RESEARCH PROJECT REPORT

Submitted in partial fulfillment of Master of Business Administration

Session-2019-2021

“A study of employee training and development at Coca-Cola”

Submitted By: Internal Guide:

Nishot Mr. Brijendra Singh
(1901640700034) (Faculty- Business Administration)

PRANVEER SINGH INSTITUTE OF TECHNOLOGY

Affiliated to Dr. A.P.J. AKTU

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 DECLARATION

The winter project on “A study of employee training and development at Coca-Cola.” is the

original work done by me. This is the property of institute & the use of this report without prior

permission of this institute will be considered illegal & actionable.

AYUSHI SHARMA

(2111310700020)

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 ACKNOWLEDGEMENT

Research Project Report is the one of the important part of MBA program, which has

helped me to gain a lot of experience, which will be beneficial in my succeeding career.

For this with an ineffable sense of gratitude I take this opportunity to express my deep

sense of indebtedness and gratitude to Dr. Bhagwan Jagwani Director of Allenhouse

Institute Of Management and Dr Sourabh Shukla HOD, Dept. of business

administration, for their encouragement, support and guidance in carrying out the project.

I am very much thankful to, my Project Guide Dr Shishir Gupta for his interest,

constructive criticism, persistent encouragement and untiring Guidance throughout the

development of the project. It has been my great privilege to work under his/her inspiring

guidance.

I am also thankful to my parents and my friends for their indelible co-operation for achieving the

goal of this study.

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 EXECUTIVE SUMMARY

Every organization need to have well trained and experienced people to perform the activities

that have to be done. If current potential job occupants can meet this requirement, training is

not important. When this not the case, it is necessary to raise the skill levels and increase the

versatility and adaptability of employees.

Project is the inseparable aspect of the professional course today. This is the basic criteria which

makes it mandatory for the participants in any curriculum that he/she carries out in his/her own

thought and blends it with the official’s data on the basis of which a complete report formulated.

With the philosophy in our mind Project is based on the Training and Development programmes

carried at Employee Training &Department of COCA-COLA.

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 TABLE OF CONTENT
CHAPTER NO. CHAPTER NAME PG.NO
CHAPTER 1 INTRODUCTION 7
1.1 Introduction about the sector 8-15
1.2 Industry Profile 16-20
CHAPTER 2 COMPANY PROFILE 21-52
CHAPTER 3 STUDY OF THE SELECTED 53
RESEARCH PROBLEM
3.1 Statement & Introduction of the 54-55
research problem

3.2 Review of Literature 56-60

3.3 Statement of the research 61
objective

3.4 Scope of study 62

3.5 Research design 63
CHAPTER 4 DATA ANALYSIS & 64
INTERPRETATION
4.1 Analysis and interpretation of the 65-76
data collected with relevant tables
and figures

CHAPTER 5 SUMMARY AND 77

CONCLUSION
5.1 Summary of Findings 78

5.2 Conclusion 79
5.3 Recommendations 80
5.4 Limitations of Research 81
BIBILOGRAPHY 82-83

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 LIST OF FIGURES
FIGURE NO. FIGURE NAME PAGE NO.
1 Awareness about training 65
2 No. of the training is conducted 66
3 Job methods of training 67
4 Training increases moral and 68
motivation

5 Satisfaction regarding training 69

programme

6 Employees selected for the 70

training

7 Normal duration for imparting the 71

training

8 The basic method of training and 72

development are

9 Trainer comes from outside or 73

companies personnel is trainer

10 The content of the training 74

11 After completion of training were 75
you asked to fill a feedback form

12 Suitable method for the evaluating 76

the training programme

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 CHAPTER-1

INTRODUCTION

1.1 General introduction about thesector

1.1.1 Training anddevelopment

In this changing and globalization environment organization have to upgrade their work methods,

works norms, technical and managerial skills, and employee’s motivation to face the challenges

due to which an employee training is most important in the changing environment because a need

for highly specialized workmen is felt in the global way. Organization and individual should

develop and progress simultaneously for their survival and attainment of mutual goals. So, every

modern management has to develop the organization through human resource development.

Employee training is the important sub-system of human resourcedevelopment.

Training is an important activity in many organizations. we generally see that a new machine is

installed in a factory, it is operated on the trial basis before going into actual production. After an

employee is selected, placed and introduced he or she must be provided with training facilities.

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Training is the act of increasing the knowledge and skill of an employee for doing a particular

job. Training is a short-term educational process and utilizing a systematic and organized

procedure by which employees learn technical knowledge and skills for a definite purpose.

Training improves, changes, moulds the employee’s knowledge, skill, behaviour, aptitude, and

attitude towards the requirements of the job and organization. Training refers to the teaching and

learning activities carried on for the primary purpose of helping members of an organization, to

acquire and apply the knowledge, skills, abilities and attitudes needed by a

particular job and organization.

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1.1.2 TRAINING

Training is a short-term process utilizing a systematic and organized procedure by which non

managerial person acquire technical knowledge and skill for a definite purpose. It refers to

instruction in technical and mechanical operation like operation of some machines. It

isdesigned primarily for non-managers, short duration and specific job-related purposes.

1.1.3 NEED FORTRAINING:

Every organization in order to survive and to be effective should adopt the latest technology, i.e.,

mechanization, computerization and automation. Adoption of latest technological means and

methods will not be complete until they are manned by employees possessing skill tooperate

them. So, organization should train the employees to enrich them in the areas of changing

technical skills and knowledge from time totime.

This creates the complex problems of co-ordination and integration and integration of activities

adaptable for and adaptable to the expanding and diversifying situations. This situation calls for

training in the skills of co-ordination, integration and adaptability to the requirements of growth,

diversification and expansion. Companies constantly search for opportunities to improve

organizational effectiveness.

Trends in approach towards personnel management has changed from the commodity approach to

partnership approach, crossing the human relations approach. So, training in human relations is

necessary to deal with human problems and to maintain human relations.

Training is also necessary when the existing employee is promoted to the higher level in the

organization and when there is some new job or occupation due to transfer, techniques or

technology.

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1.1.4 The need for training also arisesto:

In crease productivity

 Improve quality of theproduct/service.

 Help a company to fulfils it future personnel needs.

 Improve organizationalclimate.

 Improve health andsafety.

 Prevent obsolescence.

 Effect the personalgrowth.

 Minimize the resistance tochange.

The factors discussed above are mostly external factors and they are beyond the personnel

manager’scontrol.These factor soft end etermine the successo ftraining objective sasshown.

Factors Purposes

TechnologicalAdvance Improved Productivity

OrganizationalComplexity Prevention ofObsolescence

JobRequirements Preparation for Higher LevelJobs

HumanRelations Top ManagementSupport

LearningPrinciples Improved Morale PersonnelFunctions

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1.1.5 TRAININGOBJECTIVES:

Generally, line managers ask the personnel manager to formulate the training policies. The

Personnel Manager formulates the following training objectives in keepingwith the

Company’s goals andobjectives:

✓ To prepare the employee both new and old to meet the present as well as the changing

requirements of the job and theorganization.

✓ To prevent obsolescence.

✓ To impart the new entrants the basic knowledge and skill they need for an intelligent performance

of definite job.

✓ To prepare employees for higher leveltasks.

✓ To assist employees to function more effectively in their present positions by exposing them to

the latest concepts, information and techniques and developing the skills they will need in their

particularfields.

✓ To build up a second line of competent officers and prepare them to occupy more responsible

positions.

✓ To broaden the minds of senior managers by providing them with opportunities for an

interchange of experiences within and outside with a view to correcting the narrowness of

outlook that may arise from overspecialization.

✓ To develop the potentialities of people for the next leveljob.

✓ To ensure smooth and efficient working of adepartment.

✓ To promote individual and collective morale, a sense of responsibility, co- operative attitudes

and goodrelationships.

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1.1.6 TRAININGMETHODS:

As a result of research in the field of training, a number of programmers are available. Some of

these are new methods, while others are improvements over the traditional methods. The training

programmers commonly used to train operative and supervisory personnel are discussed below.

These programmes are classified into on the job and off the job trainingprogrammes.

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On-the-jobMethods Off-the-jobMethods

* Jobrotation * Vestibuletraining

* Coaching * Roleplaying

* Jobinstructionor * LectureMethods

* Trainingthrough * Conferenceor

Step-by-step Discussion

* CommitteeAssignments *ProgrammedInstruction

* Case Studies

On-The – Job TrainingMethods:

This type of training, also known as job instruction training, is the most commonly used

method. Under this method, the individual is placed on a regular job and taught the skills

necessary to perform that job. The trainee learns under the supervision and guidance of a

qualified worker or instructor. On the job training has the advantage of giving firsthand

knowledge and experience under the actual working conditions. On-the-job training

methodsinclude jobrotation, coaching, job instruction or training through step-by-step and

committeeassignments.

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 (a) JOBROTATION:

This type of training involves the movement of the trainee from one job to another. The trainee

receives job knowledge and gains experience from his supervisor or trainer in each of the

different job assignments. Though this method of training is common in training managers for

general management positions, trainees can also be rotated from job to job in workshop

jobs. This method gives an opportunity to the

traineetounderstandtheproblemsofemployeesonotherjobsandrespectthem.

The trainee is placed under a particular supervisor functions as a coach in training the

individual. The supervisor provides who feedback to the trainee on this performance and offers

him some suggestions for improvement. Often the trainee shares some of the duties and

responsibilities his burden. A limitation of this method of training is

thatthetraineemaynothavethefreedomoropportunitytoexpresshisownideas.

1.1.7 THE TRAININGPROCEDURE:

One of the parts of this programme was the job instruction-training course, which was concerned

with how to teach? The training procedure discussed below is essentially an adoption of the job

instruction training course, which has been proved to have a greatvalue.

(a) Preparing the Instructor: The instructor must know both the job to be taught and how to teach

it. The job must be divided into logical parts so that each can be taught at a proper time

without the trainee-losingplan.

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Know the job or subject he is attempting toteach,

Have the aptitude and abilities toteach,

Have willingness towards theprofession,

Have a pleasing personality and capacity forleadership,

Have the knowledge of teaching principles andmethods,

Be a permanent student, in the sense that he should equip himself with the latest concepts

andknowledge.

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1.2 INDUSTRY PROFILE:

The Coca-Cola Company is an American multinational beverage

corporation and manufacturer, retailer and marketer of nonalcoholic

beverageconcentrates and syrups, whichisheadquartered in Atlanta,

Georgia. The company is best known for its flagship product

CocaCola, invented in 1886 by pharmacistJohn Stith Pemberton in

Columbus, Georgia. The Coca-Cola formula and brand were bought

in 1889 by Asa Griggs Candler (December 30, 1851 – March 12,

1929), who incorporated The Coca-Cola Company in 1892. The company operates a franchised

distribution system dating from 1889 whereThe

Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers

throughout the world who hold an exclusiveterritory.

The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. Its

stock is listed on the NYSE and is part of DJIA, S&P 500 index, the Russell 1000 Index and the

Russell 1000 Growth Stock Index. Its current chairman and CEO is MuhtarKent.

1.18ACQUISITIONS:

The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960, the

Indian cola brand Thums Up in 1993, and Barq's in 1995. In 2001, it acquired the Odwalla

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 brand of fruit juices, smoothies and bars for $181 million In 2007, it acquired Fuze Beverage

from founder Lance Collins and Castanea Partners for an estimated $250 million. The

company's 2009 bid to buy a Chinese juice maker ended when China rejected its $2.4 billion

bid for the Huiyuan Juice Group on the grounds that it would be a virtual monopoly.

Nationalism was also thought to be a reason for aborting the deal. In 1982, Coca-Cola

purchasedColumbia Picturesfor $692 million. It sold the movie studio to Sony for $3 billion

in1989.

1.18.1 AWARDS:

Stakeholders recognize Coca-Cola India’s efforts towards water stewardship and Sustainability the

BU celebrates World WaterDay.

Coca-Cola’s commitment and continuous endeavors in the area of environment conservation, water

stewardship and sustainability have been recognized at several stakeholder forums. These

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recognitions, coming around, this World Water Day are special as many of these awards are for its

efforts to Reduce, Reuse and Replenishwater.

The Company was recently awarded the coveted Vishwakarma Award for its outstanding efforts

in the field of Corporate Social Responsibility. Coca-Cola India received the award as a

recognition for its rain water harvesting efforts in partnership with communities across the

country. These awards have been instituted by the Construction Industry Development

Council (CIDC) – the apex body established by the Planning Commission of India and the
Construction Industry. CIDC is dedicated towards promoting best practices in the Indian

constructionindustry.

 Coca-Cola India was also awarded the coveted

Chanakya Awards 2011 by the prestigious Public

Relations Council of India (PRCI) for using

communication as a tool for creating awareness

on water conservation. The award was presented

to the Company in recognition of the

communicationstool-

The Ripple Effect, developed for sharing best practices in Water and Sanitation project of Coca-

Cola and UN-HABITAT in India & Nepal. The award recognizes the Company’s efforts in reaching

out to the stakeholders and partners; a far-reaching impact on water conservation, water access and

sanitation; and creating a ripple effect by creating a partnership that blossomed into a partnership

over nearly 20 NGOs, government department andinstitutions.

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 1. The same project Ripple Effect- with UN Habitat was

also awarded the coveted prize of ‘Best Use of Public

Relations for a Social Cause Award’ at the First Indian

PR and Corporate Communication Awards instituted by

the leading communication house –Exchange4Media.

Exchange4Media is one of the most credible and the

largest source of media, advertising and marketing information in the country.

2. PRCI also recognized the Company’s efforts towards

transparency and openness with respect to its

stakeholders by awarding its corporate website the

Silver award in the country’s best website category.

PRCI noted that the website had been used as a tool to

interact and engage with stakeholders includingformer employees which further enhanced

engagement. The Company’s website is a one stop hub for information on economic, social and

environmental matters on the Coca-Cola system in India.

In addition, Coca-Cola India’s New Year calendar based on the theme of environment and,

sustainability has been recognized as an innovative and unique attempt at promoting

environmental awareness in the country, by PRCI. PRCI noted while giving away the Silver

Prize that, coming from a company that is known across the world for its brands and its

marketing capability, the Environment calendar reflects its global focus on ‘Sustainability”.

The calendar has been shared with more than 25,000 stakeholders across thecountry.

Andhra Pradesh Government Confers ‘Best Management Award’ To Hindustan Coca-Cola

Beverages Pvt. Limited.

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On the occasion of International Workers’ Day on May 1st, 2010, Andhra Pradesh government

conferred the “Best Management Award” of the year to the Andhra Pradesh operations of the

Hindustan Coca-Cola Beverages Private Limited (HCCBPL). Honorable Chief Minister of

Andhra Pradesh, K Rosaiah gave away the award to South Region Vice President of the

Company, Deepak Kaul and South Region HR Manager, G V R K Raju at a special award

ceremony. The company was recognized for having best work place practices

and best-in-the-class safety measures and also for

successfullyimplementingseveralcorporatesocialresponsibilityinitiativesoverthepast3years.

Speaking at the occasion, Deepak Kaul, South Region Vice President of Hindustan Coca-Cola

Beverages said, “We are very pleased to be selected for this prestigious award amongst a peer

group of companies who strive to achieve industrial friendly atmosphere in thestate.”

Consistent Participative Management Forum Practices, Productivity Improvement Practicesas

well as Employee Engagement and Welfare practices were some of the parameters basis which

the award committee bestowed HCCBPL with the prestigious award. The “Abhyaasa Project”

(Systematic on- the-job training) in particular, undertaken with the objective of enhancing

technical skills of casual workers and as well as consistent harmonious industrial relations

displayed by the workers as well as the management also helped the company bag the

covetedaward.

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 Chapter -2

Company Profile
2.1 A brief insight – The FMCG industry inIndia

Fast Moving Consumer Goods (FMCG), also known as Consumer-Packaged Goods (CPG) are

products that have a quick turnover and relatively low cost. Consumers generally putless

thought into the purchase of FMCG than they do for otherproducts.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players

hadbeenfacingsevereproblemsonaccountofincreasedcompetitionfromsmallandregional players

and from slow growth across its various product categories. As a result, most of the

companieswereforcedtorevamptheirproduct,marketing,distributionandcustomerservice

strategies to strengthen their position in themarket.

By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly.

With the liberalization and growth of the Indian economy, the Indian customer witnessed an

increasing exposure to new domestic and foreign products through different

media,suchastelevisionandtheInternet.Apartfromthis,socialchangessuchas increasein the

number of nuclear families and the growing number of working couples resulting in increased

spending power also contributed to the increase in the Indian consumers' personal consumption.

The realization of the customer's growing awareness and the need to meet

changingrequirementsandpreferencesonaccountofchanginglifestylesrequiredtheFMCG

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producing companies to formulate customer-centric strategies. These changes had a positive

impact,leadingtotherapidgrowthintheFMCGindustry.Increasedavailabilityofretail

space, rapid urbanization, and qualified manpower also boosted the growth of the organized

retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of the

FMCG industry by focusing on rural markets, direct distribution, creating new product,

distribution and service formats. The FMCG sector also received a boost by government led

initiativesinthe2003budgetsuchasthesettingupofexcisefreezonesinvariouspartsofthe country

that witnessed firms moving away from outsourcing to manufacturing by investing in thezones.

ThoughtheabsoluteprofitmadeonFMCGproductsisrelativelysmall,theygenerallysellin large

numbers and so the cumulative profit on such products can be large. Unlike some industries,

such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every

time the economy starts to dip. A person may put off buying a car but he will not put off having

hisdinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global

marketdip,becausetheygenerallysatisfyratherfundamental,asopposedtoluxuriousneeds.

TheFMCGsector,whichisgrowingattherateof9%isthefourthlargestsectorintheIndian Economy

and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the South

Indian region. It is predicted that in the year 2010, the FMCG sector will be worth

Rs.143000cr.ThesectorbeingoneofthebiggestsectorsoftheIndianEconomyprovidesup to 4

million jobs. (Source: HCCBPL, MonthlyCircular)

In India, beverages form an important part of the lives of people. It is an industry, in which the

players constantly innovate, in order to come up with better products to gain more consumers

and satisfy the existing consumers.

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 BEVERAGES

NON-
ALCOHOLIC
ALCOHOLIC

NON-
CARBONATED
CARBONATED

COLA NON-COLA NON -COLA

Fig 2.0 BEVERAGES IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product

to the right person. The different ways of segmenting it are as follows:

❖ Alcoholic, non-alcoholic and sportsbeverages.

❖ Natural and Syntheticbeverages.

❖ In-home consumption and out of home on premisesconsumption.

❖ Age wise segmentation i.e., beverages for kids, for adults and for seniorcitizens.

❖ Segmentation based on the amount of consumption i.e., high levels ofconsumption and low levels

ofconsumption.

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If thebehavioralpatternsofconsumersinIndiaarecloselynoticed,itcouldbeobservedthat consumers

perceive beverages in two different ways i.e., beverages are a luxury and that beverages have to be

consumed occasionally. These two perceptions are the biggest challenges faced by the beverage

industry. In order to leverage the beverage industry, it is important to address this issue so as to

encourage regular consumption as well as and to make the industry more affordable. Four strong

strategic elements to increase consumption of the products of the beverage industry in Indiaare:

❖ The quality and the consistency of beverages needs to be enhanced so thatconsumers are satisfied

and they enjoy consumingbeverages.

❖ The credibility and trust need to be built so that there is a very strong and safe feeling that the

consumers have while consuming thebeverages.

❖ Consumer education is a must to bring out benefits of beverage consumptionwhether in terms of

health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to thecategory.

❖ Communication should be relevant and trendy so that consumers are able to findan appeal to go

out, purchase andconsume.

The beverage market has still to achieve greater penetration and also a wider spread of

distribution. It is important to look at the entire beverage market, as a big opportunity, for brand

and sales growth in turn to add up to the overall growth of the food and beverage industry in

the economy.

2.1.1. Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and

serves as the standard against which we weigh our actions and decisions.

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❖ To refresh theworld...

❖ To inspire moments of optimism andhappiness...

❖ To create value and make adifference.

2.1.2. Vision

OurvisionservesastheframeworkforourRoadmapandguideseveryaspectofourbusiness

bydescribingwhatweneedtoaccomplishinordertocontinueachievingsustainable,quality growth.

❖ People: Be a great place to work where people are inspired to be the best they canbe.

❖ Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy

people's desires andneeds.

❖ Partners: Nurture a winning network of customers and suppliers, together we create mutual,

enduringvalue.

❖ Planet: Be a responsible citizen that makes a difference by helping build and support

sustainablecommunities.

❖ Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

❖ Productivity: Be a highly effective, lean and fast-movingorganization.

2.1.3. WINNINGCULTURE

Our Winning Culture defines the attitudes and behaviours that will be required of us to make our

2020 Vision a reality.

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2.1.4. LIVE OURVALUES

Our values serve as a compass for our actions and describe how we behave in the world.

❖ Leadership: The courage to shape a betterfuture.

❖ Collaboration: Leverage collectivegenius.

❖ Integrity: Bereal.

❖ Accountability: If it is to be, it's up tome.

❖ Passion: Committed in heart and mind.

❖ Diversity: As inclusive as ourbrands.

❖ Quality: What we do, we dowell.

2.1.5. FOCUS ON THEMARKET

❖ Focus on needs of our consumers, customers and franchisepartners.

❖ Get out into the market and listen, observe andlearn.

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❖ Possess a worldview.

❖ Focus on execution in the marketplace everyday.

❖ Be insatiablycurious.

2.1.8. WORKSMART

❖ Act withurgency.

❖ Remain responsive tochange.

❖ Have the courage to change course whenneeded.

❖ Remain constructivelydiscontent.
2.1.9. ACT LIKEOWNERS

❖ Be accountable for our actions andinactions.

❖ Steward system assets and focus on buildingvalue.

❖ Reward our people for taking risks and finding better ways to solveproblems.

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❖ Learn from our outcomes -- what worked and whatdidn’t.

2.1.10. BE THEBRAND

❖ Inspire creativity, passion, optimism andfun.

2.2. HISTORY OFCOCA-COLA

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a

drugstoreinColumbus,GeorgiabyJohnPemberton,originallyasacocawinecalledPemberton's

28
French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a

Europeancocawine.

In1886,whenAtlantaandFultonCountypassedprohibitionlegislation,Pembertonrespondedby

developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first sales

were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent

medicine for five cents a glass at soda fountains, which were popular in the United

[9]
States at the time due to the belief that carbonated water was good for the health. Pemberton

claimed Coca- Cola cured many diseases, including morphine addiction, dyspepsia,

neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage

on May 29 of the same year in the AtlantaJournal.

By1888,threeversionsofCoca-Cola—soldbythreeseparatebusinesses—wereonthemarket. Asa

Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the

Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to

morphine,Pembertonsoldtherightsasecondtimetofourmorebusinessmen:J.C.Mayfield,A.O.

Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley

Pemberton began selling his own version of theproduct.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two

manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his

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beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to

establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of

the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret

Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her

signature on

thebillofsalehadbeenforged,andsubsequentanalysishasindicatedJohnPemberton'ssignature was

most likely a forgery aswell.

In 1892 Candler incorporated a second company, The Coca-Cola Company (the current

corporation), and in 1910 Candler had the earliest records of the company burned, further

obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status

of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after

the company made minor changes in the sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall

advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first

appeared in 1955.

Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original

bottleswereBiedenharnbottles,verydifferentfromthemuchlaterhobble-skirtdesignthatisnow so

familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from

Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and

were so persuasive that Candler signed a contract giving them control of the procedure for only

onedollar.Candlernevercollectedhisdollar,butin1899Chattanoogabecamethesiteofthefirst Coca-

Cola bottling company. The loosely termed contract proved to be problematic for the company

for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract
to other companies, effectively becoming parent bottlers. Coke concentrate, or Coke

syrup,wasandissoldseparatelyatpharmaciesin 31 smallquantities,asanover-thecounterremedy

for nausea or mildly upsetstomach.

OnApril23,1985,Coca-Cola,amidmuchpublicity,attemptedtochangetheformulaofthedrink with

"New Coke". Follow-up taste tests revealed that most consumers preferred the taste of New

Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's

nostalgiafortheolddrink,leadingtoabacklash.Thecompanygaveintoprotestsandreturnedto a

variation of the old formula, under the name Coca-Cola Classic on July 10,1985.

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005

they plannedtolaunchaDietCokeproductsweetenedwiththeartificialsweetenersucralose,thesame

sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product,

Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame potassium. In

2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins

B6, B12, magnesium,

niacin,andzinc,marketedas"DietCokePlus”.OnJuly5,2005,itwasrevealedthatCoca-Colawould

resume operations in Iraq for the first time since the Arab League boycotted the company in

1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."

The word "Classic" was truncated because "New Coke" was no longer in production,

eliminating the need to differentiate between the two. The formula remained unchanged.

31
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16ouncebottles

soldinpartsofthesoutheasternUnitedStates.Thechangeispartofalargerstrategytorejuvenate the

product's image. In November 2009, due to a dispute over wholesale prices of Coca-Cola

products, Costco stopped restocking its shelves with Coke and DietCoke.

2.3. PORTER’S FIVEFORCES

a) RIVALRY AMONG EXISTINGFIRMS:

The greatest competition that Coca-Cola faces is from the rival sellers within the industry. Coca-

Cola, Pepsi Co, and Cadbury Schweppes are among the largest competitors in thisindustry, and

they are all globally established which creates a great amount of competition. Aside from these

major players, smaller companies such as Cott Corporation and National

BeverageCompanymakeuptheremainingmarketshare.Allfiveofthesecompaniesmakea

portion of their profits outside of the UnitedStates.

32
ThoughCoca-Colaownsfourofthetopfivesoftdrinkbrands(Coca-Cola,DietCoke,Fanta, and

Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, Coca- Cola has

higher sales in the global market than PepsiCo, PepsiCo is the main competitor for CocaCola

and these two brands have been in a power struggle for years (Murray, 2006c).

Cokehasbeenmoredominantwitha53%ofmarketshareasin1999comparedtoPepsiwith a market

share of21%.

AccordingtoBeverageDigest's2008reportoncarbonatedsoftdrinks,PepsiCo'sU.S.market

sharehasincreasedto30.8%,whiletheCoca-ColaCompany'shasdecreasedto42.7%dueto

Pepsimarketingschemesstillthehigherlargegapbetweenthemarketsharecanbeattributed to the

fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its bottler's

and distribution network especially in developedmarkets.

"The Coca-Cola Company" is the largest soft drink company in the world. Every year

800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling plants

with some exceptions are locally owned and operated by independent business people who are

native to the nations in which they are located. Coca-Cola manufactures, distributes and

markets non-alcoholic beverage concentrates and syrups, including fountain syrups.

33
It supplies concentrates and beverage bases used to make the products and provides

managementassistancetohelpitsbottlersensuretheprofitablegrowthoftheirbusiness.This has put

Pepsi at a significant disadvantage compared to US market. Overall, Coca-Cola

continuestooutsellPepsiinalmostallareasoftheworld.However,exceptionsincludeIndia, Saudi

Arabia andPakistan.

Bymostaccounts,Coca-ColawasIndia'sleadingsoftdrinkuntil1977whenitleftIndiaafter

anewgovernmentordered,TheCoca-ColaCompanytoturnoveritssecretformulaforCoke and

dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA).

In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-

owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture

marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed. PepsiCo

bought out its partners and ended the joint venture in 1994. In 1993, TheCoca-

ColaCompanyreturnedinpursuanceofIndia'sLiberalizationpolicy.In2005,The

CocaColaCompanyandPepsiCotogetherheld95%marketshareofsoft-drinksalesinIndia. Coca-

Cola

India's market share was52.5%.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the

ColdWarended.In1972,PepsiCoCompanystruckabarteragreementwiththegovernment

oftheSovietUnion,inwhichPepsiCowasgrantedexportationandWesternmarketingrights to

Stolichnaya vodka in exchange for importation and Soviet marketing ofPepsi-Cola.

This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the

34
U.S.S.R. Pepsi, as one of the first American products in the Soviet Union, became a symbol of

that relationship and the Soviet policy.

Brand name loyalty is another competitive pressure. The Brand Keys Customer Loyalty

Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries.

DietPepsiranked17thandDietCokeranked36thashavingthemostloyalcustomerstotheir brands.

The new competition between rival sellers is to create new varieties of soft drinks, such as

vanilla and cherry, in order to increase sales and getting newcustomers.

Pepsi is however trying to counter this by competing more aggressively in the emerging

economies where the dominance of Coke is not as pronounced, with the growth in emerging

markets significantly expected to exceed the developed markets, rivalry in international market

is going to be more pronounced.

Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting Pepsi's

positioning as "The Choice of a New Generation." In 1975, Pepsi began showing

peopledoingblindtastetestscalledPepsiChallengeinwhichtheypreferredoneproductover the

other. Pepsi started hiring more popular spokespersons to promote theirproducts.

In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi

Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions

of packages and cups. They could redeem the points for free Pepsi lifestyle merchandise. After

researching and testing the program for over two years to ensure that it resonated with

consumers, Pepsi launched Pepsi Stuff, which was an instant success.

35
Tens of millions of consumers participated. Pepsi outperformed Coke during the summer ofthe

AtlantaOlympics,heldatCoke'shometownwhereCokewastheleadsponsorfortheGames. Due

to its success, the program was expanded to include Mountain Dew into Pepsi's

internationalmarketsworldwide.Thecompanycontinuedtoruntheprogramformanyyears,

continually innovating with new features eachyear.

Coca-ColaandPepsiengagedina"cyber-war"withthere-introductionofPepsiStuffin2005 &

CocaCola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi Stuff

ending its services and Coke Rewards still offering prizes on their website. Both were loyalty

programs that give away prizes and product to consumers after collecting bottle caps and 12

or 24 pack box tops, then submitting codes online for a certain number of points.

However,Pepsi'sonlinepartnershipwithAmazonallowedconsumerstobuyvariousproducts

with their "Pepsi Points", such as mp3 downloads. Both Coca-Cola and coke previously

had a partnership with the iTunesStore.

b) POTENTIALENTRANTS:

Newentrantsarenotastrongcompetitivepressureforthesoftdrinkindustry.Coca-Colaand Pepsi Co

dominate the industry with their strong brand name and great distributionchannels. In addition,

the soft-drink industry is fully saturated and growth is small. This makesit very difficult for

new, unknown entrants to start competing against the existing firms.

Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, and

economiesofscale.Newentrantscannotcompeteinpricewithouteconomiesofscale.These high

capital requirements and market saturation make it extremely difficult for companies to enter

the soft drink industry therefore new entrants are not a strong competitiveforce.

Capitalrequirementsforproducing,promoting,andestablishinganewsoftdrinktraditionally

havebeenviewedasextremelyhigh.Accordingtoindustryexperts,thismakesthelikelihood of
36
potential entry by new players quite low, except perhaps in much localized situations that matter

little to Coke or Pepsi. Yet, while this view may reflect conventional wisdom, some industry

observers question whether a new time is coming, with 'new age' beverages selling to well-

informed and health-informed and health-conscious consumers. This issue was

beginningtograbtheattentionofbothCokeandPepsiinthesummerof1992,whentheyboth were not

able to explain a drop in their June 1992sales.

c) SUBSTITUTES:
Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit

juices are the more popular substitutes. Availability of shelf space in retail stores as well as

advertising and promotion traditionally has had a significant effect on beverage purchasing

behaviour.OveralltotalliquidconsumptionintheUnitedStatesin1991includedCoca-Cola's 10%

share of all liquidconsumption.

“For years the story in the non-alcoholic sector centered on the power struggle between Coke

and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new

product flavours and looking to noncarbonated beverages for growth.”

Substitute products are those competitors that are not in the soft drink industry. Such

substitutesforCoca-Colaproductsarebottledwater,sportsdrinks,coffee,andtea,juicesetc. Bottled

water and sports drinks are increasingly popular with the trend to be a more health-conscious

consumer. There are progressively more varieties in the water and sports drinks that appeal to

different consumer's tastes, but also appear healthier than softdrinks.

In addition, coffee and tea are competitive substitutes because they provide caffeine. The

consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the

caffeine and lose the sugar and carbonation.

37
Blended coffees are also becoming popular with the increasing number of Starbucks, Barista

andCCDstoresthatoffermanydifferentflavourstoappealtoallconsumermarkets.Itisalso cheap for

consumers to switch to these substitutes making the threat of substitute products very strong

(Data monitor,2005).

The growth rate has been recently criticized due to the market saturation of soft drinks. Data

monitor (2005) stated, “Looking ahead, despite solid growth in consumption, the global soft

drinks market is expected to slightly decelerate, reflecting stagnation of market prices.”

Thechangeattributedtotheothergrowingsectorsofthenon-alcoholicindustryincludingtea

&coffeeis11.8%andbottledwateris9.3%.Sportsdrinksandenergydrinksarealsoexpected to

increase in growth as competitors start adopting new productlines.

Profitability in the soft drink industry will remain rather solid, but market saturation has caused

analysts to suspect a slight deceleration of growth in the industry (2005). Because of this, soft

drink leaders are establishing themselves in alternative markets such as the snack, confections,

bottled water, and sports drinks industries.

In order for soft drink companies to continue to grow and increase profits they will need to

diversify their product offerings. So, in order to compete with the substitutes industry, coca-

cola has diversified from just carbonated drink industry to other substitute and so have other

brands like Pepsi, Dr pepper/Snapple.

d) BARGANING POWER OFBUYERS:

Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's real

'buyers' have been local bottlers who are franchised -or are owned, especially in the case of

Coke- to bottle the companies' products and to whom each company sells its patented syrups

38
or concentrates. While Coke and Pepsi issue their franchise, these bottlers are in effect the

'conduit' through which these international cola brands get to local consumers

Through the early 1980's, Coke's domestic bottlers were typically independent family

businesses deriving from franchises issued early in the century. Pepsi had a collection of similar

franchises, plus a few large franchisees that owned many locations. Until 1980, Coke and Pepsi

were somewhat restricted in owning bottling facilities, which was viewed as a restraint of free

trade. Jimmy Carter, a Coke fan, changed that by signing legislation to allow soft-drink

companies to own bottling companies or territories, plus upholding the territorial integrity of

soft-drink franchises, shortly before he left office.

Also, the three most important channels for soft drinks are supermarkets, fountain sales, and

vending.In1987,supermarketsaccountedforabout40%oftotalU.S.softdrinkindustrysales,

fountain sales represented about 25%, and vending accounted for approximately 13%. Other

retailers represent the remainingpercentage.

While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of

bottling companies, Coca-Cola uses its own network of wholesalers for their fountain syrup

distribution, and Pepsi distributes its fountain syrup through its bottlers.

e) BARGANING POWERSUPPLIERS:

Theprincipalrawmaterialusedbythesoft-drinkindustryintheUnitedStatesishighfructose

cornsyrup,aformofsugar,whichisavailablefromnumerousdomesticsources.Theprincipal raw

material used by the soft-drink industry outside the United States is sucrose. It likewise is

available from numeroussources.

Another raw material increasingly used by the soft-drink industry is aspartame, asweetening

agent used in low-calorie soft-drink products. Until January 1993, aspartame was available

39
from just one source -the NutraSweet Company, a subsidiary of the Monsanto Company- in the

United States due to its patent, which expired at the end of1992.

Coke managers have long held 'power' over sugar suppliers. They view the recently expired

aspartame patents as only enhancing their power relative to suppliers.

2.4. PESTEL Analysis ofCOCA-COLA:

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It is

a tool that helps the organizations for making strategies and to know the EXTERNAL

environment in which the organization is working and is going to work in the future.

Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic drinks

also need to undergo this PESTLE analysis to know about the external environment (especially

their competitors and the opportunities available) in order to keep pace with the fast-growing

economy.

1. Political Analysis:

Political factors are how far a government intervenes in the operations of the company. The

political factors may include tax policy, trade restrictions, environmental policy, laws imposed

on the recruiting labours, amount of permitted goods by the government and the service

provided by the government.

Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and

Drug Administration), it is an agency in the United States Department of Health and Human

Services. Its headquarters is in USA and it has started opening offices in foreign

countriesaswell.ThejoboftheFDAistocheckandcertifywhethertheingredientsusedin
40
themanufacturingofCoca-Colaproductsintheparticularcountryismeetingtothestandards or not.

In Coca-Cola the company takes all the necessary steps to analyze thoroughlybefore

introducing any ingredients in its products and get prior approval from the FDA. The company

also has to take into consideration of the regulation imposed by FDA on plastic bottledproducts.

Apart from FDA the other political factors include tax policies and accounting standards. The

accounting standards used by the company changes from time to time which have a

significant role in the reported results.

Thecompanyalsoissubjectedtoincometaxpoliciesaccordingtothejurisdictionofvarious countries.

In addition to this, the company is also subjected to import and excise duties for distribution of

the products in the countries where it does not have the outsourcingunits.

Moreover,ifthereisany unrestorchangesinthegovernmentandanykindofprotestbythe

politicalactivistsmaydeclinethedemandfortheproducts.Also,thesituationsliketheunsure

conditions prevailing in Iraq and escalation of the terrorist activities in these areas could affect

the international market of our product. It creates an inability for the company to penetrate in

the markets of such countries.

2. EconomicFactors:

The economic factors analyze the potential areas where the firm can grow and expand. It

includes the economic growth of the country, interest rates, exchange rates, inflation rates, wage

rates and unemployment in the country.

Thecompanyfirstanalyzestheeconomicconditionofthecountrybeforeventuringintothat country.

When there is an economic growth in the country, the purchasing power among

peopleincreases.Itgivesthecompanyorthemarketeragoodchancetomarkettheproduct. CocaCola,

in the past identified this correctly and rightly started its distribution across various countries.

The net operating profits for the company outside US stands at around

41
72%.Alongwiththisthecompanyuses63varioustypesofcurrenciesotherthanUSDollar. Hence

there is a definite impact in the revenues due to the fluctuating foreign currency exchange rates.

A strong and weak currency tends to affect the exporting of the products globally.

Interest rates are the rate which is imposed on the company for the money they have borrowed

from government. When there is an increase in the interest rates, it may deter the

companyinfurtherinvestmentasthecostforborrowingishigher.Coca-Colausesderivative financial

instruments to cope up with the fluctuating interest rates. Inflation and wage rate

gohandinhand,whenthereis anincreaseintheinflationtheemployeedemandforahigher wage rate

to cope up with the cost ofliving.

This comes as additional cost for the company which cannot be reflected in the price of the

final product as the competition and risk in this segment is higher. This is a threat in the external

environment faced by the company. From the above explanation it is clearly seen that the

economic factors involve a major impact in the behaviour of the company during various

economic situations.

3. Social Factors:

Social factors are mainly the culture aspects and attitude, health consciousness among people,

population growth with age distribution, emphasis on safety. The company cannot change the

social factors but the company has to adjust itself to the changing society. The company adapts

various management strategies to adapt to these social trends.

Coca-Cola which is a B2C company, is directly related to the customer, so social changes are

the most important factors to consider. Each and every country has a unique culture and attitude

among the people. It is very important to know about the culture before marketing in a particular

country. Coca-Cola has about 3300+ products in their stable, when entering into a country it

does not introduce all the products. It introduces minimum number of products according to

the culture of the country and the attitude of the people.

42
Consumers and government are becoming increasingly aware of the public health

consequences,mainlyobesitywhichisthesecondsocialfactorinthesoftdrinksindustry.It

inspiredthecompanytoventureintotheareasofDietcokeandzerocaloriesoftdrinks.The problem of

obesity is taken seriously among the youngsters who like to maintain a good physique. Hence

coke introduced dietary products for those youngsters who can enjoy coke

withzerocalories.Inoneofthestudies,itissaidthat“Consumerfromtheagegroups37to55
are also increasingly concerned with nutrition”. Since many are aware, they are concerned with

the longevity of their lives. This will affect the demand of the company in the existing product

and also is an opportunity to venture into new health and energy drinks industry.

Populationgrowthrateandtheagedistributionisanothersocialfactortobeconsidered.Itis very

important because non-alcoholic markets have most of its share from the children and

youngsters.Adultsusedtocelebratemostlywithalcohol.Theagedistributionofthecountry becomes

important for the success of the product in acountry.

4. TechnologicalFactors:

Technology plays a varied role in the soft drinks industry. The manufacturing and

distributionoftheproductsisrelativelyaLow-Techbusiness,althoughthecreationofanew product

with the perfect blend and taste is a science (an art initself).

Technological contributions are most important in packaging. The company rely on their

bottlingpartnersforasignificantportionoftheirbusiness.Nearly83%oftheworldwideunit

casevolumeismanufacturedanddistributedbytheirbottlingpartnersinwhomthecompany

doesnothavecontrollingpower.Henceitisnecessaryforthecompanytomaintainacordial relation

with their bottling partners. If the company do not give ample support in pricing, marketing and

advertising then the bottling industry while increase their short-term profits, may become

detrimental to thecompany.

43
Theadvancementintechnologyinthecompanyhasledto:Introductionofnewwaysforthe

availability of Coca-Cola, it introduced general vending machines all over the world. In

products it led to the development of new products like Cherry Coke, Diet Coke etc. The

technical advancement in the bottling industries include, introduction of recyclable andno

refillable bottles, introduction of cans which are trendy, stylish and popular among the

youngsters.

1. LegalFactors

The legal factors include discrimination law, customer law, antitrust law, employment law and

health and safety law. In Coca-Cola the business is subjected to various laws and regulation in

the numerous countries in which they do the business, the laws include competition, product

safety, advertising and labelling, container deposits, environment protection, labour practices.

In the US the products of the company is subjected to various acts like Federal Food, Drug and

Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act, various

environment related acts and regulations, the production, distribution, sale and

advertisingofalltheproductsaresubjectedtovariouslawsandregulations.Changesinthese laws

could result in increased costs and capital expenditures, which affects the company profitability

and also the production and distribution of theproducts.

Various jurisdictions may adopt significant regulations in the additional product labelling and

warning of certain chemical content or perceived health consequences. These requirements if

become applicable in the future the company must be ready to accept and have necessary

changes in hand for the same.

2. EnvironmentFactors

44
These factors include the environment such as the weather conditions and the seasons in

whichpeopleprefertobuycoolbeverages.Also,thecompanymustfollowtheenvironmental issues

related to the product manufacturing, packaging and distributing in variouscountries.

It must adhere to the norms and market the product accordingly. Usage of renewable plastic in

the PET bottles is followed by the company strictly.

2.5. SWOT Analysis ofCOCA-COLA

STRENGTHES WEAKNESSES

Distribution Network.Strong Health Care Issues.

Brand Image.
Small Scale Sector Reservations.
LowCostofOperation.

OPPORTUNITIES S

W THREATS
Large DomesticMarkets.
O Imports.
Export Potential.
T
Tax & Regulatory Sector.

45
 S

HighIncomeamongPeople.
Slowdown in Rural Demand.

1.1STRENGHTS:

a) DISTRIBUTIONNETWORK

The Company has a strong and reliable distribution network. The network is formed on the

basis of the time of consumption and the amount of sale yielded by a particular customer in one

transaction. It has a distribution network consisting of a number of efficient salesmen,

700,000retailoutletsand8000distributors.Thedistributionfleetincludesdifferentmodesof

distribution,from10tonnetoopenbaythreewheelersthatcannavigatethenarrowalleyways of

Indiancities–constantlykeepCoca-Colabrandsavailableineverynookandcornerofthe Country’s

remotestareas.

b) STRONG BRANDIMAGE

Cokehasitshistoryofaboutmorethanacenturyandthisprolongedsustenancehasdefinitely added to

the brand image in the minds of the consumers and to its wallet. The products produced and

marketed by Coca-Cola India have a strong brandimage.

StrongbrandnameslikeCoca-Cola,Fanta,Thumsup,LimcaandMaazaadduptothebrand name of

Coca-Cola Company as a whole. Coca Cola India for the first time has come out with corporate

campaign in India targeting its stakeholders. The multimedia campaign “Little Drops of Joy "

46
is aimed at raising the corporate brand image of the company which took a heavy beating with

a number of controversies it faced in different domains.

The new campaign is a part of a complete restructuring exercise in the Indian arm of this

globalchange.CocaColarecentlyannounceditsnewcorporatestrategycalledthe“5Pillar" strategy.

The company has identified the 5 pillarsas

• People.

• Planet.

• Portfolio.

• Partners.

• Performance.

c) LOW COST OFOPERATIONS

Inlightofthecompany’sAffordabilityStrategy,Coca-Colawentaboutbringingacost-focus

cultureinthecompany.ThisincludedprocurementEfficiencies–throughfocusonkeyinput

materials,tradedisciplineandcontrolandproactivetaxmanagementthroughtaxincentives, excise

duty reduction and creating marketing companies. These measures have reduced the costs of

operations and increased profitmargins.

2. WEAKNESS:

47
i) HEALTH CAREISSUES

InIndia,thereexistsamajorcontroversyconcerningpesticidesandotherharmfulchemicals in

bottled products including Coca-Cola. In 2003, the Centre for Science and Environment

(CSE),anon-governmentalorganizationinNewDelhi,saidaeratedwatersproducedbysoft drinks

manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained

toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can contribute to

cancer and a breakdown of the immunesystem.

ii) SMALL SCALE SECTORRESERVATIONS

The Company’s operations are carried out on a small scale and due to Government restrictions

and ‘red-tapism’, the Company finds it very difficult to invest in technological advancements

and achieve economies of scale.

3. OPPORTUNITIES:

a) LARGE DOMESTICMARKETS

ThedomesticmarketfortheproductsoftheCompanyisveryhighascomparedtoanyother

softdrinkmanufacturer.Coca-ColaIndiaclaimsa58percentshareofthesoftdrinksmarket; this

includes a 42 per cent share of the colamarket.

Other products account for 16 per cent market share, chiefly led by Limca. The company

appointed50,000newoutletsinthefirsttwomonthsofthisyear,aspartofitsplanstocover one lakh

48
outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore,

Coca-Cola amounts for 74% of the beveragemarket.

b) EXPORT POTENTIAL

The Company can come up with new products which are not manufactured abroad, like Maaza

etc. and export them to foreign nations. It can come up with strategies to eliminate apprehension

from the minds of the people towards the Coke products produced in India so that there will be

a considerable number of exports and it is yet another opportunity to broaden future prospects

and cater to the global markets rather than just domestic market.

c) HIGHER INCOME AMONGPEOPLE

Development of India as a whole has lead to an increase in the per capita income thereby

causing an increase in disposable income. Unlike olden times, people now have the power

ofbuyinggoodsoftheirchoicewithouthavingtoworrymuchabouttheflowoftheirincome.

CocaCola Company can take advantage of such a situation and enhance theirsales.

4. THREATS:

i) IMPORTS

As India is developing at a fast pace, the per capita income has increased over the years and a

majority of the people are educated, the export levels have gone high. People understand trade

to a large extent and the demand for foreign goods has increased over the years.

49
Ifconsumersshiftontoimportedbeveragesratherthanhavebeveragesmanufacturedwithin

thecountry,itcouldposeathreattotheIndianbeverageindustryasawholeinturnaffecting the sales of

theCompany.

ii) TAX & REGULATORYSECTOR

The tax system in India is accompanied by a variety of regulations at each stage on the

consequence from production to consumption. When a license is issued, the production

capacity is mentioned on the license and every time the production capacity needs to be

increased,thelicenseposesaproblem.Renewingorupdatingalicenseeverynowandthen is difficult.

Therefore, this can limit the growth of the Company and poseproblems.

iii) SLOWDOWN IN RURALDEMAND

The rural market may be alluring but it is not without its problems: Low per capita disposable

incomes that is half the urban disposable income; large number of daily wage

earners,acutedependenceonthevagariesofthemonsoon;seasonalconsumptionlinkedto harvests

and festivals and special occasions; poor roads; power problems; and inaccessibility to

conventional advertising media. All these problems might lead to a slowdown in the demand

for the company’sproducts.

50
 CHAPTER-3

A Study of the Selected Research

Problem

3.1. Statement & Introduction of the research problem:

51
It aims to establish long term relationships with employees. One of the needs identified by the

employees was for opportunities for professional development. With this in mind they have

developed special programs.

First Few Sips: The purpose of this training is to provide CCIPL new hires with a sense of

Vision, Purpose, Direction, Belonging, Pride and Passion. This is the induction program to train

hires on company policies and provide them function overview. It is a 5-day workshop that

includes a plant tour and a sales visit.

Pegasus Program: The Pegasus program seeks to develop all-round top talent to fuel a pipeline

of future roles within CCIPL.

Mantra: Mantra is our university relations program; we have consistently been a preferred

recruiter in leading B-school campuses. Through the Mantra program, students get an

opportunity to work on 2-month summer internship projects with Coca- Cola India. The

program is designed for maximum learning and consists of a robust mix of project work,

coaching and assignments.

Management Trainee Program: The best performing summer interns (from the Mantra

program) are recruited as Management Trainees. The Management Trainee program is of 18

months duration and offers comprehensive, cross-functional experience in different business

verticals and the group's CSR activities.

Women in Leadership program: Globally, The Coca-Cola Company has been striving to

increase the number of women in our talent pool through recruitment and internal development

strategies. EAG Women in Leadership program was kick started in India in 2010. The program

aims at grooming women talent in the middle management level to take up higher

responsibilities.

Catalyst: Catalyst is a training program for selected managerial staff, relatively high in the

organizational hierarchy, grooming them for taking up senior management positions. Within

the organization, we recognize the need for performance and development reviews.
52
Their approach to these reviews is three pronged.

• On the job - Learning gained through current work assignments and special

projects

• Coaching and mentoring - Knowledge built through interaction with others

• Formal training – Courseware designed to develop knowledge and skills

In 2011 they launched 7 Integrated Career, Development & Performance Planning Workshops,

covering 147 associates who are people managers. Across the organization they were able to

have performance plans for 100% of the employees, career plans for 94%, development plans

for 93% and mid-year reviews for 100% of the employees.

It took nearly two years for Coca Cola to standardize many of their HR policies and how

employees were evaluated. It takes collaboration between an employee and a manager to

determine how the employee plans to enrich their skills and development. The new

technological systems that were introduced in 2008 to track skills should be updated to include

tracking of new and acquired skills.

Coca Cola's HR services goal mission is "Right skills, Right position" using the new

implemented system could be used to data mine skills for need to fill, mentor positions for hard

to fill spots. This system has the ability to identify any gaps of human resource capabilities if

an employee should leave the organization.

53
 3.2 Literature Review

• D.A. Olaniyan and Lucas. B. Ojo in the year (2008) has done their research in the topic

“STAFF TRAINING AND DEVELOPMENT: A VITAL TOOL FOR ORGANIZATIONAL

EFFECTIVENESS” and has reviewed that this paper is based on staff training and

development. This paper is basically a conceptual paper. The author says that the need for

improved productivity has become universally accepted and that it depends on efficient and

effective training is not less apparent. It has further become necessary in view of advancement

in the modern world to invest in training. Thus, the role played by staff training and

development can no longer be over-emphasized. Staff training and development are based on

the premise that staff skills need to be improved for organizations to grow. Training is a

systematic development of knowledge, skills and attitudes required by employees to perform

adequately on a given task or job. New entrants into organizations have various skills, though

not all are relevant to organizational needs. Training and development are required for staff to

enable them work towards taking the organization to its expected destination. However, for any

organization to succeed, training and re-training of all staff in the form of workshops,

conferences and seminars should be vigorously pursued and made compulsory. Finally, this

paper addresses that it is against the backdrop of the relative importance of staff training and

development in relation to organizational effectiveness.

• David Pollitt in the year (2008) has done his research in the topic “TRAINING

RESTORES PRIDE AMONG CUSTOMER- SERVICE STAFF AT JOHNSONS

APPARELMASTER (Project highlights path to significant and lasting change)” and he has

done a review in a training initiative helped to boost customer service and improve customer

relations at a large UK work wear-rental supplier, despite difficult trading conditions across its

sector. The author says that the training targeted staff who could contribute most to the
54
improvements. These included line managers and office and field-based customer-service

teams. Each group was given a clear set of performance-improvement objectives for the

training. Improvements would be monitored through assessment by the trainer during

individual IT training, coaching during individual training, discussion and questioning during

group sessions, delegate feedback as part of the format review process, system analysis of new

procedures being put into practice, and monitoring of business improvements.

• David Pollitt in the year (2009) has done his research in the topic “THOMSON REUTERS

MAPS NEW RELATIONSHIPS IN LEARNING AND COLLABORATION

(Software helps companies to keep track of various threads and aspects of training)” and says

that information is the lifeblood of business, the economy and most aspects of society, from

health care to legal affairs and scientific investigation to the chat by the coffee machine.

Thomson Reuters is an important source of information and news for businesses and other

organizations around the globe. Mind mapping is a graphical technique for visualizing

processes and projects using a structure that places an objective as a central image. Mind

mapping plays a central role in every aspect of our learning and development work, from the

needs analysis to brainstorming around course development and delivery, through data capture

and performance charting. Hence with such heavy use of mind maps across the organization,

one of the training requirements that Charles Jennings has to meet is the demand for training

on the use of Mindjet products. This is largely met by access to the company’s own web-based

tutorials, training centers or courses provided by authorized training partners, often specializing

in particular areas of application.

55
• David Pollitt in the year (2009) has done his research in the topic “SOUTHERN

COACHES MANAGERS IN A BETTER WAY OF WORKING (Training and

development

help rail company to improve organizational culture and performance)” and has said that

managers at a UK train operator have become role models for their employees, who now have

more power to take direct responsibility and reach their full potential. The change has taken

place following a management- development program at train operator Southern, working with

coaching and training company Buonacorsi Consulting. The program has so far reached 300

managers, including the managing director Chris Burchell. Some 20 managers, from

different

The International Journal ofManagement areas of the business, take part in each annual

program. This comprises a mixture of group-learning days, 360-degree feedback, personal

development, coaching techniques and written assignments. It has evolved through feedback

from a cross-functional steering group and other input from the business. The 360-degree

feedback provides evidence of progress in coaching skills. Hence, the written assignments take

the form of implementation plans for coaching in each manager’s own area of work.

• Thomas Andersson in the year (2010) has done his research in the topic “STRUGGLES

OF MANAGERIAL BEING AND BECOMING (Experiences from manager’s personal

development training)” and has reviewed this paper to investigate the struggles of managerial

identity in relation to the process of becoming/being a manager, and the personal conflicts

involved within this process. Management training tends to be based on the idea that

management concerns the acquisition of competencies, techniques and personal awareness,

while managerial practice is more fluid and contextually based. There is a challenge for

organizers of all types of management training to bridge gap between a fixed idea of what is to

56
be a manger and how management is actually practiced. The methodology used in this paper is

a qualitative longitudinal project. The longitudinal and in-depth qualitative approach facilities

an important contribution to understanding issues in developing a managerial ability. On the

whole 62 interviews and eight half-day observations were conducted. The study focuses on

only five managers in two organizations. This small sample limits the generalizability of the

research. Finally, the study puts emphasis on the role of management training in providing

templates for “how to be a manger”, but it also illustrates the doubleedged and complex role

played by context in managerial being and becoming.

• David Mc Guire and Mammed Bagher in the year (2010) has done their research in the

topic “DIVERSITY TRAINING IN ORGANIZATIONS: AN INTRODUCTION” and has

reviewed the literature on diversity training and examine the effect of power, privilege and

politics of diversity in organizations. This is a conceptual paper examining the arguments

in favor and against diversity training in organizations. It identifies the presence of

dominant groups in society leading to the marginalization

The International Journal of Management and oppression of minority diverse groups. Diversity

training has a significant role to play in fostering greater equality, inclusion and fairness in the

workplace. Critically, it can help diverse individuals and communities recoup important aspects

of their identity and enjoy productive fulfilling careers in the workplace. Diversity fosters a

new outlook in organizations through capitalizing on the perspectives of all employees and

giving voice to silenced minorities. It promotes greater understanding, communication and the

integration of different worldviews in decision making and problem solving. To embed

diversity effectively in organizations requires leadership by senior management and a

realization that diversity will improve performance metrics, rather than simply being a socially

desirable ideal. It involves recognizing that promoting diversity and an inclusive culture is a

shared responsibility and is not solely the preserve of diversity advocates or HR departments.
57
Finally, the author says that as globalization effects increase and the participation of diverse

groups in the workplace grows, there is a clear need in the field of Human Resource

Development (HRD) to commit to promoting the cause of diversity. Diversity needs to become

a priority item on the HRD agenda through embedding diversity into the curricula of HRD

programs.

• Muhammad Zahid Iqbal etc. Al in the year (2011) has done their research in the topic

“AN EMPIRICAL ANALYSIS OF THE RELATIONSHIP BETWEEN

CHARACTERISTICS AND FORMATIVE EVALUATION OF TRAINING” Their analysis

is about the relationship between characteristics and formative evaluation of Training. This

paper attempted to signify the use of formative training evaluation. The authors have carried

out a study at three public-sector training institutions to empirically test the predicted

relationship between the training characteristics and formative training evaluation under the

Kirkpatrick model (reaction and learning). This study explains the causal linkage between

components of formative training evaluation, the mediating role of reaction in the relationships

between training characteristics and learning was also investigated. The principal finding

revealed that a set of seven training characteristics explained 59% and 61% variance in reaction

and learning respectively. All training characteristics were found to have a positive impact on

reaction and learning except training contents. The study concluded with areas of future

research emphasizing on linking formative evaluation with summative one i.e., Behavior and

results.

58
 3.3 Statement of the research objectives

The main objective of studying employee training and development at coca – cola is to find

out:

• To analyse the performances and skills of employs at coca – cola.

• To study effectivity of taring program conducted for employs of Coca – Cola.

• To study job method of training at the food beverages industries Coca – Cola.

59
 3.4 Scope of the study

• To study the changes in performance skill and objective of employees at Coca-Cola.

• To study the number of training conducted and food beverages industries (Coca-Cola).

• To study job method of training at the food beverages industries (Coca-Cola).

• To analysis how training increase the moral and motivation of employees at food beverages

industries (Coca-Cola) in India.

60
 3.5Research design and methodology

Specific and proper methodology was needed to make the project report successful in this report

the methodology adopted has been concerned with techniques for collecting primary and

secondary data. This project report works of mine was centered in and around sales department

where we gathered responses from around 50 employees. primary data have been gathered on

the basis of the structuralquestionnaire, the secondary information have been gathered from the

company’s internal files and records.

61
 CHAPTER-4

DATA INTERPRETATION AND

ANALYSIS

ANALYSIS AND INTERPRETATION OF QUESTIONNAIRE

Questionnaire was prepared in view to study the changes in the performance skill and abilities

of the employees of COCA-COLA after collecting data . For this I have taken a sample size of

50 employeess and made an analysis.

1) Awareness about training?

62
Yes -90%

No-10%

Column1

No
10%

Yes
90%

Interpretation: 90% of the employees aware about the training in their organization

2) No of the training is conducted?

• Weekly

• Monthly

• Yearly

63
 Sales

weekly
23%

yearly
54%
monthly
23%

Interpretation: weekly training is better for the company training.

3) Job Methods of training?

a. On the job

b. Off the job

64
 Sales
on the job off the job

30%

70%

Interpretation: Yes 70% of the employees are needs on the job training and 30% of the

employees are comfortable off the job training.

4. Training increases morale and motivation?

Morale -70%

Motivation- 15%

Both-15%

65
 Increasing of training
Morale Motivation Both 4th Qtr

15%

15%

70%

Interpretation: The main objectives increase of training is to improving morale 70%

motivation 15% and both are 15% the improving prospecting because the training programme

was designed for growth of the company.

5)Satisfaction regarding training programme?

a. Yes- 70%

b. No-30%

66
 satisfaction or dissatisfaction
0% 0%

No
30%

Yes
70%

Interpretation:70% says it is best for growth or satisfaction or 30% are not satisfied from

the training it says waste of

6) Employees selected for the training.

All employee-10%

New recruits- 70%

67
Existing sales person-20%

80

70

60

50
Column1
40
Column2

30 Column3

20

10

0
All employees New recruits Existing sales person

Interpretation:Basically, new recruits need training as they are new in their job thus, they

are selected the training.

7) Normal duration for imparting the training

a. 2-3 days - 33%

b. 1week - 65%

c. 1 month – 2%

68
 Duration for imparting the training

2-3 days
15%

54% 1 week
30%

1 month
1%

Interpretation:The normal duration for imparting the training was considered to be the 1

week and 65% of the employees agree with this time period and considered that 2-3 days is too

short and 1 month is too long.

8) The basic method of training and development are

a. Lecture based- 40%

b. Group discussion- 30%

c. Demonstration- 20%

d. Other- 10%
69
 40%
35%
30%
25% Column2
20%
15% Column1

10%
Basic method of training and
5% development
0%

Interpretation:As training was programme was designed for the sales persons the lecture

was considered to be the best method of training followed by the group discussion.

9) Trainer comes from outside or company’s personnel is trainer.

a. Trainer from outside-60%

b. Company’s trainer-30%

c. Both-10%
70
 Trainer comes outside or company's
personnel is trainer
0%
Both
10%

Company's trainer
30% Trainer from
outside
60%

Interpretation:Company’s trainer is basically responsible for giving training to the sales

personal and for some specific purpose that comes from outside.

10) The content of the training

a. Attitude towards training -30%

b. Knowledge of company, competitors and customers-60%

71
c. Time management-10%

Content of training
4th Qtr
Time management
0%
10%

Attitude towards
training
30%

Knowledge of
company,
competitiors and
customer
60%

Interpretation:30% of respondents thinks that the content of the training is attitude towards

training and 60% of respondents thinks that the training is knowledge of company, competitors

and customer and 10% of respondents thinks that the content of training in time management.

11) After completion of training were you asked to fill a feedback form . a.

Yes- 90%

b. No-10%

72
 Filling of feedback form

Yes
41%

54%

No
5%

0%

Interpretation:90% of the employees are asked to fill the feedback form as to know the

effectiveness of the training programme. It also helps in improving the training programme

design for future.

12) Suitable method for the evaluating the training programme.

a. Questionnaire- 35%

73
b. Observation- 35%

c. Performance appraisal report- 30%

suitable method for the evaluating the

training programme

performance
appraisal report questionnaire
30% 35%

observation
35%

Interpretation: Questionnaire and observation was considered to be the suitable method for

the evaluating programme.

74
 CHAPTER-5

SUMMARY & CONCLUSION

5.1 SUMMARY OF FINDINGS

 80% Of the employees get the training in their organization

 The main factors which determine the need of training is prior performance of the employees.

75
 Yes 70% of the respondents are comfortable in discussing training needs superior where 30% are

not comfortable.

 The main objectives of training is to improving salesmanship followed by the improve prospecting

because the training programme was designed for sales person of the company.

 60% says it necessary to get trained each employee whereas 40% are not necessary to get trained

each employee.

 As trained programme was designed for the sales persons the lecture was considered to be the best

basic method of training followed by the group discussion.

 Questionnaire and observation was considered to be the suitable method for the evaluating the

training programme.

5.2 CONCLUSION

Private sector occupies a pivotal position in the Indian economy. It is considered as a pacesetter

for the rest of the economy. It has expanded and contribute a lot toward as a pacesetter for the

rest of the economy. It has expanded enormously and contribution a lot towards the economic
76
growth of country by adding a major share in the net national product generating gainful

employment & growth of every organization depends on the quality of the manpower & its

people improvement & utilization in suitable challenging jobs. Training and development is

important aspect of professionalization of our executive cadre. There is no doubt that training

and development can do lot for development of its personal.

In COCA-COLA ALSO training is very helpful towards organizational and employees. The

employee attended training programmed of the company the were also benefited by it in terms

that their performance increased, also almost 70% of the employees also found changes in terms

of productivity i.e., they gained more professional knowledge also almost all of them can

discuss their needs with their superior. Therefore, training programmed should be implemented

in every organization for the survival in the world and achievement of the objectives.

5.3 RECOMMENDATION

In the era of the globalization the organization has to face new challenges in the present context

and achieve its objectives. It must be dynamic, desalinated efficient especially in the training

77
development placement and promotion of its personnel. The huge investment in the industrial

sectors demand better operational efficiency, better management of capital and above all better

management & development of human resources.

For enhancing the effectiveness of training & development programmed there are few useful

suggestions which is implemented earnestly & sincerely may hopefully add to the luster&

improve the planning execution and follow up of the training and development programmed

in particular.

❖ Training & development programmed should be based on specific needs of the

organization and its employees.

❖ Selection of participants should be made on the basis of the needs of the employees &

objectives of the programmed.

❖ New technology and methods of training should be used to make it interesting for the

employees.

❖ The programmed should be frequently revised so as to be in tune with the ever changing

business and economic environment.

3.5 Limitations of research

There are certain limitations, which cannot be ruled out after taking all possible precaution

regarding the basic rules of personnel departments.

78
 First of all, the scope of study is limited as it come only important provisions laid down

by govt. for the welfare of the workers.

 The sample size was small here, the conclusion might not be right for the remaining

workers.

 We do not spend very much time with every worker.

 The sample size was small here, the conclusion might not be right for the

remainingworkers.

BIBLIOGRAPHY

79
Books referred

o K Aswathappa. Human resource and management

o Robbins S.P. – Organizational behavior

Websites

• www.ril.com

• www.google.com

• www.astd.org/astd

• The Coca-Cola Company: Refresh the World. Make a Difference (coca-colacompany.com)

• Shodhganga: a reservoir of Indian theses @ INFLIBNET

80
 QUESTIONNAIRE

1) Awareness about training?

1) Yes -90%

2) No-10%

2) No of the training is conducted?

1) Weekly

2) Monthly

3) Yearly

3)Job Methods of training?

1)On the job

2)Off the job

4)Training increases morale and motivation?

1)Morale -70%

2)Motivation- 15%

3)Both-15%

5)Satisfaction regarding training programme?

1)Yes- 70%

2)No-30%

6)Employees selected for the training.

1)All employee-10%

2)New recruits- 70%

81
7) Normal duration for imparting the training

1) 2-3 days - 33%

2)1week - 65%

3)1 month – 2%

4)Existing sales person-20%

8) The basic method of training and development are

1)Lecture based- 40%

2)Group discussion- 30%

3)Demonstration- 20%

4)Other- 10%

9) Trainer comes from outside or company’s personnel is trainer.

1)Trainer from outside-60%

2)Company’s trainer-30%

3)Both-10%

10) The content of the training

1)Attitude towards training -30%

2)Knowledge of company, competitors and customers-60%

3)Time management-10%

11) After completion of training were you asked to fill a feedback form .

1)Yes- 90%

2)No-10%

12)Suitable method for the evaluating the training programme.

1)Questionnaire- 35%

2)Observation- 35%

3)Performance appraisal report- 30%

82
.

83