1: EXECUTIVE SUMMARY

The objective of doing this project lies in analysis the discount schemes and to
know about the cash inflow and the cash outflow and to calculate the Cash flow
template.

Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates
and syrups, used to produce nearly 400 beverage brands. Coca-Cola was first
introduced by John Pemberton in the year 1886 in Atlanta, Georgia when he
concocted caramel-colored syrup in a three-legged brass kettle in his backyard.
Water was teamed with the new syrup producing a drink that was proclaimed
“delicious and refreshing”, a theme that continues to echo today wherever Coca-
Cola is enjoyed. 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. Coca-Cola was the leading soft drink brand in India until 1977, when it
left rather than reveals its formula to the government and operations of foreign
companies in India. In the new liberalized and deregulated environment in 1993,
Coca-Cola made its re-entry into India through its 100% owned subsidiary,
HCCBPL, the Indian bottling arm of the Coca-Cola Company. Due to the
shortage of time it was not possible to do the analyzing of the cash flow.

There are different routes through which the discounts are provided by the
company and to analyses the quantity which is given by the coke to the
distributor and the quantity given by the distributor to the HVO/FAT agents of
the year 2010 and to check the flow of the Money. It deals with calculating the
total cash that company has to pay after calculating the discount and to check

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whether the bill that has to be claimed on Retailer name is correct or not.
Understanding Cash Flow template and to know what items comes under the
cash outflow and cash inflow Accounting to it do the prediction for next month
and how to calculate the amount the actual month.

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2:INTRODUCTION

Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates
and syrups, used to produce nearly 400 beverage brands. It sells beverage
concentrate and syrups to bottling and canning operators, distributors, fountain
retailer and fountain wholesalers. The company’s beverage products comprises
of bottled and canned soft drink as well as concentrates, syrups and not-ready-
to-drink power product. In addition to this, it also produce and market sports
drinks. Tea and coffee. The Coca-Cola Company began building its global
network in the 1920s. Now operating in more than 20 counties and producing
nearly 400 brands, the Coca-Cola system has successfully applied a sample
formula on a global scale. “Provide a moment of refreshment for a small amount
of money- a billion times a day.”

Cash flow is the movement of cash into or out of a business, project, or financial
product. It is usually measured during a specified, finite period of time
measurement of cash flow can be used.

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Objectives of cash flow

 To determine a project’s rate of return or value. The time of cash flows

into and out project are used as inputs in financial models such as internal
rate of return, and net present value
 To determine problems with a business’s liquidity
 Cash flow can be used to evaluate the ‘quality’ of Income generated by
accrual accounting.
 To evaluate the risks within a financial product E. g. matching cash
requirements, evaluating default risk, re-investment requirements, etc.

Discount Analysis:

 Direct route:
In direct route, the bottling unit or the bottler partner has direct control
over the activities of sales, delivery, and merchanding and local account
management at the store level.
 Indirect route:
In indirect route, an organization which is not part of the Coca-Cola
system has control on one or more of the distribution elements
(Sales, delivery, merchandising and local account management.)

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3: RESEARCH METHODOLOGY

3.1: Primary Object

 To know the different routes through which the company transfer the
discount the HVO/ agent/ Retailer
 To check the discount leakage.
 To understand the Cash Flow Template.
 To gain information about the Cash Inflow and Cash Outflow.
 To calculate the Cash Flow Template.

3.2: Research Design:

Discount Analysis:

 Calculating the percentage volume then targeting the personal with the
percentage volume greater than 25%.
 Visiting than distributor and the HVO/FAT agent which come under his
control.
 Checking the bill and ensuring that the flow of discount is correct.

Cash Flow Management:

 Gaining knowledge about items which comes under different categories.

 Calculating the cash flow template with the help of actual cash flow
template of the previous month.

3.3: Sample Design:

Secondary Data:

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  Volume taken from the company.
 Bills taken from Distributor/HVO/FAT agent.
 Template taken from the company.

3.4: Scope of study:

This study give the view the company can go far the:

 Direct order from the FAT agent and can directly supply to HVA/FAT
agent.

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 4.INDUSTRY PROFILE

4.1: Industry Analysis: Soft Drinks

Barbara Murray explain the soft drink industry by stating, “For year the story in
the non-alcoholic sector cantered on the power struggle between Coke and
Pepsi. But as the pop fight has topped out, the industry’s giants have begun
relying on new product flavors and looking to noncarbonated beverages for
growth.” In order to fully understand the soft drink industry, the following
should be considered: the dominant economic factors, five competitive sources,
industry trends, and the industry’s key factors. Based on analyses of industry,
specific recommendation for competitors can then be created.

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Global Soft drinks Market Segmentation: Percentage Share, by Value.2014

Category % Share

Carbonates 46.80%
Bottled water 18.40%
Juices 14.90%
RTD tea & coffee 8.50%
Functional drinks 7.60%
Concentrates 3.90%

Total 100.1%

Source Data monitor DATAMONITOR

4.2: Growth chart- past an projection for future

Dominant Economic Factors

Market size, growth rate over profitability are three economic indicators that can
be used to evaluate the soft drink industry. The market size of this industry has
been changing. Soft drink consumption has a market shares of 46.8% within the
non-alcoholic drink industry. The growth rate has been recently criticized due to
the U.S market saturation of soft drink. Data monitor stated, “Looking ahead,
despite solid growth in consumption, the global soft drink market is expected to
slightly decelerate, reflecting stagnation of market prices.” The changes is
attributed to the over growing sector of the non-alcoholic industry including tea
and coffee (11.8%) and bottled water (9.3%). Sports drink and energy drink are

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also expected to increase in growth as competitors start adopting new product
line.

TABLE

Global Soft Drinks Market Volume: Lts. Million. 2011-2015

Year Litter Million % Growth
2012 284,971.7
2013 296,389.3 4.00%
2014 305,486.1 3.10%
2015 316,367.2 3.50%
2016 325,367.2 3.00%
3.4%
Source: Data monitor DATAMONITOR

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The geographic scope of the competitive rivalry explains some of the economic
features found in the soft drink industry. According to Barbara Murry, “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%.” Aside from these major players,
smaller companies such as Cost Corporation National Beverage Company make
up the remaining market share.

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4.3: Beverage Industry In India: A Brief Insight

In India, beverage form an important part of the lives of people. It is an industry,

in which the players constantly innovate, in order to come up better products to
gain more consumer and satisfy the exiting consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-carbonated

Cola Non-Cola Non-Cola

The beverage industry is vast and there various ways of segmenting it, so as to
cater the right product to the right persons. The different ways of segmenting it
are as follows:

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  Alcoholic, non-alcoholic and sports beverage
 Natural and Synthetic beverage
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverage for kids, for adults and for senior
citizen.
 Segmentation based on the amount of consumption i.e. high level of
consumption and low level of consumption.

If the behavioral pattern of consumer in India are closely noticed, it could be

observed that consumer perceive beverage in two different ways i.e. beverage
are luxury and that beverage have to be consumed occasionally. These two
perceptions are the biggest challenges faced by the beverage industry. In order
to leverage industry, it is important to address this issue so as to encourage
consumption as well as and to make the industry more affordable.

Four storage strategic elements to increase consumption of the products of the

beverage industry in India are.

 The quality and consistency of beverage need to be enhanced so that

consumer are satisfied and they enjoy consuming beverage.
 The credibility and trust needs to be built so that there is very strong and
safe feeling that the consumer have while consuming the beverage.
 Consumer education is must to bring out benefits of beverage
consumption whether in terms of health, taste, relaxation,
 Stimulation, refreshment, well-being or prestige relevant to the category.
 Communication should be relevant and trendy so that consumer are able
to find an appeal to go out, purchase and consume.

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The beverage market have still achieve greater production and also a wider
spread of distribution. It is important to look at the entire beverage market, as a
big opportunity, for brand and sales growth in turn to add up to the overall
growth of the food and the beverage industry in the economy.

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5. COMPANY PROFILE

5.1 About of Coca Cola

Dr. John Smith Pemberton(Founder of Coca Cola Com.)

Coca-Cola was the leading soft drink brand until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required
under the Foreign Regulation act (FERA) which governed the operations of
foreign companies in India. Coca-Cola re-entered the Indian market on 26th
October 1993 after a gap of 16 years, with its lunch in Agra. An agreement with
the Parle Group gave the Company instant ownership of the top soft drink
brands of the nation. With access to 53 of Parle’s plants and a well set bottling
network, an excellent base for rapid introduction of Company’s international
brands was formed. The Coca-Cola Company acquired soft drink brands like
Thumps Up, Gold spot, Limca, Maaza, which were floated by Parle, as these
products had achieved a strong consumer base and formed a strong brand image
in India market during the re-entry of Coca-Cola in 1993. Thus these products
became a part of range of the products of the V Company.

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In the new liberalized and deregulated environment in 1993, Coca-Cola made its
re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian
bottling arm of the Coca-Cola Company. However, this was based on numerous
commitments and stipulations which the Company agreed to implement In due
course. One such major commitment was that, the Hindustan Coca-Cola
Holdings would divest 49% of its shareholder in favor of resident shareholders
by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60

manufacturing locations, 27 company Owned Bottling Operations (COBO), 17
Franchisee Owned Bottling operations (FOBO) and a network of 29 Contract
Packers that facilitate the manufacture process of a range of products for the
company. It has supporting distribution network consisting 7,00,000 retail
outlets and 8000 distributors. Almost all goods and services required to cater to
the Indian market are made locally, with help of technology and skill within the
Company. The complexity of the Indian market is reflected in the distribution
fleet which includes different modes of distribution, from 10-tonne trucks to
open-bay three wheelers that can navigate through narrow alleyways of Indian
cities and trademarked tricycles and pushcarts.

“Think local, act local”. Is the mantra that Coca-Cola follows, with punch line
like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural
India. This resulted in a 37% growth rate in rural India visa-vie 24% growth
seen in urban India. Between 2001 and 2003, the per capital consumption of
cold drinks doubled due to the launch of the new packaging of 200 ml
Returnable Glass Bottles (RGB) which were made available at price of Rs. 5 per
bottle. This new market accounted for over 80% of India’s new Coca-Cola
drinks. At Coca-Cola, they have a long standing belief that everyone who
touches their business should benefit, thereby including them to uphold these

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values, enabling the Company to achieve success, recognition and loyalty
worldwide.

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5.2 INTRODUCTION (Plant Wada)

Hindustan Coca- Cola

Beverages Pvt. Ltd.

The coca cola beverages PVT LTD. Growth has been one of a sure study with
the luckiest and with its present caption it is emerging as a beverages having
high market share in the organized current operation and future outlook coca
cola beverages PVT LTD. And other beverages product to international internal
factors viz, Australia, Middle East, South Africa,Newzeland and Srilanka. Every
effort is being made to establish clock as a household name in international
market.

 HCCB PVT LTD. in India producing delay drafted fruits bar based in an
innovate highest quality standard and hygiene factors at canning and
packing.
 Production setup HCCB PVT LTD. Products its beverages with a main
faction at Atlanta and with subsidiary unit arrangements located at in
India
 Office at Gurgaon. Some plants in Pune, Nashik, Wada (Kudus) in Thane
district itself.
 Coke is one of the largest industry in country. HCCB has also developed
a unique process for production.
 The employees should not leave the premises of the company without
written permission.

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  Safety and rules of safety all the employees should follow the safety rules
while at work wear & use the safety equipment’s.
 They use the paper cap.
 They use the dress provided from company.
 They use safety shoes when they going in plant. Without safety shoes and
paper cap they not allow to enter in the plant.

Discipline all the employees to follow the Housekeeping and cleanliness. It is

the responsibility of each employees of the company to follow:

 Good housekeeping & cleanliness rule of the company in and help

maintaining good atmosphere.
 HCCB PVT LTD has built up a reputation of excellence.
 There is 2 recognized workers union.
 1 Permanent labor sthanik kamgar sena.
 The industrial relations are maintained peace fully. Competitors In the
field the major competitors of our country.

HCCB PVT LTD. Kudus. Man Power No. of

 145 Executives and team leaders

 17 managers
 90 fixed term employees.
 352 permanent employees.
 Average of contract labour 475.

Welfare

 They provide canteen facility in substitute rate.

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  Transportation facility.
 Reward and recognition program for employee.
 1 pair of safety shoes.
 1 raincoat for 2 years.
 Employee engagement activity such as – GUDIPADVA, HOLY,
NAVRATRI, DASARA PUJA, SATYANARAYAN PUJA, KIDS
PICNIC endorse for employee children.

TIME OFFICE ADMINISTRATION

 Some important point to remember computerized attendances recording

system. Attendance recording system is working on computer.
 Thumb impression attendance at the joining of company.
 Employees had to record their attendance by inserting their punch card in
the punching machine at their entering and leaving the company art time
office.
 Total 5 machine are use for the attendance. There is 3 machine for in time
and 2 machine for out time.
 They employees should not leave the premises of the company without
written permission.
 Company has 3 shift operation.
 Shifting timing 1st shift 7.00 am to 3.00 pm indicate A.
 2nd shift 3.00pm to 11.00 pm they indicate that B.
 3rd shift 11.00 pm to 7.00 am they indicate that C.
 General shift 8.30 am to 5.30 pm they indicate that G.
 Interval for rest or meal half an hour.
 Wage period monthly.
 Date of payment of date 7.

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  Sunday weekly off.
 12 paid holidays.
 8 CL(casual leave),10 SF, 21OE.
 They provide on job training, off job training.
 Plant visit.

MANPOWER AS PER SHIFT

 RGB-1 13 people as per shift .

 RGB-2 13 people as per shift .
 Sugar dumping 10.
 Tetra pack line 5.
 Maintenance depends upon as per requirement.
 RGB maza 14 people.
 PET juice (hot fill line) 12 people per shift.
 PET -1,5 people.
 PET-2,2 people
 Retail water 7 per shift.
 Jar line 9 per shift.

HIRARCHY OF HR DEPARTMENT

 Shrikant Gore– factory Hr. manger.

 Kamlesh – team leader.
 Executives – Rajan Khirade, Manisha Pillai,
 Vasant Shinde (security officer).

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LIST OF CONTRACTORS

 M\S Dhananjay Enterprises- 275 labours in contract.

 Pooja Enterprises valley-150.
 Raj labour contractor -90.
 Hi tech coastland -18.
 M\S Raj catering services-18.
 M\S durecon engineers – 18.

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Various department of the HCCB PVT LTD has CONSECTORS as its
various departments like:

RAW MATERIAL DEPARTMENT:

The company has raw material department which take care of provision of raw
material department for the manufacture of the product and also availability of
raw materials.

PRODUCTION DEPARTMENT:

In this production department the company look after the production process this
further divided into department viz bottling line, juice line, wrapping line,
packing line. In this department the company produces the more verities of
products. Wrapping department this department deals with the packing of the
final products. The company has automated the wrapping section.

QULITY CONTROLL DEPARTMENT:

This department looks after the quality of the product which has well equipped
sate of the art research & development laboratory to check the quality of the
product Workshop it has own well equipped workshop to with the
machinery.This department undertakes the repairs and snags besides
maintenance.

HR DEPARTMENT:

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The personal department deals with the administrative and welfare of the
workers and also maintenance of the attendance of the company.

MARKETING DEPARTMENT:

It deals with the entire commercial and promotional activities like advertising,
marketing research and various strategies in order to popularized products
developed in the company.

The product profile of HCCB PVTLTD kudus: Maza, Nimbu Fresh, Limca,
memos, Sprite, Soda, Kenly water, Fanta.

FINANCE DEPARTMENT

Departments:

 RMPM(Raw material &packaging material)

 WTP(Water treatment plant)
 CSD SYRUP(Carbonated Soft Drinks)
 MAAZA SYRUP
 RGB LINE(Returnable glass bottle)
 PET LINE(Poly Ethylene Terephalate)
 TETRAPACK

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COMPANY PROFILE

The world is changing all around us .To continue to thrive as a business over the
next ten year or beyond , we must look ahead , understand the trend and forces
that will shape our business in the future and move swiftly to prepare for what’s
to come. We must get ready for tomorrow today. That’s our 2020 vision in all
about. It create a long term destination for our business and provides us with a
”Road map” for winning together with our bottling with our bottling partners.

5.3 OUR WINNING CULTURE

Our Winning Culture defines the attributes and behaviors that will be required of
us to make our 2020 vision a reality.

Our 2020 vision is a catalyst for us to embark on the journey from Good to
Great in the process of delivering extraordinary business results year after year –

Achieving a sustainable growth and being the employer choice in an every

market we operate where people create extraordinary result every day. And what
support us in the journey in our moto “culture comes frusta”.

5.4 WORKING AS A GLOBAL TEAM

Our people are the face our brands. They are talented and passionate and they
take immense pride in being a part of this company with a global scale. The coca
cola system in India directly employs over 25,000 people including those on
contract. The system has create indirect employment for more than 1,50,000
system We strive to ensure that our work environment is safe and inclusive and
that there are plentiful opportunity for our people in India and across the world .

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6. COCA COLA SYSTEM WORLDWIDE AND IN INDIA

The core of business in India, as in the rest of the world in our production and
distribution network. Which we call the “coca cola system”. Global the coca
cola system includes our company and more than 300bottling partners. The coca
cola company manufactures and sells concentrate and beverage bases.Our
authorized bottlers combine our concentrate or beverage bases as the case may
be with sweetener(depending on the product),water or carbonated water to
produce finished beverages. These finished beverages are packed in authorized
containers bearing our trademark such as cans, refillable glass bottles, non-
refillable PETbottles and tetra packs and are then sold to wholesalers and
retailers. In India additionally the company also sells certainpowdered beverage
mixes such as vetting.

Our beverage reach ultimate consumers through our customers: the grocer’s
small retailers, hypermarkets,restaurants, convenience stores and,millions of
other business that are the final point of distribution in the coca cola system.
What truly defines the coca cola system and indeed what makes it unique among
business, is our ability to create value for our customers and consumers.

In India , the coca cola system comprises of a whole owned subsidiary of The
coca cola company namely coca cola India PVT LTD Which manufactures and
sells concentrate and beverage bases and powder beverage mixes , a company
owned bottlingentity, namely, Hindustan coca cola Beverages PVT LTD;
thirteen licensed bottlingpartners of the coca cola company , who are authorized
to prepare package, sell and distribution beverages under certain specified
trademarks of the coca cola company; and an extensive distribution system
comprising of our customers, distributors and retailers. Coca cola India PVT
LTD sells concentrate and beverage bases to authorized Boteler’s who use these
to produce our portfolio of beverages. These authorized bottlers independently
developed local markets and distributes beverages to grocers, small retailers,
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supermarkets, restaurants and numerous other business, In turn these customers
make our beverages available to consumers.

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6.1 PRODUCTS:

Coca Cola :

The coca cola is the world’sfavorite drinks in beginning in1886.it is available

packaging material like glass bottle, PET container, can. Glass bottle are
available in 200 ml & 300 ml size. PET bottle are available are in commercial
size like 500 ml, 1.5 liter, 2liter, 2.5liter. Can is available in 330 ml size &
fountains are available in various size.

Thums Up :

It is most popular drink in India. It has strong cola taste &made for person with
existing personality. It has strong, fizzy taste.

Fanta:

It is identified as fun catalyst. Fanta stands fir its vibrant color, tempting taste
and tingling bubbles that just uplift feeling but also helps free spirit thus
encouraging one to indulge in the moment.

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Sprite :

Worldwide sprite ranked as the no 4th soft drink & sold in more than 190
countries .in India sprite was launched in year 1999 & today it has grown to be
one fast growing soft drinks, leading the clear lime categories. Today sprite is
perceived as “Youth Icon”. Sprite has stood for a straight forward and honest
attitude.it is available in glass, PET containers,can and fountains of various size.

Limca :

“Lime ‘n’ lemoni limca” can cast a tangy refreshing spell on anyone anywhere.
The limca word is derived from ‘ nimbu’ +’jaisa’ hence “lime sa”. It is remained
in challenge as the no 1 sparkling drink in the cloudy segment. The success
formula is sharp and lemoni bite combined with single minded proposition of
the brand as the provider of freshness.

MAAZA:

Maaza has launched in 1976. It is a drink that offered the same real taste of fruit
juices and is available throughout the year. Maaza currently dominated the fruit
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drink category. Consumers maaza as whole some natural fun drink which
delivers the real experience of fruit.

Minute Maid Pulpy Orange(MMPO):

The Florida food corporation developed orange juices powder. The company
developed a process that eliminated 80% of the water in orange juice, forming
frozen concentrates that when reconstituted created orange juice.

Minute Maid Nimbu Fresh (MMNF):

Recently coca cola launched new fruit drink Minute maid nimbu fresh which is
made from lemon juice concentrate. Its taste like a homemade nimbu sharbat. It
is made without addition of any preservative. Available in PET bottles.

Minute Maid Mango(MMM):

Coco cola beverages srilanka has launched Minute maid mango its latest
innovation under the coca cola company’s international Minute juice brand

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Minute maid mango is a mango flavored juice drink offer “an unmatched taste
experience to consumer due to the presence of real mango pulp, offering a tangy
taste and natural goodness.”

Kinley Soda :

It is one of the best sparkling carbonated soft drink without any added flavor. It
is available in glass bottles and also in PET bottles.

Kinely Water :

It is packaged drinking water .this water is treated through 5 step process UV

treatment, Reverse osmosis, ozonisation, carbon filtration and stand filtration.
So it has trust drink i.e. “Bund Bund per vishvas”

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6.2: PRODUCT SAFETY AND QUALITY

The global nature of our business requires that the coca cola system uphold to
highest standard and process for ensuring consistent product safety and quality
from our concentrate production to our bottling and product delivery. We
measure a key product and package quality attribute to ensure our beverage
products in the market place meet THE coca cola company requirements and
consumer exception. Consistency and readability are critical to our products
quality and to meeting global regulatory requirement and the coca cola company
standard.

All our products are manufactured in sites independently certified according to

internationally recognize food safety management standard coca cola India has
compiled with all law and regulationconcerning the provision and use of our
products and we take measure to ensure that compliance in the future too.

Our food safety commitment includes the following focus areas :

 Risk Assessment and mitigation: To implement food safety programs in

manufacturing warehousing and distribution facilities.
 Suppliers management: to ensure safety of raw materials, ingredient and
packing.
 Regulatory compliance: to guarantee consist execution of our policies
from our suppliers our co packers, our customers, and our bottling and
distribution partners.

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6.3VISION, MISSOIN & VALUE

Vision:

PEOPLE

PORTFOLIO PROFIT
SUSTAINAB
LE
GROWTH

PARTNER PLANET

A) People:-

We inspire to be great workplace. Where people are inspired to be the best.

B) Profit:-

We maximize return for our shareholders while being mindful of our

overall responsibilities.

C) Planet:-

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We act as responsible global citizen. Focused on our environmental effort &
making a different whenever we engage.

D) Partner:-

We actively nurture a winning network of beverage & bottling partners.

Building mutual loyalty.

E) Portfolio:-

We bring global marketplace beverage brands that anticipated & satisfy people
desired & needs.

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Values

Our value serve as a compass for our actions and describe how are we behave in
the world.

Leadership: The courage to shape a better future.

Collaboration: Leverage collective genius.

Integrity: Be real

Accountability: If it is be, it’s up to me.

Passion: Committed in heart and mind.

Diversity: As inclusive as our brands

Quality:What we do, we do well

Mission

To build a consumer –drives, customer-focused, profitable, sustainable and

socially responsible business in India.

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6.4 SWOT ANALYSIS OF COCA COLA

STRENTH:

1. World’s largest market share in beverage:

Coca-Cola hold the largest beverage market share in the world (about
40%)

2. Strong marketing and advertising:

Coca-Cola advertising expenses accounted for more than $5 billion in
2014 and increased forms sales and brand recognition.

3. Most extensive beverages distribution channel:

Coca Cola services more than 200 countries and more than 1.7 billion
servings a day.

4. Customer loyalty:
The firm enjoys having one of the most loyal consumer group.

5. Bargaining power over suppliers:

The coca cola company is largest beverage producer in the world and
exert significant power over its suppliers to receive the lowest price
available from them.

6. Corporate social responsibility (CSR):

Coca cola is increasing focusing on programs such as recycling. Energy
conservation change. Achieve active healthy living water stewardship and
many others which boots company social image and results completive
advantages over competitors.

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WEAKNESS:

1. Significant focus on carbonated drinks :

The business I s still focusing on selling Coke, Fanta, Sprite and other
carbonated drink. This strategy works in short term as consumption of
carbonated drinks will grow in emerging economic but it will prove weak
is fighting obesity and is moving towards consuming healthier food and
drinks.

2. Undiversified product portfolios:

Unlike most company’s competitors, Coca Cola is still focusing only on

selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will
find it hard to penetrate to other markets (selling food or snacks) when it
will have to sustain current level of growth.

3. High debt level due to acquisition:

Nearly $8 billion of debt acquired from CCE’s acquisition significantly

increased Coca Cola’s debt level, interest rates and borrowing costs.

4. Negative publicity:

The firm is often criticized for high water consumption in water scarce
regional and using harmful ingredients to produce its drinks.

Page | 36
5. Brand failures or many brands with insignificant amount of
revenues:

Coco Cola currently sells more than 500 brands but only few of the
brands result in more than $1 billion sales. Plus, the firm’s success of
introducing new drink is weak. Many of its introduction results in failure,
for example, C2 drink.

Page | 37
OPPORTUNITY:

1. Increasing demand for the healthy food and beverage:

Due to many programs to fight obesity. Demand for healthy food and
beverage has increase drastically .The coca cola company has an
opportunity to further expand its product range with drinks that have low
amount sugar and calories

2. Growing beverage consumption in emerging markets:

Consumption of soft drinks is still significantly growing in emerging

market, epically BRIC countries, where coca cola could increase and
maintain its beverage market share.

3. Growth through acquisition:

Coca cola will find its hard to keep current growth levels and will find its
hard to penetrate new market with its existing products portfolio. All this
can be done more easily through acquiring other companies.

Page | 38
THREATS:

1. Change in consumer taste:

Consumer around the world become more health conscious and reduce
their consumption and carbonated drinks , drinks that have large amounts
of sugar ,calories and fats .This is the most serious threat as coca cola is
mainly serving carbonated drink .

2. Water scarcities:

Water is becoming scarcer around the world and increase both in cost and
criticism for coca cola over the large amount of water used in production.

3. Strong dollars:

More than 60%of the coca cola company income is from outside US. Due
to strong dollar performance against other currencies firms overall income
may fall.

4. Legal requirements to disclose negative information on products

labels:

Coca’s carbonated drinks have adverse health consequence. For this

reason many government consider to pass legislation that that requires
disclosing such information on products labels. Products containing such
information may be perceived negativity and lose its customer.

5. Decreasing gross profit and net profit margins:

Page | 39
 Coca cola’s gross profit and net profit margin was decreasing over the
past few year and many continue to decrease due to higher water and
other raw material costs.

6. Competitions from PepsiCo:

PepsiCo is fiercely competing with coca cola over market share in BRIC
countries, especially India.

Page | 40
7. Challenges Facing the Organization:

COMPETITORS TO HCCBPL

The competitors to the products of the company mainly lie in the non-alcoholic
beverage industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

 PepsiCo:

The PepsiCo challenges, to keep up with archival, the Coca-Cola

Company never end of the world’s # 2, carbonated soft –drink maker. The
company’s soft drinks include Pepsi, Mountain Dew, Slice. Cola is not
the company’s only beverage, PepsiCo sells Tropicana orange juice
brands, Gatorade sports drink, and Aquafina water PepsiCo also sell dole
juice and Lipton ready-to-drink, tea. PepsiCo and Coca Cola hold
together, a market share of 95% out of which 60.8% is held by Coca-Cola
and the rest belongs to Pepsi.

 Nestle:

Nestle does not give that tough a competition to Coca-Cola as it mainly

deals with milk products, Baby foods and chocolates. But the iced tea that
is Nestea which has been introduced into the market by Nestle provide a
considerable amount of consumption to the products of the company. Iced
tea is one of the closest substitute to the colas as it is a thirst quencher and
it is healthier when compared to fizz drinks. The flavored milk product
also have become substitute to the products of the company due to
growing health awareness among people.
Page | 41
 Dabor:

Dabur in India, is one of the most trust brands as it has been operating
ever since times and people have laid their trust in the Company and the
products of the company. Apart from food products, Dabur has introduced
Into the market real juice which is packaged fresh fruit juice. These
product give the strong competition to Maza and the latest product Minute
maid Pulpy Orange.

Page | 42
8. REFLECTION ON LEARNING’S

8.1Discount Analysis and Cash Flow Management

Key Words:

 Distributor:

It is like an agent who directly purchases the beverages from the company
and sales it through it own agent.

 HVO:

It stands for High Volume Outlet. They receive High volume of

beverages.

 FAT agents:

They are one who purchases the beverage from the distributor.
Some of the percentage (as per the agreement) of the discount paid by the
company and some by distributor.

 Retailer:

They are simply the sub distributor who sell the beverage to the
consumer.

Page | 43
8.2 Flow of Discount by Company:

Company

Distributor

HVO FAT
(They work under Monopoly) (They work under Shared
System)

Direct Route

(Disc. Rate is paid by the company as per the agreement)

Indirect Route:

(Some of the discount rate per the agreement is paid by the company and some
is paid by the distributor to the FAT Agent)

There are two routes namely Indirect route and the direct route but we follow
indirect route because indirect route is complex to control due to presence of
Distributors/HVO’s/FAT agent and there is more chances of leakage while
direct route is easy to control because they are under the direct control of the
company.

Page | 44
Schemes under the indirect route:

1: Discount (e.g. get 1 or 2 on 1 case)

2: Rs. Discount (e.g. discount on case)

Page | 45
8.3 Pictorial Representation of the Discount Analysis

Start

% vol. calculated (coke to

distributors to HVO’s/ FAT
agents)

Is % Vol.>
Distributors with low
% vo. are not
25%
considered

High 5 vol. distributors are chosen for the detailed inspection of

there claims of their sell. Every single detail is been taken into
account.

Distributor’s FAT-agents & HVO’s are

being visited

Distributor’s
bill on the Bill & discount functions are checked
name of thoroughly.
retailers are
also checked

Analysis done

Solutions Given

Page | 46
8.4Discount Analysis:

ID Distributor Distributors Distributors Percentage

Volume Volume(HVO/FAT Volume
Agents)
C0010000 Sri. 12646 2149 17
Dhaynchand
C0010001 Puran Mal 33614 17286 51
C0010002 Suneri Cold 40617 17233 42
Drinks
C0010003 Ajay Cold 55036 39305 71
Drinks,
Boisar
C0010004 Lakshmi 42648 26624 62
Trading
Comapany,
Vashi
C0010005 Ellora 10292 5417 53
traders
C0010006 Sai 56940 31789 56
enterprises
nasik
C0010007 Chandar 13332 1432 11
Trading
caomapny,
Jawhar
C0010008 Agarwal 18963 5081 27

Page | 47
 Cold Drinks,
Mulund
C0010009 Mohan 17797 7800 44
Enterprises,
Uran
C0010010 Sunny 6443.00 5242 81
Enterorises,
Virar

90
C0010000
80
C0010001
70 C0010002

60 C0010003
C0010004
50
C0010005
40
C0010006
30 C0010007
20 C0010008
C0010009
10
C00100010
0
(%) Volume

Page | 48
Step 1:

Percentage Volume calculation:

Distribution Volume *100

Percentage volume = - - - - - - - - - - - - - - - - - - -

Total Volume

Step 2:

If Percentage Volume of Distributor is grater than 25%, target else neglect them.

Eg:►

Distributors Distributors Percentage

ID Distributor
Volume Volume(HVO/FAT Volume
Sri.
C0010000 12646 2149 17
Dhaynchand

This distributor will not be considered since percentage volume is less then 17

Distributors Distributors Percentage

ID Distributor
Volume Volume(HVO/FAT Volume
C0010003 Ajay Cold 55036 39305 71
Drinks,
Boisar

Page | 49
Step 3:

Distributor Bill Formal:

Pack Qty. Value Discount Cash Paid

200ml 72 168 432 1164
200ml 40 60 240 2160

Distributor Bill is cross check with the data present with the Coke.

Step 4 & 5:

Visiting the Distributor’s HVO/FAT agent and cross checking the bill present
with them with the data available with the coke and the distributor.

Format available with company:

Distributor : Ajay Cold Drinks, Boisar

HVO: Om Sai Confectionary
Beverages Purchased
Packaging Total Quantity
200ml 4056

If the above mentioned quantity is matched with the quantity present in the bill
with the HVO/FAT agent, than the flow of cash is correct.

Simultaneously, checking the bill which are the issued on the name of the
retailer by the distribution and finding that the retailer is getting the proper
benefit from the company or distributor is using those benefit.

Page | 50
Step 6:

If anyone is not doing there function properly than they will be under
jurisdiction otherwise that.

Distributor and HVO/FAT agents working under him is doing their work
properly.

HVO:

Eg:

Pack Qty. Value Discount Cash Paid

200ml 72 168 432 1164
200ml 40 60 240 2160
200ml 40 500 240 19760
200ml 10 414 60 4080

(Note: This is paid by the company directly to the HVO)

Working Note:

As there is discount rate Rs. 6/crate.

So, in 72 Crate = (72*6)=Rs. 432 for 200ml.

42 Crate= (42*6)=Rs. 252 for for 300 ml. and so on.

Page | 51
FAT Agent:

Eg:

Pack Qty. Value Discount Cash Paid

200ml 50 168 187.50 8212.50
200ml 60 168 225 9855
200ml 40 500 150 19850

(Note: Here half of the discount rate is paid by the company and half by the
distributor)

Working Note:

As there is discount rate Rs. 7.50 and Rs. 3.75 are paid by the distributors

So, in 50 Crate – (50*3.75) = Rs. 187.50 for 200ml.

60 Crate = (60*3.75) = Rs. 225 for 200 ml. and so on.

Working e.g.

Distributor : Ajay Cold Drinks, Boisar.

Under him:

Retailer= 30 FAT Agent=3

Retailer order for 30 cases Fat Agents order for 10 cases

There are 28 days in Coke.

Page | 52
Therefore, order for one month.

Cases=30*28 Cases= 10*28

=840 cases =280

Total number of cases= 840+280

=1120

Percentage value of FAT agents

=(280*1120)/280

=25%

Issues arise:

1: Give distributor is not servicing out lets properly.

2: Over invoicing FAT agents.

Solutions:

1. Direct order from FAT agents.

2. Card-card will be given by the FAT agents as the prove, means that the
bill that has been claimed is correct and there is no leakage of discount.
3. Directly supply to big HVO/FAT agents.

Page | 53
8.5 CASH FLOW:

Calculation of Cash Flow Statement:

Items Come under Cash Inflow and Cash outflow.

Particular Amount (Rs.)

Cash Inflow
Opening Balance. 1,11,32,203/-
Customer Sales 12,83,47,875/-
Inter Unit Fondling. 6,92,15,672/-
Other (Scrap, ect.) 9,00,000/-

Cash Outflow:
SGA 4,00,000/-
Plant and Machinery 95,00,000/-
Stationary Dues 50,00,000/-
RM/PM 1,40,00,000/-
Other Expenses (Salary Freight, ect…) 2,00,00,000/-

Customer Sale:

Under Customer sale the collection comes through:

1. Cheque/DD/EFT (Electronic Fund Transfer)

2. Depot Collection (via cheque/ Cash).

Statutory dues:

Page | 54
Under this category there comes:

1. Income tax paid

2. Service tax.
3. Excise Duty.
4. Sales Tax and Trade Tax

RM/PM:

1) Raw material (Sugar, crowns, etc…)

2) Packaging Material (Lamination, Curtains)

Working Note:

Inter Unit Funding:

Closing Balance= IUF=Total Sources-Opening Balance- Total Application.

E.g.

So from above cash flow template:

IUF for Week I will be calculated as:

Closing Balance= 129247875-11132203-48900000

=69215672

Closing Balance=IUF

Therefore,

As opening balance for the II week is the closing balance of the I week

Page | 55
Therefore,

Closing Balance=69215672+53900000-53900000

=69215672

Closing Balance=IUF

Therefore, IUF=69215672. And so on.

Actual for month:

It is calculated on the basis of the Business Plan which contain that how much
quantity they have to sell at what price.

In this actual, figures is taken from the balance deposited in the bank account in
thename of the particulars.

Variance:

It is calculated as:

Variance= actual for month- Forecast for the month

e.g.

Variance for customer sales:

Variance= Actual for month- Forecast for the month

= 88095725-20000000

=68095725

Page | 56
9. CONCLUSIONS

 Coca-Cola Company has a systematic system for allowing discount

 Rate of discount is fixed for each level of sales volume
 Discount is allowed to regular customer at fixed rate
 Minimum limit of sales volume is fixed for calculating discount
 Discount is calculated depending upon the sales volume
 Can on of equality is maintained while allowing discount
 Profit is not affected due to discount.

Page | 57
10.RECOMMENDATIONS

1. Direct order for Fat agents. This helps the company to know how
much demand is there in the market which is covered by that FAT
agents.

2. Card-card will be the given by the Fat agents as the prove, means
that the bill that has been claimed is correct and there is no Leakage
of discount.

3. Directly supply to big HVO/FAT agents: This ensure that the

supply to the HVO/FAT
4. Agents is correct and they are enjoying the correct discount.

5. Weekly report should be taken by the company in order to know

the requirements of the Retailers, FAT agents.

6. Timely competition of the demand of the beverages asked by the

Retailer, FATagents.

Page | 58
11. BIBLIOGRAPHY

Websites:

http://www.ko.com

http://www.coca-cola.com

http://news.bbe.co.uk/1/hi/business/4706275.stm

http://finance.yahoo.com/q?s=coke

Journals:

Monthly circular for the month of June, Hindustan Coca-Cola Beverage Private
Limited.

Coke annual Report 2015-16.

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