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Internship Report on Coca Cola

By
Muhammad Waqas MB-05-29

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 DEDICATED TO

My father
&
All those praying hands that made me
What I am today
&
To those for whom I never forget to pray

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 Table of Contents
PREFACE___________________________________________________________5

ACKNOWLEDGEMENT_______________________________________________6

Executive Summary____________________________________________________7

Chairman’s Message__________________________________________________10

Beverage Industry in Pakistan__________________________________________12

Introduction of Coca-Cola______________________________________________13

Operational Structure All Over the World_________________________________13

History of “The Coca-Cola Company”____________________________________17

Introduction to Coca-cola beverages Pakistan Limited (CCBPL)_______________21

Data Flow Diagram___________________________________________________26

Operational and Managing Structure of__________________________________34

Multan Plant________________________________________________________34

Business Operations Manager (BOM)____________________________________34

Structure of Multan plant______________________________________________34

Chillers Verification Project____________________________________________54

SWOT Analysis______________________________________________________55

Suggestions for Further Improvement___________________________________58

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 PREFACE

This report is an evidence of the efforts that I put to get practical experience in a well-
reputed firm as per requirements of internship of MBA. Because it is true that the real
charm of this program cannot be achieved without proper practical experience.
Through this internship I got first touch of professional exposure of the roles, which I
will have to play in future in my professional career. The students not only
acclimatize themselves to the corporate environment but also learn to assume
responsibility, co-operation and teamwork the hallmarks of modern management.
Having experience of Beverage industry is really a good experience for me. I am
submitting all my experiences. No doubt, omissions and errors are expected but it is
requested to ignore the nominal errors.
In Beverage Industry, I was lucky enough to get a chance of doing internship in a firm
like Coca-Cola, which is leader in non-alcoholic drinks suppliers in whole global
market. I learnt a lot about the practical business and above all, the mental discipline
and awareness, which are the most useful tools for an executive to raise the
organizational structure.

Muhammad Waqas

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 ACKNOWLEDGEMENT

Up and above every thing, all praise goes to ALMIGHTY ALLAH, the most
merciful and the most beneficent.
We are thankful to ALMIGHTY ALLAH who made us able to complete this report.
It is due to His unending mercy that this work moved toward success.
We expressed our heartiest thanks and gratitude to Mr. Raza Ali for his
encouragement and guidance, invaluable and inspiration and healthy criticism towards
handling the project effectively and comprehensively. I feel utmost pride in
acknowledging with sincere gratitude for the valuable guidance I have received from
my all teachers.
Furthermore I am thankful to all the executives and the whole staff of the company
for their co-operation and guidance during my internship at CCBPL Multan plant. I
am also very much thankful to:

Mr. Usman Butt (General Manager)

Mr. Abid Sheikh (Manager Accounts)
Mr. Athar Baig (Assistant Manager Accounts)
Mr. Amjad Malik (Logistic Manager)
and all the members of staff (especially MROs, MDOs and other people of
Marketing and Accounts Department), which greatly cooperated with me in order to
complete my project during this period. In the end I am also thankful to all the other
people that I met in market while doing this project.

Muhammad Waqas

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 Executive Summary

The Coca-Cola Company is the world's leading manufacturer, marketer, and

distributor of nonalcoholic beverage concentrates and syrups, with world headquarters
in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people
around the world. Syrups, concentrates and beverage bases for Coca-Cola, the
Company's flagship brand, and over 230 other Company soft-drink brands are
manufactured and sold by The Coca-Cola Company and its subsidiaries in nearly 200
countries around the world. The Coca-Cola Company continues to sponsor the world's
most exciting sports events, including World Cup Soccer, the National Football
League, National Basketball Association, NASCAR, the Tour de France, the Rugby
World Cup, COPA America and numerous local sports teams. One of The Coca-Cola
Company's greatest strengths lies in its ability to “conduct business on a global scale
while maintaining a local approach”.
Coca-Cola is the world's leading manufacturer, marketer and distributor of
nonalcoholic beverage concentrates and syrups. Company manufactures beverage
concentrates and syrups and, in certain instances, finished beverages, which we sell to
bottling and canning operations, authorized fountain wholesalers and some fountain
retailers. They also market and distribute juice and juice-drink products. In addition,
they also have ownership interests in numerous bottling and canning operations.
They compete in the nonalcoholic ready-to-drink beverage business. Their offerings
in this category include some of the world's most valuable brands, 232 in all. These
include soft drinks and non-carbonated beverages such as sports drinks, juice and
juice drinks, water products, teas and coffees. As discussed earlier, to meet their long-
term growth objectives, they make significant investments to support their brands.
This involves investments to support existing brands and to acquire new brands, when
appropriate.
The coca-cola company started his business in Pakistan in 1960.All business activities
in Pakistan are monitored by “The coca-cola export corporation” (TCCEC). Head
office of TCCEC is in Karachi at that time but now days it is shifted to Lahore. But
this TCCEC only monitored business activities, this company issued license for plants
in different cities of Pakistan to start production according to company standard.

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In 1990 decided for acquisition worldwide. Actually they are operated their business
through joint venture, now they decided for acquisition. That’s why in 1996 “The
Coca-Cola Company” buys the Karachi plant, at that time TCCEC decided to form a
new company to monitor the operation of bottling in Pakistan. So “Coca-Cola
beverages Pakistan limited” (CCBPL) is the company, which is responsible to
monitor the operations of bottling in Pakistan. Some time people says that there is no
difference in CCBPL and TCCEC, but the basic difference between both companies is
that CCBPL is responsible for bottling operations and TCCEC is responsible for
marketing and corporate decision world wide.
On the whole Sales and Marketing Department is consisting of about 40 permanent
and temporary employees. As mentioned in the organ gram of the CCBPL, Multan
Plant Mr. Irfan Butt was the Head of the department during my internship program.
He is a competent person in the field of marketing. As mentioned in the organ gram of
Marketing Department it is basically a subpart of Sales and Marketing Department.
Basically the task is divided into two parts on is Sales and the other is Marketing.
Marketing in CCBPL means the co-ordination of the sales department. The basic task
of the marketing department is the distribution and checking of company assets in the
market in the form of Deep Freezer, Visi Cooler, and Chest Cooler or in the form of
Cabins, boards, hoardings etc.
Accounts Department is responsible for proper flow of cash and for the controlling of
financial assets of the organization. The budget is allocated by TCCEC (The Coca-
Cola Export Corporation) for the period of month or two and finance manager of
TCCEC used to come there to check the financial activities. On the whole Finance
Department consists of 16 (Sixteen Employees).
Logistic department is basically the combination of two departments these are Fleet
and shipping department. The whole transports and vehicles are arranged and
maintained by Fleet department. And shipping department is responsible for the
maintenance of inventory of empty bottles. On the whole logistic department is
consists of 27 permanent employees. And rest of the employees work on daily wages.

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After take over of the company in late 90s, progressive management enables the
organization to increase the profitability continuously in last many years and the
company is continuously increasing its market share consistently. Increase in profits
and sales volume is shown in financial analysis of the firm and it is indicating that
firm is achieving more and more effectiveness day by day.
I spent about 8 weeks in the plant. During this period, I got a lot of practical
knowledge in various fields. Especially I got a chance to practically work in market
and apply all those concepts in reality that I learnt in my MBA program. I worked as
an active member of the team that was working on “Chiller Verification Project”. This
project was basically a check on the Market Development Officers to see whether the
assets of the company are present in market in proper shape or not. Another objective
was to minimize the misuse of these assets.

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Chairman’s Message

E. Neville Isdell

I am pleased with the progress we made in 2005 toward our goal of delivering
consistent, sustainable growth. In 2005, both profits and unit case volume reached a
record high, and our employee morale improved. Our Manifesto for Growth has set
our strategic road map, and the engagement of our people has given us a solid start.

Sustainable growth is how The Coca-Cola Company will regain its position as the
beverage provider of choice for consumers, the employer of choice for our people, the
partner of choice for our customers and the investment of choice for our shareowners.

We understand the unspoken agreement between our Company and those who choose
to purchase and consume our products every day around the world. We understand
our responsibilities as an engaged citizen of the world. We believe we lead a system
that creates value and makes a positive difference everywhere it does business. Taken
as a whole, the Coca-Cola system--comprising The Coca-Cola Company and our
bottling partners--is one of the largest consumer products enterprises in the world,
with hundreds of thousands of employees and an estimated $80 billion in revenue.

My priority in 2005 was to continue building on this unrivaled foundation to deliver

long-term sustainable growth while being mindful of our short-term commitments.
Our work is far from finished, but as we've moved from words to deeds and from
plans to actions, the initial impact of our efforts shows clearly in our 2005 results.

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In 2005, our Company earned $2.04 per share, an increase of $0.04--2 percent--over
2004. Volume grew 4 percent to 20.6 billion unit cases, and net operating revenues
grew 6 percent to $23.1 billion. Through Our Manifesto for Growth, we identified
strategic corridors for expansion to complement our core carbonated soft-drink
business. We more effectively integrated marketing, strategy and innovation while
reinvesting an incremental $400 million in those capabilities. And we introduced new
products--capturing greater share--in juice and juice drinks, water, energy drinks and
sports drinks

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Beverage Industry in Pakistan
The beverage industry of Pakistan has become a play ground for many firms
like Coke, Pepsi, RC Cola, Amrat Cola, Double Cola and many others newly
introduced local companies. But only two companies share most of the market share,
Pepsi and Coke. These two companies jointly are enjoying a market share of more
than 90%. But still a very huge share of this market is still uncovered. But in covered
areas, it can be said both the dominant companies are facing very stiff competition
from each one another.
The newly introduced brands are still disable to find a stable position yet and
still most of them are not considered as real competitors of these two players on any
base, product quality, availability, visibility or promotion.
The positioning of these two well-known brands is almost same. A huge part
of the market is still unable to differentiate between these two products and they are
considered as perfect substitute of one another. On the other hand the other new
brands like Amrat Cola, Double Cola, Makkah Cola etc. are still considered as
inferior on basis of quality. This is one of the reasons why these brands are still
unable to create their market and capture the share of these two giants of the industry.
The religious campaigns against these two brands that were carried on by some of the
religious groups in near-past acted as a break-through for these newly introduced
brands but they could not make the best use of this opportunity and therefore they are
still struggling in the market. But it cannot be said that these campaigns were wholly
failed and could not disturb the business of these two firms. A negative image of
Pepsi has created in minds of some religious people dew to its affiliation with Israel.
So, it can be said that there are only two main competitors in this industry in
Pakistan like most of the other countries of the world. But the statistics of this
industry are very much different in this market from most of the other countries. Coca
Cola is unlikely not the biggest player and Pepsi is having a very clear lead as it is
having in most of the South Asian countries. Pepsi is claiming a market share of about
75% of the total market; on the other hand Coke is claiming a market share of about
28% to 30%. And both the competitors are also claiming that their market share is
increasing rapidly.

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Introduction of Coca-Cola

The Coca-Cola Company is the world’s largest beverage company, generating

$23.104 billion in net operating revenues in 2005 as compare to $22 in previous year.
The Coca-Cola Company markets four of the world’s top-five soft-drink brands—
Coca-Cola, diet Coke, Sprite and Fanta. And now currently the company has offered
two new products in this market, Sprite 3G and Fanta Citrus. Sprite 3G is doing its
business successfully and meeting the expectations of the management by capturing
market share of “Dew” quickly but on the other hand the second newly introduced
product is not meeting the expectations and still struggling to find out a proper place
in the market but it is expected that the company may stop its production of this
product in near future. Their beverage offerings encompass nearly 400 brands,
including coffees and teas, juices and juice drinks, sports drinks and waters as well as
carbonated soft drinks. With operations in more than 200 countries, they have a
diverse workforce of approximately 50,000 individuals. Together with their
subsidiaries and bottling partners, they strive to be an integral and contributing
member of each of the communities where they operate.

The Coca-Cola Company is the world's leading manufacturer, marketer, and

distributor of nonalcoholic beverage concentrates and syrups, with world headquarters
in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people
around the world. Syrups, concentrates and beverage bases for Coca-Cola, the
Company's flagship brand, and over 230 other Company soft-drink brands are
manufactured and sold by The Coca-Cola Company and its subsidiaries in nearly 200
countries around the world.
By contract with The Coca-Cola Company or its local subsidiaries, local businesses
are authorized to bottle and sell Company soft drinks within certain territorial
boundaries and under conditions that ensure the highest standards of quality and
uniformity.

Operational Structure All Over the World

The Company's operating management structure consists of five geographic groups.

The North America Group comprises the United States and Canada. The Latin

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America Group includes the Company's operations across Central and South America,
from Mexico to the tip of Argentina. The Greater Europe Group stretches from
Greenland to Russia's Far East, including some of the most established markets in
Western Europe and the rapidly growing nations of Eastern and Central Europe. The
Africa and Middle East Group encompasses the Middle East and the entire continent
of Africa. The Asia Pacific Group has operations from India through the Pacific
region including China, Japan, and Australia.
In past it was seen that the company was paying more attention to European and
American region but now it is recognized that the Middle East region is much more
attractive as compare to those areas due to intensity of population and some such
markets which are still not captured by any of the firm. So, now the firm is paying
more attention towards these areas to increase market share of the company in these
countries. The visit of chairman in 2005 is an evidence of this fact that company is
now focusing on this region to maximize its share in this market. According to the
management of the firm, they are working on a plan to achieve about 50% of the
market share by 2011.

MISSION OF COCA-COLA COMPANY

From their heritage to their mission to the people who bring their products to thirsty
consumers, The Coca-Cola Company is a part of lives everywhere.
Their Mission is
“To Maximize Share-Owner Value over Time.”
In order to achieve this mission, they must create value for all the constituents they
serve, including their consumers, their customers, their bottlers and their
communities. The Coca-Cola Company creates value by executing a comprehensive
business strategy guided by six key beliefs:
 Consumer demand drives everything they do.
 Brand Coca-Cola is the core of their business.
 They will serve consumers a broad selection of the nonalcoholic ready-to-drink
beverages they want to drink throughout the day.
 They will be the best marketers in the world.
 They will think and act locally.
 They will lead as a model corporate citizen

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OBJECTIVE
The ultimate objectives of their business strategy are to increase volume, expand their
share of worldwide nonalcoholic ready-to-drink beverage sales, maximize their long-
term cash flows, create economic-value-added by improving economic profit and
creating such an image of the company that the consumers start differentiating their
product from other competitors.
The Coca-Cola system has more than 16 million customers around the world that sell
or serve their products directly to consumers. They keenly focus on enhancing value
for these customers and helping them grow their beverage businesses. They strive to
understand each customer's business and needs, whether that customer is a
sophisticated retailer in a developed market or a kiosk owner in an emerging market.
There are nearly six billion people in the world who are potential consumers of their
Company's products.
Their success in achieving their mission depends on their ability to satisfy more of
their beverage consumption demands and their ability to add value for their
customers. They achieve this when they place the right products in the right markets
at the right time.
Ultimately, their basic task to perform in a market like Pakistan should be to confirm
the availability the products all over the country because it is observed that one of the
main reason of low market share of this brand in Pakistan is unavailability of the
products in most of the areas.
The company stock
The Coca-Cola Company stock, with ticker symbol KO, is listed and traded in the
United States on the New York Stock Exchange. Common stock also is traded on the
Boston, Cincinnati, Chicago, Pacific and Philadelphia exchanges. Outside the United
States, Company common stock is listed and traded on German and Swiss stock
exchanges.
SOCIAL RESPONSIVENESS
The Coca-Cola Company has a commitment, more than a century old, to social
responsibility through philanthropy and good citizenship. The Company's reputation
for good corporate citizenship results from charitable donations, employee

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volunteerism, technical assistance and other demonstrations of support in thousands
of communities worldwide.
The Coca-Cola Company continues to sponsor the world's most exciting sports
events, including World Cup Soccer, the National Football League, National
Basketball Association, NASCAR, the Tour de France, the Rugby World Cup, COPA
America and numerous local sports teams. The Coca-Cola Company has sponsored
the Olympic games since 1928.
BOTTLERS SYSTEM
One of The Coca-Cola Company's greatest strengths lies in its ability to conduct
business on a global scale while maintaining a local approach. At the heart of this
approach is the bottler system.
Their Company has business relationships with three types of bottlers:
(1) Independently owned bottlers, in which they have no ownership interest;
(2) Bottlers in which they have invested and have a no controlling ownership
interest; and
(3) Bottlers in which they have invested and have a controlling ownership
interest.
During 1999, independently owned bottling operations produced and distributed
approximately 27 percent of our worldwide unit case volume. Bottlers in which they
own a no controlling ownership interest produced and distributed approximately 58
percent of our 1999 worldwide unit case volume. Controlled bottling and fountain
operations produced and distributed approximately 15 percent.
They view certain bottling operations in which they have a no controlling ownership
interest as key or anchor bottlers due to their level of responsibility and performance.
The strong commitment of both key and anchor bottlers to their own profitable
volume growth help them meet their strategic goals and further the interests of their
worldwide production, distribution and marketing systems. These bottlers tend to be
large and geographically diverse, with strong financial resources for long-term
investment and strong management resources. These bottlers give them strategic
business partners on every major continent.
BRANDS OF “THE COCA-COLA COMPANY”
The Coca-Cola Company is the world’s largest beverage company, generating $23.0
billion in net operating revenues in 2005. The Coca-Cola Company markets four of

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the world’s top-five soft-drink brands—Coca-Cola, diet Coke, Sprite and Fanta. Their
beverage offerings encompass nearly 400 brands, including coffees and teas, juices
and juice drinks, sports drinks and waters as well as carbonated soft drinks with
operations in more than 200 countries. The products of The Coca-Cola Company
touch lives everywhere. Their core brands have made an impact around the world;
brands such as Fanta, Sprite and off course, Coca-Cola, are available and recognized
in many countries. Each of their other brands is distributed in one or more countries,
and is tailored to the cultures and tastes of those consumers. So wherever you are,
you're sure to find a Coca-Cola product to enjoy. The main product range is as
fellows:
 Coca-Cola classic
 Diet coke
 Cherry coke
 Diet cherry coke
 Minute maid orange
 Sprite
 Sprite 3G
 Fanta
 Fanta Citrus
 Fanta Strawberry
And many others, which are still not introduced in subcontinent due to several
reasons.

History of “The Coca-Cola Company”

Dr. John Stith Pemberton invented Coca-cola in 1886. It was the doctor’s second
drink with coca leaves and the kola nut as a basis. The doctor’s first
coca leaf drink, Pemberton's French Wine Coca, was actually an
imitation of Vin Mariani, a coca-wine drink invented by Angelo
Mariani in 1883. Although there were several imitators of the French
Coca-Wine, Pemberton's formula was superior. He was actually
quoted saying

"I believe that I am now producing a better preparation than that of Mariani."

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Pemberton was not very good health, not to mention he was a morphine addict. So in
1887 he began to sell parts of the company off. On July 8th he sold a third of the
company to Willis Venable and another third to George Lowndes. Either man had the
time to market, make or sell Coke so they sold their portion of the company to
Woolfolk Walker and his younger sister Margaret Dozier. Dozier owned two-ninths
and Walker four-ninths of the formula rights. Now here is where it gets interesting.
Venable somehow disposed off his portion of Coca-cola twice. During some time in
1887, he gave his share of Coca-cola to Joseph Jacobs, owner of Jacobs' Pharmacy. In
early October 1887 Pemberton ran a blind ad looking for additional investors.

He was able to get three investors with this ad. He took $2,000 from each of them.
Their names were J.C. Mayfield, A.O. Murphey and E.H. Bloodworth. In late
December the three new partners moved to Atlanta, ready to produce all of
Pemberton's wonderful medicines.

At this point Pemberton, Walker and Dozier officially owned the

formula of Coca-cola, but several others had interest in it. Enter Asa
Candler, an ambitious Atlanta druggist. Candler some how acquired
control of the company later in the month of December although he
probably didn't own any part of the company until 1888. He acquired
the drink in return for debts owed him by certain "gentlemen." Things
got a little sticky for a while with Charley Pemberton (John's son) claiming his right
to the drink. This kicked off two coke clones by the names of: Yum Yum and Koke.

Pemberton grew even more ill, but continued with his

work. He was developing a new drink, a modified
cola with celery extract. The drink was never
finished. Pemberton died on August 16, 1888.
Candler served as a pallbearer at Pemberton's funeral
and spoke very highly of him. In later years he was
quoted saying "Why, I suppose Dr. Pemberton felt I was one of his best friends in
town."

Exactly two weeks after Pemberton died Candler bought the remaining interest of
Walker and Dozier for $1,000. With the exception of the Walker, Candler &

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Company ownership, Asa Candler had legal rights to Coca-Cola. He was calling
himself the drink's sole proprietor by May 1, 1889.

By the turn of the century Candler would become one of the wealthiest men in
Atlanta and Coca-Cola would become the most popular soft drink in America. After
this the main events and improvements in this firm are summarized below:

In 1906, Coca Cola was launched outside the United States for the first time. It was
launched in two countries simultaneously, Cuba and Panama.

In 1917, another milestone was completed, 3 million Coke’s bottles were sold per day
and it was also observed that had become the world’s most
recognized trademark.

In 1919, the company was sold for $25 million.

In 1923, The Coca-Cola Company was sold after the Prohibition Era to Ernest
Woodruff for 25 million dollars. He gave Coca-Cola to his son, Robert Woodruff,
who would be president for six decades.

In 1925, sales volume was increased to 6 millions Coke’s bottles per day.

In 1927, Coca Cola was firstly advertised through radio.

In 1929, Coca-Cola was made available through vending machine

The Coca-Cola bell glass was made available.

In 1934, Johnny Weiss Muller, and Olympic champion swimmer, and Maureen
O'Sullivan, a motion-picture star, appeared on a metal
serving tray for Coca-Cola.

In 1940, Coke was operating in more than 40 countries of

the world.

In 1943, On June 29, an urgent cablegram arrived from

General Dwight Eisenhower's Allied Headquarters in

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North Africa, requesting 10 Coca-Cola bottling plants to serve American servicemen
overseas.  Eventually, 64 plants were set up during World War2.

In 1950, Advertising on the television began. Currently Coca-Cola is advertised on

over five hundred TV channels around the world.

In 1952, William T. Campbell wrote “The Big Beverage”, the first novel about Coca-
Cola.

In 1960, Coke was introduced in a size of twelve ounces.

In 1961, another product of the Coke was introduced “Sprite”.

In 1971, a very famous song "I'd like to Buy the World a Coke" was released.

In 1977, the unique contour bottle, familiar to consumers

everywhere, is granted registration as a trademark by the U.S.
Patent and Trademark Office, an honor awarded to only a
few other packages

In 1978, company launched the product in plastic bottles and in

the same year large size of two litters was also launched.

In 1979, Fifteen hundred employees moved to the new corporate headquarters in

Atlanta located on North Avenue. The new corporate headquarters came to be known
as "The Tower."

In 1982, Diet Coke was introduced in July.

In 1985, The Coca-Cola Company made what has been known as one of the biggest
marketing blunder. They stumbled onto a new formula in efforts to produce diet
Coke. They put 4 million dollars of research to come up with the new formula.

In 1988, Coca-Cola became the first independent operator in Soviet Union.

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In 1993, Coca-Cola completed another milestone by increasing their sales volume to
10 billion cases worldwide. The company also started its advertisement with new
slogan of "Always Coca-Cola".

In 1995, Coke was consumed aboard the Space Shuttle Discovery -- marking the
third trip into space for Coca-Cola and the first for Diet Coke.

In 1996, The Summer Olympics was held in Atlanta, Georgia, the home of Coca-
Cola. For more than 65 years, Coca-Cola has been a sponsor of the Olympics.

In 1997, World of Coca-Cola Las Vegas opens, complete with a hundred-foot-tall

Coca-Cola contour bottle. The Coca-Cola Company sponsors the Winter Olympics in
Nagano, Japan, marking the 70th anniversary of the Company's Olympic partnership.
New products Citra and Surge hit the market. And M. Douglas Ivester was named
chairman of the Board of Directors and chief executive officer of The Coca-Cola
Company. He was the tenth chairman of the board in the Company's history.

In 1998, Sales of Coca-Cola and other Company products exceed 1 billion servings
per day.

Introduction to Coca-cola beverages Pakistan Limited (CCBPL)

Coca Cola is being produced and sold in most of the countries of the world. For better
control, world is divided into various regions. Pakistan is the part of South West
Region. South West Asia region includes:

Pakistan, India, Philippines, Thailand, Hong Kong, Burma, Maldives

Coca-Cola beverages Pakistan limited (CCBPL) is responsible for all operations

about production and sale of coca-cola brands in Pakistan.

Difference between CCBPL and TCCEC:

The coca-cola company started his business in Pakistan in 1960. All business
activities in Pakistan are monitored by “The coca-cola export corporation” (TCCEC).
Head office of TCCEC was in Karachi at that time but now days it is shifted to
Lahore. But this TCCEC only monitored business activities, this company issued

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license for plants in different cities of Pakistan to start production according to
company standard. In 1990, company decided for acquisition worldwide. Actually
they were operating their business through joint venture, now they decided for
acquisition. That’s why in 1996 “The coca-cola company” buys the Karachi plant, at
that time TCCEC decided to form a new company to monitor the operation of bottling
in Pakistan. So “coca-cola beverages Pakistan limited” (CCBPL) is the company,
which is responsible to monitor the operations of bottling in Pakistan. Some time
people says that there is no difference in CCBPL and TCCEC, but the basic difference
between both companies is that CCBPL is responsible for bottling operations and
TCCEC is responsible for marketing and corporate decision world wide.

CCBPL UNITS IN PAKISTAN

There are eight units in Pakistan for production and selling of coca-cola brands. These
units are situated in eight cities of Pakistan.
 Karachi
 Rahim Yar Khan
 Multan
 Lahore
 Faisalabad
 Gujranwala
 Rawalpindi
 Peshawar

But some of these plants are currently not operating these days. For example, the
Peshawar plant could not start its operations after the take over of the company in
1990 because it was working under too much burdens of debts in the past and it was
declared insolvent. Therefore, it was not profitable for the company to pay all the
debts and start operations again.

CCBPL MANAGEMENT STRUCTURE:

CCBPL has divided the whole Pakistan in two regions named as “Southern business
unit” (SBU) and “Central business unit” (CBU). Karachi, Rahim Yar Khan and
Multan plants are monitored by SBU General Manager (GM) while the other plants

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Lahore, Faisalabad, Gujranwala, Rawalpindi and Peshawar are monitored by CBU
General Manager (GM). You can better understand from this organization chart.

It is shown in this diagram that the whole country is divided in to two parts on the
basis of geographical regions. And the whole country is controlled and monitored by a
“Country Manager”.

Country Manager

GM (SBU)
CCBPL VISION GM (CBU)

CCBPL vision is to have a strong, dominant and profitable business in Pakistan.

KARACHI RAHIM YAR KHAN MULTAN LAHORE FAISALABAD GUJRANWALA RAWALPINDI PESHAWAR

MISSION OF CCBPL
CCBPL mission is to create value for our shareholders. They are committed to
 Building preference & market leadership for their brands
 Achieve quality excellence and serve their customers with quality products
 Maximizing profits
 Developing their people
 Optimum utilization of assets

23
CCBPL VALUES
 CCBPL give value and respect to their people
 They communicate openly
 They have integrity
 They are committed to winning.
HISTORY OF MULTAN PLANT
In Multan, the franchise unit was established in 1964, with the wish or struggle to
make it easy to distribute Coke in different areas and to make it No. 1 in the market,
and with the hope that it will play a great role in increasing the production and to
make it popular in all over the country. Mr. Haider Zeman was the owner of this
Plant. After 20 years Mr. Haider sold this plant to Mr. Akbar in 1984 that is one of the
famous industrialist in Multan city. Mr. Akbar couldn’t give his proper attention to
this beverage business because he is more interested in Textile business. For that
reason Multan plant couldn’t get a big market share in Multan territory. In 1996 coca-
cola company decided for acquisition and it buy first time Karachi plant in Pakistan.
After four year coca-cola company purchase and take over Multan plant on January
18, 2000. After acquisition some major changes were made by CCBPL in Multan
plant.
Changes in Multan Plant after acquisition
After the purchase of plants in Pakistan CCBPL fire almost all of the employees
working in the old setups. And they rehired some of these and other personnel on the
basis of their competencies they have from other organizations of beverages field and
experienced people from other multinational organizations e.g. Liver Brothers etc.
Coca-Cola Beverages Pakistan Limited made number of changes in the Multan Plant
and in other plants. Some of these changes were structural in nature and some were
related to operations of the system.
Now instead of Managing Director of organization, Business Operations Manager
(BOM) is the head of organization. And Mr. Aamir Altaf Qureshi was appointed as
the BOM in Multan in 2000.
He made number of changes in Production system, marketing system etc. for the
improvement in quality. They purchased new foolproof bottles washing system in
which almost every bottle remains in the process for one and a half hour. That step

24
increased the quality of the product and shows the concern of the company for the
society and consumers in Pakistan.
But now, after departure of Mr. Altaf Qureshi, Muhammad Usman But was appointed
as BOM of plant, who was previously handling the Sales & Marketing Department of
the company. He is also continuing the policies of the company towards improving
the quality of the products.
PRODUCT RANGE
In their product range, they had three categories, i.e. Coca-Cola, Fanta and Sprite,
which are further divided into different packing units. They are 175ml, 250ml,
300NR, 1 liter, 1.5 liter plastic and 2.0 liter plastic. Now they are also introducing
Plastic bottle of 1 liter.
But now two new products are launched currently to improve the market standings of
the company. These are Sprite 3G and Fanta Citrus. Sprite 3G has recorded a very
good start but unfortunately, the second one, Fanta Citrus could not get success in the
market of Multan. However it is doing a very good business in Peshawar and other
nearby areas.
TERRITORY OF MULTAN PLANT
Multan plant is covering a very huge area and according to Assistant production
manager of plant, we are still having a capacity cousin available and the plant is
enough to support the increasing demand of the products till 2009, if demand rises
according to the expectations of the management but after that, there will be a
requirement of another plant, for which the management is planning these days.
Multan Plant covers the areas of:
Multan City
Pak-patan
Sahiwal
Bahawalnagar
Dera Ghazi Khan
Rajan Pur
Ziarat in Balochistan.
It covers some other urban and rural areas in Punjab and Balochistan also.
They are managing the distribution of the products through a well-defined channel of
distributors.

25
 Data Flow Diagram

SYSTEM DECOMPOSITION

Coca-Cola System

Packing &
Sales Planning MFG Purchasing Receiving
Shipment

Pickup
Negotiate with Enter Start Check raw
Check product from MFG
customer Customer order Production job material
floor

Purchase Complete Search for Pickup from

product order production job supplier inventory

Update product Receiving raw Package and

Make purchase
schedule material shipment

26
CONTEXT LEVEL DIAGRAM

27
FIRST LEVEL DIAGRAM

28
SECOND LEVEL DIAGRAM

“Sales”

1.1
Order Negotiation with
Price Quote
Negotiate
with
Customer

Notice of deal with

customer
Customer

1.2
Customer Order
information Enter
Customer
Order

Customer Order

To: Planning

29
 “Planning”

Product Inventory info

2.1
Customer
Order Check
Product Inventory
Inventory Update D3 Product Inventory

To: Package &

Notice to shipment from products inventory Shipment
Customer
Order

2.2 2.3

Prepare Update
Production Production Production
Order Schedule
Order with latest
start date

Production Schedule Production Order

addition or update

D2 Production Schedule

30
31
Second Level Diagram (Cont…)

Manufacturing

D2 Production Schedule

Production Order

3.1 3.2
Job Completion
Start Completion Complete Notice
Production production
Job Job To: Package &
Raw Material Shipment

Product
Raw Material inventory
usage update update
Raw
3.3
Material
Receiving
Raw D3 Product Inventory
Materials

Raw Material
Arrival update

D1 Raw Mat Inventory

Second Level Diagram (Cont…)

32
 Purchasing

D2 Production Schedule D4 Supplier directory

Raw Material Supplier Supplier info

need Lookup update
information

4.1 4.2

Check for Raw Materials Search for

Raw Purchase Need supplier
Materials

Purchase info
Raw Materials for Raw
Supply materials
information

4.3
D2 Production Schedule
Make
Purchase
Purchase order Supplier

33
Second Level Diagram (Cont…)

Shipment

5.1
Production job
completion
notice Pick up Shipment Notice
from Mfg
Floor

5.3 Delivery Notice

From: Mfg Floor and invoice
Package
and ship Customer

Notice to ship 5.2 Products Packaged

from products
inventory
Pick up
from
inventory
From: Planning Shipment Notice

34
Operational and Managing Structure of

Multan Plant

Business Operations Manager (BOM)

Business Operations Manager is responsible for all the operations
of Multan Plant. In Multan Plant Mr. Usman Butt is BOM of the
organization. He was appointed on this designation after departure
of Mr. Aamir Altaf. He has done MBA in marketing from IBA
Karachi and very experienced in the field of Beverages as doing
work in that field for almost 10 years. He was previously performing the duties as
Sales and Marketing Manager in the same organization and plant as well. He is 2 nd
BOM of Multan plant after acquisition. He is considered as the big boss of the Multan
plant.
Now we shall discuss responsibilities and structure of each department one by one:

Structure of Multan plant

We can divide the whole organization of Coca-Cola Beverages Pakistan Limited
Multan Plant into 5 (Five) major departments these are
 Sales and Marketing Department
 HRIR Department
 Finance Department
 Logistic Department
 Technical Department

SALE & MARKETING DEPARTMENT

On the whole sales and marketing department is consisting of thirty-seven (37)
employees and three MROs that are working on daily wages basis. It is mentioned in
the organ gram of the CCBPL, Multan Plant Mr. Irfan Butt is the Head of the
department. He is a competent person in the field of marketing but now he has left the
organization and joined a research organization as a manager of whole Gulf countries

35
 and now the position of Sales and Marketing Manager is still to be occupied by
someone else. You may able to better understand the structure of Sales and Marketing
Department of CCBPL, by that figure

Sales & Marketing Department

S & M Manager

Sales Coordination Sales Marketing

Sales coordination Marketing Services

Sales Region Marketing Exe.
Exe Exe.

Sales Coordinator Multan

Multan District

Sales Manager

Sr. MDO

MDO

Multan Base

Regional Sale
Manager

Indirect Sales

Sale Manager

MDO

Direct Sales

Asst. Sales Manager

MDO
Sr. MDO

Regional Sales
Manager Sahiwal

Sale Manager Asst. Sales Manager

Sr. MDO MDO Sr. MDO MDO

Regional Sales
Manager D.G Khan

Sale Manager

Sr. MDO MDO

36
Sale & Marketing Manager
Mr. Irfan Butt was the head of the Sales and Marketing Department of Multan Plant.
He is a very competent person. His responsibilities are to co-ordinate the activities of
sales department and of Marketing Department. He assists the regional sales managers
for the sale in their regions. And also assist marketing manager for running the
marketing activities smoothly. He used to perform his responsibilities by maintaining
a well-balanced formal and informal relationship with his subordinates. He was also
having a sufficient record of each employee of his department.
Sales area of Multan Plant

37
The whole area of Multan plant is divided into three major divisions. These are as
follows:

1. Multan Region.
2. Sahiwal Region.

3. Dera Ghazi Khan Region.

Multan Region
Mr. Ali Navaiz is the Sales Manager of the Multan. He is responsible for the sale in
Multan Region. The whole Multan region is further divided into two areas,
These are named as
 Multan Base.
 Multan District.
The whole Multan city including old city is the part of Multan Base.
While Multan District consists of all neighboring areas of Multan city e.g. Bodla,
Makhdoom Rasheed, Muzaffar Garh etc.
For the co-ordination of Mr. Ali Navaiz there are two Area Sales Managers for each
area of Multan Region.
These are:
 Rafeeq Meo for Multan Base and
 Mr. Sabir for Multan District.
And these both have number of Market Development Officers (MDOs) for the
development of the market.
Basically for sales purposes the whole territory of Multan region and other regions is
divided into many small parts and for each part we have a separate distributor i.e. for
Multan Cant we have Bismillah Agency. and for MDA. Chowk we have Niazi
Traders as distributors. For every two distributors normally the company offers the
services of one Marketing Development Officer. For that company get two types of
benefits
 With the help of these MDOs Company come to know the actual situation of
the market from the mouth of their own employees.
 And company provides assistance to the distributor for achieving the sales
targets.

38
  Company issues all the chillers and other assets to retailers and distributors
after the guarantee and approval of concerned MDO.
 It helps in maintaining direct relationships with the retailers, so that company
should not any critical situation if any distributor is not coordinating properly.
 If MDOs are not sent, distributors will be in better position to blackmail the
company and it may damage the profitability and market standings of the
company.

Sahiwal Region
Iftikhar Ahmad Choudhary is Sales Manager of that region. He is also a graduate
from our department. He completed his studies from the department in 1989. He is
really a co-operative man. During my stay at Coca-Cola he really helps me in
understanding the culture of the organization. This remains helpful for me for the
period. Sahiwal Region covers the area of Sahiwal City, Jahanian, Khanewal etc.
As in Multan region there are two Area Sales Managers for the co-ordination of
Regional Sales Manager similarly there are also two Area Sales Manager in Sahiwal.
According to the sale Sahiwal Region is best among the whole territory of Multan
Plant.
These two ASMs are
 Mr. Shahid Habib.
 Mr. Rao Azam.
They are hard working people. Due to their hard work distributors of that region are
able to achieve the sale targets.
The remaining departmental structure of the Sahiwal Region is exactly similar to that
of Multan Region.

Dera Ghazi Khan Region

Dera Ghazi Khan is another region that is controlled by Multan plant. Sales team in
this region is also controlled by same sort of team consisting of a RSM and his team
of ASMs and MDOs.
Ahmad Daniyal is the RSM of this region. He is a young man who started his career a
few years back as an MDO. His other fellows are still on same designation but in this
short period, he became ASM and now working as RSM of a whole region.

39
Wali Lodhi is coordinating him as an ASM and a team of MDOs is coordinating to
achieve the sales targets.
MARKETING DEPARTMENT
As mentioned in the organ gram of Sales and Marketing Department it is basically a
subpart of Sales and Marketing Department. Basically the task is divided into two
parts on is sales and the other is Marketing. Marketing in CCBPL means the co-
ordination of the sales department. The basic task of the marketing department is the
distribution of company assets in the market in the form of Deep Freezer, Visi Cooler,
and Chest Cooler or in the form of Cabins, boards, hoardings etc. And they are also
responsible for the proper maintenance of the record of these assets i.e. they have to
maintain the record that which asset is where and in which condition and how many
assets we have in the store, they also responsible for the distribution of assets among
different regions. When a new lot of deep freezer came to plant by TCCEC then
marketing department distribute these assets among different regions according to
their requirement and their sale.
Functions of MROs:
Market department also contains Market Research Officers (MROs). These people are
used to have a check on MDOs in a way that the physical verification of assets is the
responsibility of these people. They people also check whether the assets are properly
used or not. Misuse of assets means that the shopkeeper should not use the assets of
the company, for the products of the competitors or for private purpose.
These days four MROs are working in this department. These are:
M. Yousaf
Najam-ul-Hassan
M. Naveed
M. Naeem
These people are working on daily wages basis but these are very experienced people
in their field and they are having a very good know how about the market.
During my internship, I spend some time with these people and got very valuable
knowledge about the market. These people act as representatives of the company
during their visits to the market.
Now a day it was under consideration that there should be a separate department for
these people, which are concerned with the audit of the assets of the company.

40
 These people are also used to record the feedback for the services of the MDOs and
to check whether the customers are satisfied with the services of MDOs or not. On the
basis of this report the performance of the MDOs is evaluated.

FINANCE DEPARTMENT
Finance Department is responsible for proper flow of cash and for the controlling of
financial assets of the organization. The budget is allocated by TCCEC (The Coca-

Account Manager

Asst. Account
Purchase MIS
Manager

Cash Route settlement Accounts Excise Store Manager Purchase Asst. IT support

Route
Asst. Excise Manager store Purchase
Cashier settlement
Accountant Attorney Officer
Auditor

Accounts Excise
clerk Assistant

41
Officer
Accounts
Cola Export Corporation) for the period of month or two and finance manager of
TCCEC of and on came there to check the financial activities. On the whole Finance
Department consists of 16 (Sixteen Employees). The structure of finance department
is as follows:

42
As it is shown in above diagram that Accounts Department is controlling Purchase
and MIS department as well. This structure is different from other organizations
where all these departments are usually working separately but here, in this
organization Accounts department is controlling the other two important departments.
This is one of the reasons why all the purchase transactions are required to approve by
the Accounts Manager.

Different individuals are assigned different responsibilities in this department like,

some are concerned with Cash, some are with Route settlement, Accounts
Receivables, Excise and other relative tasks.

Software Used in Organization

Different applications are used in different parts of the organization for different
purposes.
Three main applications are given below:
SCALA (calculation on average cost method)
BASIS (Beverages Advanced Standard Information System)
ISCIMS (Indirect Sales & Cooler Impact Monitoring System)

SCALA is used to allocate the cost on the basis of Average Cost Method. It
sometimes create problem because due to this a huge fluctuation results in cost. It
mostly happens when same sort of product is purchased from various firms at
different prices but in the end all the goods are recorded at same cost due to average
cost method.
BASIS is used for cash related matters. It is specialized software for beverages but
now it has become outdated and it is expected that the firm will replace it with a new
one in the start of next year.
ISCIMS is used for having a contact with the distributors. Information is shared
between company and an employee that used to send information from distributors
end. Company is using this software for Indirect sales. An operator used to send
information on daily basis through mail. Information is usually related about;

43
  Stock at Distributor.
 Discount Allowed by distributor to various customers.
 Low fills and burst allowances.
 Free sampling.
Through this software, Mr. Farooq of Accounts Department is controlling about 78
distributors in different areas.
ROUTE SETTLEMENT DOCUMENTS FLOW
Route settlement documents flow is basically flow of documents started from
entrance of empty at gate to the distribution of filled bottles to the distributors with all
basic entries of account.

When vehicle with empty bottles enter into the gate then gate man entered this empty
into the register with party name, vehicle no, qty of vehicle and time in. One copy of
this form is send to gate office and the other one is send to shipping office. After that
shipping officer count these empty bottles and prepare a verified list. This list is send
to sales co-coordinator in DPG. After that sales coordinator prepare demand form and
verified this demand from shipping department in DPG. After verification from
shipping department out load is prepared and this load is send to distributor. The copy
of this load is sending to finance department and finance department prepare an
invoice for distributor. With this invoice account officer is responsible to prepare
cash copies, EDS copies and A/R slips according to current condition of payment and
empty. These copies send to RSA where he prepares route header copy, this copy
send to distributor after signature and stamp of guard. I think it’s not easy to
understand the flow of route settlement documents therefore I prepare a diagram so
that reader can easily understand the route settlement document flow.

44
 Route Settlement Document Flow

Entrance of vehicle at gate

Entry in empty register at gate

Party name
Time in

Gate Process
Time out
Qty of vehicles
Vehicle No
Company

Plant Process
vehicle/contractor/distributor

Empty & Full in recorded at

gate office form
Gate office------empty
Shipping office

Shipping

Empty in load
White copy-----RS
Yellow copy---shipping
Blue copy-------Distributor
Pink copy------ Guard copy

Sales coordinator Demand form

Verification of load from shipping dept.

Invoices
Out load (Liquid)
White copy----Distributor
Cash copies White copy---R.S
Blue copy-- Distributor Pink copy-----R.S
Yellow copy-shipping
White copy-- Cashier Liquid invoice
Blue copy----Distributor

DPG Process
Pink copy---- R.S Consignment given/return
Pink copy----Guard
EDS

A/R slips EDS Copies

White copy--- Finance white copy--- Finance Complete settlement for R.S
Pink copy---- R.S Pink copy---- R.S Feeding in Basis
Blue copy---- Distributor Blue copy---- Distributor stamp & sign from R.S.A on route
Yellow copy- Cashier Yellow copy- Sales c/d header’s copy

Guard sees Route Header

Sign, stamp and date on Route White copy-- R.S
header’s copy of R.S.A Pink copy---Distributor

45
STORE
The stores in charge give the present situation of the equipments and material in the
store. There are three types of stores in Coca-Cola.
One is located in the factory where company stores equipments and material like
tissue paper boxes, soaps, ballpoints, crowns of bottles, ink etc. of daily usage. And
every purchase, which comes into the factory premises, first added to the store
registers. Then it is submitted to the concerned department.
Second store is located near to the factory in a separate building. This is called the
store for marketing assets. Every type of breakage of bottles is submitted in that store
and new assets of company like D/F, V/C are also stored in that store. New crates of
wood are also manufactured there. For that purpose there is a small workshop. The in
charge of that store gives report to the store in charge of factory, which then submit
that report to the Accounts Manager.
Third store is located on the Vehari Road near the B.C.G. Chowk at approximately
half kilometers distance. That is a store of finished goods i.e. filled bottles came there
from the factory and from there the distributors get their orders. The in charge of that
store is directly reporting to Accounts Manager.
MIS (MANAGEMENT INFORMATION SYSTEM) DEPARTMENT
MIS department is responsible for the generation of reports for each department i.e.
for production department about the situation of empty and syrup, report of
manufactured stock for the sales coordinator. And these reports are also submitted to
the BOM and to the Accounts Manager. On the basis of these reports Management
make decisions about the production, sales and different matters.
This department is also responsible for the development of computer programs for all
departments. That department is consists of only 5 employees one is MIS Manager
and remaining four are his assistants.
CASH ROOM
Cash Room is like a bank. It makes the transaction of cash possible for the company.
Mr. Khalid Khan controls that department. Coca-Cola made payments in two ways
one through check and other in the form of cash. If the payment is less than Rs.5000
then it is made through cash and if it is greater than Rs.5000 then it is paid through
check. The payment which is made through check is issued by Accounts department

46
itself while cash payments are given to the vendors from that cash room. For example
Coca-Cola pay to daily wagers in the form of cash and that payment is made through
that cash room while the salary of permanent employees is automatically transferred
to their accounts. And cash room is also responsible for the collection of cash from
distributors for their purchases.
TECHNICAL DEPARTMENT
Technical department consists of three major divisions;
 Production
 Quality Control
 Maintenance

On the whole there are thirty-five permanent employees working in the Technical or
Production department. And also number of daily wagers is also working in the
department. There are number of processes takes place in Technical department like
washing of empty bottles, preparation of syrup, chilling and filling plant. That is
purely a technical department most of the employees in the department are technical
and others are operative people. The structure of Technical or Production Department
is given on next page.
There is also two Shift Chemists separate for day and night shifts. There is a lab in the
production department, which is responsible for the assurance of proper quantity of
sugar, syrup, waters in each bottle after every 500 regular bottles they check one
bottle for the assurance.
Mr. Malik Jaffer is the manager of the technical department.
Production of this plant is about 600 cases per hour but number of hours worked used
to change depending on the season. Normally two shifts are used for production. In
normal or down season, duration of shift is reduced to 8 hours but in peak season this
duration is increased to 12 hours to meet the demand of the market.
Production Process
The environment of the production hall is very clean unlike of other players of the
industry.
In Multan plant, there are two lines of production in which all the products can be
produced by making an adjustment in syrup and concentrate.
Production process starts with washers where all the bottles are washed before filling.

47
In washer 24 bottles are entered in a row at a time and the washer is capable of
containing 300 cases at a time.
This washer consists of 3 tanks:
Tank 1: Caustic 1 to 1.5%
Temperature 45 to 85 centigrade
Tank 2: Caustic 3 to 4%
Temperature 65 to 75 centigrade
Stabilon 0.4 to0.5%
Tank 3: Cold water and air
Below 0 centigrade
Due to too many fluctuations in temperature, all the germs are killed and removed.
After this some light men inspect all the bottles. These people are performing jobs for
maximum of 20 minutes at a time then a next pair comes in their place and so on.
Next step is of mixing the syrup and water and filling them in bottles. For this
purpose water is obtained from a depth of more than 510 ft. Carbo Cooler is used for
mixing the syrup and water and then bottles are filled. After filling and marking date
and time of production light men again check bottles.
Three light men are working in the plant and their duties are given below:
First -----check brand, breakage and dirtiness.
Second---check cleanliness.
Third ---- level of liquid after production.

Due to such an effective system of quality controlling, plant is certified by ISO.

The more important certificate is TCCQS (The Coca Cola Quality System), which is
awarded by the company itself to a limited number of plants. It is given to only 65
plants out of 1000units and Multan plant is one of them.
The last function of maintenance is performed in down season of November,
December or January by shutting down the plant for 15 to 30 days depending on the
situation.
According to production department, current capacity is sufficient to meet the
increasing demand by 2009 but after that there will be a need for expansion.

48
 Technical Department

Technical
Department

Quality Control
Production Manager
Manager

Production Chemist/Officer/
E & S Executive
Executive Supervisor quality

Water Treatment
E & S officer
Operator

Mechanical Supervisor Filler Operator

Mechanic Washer Operator

Syrup Room
Welder
Operator

Turner Chiller Operator

Electric foreman Uncaser Operator

Electrician Co2 operator

Boiler Engineer

Boiler Operator

49
PURCHASE DEPARTMENT
The responsibility of Purchase Department is to purchase every sort of requirements
of different department but they are not responsible for some technical requirement
like TCCEC or shipping department itself manages empty. The work procedure of
purchase department is like that if a department wants to purchase any thing he will
prepare a purchase requisition on this requisition the signature of departmental head,
BOM and of Financial Manager is necessary. Then this requisition will sent to the
Purchase department where they prepare a work order and give one copy of this work
order to the shopkeeper who is producing the product and one copy will sent to
concerned department and one will remain in the purchase department to receive the
amount of that work vendor should contact to the finance department for the payment
or for the check with the slip of work order.
Purchase department consists of only two employees one is Purchase Manager and
other is his Assistant. Purchase Manager of Coca-Cola Beverages Pakistan Limited
Multan Plant is Mr. Nasir Abbas and Mr. Naeem is his Assistant.

HRIR DEPARTMENT
The responsibility of HRIR department in Coca-Cola Beverages Pakistan Limited,
Multan Plant is the administration of all sort of formal and informal activities. In
formal activities the maintenance of attendance sheet of daily wagers, which is then
shifted to the finance department where they made salaries for these employees on the
basis of there attendance at the end of the week or month. For that purpose there are
gate keepers who are also responsible for the issuance of entry cards to the visitors
and they maintain the record when an employee comes in the factory and when he
leaves either he is on official duty or going out for his private work.
On the whole HRIR Department is consisting of eleven employees. The
structure of Administration Department is given on next Page

50
 HRIR Department

Manager HRIR

Asst. Manager HR

Executive Assistant HRIR Executive PRO

Gate Clerk

Peon

Staff Drivers

Telephone Operator

This department also maintains attendance record and attendance is sent

to BOM after to 20 minutes, so that he becomes able to take some corrective actions
against regular late comers.

Logistics Department
Logistic department is basically the combination of two departments. These are:
 Fleet Department
 Shipping department.
The whole transports and vehicles are arranged and maintained by Fleet department.
And shipping department is responsible for the maintenance of inventory of empty
bottles. On the whole logistic department is consists of 27 permanent employees. And
rest of the employees work on daily wages.
The structure of Logistic Department is given on next Page.

Responsibilities of Fleet Department

As I mentioned earlier logistic department is basically for the purchase and
maintenance of new vehicles. For that purpose they have a workshop for heavy-duty

51
vehicles and for cars in the factory. And for the motorcycles they made arrangement
with a workshop from where employees get work done and the factory will make
payment at the end of the month.

Logistics Department

Malik Amjad
Logistics
Manager

Muhammad Mehar
TypesMuhammad
of Vehicles
Asghar in Multan Plant
Asst. Logistics
Shipping Incharge
Manager

Mazhar
Shipping Sr. Shipping Jameel Ahsen
Hussain Abdul Wahab Rana Azeem
Incharge Officer Supervisor
Asst. Officer Sr. supervisor Fleet assistant
(DPG) (Plant) Fleet
Fleet

Shipper/shippi Supervisor Drivers

ng officer shipping (25 Members)

Auto
Asst Shipping
FLO Mechanic
Officer
(10 Members)

Auto
FLO Shift Drivers Electrician
(2 Members)
There are basically four major types of vehicles in the factory. These are
 Motor Cycles for Market Development Officers (Sales Staff)
 Cars for Management
 Vans for Loading
 Loader Machine
Coca-Cola offers a motorbike and 70 liters of petrol per month to each Market
Development officer (MDO). And the maintenance of the motorbike is also the
responsibility of company. The issuance and maintenance of these motorbikes is also
the responsibility of logistic department. If a new employee is employed in the sales
department as MDO then marketing or sales department send a request for motorbike
to the logistic department and if logistic department has any extra motorbike then they
issue that one to that employee otherwise they purchase a new motorbike for that
employee.

52
Coca-Cola also offers cars for the management. Coca-Cola Multan plant has
approximately 15 cars for management. 1300 CC car is only allowed to BOM
(Business Operations Manager) and all departmental heads can use 1000 CC car. The
issuance and maintenance of these cars is the responsibility of logistic department.
Logistic department is also responsible to maintain the record of petrol consumption
of each motorbike and car. For the purpose of petrol Coca-Cola Company Multan
Plant arranged an agreement with a petrol pump of shell and Cultux near the factory
from where any employ can fill his vehicle by giving a slip, which is issued by
logistic department.
Vans are also there in the Coca-Cola Multan Plant. These are for the purpose of
supply of crates to the places where cases are issued directly by the factory such as
Police Commissioners and these vans are also used to supply assets of factory to the
shops like Deep Freezers, Visi Coolers and Chest Coolers etc.
Loader Machines are used in shipping department. These are used to load and unload
the trucks etc. For the maintenance of these vehicles and cars a workshop is present in
the factory where many competent mechanics were employed to assure the proper
maintenance and working of these vehicles.
But in the end it should be made clear that fleet department is not concerned with the
purchase of vehicles. If any vehicle is to be issued to any person then the concerned
department will send a requisition to purchase department and purchase department
will continue further.
FMS (Fleet Management System)
It is the application that is used in fleet department to keep updated record about fuel
and maintenance of the vehicles.
Following are the fuel limitations for different sort of vehicles
Bikes Vehicles
Base people 50 liters. 250 liters.
Outside people 75 liters. 300 liters.
But these are not very rigid rules, for example, when MROs
visit the outside areas like Sahiwal and DG Khan, they people are allowed to consume
more but after getting approval from manager of their concerned department.
Following are different types of slips that are used in fleet department for some spare
parts.

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 1. Demand Slip
It is used when goods are available in store and fleet
department is going to use it. Store department will issue the desired parts against
this slip. These parts can be installed within or outside the organization depending
on the situation.
For outside repair, a returnable or non-returnable pass is given which indicates
whether it is necessary to return the damaged goods to factory or not.
2. Purchase Requisition
It is issued for the purchase of any thing, which is already not
available in the store. PR is sent to purchase department. Purchase Department
will have to select a vendor according to rates and quality offered.
But PR must be approved by
 Department in charge that is in need.
 Accounts Manager.
 BOM.

After purchase, goods are sent to store and GRN (Goods Received Note) is issued that
is also authorized by
 Store In charge.
 Department in charge that is in need.
Three copies of GRN are kept by Store, Purchase and Accounts Departments.

3. Complaint Document
It is filled by anyone who is having any problem regarding his
automobile and then it is checked by concerned authorities whether this problem
con be solved inside factory or not.

4. Repair Work Requisition

Fleet department sends it to any company like Honda for some
repair. It is approved by BOM and initiated and authorized by Fleet In charge and
Logistic Manager respectively.

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 If fleet department is in need of any thing, whether it is available in store or not, the
whole procedure is shown in following diagram:

Procedure of Issuance from Store to Fleet Department

Need origination

Availability

Demand slip PR

Issuance
Store Purchase
department

Demand slip by
Selection fleet
of vendor

Purchase Store GRN

decision

Chillers Verification Project

Each and every company used to provide some benefits to its stakeholders and Coca-
Cola is not an exception. Coca Cola is also distributing different assets in the market
in order to attract more and more retailers to increase the availability of the products.
Because company also knows that one of major reasons of low market share of Coca
Cola in Pakistan is its lack of availability.
These assets include

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  Cabins,
 Deep Freezers,
 Visible Coolers,
 Chest Freezers etc.

These chillers and other assets are distributed on the basis of projected sales of an
outlet. But usually for the issuance of chillers, MDO of concerned route must
authorize the application. It is mostly observed that MDOs used to complete all the
formalities of this procedure because it is indirectly helping the MDO to maintain
better relationships in his area. It will also help MDO to increase the sales and meet
his target, on the basis of which his performance will be evaluated.
Due to such a critical role of MDOs from both sides, receiving and issuing side, it is
necessary to have a check on MDOs. It is one of the reasons of the chiller verification
project. But the main and primary purpose of this project is to check whether the
issued assets are available in market in proper shape or not, whether they are properly
utilized or not and to get a feedback for the whole sale team.
The persons that were working on this project are known as Market Research Officers
or MROs. During my project, four MROs were working for this purpose, these were;
 M. Yousaf
 Najam-ul-Hassan
 M. Naveed
 M. Naeem
With these four some internees were also working and I was also one of them. The
main terminologies that were used in this process are given below:
Ok means that the asset is available at its proper place.
Not Found means that the verification team remain unable to find out the asset in the
market, so it is a matter of concern for respective MDO and management as well.
G. Not Found means that asset could not be found at its destination but it is found at
anywhere else. But no documentation is done against any such transfer. This term is
converted to Ok when MDO submit the proper documents of transferring the asset.
M. Ok means that asset is found at the home or store of the shopkeeper. So, MDO
will be responsible for any such act of the shopkeeper.

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Tag Removed means that the asset is available but its tag is not present on it, so it is
difficult to decide whether it is same or not.
Process of verification
The whole process of verification is divided into two major parts;
 First part of the process consists of physical verification of chillers by MROs
without intimating and involving the MDOs.
 Second part is called ‘Back Checking’. This part is completed by involving
Market Development Officers as well. Here an opportunity is given to these
persons to make their position clear before completion of final report.
In the first step a sheet is used by verification team during the process and they fill it
with any of the term that is explained earlier.
If the status is “Not Found” against any asset, then MROs will visit the market again,
with MDOs and will try to find out the asset. If it is found, status will be changed to
Ok but if it is still not found then it will be recorded as Not Found in final report of
verification.

SWOT Analysis
SWOT analysis enables us to find out a better way of utilizing the strengths of an
organization to get maximum benefits of the opportunities available in the industry
and it also helps in dealing with threats that may adversely affect the business of the
firm in future. So, the policy of any firm should be to focus on strengths to get better
results from opportunities, deal with threats by using your strengths and try to convert
your weaknesses in your strengths. According to my limited analysis of the company,
following are the strengths, weaknesses, opportunities and threats for the Coca Cola:
Strengths
 One of the main strengths of CCBPL is the financial strength of the company
because it is supported and controlled by Coca Cola International. Therefore,
unlike past, now they can start any long term project without concerning too
much about finances available.
 Coca Cola is enjoying a positive image in the minds of the consumers. They
normally think that it is better in quality as compare to other competitors
available in the market.

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  Better workforce is another strength of the company. Due to better availability
of finance they can hire quality workforce and get better results.
 Established Nation-wide infrastructure is helping the organization to increase
the sales volume of the company.
 CCBPL has up to date technology in its production. As coca-cola company
claims that they are very sensitive about hygienic conditions, so that’s why
they using up to date technology to achieve this objective.
 Another strength of the brand is the quality that they are offering to
customers.
 Another important strength of CCBPL is the working environment that they
are offering to their employees. Due to this environment, the employees that
are working here are loyal to the organization and it is resulting in improving
the motivation level of the employees, which in the end results in high
productivity and better performance.

Weaknesses
 The major weakness of the company is its distribution channel. It is one of the
main reasons of its slow progress and low market share in this market. Due to
lack of availability of the products and less differentiation from competitors, it
has become very difficult to capture a big market share.
 The company is also lacking in utilization of the resources, especially in
Multan plant. People are having various facilities but they don’t know their
best use. For example, people working in fleet department don’t know
to make the best use of Fleet Management System and usually performing
tasks in very difficult manner manually that can be easily performed by using
FMS.
Opportunities
 The best opportunity for CCBPL is to increase market share through
increasing the availability of the products in the market.
 The company can also produce better results by creating awareness in the
society about the quality of the products they are offering.
 The successful introduction of Sprite 3G has proved that greater market share
can be captured by introducing some new products. So, the company should

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 introduce some of the products that are running successfully in other markets
but are not available in Pakistan.
 A huge part of the market is still waiting for first entry. Coca Cola can gat the
advantage of first entry if it focus on such areas.
Threats
 High production capacity of the main competitor is a threat for Coke, because
they are having a better chance to increase the production and availability of
the products and further increase the market share.
 The local manufacturers can also disturb the market share due to their low
price offerings.

Suggestions for Further Improvement

While working in this organization, I got a lot of practical knowledge and

experience of working in market. During this whole period, I found that following
improvements can further enhance the performance of the organization.
 MDOs should be forced to have a proper documentation of all the assets
that are issued and transferred in his territory.
 Targets of the MDOs are not very difficult to achieve. They should be
made according to long run objectives of the firm.

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 Next step to chillers verification should be to minimize the misusage of the
assets, because it is observed in market that people are using the assets of
the company to sale the products of other company due to inefficient
distribution management of the firm.
 Coordination between MDOs and HR department may result in recovery
of assets which are at home of shopkeepers.
 MDOs should also be forced to provide complete report when chillers are
transferred from one to another. It will help in having an up to date record.
 MDOs should also be forced to provide complete report when they are
transferred from one route to another and new MDO should physically
verify all the chillers that are going to be a part of his responsibilities. It
will help in fixing the responsibility.
 For better performance of MROs and greater check on MDOs, status of
MROs should be increased to permanent. It will create job security and
loyalty in employees.
 There are some cases when the chillers are issued and there was no record
available in MIS, so all the gate passes should be authorized by MIS.
 No chiller should be reissued without the permission of respective MDO.
 MROs should be used as Market Research Officers instead of only chiller
verifiers.
 Store should be provided with a computerized book keeping system
instead of traditional registers, it will make the work easier and more
useful as well. And it will help in reducing repetition of tasks.
 According to policies of firm, they are not formally accepting the empty
bottles of competitors but competitors are doing this. So company should
make its policies flexible to attract the shopkeepers.
 People of logistic department usually do not know the best use of FMS,
any training program should be arranged to improve the situation.
 Fleet management reports should be used on monthly and quarterly basis
to have a greater check on fleet department.
 For closer results, parts should be recorded on actual cost instead of
average cost method.

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Annexure

Mirza Athar Baig Chughtai

Assistant Manager Business Planning – Multan

Vehari Road, Multan, Pakistan.

Tel: (92-61) 6525171-5, 6525661-3

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Fax: (92-61) 65275222
Cell: 0300-7197661
E-mail: atbaig@apac.ko.com

Muhammad Waqas
MB-05-29
MBA (I) 4th
Tel: 061-400119
Cell: 0333-6191088
E-mail: waqasbhatti@yahoo.com

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