Report

On
Supply Chain Management of
 Report on
Supply Chain Management of
“Coca-Cola”
Submitted by:
Name Id Intake

Rizwan mahbub khan 12132101051 30th

Tanvin Sultana Ritu 11122101487 27th

Farjana Firoj 09102101032 21st

Submitted to:
Omor Faruk Ansari
Lecturer
Department of Marketing
Bangladesh University of Business & Technology

Bangladesh University of Business & Technology (BUBT)

Submission Date: September 18, 2016.

P a g e | ii
 Letter of transmittal

Date: September 18, 2016

Mr. Omor Faruk Ansari

Lecturer

Department of Marketing

Bangladesh University of Business & Technology (BUBT)

Subject: Submission of the Report on “Supply Chain management on Coca-

Cola” Company.

Dear Sir,
It is great to saying that finally we get ready to prepare the report on Customer Satisfaction on
Coca-Cola a ccording to your instruction as a part of course requirements. According to your
instruction our report should highlighted about the supply chain of coca-Cola. We ha ve
provided the findings that we have derived from our exploration in this product.

We are highly pleased to submit the final report. Your va luab le advice, suggestion a nd
guida nce have helped us to prepare the report with ease. We will be very glad, if you
kindly accept this report.

Sincerely Yours’
On Behalf of My Group

--------------------------------

Tanvin Sultana Ritu.

ID: 11122101487
Sec- MKT(A)
27th Intake
BBA Program
Bangladesh University of Business & Technology (BUBT)

P a g e | iii
Acknowledgement
First of all, we are thankful to Almighty Allah (The most gracious and the most powerful, the
knower of that’s seen and unseen), for giving us the courage and power to learn and to apply our
knowledge for the benefits of mankind. We would like to express profound gratitude to our
instructor or Cource teacher Sir Mr. Omor Farul Ansari, for their support, encouragement,
supervision and useful suggestions throughout this project work. We would not have been able to
finish this wonderful project without his support and guidance. Thank you for patiently guiding
us throughout this project and motivating us to work at our best. Group members are, Rizwan
Mahabub Khan, Farzana Firoz and Tanvin Sultana Ritu for the course of supply chain
management and the organization or company is the coca cola company. We are representing
Bangladesh University of Business & Technology (BUBT).

P a g e | iv
 TABLE OF CONTENTS

S.N. Chapter Topics Page No:

01 0 Executive Summery 7

02 01 Introduction 9-10

03 02 Supply Chain of Coca-cola Company 11-20

04 03 Major Findings 22

05 04 Recommendation 24

06 05 Conclusion 26
07 06 Bibliography 28

P age |v
 Abbreviation Elaboration

BUBT Bangladesh University of Business & Technology

4P’s Product, Price, Place, Promotion

4C’s Customer solution, Customer cost, Convenience, Communication

Abbreviations & Elaborations

P a g e | vi
 BBA Bachelor of Business Administration

Co. Company

Ltd. Limited

Executive Summary
The Coca-Cola Company is an American multinational beverage corporation and manufacturer,
retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered
in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in
1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and
brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who
incorporated The Coca- Cola Company in 1892. The company operates a franchised distribution
system dating from 1889 where The Coca-Cola Company only produces syrup concentrate
which is then sold to various bottlers throughout the world who hold an exclusive territory. The
Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. Its
stock is listed on the NYSE and is part of DJIA, S&P 500 index, the Russell 1000 Index and the
Russell 1000 Growth Stock Index. Its current chairman and CEO is Muhtar Kent. Coca-Cola
currently offers more than 500 brands in over 200 countries or territories and serves over 1.7
billion servings each day.
Over 146,000 employees around the world
 More than 1.7 billion servings per day
 More than 3500 kinds of beverages
 Sponsorship: Olympics, FIFA, EURO etc.

P a g e | vii
 Charity and contributions 1% from the total income
 The Coca Cola Foundation, 1984. Financial support for improving society
. 2002-2010 more than $690 millions of contribution and charity.
 The biggest contributions:
 Africa – 11 millions
 China Youth Development – 6 millions
 Institute of Business & Technology (IBT) Page 3
 Supply Chain Management of Coca Cola Company United Nations – 2 millions.

CHAPTER-1

INTRODUCTION

P a g e | viii
Introduction

Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.
He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with
carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s partner and

P a g e | ix
bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as
designing the trademarked, distinct script, still used today
Among the biggest challenges for early bottlers, were imitations of the beverage by competitors
coupled with a lack of packaging consistency among the 1,000 bottling plants at the time. The
bottlers agreed that a distinctive beverage needed a standard and distinctive bottle, and in 1916,
the bottlers approved the unique contour bottle. The new Coca-Cola bottle was so distinctive it
could be recognized in the dark and it effectively set the brand apart from competition. The
contoured Coca-Cola bottle was trademarked in 1977. Over the years, the Coca-Cola bottle has
been inspiration for artists across the globe — a sampling of which can be viewed at the World
of Coca-Cola in Atlanta. Check out a preview of the latest art exhibit.

Images of few of Coca Cola Company Brands

P age |x
P a g e | xi
 CHAPTER-2

Supply Chain according to Coca Cola Company Profile

Company Profile:

P a g e | xii
Vision
• To become the best place to work for people
• To present the world a quality beverage brand.
• To make a difference by helping, building and supporting sustainable communities.
• Being highly effective and fast moving organization

Mission
• To refresh the world and inspire moments of happiness and optimism.
• To create value and make a difference.
Values Leadership : The courage to shape a better future
Collaboration : Leverage collective genius
Integrity : Be real
Accountability : If it is to be, it's up to me
Passion : Committed in heart and mind
Diversity : As inclusive as our brands
Quality : What we do, we do well.

Supply Chain according to Coca Cola Company International

P a g e | xiii
Market Share by Coca-cola Company Worldwide

P a g e | xiv
P a g e | xv
Supply Chain Management of Coca Cola Company Competitive Strategy

P a g e | xvi
• Focus on aggressive marketing has been the cornerstone of the culture and strategy of its
business.
• Coca-Cola always made expansion efforts.
• Coca-Cola not only produces soft drinks but it also serves energy drinks, tea, juice drinks and
water.
• Acquisition for gaining competition advantage.
• The most important factor of the Coca Cola Company is its employees.
• Coca-Cola is selling its product to the multinational organizations like MC Donald's, KFC,
Sub-way, Dunkin Donuts and also keeping local market in focus.
• Coca-Cola is focusing on public by charitable contributions.
• Coca-Cola’ future development plays lead to increase in the interest are holders.

They are operating through push strategy of supply chain worldwide in the beverages industry.

Supply Chain Management of Coca Cola Company Global business is organized into six
geographic Operating departments:
1. Africa
2. Pacific
3. European Union
4. Latin America
5. Asia
6. North America

P a g e | xvii
Supply Chain Stages A typical supply chain may involve a variety of stages:
 Customers
 Retailers
 Wholesales/distributors
 Manufacturers/ Plants
 Component/raw material suppliers

P a g e | xviii
P a g e | xix
Supply chain overview
Our supply chain plays a central role in our business, ensuring that, in all our processes, we
minimize our environmental impact and ensure sustainability in our value chain.

We produce and distribute more than 2 billion unit cases of our products annually across our
territories. Our supply chain organization, which is responsible for the company's procurement,
planning, manufacturing and engineering, and sustainability, plays a central role in managing
this responsibly; making sure that in all our processes we minimize our environmental impact
and consider sustainability in our value chain - from sourcing raw materials and manufacturing
the end product to distributing it to our customers.

Our success lies with our people's expertise, our absolute focus on quality and our continuous
investment in advanced technologies.

Our mission is to become the leading supply chain function in our industry in terms of customer
service and cost efficiency. To achieve this, we focus our efforts on keeping our people engaged,
excelling in sustainability, reducing our costs and building best-in-class customer service and
responsiveness. Marcel Martin, Coca-Cola HBC Supply Chain Director

P a g e | xx
Top-in-class quality assurance

In our own business, we are developing a culture where quality is a core value across the entire
organization. We have re-stated our zero tolerance for failure to meet standards and deployed a
maturity continuum measurement to enable us to move our quality and food safety- focused
culture to the next level.

This approach extends to our suppliers, too. Coca-Cola HBC requires tier 1 suppliers to gain
certification to the following standards: ISO 9001 (quality), ISO 14001 (environment) and
OHSAS 18001 (health and safety). Ingredient and packaging suppliers must also achieve
certification to FSSC 22000 for food safety and the Global Food Safety Initiative (GFSI).

Quality and food safety remain our top priorities, to make sure we meet customer and consumer
expectations while delivering against our cost leadership commitments.

We have stringent processes in place to minimize the occurrence of quality issues. However,
when they do arise, we have robust processes and systems in place so we can deal with them
quickly and efficiently, ensuring that our customers and consumers retain confidence in o ur
products.

Investing in advanced technology to optimize infrastructure

We operate in a vast territory that stretches from County Kerry, Ireland, to Russia’s Pacific coast
and from the Arctic Circle to the tropics of Nigeria. While providing us with great opportunity,
this footprint also challenges us to constantly optimize our operational infrastructure.

Our aim is to build a borderless supply chain than will supply our territory at optimum cost and
have the capability to imbed innovative technologies, fast.

We’re investing in advanced technology to optimize our infrastructure, aiming to build or

transform our existing plants into efficient mega-plants that can effectively serve a country or an
entire region. Optimization like this takes into consideration the Group supply chain as a whole,
from the number of plants and the number and nature of our filling lines to how many
distribution centers and warehouses we have

P a g e | xxi
 CHAPTER-3

Major Findings

P a g e | xxii
 Majority consumer says that Coca-Cola keeps refreshing capacity & they also know the other
brands of soft drinks.

 Consumers take other Product occasionally when Product is not available in that place.

 Most of the consumer influences by the TV commercial & their most preferable TV
advertisement.

 Most of the customer soft drinks. They feel prestigious as well as mobility while they use
Coca-Cola

 Most of the customer gets product shop nearby home.

 Price and quality both are important for any product. Maximum number of customer does use
it for its reasonable price.

 Large portion of customer who are using Coca-Cola, cause of its quality and price.

 Consumer considers various matters when they take Coca-Cola. Such as color, taste, brand
image & price. But they prefer more “Brand image as well as taste”

 Most of the consumer who’s most preferable brand is Coca-Cola; they also want to change in
quality & taste of their brand. But they are very satisfied about the pricing strategy of Coca-
Cola.

P a g e | xxiii
 There are many drinks brand with different prices & bottle sizes in the market.

 The advertising is lower in media. In term of media spending, Check product spends more on
Coca-cola. Coca-Cola can compete with them by spending more money in media to
strengthen the image of their brand.

CHAPTER-4

Recommendation

P a g e | xxiv
The recommendation of Coca-Cola Company is based on performing various valuation models,
which include HR practices, economic profit analysis, relative valuation and a fundamental price
to earnings valuation model that revealed the Coca-Cola Company to be overvalued. Even
though they find the stock to be overvalued and they feel that KO has some promising outlooks
as well as possible challenges in the near future and they want to recommend it as a hold instead
of a sell.

The Coca-Cola Company is the #1 company within the non-alcoholic beverages industry. They
have a 20- year standing of being the leader and investors know that the Coca-Cola Company has
an extraordinary reputation for maximizing shareholder value.

Opportunities that exist for the company in the future is expanding market share in the non-
carbonated beverages segment, a restructuring of their business model, and better consistency of
earnings results.

A challenge that the Coca-Cola Company is facing is the struggle with their global competitors
in the fact that their HR practices are greater and less than coke. If coke wants to more reputation
in the world they must produce more incentives for employees from which they more done work
hard and produce good quality. Their new management team needs to work on implementing
cohesive goals between the two to reach the Coca-Cola Company's long-term growth potential.

P a g e | xxv
 CHAPTER-5

CONCLUSION

P a g e | xxvi
The demand of Coca-Cola is increasing day by day in developing countries like Bangladesh. It
removes our thirstiness & makes us fresh & comfort. With this taste and feelings is working to
provide the best quality product with a reasonable price. It is very much important for Coca-Cola
to ensure the customer satisfaction in surviving in this market as this is very competitive market
and customers are both quality & price sensitive.

P a g e | xxvii
 CHAPTR-6

P a g e | xxviii
 Bibliography

P a g e | xxix
 Coca-Cola
Websites (URLS):

www.coca-colacompany.com
Wikipedia
Google

[The END]

P a g e | xxx