FAST MOVING CONSUMER GOODS (FMCG) SECTOR

Fast Moving Consumer Goods are those consumables which are normally consumed at a regular interval. The FMCG sector, alternatively called as CPG (Consumer Packaged Goods) sector primarily deals with the production, distribution and marketing of consumer packaged goods for the consumers. Among the first activities of the FMCG sector there are selling, marketing, financing, purchasing and so on. Recently this sector has also been involved in operations, supply chain, production and general management. Some of the well known FMCG companies around the globe are Nestl, Unilever, Procter & Gamble, Coca-Cola, Kleenex, General Mills, Pepsi and Mars etc. Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. Wide range of consumable goods provided by the FMCG sector turns over a large amount of money, while competition among FMCG manufacturers is becoming more and fiercer and investors are putting more and more into the FMCG industries. The FMCG sector globally has experienced significant growth over the past years driven by emerging markets, mergers and acquisitions (M&A) and product innovation. Other contributing factors which make the industry attractive to investors are: FMCG industry runs on low operational costs It has strong distribution networks and the existence of renowned FMCG companies Growth of the worlds population

The FMCG industry also contributes to the economic development. Not only does it provide the necessary goods for day to day life, but the FMCG industry has also created tremendous job opportunities and careers. It is a stable, varied, challenging and highly profitable sector.

FMCG SECTOR IN ASIA

In the region of Asia this sector holds extreme importance. It is one of the sectors contributing the greatest output to the GDP of the Asian countries. It is said that by 2015, the demand for

FMCG products will increase by 100% in Asian region. Asia is one of the most favorable markets for the FMCG companies due to the availability of: Key raw materials Cheaper labor & operational costs Strong MNC presence Large potential markets

For the above mentioned reasons, investors have invested a lot in the FMCG sector of Asian countries with India and Pakistan being the two countries among the top. With the prices of key raw materials touching new highs, FMCG companies in this region has registered a 16.2 % rise in their cost of raw material with sales growth stagnated to mere 5%. The sales of major FMCG players have been considerably low as the inflation across the commodities has affected the consumer goods segment. The sector witnessed a decline of 15.38% in their net profits on sequential quarter to quarter basis putting pressures on their volume growth, which has grown by only 5.76%. Price rise of key inputs in FMCG sector like wheat and milk rose to 1.13% and 9.13% respectively. Thus big dampener, rising input costs of wheat and milk, has shown no sign of relief. The rise in the prices of fuel and power cost from 0.65% to 5.06% have also contributed to the increased input costs. Rising wage costs have also hit the bottom line of the FMCG companies. The intense competition in FMCG sector has also made advertising as an important expense. FMCG companies have registered a considerable increase in the advertising and sales promotion activities. Although these problems do exists in Asia, there is no denying the fact about the market potential that lies in this area which is of great interest to the MNCs and FMCG companies around the world.

FMCG IN PAKISTAN
Pakistan has a population of over 140 million people that represents a large market for FMCG sector. Following factors are very attractive to the FMCG sector of Pakistan:

Emergence of a large middle class with ever increasing demands for better quality Fast Consumer durable goods such as automobiles as well as services Abundance of natural resources like natural gas, minerals, coal, etc Low labor costs Low production costs

Moving Consumer Goods (FMCG)

Not only this, FMCG sector in Pakistan represents the most attractive career opportunities for the fresh graduates and offer compensation packages that are better than any other sector. FMCG sector is the first choice for any graduate in this era of 21st century.

BEVERAGE INDUSTRY
In this report, concern is with carbonated beverage industry under the FMCG sector. The carbonated beverage industry is a highly competitive global industry. Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate this industry. The market size of this industry has been changing. Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several obstacles to overcome in order to capture the market share. Profitability in the soft drink industry is hoped to remain rather solid, but market saturation of soft drinks has caused analysts to suspect a slight deceleration of growth in the industry. Looking ahead, despite solid growth in consumption, the global soft drinks market is expected to slightly decelerate, reflecting stagnation of market prices. The change is attributed to the other growing sectors of the non-alcoholic industry including tea and coffee and bottled water. Sports drinks and energy drinks are also expected to increase in growth as competitors start adopting new product lines. Because of the above mentioned reason, soft drink leaders are establishing themselves in alternative markets such as the snack, confections, bottled water, and sports drinks industries. In order for soft drink companies to continue to grow and increase profits they need to diversify their product offerings.

Following table represents the percentage of volume of soft drinks in the world market.

The sector is dominated by three major players; Coca-Cola is king of the soft drink-empire and boasts a global market share of around 50%, followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%. All of these companies make a portion of their profits outside of the United States as shown by the table below.

It would be very difficult for a new company to enter this industry because they would not be able to compete with the established brand names, distribution channels, and high capital

investment. Likewise, leaving this industry would be difficult with the significant loss of money from the fixed costs, binding contracts with distribution channels, and advertisements used to create the strong brand images. This industry is well established already and it would be difficult for any company to enter or exit successfully. The carbonated beverage industry is a highly competitive global industry. Coca-Cola and PepsiCo control the market share with Coca-Cola holding 43.1% and Pepsi with 31.7%. Brand loyalty is a large aspect of the soft drink industry. Many consumers of carbonated beverages are extremely dedicated to a particular product, and rarely purchase other varieties. This stresses the importance of developing and maintaining a superior brand image. The soft drink industry is affected by macro environmental factors that will lead to change: First, the entry/exit of major firms is a trend in the industry that will likely lead to change.

More specifically, merger and consolidation has been prevalent in the soft drinks market, causing some firms to exit the industry and then re-enter themselves. Several leading companies have been looking to drive revenue growth and improve market share through the increased economies of scale found through mergers and acquisitions. One specific example is how PepsiCo acquired Quaker Oats, who bought Gatorade which will help expand PepsiCos energy drink sector. This trend has increased competition as firms diversification of products is increasing. A second trend in the macro environment is globalization. With the growing use of the

internet and other electronic technologies, global communication is rapidly increasing. This is allowing firms to collaborate within the country market and expand into world markets. It has driven competition greatly as companies strive to be first-movers. Specifically, the global soft drink markets compound annual growth rate (CAGR) is expected to expand.

Third, changing societal concerns, attitudes, and lifestyles are important trends. In the

United States and Europe, people are becoming more concerned with a healthy lifestyle. Consumer awareness of health problems arising from obesity and inactive lifestyles represent a serious risk to the carbonated drinks sector. The trend is causing the industrys business environment to change, as firms are differentiating their products in order to increase sales in a stagnant market. Fourth trend shows low growth in recent years. The low growth rates are of concern for

soft drink companies, and several are creating new strategies to combat the low rates.

This leads to the fifth trend of growing buyer preferences for differentiated products.

Because soft drinks have been around since as early as 1798, buyers want innovation with the products they buy.

In todays globalizing society, being plain is not good enough. The key for all of these beverage companies is differentiation. The giants have new formulations and appearances. Whatever the strategy, be it a new color, flavor, or formula, companies will strive to create the greatest brand awareness in the minds of the consumer in the hopes of crowding out its competitors. Thus, the last trend, product innovation, is necessary to combat buyers need for a variety of tastes. Firms are already differentiating by taste, with the Coca-Cola Company being an example. The firms product line includes regular Coca-Cola, Diet Coke, Diet cherry Coke, Cherry Coke, Vanilla Coke, Coca-Cola with Lime, Coca-Cola with lemon and many more.

BEVERAGE INDUSTRY IN PAKISTAN

The beverage industry in Pakistan has grown over the time. The industry produces aerated waters, juices, soft drinks, syrups, tea, coffee, squashes, etc. With about 170 units currently in operation throughout the country, both upstream and downstream industries have grown and are flourishing.

Despite the infinite regulatory challenges attributed to operating in Pakistan, its drinks industry remains fairly buoyant as per Pakistan Food & Drink Report for Q3 10. Pakistan's soft drinks industry is dominated by the basic carbonate range of traditional giants Coca-Cola and PepsiCo. Although health consciousness has begun to surface, the limited spending power of consumers means the trend has yet to truly impact the soft drinks industry and is likely to remain confined to niche markets for the foreseeable future. Some of the salient features of Beverage industry of Pakistan are as follows: The size of the tea industry comfortably outstrips that of soft drinks, which is a rarity in

most emerging markets (estimated tea sales are three times greater than soft drink sales in 2009). The soft drink industry sells to consumers through principal channels namely Food

Stores, Convenience and gas, Mass Merchandisers, Retailers, etc.

Supermarkets are the principal customer for soft drink makers. There are 20% local markets of Beverages in Carbonized Soft Drinks (CSD), 9% of

Bottled Water and 6% of Juice. The market for Soft drinks in Pakistan increased at an average annual rate of 6.3% from

2002 to 2007.

The economic crisis hit Pakistan hard, and the consumer purchasing power dropped

significantly. Soft drinks volume growth slowed down due to increasing poverty, and rising unit prices have also put downward pressure on volume growth. Competition has increased with the wide availability of imported products and additional products from local manufacturers. Competition in the soft drink industry has increased with the wide availability of imported products and additional products from local manufacturers.

Consumer demand for diet products has increased. New products from international

companies which are major share holders in carbonates have been well received and imported products in the juices category have also attracted a lot of consumer attention. On the other hand, bottled water consumption has increased with the deteriorating water supply in urban areas and increasing health consciousness Bottled water consumption has increased with the deteriorating water supply in urban areas and increasing health consciousness.

PepsiCo Inc remains the market leader with 65% share in CSD. Between 2009 and 2013, the report has forecasted that the soft drink value sales to

increase by 45.3% as a slight rise in disposable incomes allow consumers to allocate a greater proportion of their incomes to consumption. Considering that Pakistan has a growing population of 164mn, per capita soft drinks consumption is likely to remain very low for the foreseeable future, which although frustrating for incumbent producers, does underline the industry's potential for both volume and value sales gains over the long term.

Bottled water consumption levels in Pakistan are actually among the lowest of all the

regional markets. The average person consumes just two litres of bottled water per annum, compared to four in India and 10 in China. This is due to the low levels of per-capita income in the country. However, in line with a gradually improving economy and the slow, but steady, spread of organized retail, per-capita consumption levels are set to climb. Pakistans soft drinks industry is set to experience volume sales growth of 30.5% according to estimates and the bottled water sub-sector will be the main driver of this growth.

The Coca-Cola Company is the worlds largest beverage company, refreshing consumers with almost 500 sparkling and still brands and 3000+ products. It is a 123 Year Old Company with 900 + Bottlers Internationally. It is Presence around the Globe. Provides 1,000,000,000 Servings per Day and employs more than 92,400 people all over the world. Coca-cola is advertised in over 350 Languages around the world. The Companys portfolio includes12 other billion dollar brands including Coca Cola, Diet Coke, Fanta, Sprite, Coca-Cola Zero, Vitamin Water, POWERADE, Minute Maid and Georgia Coffee. Globally, Coca Cola is the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the worlds largest beverage distribution system, consumers in more than 200 countries serving over six billion consumers and it enjoys the Companys beverages at a rate of nearly 1.6 billion servings a day. The Coca-Cola Company is divided into the Africa, Euroasia, Europe, Latin America, North America, Pacific and Bottling Investment Groups.

The Coca-Cola system uses: 24% of worlds aluminum cans 17% of worlds PET resin 31% of worlds High Fructose Corn Syrup (HFCS) 5% of worlds sugar 30% of worlds aspartame

Bottling investment group (BIG) is the 4th largest bottler where as CCI is 5th largest bottling group Present in ten countries including Turkey, Kazakhstan, Azerbaijan, Jordan, Kyrgyzstan, Iraq Turkmenistan and Syria and Pakistan. It is 48% shareholder of CCBPL with Management Control.

HISTORY OF COCA COLA

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today.

1894 A MODEST START FOR A BOLD IDEA In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called CocaCola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 THE FIRST BOTTLING AGREEMENT Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically

excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 RAPID GROWTH The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 BIRTH OF THE CONTOUR BOTTLE Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920S BOTTLING OVERTAKES FOUNTAIN SALES As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920S AND 30S INTERNATIONAL EXPANSION Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.

1940S POST-WAR GROWTH During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950S PACKAGING INNOVATIONS For the first time, consumers had choices of Coca-Cola package size and type -- the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960S NEW BRANDS INTRODUCED Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970S AND 80S CONSOLIDATION TO SERVE CUSTOMERS As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990S NEW AND GROWING MARKETS Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

21ST CENTURY The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

COCA-COLA IN PAKISTAN
The Coca-Cola Company began operating in Pakistan in 1953.Benjamin H.Oehlert Junior, former senior vice president of The Coca-cola Company served as United States Ambassador to Pakistan from 1967 to 1969. The Coca-Cola Company is a global company with some of the worlds most widely recognized brands; The Coca-cola business in Pakistan has completed its 53 years of operation. The beverages are produced locally, employing Pakistani citizens. Moreover, their product range and marketing reflects Pakistani tastes and lifestyles, and they are deeply involved in the life of the local communities in which they operate. The plants are in Karachi, Hyderabad, Lahore, Gujrawala, Faisalabad, Rahim Yar Khan, Multan, Rawalpindi, Peshawar, and Sialkot.

The beverages are produced locally, employing Pakistani citizens and their product range and marketing reflects Pakistani tastes and lifestyles, and they are deeply involved in the life of the local communities in which they operate. CREATION OF COCA-COLA BEVERAGES PAKISTAN LIMITED As a part of its drive to enhance the quality, availability, and image of Coca-Cola products, the Coca-Cola Company established a new Company in Pakistan in 1996, by the name of CocaCola Beverages Pakistan Limited (CCBPL). CCBL started the process of acquiring and investing in locally franchised bottling operations. This process was completed in 2006 and, thereafter, all manufacturing and selling rights of CocaCola products are now with Coca-Cola Beverages Pakistan Limited.

VISION
To become a market leader in ready to drink segment while adding best-in-class value to all stakeholders & Aspiration to be the most respected company in the world by: Refreshing the world - every day, all day We are invited into people's daily lives and are trusted to refresh their body, mind and spirit. Being a truly Global Company We are local and we are global, which makes us truly global and allows us to build unique relationships between people. Leading with humble confidence We are determined to make a difference to the world - for our consumers, customers, bottling partners and communities we serve.

2020 Vision and Roadmap for Winning Together is a concept that is developed by Coca Cola in the 21st Century. It is based on the 6 Core Ps of its vision:

Profit: More than double system revenue by 2020 while increasing system margins People: Be a great place to work Portfolio: More than double servings to over three billion a day by 2020 and be Number 1 in the nonalcoholic ready-to-drink business in every market and every category that is of value

Partners: Be the most preferred and trusted beverage partner Planet: Be the global leader in sustainable water use and industry leadership in packaging, energy and climate protection Productivity: Manage people, time and money for the greatest effectiveness

MISSION
Coca-Cola Pakistan exists to refresh the consumers, inspire moments of optimism through their brands and actions as well as benefit all stakeholders, which they will do with highest social responsibility and with uncompromising commitment towards quality of their products and integrity in our operations

Their Roadmap starts with their mission, which is enduring. It declares Their purpose as a company and serves as the standard against which they weigh their actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

VALUES
Our Core Values underlie everything we do. We live by them for two reasons; they are good and right in themselves, worthy of adherence even at the risk of loss of profit-making opportunities, and they epitomize our Companys integrity, which we believe will produce value for our stakeholders over the long term. TO VALUE AND RESPECT PEOPLE:

Working together as a team, accepting differences among people, and sharing the same values. Recognizing and rewarding our people to raise performance and loyalty. Treating everyone fairly with trust and respect. Developing people to their maximum potential.

TO COMMUNICATE OPENLY:

Asking questions, listening attentively and giving feedback to one another. Communicating clearly, quickly and, consistently with every one we deal with. Understanding and responding quickly to the changing needs of our employees and customers. Providing clear direction and, communicating Companys performance effectively on timely basis.

TO HAVE INTEGRITY:

Fulfilling our customers requirements by delivering quality, and value to all constituencies. Meeting the highest ethical standards in all of our business activities. Maintaining our commitment, singularly and unconditionally, to learning and, continuous improvement in everything we do. Challenging our status quo, and achieving what we promised.

TO WIN AS A TEAM:

Creating ways to share knowledge and resources by promoting team work within and across teams. Actively recognizing others for their contributions. Collaborating with others to get the best ideas and achieve alignment. Believing in what we are doing and delivering results.

TO DRIVE QUALITY AND INNOVATION:

Being creative, innovative, and confident about our work and organization. Working in a way that leverages organizational talent and energy to solve business challenges, creating value for all stakeholders. Ensuring consistency at every step and leveraging all business processes, interactions, brands and people capabilities. Holding our products and people to clearly defined standards and balancing performance with the need for speed.

TO BE ACCOUNTABLE:

Empowering employees to be fast, boundary less, intelligent risk-takers with accountability and responsibility. Promoting and protecting our reputation and uphold highest ethical & moral standards, both inside and outside the Company. Delivering quality as per agreed standards. Honoring our commitments with disciplined follow-up.

TO FOCUS ON THE MARKET Focus on needs of our consumers, customers and franchise partners

Get out into the market and listen, observe and learn. Possess a world view. Focus on execution in the marketplace every day. Be insatiably curious.

TO WORK SMART

Act with urgency. Remain responsive to change. Have the courage to change course when needed. Remain constructively discontent. Work efficiently.

TO ACT LIKE OWNERS

Be accountable for our actions and inactions. Steward system assets and focus on building value. Reward our people for taking risks and finding better ways to solve

problems.

Learn from our outcomes -- what worked and what didnt.

TO BE THE BRAND Inspire creativity, passion, optimism and fun.

PRODUCT PORTFOLIO

CORPORATE SOCIAL RESPONSIBILITY

Coca Cola maintains strong commitment with its suppliers and distributors. The company has over 300 bottlers worldwide, operating from large-scale to family owned operations. Coca Cola believes that its bottling partners play a critical role in the companys system and are producers and distributors of nearly 500 brands and are the main connection with their customers. Coca Cola believes in Corporate Social Responsibility. It has partnerships with many social organizations in the U.S. and worldwide under the Coca Cola Foundation.

World Wildlife Fund (WWF): helping protect the endangered species of the world USAID: providing scholarship programs to aspiring and deserving students, clean water access and sanitations services to the poor of developing and under-developed countries Olympic Games: passionately dedicated to bringing the athletes and the public a memorable Olympic Games experiences. In Pakistan, Coca Cola was the first to start Basant Festival in 2000. In 2001, CCBPL launched and adopted school program, under which it adopted three government schools in Gujranwala and three in Rahimyar Khan. The schools had no infrastructure. The company built classrooms, toilets and donated furniture and many other things to various schools. One year after the company opened a school in Karachi with the collaboration of a non-governmental organization. Coca-Cola is the longest continuous sponsor of the Olympic Games since 1928.

COCA-COLA BEVERAGES PAKISTAN LIMITED (CCBPL)

Coca-Cola Beverages Pakistan Limited (CCBPL) is a joint venture between Coca-Cola International, Fraser and Neeves Singapore and Package Limited. Coca Cola first became available in Pakistan in 1954. Soon after, The Coca Cola Company began acquiring the bottling

franchise rights which was eventually completed in 2006. With the establishment of Bottling Investment Group (BIG) in 2005 heavy investments commenced in coolers, assets and people. The core strategies of business are to enhance product portfolio profitability, increase cold availability and to improve market execution. Currently Coke holds 29% of the market share while Pepsi holds 65%. In the year 2008-2009, Coca Cola increased its market share by 4%.

Coca cola in Pakistan has two setups. One is Coca Cola Beverages Pakistan Limited (CCBPL) that deals with the production and distribution of products (owning 49% of the shares) while TCCEC (The Coca Cola Export Corporation) deals with the marketing and branding of products (Owning 51% of the shares). TCCEC is most commonly referred to as Coca Cola Icecek (CCI).

Pakistan offers a substantial growth opportunity with its young population, hot climate and low per capita consumption. CCBPL is one of the fastest growing FMCG companies in Pakistan with one of the highest amounts of capital investments. It has plans to leverage CCIs strengths and its seamless relations with the Coca Cola Company. CCBPL is a significant player in the growth of Pakistans economy. This is quite obvious through the following facts:

CCBPL is one of the countrys top foreign direct investments in FMCG (Fast Moving Consumer Goods) business

CCBPL is one of the major tax paying beverages company of Pakistan CCBPL directly employs more than 3,000 local people in Pakistan CCBPL creates indirect employment for more than 50,000 people in related industries through its vast procurement, supply & distribution system

CCBPL runs many programs to support the social set up of the people of Pakistan

TERRITORIES:
In Pakistan, Coca Cola is present in the following 7 territories. In all territories production plants and offices are available except for Islamabad. The head office is in Lahore.

THE CORPORATE OBJECTIVES

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 At Coca Cola strategic objectives and goals are set up for three years. These strategic goals are decided 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. The objectives are as follows: 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 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. For the year 2011, the tactical goals are: To increase the revenues by 20% as compared to last year. To increase the total retail customers & the market share by 5%.by around 10%. 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. In case of CCBPL, sales to retailers and distributors are one of the most important functions. Hence lets us take a look at the operational goals of a sales man to get the idea about how operational goals are assigned: 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

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.

ORGANIZATIONAL STRUCTURE
Following figure represents the corporate organizational structure of CCBPL:
Managing Director

Director Human Resources

National Legal Manager

Chief Financial Of f icer

Chief Inf ormation Of f icer

Director Supply Chain

Chief Commercial Of f icer Director Central Unit Director Southern Unit

Asst Legal Manager Remuneration & Training Manager Business Planning & Treasury Head National Taxation Manager Financial Controller Operations Manager (LHR/RYK/GUJ) Communication Networking Manager SAP Projects Manager

National Engineering & Technical Services Manager National Purchasing Manager National Quality Assurance Manager National Planning & Logistics Manager

Recruitment & OD Manager Employee Relations & Administration Manager

GM Customer Services

GM National Key Accounts

Regional HRIR Manager CBU

Regional HRIR Manager SBU

FMU CBU Accounts Managers LHR/GUJ/ ISB/FSB

FMU SBU Accounts Managers KHI/RYK /MUX

Territory HR Managers LHR/GUJ/ISB/FSB

Territory HR Managers KHI/MUX/RYK

Production Manager (FBD/MUX/KHI)

GM Sales Development

Following are some of the pictures of Coca Cola Beverages Pakistan Limited office in Lahore:

Entrance View

Dinning Hall and Backyard

Entrance Door

What many people don't know is that globally, The Coca-Cola Company and bottling partners are not one and the same. In most cases it operates as two independent companies. Coca-Cola operates a unique model. The Coca-Cola Company develops high-quality brands focusing its efforts primarily in two areas: creating and marketing brands and manufacturing concentrates and syrups while Coca-Cola bottling companies produce and package the finished beverage products and then sell and distribute them to retail and wholesale customers. This system has been delivering unbeatable drinks and results across the world for more than a century.

Coca-Cola's strategy is to utilize its brands, distribution system, and financial strength to achieve long-term sustainable growth. The Coke system incorporates 900 plants, 500,000 trucks, 10 million cold drink vending machines, and a $50 billion supply chain across over 200 countries with product availability in 20 million outlets. Coca Cola is working together with more than 300 bottling partners globally, operating the most extensive beverage distribution system in the world. Known informally as the Coca-Cola system, this network owns, leases or operates more than 800 plants around the world.

The company's business encompasses the production and sale of soft drink and noncarbonated beverage concentrates and syrups. Coca Cola sells the concentrates to bottling companies (bottling partners) which independently develop local markets and distribution networks. Under franchising agreements, bottling partners then either combine the syrup with carbonated water or combine the concentrate with sweetener, water, and carbonated water to produce ready-to-drink beverages. The finished soft drinks are packaged in containers bearing the company's wellknown trademarks and distribute them to customers - the grocery stores, minimart outlets, supermarkets, restaurants, etc.

COCA-COLAS BUSINESS MODEL:

The Coca Cola Company (TCCC) and its bottling partners (collectively known as the CocaCola system) are renowned for their ability to make their products available to consumers in even the most remote locations. They have utilized a wide range of innovative distribution methods to accomplish this. In many countries, particularly developed countries, the system primarily uses traditional distribution models in which large amounts of product are delivered via trucks or other motorized vehicles to large retail outlets. Yet in much of the developing world, road infrastructure, terrain, retail markets, cost implications and customer needs differ. Thus, other distribution methods have been developed to distribute much smaller amounts of product to a diversity of retail outlets utilizing methods such as bicycles, boats, and pushcarts.

Manual Distribution Centers (MDCs) are independently owned, low-cost manual operations created to service emerging urban retail markets where classic distribution models are not effective or efficient. Common characteristics include:

A central point for warehousing of product, with a manageable coverage area and defined customer base (typically about 150 retail outlets).

Distribution of product is mostly manual (e.g. by pushcarts) to keep costs at a minimum.

Outlets served are typically low-volume with high service frequency requirements and limited cash flow, requiring fast turnaround of stock.

MANUFACTURING PROCESS:
Following 4 key components show the manufacturing process in CCBPL: 1. Syrup Production 2. Water Treatment 3. Manufacturing of Finished Product 4. Quality Controls through-out the Process

FOLLOWING DIAGRAM SHOWS HOW THE BEVERAGES ARE PREPARED:

WATER TREATMENT:

BOTTLE WASHER CYCLE:

Every single bottle is washed for 30 Min before it goes for filling. The phase includes: Washing Cycle Pre wash Hot Caustic/additive immersion

Hot Caustic/additive Rinsing Hot water Immersion and Rinsing Pre-final rinse Final rinse with Fresh Chlorinated potable water

QUALITY ASSURANCE:
ASSURES QUALITY AT EVERY STAGE

Water Treatment Incoming Material Syrup preparation Container preparation Final product

INSPECTION: Every Bottle goes through 3 stages of Inspection. Pre Inspection, Post Wash Inspection and Final Inspection.

COCA-COLA PLANT LAYOUT:

FOLLOWING IS A MORE COMPREHENSIVE PICTURE OF COCA COLA VALUE CHAIN:

Coca Cola Beverages Pakistan Limited is divided into the following departments to carry out the business processes effectively: 1. Human Resource Department 2. Supply Chain Department i. Distribution & Logistics Department ii.Technical Department iii.Purchase Department 1. Information Technology Department 2. Finance Department 3. Legal Department 4. Customer Services Department (CSD)

In the following discussion an elaboration regarding the functions of each department will be made individually to get a closer look on how the overall business processes are carried out.

HUMAN RESOURCES (HR) DEPARTMENT

Human Resources are just what it says: resources for humans within the workplace. Its main objective is to meet the organizational needs of the company it represents and the needs of the people hired by that company. In short, Coca Cola HR department is the hub of the organization serving as a liaison.

The HR department of CCBPL has the following structural hierarchy:

It utilizes the Human Resource Information System (HRIS). Human Resource Department functions at Coca Cola Beverages Pakistan Limited (CCBPL) are characterized into the following three set of activities: Human Resources Industrial Relations Employee Services

COMPENSATIONS PROVIDED: Base pay (Gross salary) Annual incentive based on individual and business performance (given to all employees) Sales force incentive and commission Salary increment BENEFITS GRANTED: Paid leaves and vacations (annual leave, sick leave, causal leave etc) Free samples Provision of vehicles and motorcycles (based on employee position)

 Medical benefits Relocation assistance Driver salary (senior management) etc INDUSTRIAL RELATIONS It includes all activities that deal with the labor employer relationship. It involves activities like keeping abreast of industrial law (legislation and precedents) and to advise managers about their responsibilities, to produce policies that ensure that agreements are followed within the organization, etc. EMPLOYEE SERVICES The Employee Services seeks to establish innovative, employee friendly policies and management practices; foster a healthy, productive, rewarding work environment; and offer administrative and consulting services to departments and employees. It includes a list of areas such as Child Care, Deferred Compensation, Employee Assistance Program etc.

SUPPLY CHAIN DEPARTMENT

The department itself is composed of the following sub-departments: Procurement Department Technical Department Distribution and Logistics Department

The Coca Cola has in recent years improved upon the Supply Chain management due to the following contributing factors: System Improvement and Standardization Standard Operating Procedures Advanced IT applications and data accuracy Benchmarking and Best practice sharing Financial Analysis

In the further section, a discussion of the functions of each of these departments is made in detail to understand how the supply chain functions at CCBPL effectively and efficiently.

PROCUREMENT DEPARTMENT
Procurement department handles the acquisition of goods and services mainly for production and also the provision of services to employees. The key purchase items include: Raw Materials Packaged Materials CAPEX( Capital Assets) item

Purchasing committee is composed of the following personnel: National Purchase Manager Relevant Department Head Finance Manager

For acquiring these, a need based Purchase Requisition (PR) is raised by the appropriate person. This purchase requisition then goes through a process flow for proper approval and leads to the creation of a Purchase Order after which actual purchase is processed. This department is solely responsible to meet all the needs and requirements of CCBPL. It is involved in acquisition of goods and services, payment of vendors, reimbursements and development of vendor contracts. Majority of the purchases, 80-90%, are made at the head office while the rest 10-20% are made at the local productions. The Coca Cola Company is associated with Cross Enterprise Procurement Group (CEPG). All sources that are purchased at the procurement department of CCBPL have to be Coke approved sources as decided by the CPEG.

TECHNICAL DEPARTMENT
It has two sub-departments that include Quality and Production. Each sub-department is supervised by separate managers having their own teams. But as these departments are highly concerned with each other so their managers or team members have interact or meeting with each other on daily basis. PRODUCTION The function of the production department is to produce products on time, to the required quality levels, at the defined product cost. The department works to produce the actual drink. All the SKUs of Coca Cola are produced in the production department. The production site is located in Raiwind, Lahore. Following pictures show how Coca Cola beverages are prepared in the production plant:

QUALITY Two quality performance measurements indices are used at CCBPL which are as follows:

Beverage Product Quality Index (BPQI): BPQI is used to test the following factors against the quality standards to be followed: Appearance (Foreign Particle presence) Taste Micro (Micro Organisms) Gas Carbonation (Carbon Dioxide)

Brix (Sweeteners, exact quantity of various flavors)

Primary Container Quality Index: This quality index is for checking whether the containers are as per requirements and it involves testing of following factors: Closure Condition Closure Function Container Condition Data Code Net contents (Related to volume)

DISTRIBUTION AND LOGISTICS DEPARTMENT

Distribution and logistics department plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers requirements.

The various tasks thus performed by the logistics at CCBPL may be summarized under the heads of: National Planning Demand and Planning Warehousing Transport

In Pakistan, CCBPL are the bottlers as well as distributors. It has direct as well as indirect distribution of beverages. For direct distribution, they have their own distribution set up while for indirect distribution they rely on other distributors. The CCBPL thus appoints sub distributors

and through its DSD (direct store distribution) method distributes the products to all the retail channels. Among various channels that are used by CCBPL are retail outlets, HORECA, Fast Food Restaurants, Street Vendors, etcThe department is responsible for the selection of the best mode of transportation while delivering the goods to the place of destination. Mostly trucks are used for transporting the finished products. Following is the picture of trucks which are used by Coca Cola for the purpose of direct distribution:

Each of the seven territories of Coca Cola has been divided in the following way to carry out distribution. Following is a representation of Lahore territory as distribution and logistics department at CCBPL carries out operations for Lahore region only:

As seen from the chart, Territory 1 has direct distribution, territory 2 has indirect distribution and territory 3 has a mix of both. In each territory, the Sales and Merchandising officer (SMO) is responsible for continual co-ordination with the distribution and logistics department as the deliveries are taken and transported under his supervision.

LEGAL DEPARTMENT

This department takes charge of all legal matters of the company. Legal department is responsible for providing legal services and advice to the company, its departments and employees. The department faces a great number of different legal matters which include: business development, contract management, real estate transactions, customer claims against the company for product damages and defects, litigation, employment law, debt collection, bankruptcy, case prosecution, and much more. The Legal team liaises with bottlers and work closely with Marketing and Media. It is also the responsible for managing external solicitors and the protection of all trademarks for the company lies with this department.

CUSTOMER SERVICES DEPARTMENT

This department is composed of two teams which are as follows: Key Accounts Trade Marketing

The hierarchical structure of Customer Services department is as follows:

Now discussion about the functions of each of the two teams working in the customer services department will be done. KEY ACCOUNTS Key accounts team at CCBPL looks after the National key accounts only. National key accounts are those held by customers who produce most profit for Coca Cola or have the potential to do so or those who are of strategic importance. This team strives to provide the best of its services to their special clients which are termed as the National Key accounts. At CCBPL, key accounts team deal with 24 National Key accounts holder with respect to Pakistan on the whole. The most important functions performed by key accounts team are as follows:

Identification, screening and qualification of prospect accounts Driving the process of developing prospects to customer/partner status Driving the sales process from business opportunity to contract Cultivate customer relations to secure on-going business and expansion

TRADE MARKETING It renders a supportive role to the overall marketing operations. It attempts to satisfy the consumers by integrating with retailers market activities and market development needs. Trade marketing team is continually involved in researching on the retailer on six important clusters: Assortment Presentation Logistics Cooperation Consumer Promotions

Following figure shows the representation of trade marketing and how it functions:

INFORMATION TECHNOLOGY DEPARTMENT

IT operations look after data management, the provision of general IT services and several of the business systems in place. The hierarchical structure of IT department is as follows:

The Commercial IT and General Business Solutions units work together on Demands that are generated from within the organization. Both also work to Supply assistance to vendors that can be both in the form of hardware or software. The following modules of SAP have been implemented at CCBPL: Financial accounting Controlling Asset management Materials Management Production planning

From the distributors to the market place all processes are done on ISIS software which is for indirect distributors and BASIS for direct distributors. Another system is RED that is Right Execution Daily which monitors outlets and channels. The following figure illustrates the utilization of SAP system which covers the entire supply chain:
Suppliers Plant Distribution Houses

ISIS (Indirect Distribution)

BASIS (Direct Distribution)

RED (Right Execution Daily)

FINANCE DEPARTMENT
This department is responsible for dealing with all the financial matters of CCBPL. Its primary goal of the department is to maximize corporate value while managing the firm's financial risks. At CCBPL, FIFO method is used for accounting. The financial department has the following areas of focus: Financial Accounts Management Accounts

Accounts Payable Accounts Receivable Audit Budgeting Cash Receipts Investments Treasury and Capital Purchasing Payroll

Following are the strengths and weaknesses of Coca Cola Beverages Pakistan Limited:

STRENGTHS
1. STRONG MULTINATIONAL Coke is a strong and a financially stable company to say the least. Not only are they a $23 billion company, but in 200 nations. They own 36% of the largest Coke bottler in the world, Coca-Cola Enterprises, which staffs facilities all over the world. Hence it is one of the leading multinational companies operating in Pakistan.

2. MANAGEMENT CCBPL management comprises of one of the most professional people and the strong financial firmness of TCCC guarantees it a solid backing to sell its products. 3. BRAND EQUITY Coke is rated as the worlds number one cold drink and is famed for its internationally wellknown brand name Coca-Cola. Coke sells about 400 drink brands around the globe, including four of the top five sellers right now. Coca Cola has great recognition and value around the globe which helps CCBPL sells beverages to the Pakistani market as well. 4. QUALITY OF PRODUCTS The product quality has improved due to upgraded quality of packaging and the ameliorated liquid in comparison to its competitors. 5. PRODUCT DISTRIBUTION NETWORK The products are regularly supplied to the dealers through proficient means of delivering and distribution which has given Coca-Cola Pakistan an added advantage. This has also increased the availability of products.

6. MARKET STRATEGY Coke has utilized aggressive marketing strategy. An evidence of this is that Coke has been able to increase its market share by 4% in the last year. 7. SOLID FINANCIAL PERFORMANCE Although the world is going through the time of recessions and many companies are facing a hard time but Coca Cola holds a solid financial position even with limited growth rate in the carbonated drinks industry. 8. PRODUCT DIVERSIFICATION

CCBPL has diversified and are involved in manufacturing of other products apart from carbonated drinks. These include water, juices, and energy drinks.

WEAKNESSES
1. CENTRALIZED DECISION MAKING The decision making process at CCBPL is highly centralized and the workers feel that there exists no proper authority existing in the firm and the non-management staff feels highly demotivated. 2. LESS AVAILABILITY The Coke product still hasnt been able to guarantee its availability to the extent of its biggest competitor Pepsi. 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. 3. TASTE Coca Cola as compared to Pepsi has a less sweetening taste. Pepsi is said to be more acceptable in the Pakistani market because of the being sweeter than Coke. This fact goes against Coca Cola and can be termed as one of its weaknesses. 4. HIERARCHICAL STRUCTURE The hierarchical structure of CCBPL has made a lot of hurdles for carrying out the business processes effectively and efficiently. For this reason, the organizations structure has underwent a lot of changes in recent times. An year before, the reporting lines for HR department were redefined and now the whole organization is expected to have the required changes to transform it into a line and staff organization. Such changes in terms of reporting lines, organizational structures, etc, in a short span of time can have negative effect on working of individuals.

Following are the Opportunities and threats of Coca Cola Beverages Pakistan Limited:

OPPORTUNITIES
1. NEW MARKETS We know that Coke came to Pakistan in 1996 and since then 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 devoid of its products especially in rural areas. For instance areas in Punjab where Pepsi has a very high availability and where Coke can increase its distribution includes Toba Tek Singh, Vehari, Lodhran, Mandi Bahauddin, Khushab, Layyah, etc. 2. GROWING BOTTLED WATER MARKET In Pakistan, bottled water consumption levels are actually among the lowest of all the regional markets. But due to the increase in awareness level of consumers regarding health consciousness, the consumption levels are on a rise. Hence this presents a great opportunity for growing Kinleys market share. 3. ACQUISITIONS OF SMALLER PLAYERS CCBPL also has the opportunity of acquiring small players that exists in the Pakistani market like RC Cola, Pak Cola, Shandy, etc.

4. AWARENESS OF HEALTH CONSCIOUSNESS Due to the increase in awareness of health consciousness people are demanding healthier and diet products. This gives CCBPL a chance to come up with new products and diversify their product lines as well.

THREATS
1. INTENSE COMPETITION

CCBPL faces intense competition from Pepsi Co. There is still a long way to go if Coca Cola is to come ahead of Pepsi in Pakistani market. 2. SLUGGISH GROWTH OF CARBONATED DRINKS Carbonated drinks industry worldwide is growing at a very sluggish rate as the markets are highly saturated. Hence companies are diversifying products. Nevertheless slow growth rate poses as a great threat to the functioning of CCBPL. 3. PREFERENCE OF NATURAL DRINKS The preference of natural drinks over aerated drinks is one of the threats being faced by Cokes operations and its sales especially in mango season. According to statistics during the mango season Coca-Colas sales are reduced by about 25-30%. The greatest affect is on the revenue from the rural areas where mango drinks take over. Hence such preference poses a great threat. 4. LOWER PURCHASING POWER Due to recession being faced in the Pakistani society, people have less disposable income that is their purchasing power has reduced to a certain extent which also may cause a reduction in unit sales of beverages of CCBPL

5. HIGHER INFLATION RATE Pakistan is facing high inflation rates in recent years. The high inflation rates eventually causes increase in products price and hence may lead to low sales volume due to the increase in prices. 6. NEW ENTRANTS

Although Coke holds a strong position in the Pakistani Market, still new entrants can come up and can exploit anti-Jewish and anti-war sentiments thus provoking nationalism and selling at low price eventually creating a threat for Coke in future. Hence Coke management has to look out for such threat from time to time. 7. TAXES IMPOSED BY GOVERNMENT Coca Cola is the second highest tax paying company in Pakistan and it pays 33% of its revenue annually as taxes. It pays as much as Rs. 2.97/bottle as tax hence putting Coca Cola under heavy tax imposition. Such tax policies are of great threat to the company as the Government tends to change tax rates every now and then.

Coca cola is one of the finest setups in beverage industry. Nearly every function or particular of coca cola is better by which company maintained its classy image, Ive noticed multiple noteworthy aspects which inspire me but there are always some ways to improve the performance or to reduce the risk of losing the standards.

Coca cola is a highest rated multinational that is why being a student I dont find myself in enough knowledge to critically highlight major flaws in companys operations but some recommendations I can make in interest of the company which can make it best from better.

PLAUSIBLE PROBLEMS:
My internship at CCBPL was rotated within 3 departments i.e. HR department, Finance Department & Marketing Department though Ive worked majorly in HR department as an intern hence, most problems relate to its practices. Ive divided them into following categories:
1. Internal Security

2. Cost optimization 3. Decision making 4. Lack of Office Space INTERNAL SECURITY:

a. There are some areas in building which are not in view of surveillance cameras

specifically major areas, which in my observation is major reason for companys direct or indirect loss.
b. Secondly, there is an issue of informational insecurity which is created when interns,

employees of external agencies dealing with Coca-Cola and external auditors are provided same room. Small cubical separations are not enough for privacy. Task of each individual has to be confidential and at same time it is indirectly apparent to those from whom it is kept confidential.
c. Thirdly, internal security problem is related with temp folder. It also contains companys

internal and highly confidential information but temp folders are accessible to outsourced staff as well. It may be misused. Hence, the IT staff of coca-cola has to work with this issue.

COST OPTIMIZATION:
a. First issue of cost optimization is of Payroll management. The pay roll system of Coca-

Cola is not standardized throughout Pakistan as ive observed that employees with same JDs/grade/ o designation are paid or compensated variedly. They are getting paid high in one region and less in another. b. Second issue which is of vital importance is of excess employees at call centers. A CocaCola beverage is a well known organization and may not need many queries regarding their products usage or any complaints. Too many call center agents are not necessary in this regard. CENTRALIZED DECISION MAKING: Centralized decision making is also one of the problems existing in CCBPL. Having a horizontal line of reporting is much more encouraged in todays world but CCBPL still has a vertical structure which not only gives the power to only a limited number of people to make decisions but it also makes the employees de-motivated. A huge gap exists between the lower level employees and the senior management due to this setup.

LACK OF OFFICE SPACE One of the biggest issues that CCBPL faces is lack of office space. Top executives have their own rooms. The senior management employees and rest of the staff belonging to each of the department sit in a single room, each having around 6-9 cabins. Hence it gives a very congested look to the office.

RECOMMENDATIONS:

SECURITY:
1. There should be surveillance cameras also inside the covered premises especially where

the outsiders are accommodated. Moreover the cameras should focus blind spots and over sensitive areas which are not focused now.
2. Privacy of data can be maintained by using one of following ways: a. Lotus mail or coke internal portal login and password should be allotted to employees

earlier, before starting their job so that privacy of temp is maintained.

b. Any new medium for sharing files should be developed. Especially the advanced

search engine idea of Coke Port 3.0 if implemented fast in CCBPL would add to the solutions of this problem.
c. Only some people could be allowed to access commonly shared files and specifically

for non-company staff a separate folder should be made which may only contain data relevant to their work.

COST OPTIMIZATION:
a. The first issue in cost optimization is of Payroll management. Payroll system should be

centralized at head office and standardized which could state fixed compensation standards across the country. An employee with same JD/ grade/ or designation should be given not similar but same pay and other benefits. b. The issue of excess employees at call centers can be handled by either laying off the employees or transferring the worthy agents to some other marketing positions in company depending upon their talent and abilities.

CENTRALIZED DECISION MAKING ISSUE: To deal with Centralized Decision Making issue, a hierarchical structure should be developed in such a way that facilitates the horizontal line of reporting. This would help employees in being self motivated and in making their decisions. Most importantly it would give a higher level of authority to the employees as compared to what they have now.

OFFICE SPACE SOLUTION: CCBPL has two options to deal with the issue regarding the office space. CCBPL can utilize the space more efficiently and construct a few departments near the parking area as the area is not used for any purpose. The other option can be to shift The Coca Cola Export Corporation (TCCEC) from the current location to sales center located in Kot Lakhpat. The reason is that in the current head office, both CCBPL and TCCEC (senior management) employees are in attendance. TCCEC has a fewer number of people as compared to CCBPL and hence they can be adjusted easily at the Sales Center thus creating more office space for CCBPL.

CONCLUSION:

I would like to conclude the report by giving an insight to my learning and experiences during the internship period. I spent 8 weeks at CCBPL for my internship and I consider those 8 weeks as the most important input towards my degree completion. My internship gave me the opportunity to work with one of the leading Multi National Companies, Coca Cola Beverages Pakistan Limited and to learn from one of the best professional teams in attendance. I worked in 3 Departments in CCBPL. My Supervisor was from HR/Admin Department. His designation company was of HR/IR Manager. Sr. Exec HR also supervised me for some time. My supervisors guided in every possible way about how to cope up with tough work at CCBPL which encouraged me to do tasks which I were not specialist at. During my stay at CCBPL, I learned how I can relate my academic qualification with professional work. This was because most of the tasks I performed were on behalf of my supervisor and he aided me to experience professionalism no less than himself. The most important thing that I have learnt is how student should incorporate himself in the working environment to explore his capabilities for the benefit of the organization as a whole and himself in particular. This really cleared my mind about how important an organizational culture is for an employee. The Job Rotation also helped me in exploring the works of two different teams and how they co-ordinate with each other. Apart from tasks assigned related to HRM I was also the tasks which were directly related to my field that is Finance and it helped me to explore the various Finance insights that organizations work on. For example: During my internship period I got to work on Aging reports of CocaColas customers, currency conversions, developing excel sheets for comparison of expenses over past few years etc. I came to know how the academic knowledge that Ive gathered throughout my BBA is practically applied in CCBPL. Large MNCs also have same implication of the concepts which I have been taught at university. All this gave me a broader view of how things are carried out in the corporate world. This experience just marks the start of my professional career and from here onwards I am just going to move forward.

BIBLIOGRAPHY

(n.d.). Retrieved from Coca Cola Company: http://www.thecocacolacompany.com/ourcompany/index.html