Term Paper

On
“HOW MANAGEMENT FUNCTIONS ARE PERFORMED IN TERMS OF
ANY CHOOSEN COMPANY”

Submitted By:
Name: Udoy Islam Purno
ID No.: 6194134045
Batch: 34th

Submitted To:
Md. Moqbul Hossain Bhuiyan
Professor
Department of Management Information Systems
Faculty of Business Studies
University of Dhaka

Date of Submission: --2020

DEPARTMENT OF MANAGEMENT INFORMATION SYSTEMS

FACULTY OF BUSINESS STUDIES
UNIVERSITY OF DHAKA
The Coca-Cola Company is one of the biggest manufacturers, distributer and marketers of
beverages in the world. It was formed in 1886. Coca-Cola offers more than 500 brands in more
than 200 countries.

Figure: Logo of Coca-Cola

History:

The drink Coca-Cola was originated in 1886 by an Atlanta pharmacist, John S. Pemberton (1831–
88), at his Pemberton Chemical Company. His bookkeeper, Frank Robinson, chose the name for
the drink and penned it in the flowing script that became the Coca-Cola trademark. Pemberton
originally touted his drink as a tonic for most common ailments, basing it on cocaine from the coca
leaf and caffeine-rich extracts of the kola nut; the cocaine was removed from Coca-Cola’s formula
in about 1903. Pemberton sold his syrup to local soda fountains, and, with advertising, the drink
became phenomenally successful. By 1891 another Atlanta pharmacist, Asa Griggs Candler
(1851–1929), had secured complete ownership of the business (for a total cash outlay of $2,300
and the exchange of some proprietary rights), and he incorporated the Coca-Cola Company the
following year. The trademark “Coca-Cola” was registered in the U.S. Patent Office in 1893.
Under Candler’s leadership, sales rose from about 9,000 gallons of syrup in 1890 to 370,877
gallons in 1900. Also during that decade, syrup-making plants were established in Dallas, Los
Angeles, and Philadelphia, and the product came to be sold in every U.S. state and territory as well
as in Canada. In 1899 the Coca-Cola Company signed its first agreement with an independent
bottling company, which was allowed to buy the syrup and produce, bottle, and distribute the

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Coca-Cola drink. Such licensing agreements formed the basis of a unique distribution system that
now characterizes most of the American soft-drink industry. Capitalized at $100,000 in 1892 upon
incorporation, the Coca-Cola Company was sold in 1919 for $25 million to a group of investors
led by Atlanta businessman Ernest Woodruff. His son, Robert Winship Woodruff, guided the
company as president and chairman for more than three decades (1923–55). The post-World War
II years saw diversification in the packaging of Coca-Cola and the development or acquisition of
new products. The trademark “Coke,” first used in advertising in 1941, was registered in 1945. In
1946 the company purchased rights to Fanta, a soft drink previously developed in Germany. The
contoured Coca-Cola bottle, first introduced in 1916, was registered in 1960. The company also
introduced the lemon-lime drink Sprite in 1961 and its first diet cola, sugar-free Tab, in 1963. With
its purchase of Minute Maid Corporation in 1960, the company entered the citrus juice market. It
added the brand Fresca in 1966. In 1978 Coca-Cola became the only company allowed to sell cold
packaged beverages in the People’s Republic of China. In 1982 the company introduced its low-
calorie sugar-free soft drink Diet Coke (originally named Diet Coca-Cola). In an effort to address
its decline in market share, the company adopted a new flavor of Coca-Cola in April 1985, using
a formula it developed through taste tests. New Coke was not well received, however. Owing to
the public outcry, Coca-Cola revived its original flavor in July, which was then marketed as Coca-
Cola Classic. From 1982 to 1989 the company held a controlling interest in Columbia Pictures
Industries, Inc., a motion-picture and entertainment company. New markets opened up for Coca-
Cola in the early 1990s; the company began selling products in East Germany in 1990 and in India
in 1993. In 1992 the company introduced its first bottle made partially from recycled plastic—a
major innovation in the industry at the time. Coca-Cola created many new beverages during the
1990s, including the Asia-marketed Qoo children’s fruit drink, Powerade sports drink, and Dasani
bottled water. Coca-Cola also acquired Barq’s root beer in the United States; Inca Kola in Peru;
Maaza, Thums Up, and Limca in India; and Cadbury Schweppes beverages, which were sold in
more than 120 countries across the globe. In the early 2000s Coca-Cola faced allegations of illegal
soil and water pollution, as well as allegations of severe human rights violations. In 2001 the
United Steelworkers of America and the International Labor Rights Fund (ILRF) filed a lawsuit
against Coca-Cola and Bebidas y Alimentos and Panamerican Beverages, Inc. (also known as
Panamco LLC; the primary bottlers of Coca-Cola’s beverages in Latin America), claiming that the
defendants had openly engaged so-called “death squads” to intimidate, torture, kidnap, and even

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murder union officials in Latin America. The controversy gained worldwide attention and led
several American universities to ban the sale of Coca-Cola products on their campuses. The lawsuit
was eventually dismissed. In 2005 the company introduced Coca-Cola Zero, a zero-calorie soft
drink with the taste of regular Coca-Cola. In 2007 the company acquired Energy Brands, Inc.,
along with its variously enhanced waters. That same year Coca-Cola announced that it would join
the Business Leaders Initiative on Human Rights (BLIHR), a group of companies working together
to develop and implement corporate responses to human rights issues that affect the business
world. The company's 2009 bid to buy Chinese juice maker Huiyuan Juice Group ended when
China rejected its $2.4 billion bid, on the grounds the resulting company would be a virtual
monopoly. Nationalism was also thought to be a reason for aborting the deal. In 2011, it acquired
the remaining stake in Honest Tea, having bought a 40% stake in 2008 for $43m. In 2013, it
finalized its purchase of ZICO, a coconut water company. In August 2014, it acquired a 16.7%
(currently 19.36% due to stock buy backs) stake in Monster Beverage for $2.15 billion with an
option to increase it to 25%, as part of a long-term strategic partnership that includes marketing
and distribution alliance, and product line swap. In 2015, the company took a minority stake
ownership in the cold pressed juice manufacturer, Suja Life LLC. In December 2016, it bought
many of the former SABMiller's Coca-Cola operations. The Coca-Cola Company owns a 68.3%
stake in Coca-Cola Bottlers Africa. Coca-Cola Bottlers Africa's headquarters located in Port
Elizabeth South Africa. In 2017, The Coca-Cola Company acquired Mexican sparkling water
brand Topo Chico. On August 31, 2018, it agreed to acquire Costa Coffee from Whitbread for
£3.9bn. The acquisition closed on 3 January 2019. The Coca-Cola Company acquired a 40% stake
in Chi Ltd on January 30, 2016. The Coca-Cola Company acquired the remaining 60% stake in
Chi Ltd on January 30, 2019. During August 2018, The Coca-Cola Company acquired Moxie for
an undisclosed amount. On September 19, 2018, The Coca-Cola Company acquired Organic &
Raw Trading Co. Pty Ltd the manufacturer of MOJO Kombucha in Willunga, Australia. On
August 14, 2018, The Coca-Cola Company announced a minority interest in Body Armor. On
October 5, 2018, The Coca-Cola Company acquired a 22.5% stake in MADE Group from the
company's 3 founders; Luke Marget, Matt Dennis and Brad Wilson. The Coca-Cola Company
owns a 30.8% stake in Coca-Cola Amatil ltd, therefore The Coca-Cola Company owns a further
6.93% stake in MADE Group through its ownership stake in Coca-Cola Amatil ltd.

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Management functions:

Figure: Four basic management functions

Management functions at Coca-Cola:

1. Planning:

The vision of the Coca-Cola Corporation is to become the biggest and the best anchor bottler in
the world and its mission is to refresh everyone which guides its management team in the planning
process. The top management of the company engages in formulating five year longer term plans
as well as shorter term planning for the next year or so. The idea behind this type of planning is to
have a strategic vision extending over a longer period as well as a flexible and adaptive strategy to
change according to the imperatives of its external environment. Apart from this strategic planning,
the top management at Coca-Cola also engages in tactical planning in consultation with the middle
management who in turn acts on the feedback from the salespersons on the ground. The planning
at Coca-Cola entails setting targets for all employees at all levels that are periodically reviewed
for either success or failure in meeting the targets and in case of the latter, feedback is sought from

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the managers and the employees who have failed to meet the targets about the reasons for the same.
This is then incorporated into the decision making loop so that the next year’s plan can address
and redress the shortcomings as well as set new targets taking into account these aspects. An
example of how planning at Coca-Cola works can be gauged from this year’s target for the
managers to increase sales by 20% over last year’s target and increase the total customer based by
10%. This is the micro level planning which is complemented by the macro level planning which
can be seen from the objectives of increasing market share ranging from 5 to 30% for the middle
management in the various markets in which it operates. Further, there are operational goals which
are set for the salespersons on the ground and which are to do with the point of sale and the other
front end supply chain interfacing roles to actualize coordination and cooperation among the
partners, bottlers, vendors, and distributors.

2. Organizing:

Coca-Cola follows the decentralization within centralization model of organizing itself. This
means that while the global headquarters retains its overall decision making, the corporation is
divided into regions and geographical territories in which it operates.

Figure: Organizational structure of Coca-Cola

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Departmentalization:

The regional divisions are then organized into the functional departments which in its case
comprise the Production, Industrial Relations, Sales & Marketing, Human Resources & Finance
departments.

 Production department: This department looks around all the production of the company.
All plants in the country are in under its control.
 Industrial Relation department: This department deals with the problems of the
employees. The department listen the problems of the employees and send them to the
higher authorities for settling them up and stop them from becoming a hurdle in the work
progress of the company.
 Sales & Marketing department: This department makes sure that the product is easily
available in the market for the customers to buy and deals with the issues of advertisement,
promotion, and distribution of the product.
 Human Resource department: This department take care of the efficient workers of the
company, some efficient workers of the company are selected & their names are
recommended for promotions so that the workers remain happy and don’t leave the
company. Management level employees are dealt by the department.
 Finance department: The department is concerned with cost and price of the products
produced by the company. It also tackles with import related issues of the company.
Finance department is assisted by the sales and marketing department in making invoices
and payroll entries.

Work specialization:

High percentage of work specialization exists in the Coca-Cola Company because every manager
is appointed in the function in which he/she is expert so there is no boredom or monotony. All the
promotions of the employees are based on their performances. No favoritism is allowed in the
company.

Delegation & Accountability:

High percentage of delegation lies in the company. The work is done with proper authority and
responsibility. Every manager is made accountable for the actions of his/her subordinates. All the

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subordinates are guided very keenly by their respective managers at the time of accomplishing
some goals. Keeping the delegation process, on the other side the managers also motivate their
subordinates to boost up their energy and make them more effective by using different methods.
They make their subordinates think that they have to give their best to their managers which
increases their performance, quality of work and satisfaction of the customers.

Resource allocation:

When the issue of resource allocation comes into action, the Coca-Cola Company has given the
authority to managers to use the resources of the company where ever and whenever they are
needed. Only they are required to get the approval from the manager if those assets belong to
his/her department. The resources can be capital, labor, machinery or anything else. The key to
understanding the organizing function at Coca-Cola is to recognize that employees with similar
skills and common work functions are grouped together. This helps the company avoid
redundancies in problem solving processes as well as bestowing a certain functional autonomy at
all levels. Further, the organizing function at Coca-Cola follows the maxim of the span of control
not exceeding five direct reports which means that no employee has more than five others reporting
to him or her. Having said that, it must be noted that there is cross functional reporting as well
which is in the case of the managers and the functional heads reporting to the other divisional
heads in addition to the country heads. Moreover, the managers at all levels are afforded a high
degree of autonomy which empowers them to decide according to the specific local needs. Finally,
the organizational structure is such that redundant layers in the hierarchy are eliminated and the
layers of direct and dotted line reporting ensure that information flows through the organization
without the clogging of the organizational arteries due to bureaucratic mindsets as well as
blockages due to communication gaps. The overall responsibility for each country or region is with
the country or regional head and the functional heads under him or her also report to the global
functional heads. Similarly, the responsibilities are clearly defined which means that accountability
is taken care of as is the aspect of transparency.

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 3. Leading:

Though Coca-Cola is organized around geographical regions and then the various departments for
each region, the company emphasizes the importance of transformative leadership at both the
Global and the Local levels. This means that local managers and the heads of departments in
addition to the Country Heads in the various markets that the company operates in are free to
decide on the appropriate strategies for their territories as long as they conform to the global norms
and global culture that permeates the organization. This decentralization within centralization is
the hallmark of the Glocal approach which has been stated here. Apart from this, the leadership at
Coca-Cola believes in a democratic and laissez faire approach to leading which is necessary
considering the business it is in which is heavily dependent on both the macro level vision and
mission that need to be translated and transformed into micro level execution. Typically, the
General Manager is at the top of the regional hierarchy who in turn reports to the country head.
These general managers have other managerial subordinates such as the ones referenced for this
article who have mentioned how the organization practices behavioral leadership that is based on
acting on the specifics of the situation at the micro level. The managerial styles of these managers
also follow the incentive based system for actualizing peak performance from the salespersons. In
this system, monetary and non-monetary incentives are provided to the salespersons to motivate
them and make them meet or even exceed their sales targets. The monetary incentives include pay
hikes, bonuses, and commissions based on the sales achieved whereas the non-monetary incentives
include vouchers for vacations, travel, and discounted holiday packages for the employee and his
or her immediate family.

4. Controlling:

The controlling function in Coca-Cola is done through periodic reviews of managerial and
salespersons performance. Towards this end, an appraisal system based on objective evaluation of
whether the employee being appraised has met his or her targets forms the backbone of the
controlling function in the company. Though managerial performance goes beyond evaluation of
targets and their compliance as the managers typically perform other roles such as people
management and strategic planning, the salespersons are appraised based on the Sales Person’s
reporting system and the Sales Person’s evaluation system.

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Sales Person’s reporting system: Sales person had to report to the market developer area every
day about his activities. He give him record of per day sales and he can get any kind of assistance
by the area market developer anytime on any matter. Attendance of the sales person is taken with
the punch card system, with the help of which the entry and exit time of the sales person is
recorded. Every sales person is given a route card in which there are details of the visit of the
outlets, how much time he spent on the outlets, number of sales made on the outlets, the time taken
during travelling from one outlet to the other, name of the loader and sales person and the entry
and exit time of the vehicle. Apart from this the sales person is also given a forum to fill up for the
orders of the next day to be loaded in the truck. This makes the managers know that how much
sales of which brand and the size of the product are been done by the sales person. The information
is useful for the human resource department because they have to evaluate the total performance
and calculate the total salary of the sales person.

Sales Person’s evaluation system: Evaluation of all the sales person is done on quarterly basis.
Evaluation helps in the promotion of the people to higher levels in the organization. The evaluation
is a great motivator for the sales person because due to this he works hard to get promotion or at
least the monetary reward. Monetary rewards are not only given to the best sales person, they are
also given to the best market developer and the best sales manager of the year. Performance
development plan is kept as base to evaluate the performance of the employee. The measurement
of performance is done on the basis of achievement of targets which were set and communicated
at the start of the year in front of each sales manager, each quarter to market developer and monthly
to ever salesperson. This performance develop plan evaluates the sales made by the salespersons
on the basis of call slips, route calls, call completion, effective and productive call, attendance of
the salespersons, growth in sales done by the sales man, market development and the punctuality
of the sales person.

Apart from these performance measures, the employees are also evaluated according to their
contribution to the actualization of the overall goals of the organization as well as on their soft
skills including communication, people management, coordination, and service quality. The key
point to note about Coca-Cola’s controlling function is that it follows a Glocal approach wherein
the performance measures vary according to the local conditions of the markets in which it
operates.

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Apart from the 4 management functions; staffing can also be discussed.

Staffing:

The company does the recruitment process when there is a position empty and the recruitment is
always done on permanent basis in Coca Cola Company. Recruitment is done when the manger
needs the employee under him/her and he/she sends the request to the general manager and after
the approval of the general manager the request is sent to the Human Resource department. In
Coca-Cola firstly all the vacancies are announced within the organization so that if there is
someone who can fulfill the requirements can get himself/herself promoted or can refer someone
of his/her relative to join if he/she is capable of that job. If there are no suitable persons than the
company searches its bank where there are huge amount of application of the applicants. If there
also no suitable candidate is found for the job then at last the advertisement in the newspaper is
given.

References:

 https://en.wikipedia.org/wiki/The_Coca-Cola_Company
 https://www.britannica.com/topic/The-Coca-Cola-Company
 https://www.coca-colacompany.com/
 https://www.managementstudyguide.com/how-management-functions-are-performed-at-
coca-cola.htm
 https://www.slideshare.net/ShReYa011/coca-cola-64499024

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