Term Report

Submitted By:

Shan Muhammad
BSF 1703713

Session: 2017-2021

Submitted Date: 16-09-2020

University of Education
Multan Campus, Lahore
Department of Economics and Business Administration

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Dedication

I dedicate my dissertation work to our families and the most helping person not only in this
project but also from the day he started teaching us. A special feeling of gratitude to my loving
parent, whose words of encouragement and push for persistency ring in my ears.

I also dedicate this to my friend who took pain of my work and worked very hard as it was his
own project. He worked with a lot of dedication and courage. We dedicate this work and gives
special thanks to him.

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Acknowledgment

My Parents. Due to their support and untiring efforts this marathon task is completed. He
supported us in every situation during the research project. We are grateful to our department as
well because they give us opportunity to show our knowledge and skills.

I am also very thankful to our family and friends for their support, love and care. Without their
support it would be a dream to complete a lengthy task.

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Executive Summary

Executive Summary

This report is based on the activities performed during my internship at Punjab Beverages
Company (Pvt.) Ltd. Internship duration was 8 weeks and it provides me practical knowledge of
working in professional environment. I join Punjab Beverages Company (Pvt.) Ltd on 6 June,
2016 as Management Trainee to do internship for completion of BBA Hon Degree (Management
Science).

In the first part, there is some introductory detail about the company. The history and present
growth of the company has explained. The organization structure and the details of its
management along with its organizational chart are also discussed in the second part. I have
discussed the important departments of the company and some business operations in the third
part.

In fourth part I describe my own working at Punjab Beverages Company (Pvt.) Ltd. The SWOT
Analysis has given in fifth part. At the end there are some suggestions according to my
knowledge about organization. I worked as an internee mainly in Production, Quality Control &
Quality Assurance department and Marketing Department

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Contents
Dedication...................................................................................................................................................2
Acknowledgment.........................................................................................................................................3
Executive Summary.....................................................................................................................................4
Overview of the Organization.....................................................................................................................7
a) Brief history.....................................................................................................................................7
b) Introduction of the organization.......................................................................................................8
Goals and Objectives...............................................................................................................................9
Marketing Functions....................................................................................................................................9
Products...................................................................................................................................................9
Critical Analysis:.......................................................................................................................................12
Customers:.............................................................................................................................................14
Media:...................................................................................................................................................14
Employees:............................................................................................................................................15
PEST Analysis of Pepsi.........................................................................................................................16
Marketing Mix...........................................................................................................................................17
What Is Marketing Mix?............................................................................................................................17
The Importance of Each Element of the Marketing Mix in Fueling Growth..........................................18
1. “product”..............................................................................................................................................18
2. “price”..................................................................................................................................................19
3. “Promotion.“........................................................................................................................................19
4. “Place”..................................................................................................................................................20
5. “People”...............................................................................................................................................21
6. “Process”..............................................................................................................................................21
Organizational Structure............................................................................................................................22
Number of employees............................................................................................................................23
Main offices...........................................................................................................................................23
Departments...........................................................................................................................................23
Problem statement:....................................................................................................................................25
Recommendations:....................................................................................................................................31
ANNEXES:...............................................................................................................................................32

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Overview of the Organization

a) Brief history
Pepsi Cola International brands is being formed and consumed in 48 countries in world including
Pakistan. In Pakistan, Pepsi cola is no 1 in term of sales wise and market share. It is the market
leader. But overall the world coca cola is no 1. In Pakistan there are 9 territories where the
franchised unit produce and sale Pepsi brands.
Some of these territories are:
1. Lahore
2. Karachi
3. Rawalpindi
4. Peshawar
5. Multan
6. Gujranwala
7. Faisalabad
8. Sakhar
9. Baluchistan
Company’s Profile
Name: Gourmet Cola Pakistan

Logo:
Geographical Location: Madar-e-Millat Road, Quaid-e-Azam Industrial Estate Quaid e
Azam Industrial Estate, Lahore, Punjab- Pakistan
Industry: Food & Beverages
Major Units: Injection Molding, Blow Molding, CSD
Number of Employees: 8,000 to 10,000 Employees
Business Established in: 1987
Based: Manufacturing to customer
Brand of GCP Baked and Unbaked Desserts, Breakfast Pastries, Restaurant, Dairies Products,
Sweets, Dairies, Fruit Jams & Jelly, Fruit Juices & Beverage Products and Restaurant & Catering
Service

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Distribution Area All over Pakistan
Company Offices2660270
041 - 2660370
Lahore Pakistan
Certifications: ISO 9001, Moody, UKAS Quality Management
Address: Madar-e-Millat Road, Quaid-e-Azam Industrial Estate Quaid e
Azam Industrial Estate, Lahore, Punjab Pakistan

b) Introduction of the organization

Gourmet-co is a large company dealing with food, snacks and beverages; it is approximated to be
worth $2.3 billion and has employed 10, 000 employees. The company comprise of three main
divisions located in Lahore, All over Punjab and its National subsidiaries. Operational
management is an important aspect in the modern corporate world; it is an important part of an
organization and a strategic department in the organizational structure.

The company offers a wide variety of products in order to meet customer demands, needs and
preference. They select product choices that promote healthy lifestyles. Gourmet-co is
headquartered in the city of Lahore. Operations management is the design, operations and the
improvement of an organization’s systems that facilitate the creation and the delivery of a
company’s products and services. The company deals in the production of beverage products:

Gourmet Cola, Gourmet Lemon up, Gourmet Anaar and mineral water, the company also deals
with savory food snacks like Bakery products and dairy products; other products of the company
are food products which include cereals and cakes.

Our Mission
Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to investors as we
provide opportunities for growth and enrichment to our employees, our business partners
and the communities in which we operate. And in everything we do, we strive for
honesty, fairness and integrity.

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Our Vision
"Gourmet-co's responsibility is to continually improve all aspects of the Country in which
we operate - environment, social, economic - creating a better tomorrow than today." Our
vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
Gourmet-co a truly sustainable company.

Goals and Objectives

 Expand the business.

 Provide better service to people in the field of telecommunication.

 Retaining the role one of the leading telecommunication company.

 Attract maximum customers and satisfy them.

 Excel in meeting customer needs.

c) Policy of the organization

Marketing Functions

Products
Gourmet-co is home to hundreds of brands around the globe. Listed here are some of our most
recognized.
Pepsi

• Pepsi

• Pepsi Max

• Pepsi Max Cease Fire

• Pepsi Natural

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 • Pepsi One

• Pepsi Throwback

• Pepsi Wild Cherry

• Caffeine Free Pepsi

• Diet Pepsi

• Diet Pepsi Wild Cherry

• Caffeine Free Diet Pepsi

Slice

• Slice - Diet Orange

• Slice - Grape

• Slice - Orange

• Slice - Peach

• Slice - Strawberry

Tropicana

• Tropicana Fruit Punch

• Tropicana Lemonade

• Tropicana Light - Lemonade

• Tropicana Light - Orangeade

• Tropicana Orangeade

• Tropicana Pink Lemonade

• Tropicana Strawberry Melon

• Tropicana Twister Soda - Diet Orange

• Tropicana Twister Soda - Grape

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 • Tropicana Twister Soda - Orange

Tropicana Twister Soda - Strawberry

Mountain Dew

• Mountain Dew

• Mountain Dew Code Red

• Mountain Dew Distortion

• Mountain Dew Live Wire

• Mountain Dew Throwback

• Mountain Dew Typhoon

• Mountain Dew Voltage

• Mountain Dew White Out

• Caffeine Free Mountain Dew

• Caffeine Free Diet Mountain Dew

• Diet Mountain Dew

• Diet Mountain Dew Code Red

Aquafina

• Aquafina

• Aquafina FlavorSplash - Grape

• Aquafina FlavorSplash - Peach Mango

• Aquafina FlavorSplash - Raspberry

• Aquafina FlavorSplash - Strawberry Kiwi

• Aquafina FlavorSplash - Wild Berry

• Aquafina Sparkling - Berry Burst

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 • Aquafina Sparkling - Citrus Twist

Starbucks (Partnership)

• Frappuccino - Caramel

• Frappuccino - Coffee

• Frappuccino - Dark Chocolate Mocha

• Frappuccino - Light Vanilla

• Frappuccino - Light Mocha

• Frappuccino - Mocha

• Frappuccino - Vanilla

• DoubleShot Coffee Drink

• DoubleShot Light Coffee Drink

• DoubleShot Energy - Cinnamon Dulce

• DoubleShot Energy - Coffee

• DoubleShot Energy - Mocha

• DoubleShot Energy - Vanilla

• DoubleShot Energy - Vanilla Light

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Critical Analysis:

Gourmet-co is one of the world’s leading producers of different commodities which include
chips (snacks), foods, and soda (beverages), with revenues of $60 billion and employee strength
of more than 285000 employees (Gourmet-co Web/ CorpProf). Gourmet-co owns multiple
brands including Pepsi- cola, Mountain Dew, Diet Pepsi, Doritos, Tropicana, Gatorade, and
Quaker (Gourmet-co Web/ CorpProf). Gourmet-co brands are available worldwide through a
variety of retail shops, which include brick and mortar shop to direct store delivery, distributor
warehouse, and automatic food service and wending subsidized by particular institutes
(Gourmet-co Web/ CorpProf).
Gourmet-co has multiple divisions throughout the world and mainly are divided into (Gourmet-
co Web/ CorpProf)
 Gourmet-co Americas Beverages (PAB) (Gourmet-co Web/ CorpProf)

 Frito-Lay North America (FLNA) (Gourmet-co Web/ CorpProf)

 Quaker Foods North America (QFNA) (Gourmet-co Web/ CorpProf)

 Latin America Foods (LAF) (Gourmet-co Web/ CorpProf)

 Europe (Gourmet-co Web/ CorpProf)

 Asia, Middle East & Africa (Gourmet-co Web/ CorpProf)

The division is as follows: This picture has been extracted from Gourmet-co Web/ CorpProf.

Analysis of the microenvironment of the organization:

As we know that microenvironment of the organization is the environment which we can control.

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13
Customers:

Customer
Human sustainability means committing to provide more food and beverage choice, which are
made with wholesome ingredients that contribute to healthier eating and drinking (Gourmet-co
Web/ HumanSus). Healthier eating and drinking further leads to good health and trust among
consumers. Such strategy leads to growth in market share on consumer level. Also this leads to
increasing the amount of the fruits, veggies, seeds, pulses, and whole grains. Also low-fat dairy
in our global product portfolio also increases (Gourmet-co Web/ HumanSus).

Gourmet-co believes in doing responsible marketing with collaboration from International Food
& Beverage Alliance, which consists of multinational food and beverage manufacturers, will
help them to start the worldwide voluntary commitment and to continue to advertise to children
under the age of twelve those products that meet specific nutrition criteria and are healthy from
their perspectives (Gourmet-co Web/ RespMark). This step is mainly taken to advertise their
products to children and to help increase sales in schools.

Learning and Growth

Within the performance measure of environmental sustain Gourmet-co plans to learn and grow
from conserving the environment around it. PepsGourmet-co tries to maintain the highest quality
standards for consumer means using the best water possible. It tries to treat the water by
innovative processes and new technologies (Gourmet-co Web/ EnvirSusta). Gourmet-co plans to
improve the water use efficiency by 20 percent per unit of production by 2015

Media:
Pepsi uses different channels for their promotions like:
 Social Media
 Tv Channels
 Newspaper
 Radio Pakistan
 Digital Media

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Employees:

There are so many employees working in different departments.

Almost, 2300+ employees are working in different department:
 COMMERCIAL DEPARTMENT
 OPERATIONAL DEPARTMENT
 INFORMATIONAL TECHONOLOGY DEPARTMENT
 CORPORATE DEVELOPMENT DEPARTMENT
 SPECIAL PROJECTS DEPARTMENT
 MARKETING DEPARTMENT

Analysis of the macro environment of the organization:

As we know that microenvironment of the organization is the environment which we can control.

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PEST Analysis of Pepsi

The Pest Analysis identifies the political, economical, social a technological influences on an
organization.
POLITICAL INFLUENCES: - The production distribution and use of many of Gourmet-co
product are subject to various federal laws, such as the Food, Drug and Cosmetic Act, the
Occupational Safety and Health Act ad the Americans with Disabilities. - The businesses are also
subject to state, local and foreign laws. - The international businesses are subject to the
Government stability in the countries where Gourmet-co is trying get into (underdeveloped
markets). - The federal, state, local and foreign environmental laws and regulations. - The
businesses are also subject to de taxation policy in each country they are operating. - They also
have to comply with federal, state, local and foreign environmental laws and regulations.

ECONOMIC INFLUENCES: - The companies are subject to the harvest of the raw material
that they use in their snack foods, soft drink and juice, like corn, oranges, grapefruit, vegetables,
potatoes, etc. - Because of they rely on trucks to move and distribute many of their products, fuel
is also an important subject, so they are subject to the fuel prize. sociocultural
SOCIOCULTURAL INFLUENCES: -
Gourmet-co and moreover Pepsi is subject to the lifestyle changes, because of it bases her
advertising campaigns in a concrete kind of people with an special lifestyle, it is for that
Gourmet-co has to pay a special attention on the lifestyle changes. - Particularly in the United
States Pepsi drinkers are very defined, there is a kind of people who drinks Pepsi another kind
who drinks Coca-Cola, it is for that they have to pay attention to the social mobility for not
losing a possible market. - Taking into account that Gourmet-co is trying to introduce itself in
underdeveloped markets, they have to be careful with the possible problems with the
governments of this countries, and with the problems could rise from Gourmet-co act with the
people of this countries.
rize fluctuation, and to possible fuel crisis. - Operating in International Markets involves
exposure to volatile movements in foreign exchange rates. The economic impact of foreign
exchange rates movements on them is complex because such changes are often linked to
variability in real growth, inflation, interest rates, governmental actions and other factors. -

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Gourmet-co is also subject to other economical factors like money supply, energy availability
and cost, business cycles, etc.

TECHNOLOGICAL INFLUENCES: -

Gourmet-co is subject to new techniques of nufacturing, for their three business sectors, snack
food, juices and soft drinks. - It has to pay attention to the new distribution techniques. - And
they have to fix their attention in the competence developed, to know about the new products.
Porter’s Diamond: The Porter’s Diamond Analysis tries to explain the Competitive Advantage of
Nations. There are four attributes of a nation comprise Porter’s Diamond of national advantage,
they are: Factor Conditions: The basic factor conditions are natural resources, climate, location,
the more advanced factor conditions are skilled labour, infrastructure and technology. There are
some of these factors that can be obtained by any company (like unskilled labour and raw
materials) and, hence, do not generate sustained competitive advantage. Even though, we have to
take into account that specialized factors involve a heavy and sustained investment, we have to
know that if we are able to achieve them, we could generate a competitive advantage. Some of
the factor conditions Gourmet-co has to take into account, in each count.

Marketing Mix

What Is Marketing Mix?

Marketing mix refers to the combination of elements that shape how a business delivers
value to its customers. These elements are called the 7Ps: Product, Price, Promotion, Place,
People, Process, and Physical evidence.

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The concept was originally introduced in 1960 as the 4Ps: Product, Price, Promotion, and
Place. But as the marketing landscape evolved, the 4Ps expanded to 7Ps, adding People,
Process, and Physical Evidence to the mix. It’s thought that the additional elements better
address modern competitive environments affected by the rise of technology and the
changes in how people communicate.

The Importance of Each Element of the Marketing Mix in Fueling Growth

The importance of marketing mix in achieving business objectives cannot be overstated. As
we mentioned, you must make sure each element of the marketing mix works with the
others to support your objectives. For example, you need to support a premium product with
premium pricing and location, and your promotion must communicate that value. When
even one element is “off,” you may find yourself handicapped.

Some companies with standout growth are experiencing the effects of leveraging individual
elements of the marketing mix. One element can even help elevate the others, as we’ll see in
some of these examples.

1. “product”
“Product” refers to the goods or services that you offer and how they meet your customers’
needs and desires. This extends to quality, warranties, packaging, features, variety of
products or service levels, and so on.

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Product-led-growth is a go-to-market strategy currently popular in the startup world. The
basic idea is to put the user experience at the forefront of every aspect of strategy to create a
product that satisfies users more than any other solution. Instant-messaging platform Slack
famously used product-led growth to reach $4 billion in revenue in under four years.

Rather than relying on marketing or sales, this growth strategy expects word of mouth to
take care of the “promotion” element of the marketing mix. And that’s how it played out for
Slack: they achieved growth without a sales team or elaborate marketing, relying on users to
spread the word.

2. “price”
“Price” is how much customers pay — or are willing to pay — for your product or service.
It encompasses factors such as payment methods, financing/credit terms, discounts, price-
matching, referral bonuses, affiliate payments, loyalty discounts, free trials, subscription
options, etc.

To make your business viable, your price must lead to a profit. In fact, the price element
offers a seemingly straightforward way to fuel growth, since even a 1% increase in price  can
increase profits 11%, on average. Yet many companies still fail to price their product
optimally.

Not Starbucks, though. Its approach to pricing gives us an insightful look into how the
company continues to grow and operate profitably. Knowing that its customers are not
price-sensitive lets Starbucks increase prices in tiny increments. This means the company
can continually move its pricing upward, toward the highest amount customers are willing
to pay, without causing them to stop buying.

3. “Promotion.“
“Promotion” refers to the way you communicate with potential customers. It includes what
you say, who you say it to, what channels you use to reach them, and how often you do it.
Activities in the promotional mix fall within advertising, PR, direct marketing, and personal

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selling and can encompass search engine marketing, social media, billboards and signage,
print advertising, and much more.

Promotion plays a significant part in growth because it makes it possible for potential
customers to hear about you. For Lego, it meant a spectacular  turnaround from deficits and
layoffs, becoming the “world’s most valuable toy brand,” valued at $7.57 billion.

The company had been facing decline until it turned to branded entertainment to connect
with customers. It created movies in partnership with franchises like Star Wars and Batman,
and it created a YouTube channel that became one of YouTube’s most popular, with 5
million subscribers. It also encouraged user-generated content within its Lego Life online
community and on YouTube, allowing its own customers to market its products. Large
brands may consider embracing promotion via its users a risky move, but it paid off for
Lego.

4. “Place”
“Place“ is where and how a company will make its products available to its customers. It
includes the channels a company uses to sell its products, such as local stores, ecommerce
websites, personal networks, direct sales, affiliates, and so on. It also includes logistics such
as distribution centers, product transport, and warehouses and inventory.

Despite the fact that Chick-fil-A has fewer locations than competitors and only operates six
days a week, the chain has become the third-largest restaurant chain in America. Some
experts think that is because of Chick-fil-A’s great focus on selecting locations for new
stores. It has invested heavily in location technology to help it evaluate sites, looking at
psychographic and demographic data to determine potential. It also supports local
communities by taking great care that its locations do not put individual store owners in
competition with each other.

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5. “People”
The “People” component of the marketing mix encompasses everyone who is on your team.
This includes managers, customer service reps, product engineers, production workers,
salespeople, and support staff. It also includes the hierarchy of relationships at an
organization, which is meant to help employees get things done efficiently and work
together smoothly.

6. “Process”
“Process” in the marketing mix refers to the flow that a company uses to deliver its product
or service to the customer. This includes the logistics involved in building and marketing a
product, from R&D through to the final production line. It can also extend to how the
marketing team works together to create campaigns.

Thanks to automation and advanced technology, companies can take advantage of software
and tools to create a competitive advantage stemming from processes. Improving processes
helps businesses improve productivity to increase profits. It can also increase a company’s
speed to market, giving it first-mover advantage.

Take, for example, how retail fashion giant Zara gets new clothing designs into its stores
quickly. The company has built its innovation process around customer feedback, using its
stores to gather input and then communicate it to its designers. This streamlined approach
lets its designers quickly incorporate new designs, so the company can fill its shelves with
the latest trends before its competitors do.

The customer-feedback process has meant more than just speed for Zara. It has reduced the
company’s reliance on promotion. Though the company spends very little on advertising —
just 0.3% of sales — it has built an avid following, thanks to involving fans in the
innovation process. The company boasts over 30 million Instagram followers and 28 million
Facebook fans.

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Organizational Structure

Gourmet-co is considered the pioneer and the king in the production of beverages. It is well
known all over the globe for its trademark drink Pepsi and other Quaker products. In the year
2007, the company changed its organizational structure from two to three units. The company
before 2007 had two units Gourmet-co North America and Gourmet-co international. After the
restructuring, the company added one unit and the three units were “Pepsi America Foods,
Gourmet-co America beverages and Gourmet-co international” (Scribd, 2011, p. 1).

Gourmet-co is considered an organization fit for adaptation. The company is in continuous

exercise of improvement and innovation so as to ensure their products fit the demand of the
customers and furthermore maintain relevance in the market.

The organizational structure of the company is a decentralized one and decisions regarding
operations are executed by different business units but are guided by the company policies and
corporate ethics. The company is headed by a Chief Executive Officer (CEO). Under the CEO
are Vice presidents who are in charge of various departments and all are answerable to the
chairman and the board. The expansion from two to three units was as result of its rapid growth.

The company also has Scientific Advisory Board which report on the company’s corporate social
responsibility and undertakes research relating to the challenges facing the company. The
company also has regional advisory boards in its operations outside US who guide the
company’s health, safety, compliance and innovation. The overall Chief Executive Officer
(CEO) also doubles as the chairman of the company (Gourmet-co, 2011)

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 Hierarchy of the Punjab Beverage Company (Pvt.) Company.

Chief Executive

Director

Departments

Production H.R Finance Security Operation S&D

CSD Non CSD Personal

Internal External
1
Water Treatment Recruitment

MSD Supply Chain

Accounts
Cost & Budget

Audit Sales Accounts

Number of employees

Pepsi has 5000 employees, those are deployed on different sites of the pepsi co. in different
cities, and the strength of its employees is increasing day by day.

Main offices
The Head office of pepsi is situated in 37-C-I, Gulberg-3 Lahore,Pakistan

Phone: +92-4235710053

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Departments

Every organization is divided into deferent departments. Each department performs different
kind of jobs and requires staff with specialized skills to handle particular job.
The main departments of Pepsi are mentioned below
1. Human Resource department
2. Finance department
3. Commercial department
4. Operational department
5. It department
6. Corporate commercial department
7. Marketing department
8. Customer service department
9-Security department

HUMAN RESOURSE DEPARTMENT

Special training courses and workshops have been conducted for the Top and middle
management through reputed organizations like LUMS. Efforts are being made to improve
productivity and efficiency of the Company While emphasis is also being placed on effective
management employee’s relationship and better line of communications to achieve corporate
goals

FINANCE DEPARTMENT

This department is divided into following three sub-sections:

 Finance
 Accounts
 Revenue
The Finance Wing deals with the revenue matters of the company & the Accounts Wing is
responsible for proper book-keeping. The Accounts Office of Pepsi is in Islamabad. Finance is
the backbone of every organization because without finance any organization can’t run its
business. It plays an important role in determining the long-term objectives and evaluating the

24
feasibility of the business. The financial activities of Pepsi have been split up into three major
branches: Finance, Accounts & Revenue. The details regarding this section will be covered in
finance
section with reference to my project.

COMMERCIAL DEPARTMENT

Commercial section with qualified/experienced staff is being established. Company section is

taking both short-term and long-term view of emerging trends of highly competitive markets as
its monopoly is coming to an end. It analyzes all the possible Company options, i.e. introducing
new services, adopting new technologies to maintain the leading role in the sector and preserve
its dominant position in the industry.

OPERATIONAL DEPARTMENT
Manages operations of Pepsi HQ, with regional offices, branches, and, subsidiaries as wells with
other corporation

INFORMATIONAL TECHONOLOGY DEPARTMENT

This department is established to introduce new and advance technology in Pepsi. Due to IT
department working system is too converted in a computerized system.

CORPORATE DEVELOPMENT DEPARTMENT

This department deal corporate level issues such as PTA, International Telecom Union, Legal
and Regulatory affairs etc.

SPECIAL PROJECTS DEPARTMENT

This department is doing their activities on behalf of president.

MARKETING DEPARTMENT
Marketing Department is called a revenue-generating department of an organization. Marketing
Department undertakes market research and gives feedback to management about
Customer services department.

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In customer services department the employees of Pepsi deal with the customers and providing
them the services which they want and resolve the problems of customers and fulfill their needs.

Problem statement:

Pepsi and Coca Cola are two of the top manufacturers of CSDs (carbonated soft drinks) in the
world which are operating more than 100 years. These companies have different brands in cold
and also soft drinks. The strategies adopted by Pepsi are introducing new soft drink products,
Diversification, Aggressive advertising campaigns. And the strategies adopted by Coke are as,
Accelerated soft drink growth, broaden their family of beverage brands, Growth system
profitability and capability together with their bottling partners, Serve customers with creativity
and consistency, Direct investment to highest potential area across market, Drive efficiency and
cost effectiveness everywhere. Our local brand like gourmet and amrat cola etc are adopting
penetration pricing strategies there are may be some problems in distribution channels,
advertisement, and taste or in strategies etc.

The local brand is failure to capture high market share Pepsi and coke have approximately 94%
and remaining 06% is have local brands. Which is very low this is the problem why our local
brands have least worth?

SWOT Analysis of Production Department in PBC

Strength
 High experience staff involves in production process.
 High motivated staff
 To provide customer high quality products to customer.
 Production department work on the behalf of customer requirements
 Production department is back bone of PBC
 To pay the operators on daily basis.

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  Keno technology system of PBC is the competitive advantage in the market to reduce
time of production and improve quality
 Proper feedback to top management about the production issues.
 All departments (Factory) depend on the production department.
 Establish market linkage directly or indirectly with customers.
 Raw material is converting in finished products.
 Production department is ability to make customized products
 Traditional skill based with sufficient manpower resources
 Maintain the product consistency with the customer requirement
 Good working Coordination among top and lower worker level
 Control of quality in assembly line (example quality feedback, defects and root cause)
to share with upper management
 Working environment 5S + 1 implement in PBC
 Skilled labors will increase productivity
 Positive image of the PBC in the market
 Situated in an area where cheap labor is available
 Imported machinery use with in factory to improve efficiency
 High Financial Resources
 Management team is highly competent professional
 To become leader in beverages in domestic and Asian market and to achieve a highest
level of success
 To build the PBC on sound financial bases with better productivity, quality, and
improve production t stable cost by using latest technology
 The best profitable company by improving terms of quality, productivity, reliability, and
customer satisfaction
 Production department prepared many reports like (Daily production reports,
Efficiency reports, Faults reports, Inline reports, Packing reports)
Weakness
 De motivated employees
 No Promotional Activities because reference is prefer

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  Not enjoying the Economies of large scale in the market
 Centralized decision making.
 High labor cost and power & fuel cost
 Working environment is like a funfair (music and hooting of seniors)
 Every employee have own a culture
 Lack of training in organizations for workers, supervisors and managers.
 Same salary of all production employees that result no concept in PBC about senior &
junior.
 Poor linkages between customers to jointly resolve their problems.
 Inadequate up gradation in terms of efficient repair technology
 Poor management skills to improve the daily targets
 Production department is not focus on quality
 Inadequate levels of cooperation and trust between top to bottom
 Production department is major deficiency to maintain the quality
 Some time Production department is not follow up the quality department requirements
 The upper management of production department is not properly utilized the authority
 Production department is not utilized weekend holiday due to extra work load.
 No system developed to motivate the employee
 There is weakness in the quality system because mostly worker don’t follow them
 Lack of team work at managerial level. Group tasks are not given to the employees rather
they are assigned individual work load.
 No reward system is given to operators and all reward is divide in the management
Opportunities
 Production department is direct communicate with buyer
 Scope for effectively exploiting markets with phase out quota rule effectively
 Scope for Technology up gradation on equipment front
 Availability of core material for necessary up gradation.
 Scope to work together on various departments to enhance cost and quality
competitiveness

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  Scope to work together to some considerable cost reduction on the production
 Source from optimal sources in Pakistan and abroad and develop performance with
growth
 Scope to enhance efficiency, energy use and pollution issues by utilizing international
expertise
 Production department work on the behalf of buyer
 Production department can hire well educated and experience management staff to
improve efficiency
 Work efficiency increased
 Customer satisfaction
 Produced better quality products

Threats
 Filler Operator is not responsible for quality
 PBC is focused on production rather than quality
 Enhanced cost and quality competition from other competitor
 Inadequate direct information base on competitors as also local markets affecting
performance.
 Increasing cost of production when make defective products

SWOT Analysis of Quality Assurance Department in PBC

Strength
 High qualified and experience staff to check & assure the quality
 High motivated staff
 To provide customer defect free products
 To measure the organization quality system

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  Proper feedback to top management about the beverages quality
 Control of quality in assembly line (example quality feedback, defects and root cause)
 Different action checklist to improve the quality
 Identify the fault and find out the root cause in production department
 Maintain the product consistency with the customer requirement
 Reduce the fault rate
 Checking the suitability of material, process, syrup room, water treatment and packing.
 Establish fault rate recording system
 To give the quality awareness training
 Implementation of quality standard 9001, Ukas Quality System, Moody
 Use the military standard 105 E, for random sampling criteria for acceptance or rejection
 Quick detection and correction of inferior quality
 Protection and preservation of product quality during filling, storage and delivery.
 Good working Coordination among top and lower worker level

Weakness
 Quality assurance department work on the behalf of customer requirements
 Quality assurance department not properly utilized the authority
 Quality department diagnosis the faults in raw material, process and finished product but
approved it to use.
 QA staff mostly time consume in labs that result many problems incurred in production
and enhance the organization cost.
 QA is not utilized weekend holiday due to extra work load.
 No system developed to motivate the employee
 QA team identify the fault but no action taken against that department during daily work
 Due to the shortage of QA staff it is very difficult to check the daily production issues
 No corrective and preventive action taken to improve the quality of product in work flow
 There is weakness in the quality system because mostly worker don’t follow them
 AQL and OQL technique used 20 to 30% audit fail
 Boredom Office Environment Lack of Culture of Intrinsic Reward

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  Lack of team work at managerial level. Group tasks are not given to the employees rather
they are assigned individual work load.

Opportunity
 To help quality control and production department
 Direct communication with buyer
 QA department work on the behalf of buyer
 QA department can hire well educated and experience staff
 Internal auditors are opportunity to work on the behalf of buyer
 Work efficiency increased
 Produced better quality product
 Control excess damage
 Customer satisfaction

Threats
 Operator is not responsible for quality
 PBC is focused on production rather than quality
 Cost of poor quality is equal to zero if quality is not working actively

Recommendations:
About Production and Quality Department
 In the production hall, very concerned person must use masks, gloves and safety glasses.
 Earplugs should be provided to the people working in the production hall.
 Proper sitting room should be provided to CO2 supervisor to keep the spare parts, tools
and documents safely.
 Labor should wear neat and clean uniform.
 Skilled manpower availability is less in PBC that reduces productivity.
 It can be improved the efficiency by giving training to employees.
 When change the plan, time is directly affect the production cost
 Manpower Availability of Skilled labors is only in the range of 35%.

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  Proper arrangement should be for draining
 Many under 18 age boys are working in production
 Every problem is solved manufacturing
 Internal auditors have opportunity with systematic process like from the root of the
problem
 Different training courses should be arrange for improving the quality of work for staff
about six sigma and lean
 to work on the behalf of buyer if auditor are certified PCI.
 There is also a problem of work overload for the QA staff and it should be control
properly that employee have need motivated.

ANNEXES:

 www.Pepsi.com
 PEPSI Annual Reports
 www.wikipedia.com
 www.slideshare.net/mehmoonarafaqat/Pepsi-presentation

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