitude test applicant is asked to appear for an interview.
This interview is normally carried out by the sales and human resource
department. Purpose of this interview is to confirm the data and claims,
which the applicant has produced and made.

If the applicant is selected, he is asked for four sureties or any other

references, which he can make and sometimes, human resource
department also like to confirm from their Ex-Employers about the conduct
and the reason for leaving of the applicant.

TRAINING:

At Coca cola on the job training is given the utmost importance. At first a
sales man is given information about the product, sales environment and
company policies and procedures. Ethical behavior is emphasized most so
as not to create any sort of bad habits which can cause great problems for
the company. Normally a new sales man is supposed to work under
another salesman to learn the basics of selling techniques and the overall
environment in which he will be working.

A salesman is then allowed to work under the salesman but he is asked to

perform all the operations by his own. These include filling out the route
card, dealing with the customers, communicating with to loader, cash
management, setting the visi cooler and the next days order to be loaded.
After doing all this if has any problems in learning then he is guided by
salesman, market developer, and sales manager if required.

Apart from this on the job training, the company also has some in-house
training facilities. The company has a sales hall in which all the sales

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personnel are given some tips regarding the changes in the selling
environment and how to improve efficiency and efficacy. These tips are
normally given by the general manager.

Coca Cola also arranges some type of seminars, work shops and modules
related to the sales management, Forecasting of the daily sales,
merchandising, selling skills, supervisory techniques and other areas related
to the sales.

Coca Cola does not have any library and special trainers but they do have
the separate space for the training and they also use some sort of videos to
elaborate and show the examples of effective selling skills and techniques.

To maintain the professional employees company has a policy of promotion

from within. Promotions are based on the performance, which is measured
very objectively. Apart from this the company pays its employees more
than the industry wages. Not only the wages and salary but different other
benefits are also given to employees to motivate and retain them in the
organization. The company also has an effective incentive plan.

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 Coca Cola Beverages Pakistan limited

LEADING

LEADERSHIP STYLE
The general manager of the company is at the topmost position in the
organizational hierarchy, Even though he is not directly involved in its
operations he is responsible for taking major administrative decisions
regarding the company policy and Operations. Departmental managers are
responsible for leading and directing their subordinates. These leaders focus
on these areas:
 Increasing business with a coordinated approach by helping each
other in its operations.
 Encouraging the employees to give new ideas so as to increase the
customer satisfaction.

As there is a very high degree of delegation and participation so they believe

that the leadership style used in all the departments of CCBPL is democratic.
The concept of team management is only practiced in the sales and
marketing department as they have to work in dependence of one another.
Subordinates are given a fair treatment and are dealt in a very good manner
so as to give them a feeling that you are not only an employee but also a
member of the family.
The managers at CCBPL are very supportive as they use teams and treat
subordinates as equals, and have a highly open communication system. They
are participative since they encourage the involvement of the employees in
decision-making and make use of group discussions. However, some
monetary and non-monetary rewards are used to create a high involvement
from the employees especially at the lower level.

MOTIVATION
Employee motivation is given a very high consideration at CCBPL. At
CCBPL they have the policy of promotion from within policy. Promotions
are bestowed on the performance basis. This performance base motivates
employees to work hard and achieve the goals, which are very objective and
are perceived achievable by most of the employees.
Apart from this compensation plan is also a motivating factor as CCBPL is
paying more than the industry averages. Not only this different campaigns

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and competitions between the employees itself are also used to motivate the
employees.
Managers play a vital role in motivating employees as they give them the
timely feedback about their activities. They also help them solve different
problems, which can be job related or personal problems. Working
environment and a challenging milestone are a major factor in employee
motivation at CCBPL.

COMMUNICATION
There is open environment in CCBPL, which discourages barriers among the
members sharing information. The top management consults lower ranks
before deciding on the policy matters and then these things are
communicated downwards. Every employee is allowed to see the general
manager at any time if he has any problem. Inter departmental
communication is done through formal and informal manners. Grapevine is
also used to get the feedback about the employees’ views about the
management.

CORPORATE CULTURE
The Top management at coca cola also try to emphasise to follow the
prescribed culture of the organization. CCBPL has formal and documented
values that are communicated to all the employees. To ensure proper
application of the rules and behaviour of the values, the top management act
as role models, and closely administer and review their employee’s
behaviour.

THE SLOGAN:

“ALWAYS COCA COLA”

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CONTROLLING
Control is done through the evaluation, which is based on the very
objective basis. Certain criteria are fixed in advance and if these criteria are
not met then the employees are asked and evaluated for the reasons and
corrective actions are taken by the respective managers. Different
departments have different criteria and different reporting and controlling
systems. The reporting, evaluation and control system of sales departments
is follows:

Sales Person’s Reporting system:

Every sales person directly reports to market developer of his area. A sales
person is supposed to give him a daily report of his activities and he is free
to ask for any kind of assistance from the market developer.

Every salesperson is given an attendance punch card, which records his

arrival and departure time. He is also given a route call card, which he is
supposed to fill out. This card includes all the details about the visits of the

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outlets, time spent on these outlets, sales made on these outlets, time
spent on these outlets, sales made on these outlets, time during travelling,
names of the loaders and salesperson’s time in and time out of the vehicle.

Apart from this a sales person is also given a form to fill up for the next days
order to be loaded in the truck. This basically tells about the total sales of
the salesman according to the brand and the size of the product. This
basically is used by the human resources department to evaluate the
performance and calculating the total salary of the salesman.

Sales Person’s Evaluation System:

Every salesperson’s evaluation is done on quarterly basis. Evaluation helps

the company to promote the people to the higher levels of the
organization. This evaluation also motivates salespeople to work hard and
get the promotion or at least the monetary rewards, which are given not
only to the best salesman but the best market developer and the best sales
manager of the year.

Performance is evaluated on the basis of performance development plan.

Performance is measured on the basis of achievement of the targets, which
are set and communicated at the very beginning of the year to each sales
manager, each quarter to every market developer and every month to each
salesperson. This performance development plan evaluates the sales
people on the basis of call slips, Route call, Call completion, Effective and
productive call, attendance, growth in sales, market development and the
punctuality of the salesman.

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SWOT ANALYSIS

STRENGTHS

STRONG MUTINATIONAL

Coca-Cola has a brand name that holds its own prestige in the world
market. The multinational entity of the Coca-Cola Pakistan gives it an edge
upon other competitors. The management of this beverage company
comprises of one of the most professional people and the strong financial
firmness guarantees it a solid backing to sell its products.

EMINENT BRAND NAME

It is rated as the world’s number one cold drink and is famed for its
internationally well-known brand name “Coca-Cola”.

QUALITY OF PRODUCTS

The product quality has improved due to upgraded quality of

packaging and the ameliorated liquid in comparison to its competitors. My
personal experience is that the product quality and taste is far better than

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any product of it’s kind and also the improvement in packaging and the
commencement of plastic shells has received a favorable response from the
dealers and the loaders.

REGULAR SUPPLY

The regular supply of the products is another strength of the

company. The products are regularly supplied to the dealers through
proficient means of delivering and distribution has given Coca-Cola Pakistan
an added advantage. Coke trucks supply the products regularly and always
have the desired products for the dealers.

AVAILABILITY OF PRODUCTS

In the past Coca-Cola was not available in abundance but now stiff
measures has been taken to increase its availability. The increase in the
procurement of Coca-Cola has done through new supply and distribution
measures and advertising campaigns

AGGRESSIVENESS IN THE MARKET

Its marketing strategy is very aggressive which aids it in further and

incessant production and distribution of its products. It gives trade offers to
its dealers for storing more and more coke products and the signage
strategies and agglomeration of all the marketing strategies proves that it
has a very aggressive marketing strategy. This will help Coca-Cola Pakistan
in strengthening its integrity in the market.

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WEAKNESSES

DISSATISFACTION AMONG STAFF

One of the major weaknesses as in majority of companies is the lack

of co-ordination between the management and the worker. In short there
is a weak point in their Human Resource management. Workers feel that
they are being exploited and are not given the remuneration that they
deserve. The management fault is that they think that the worker is
indefatigable and can work tirelessly. The tough schedule results into
limited rest for them and there are no holidays.

MOTIVATIONAL FACTORS

The employees lack motivation simply because of the huge

communication gap between them and the management. Thus grievances
reign high for they feel that their problems and recommendations are not
being aired the top management. The workers expect to be adequately
satisfied in terms of their salary and compensations

CENTRALIZED DECISION MAKING

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The decision making process in the company is highly centralized and

the workers feel that there exists no proper authority existing in the firm.
The salesmen feel dissatisfied for they are totally powerless to make any
decisions themselves. In dealing with their buyers they have not the
slightest authority to allow them any credit or discount.

LESS AVAILIBITY

The product is not available to the extent that it should be. If Coca-
Cola wants to make an impact in the market they will have to do more than
they are doing at the present moment.

LACK OF PROMOTION

Promotional activities have been greatly neglected in many areas. In

an interview with the route officer and a few salesmen it was clear that for
areas such as Nazimabad and Liaquatabad no heed has been paid both to
the singe and promotional activities. This indeed results in a high degree of
difficulty for coke in penetrating the market.

MANUAL PAPER WORK

The huge amount paper work takes a lot of time, which could be
effectively channeled to other important activities. The salesmen have to
do a lot of clerical work i.e. he has to fill a lot of forms (call slips, route
riding forms, cash memos, clearing bills etc.) at the shops and also after
arriving back at the factory. At the same time the management also

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complains that the paper work leads to a lot of pilferage by the employees.
All such activities cause an overall great reduction in productivity.

LACK OF COORDINATION

In the factory there is a co-ordination lag between the activities of

the marketing, sales and repairing departments. The sales department
complains that the marketing department does not pay any heed to their
problems. The sales department also complains that the repair of the
visicoolers is always delayed. Until or unless Coca-Cola restructures its co-
coordinating activities the availability of its product would be always
delayed.

OPPORTUNITIES

NEW MARKETS

We know that Coke came to Pakistan in 1996 and since it is working

hard to develop its market. We think that Coca-Cola can secure new dealers
and buyers of its product as still large part of the country is still devoid of its
products. It can promote its products in the younger generation by

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targeting the new outlets being opened due to improved law & order
situation and a growing population.

THREATS

FAKE PRODUCTS

In areas such as Liaqatabad, New Karachi, Glimmeretc. Fake

beverages by the name of coke are being supplied by unknown people.
Such activities really hamper the company’s name and its brand originality.
Above all the fake beverages supplied are almost similar to the taste of the
original Coke brand and not everyone can decipher the difference between
the original and the fake product. This is in fact a great threat to Coca-Cola
for unworthy people is taking advantage of its brand name and spoiling its
good name in the market.

COMPETITOR’S SCHEMES

For the purpose of promoting its product, Coca-Cola’s competitors

have been doing much more than Coke itself is doing. For example Pepsi’s
signage operations have been very successful. In addition to this Pepsi is
also giving very liberal credit policies to its dealers, which gives the dealers
a greater incentive to buy Pepsi rather than Coke.

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THE MANGO SEASON

The mango season is a great threat to Coca-Cola’s operations and

also its sales. According to statistics during the mango season Coca-Cola’s
sales are reduced by about 25-30%. This is indeed a huge blow to Coca-Cola
especially since it is a fairly new company in the market. The greatest affect
is on the revenue from the rural areas where mango drinks take over.
However this is one factor that Coke cannot do anything about for it is not
in their hands. If the mango season is to come then it will and nothing can
be done about it.

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ACKNOWLEDGMENTS

I would take this opportunity to thank Ms. Sadie Kari, our teacher for the
course of Principles of Management at the Institute of Business
Administration Karachi, for her valuable support and encouragement
which she has offered. Her words of wisdom will always be remembered,
and I am convinced that the knowledge of management that she has
imparted would go a long way in making good managers and helping us all
through our professional career.

This report cannot be solely attributed to my effort but it is indeed the

joint effort of many friends and well-wishers. There were times in the
course of preparing this report when things were tough and the future
seemed dark. It could not have been possible to write it, without the
immense help of a few individuals to whom I would like to offer my
gratitude.

In particular I would like to thank Mr. Frederick Gill (Regional sales

Manager, Karachi) of Coca Cola Corporation for his immense contribution
towards this report and Mr. Mehmood Ajmal khan (Human Capital
Manager). Without their cooperation and the amount of time they gave
me, this report would not have existed.

Thanks a lot!

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