CASE STUDY

REPORT

On

It Is Good News Everywhere For Coco Cola..

Submitted By:

Odela Purnachander [RK1M71A11]

School of Computer Science & Engineering

In performing our Case study, we had to take the help and guideline of some
respected persons, who deserve our greatest gratitude. The completion of this
Case study gives us much Pleasure. We would like to show our gratitude Ms.
Mridul Mam, Human Resource Planning and Development Asst. Professor ,
Lovely Professional University for giving us a good guideline for Case study
throughout numerous consultations. We would also like to expand our deepest
gratitude to all those who have directly and indirectly guided us in writing this
assignment.

Many people, especially our classmates and team members itself, have made
valuable comment suggestions on this proposal which gave us an inspiration to
improve our Case study. We thank all the people for their help directly and
indirectly to complete our Case study.
Introduction

Recruitment is an essential and important part of an organization. Through the effective recruitment,
companies appoint skilled and experienced employees or candidates, who help companies to make
effective operations in the market and to achieve competitive advantages from the international
market. Supportable recruitment process also helps the companies to make effective culture in the
organizations, which is beneficial for organizational to make better operations and strategies in the
national as well as international market (Nankervis, Compton & Morrissey, 2009).

This paper analyses different types of information that needs to make informed human resources
decisions with the help of a unique examples of Coca-Cola. This paper also analyzes the companys
recruitment process and also provides recommendations for improvement. This paper also discusses
the companys labor relationship, training and diversity practices in order to access the HR policies. In
the end, this paper also communicates the organizations compensation policy.

About Coca-Cola Company

Coca-Cola is a leading beverage company in the world. Company deals in different types of
beverages such as soft drinks and juice. Company operates its business in more than 200 countries of
the world. Company has 146200 employees through out the world those serves 3500 beverages to the
customers. In the world, company also serves 1.8 billion customers per day that helps the company to
achieve competitive advantages in the international market. The Coca-Cola Company has more than
275 worldwide bottling partners, those works together for the refreshment of customers and to drive
the global success. Company has a strong portfolio of products, from diet and regular sparkling
products to still beverage. Company deals in fruit juice, fruit drinks, waters, sports and energy drinks,
teas, coffees, milk and soya based beverages (The Coca-Cola Company, 2012).

Companys mission statement is to refresh the world, inspire moments of optimism and happiness and
to create value and make a difference in the products that support company to attract customers in the
markets. Through the people of Coca-Cola, company tries to achieve its mission and vision that
support company to develop the profile of employees (The Coca-Cola Company, 2012).
SWOT ANALYSIS
Coca cola is a brand which is present in households, shops, hotels, offices, etc. You name it, and the
place would have heard of Coca cola. Coca cola has many products in its arsenal. Here is
the SWOT analysis of Coca cola.

Strengths in the SWOT of coca cola

1. Brand Equity Interbrand in 2011 awarded Coca cola with the highest brand equity award.
Coca cola with its vast global presence and unique brand identity is definitely one of the costliest
brands with the highest brand equity.
2. Company valuation One of the most valuable companies in the world, Coca cola is valued
around 79.2 billion dollars. This valuation includes the brand value, the numerous factories and
assets spread out across the world and the complete operations cost and profit of Coca cola.
3. Vast global presence Coca cola is present in 200 countries across the world. Chances are, any
country that you go to, you will find coca cola present in that market. This vast global presence
of coca cola has also contributed to the building of the mammoth brand name.
4. Largest market share There are only 2 Big competitors in the beverage segment Pepsiand
Coca cola. Out of these 2, coca cola is the clear winner and hence has the largest market share.
Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and Maaza are the
growth drivers for Coca Cola.
5. Fantastic marketing strategies Coca cola unlike Pepsi always tries to win peoples heart.
Where Pepsis target is continuously changing, and is targeted towards youngsters, Coca cola
targets people of all ages. The targeting is also done by celebrities who are well liked for
example Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc
6. Customer Loyalty With such strong products, it is natural that Coca cola has a lot of customer
loyalty. The products mentioned above like Coca cola and Fanta have a huge fan following.
People will prefer these soft drinks over others. Because of the good taste of Coca cola, finding
substitutes becomes difficult for the customer.
7. Distribution network Coca cola has the largest distribution network because of the demand in
the market for its products. On the other hand, due to this successful distribution network, Coca
cola has been able to command such a high market presence.

Weaknesses in the SWOT of coca cola

1. Competition with Pepsi Pepsi is a thorn in the flesh for Coca cola. Coca cola would have been
the clear market leader had it not been for Pepsi. The competition in these two brands is immense
and we dont think Pepsi will give up so easily.
2. Product Diversification is low Where Pepsi has made a smart move and diversified into the
snacks segment with products like Lays and Kurkure, Coca cola is missing from that segment.
The segment is also a good revenue driver for Pepsi and had Coca cola been present in this
segment, these products would have been an additional revenue driver for the company.
3. Absence in health beverages If you watch the news, you would know that obesity is a major
problem affecting people nowadays. The business environment is changing and people are
taking measures to ensure that they are not obese. Carbonated beverages are one of the major
reasons for fat intake and Coca cola is the largest manufacturer of Carbonated beverages. The
inference is that the consumption of beverages in developed countries might go down as people
will prefer a healthy alternative.
 4. Water management Coca cola has faced flak in the past due to its water management issues.
Several groups have raised lawsuits in the name of Coca cola because of their vastconsumption
of water even in water scarce regions. At the same time, people have also blamed Coca cola for
mixing pesticides in the water to clear contaminants. Thus water management needs to be
better for Coca cola.

Opportunities in the SWOT of coca cola

1. Diversification Diversification in the health and food business will improve the offerings of
Coca cola to their customers. This will also ensure that they get better revenue from existing
customers by cross selling their products. The supply chain which is distributing their beverages
can also distribute these snacks thereby sharing the load of Supply chain costs.
2. Developing nations Although developed nations have a high presence of Coca cola, these
countries are slowly moving towards healthy beverages. However developing countries are still
being introduced to the delight of carbonated drinks and soft drinks. Countries like India which
are developing and have a hot summer, find the consumption of cold drinks almost doubled
during summers. Thus the higher consumption in developing environments can be a
good opportunity to capitalize for Coca cola.
3. Packaged drinking water With hygiene becoming a major factor in the consumption of water,
Packaged drinking water has found its way into peoples mind. Coca cola has a presence in the
packed drinking water segment though Kinley. Although Kinleys expansion is slow as of now,
Kinley has a huge potential of expansion. Thus Coca cola as a company should focus on the
expansion of Kinley as a brand and take it up to Bisleri s level of trust.
4. Supply chain improvement Supply chain can be a major cost sink hole with the transportation
costs always rising. Coca colas complete business is based on transportation and distribution.
There will always be possible improvements in this area. Thus Coca cola should keep strict watch
on its Supply chain and keep improving to bring the cost down.
5. Market the lesser selling products In the product portfolio of Coca cola, there are several
products which have not found acceptance in the market. Coca Cola needs to concentrate on the
marketing of these products as well. It is understood that Coca cola has made several expenses
to launch these products. Thus, the marketing and subsequent rise of sale of these products will
help revenue of Coca cola.

Threats in the SWOT of coca cola

1. Raw material sourcing Water is the only threat to Coca cola. The weakness of Coca cola was
the suspected use of pesticides or vast consumption of water. However, the threat here is that
water scarcity is on the rise. With the climate changing, and regions of various countries facing
scarcity of water, sooner or later someone might raise fingers on beverage companies. Thus,
Water sourcing is an axe which can fall anytime on the head of Coca cola. If water is limited or
rationed, Coca cola can experience a major downfall in their revenue and capacity of distribution.
The same can affect its arch rival Pepsi as well.
2. Indirect competitors Coffee chains like Starbucks, Caf coffee day, Costa coffee are on the
rise. These chains offer a healthy competition to Coca colas carbonated drinks. They might not
be a big competition for Coke, but they do give a dent to its beverage market. Similarly, health
drinks like Real and Tropicana as well as energy drinks like Red bull and Gatorade are stealing
away the market share indirectly.
Human Resource Management practices at Coca Cola:

Creating an environment of learning and development:

There are a few things that are critical to the motivation of staff. Apart from good salaries and
recognition, it is essential to keep them motivated using other means too. The first thing is to create an
environment of trust and respect. Coca Cola has made it a priority that its employees are treated with
respect and the organization provides them with a rewarding work life and helps them develop. It has
created an environment where its employees can excel in performance, develop the skills for
improvement and move continuously towards their career goals.

A learning environment is just as essential for employee development and motivation as is good
salary. Br providing the employees with a learning environment, coca cola ensures that they receive
continuous learning and find continuous growth in their jobs. It ensures that all the people who are
working for it have the resources that enable them to learn and build their careers. However, learning
is not possible without fun and Coca Cola ensures that its employees also get the necessary fun while
working. The focus is to make Coca Cola a great place to work where people can achieve their full
potential.

Training and education:

Coca Cola has focused on providing its associates with the knowledge and skills they need to achieve
their hundred percent. It has showed its commitment by providing its people at all levels with
education and development programs that enable their growth. It established its own Coca Cola
University (CCU) which provides various types of courses through classrooms, e-learning, and field
training that can help its associates with personal and professional development both. There are
several areas or competencies that are a included in Coca Colas curriculum. CCUs learning
portfolio focuses on leadership; marketing; human rights; ethics and compliance; diversity;
sustainability; finance; and other competencies. We offer thousands of courses to associates through
CCU. In 2009, more than 27,000 associates participated in 1,720 CCU classroom sessions worldwide,
and 39,100 associates participated in e-learning courses.

Another important step that Coca Cola has taken to encourage its associates is to provide them with
reimbursement to help them pursue higher level education. Associates with graduate or undergraduate
level education are provided various levels of reimbursement to receive higher education at accredited
colleges and institutions. Apart from it, the associates are allowed to learn from other e-learning
courses beyond the CCU. They can also participate in external training programs and conferences that
improve their skills and abilities. For attracting and retaining he best, Coca Cola has continued to
invest in employee development programs with emphasis on employee development plans, internal
talent management, leadership development for managers and employee performance management.
Employee engagement:

Employee engagement is an important factor behind employee motivation. To ensure that employees
do not feel left out or frustrated companies must use employee engagement programs that make them
feel valued and included. The success of Coca Cola also depends on how committed and motivated its
employees are. For this purpose the company has used several programs that keep the employees
engaged. In this regard it also holds regular dialogues with its employees as well as organizes
employee surveys and representative groups.

It also measures employee engagement and their satisfaction with their work lives regularly. Coca
Cola uses exchange programs where the employees of one nation are sent to another to learn and
derive cultural insights. Such programs can be key to employee satisfaction. However, Coca Cola also
employs other methods of employee engagement and motivation. In Great Britain its employees are
provided with discounted gym memberships, free exercises classes, free coca cola drinks and fruit, a
restaurant that serves healthy food options, flexible working schedule and other health and personal
welfare related benefits.

Payments and Rewards:

Payments and rewards have become increasingly important to keeping the employees happy. It is
crucial to pay the employees fairly if a company wishes to attract and retain only the best. Coca Cola
offers competitive pay and motivating benefits to its employees. Its compensation packages and
benefits compare with the other best employers in the world. A number of elements are considered to
develop a satisfying package for its employees. Apart from the financial compensation, pensions,
healthcare and holidays are also considered an important part of the employee compensation. Coca
Cola ensures that its reward programs are benchmarked regularly against a group of peers that include
key players in local and global markets.

Performance management:

Performance management is also a key area requiring focus if a company wants its employees to
perform at their best. Discussions and feedback play a key role in employee performance management
and ensure that the employees are aware of their performance goals and that their personal and
organizational goals are aligned. Performance management also helps at identifying gaps in skills and
fill them with training. At Coca Cola the employees are encouraged to seek training through its annual
performance review system. The performance review system of Coca Cola includes the mid-year and
year end career discussions between the associates and the managers. It provides the associates with
an opportunity to assess their annual performance against the set goals and objectives. These face to
face discussions allow the managers and associates to discuss training and development. It also
enables them to outline a plan for training and enrichment. After that proper training is provided to
the associates based on the review. This system ensures a regular cycle of discussions and feedback
which recognizes any kinds of gaps and enables their fulfilment.
Diversity and Inclusion:

Coca Cola is on a global diversity mission. It recognizes the importance of diversity which is at the
core of its business. In its diversity mission it aims to mirror the rich diversity of the global
marketplace. Its global team is rich in diversity which is made up of associates from diverse
backgrounds that possess diverse talents. Such kind of diversity fosters performance as people with
diverse talents generate diverse ideas. Several teams globally are dedicated to strengthening the
diversity practices at Coca Cola. Diversity is not seen just as a philosophy but also as a core and
integral part of the organizations identity. After all the long term future of any global company
depends on its ability to operate in a multicultural world and embrace ideas from diverse
backgrounds.

However, apart from diversity, inclusion and employee empowerment are valued at Coca Cola. Its
associates are also a part of its diversity program and participate in it through formal and informal
methods. Coca Cola remains committed to the creation of an environment where every employee
feels included and is provided an equal chance of growth and development. Its employment policies
and practices are developed to ensure that employees have a free and fair environment to work in.
There are policies in place that ensure non-discrimination as well as equal opportunity for all. It
ensures no discrimination on the basis of age, sex, religion, place of origin or any other basis.
Moreover, to ensure that the employees find an open environment where they can freely talk about
innovative ideas and can communicate openly on various issues.

Here are some Mistakes and learnings of Coca-Cola had undergone in past:

Globalisation holds the Key

Deligate , Empower and Be Patient

Soften that MNC Arrogance

Engage Beyond Business

As HR Manager , what role do you carve for yourself in making Coca Cola Number 1 Cola
Company in India?

The answer lies in 3 As and 3 Ps

1. Affordability: The first A focused on product pricing . Coca Cola launched a 200 ml bottle for
just Rs.5

2. Acceptability: The advertisement with the tag line - 'Thanda Matlab Coca-Cola '.

3. Availability: The company instead opted for a hub and spoke distribution system . Under the hub
and spoke distribution system, stock was transported from the bottling plants to hubs and then from
hubs, the stock was transported to spokes which were situated in small towns.

1. Price to Value: It means the consumers are not only can afford to buy coca-cola, but also can get
benefits over their gives from coca-cola products.

2. Pervasiveness: It means that make sure the consumers can buy coca-cola products at everywhere at
anytime. You can see Coca-Cola in the any corner.

3. Preference: It means that try to make the consumers not only like and accept coca-cola products,
but also be partial to the coca-cola brands. Make sure Coca-Cola is their first choice.
Conclusion

From the above discussion, it can be conclude by experts that Coca-Cola has an effective recruitment
process that support employees to identify the job description and to understand about the companys
operations in the national and international market. To make informed their human resources decision,
company collect the information of market trends and tastes and preferences of customers. It helps the
company to make supportable products in the market and to achieve competitive advantages.
Company has stronger relationship with the labor that helps in providing training and creating
diversity practices in the market.

It can also be concluded that the compensation policy provides the benefits to the employees that
support company in making multi culture environment.

References:

https://books.google.co.in/books?id=f69AwAAQBAJ&pg=PT194&source=gbs_toc_r&cad=4
#v=onepage&q&f=false
http://www.coca-colacompany.com/stories/coke-lore-new-coke
http://www.icmrindia.org/free%20resources/casestudies/Coca%20Cola%20India%20Thirst%
20for%20the%20Rural%20Market1.htm