Principal Of Management :

FINAL EXAM

Name : Jawwad Niaz

ID : 616-2019
Section : C2

(Date)
29 August 2021
QUESTION #1 : Suppose you are a newly hired Manager of Coca-Cola Company, and
your Head of Department had asked you to do a thorough research on the Cola-Cola in
order to better understand the Company’s environment. For that you are advised by your
HOD to do a SWOT analysis on Cola-Cola to understand its strengths, weaknesses,
Opportunities and threats.

ANSWERE 1 :

The Coca-Cola Company: A Short SWOT Analysis

 
The Coca-Cola Company (KO - Free Coca-Cola Stock Report) appears set to plod
along during its 2015 campaign. In that vein, a stronger U.S. dollar has hindered overall
profitability. This year, the company’s pre-tax profits are likely to decline in the high-
single-digit neighborhood, meaning share net may fail to reach last year’s mark of $2.04.
Further, recent volumes indicate the top line will probably remain largely muted,
especially in developed markets, as health-conscious consumers continue to shy away
from beverages containing elevated levels of sugar or artificial sweeteners. Thus, Coca-
Cola has taken steps to address these concerns. In an effort to right the ship, the beverage
maker has ramped up its marketing, advertising, and promotional activities. Although
these actions ought to positively impact results, it may take some time for recent
measures to take root.
Investors evaluating a position in Coca-Cola will notice that the equity has mostly been
stuck in neutral over the last couple of years, displaying support around the $37.00 mark
and hitting resistance around $44.00. Despite lacking explosive growth potential for the
foreseeable future, this issue maintains many solid qualities. These shares offer accounts
worthwhile risk-adjusted return. Indeed, the stock boasts a dividend yield above the
present Value Line median. In addition, conservative investors should note KO garners
our Highest rank (1) for Safety, which is primarily owed to the company’s strong
Financial Strength rating (A++).
Therefore, these factors leave us asking a couple of questions. First, will the company be
able to overcome current top- and bottom-line obstacles? And, is this issue a good pick
for the long term? We will address these issues by performing an easy-to-follow SWOT
analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and
Threats.
The Business
The Coca-Cola Company, founded in Georgia in 1892 and incorporated in 1919, is the
world's largest beverage company. It owns/licenses and markets more than 500
nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still
beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas
and coffees, and energy and sports drinks. In addition, the business owns and markets
four of the world's top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet
Coke, Fanta and Sprite. Finished beverage products bearing the company’s trademarks,
sold in the United States since 1886, are now sold in more than 200 countries.
Coca-Cola makes its branded beverage products available to consumers throughout the
world via a network of company-owned or -controlled bottling and distribution
operations as well as independent bottling partners, distributors, wholesalers and retailers
— the world's largest beverage distribution system. Beverages bearing trademarks owned
by or licensed to KO account for 1.9 billion of the approximately 57 billion servings of
all beverages consumed worldwide every day
.
Strengths
Brand Awareness : The Coca-Cola Company is one of the most widely recognized
brands across the globe. Its signature logo, classic red & white colors, and world-famous
jingle resonate with consumers of all ages. There are two key players in this sector of the
beverage business, one being Coca-Cola, while the other remains PepsiCo, Inc. (PEP).
That said, Coca-Cola maintains its position in the top post as the clear-cut winner.
Although both businesses constantly jockey for increased market share, Coca-Cola has
the edge here. The beverage producer also garners a core following customers, as many
consumers that deem themselves fans of its products tend not to shift toward other
brands. Going forward, the company’s vast financial resources ought to fuel its sizable
marketing efforts and increased product innovation, which should propel market-share
gains over the long haul.
Robust Distribution Network : Coca-Cola makes its products available to individuals in
more than 200 countries through the world’s largest distribution network. Its ability to
utilize company-owned/-controlled distributors, as well as independent bottlers,
wholesalers, and retailers has no parallel. This system enables KO to closely manage
costs, rapidly introduce new items into the marketplace, and saturate various geographic
locations. Moreover, its meaningful network allows for an enhanced level of quality
control and safety for its goods. The stable distribution platform has been a boon for
expansion in recent years, as the company has sought to reach new customers in remote
locations. These diverse operations have aided market presence, volumes, deliveries, and
product introductions during a crucial span.
Weaknesses
Water Management: Water is a main ingredient in substantially all of the company’s
products. It is vital to the production of the agricultural ingredients on which the business
relies and is needed in KO’s core manufacturing processes. Also, this resource is critical
to the prosperity of the communities Coca-Cola serves. Water is a limited resource in
many parts of the world, facing unprecedented challenges from overexploitation, as well
as rising demand for food and other consumer and industrial products whose
manufacturing processes require water. These events increase the risk of pollution, poor
management, and effects stemming from climate change. As the demand for water
continues to climb around the world, and water becomes scarcer, the overall quality of
available water sources may very well deteriorate markedly, leaving the Coca-Cola
system to incur higher costs or face capacity constraints that could adversely affect its
profitability or net operating revenues in the long run.
Foreign Currency Fluctuation: The company earns revenues, pays expenses, owns assets,
and incurs liabilities in countries using currencies other than the U.S. dollar, including the
euro, the Japanese yen, the Brazilian real, and the Mexican peso. In 2014, it used 70
functional currencies in addition to the U.S. dollar and derived $26.2 billion of net
operating revenues from operations outside the United States. Because its consolidated
financial statements are presented in U.S. dollars, Coca-Cola must translate revenues,
income and expenses, as well as assets and liabilities, into U.S. dollars at exchange rates
in effect during or at the end of each reporting period. Therefore, increases or decreases
in the value of the U.S. dollar against other major currencies affect its net operating
revenues, operating income, and the value of balance sheet items denominated in foreign
currencies. In addition, unexpected and dramatic devaluations of currencies in developing
or emerging markets could negatively affect the value of the beverage provider’s
earnings from, and of the assets located in, those markets. Weaknesses in some currencies
might be offset by strengths in others over time due to the geographic diversity of the
company’s operations. Moreover, KO also employs derivative financial instruments to
further reduce its net exposure to foreign currency exchange rate fluctuations. However,
it cannot fully hedge the impact from fluctuations in foreign currency exchange rates,
particularly the strengthening of the U.S. dollar against major currencies or the currencies
of large developing countries.
Opportunities
Diversification: The company has been hard at work utilizing its ample war chest to build
a presence in rapidly-growing beverage categories. Currently, it owns 16% of Keurig
Green Mountain and is developing a fresh Keurig Kold device that is set to debut this
fall. Keurig, famous for pod-based, hot drinks intends to feature Coke-branded products
for its upcoming platform. In addition, Coca-Cola recently finalized its purchase of a
17% stake in Monster Beverage. The deal provides the company with access to a popular
energy drink growth segment. All told, we anticipate these transactions will bolster the
top and bottom lines immediately. These joint ventures also deliver Coca-Cola with
established inroads to a younger customer base. Looking ahead, KO will probably aim to
forge increased relationships with coffee, energy, and health drink businesses.
Extended Reach: The population continues to increase at a steady clip. In order to
capitalize on this fact and consumers’ shift toward healthier living Coca-Cola has focused
on bolstering a variety of its business lines. Areas such as India and China have ramped
up demand for the company’s latest juice and coffee offerings. Too, developing countries
face hefty clean water shortages, which ought to result in surging demand for the
company’s bottled water goods. These business segments have increased at double-digit
rates in the past year, highlighting an elevated need for beverages other than Coca-Cola’s
traditional drinks. We believe Coca-Cola remains dedicated to differentiating its portfolio
and delivering emerging markets with various beverage staples over the long term.
Threats
Nutritious Selections: It’s been no secret that soft drink providers have suffered some of
late. A cultural shift toward natural and organic products has led many to opt for
nutritional waters, smoothies, and various healthy beverage options. Thus, core soda
offerings that include high amounts of sugar, or diet items with artificial sweeteners, have
fallen out of favor with buyers. What’s more, this trend does not seem likely to abate, as
consumers continue to boost their knowledge of proper dietary requirements and exercise
programs. Further, many health professionals have called for the elimination of foods and
beverages containing lofty amounts of sugar, since these products place individuals at an
elevated risk of becoming obese, developing diabetes, and suffering from heart disease.
Also, a negative perception of these beverages has surged due to federal regulators’
desire to place excess taxes on sodas and sugary soft drinks.
Indirect Competition: Although companies such as Starbucks (SBUX) and Dunkin’
Brands Group (DNKN) do not compete directly with Coca-Cola, these businesses do
place a dent in the company’s market share. The chains offer customers healthier
alternatives, unique choices, and customer loyalty rewards that are not easily matched by
Coca-Cola. In addition, smaller franchises and retail chains provide patrons with private-
label substitutes for traditional Coke products, which allows these businesses to deliver
beverages at a lower price. Industry data suggest potential customers will continue to be
pulled away from basic drink selections in favor of customizable options that carry a
greater nutritional benefit.

Conclusion
While the number of challenges facing Coca-Cola are abundant, this company does
possess a good deal of promise for the future. Its overall size, leverage, and financial
resources have it well positioned to take advantage of worthwhile acquisition targets.
Too, the company’s brand appeal and cult-like following insure that it will probably
remain a top-tier beverage provider going forward. Coca-Cola’s vast distribution network
should enable better volumes ahead and success in burgeoning markets. All told,
conservative investors wanting a reliable source of income and a bit of capital gains
exposure might want to give The Coca-Cola Company a glance. 
Question# 2 : Prepare a BCG Matrix on the Unilever Company. You are required to
choose any four products (active or inactive) from company’s offerings and place them
where they fits the best as per their specifications. Explain the reasons of choosing
particular product for any particular category.

Answer 2 :

UNILEVER: BCG MATRIX

Unilever is officially the world’s third largest consumer goods company, behind Procter
& Gamble and Nestle, having generated a turnover of €49.8 billion in 2013, across its
staggering 400+ brands. It is often said however that the company focuses on just 14
brands – those that each generate sales of €1+ billion. If this were the case, the question
arises as to why Unilever retains such a large portfolio of brands and why future
“selective acquisition” is highlighted in its most recent annual report?

To answer this question, the Boston Consulting Group (BCG) Matrix (also known as the
‘Boston Matrix’) is a very useful marketing tool in understanding portfolio management.
The premise of the BCG Matrix is that all products or brands can be classified as one of
the following categories, based on its market share and market growth:
STAR PRODUCTS :

 High growth rate high market share

LUUX

SUNSILK

FAIR & LOVELY

WALL’S
CASH COWS :

 Low Growth Share and High Market Share

SURF EXCEL

POND

LIPTON

CLOSE UP

DOGS :

 Low growth rate and Low market share.

WHEEL

SUPREMA TEA

LIFE BOY SHAMPO O

QUESTION MARK :

 High growth rate low market share

CLEAR SHAMPOO

RIN

COMFORT
QUESTION #3 : Suppose you are entering in the market as first Mover, choose
the unique product that you would want to enter with in the market. Describe the
challenges that first movers face in the market, and also describe the benefits and
costs of being a first mover in the market

ANSWER :

The sensor which measures water content in a soil is known as moisture sensor.
A probe contains multiple such sensors. It helps in managing irrigation systems
more effectively and efficiently.

It helps farmers to save water, to increase yields and to increase quality of the
crop. The figure-1 depicts SM150 moisture sensor used for soil moisture
measurement.

Following are the advantages of Moisture sensor for soil :

➨Simple method of measurement.

➨It delivers the results immediately.

➨Watermark sensors and tensiometers are very low in cost.

➨Offers accurate results.

➨Watermark sensors offer larger moisture reading range from 0 to 200 cb or kpa
Following are the disadvantages of Moisture sensor for soil:

➨It requires initial evaluation of site specific conditions before selection of

appropriate moisture sensor.

➨It requires probe to be inserted in the soil. It requires labor to collect the data
and maintain the measurement processes.

➨The measured values depend on properties of various materials. The correct

interpretation and use of moisture data is needed.

➨Watermark sensors provide less accuracy in sandy soils due to large particles.

➨Watermark sensors are required to be calibrated for each soil types.

Tensiometers also require periodic service.

As shown two sensing rods are attached with plastic body. These rods are inserted
directly into the soil for test and measurement. It produces differential analog DC
voltage output.

When power is applied to the probe, it creates waveform which is applied to rods.
These rods transmit EM field into the soil. The permittivity of soil affects the
applied field strongly which is detected by the probe. As a result it produces
stable voltage output.

\
QUESTION #4 : You are being hired as an HR Manager in the XYZ Company and
CEO of company had asked you to prepare a motivating jobs for employees of the
company. Define how many jobs you can design? And describe each job in your own
words by providing examples. Also describe the consequences of designing motivating
jobs and their benefits after implementation.

ANSWER : Supporting a work environment that motivates employees is one of the most
important things within any business. 
If you don’t have motivated employees to put forth the effort required to do well, it’s
likely that your company will face some challenges. Employees are with you to keep
your business running and moving forward, but if you don’t encourage employee
motivation, the business is likely to remain stagnant — or worse: begin to decline.
However, you can work to combat these issues by designing a job that provides ongoing
motivation.
Job Design is a psychological theory of motivation that is defined as the systematic and
purposeful allocation of tasks to groups and individuals within an organization. The five
core characteristics of job design are skill variety, task identity, task significance,
autonomy, and job feedback. Including these characteristics in your jobs affects the
following work-related outcomes — motivation, satisfaction, performance, absenteeism,
and turnover.
Let’s dive deeper into each of these characteristics to help you design a truly motivational
job.

Skill Variety
This refers to the range of abilities needed to perform a job. Monotony is not what many
people look for in their dream job; conversely, employees want to be able to enlist
various skills throughout their employment so as to not get bored. Employee motivation
will increase if your team members are using a variety of diverse skills in their positions,
rather than one set skill repeatedly.
You can introduce more skill variety to your roles through job shadowing opportunities
and extended learning courses, or by encouraging cross-collaboration with other teams in
your organization. 
Task Identity
Task identity means the extent to which a job involves completing an identifiable piece of
work from start to finish, with a visible outcome. Motivated employees will be more
likely to complete tasks if they identify with them and have seen them through from start
to finish.
And if you encourage employees to identify with a task, they are more motivated to
complete it and achieve the outcome. Employees who contribute a small piece to multiple
projects, but never see the outcome will identify less with their work, creating lower
employee motivation.
Many specialized jobs are low in task identity because employees are responsible for
only one facet of a larger project. In this case, make sure that their piece of the larger
project has a beginning and end that they can measure completion against.

Task Significance
The extent to which a job is important to and impacts others within and outside of the
organization is known as task significance. When employees feel that their work is
significant to their organization, they are motivated to do well and this will lead to
increased employee productivity. If they feel that their work is going unnoticed, or isn’t
affecting anyone, this will cause employee engagement to take a hit and your team will
be less motivated to complete tasks. In fact, 79% of employees who quit their jobs claim
that a lack of appreciation was a major reason for leaving.
Every employee is essential to your operations, so each role should be given proper
recognition. At Hireology, we hold weekly all-company meetings to clue in every single
team member on business performance. We also announce employee-submitted shoutouts
to ensure each of our team members feels recognized and appreciated. 

Autonomy
Autonomy measures each employee’s level of freedom and ability to schedule tasks.
Employees like to be able to make decisions and have flexibility in their roles. Most
employees will have lowered motivation if they feel they have no freedom or are being
micromanaged. A certain level of autonomy can lead to an improved employee
experience and, as a result, a boost in productivity.
When an employee’s success depends on their own capabilities and drive, they feel a
greater sense of responsibility for their efforts. You can give any role more autonomy by
encouraging employee independence and personal responsibility for projects and their
day-to-day activities. If you traditionally run a tight ship, it may seem difficult to hand off
responsibility, but it will make your team more motivated and productive.
Job Feedback
This refers to the degree to which an employee receives direct feedback on their
performance. Your team needs feedback in order to motivate employees long-term.
Managers need to provide feedback on performance throughout each employee’s tenure,
and not just at an annual or biannual performance review.
Recurring one-on-one meetings between employees and their managers will create a
consistent avenue for communication, including feedback on projects and performance.   
 

All in all, employee motivation comes from many areas. While employees need to have
some intrinsic — or internal — motivation to complete the tasks assigned to them, they
also need to be motivated by their employers. By designing jobs that encompass all of the
core characteristics, you can help increase employee motivation, in turn improving
performance.
If you’d like to see how Hireology can help your business with all aspects of the hiring
process, schedule a demo here.