1

A REPORT
ON

ORGANISATIONAL STUDY
At

HINDUSTAN COCA – COLA BEVERAGES PVT LTD,

MOULA ALI (HYDERABAD)

Project submitted in partial fulfilment for the award of Post Graduation Degree
in Management

By
ANKITA GUPTA
Register No.- 09XQCMA011
Under the guidance of
Mrs. Hema Harsha

M.P BIRLA INSTITUTE MANAGEMENT

Associate Bharatiya Vidya Bhavan
#43, Race Course Road, Bangalore-590001

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PART –A
ORGANIZATIONAL STUDY

AT

HINDUSTAN COCA COLA BEVERAGES

PRIVATE LIMITED,

MOULA ALI

HYDERABAD

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GUIDE’S CERTIFICATE

I hereby certify that this internship report entitled “ORGANISATION STUDY AT

HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON
SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES”, has been
prepared by ANKITA GUPTA (bearing USN 09XQCMA011) under my guidance and supervision.

Place: Bangalore

Date: (Mrs. Hema Harsha)

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PRINCIPAL'S CERTIFICATE

This is to certify that this internship report entitled '' ORGANISATION STUDY AT
HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON
SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES” has been
prepared by ANKITA GUPTA (bearing register number 09XQCMA011) under the guidance of Mrs.
Hema Harsha, M P Birla Institute of Management, Bangalore

Place: Bangalore

Date: (Dr Nagesh

Malavalli)

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DECLARATION

I hereby declare that this Project Report titled “ORGANISATION STUDY AT

HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON
SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES” ,
submitted by me is a bonafide work undertaken by me and it is not submitted to any other
institution or university for the award of any degree/diploma certificate or published any time
before.

(ANKITA GUPTA)

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CONTENTS

Page no.

PART A

1. Introduction 02

1.1 Objective of the Study 02

1.2 Scope of the Study 02

1.3 Limitation of the Study 02

2. Industry Profile 04

2.1 Food and Beverage: Background 04

2.1.1 History 04

2.1.2 Leaders 05

2.1.3 Trends 06

2.2 Challenges in the food and beverage industry 07

2.3 Growth Prospects 07

2.4 Future Outlook 08

2.5 Key findings 08

2.6 Beverage Industry in India: A brief insight 09

3. Company Profile 11

3.1 History 13

3.1.1 Fast facts 14

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3.1.2 History of bottling 15

3.2 Values and mission of coca cola 18

3.2.1 Values 18

3.2.2 Mission 18

3.2.3 Vision for sustainable growth 18

3.3 Corporate social responsibility 19

3.4 HCCBPL 21

3.4.1 About the company 21

3.5 Mission and values of HCCBPL 23

3.5.1 Values 23

3.5.2 Mission 23

3.5.3 Quality policy 24

3.6 Manufacturing unit at HCCBPL 24

3.7 Manufacturing process at HCCBPL 25

3.8 Business plan model at HCCBPL 26

3.9 Distribution network 27

3.9.1 Distribution routes 27

3.9.2 Distribution system 28

3.9.3 Departments involved in the

Distribution Process 28

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3.10 Company’s Product mix 29

3.11 Packaging details 31

3.12 Competitors to HCCBPL 35

3.13 SWOT Analysis 36

3.13.1 Strengths 36

3.13.2 Weakness 36

3.13.3 Opportunities 37

3.13.4 Threats 37

PART B

4. Employee Welfare 39

4.1 Introduction 39

4.2 Employee welfare schemes 40

4.2.1 Statutory welfare schemes 40

4.2.2 Non Statutory welfare schemes 40

5. Research Methodology 42

5.1 Need for the study 43

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5.2 Objectives of the study 43

5.3 Scope of the study 44

5.4 Methodology 44

5.4.1 Primary data collection 44

5.4.2 Secondary data collection 45

5.5 Sampling 45

5.5.1 Size 45

5.5.2 Scaling technique 46

5.6 Limitations of the study 46

6. Findings and Inferences 47

6.1 Findings 60

6.2 Suggestions 61

7. Conclusion 63

8. Bibliography 65

9. Annexure 67

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LIST OF FLOWCHARTS
1. Beverage Industry in India 09

2. Chain followed from Manufacture to distribution 24

3. Business Plan Model at HCCBPL 27

4. Organisational Structure of Coca Cola in India 32

5. Organisational Structure at the regional level 33

6. Organisational Structure of the Sales Department 34

LIST OF FIGURES

1. Vision for sustainable growth 19

2. Location of COBO, FOBO and Contract packaging in India 22

3. Manufacturing Process at HCCBPL 25

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LIST OF GRAPHS
1. Graph showing that welfare schemes play an important

role in increasing the employee’s loyalty and motivation 48

2. Graph showing satisfaction with physical conditions 49

3. Graph showing satisfaction with safety measures 50

4. Graph showing satisfaction with drinking water facility 51

5. Graph showing satisfaction with no. of lavatories 52

6. Graph showing satisfaction with restroom facilities 53

7. Graph showing satisfaction with sanitary conditions 54

8. Graph showing management of grievances by organisation 55

9. Graph showing facilities provided by company 56

10. Graph showing satisfaction with canteen facility 57

11. Graph showing satisfaction with first-aid facility 58

12. Graph showing satisfaction with welfare activities 59

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ACKNOWLEDGEMENT
The ideal way to begin this research would be, to extend my heartfelt
gratitude to everyone who has encouraged and guided me all through my project in particular,
I would like to thank Mr. Rajesh Pebbilli (Human Resource Manager), Hindustan Coca-
Cola Beverages Pvt. Ltd, who gave me opportunity to learn the subject in a more practical
manner in this organization. I extend my thank to Mr. P.Srinivasa Rao (HR Team
leader) and Ms.Komali (HR Executive), HINDUSTAN COCA – COLA BEVERAGES
PVT LTD, Moula-Ali, Hyderabad, who in spite of their busy schedule helped and guided me
throughout the project .

All those employees of HINDUSTAN COCA – COLA BEVERAGES PVT LTD deserve
special thanks for their cooperation and help in the collection of necessary and relevant
material for the project.

I take this opportunity to thank the management and staff of MP Birla Institute of
Management for giving this opportunity to do this project and for their endless support.

(ANKITA GUPTA)

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EXECUTIVE SUMMARY

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 concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Company’s beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s.
Now operating in more than 200 countries and producing nearly 400 brands, the
Coca-Cola system has successfully applied a simple formula on a global scale:
“Provide a moment of refreshment for a small amount of money- a billion times a
day.”

In this project I intend to study about the satisfaction levels of the employees of
HCCBPL (Hindustan Coca-Cola Beverages Pvt. Ltd), Moula Ali related to the
welfare activities.
“Employee welfare is a comprehensive term including various services, benefits and
facilities offered to employees & by the employers. Through such generous fringe
benefits the employer makes life worth living foe employees”.

Welfare includes anything that is done for the comfort and improvement of
employees and is provided over and above the wages. Welfare helps in keeping the
morale and motivation of the employees high so as to retain the employees for
longer duration. The welfare measures need not be in monetary terms only but in
any kind/forms. Employee welfare includes monitoring of working conditions,
creation of industrial harmony through infrastructure for health, industrial relations
and insurance against disease, accident and unemployment for the workers and their
families. Employee welfare entails all those activities of employer which are
directed towards providing the employees with certain facilities and services in
addition to wages or to salaries.
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The very logic behind providing welfare schemes is to create efficient, healthy, loyal
and satisfied labour force for the organization. The purpose of providing such
facilities is to make their work life better and also to raise their standard of living.
The important benefits of welfare measures can be summarised as follows:

• They provide better physical and mental health to workers and thus promote a
healthy work environment.

• Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers’ families help in raising their standards of living. This makes
workers to pay more attention towards work and thus increases their productivity.

• Employers get stable labour force by providing welfare facilities. Workers take
active interest in their jobs and work with a feeling of involvement and participation.

• Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

• The social evils prevalent among the labours such as substance abuse, etc are
reduced to a greater extent by the welfare policies.

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1. INTRODUCTION

1.1 OBJECTIVES OF THE STUDY (INTERNSHIP)

x To examine the organization structure of the company.
x To understand functions of various departments such as Production, Marketing,
Human resource management and finance.
x To gain necessary interpersonal and managerial Skills.
x To gain well rounded view of Management operations.
x To gain firsthand experience from industry.
x To make assessment of the organization in the industry.

1.2. SCOPE OF THE STUDY

The scope is limited to the extent of the place, time, organization and their information
collected during the internship. It is done as a part of academic study.

The scope of the study limited to information supplied by the Department Heads and
information collected by standing order and settlement copies of the company.

The information collected is limited to the academic knowledge gained during the study of
the course.

The study is confined only to Hindustan Coca Cola Beverages Pvt. Ltd. Maula Ali,
Hyderabad.

1.3 LIMITATION OF THE STUDY

The study is not proposed to be an expert study as it was done by a student for the purpose
of a partial fulfilment of the course in the in plant training, which is an integral part, in
completion of the MBA Degree Course.

The study was conducted in a short period of six weeks, and so the finding cannot be
generalized for all times. Some of the information being confidential was not included in the
study. The scope of the study by and large is very vast. It is difficult to cover all the areas;
therefore an attempt is made to cover the crucial issues as much as possible.

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INDUSTRY
PROFILE

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2. INDUSTRY PROFILE

2.1 FOOD AND BEVERAGE: BACKGROUND

The food and beverage industry is composed of companies involved in processing

raw food materials and manufacturing, packaging or distributing food or drink – the
steps in food production after harvest and before retail purchase. In the food
industry, the dairy sector is the largest, followed by baked and cereal items, and
chilled foods. The beverage segment is composed of alcoholic and non-alcoholic
beverages. For alcoholic beverages, beer, cider and other flavored alcoholic
beverages make up the bulk of the market, followed by wine and spirits. In the
nonalcoholic segment, soft drinks far outsell coffee, tea, juice and water. The food
and beverages industry is considered a mature industry; it is very competitive and
relies strongly on advertising to promote brand names.

The food and beverage industry used to be considered the production of food,
which we now distinguish agriculture as a separate industry. Now, the industry is
much more focused on technology and mechanical manipulation of raw foods to
create more value-added food products. Reliance on transport has increased as the
industry has developed to be more global in nature, with most food products being
offered by a handful of globe-spanning corporations.

2.1.1 HISTORY

In the late 18th and early 19th centuries, the Industrial Revolution contributed largely
to the production and distribution of food and beverage. The results were the ability
to mass produce food products at a lower cost and improved transportation, such as
railroads and barges, enabled many food products to be enjoyed in regions where
food cannot be grown.

During wartime, the food and beverage industry shifted, as food is often a
precious commodity. Prices were determined by availability and regulation. After
World War I, the U.S. Federal Government established the U.S. Food
Administration to regulate the contents of domestically produced food. Most

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countries involved in World War II rationed food and regulated prices in order to
stabilize the economy.

After World War II the Food and Beverage Industry began branding products
through advertising to increase popularity. In many instances, product advertising
costs more than the cost of production, and branding is partially responsible for the
emergence of radio and television. The Cola Wars, a campaign of mutually-targeted
television advertisements and marketing campaigns between soft drink
manufacturers The Coca-Cola Company and PepsiCo, was one example of extensive
advertising.

In the 1950s and 1960s, the concept of franchised restaurants was promoted.
This enabled franchisers to expand with limited capital investment. One such
franchise is McDonalds, currently the World’s largest chain of fast food restaurants.
Since the 1980s there were many mergers and acquisitions of Food and Beverage
Companies. This trend continues today, with many companies actively buying and
selling brands. Some of the Industry’s biggest growth spurts have come from mega-
mergers between Food Industry giants. For example, Kraft Foods and Nabisco and
General Mills and Pillsbury were two major mergers.

India’s Food and Beverage Industry is valued at Rs. 3584 billion. India
produces above 600 million tons of food products every year and is one of the major
producers of food in the World.

The Food and Beverage Industry registered a growth rate of 8.5% in 2005-06.
According to McKinsey’s report, the total beverage consumption will grow at 9%
over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage
will see a spurt of 9.6% and 8.8% respectively.

2.1.2 LEADERS

In the Food and Beverages Industry, diversification, whether into many

different types of food or beverage or into different preparations, has been shown to
be a key to ensuring future growth. Nestle, the largest Food and Beverage Company
in the World, Unilever and Kraft Foods have all diversified well and performed well,
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becoming leaders in their market. The non-alcoholic beverage segment is led by

Coca-Cola with PepsiCo and Cadbury Schweppes.

The key players currently operating in the Indian Food and Beverages
Industry including Dabur India Limited, Godrej Industries Limited, Hindustan Lever
Limited, Britannia Industries Limited, ITC Limited, Nestle, PepsiCo, Inc., Cadbury
Schweppes PLC, Future Group, RPG Enterprise and Godrej Agrovet Limited.

2.1.3 TRENDS

Recently, Companies have spent a lot of money researching consumers eating

habits and preferences. Statistics shown that more people are dining out and food
producers are finding themselves devoting more attention to products designed for
restaurants, vending machines, and other food service providers. Although this is
bad news for grocery retailers, food makers realize food eaten away from home is
still food they can provide, many times at higher margins.

Another trend in the Industry has been the development of health foods, such
as those containing less trans-fat or fewer calories, or those containing only organic
ingredients. Bottled water has become well established in the market as many
beverage companies, and enhanced waters containing vitamins or supplements are
gaining popularity, Energy drinks, such as Red Bull, have also burst forth onto the
scene.

Rising costs have become an issue in the Food and Beverage Industry, as the
rising costs of petroleum cause a twofold increase in cost for companies in the Food
Industry; costs have increased at the agriculture end, which increases raw materials
costs for food processors who also deal with increased production and transportation
costs at their end. Since the Industry is so competitive, it is difficult for these
companies to raise their prices accordingly and profit margins have suffered as a
result.

Quality control and assurances are vital to this Industry. Food safety programs
have been adopted recently as issues of chemical and bacterial contamination and
new food-borne pathogens remain a public health concern.
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2.2 CHALLENGES IN THE FOOD AND BEVERAGE INDUSTRY

x Poor infrastructure
x Lack of adequate facilities for storage, transportation and cold chain facilities
x No common food law
x Food standards are confusing and contradictory
x High cost of raw material and packing material and high railway freight puts
pressures on margins.
x Different rules and regulations and licensing are defined for different
commodities

2.3 GROWTH PROSPECTS

With increase in disposable income of consumers, growing awareness among

consumers about health products, rapid urbanization and increasing popularity of
convenience foods, food and beverage sector is expected to grow at a high rate. This
sector holds a huge potential to grow because of the increase in advertisement
spending, awareness campaign about products in urban as well as rural areas and
large scale transformation.

India’s Food and Beverage Industry is valued at Rs. 3584 billion. India
produces above 600 million tons of food products every year and is one of the major
producers of food in the World.

The Food and Beverage Industry registered a growth rate of 8.5% in 2005-06.
According to McKinsey’s report, the total beverage consumption will grow at 9%
over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage
will see a spurt of 9.6% and 8.8% respectively.

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2.4 FUTURE OUTLOOK

RNCOS “Indian Food and Beverages Forecast (2007-2011)” report gives an

in-depth analysis of the present and future prospects of the Indian Food and
Beverages Industry. It looks into the Industry in detail with foci on organized food
retailing, consumer food purchasing behavior, food processing Industry and
packed/convenience food Industry. This report helps clients to analyze the factors
and examine the opportunities critical to the success of food and beverage industry
in India.

2.5 KEY FINDINGS

x It is expected that fruit consumption will increase at a CAGR of 4.33% for the
period spanning from 2007-201
x The processed-food market is the main focus for foreign companies as this
segment is underdeveloped and presents enormous potential for growth
x Rising household incomes, increasing urbanization, changing lifestyles and the
rapid growth of the private-sector and dairy-processing Industry should lead to
greater demand for value-added, milk-based products, such as processed cheese,
table butter and ice cream
x The growth rate of soft drink sales will decelerate during the forecasted period
due to pesticide contamination issues and growing popularity of fruit juice drinks
and bottled water
x Coffee consumption is likely to expand at a rapid rate during the forecasted
period. It is expected that it will increase at a CAGR of 10.05% for the period
spanning from 2007-2011
x The rapidly developing and full of potential processed food market will attract
foreign companies
x Consumption of soft drinks expanded at an average annual rate of 11% by
volume during 2002 to 2006, and this is forecast to accelerate only slightly to 12%
during 2007 to 2011
x Production of branded snack food is estimated to be growing at an annual rate
of 20% in coming 2-3 years, albeit it has a small base of consumers

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x Being the world’ largest market for whisky, India will remain major global
spirits market in the coming 3-4 years

2.6 BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.

FLOWCHART 1. BEVERAGE INDUSTRY IN INDIA

BEVERAGES

ALCOHOLIC NON-ALCOHOLIC

CARBONATED NON CARBONATED

COLA NON COLA NON COLA

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The beverage industry is vast and there various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it are as follows:
x Alcoholic, non-alcoholic and sports beverages
x Natural and Synthetic beverages
x In-home consumption and out of home on premises consumption.
x Age wise segmentation i.e. beverages for kids, for adults and for
senior citizens
x Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.

If the behavioural patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to
make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:
x The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
x The credibility and trust needs to be built so that there is a very strong and safe
feeling that the consumers have while consuming the beverages.
x Consumer education is a 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.
x Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration 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 beverage
industry in the economy.

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COMPANY
PROFILE

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3. THE COCA COLA COMPANY

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 concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Company’s beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s.
Now operating in more than 200 countries and producing nearly 400 brands, the
Coca-Cola system has successfully applied a simple formula on a global scale:
“Provide a moment of refreshment for a small amount of money- a billion times a
day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything,
that system is dedicated to people working long and hard to sell the products
manufactured by the Company. This unique worldwide system has made The Coca-
Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,
from Montreal to Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe. For more than 115 years,
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.
The Company aims at increasing shareowner value over time. It accomplishes this
by working with its business partners to deliver satisfaction and value to consumers
through a worldwide system of superior brands and services, thus increasing brand
equity on a global basis. They aim at managing their business well with people who
are strongly committed to the Company values and culture and providing an
appropriately controlled environment, to meet business goals and objectives. The
associates of this Company jointly take responsibility to ensure compliance with the
framework of policies and protect the Company’s assets and resources whilst
limiting business risks.
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3.1 HISTORY
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year
1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged
brass kettle in his backyard. He first “distributed” the product by carrying it in a jug
down the street to Jacob’s Pharmacy and customers bought the drink for five cents at
the soda fountain. Carbonated water was teamed with the new syrup, whether by
accident or otherwise, producing a drink that was proclaimed “delicious and
refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name
and penned “Coca-Cola” in the unique flowing script that is famous worldwide even
today. He suggested that “the two Cs would look well in advertising.” The first
newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty
citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth
signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink”
added to inform passersby that the new beverage was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year,
Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has
been a distinctive color associated with the soft drink ever since. For his efforts, Dr.
Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never
realized the potential of the beverage he created. He gradually sold portions of his
business to various partners and, just prior to his death in 1888, sold his remaining
interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year
1891, Mr. Candler proceeded to buy additional rights and acquire complete
ownership and control of the Coca-Cola business. Within four years, his
merchandising flair had helped expand consumption of Coca-Cola to every state and
territory after which he liquidated his pharmaceutical business and focused his full
attention on the soft drink. With his brother, John S. Candler, John Pemberton’s
former partner Frank Robinson and two other associates, Mr.Candler formed a
Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,”
used in the marketplace since 1886, was registered in the United States Patent Office
on January 31, 1893.

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The business continued to grow, and in 1894, the first syrup manufacturing plant
outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago,
Illinois, and Los Angeles, California, the following year. In 1895,three years after
The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual
report to share owners that “Coca-Cola is now drunk in every state and territory in
the United States.”
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A
new building erected in 1898 was the first headquarters building devoted exclusively
to the production of syrup and the management of the business. In the year 1919, the
Coca-Cola Company was sold to a group of investors for $25 million. Robert W.
Woodruff became the President of the Company in the year 1923 and his more than
sixty years of leadership took the business to unsurpassed heights of commercial
success, making Coca-Cola one of the most recognized and valued brands around
the world.

3.1.1 FAST FACTS

Established: 1886
Ranking: Owns 4 of world’s top 5 non-alcoholic brands i.e Coca-cola, sprite, diet
coke and Fanta
Company associates: 90,500 worldwide
Operational reach: 200+ countries
Consumer Servings (per day): 1.5 billion
Beverage variety: Offers more than 2800 products including diet and regular
sparkling beverages, and still beverages such as 100% juices, juice drinks, sports
drinks, teas, coffee and milk and soy-based beverages.

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3.1.2 HISTORY OF BOTTLING

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.

Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage
called Coca-Cola 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.

Year 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 for a sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.

Years 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.

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle 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. The Contour Bottle became one of

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the few packages ever granted trademark status by the U.S. Patent Office. Today, it
is one of the most recognized icons in the world.

In the 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
starting in 1923. 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.

In the 1920s and 1930s: International expansion

Led by 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 and South
Africa. By the time World War II began,Coca-Cola was being bottled in 44
countries.

In the 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.

In the 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.

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In the 1960s: Introduction of new brands

Sprite, Fanta, 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 Fruitopia in the 1990s. Today scores of other
brands are offered to meet consumer preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-
Cola Company 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.

In the 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. As the century closed, more than $1.5
billion was committed to new bottling facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers 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.

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3.2 VALUES AND MISSION OF COCA COLA

3.2.1: VALUES:
Coca-Cola is guided by shared values that both the employees as individuals
and the Company will live by; the values being:
x LEADERSHIP: The courage to shape a better future
x PASSION: Committed in heart and mind
x INTEGRITY: Be real
x ACCOUNTABILITY: If it is to be, it’s up to me
x COLLABORATION: Leverage collective genius
x INNOVATION: Seek, imagine, create, delight
x QUALITY: What we do, we do well

3.2.2: MISSION
x To Refresh the World... In body, mind, and spirit
x To Inspire Moments of Optimism... Through our brands and our actions
x To Create Value and Make a Difference... Everywhere we engage.

3.2.3: VISION FOR SUSTAINABLE GROWTH

x PROFIT: Maximizing return to shareowners while being mindful of our
overall responsibilities.
x PEOPLE: Being a great place to work where people are inspired to be the
best they can be.
x PORTFOLIO: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy peoples’ Desires and needs.
x PARTNERS: Nurturing a winning network of partners and building mutual
loyalty.
x PLANET: Being a responsible global citizen that makes a difference.

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Fig1. VISION FOR SUSTAINABLE GROWTH

3.3 CORPORATE SOCIAL RESPONSIBILITY

As one of the largest and most global companies in the world, Coca-Cola took
seriously its ability and responsibility to positively affect the communities in which
it operated. The company’s mission statement, called the Coca-Cola Promise, stated:
“The Coca-Cola Company exists to benefit and refresh everyone who is touched by
our business.” The Company has made efforts towards good citizenship in the areas
of community, by improving the quality of life in the communities in which they
operate, and the environment, by addressing water, climate change and waste
management initiatives. Their activities also included The Coca-Cola Africa
Foundation created to combat the spread of HIV/AIDS through partnership with
governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation, focused
on higher education as a vehicle to build strong communities and enhance individual
opportunity Coca-Cola’s footprint in India was significant as well. The Company
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employed 7000 citizens and believed that for every direct job, 30-40 more were
created in the supply chain.
Like its parent, Coke India’s Corporate Social Responsibility (CSR) initiatives were
both community and environment-focused. Priorities included education, where
primary education projects had been set up to benefit children in slums and villages,
water conservation, where the Company supported community-based rainwater
harvesting projects to restore water levels and promote conservation education, and
health, where Coke India partnered with NGOs and governments to provide medical
access to poor people through regular health camps. In addition to outreach efforts,
the company committed itself to environmental responsibility through its own
business operations in India including:
x Environmental due diligence before acquiring land or starting projects
x Environmental impact assessment before commencing operations
x Ground water and environmental surveys before selecting sites
x Compliance with all regulatory environmental requirements
x Ban on purchasing CFC-containing refrigeration equipment
x Waste water treatment facilities with trained personnel at all company-owned
bottling operations
x Energy conservation programs
x 50% water savings in last seven years of operations

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3.4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

(HCCBPL)

3.4.1 ABOUT THE COMPANY

Coca-Cola was the leading soft drink brand in India 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 launch 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 the Company’s
International brands was formed. The Coca-Cola Company acquired soft drink
brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as
these products had achieved a strong consumer base and formed a strong brand
image in Indian market during the re-entry of Coca-Cola in 1993.Thus these
products became a part of range of products of the Coca-Cola Company.
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 shareholding in favour 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 also has a supporting distribution network
consisting of 700,000 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 skills within the Company. The complexity of the Indian market is
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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 lines 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 capita consumption of cold drinks doubled
due to the launch of the new packaging of 200 ml returnable glass bottles which
were made available at a price of Rs.5 per bottle. This new market accounted for
over 80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have a long
standing belief that everyone who touches their business should benefit, thereby
inducing them to uphold these values, enabling the Company to achieve success,
recognition and loyalty worldwide.

COBO
FOBO
CONTRACT

Fig2. LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN

INDIA
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3.5 MISSION AND VALUES OF HCCBPL

3.5.1: VALUES
The values that the employees in the Company are expected to keep up to and work
by regularly are as follows:
x LEADERSHIP: To take an initiative and lead, motivate and drive the team
with energy and zeal, to deliver outstanding results.
x INNOVATION: To continuously strive for progress and reach the next level
of excellence in everything we do.
x PASSION: To be deeply committed and display drive and energy in the quest
to deliver outstanding performance.
x TEAMWORK: To unite for greater strength and work collectively as a group
towards the achievement of common goals.
x OWNERSHIP: To think and act like owners at all levels; to have decisions
taken at the lowest appropriate level.
x ACCOUNTABILITY: To be individually and transparently accountable to
our colleagues for delivering agreed targets and goals.

3.5.2: MISSION
To create consumer products, services and communications, customer service and
bottling system strategies, processes and tools in order to create competitive
advantage and deliver superior value to;
x Consumers as a superior beverage experience
x Consumers as an opportunity to grow profits through the use of
finished drinks.
x Bottlers as an opportunity to grow profits in volumes
x Bottlers as a trademark enhancement and positive economic value added
x Suppliers as an opportunity to make reasonable profits when creating real
value-added in an environment of system-wide team work, flexible business system
and continuous improvement.
x Indian society in the form of a contribution to economic and social
development.

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3.5.3: QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds and
actions by continually improving our processes…Every time.”

3.6 MANUFACTURING UNIT OF HCCBPL

There are 2 manufacturing units in Hyderabad one based at Ameenpur and one at
Moula-Ali, Ameenpur has 3 CSD (carbonated soft drinks) lines and Moula-Ali has 2
CSD and 1 PET line. There are 3 more units, one each in Vizag, Vijaywada and
Nellore. The total turnover of AP is over 750 crores with 3 plants, 2 Green fields and
1500 associates.

FLOWCHART 2. CHAIN FOLLOWED FROM MANUFACTURE TO

DISTRIBUTION

MANUFACTURING
PLANT, MAULA ALI

SALES AND
DISTRIBUTION

DISTRIBUTORS OUTLETS

OUTLETS

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3.7 MANUFACTURING PROCESS AT HCCBPL

Fig 3. MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following steps:

x Water is received and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to attain pure
cleansed water.
x In the syrup room, the concentrate received from another bottling plant
situated at Pune, is blended with the sugar syrup.
x Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is added to the
mixture to form the final product.
x On the other hand, simultaneously, the returnable glass bottles are
depalletized, inspected and washed for the purpose of filling in the final product in

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it. This step does not take place in the PET bottle line as the bottles once used are
disposed.
x The product is finally filled in the bottles, crowned (in case of RGB)/ capped
(in case of PET bottles), labeled and cased in order to be sent into the warehouse for
distribution.

3.8 BUSINESS PLAN MODEL AT HCCBPL

FLOWCHART 3

Coca-Cola India division Manufactures

Concentrate, Beverage
base and Syrup

Manufactures finished
Regional Bottlers Bottles/Cans/Fountain
Syrup
COBO/FOBO

Customers

Consumers

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3.9 DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution
channels are constructed in such a way that the demand of customers is fulfilled at the right
place and the right time when it is needed by them.
A typical distribution chain at HCCBPL would be:
Production --- Plant Warehouse --- Depot Warehouse --- Distribution---Warehouse ---
Retail Stock --- Retail Shelf --- Consumer
The customers of the Company are divided into different categories and different routes, and
every salesman is assigned to one particular route, which is to be followed by him on a daily
basis. A detailed and well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to
higher profits to the firm.

3.9.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows:
x Key Accounts: The customers in this category collectively contribute a large chunk
of the total sales of the Company. It basically consists of organizations that buy large
quantities of a product in one single transaction. The Company provides goods to these
customers on credit, payments being made by them after a certain period of time i.e. either a
month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

x Future Consumption: This route consists of outlets of Coca-Cola products, wherein

a considerable amount of stock is kept in order to use for future consumption. The stock
does not exhaust within a day or two, instead as and when required stocks are stacked up by
them so as to avoid shortage or non-availability of the product.
Examples: Departmental stores, Super markets etc.

x Immediate Consumption: The outlets in this route are those which require stocks on
a daily basis. The stocks of products in these outlets are not stored for future use instead, are
exhausted on the same day and might run a little into the next day i.e. the products are
consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.

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x General: Under this route, all the outlets that come in a particular area or an area
along with its neighboring areas are catered to. The consumption period is not taken into
consideration in this particular route.

3.9.2: DISTRIBUTION SYSTEM

x Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local account
management at the store level.

x Indirect distribution: In indirect distribution, 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)

x Merchandising: Merchandising means communication with the consumer at the

point of purchase to convey product benefit, value and Quality. Sales people and delivery
personnel both have this responsibility. In certain locations special teams who go into
business locations to specifically merchandise our products.

3.9.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments:
x Distribution Department: It appoints distributors and establishes a distribution
network, processes approved sale orders and prepares invoices, arranges logistics and ship
products, co-ordinates with distributors for collections and monitors distribution stocks and
their set-up.

x Finance Department: It checks credit limits and approves sales orders in compliance
with the credit policy followed by the firm, records collections from distributors,
periodically reconciles outstanding balances from distributors, obtains balance confirmation
from distributors and follows up outstanding balances.

x Shipping or Warehousing Department: It dispatches goods as per approved by

order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load
out area and updates warehouse stock records in a timely manner.

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3.10 COMPANY’S PRODUCT MIX

The Coca-Cola Company offers a wide range of products to the customers including
beverages, fruit juices and bottled mineral water. The Company is always looking to
innovate and come up with, either complete new products or new ways to bottle or
pack the existing drinks. The Coca-Cola Company has a wide range of products out
of which the following products are marketed by HCCBPL:

x In the Cola section

x In the Lemon section

x In the Orange section

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x In the Juice section

x In the Soda water and Bottled Mineral Water section

x In the Coffee section

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3.11 PACKAGING DETAILS

x Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300
ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles
x Diet Coke: 330 ml can and 500 ml PET bottle
x Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and
1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack
x Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles
x Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET
bot t l e s
x Schweppes Mineral Water: 750 ml PET bottles
x Schweppes Tonic Water: 330 ml can

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FLOWCHART4. ORGANISATIONAL STRUCTURE OF COCA COLA IN

INDIA

Chief

Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President

(North)

Regional Vice President

(Central)

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FLOWCHART5. ORGANISATIONAL STRUCTURE AT THE REGIONAL

LEVEL

Region Vice president

AGM/AOD (Unit 1)

AGM/AOD (Unit 2)

AGM/AOD (Unit 3)

AGM/AOD (Unit 4)

Region Finance

Region Human resource

Region Customer service

Region External Affairs

Region Cold drink

Region Legal

Region BSG

Region Director/Manager

Region Capability Management Region Channel

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FLOWCHART6. ORGANISATIONAL STRUCTURE OF TH E SALES

DEPARTMENT

AGM/AOD

Plant Route to Human Finance General

Manager Market Resource Manager Sales
Manager Manager

Area Channel Area

Sales Manager Capability
Manager Manager

Marketing Sales
Sales
Trainers
Executive

Market Key
Developers Accounts

Distributors
and Salesmen

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3.12: 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:

x PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola

Company never ends for the World's # 2, carbonated softdrink maker. The company's soft
drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage;
PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water.
PepsiCo also sells Dole juices 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.

x Nestlé: 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 provides a considerable amount of competition to
the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a
thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products
also have become substitutes to the products of the company due to growing health
awareness among people.

x Dabur: Dabur in India, is one of the most trusted brands as it has been operating
ever since times and people have laid all 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 products give a strong competition to Maaza and the
latest product Minute Maid Pulpy Orange.

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3.13 SWOT ANALYSIS

SWOT stands for Strengths Weakness Opportunities and Threats. SWOT analysis is
a technique much used in general managements as well as marketing scenarios.
SWOT consists of examining the current activities of the organisation in strengths
and weaknesses and then using the external research data to set out the opportunities
and threats that exist.

3.13.1 STRENGTHS

Coca-cola has been a complex part of world culture for a very long time. The
product’s image is loaded with over-romanticizing, and this is an image many
people have taken deeply to heart. The Coca-cola image is displayed on T-shirts,
hats, memorabilia. This extremely recognizable branding is Coca-Cola’s greatest
strengths. It is enjoyed more than 685 million times in a day around the world and
thus stands as a simple yet powerful symbol of quality and enjoyment.

Additionally, the bottling system of Coca-Cola is one of their greatest strengths. It

allows them to conduct business at a global scale while at the same time maintain a
local approach. The bottling companies are locally owned and operated by
independent business people who are authorised to sell products of Coca-Cola
company. Because coke does not have outright ownership of bottling networks, its
main source of revenue is sale of concentrate to its bottlers.

3.13.2 WEAKNESS

Weakness of any business needs to be both minimised and monitored in order to

effectively achieve productivity and efficiency in their business activities. Coke is no
exception. Although domestic businesses as well as many international markets are
thriving, coke has reported decline in unit case volume in some parts of the world
because of reduction in consumer purchasing power and none of these markets are
performing upto the expectations.

Coca-Cola on the other hand has effects on the teeth which is an issue for health
care. It also contains sugar which with continuous drinking may cause health

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problems. Being addicted to Coca-Cola also is a health problem, because drinking of

Coca-Cola daily has an effect on your body after few years.

3.13.3 OPPURTUNITIES

Brand recognition is the significant factor affecting Coke’s competitive positioning.

Coca-Cola’s brand name is known well throughout 94% of the world. The primary
concern has been to get this brand name to be even better known. Packaging changes
have also affected sales and industry positioning, but in general the company has
tended not be affected by new products. Coca-Cola’s bottling system also allows the
company to take advantage of infinite growth opportunities around the world. This
strategy gives coke the opportunity to service a large geographic and diverse area.

3.13.4 THREATS

Currently, the threat of new viable competitor in the carbonated soft dring industry is
not very substantial. The threat of substitutes however is a very real threat. The soft
drink industry is very strong but customers cant be faithful to it. Possible substitutes
that put continuous pressure on both coke and pepsi are tea, coffee, juices, milk and
hot chocolate. Even though Coke and Pepsi cover 40% of the entire beverage
market, the changing health consciousness of the consumers may have an adverse
affect. Of course both Coke and Pepsi have diversified into these markets, allowing
them to have further significant market shares and offset any losses incurred due to
fluctuations in the market. Consumer buying behaviour also represents a key threat
in the industry. The rivalry between coke and pepsi has produced a very slow
moving industry in which management must continuously respond to the changing
attitudes and demands of their consumers or face losing market share to the
competitors. Furthermore, consumers can easily switch to other beverages with little
cost or consequence.

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PART –B

SATISFACTION LEVEL OF
EMPLOYEES WITH
WELFARE ACTIVITIES IN
HCCBPL

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4. EMPLOYEE WELFARE

4.1 INTRODUCTION

Welfare includes anything that is done for the comfort and improvement of
employees and is provided over and above the wages. Welfare helps in keeping the
morale and motivation of the employees high so as to retain the employees for
longer duration. The welfare measures need not be in monetary terms only but in
any kind/forms. Employee welfare includes monitoring of working conditions,
creation of industrial harmony through infrastructure for health, industrial relations
and insurance against disease, accident and unemployment for the workers and their
families. Labour welfare entails all those activities of employer which are directed
towards providing the employees with certain facilities and services in addition
wages or salaries.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal
and satisfied labour force for the organization. The purpose of providing such
facilities is to make their work life better and also to raise their standard of living.
The important benefits of welfare measures can be summarized as follows:

x They provide better physical and mental health to workers and thus promote a
healthy work environment

x Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers’ families help in raising their standards of living. This makes
workers to pay more attention towards work and thus increases their productivity.

x Employers get stable labour force by providing welfare facilities. Workers

take active interest in their jobs and work with a feeling of involvement and
participation.

x Employee welfare measures increase the productivity of organization and

promote healthy industrial relations thereby maintaining industrial peace.

x The social evils prevalent among the labours such as substance abuse, etc are
reduced to a greater extent by the welfare policies.

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Labour welfare refers to all those efforts of employers, trade unions voluntary
organizations and governmental agencies which help employees feel better and
perform better.

Welfare means faring or doing well. It is a comprehensive term it refers to-

 Physical.
 Mental.
 Moral.
 Emotional well being of an individual..

4.2 EMPLOYEE WELFARE SCHEMES

Organizations provide welfare facilities to their employees to keep their motivation levels
high. The employee welfare schemes can be classified into two categories viz. statutory and
non-statutory welfare schemes. The statutory schemes are those schemes that are
compulsory to provide by an organization as compliance to the laws governing employee
health and safety. These include provisions provided in industrial acts like Factories Act
1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non
statutory schemes differ from organization to organization and from industry to industry.

4.2.1 STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

1) Drinking Water.
2) Facilities for sitting.
3) First aid appliances.
4) Latrines and Urinals.
5) Canteen facilities.
6) Spittoons.
7) Lighting.
8) Washing places.
9) Changing rooms.
10) Rest rooms.

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4.2.2 NON STATUTORY WELFARE SCHEMES

Many non statutory welfare schemes may include the following schemes:

1) Personal Health Care.

2) Maternity & Adoption Leave.
3) Housing facility.
4) Transport facility.
5) Medical insurance.

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RESEARCH
METHODOLOGY

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5. RESEARCH METHODOLGY

5.1 NEED FOR THE STUDY

Labour is one of the important factors of the production process. Other factors
are land, capital and management. Without labour, other factors of production
cannot complete the production cycle and they will become incomplete.

Labour is not only resource that is necessary to produce goods and services to
satisfy our needs. Each society has its own unique store of resource that differs in
type, quantity and quality. Labour in many cases is the most plentiful resource,
although many factors influence its productivity.

 To win over employees loyalty and increases their moral.

 To build up stable labour force, to reduce labour turnover & absenteeism.
 To develop efficiency and productivity among workers.
 To save oneself from heavy taxes on surplus profit.
 To earn goodwill and enhance public image.

5.2 OBJECTIVES OF THE STUDY

x To understand the welfare measures undertaken in HCCBPL.

x To know how far the welfare measures have served the purpose.
x To know whether the employees are making use of the welfare facilities
provided.
x To understand the employees perception on implementation of welfare
measures.
x To know if the employees require more facilities.
x To study how the welfare measures help in increasing the productivity and job
satisfaction.

x To learn how the welfare services provided to employees helps organization to

build up a stable work force by reducing absenteeism and labour turn over.
x To offer useful suggestion for improving the effectiveness of the welfare
measures.
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5.3 SCOPE OF THE STUDY

The study covers all the statutory welfare measures namely canteens, washing
facility, rest rooms, storing facility, sanitary and drinking water facilities. And the
non statutory welfare measures namely housing facility, transport facility and
recreation it also includes a study on issues like grievance handling and working
environment.

The study is conducted only on employees of HCCBPL, Maula Ali, which forms
universe of the study.

5.4 METHODOLOGY

Employee satisfaction cannot be defined on the basis of two single words-satisfied

and dissatisfied. If the welfare measures gratified his needs in the way he expects it
to, without any short falls, he is satisfied. Any deviation from his intended
expectation could leave him dissatisfied thus causing a grievance. Hence, it is safe to
conclude that no single factor or attribute of the service can be held responsible for
how the employee feels about it, every employee has his own expectations and the
resulting idea he forms about the measure is his own prerogative.

Enough care was taken to make sure that the department in which the employees
operated in are into way affected the survey or cause the finding to be skewed.

The data collected basically depends on:

 Primary data
 Secondary data

5.4.1 PRIMARY DATA COLLECTION

The information collected directly with out any reference is primary data. In the
study, it is mainly through conversation with concerned change of officers and staff
members, either individually or collectively.

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The data includes:

 Conducting personal interaction with the department of the company.

 Individual observation.
 Interactions of employees directly the information gathered or questionnaire.

5.4.2 SECONDARY DATA COLLECTION

Secondary Data is that data which has been gathered for purposes other than
addressing the issue or problem currently under study.

The various sources of secondary data collection are:

 Text books.
 Web sites.
 Journals.

5.5 SAMPLING

Sampling is the process of selecting units (e.g., people, organizations) from a

population of interest so that by studying the sample we may fairly generalize our
results back to the population from which they were chosen. Here I have chosen
random sampling method to carry out the research.

5.5.1 SIZE:

A sample of 30 employees has been selected at through it looks to be a small sample

keeping in view the large number of employees, it has to be limited because of time
constraint even than the sample size is not considered to be small it is enough to
draw conclusion.

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5.5.2 SCALING TECHNIQUE

Scaling technique used is Likert’s scale. A Likert item is simply a statement which
the respondent is asked to evaluate according to any kind of subjective or objective
criteria; generally the level of agreement or disagreement is measured. Often five
ordered response levels are used. Likert scaling is a bipolar scaling method,
measuring either positive or negative response to a statement.

5.6 LIMITATION OF THE STUDY:

There were some limitations with respect to the analysis and data that may affect the
accuracy of the results.

x One month is major constraint in collecting data.

x I have interviewed very few employees in the organization. However it is
feared that any error occurred in selection of sampling will directly affect the final
outcome/conclusion.
x Employees generally may not speak anything against management.
x More so when an open questionnaire is given they fear of possible discipline
at a client if they speak anything unpalatable.
x Like any other project report my report also is subject to human fallacies.
x Lastly I wish to conclude that the project report is applicable to the company
under study only and also to the particular period of study.

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FINDINGS
AND
INFERENCES

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6. FINDINGS AND INFERENCES

1) Do you agree that welfare schemes play an important role in increasing the
employee’s loyalty and motivation?

No. of Respondents Percentage

Strongly agree 13 44
Agree 17 56
Cannot say 0 0
Disagree 0 0
Strongly disagree 0 0

GRAPH 1

Inference:

All the respondents agree that welfare activities play an important role in increasing
loyalty and motivation. Welfare activities increase the satisfaction levels of the
employees, which leads to increase in motivation. A well motivated employee would
always be loyal towards its organisation and work towards improving the
productivity.

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2) Are you satisfied with the physical conditions at the work place?

No. of Respondents Percentage

Highly Satisfied 10 34
Satisfied 17 56
Cannot say 0 0
Dissatisfied 3 10
Highly Dissatisfied 0 0

GRAPH 2

Inference:

Most of the respondents are satisfied with the physical conditions at the work place.
Only 10% are dissatisfied. Thus it can be inferred that the physical conditions at
HCCBPL are good. Proper safety measures are taken by the organisation for the
employees working in the plant. Cleanliness is maintained in the entire place.

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3) Sufficient safety measures are taken in the plant?

No. of Respondents Percentage

Strongly agree 4 14
Agree 20 66
Cannot say 0 0
Disagree 6 20
Strongly Disagree 0 0

GRAPH 3

Inference:

Most of the respondents agree that proper safety measures are taken in the plant.
Very few disagree. Thus it can be inferred that respondents are happy with the safety
measures which are taken.

The employees who work in hazardous areas, like inside the plant are trained on
safety measures and all the required safety equipments are provided to them. The
machineries are checked on regular basis for any defects.

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4) Are you satisfied with the drinking water facility?

No. of Respondents Percentage

Highly Satisfied 9 30
Satisfied 17 56
Cannot say 0 0
Dissatisfied 4 14
Highly Dissatisfied 0 0

GRAPH 4

Inference:

Maximum number of the respondents are satisfied with the drinking water facilities.
Only few are dissatisfied. Drinking water facilities is available for employees near
their working places itself.

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5) Sufficient number of lavatories are provided.

No. of Respondents Percentage

Strongly Agree 4 14
Agree 13 43
Cannot say 2 7
Disagree 11 36
Strongly Disagree 0 0

GRAPH 5

Inference:

Many respondents disagree that sufficient lavatories are provided. The number of
lavatories were in accordance with the Factory’s Act 1948, but still some
respondents were unsatisfied because they needed more lavatories.

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6) Mention your level of satisfaction to the facility of restroom provided by

HCCBPL?

No. of Respondents Percentage

Highly Satisfied 5 17
Satisfied 12 40
Cannot say 0 0
Dissatisfied 13 43
Highly Dissatisfied 0 0

GRAPH 6

Inference:

Maximum number of respondents were satisfied with the restroom facility but quite
a lot were unhappy also. Thus it is inferred that management should provide more
restrooms and maintain it in good condition.

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7) Proper sanitary conditions are maintained in the lavatories

No. of Respondents Percentage

Strongly agree 4 13
Agree 12 40
Cannot say 0 0
Disagree 14 47
Strongly Disagree 0 0

GRAPH 7

Inference:

Many respondents were unhappy with the sanitary conditions provided in the
lavatories. The lavatories were cleaned just once in a day. Thus it is inferred that the
lavatories should be cleaned more frequently for the satisfaction of the employees.

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8) Management accepts and responds positively for the demands of employees

regarding welfare activities and acts accordingly.

No. of Respondents Percentage

Strongly Agree 2 7
Agree 23 76
Cannot say 0 0
Disagree 5 17
Strongly disagree 0 0

GRAPH 8

Inference:

Maximum number of the respondents agreed that the management responds

positively to their demands regarding welfare activities. Thus it is inferred that
grievance handling of the management is good.

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9) Mention/Tick on the facilities provided to you by the company

No. of Respondents Percentage

Regular Medical Check-ups 27 90
Maternity and adoption leave 13 44
Medi-claim insurance scheme 24 80
Employee referral scheme 20 67

GRAPH 9

Inference:

a) 90% of the employees agree that the company gets them regular medical
check-ups.
b) 44% of employees get maternity and adoption leaves.
c) 80% of employees agree that they get medi-claim insurance schemes.
d) 67% of the employees benefit from the employee referral scheme.

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10) Are you satisfied with the canteen facility provided?

No. of Respondents Percentage

Highly Satisfied 8 27
Satisfied 18 60
Cannot say 0 0
Dissatisfied 4 13
Highly Dissatisfied 0 0

GRAPH 10

Inference:

Maximum number of the respondents were satisfied with the canteen facilities
provided. The food provided is prepared in hygienic conditions and variety is
provided.

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11) Mention your level of satisfaction with first-aid facilities.

No. of Respondents Percentage

Highly Satisfied 8 27
Satisfied 18 60
Cannot say 0 0
Dissatisfied 4 13
Highly Dissatisfied 0 0

GRAPH 11

Inference:

Maximum number of the employees are satisfied with the first-aid facilities
provided. A separate first- aid room is provided and the first-aid facilitator is
available during the working hours.

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12) Are you satisfied with the welfare activities conducted by HCCBPL?

No. of Respondents Percentage

Highly Satisfied 12 40
Satisfied 15 50
Cannot say 0 0
Dissatisfied 3 10
Highly Dissatisfied 0 0

GRAPH 12

Inference:

Maximum number of the respondents are satisfied with the welfare activities
provided at HCCBPL. Thus the welfare activities provided by the organisation are
good.

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6.1 FINDINGS

x The organization has good working environment provided by the

management.
x Staff and workers were fully involved in their work during shift hours.
x Canteen facility is very good.
x Most of the people have positive attitude towards the organization.
x Management is very much concerned for the workers welfare.
x HCCBPL was maintaining good relation between employee and employer.
x Different welfare programs are conducted in different departments.
x The welfare programs improve self confidence and imbibe positive thinking
among the employees.
x The employer- employee relations in this HCCBPL is very good.
x They maintain good safety measures to their employees as well as for the
workers in the organization under the welfare programs.
x The HCCBPL provides various non-statutory welfare schemes also such as
medi-claim insurance and regular medical check-ups.

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6.2 SUGGESTIONS

Some of the employees think that welfare activities should be improved by the management
in following:

 Detailed welfare facilities should be more.

 The frequency of the employee welfare facilities should be more.
 The notices should be put up in regional language also.
 Depending on the department the employee welfare facilities should be
conducted for the employees.
 Organization should be able to understand the needs of every department
welfare facilities.
 Organization has to improve the continuous employee welfare facilities like
safety measures.

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CONCLUSION

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7. CONCLUSION

Coca Cola is a multinational company and a leader in the non-alcoholic beverage in

the world. In 2005 it was divided into CCI (Coca Cola India) and HCCBPL
(Hindustan Coca Cola Beverages Private Ltd.) in India. CCI produces the syrups for
the production of the beverages. HCCBPL is into bottling of the beverages
produced.

The welfare activities carried out in HCCBPL are very good and the employer-
employee relations are maintained in good terms. The organisation has good
working conditions and the employees were highly motivated. Various welfare
activities are conducted in different departments of the company to maintain the
employee’s loyalty and keep them motivated.

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BIBLIOGRAPHY

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8. BIBLIOGRAPHY

1) www.coca-colaindia.com

2) en.wikipedia.org/wiki/The_Coca-Cola_Company

3) en.wikipedia.org/wiki/Labour_law

4) http://www.articlesbase.com/human-resources-articles/employee-welfare-999627.html

5) http://food-beverages.exportersindia.com/

6 ) Industrial Law by PL Malik

7) http://www.indianfoodindustry.net/

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ANNEXURES

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QUESTIONNAIRE

Name:_________________________________________

1) Are you satisfied with the welfare activities conducted by HCCBPL?

(a) Highly satisfied

(b) Satisfied
(c) Cannot say
(d) Dissatisfied
(e) Highly dissatisfied

2) Do you agree that welfare schemes play an important role in increasing the
employee ‘s loyalty and motivation.

(a) Strongly agree

(b) Agree
(c) Cannot say
(d) Disagree
(e) Strongly disagree

3) Are you satisfied with the physical conditions at the work place.

(a) Highly satisfied

(b)Satisfied

(c) Cannot say

(d) Dissatisfied

(e) Highly dissatisfied

4) Sufficient safety measures are taken in the plant.

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(a) Strongly Agree

(b) Agree

(c) Cannot say

(d) Disagree

(e) Strongly Disagree

5) Are you satisfied with the drinking water facility provided

(a) Highly satisfied

(b) Satisfied

(c) Cannot say

(d) Dissatisfied

(e) Highly dissatisfied

6) Sufficient number of latrines and urinals are provided

(a) Strongly agree

(b) Agree

(c) Cannot say

(d) Disagree

(e) Strongly disagree

7) Mention your satisfaction level to the facility of restroom provided by HCCBPL

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(a) Highly satisfied

(b) Satisfied

(c) Cannot say

(c) Dissatisfied

(d) Highly dissatisfied

8) Proper sanitary conditions are maintained in the lavatories

(a) Strongly agree

(b) Agree

(c) Cannot say

(d) Disagree

(e) Strongly disagree

9) Management accepts and respond positively for the demands of employees

regarding welfare activities and acts accordingly

(a) Strongly Agree

(b) Agree

(c) Cannot say

(d) Disagree

(e) Strongly disagree

10) Mention/Tick on the facilities provided to you by the company

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Regular medical check ups

Maternity and adoption leave
Medi-claim insurance scheme
Employee referral scheme

11) Are you satisfied with the canteen facility provided?

(a) Highly satisfied

(b) Satisfied

(c) Cannot say

(d) Dissatisfied

(e) Highly Dissatisfied

12) Mention your level of satisfaction for first-aid facilities

(a) Highly satisfied

(b) Satisfied

(c) Cannot say

(d) Dissatisfied

(e) Highly Dissatisfied

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