The document provides information about Coca-Cola's mission, objectives, operating structure, history, and bottling system. It discusses Coca-Cola's goal of maximizing shareholder value over time by executing a business strategy focused on understanding consumer and customer needs. The company has a global operating structure consisting of five geographic groups and employs around 31,000 people worldwide. Coca-Cola was founded in 1886 and has since expanded its bottling operations globally through independently owned and partially owned bottlers.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
The document provides information about Coca-Cola's mission, objectives, operating structure, history, and bottling system. It discusses Coca-Cola's goal of maximizing shareholder value over time by executing a business strategy focused on understanding consumer and customer needs. The company has a global operating structure consisting of five geographic groups and employs around 31,000 people worldwide. Coca-Cola was founded in 1886 and has since expanded its bottling operations globally through independently owned and partially owned bottlers.
The document provides information about Coca-Cola's mission, objectives, operating structure, history, and bottling system. It discusses Coca-Cola's goal of maximizing shareholder value over time by executing a business strategy focused on understanding consumer and customer needs. The company has a global operating structure consisting of five geographic groups and employs around 31,000 people worldwide. Coca-Cola was founded in 1886 and has since expanded its bottling operations globally through independently owned and partially owned bottlers.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
The document provides information about Coca-Cola's mission, objectives, operating structure, history, and bottling system. It discusses Coca-Cola's goal of maximizing shareholder value over time by executing a business strategy focused on understanding consumer and customer needs. The company has a global operating structure consisting of five geographic groups and employs around 31,000 people worldwide. Coca-Cola was founded in 1886 and has since expanded its bottling operations globally through independently owned and partially owned bottlers.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1of 47
Internship Report on Coca Cola Multan
Internship Report on Coke
'We are beginning to see the beneIits Irom the large-scale reshaping that we started several months ago. We are pleased with our progress as we strive to be the premier consumer relationship organization. Douglas Daft, Chairman and CEO About The Company Mission Of Coca-CoIa InternationaI rom our heritage to our mission to the people who bring our products to thirsty consumers, The Coca-Cola Company is a part oI lives everywhere. Our Mission Is To Maximize Share-Owner VaIue over Time In order to achieve this mission, we must create value Ior all the constituents we serve, including our consumers, our customers, our bottlers and our communities. The Coca-Cola Company creates value by executing a comprehensive business strategy guided by six key belieIs: Consumer demand drives everything we do. Brand Coca-Cola is the core oI our business. We will serve consumers a broad selection oI the nonalcoholic ready-to-drink beverages they want to drink throughout the day. We will be the best marketers in the world. We will think and act locally. We will lead as a model corporate citizen Objective The ultimate objectives oI our business strategy are to increase volume, expand our share oI worldwide nonalcoholic ready-to-drink beverage sales, maximize our long-term cash Ilows and create economic-value-added by improving economic proIit. The Coca-Cola system has more than 16 million customers around the world that sell or serve our products directly to consumers. We keenly Iocus on enhancing value Ior these customers and helping them grow their beverage businesses. We strive to understand each customer's business and needs, whether that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market. There are nearly six billion people in the world who are potential consumers oI our Company's products. Ultimately, our success in achieving our mission depends on our ability to satisIy more oI their beverage consumption demands and our ability to add value Ior our customers. We achieve this when we place the right products in the right markets at the right time. Our ProfiIe The Coca-Cola Company is the world's leading manuIacturer, marketer, and distributor oI nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage bases Ior Coca-Cola, the Company's Ilagship brand, and over 230 other Company soIt-drink brands are manuIactured and sold by The Coca-Cola Company and its subsidiaries in nearly 200 countries around the world. By contract with The Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soIt drinks within certain territorial boundaries and under conditions that ensure the highest standards oI quality and uniIormity. The company stock The Coca-Cola Company stock, with ticker symbol KO, is listed and traded in the United States on the New York Stock Exchange. Common stock also is traded on the Boston, Cincinnati, Chicago, PaciIic and Philadelphia exchanges. Outside the United States, Company common stock is listed and traded on German and Swiss exchanges. Company's Operating Management Structure The Company's operating management structure consists oI Iive geographic groups. The North America Group comprises the United States and Canada. The Latin America Group includes the Company's operations across Central and South America, Irom Mexico to the tip oI Argentina. The Greater Europe Group stretches Irom Greenland to Russia's ar East, including some oI the most established markets in Western Europe and the rapidly growing nations oI Eastern and Central Europe. The AIrica and Middle East Group encompasses the Middle East and the entire continent oI AIrica. The Asia PaciIic Group has operations Irom India through the PaciIic region including China, Japan, and Australia. The Minute Maid Company, the Company's juice business in Houston, Texas, is the world's leading marketer oI juices and juice drinks. The Minute Maid Company's products include Minute Maid Premium Orange Juice with calcium, Minute Maid Premium Lemonade Iced Tea, Minute Maid Coolers, Hi-C Blast and ive Alive. SociaI Responsiveness The Coca-Cola Company has a commitment, more than a century old, to social responsibility through philanthropy and good citizenship. The Company's reputation Ior good corporate citizenship results Irom charitable donations, employee volunteerism, technical assistance and other demonstrations oI support in thousands oI communities worldwide. The Coca-Cola Company continues to sponsor the world's most exciting sports events, including World Cup Soccer, the National ootball League, National Basketball Association, NASCAR, the Tour de rance, the Rugby World Cup, COPA America and numerous local sports teams. The Coca-Cola Company has sponsored the Olympic Games since 1928 Our BottIing System One oI The Coca-Cola Company's greatest strengths lies in its ability to conduct business on a global scale while maintaining a local approach. At the heart oI this approach is the bottler system. Our Company has business relationships with three types oI bottlers: (1) Independently owned bottlers, in which we have no ownership interest; (2) Bottlers in which we have invested and have a no controlling ownership interest; and (3) Bottlers in which we have invested and have a controlling ownership interest. During 1999, independently owned bottling operations produced and distributed approximately 27 percent oI our worldwide unit case volume. Bottlers in which we own a noncontrolling ownership interest produced and distributed approximately 58 percent oI our 1999 worldwide unit case volume. Controlled bottling and Iountain operations produced and distributed approximately 15 percent. We view certain bottling operations in which we have a noncontrolling ownership interest as key or anchor bottlers due to their level oI responsibility and perIormance. The strong commitment oI both key and anchor bottlers to their own proIitable volume growth helps us meet our strategic goals and Iurthers the interests oI our worldwide production, distribution and marketing systems. These bottlers tend to be large and geographically diverse, with strong Iinancial resources Ior long-term investment and strong management resources. These bottlers give us strategic business partners on every major continent. istory Of coca-coIa The Coca-Cola Company is rich with history. Since 1886, we`ve been working to reIresh people everywhere. Coca-coIa year by year 1886 The trademark "Coca-Cola" name and script are registered with the U.S. Patent and Trademark OIIice. Dr. Pemberton's partner and bookkeeper, rank M. Robinson, suggested the name and penned "Coca-Cola" in the unique Ilowing script that is Iamous worldwide today. Mr. Robinson thought "the two C's would look well in advertising." 1891 Atlanta entrepreneur Asa G. Candler acquires complete ownership oI the Coca-Cola business Ior $2,300. Within Iour years, his merchandising Ilair helps expand consumption oI Coca-Cola to every part oI the nation. 1893 The trademark "Coca-Cola" name and script are registered with the U.S. Patent and Trademark OIIice. Dr. Pemberton's partner and bookkeeper, rank M. Robinson, suggested the name and penned "Coca-Cola" in the unique Ilowing script that is Iamous worldwide today. Mr. Robinson thought "the two C's would look well in advertising." Coca-Cola began as a Iountain product, but candy merchant Joseph A. Biedenharn oI Mississippi was looking Ior a way to serve this reIreshing beverage at picnics. He begins oIIering bottled Coca-Cola, using syrup shipped Irom Atlanta, during this especially busy summer. 1894 Coca-Cola began as a Iountain product, but candy merchant Joseph A. Biedenharn oI Mississippi was looking Ior a way to serve this reIreshing beverage at picnics. He begins oIIering bottled Coca-Cola, using syrup shipped Irom Atlanta, during this especially busy summer. 1895 "Coca-Cola is now drunk in every state and territory in the U.S." - Asa Candler 1898 The Company outgrows its Iacilities and a new building is erected at Edgewood Avenue and College Streetlater to be called "Coca-Cola Place." This year, the Company enters the markets oI Canada and Mexico. 1899 Large-scale bottling becomes possible when Asa Candler grants exclusive rights to Joseph B. Whitehead and Benjamin . Thomas oI Chattanooga, Tennessee, Ior one dollar. The contract marks the beginning oI The Coca-Cola Company`s unique independent bottling system that remains the Ioundation oI Company soIt-drink operations. Within 20 years, the regional bottling system will grow to include 1,000 bottlers, with operations in Cuba, Puerto Rico, Panama, the Philippines and Guam. 1906 Cuba and Panama become the Iirst two countries outside the U.S. to bottle Coca-Cola. 1915 Around this time, bottles used by companies in the soIt-drink industry are very similar. And Coca-Cola has many imitators, which consumers are unable to identiIy until they take a sip. The answer is to create a distinct bottle Ior Coca-Cola, one that anyone would recognize, even iI it was Ielt in the dark. As a result, the genuine Coca-Cola bottle with the contour shape now known around the world is developed by the Root Glass Company oI Terre Haute, Indiana. It replaces the straight-sided bottle, giving Coca-Cola a distinct packaging advantage over the imitations. 1919 The Coca-Cola Company is sold Ior $25 million to Atlanta banker Ernest WoodruII and a group oI investors. The same year, the Company's stock is Iirst sold to the public at $40 a share. One oI these original shares was worth about $6.7 million at the end oI 1998 (assuming all dividends were reinvested). 1920 The Coca-Cola Company establishes a manuIacturing operation in rance. U.S. Supreme Court Justice Oliver Wendell Holmes rules that Coca-Cola is a single thing coming Irom a single source and well-known to the community. 1923 Robert W. WoodruII, son oI Ernest WoodruII, becomes president oI The Coca-Cola Company. His insistence on quality and more than six decades oI leadership take the business to unrivaled heights oI commercial success, making Coca-Cola an institution the world over. 1926 The oreign Department becomes a subsidiary later known as The Coca-Cola Export Corporation. 1928 Annual bottled Coca-Cola sales exceed Iountain sales Ior the Iirst time. Also this year, Coca- Cola makes its Iirst Olympic appearance when 1,000 cases oI Coke accompany the U.S. Olympic Team to Amsterdam. 1929 Sixty-Iour bottling operations are located in 28 countries, spreading reIreshment worldwide. Also this year, the Iountain glass is adopted as standard, and "The Pause that ReIreshes" Iirst appears in the Saturday Evening Post. 1933 The automatic Iountain dispenser is introduced at the Chicago World's air. By simply pulling a handle, soda jerks can now serve uniIorm, properly reIrigerated Coca-Cola. 1936 This year, The Coca-Cola Company observes its 50th anniversary. A three-day bottlers' convention, a motion picture chronicling the Company's early years, and even a special anniversary logo are part oI the celebration. 1941 "Every man in uniIorm gets a bottle oI Coca-Cola Ior 5 cents, wherever he is and whatever it costs"Robert WoodruII. Also this year, the trademark "Coke" Iirst receives equal prominence in advertising with "Coca-Cola." 1942 "It's the Real Thing" is Iirst used in Coke advertising. On December 25, The Coca-Cola Company, in cooperation with the War and Navy Departments, sponsors a special 12-hour radio broadcast to more than 142 stations. Titled "Uncle Sam's Christmas Tree," the program Ieatured 43 popular orchestras live Irom 43 widely scattered military bases in the U.S. 1943 On June 29, General Dwight Eisenhower dispatches a cablegram requesting a shipment oI 3 million bottles oI Coca-Cola and complete equipment Ior bottling, washing, reIilling and capping twice monthly. 1944 "Global High Sign" slogan is developed. And on New Year's Day, Sgt. William DeSchneider oI Hackensack, New Jersey, wins a raIIled bottle oI Coca-Cola. The raIIle, with chances selling Ior a quarter, raises about $4,000, or the equivalent oI 80,000 bottles oI Coca-Cola. 1945 "Coke" is registered as a trademark by the U.S. Patent and Trademark OIIice. 1950 Edgar Bergen and his sidekick Charlie McCarthy appear on the Iirst live network television show sponsored by The Coca-Cola Company. 1955 The 10-, 12-, and 26-ounce king-size and Iamily-size bottles are introduced with immediate success. anta is launched in Naples, Italy. Today, anta is the #1 orange soIt drink in the world. 1960 Metal cans like the ones sent to troops during the Korean War are now available on market shelves everywhere. Also this year, The Coca-Cola Company purchases The Minute Maid Company. 1961 Sprite, the lemon-lime drink, is introduced to the public. 1963 The Company introduces TAB, its Iirst low-calorie drink, and "Things Go Better with Coke" can be seen in a variety oI advertisements. 1969 "It's the Real Thing" makes a comeback. 1971 Young people Irom around the world gather on a hilltop in Italy to sing "I'd like to buy the world a Coke." 1976 Coke Adds Life campaign is introduced. 1977 The unique contour bottle, Iamiliar to consumers everywhere, is granted registration as a trademark by the U.S. Patent and Trademark OIIice, an honor awarded to only a Iew other packages 1979 Coke introduces "Have a Coke and a Smile," a campaign oI heartwarming emotion best captured by the television commercial Ieaturing "Mean" Joe Greene, a tackle on the Pittsburgh Steelers Iootball team. 1981 Roberto C. Goizueta is elected chairman oI the Board oI Directors and chieI executive oIIicer oI The Coca-Cola Company. He will lead the Company Ior 16 years. 1982 The Coca-Cola Company introduces diet Coke to U.S. consumers, marking the Iirst extension oI the Company's most valuable trademark to another product. And the "Coke is it!" theme is translated and tailored to reach consumers everywhere as it is launched worldwide. 1985 In April, aIter extensive taste testing, the Company introduces a new taste Ior Coca-Cola in the United States and Canada"new" Coke. Consumers respond with an unprecedented outpouring oI loyalty and aIIection Ior the original Iormula, and the Company listens. In July, the Company reintroduces the original Iormula Ior Coca-Cola, as Coca-Cola classic. Also this year, Cherry Coke is introduced. 1986 In the year oI the Company's 100th anniversary, two large U.S. bottlers combine to Iorm Coca- Cola Enterprises. Over time, this new company will assume responsibility Ior bottling operations in Great Britain, rance, the Netherlands and Belgium. 1988 An independent worldwide survey conIirms that Coca- Cola is the best known, most admired trademark in the world. 1989 The Coca-Cola Company sells Columbia Pictures to Sony Corporation. 1990 World oI Coca-Cola, an attraction Ieaturing a historical and Iuturistic look at Coca-Cola as well as a chance to sample The Coca-Cola Company products Irom around the world, opens in Atlanta. 1994 M. Douglas Ivester is elected president and chieI operating oIIicer oI The Coca-Cola Company. 1996 Coca-Cola sponsors the Summer Olympics in the hometown oI The Coca-Cola Company: Atlanta, Georgia. And the Cisneros Bottling Company, the largest soIt-drink bottler in Venezuela, switches Irom Pepsi to Coca-Cola. 1997 World oI Coca-Cola Las Vegas opens, complete with a hundred-Ioot-tall Coca-Cola contour bottle. The Coca-Cola Company sponsors the Winter Olympics in Nagano, Japan, marking the 70th anniversary oI the Company's Olympic partnership. New products Citra and Surge hit the market. And M. Douglas Ivester is named chairman oI the Board oI Directors and chieI executive oIIicer oI The Coca-Cola Company. He is the tenth chairman oI the board in the Company's history. 1998 Sales oI Coca-Cola and other Company products exceed 1 billion servings per day. 2000 Doug DaIt elected Chairman and ChieI Executive OIIicer. Brands of Coca-CoIa The products oI The Coca-Cola Company touch lives everywhere. Our core brands have made an impact around the world; brands such as anta, Sprite and oI course, Coca-Cola, are available and recognized in many countries. Each oI our other brands are distributed in one or more countries, and is tailored to the cultures and tastes oI those consumers. So wherever you are, you're sure to Iind a Coca-Cola product to enjoy. FinanciaI Report of Coca-CoIa InternationaI of Year 1999 Our Business We are the world's leading manuIacturer, marketer and distributor oI nonalcoholic beverage concentrates and syrups. Our Company manuIactures beverage concentrates and syrups and, in certain instances, Iinished beverages, which we sell to bottling and canning operations, authorized Iountain wholesalers and some Iountain retailers. We also market and distribute juice and juice-drink products. In addition, we have ownership interests in numerous bottling and canning operations. VoIume We measure our sales volume in two ways: (1) gallon sales and (2) unit cases oI Iinished products. Gallon sales represent our primary business and measure the volume oI concentrates and syrups we sell to our bottling partners or customers, plus the gallon sales equivalent oI the juice and juice-drink products sold by The Minute Maid Company. Most oI our revenues are based on this measure oI wholesale activity. We also measure volume in unit cases, which represent the amount oI Iinished products we and our bottling system sell to customers. We believe unit case volume more accurately measures the underlying strength oI our business system because it measures trends at the retail level. We include in both measures Iountain syrups sold by the Company to customers directly or through wholesalers or distributors. The Company now includes products sold by The Minute Maid Company in its calculations oI unit case volume and gallon sales. Accordingly, all historical unit case volume data in this report reIlect the inclusion oI these products. In all years presented, the impact on our unit case volume and gallon sales was not material. Against a challenging economic environment in many oI our key markets, our worldwide unit case volume increased nearly 2 percent in 1999, on top oI a 6 percent increase in 1998. Approximately 1 percentage point oI the increase in unit case volume in 1999 was attributable to the Cadbury Schweppes brands acquired during the second halI oI 1999. Our business system sold 16.5 billion unit cases in 1999. Investments With a business system that operates locally in nearly 200 countries and generates superior cash Ilows, we consider our Company to be uniquely positioned to capitalize on proIitable investment opportunities. Our criteria Ior investment are simple: new investments must directly enhance our existing operations and must be expected to provide cash returns that exceed our long-term, aIter-tax, weighted-average cost oI capital, currently estimated at approximately 11 percent. Because it consistently generates high returns, the beverage business is a particularly attractive investment Ior us. In highly developed markets, our expenditures Iocus primarily on marketing our Company's brands. In emerging and developing markets, our objective is to increase the penetration oI our products. In these markets, we allocate most oI our investments to enhancing inIrastructure such as production Iacilities, distribution networks, sales equipment and technology. We make these investments by Iorming strategic business alliances with local bottlers and by matching local expertise with our experience, resources and Iocus. Our investment strategy Iocuses on three Iundamental components oI our business: marketing, brands and our bottling system. Marketing To meet our long-term growth objectives, we make signiIicant investments in marketing to support our brands. Marketing investments enhance consumer awareness and increase consumer preIerence Ior our brands. This produces long-term growth in volume, per capita consumption and our share oI worldwide nonalcoholic ready-to-drink beverage sales. We heighten consumer awareness and product appeal Ior our brands using integrated marketing programs. Through our bottling investments and strategic alliances with other bottlers oI our products, we create and implement these programs locally. In developing a strategy Ior a Company brand, we conduct product and packaging research, establish brand positioning, develop precise consumer communications and solicit consumer Ieedback. Our integrated marketing programs include activities such as advertising, point-oI-sale merchandising and product sampling. Brands We compete in the nonalcoholic ready-to-drink beverage business. Our oIIerings in this category include some oI the world's most valuable brands, 232 in all. These include soIt drinks and noncarbonated beverages such as sports drinks, juice and juice drinks, water products, teas and coIIees. As discussed earlier, to meet our long-term growth objectives, we make signiIicant investments to support our brands. This involves investments to support existing brands and to acquire new brands, when appropriate. In July 1999, we completed the acquisition oI Cadbury Schweppes plc beverage brands in 155 countries Ior approximately $700 million. These brands included Schweppes, Canada Dry, Dr Pepper, Crush and certain regional brands. Among the countries excluded Irom this transaction were the United States, South AIrica, Norway, Switzerland and the European Union member nations (other than the United Kingdom, Ireland and Greece). In September 1999, we completed the acquisition oI Cadbury Schweppes beverage brands in New Zealand Ior approximately $20 million. Also in September 1999, in a separate transaction valued at approximately $250 million, we acquired the carbonated soIt drink business oI Cadbury Schweppes (South AIrica) Limited in South AIrica, Botswana, Namibia, Lesotho and Swaziland. Our acquisitions oI Cadbury Schweppes beverage brands are still pending in several countries, subject to certain conditions including regulatory review. In December 1997, our Company announced its intent to acquire Irom beverage company Pernod Ricard its Orangina brands, three bottling operations and one concentrate plant in rance Ior approximately 5 billion rench Irancs. The transaction was rejected by regulatory authorities oI the rench government in November 1999. BottIing System Our Company has business relationships with three types oI bottlers: (1) independently owned bottlers, in which we have no ownership interest; (2) bottlers in which we have invested and have a noncontrolling ownership interest; and (3) bottlers in which we have invested and have a controlling ownership interest. During 1999, independently owned bottling operations produced and distributed approximately 27 percent oI our worldwide unit case volume. Bottlers in which we own a noncontrolling ownership interest produced and distributed approximately 58 percent oI our 1999 worldwide unit case volume. Controlled bottling and Iountain operations produced and distributed approximately 15 percent. We view certain bottling operations in which we have a noncontrolling ownership interest as key or anchor bottlers due to their level oI responsibility and perIormance. The strong commitment oI both key and anchor bottlers to their own proIitable volume growth helps us meet our strategic goals and Iurthers the interests oI our worldwide production, distribution and marketing systems. These bottlers tend to be large and geographically diverse, with strong Iinancial resources Ior long-term investment and strong management resources. These bottlers give us strategic business partners on every major continent. Consistent with our strategy, in January 1999, two Japanese bottlers, Kita Kyushu Coca-Cola Bottling Company Ltd. and Sanyo Coca-Cola Bottling Company Ltd., announced plans Ior a merger to become a new, publicly traded bottling company, Coca-Cola West Japan Company Ltd. The transaction, which was completed in July 1999 and was valued at approximately $2.2 billion, created our Iirst anchor bottler in Japan. As oI December 31, 1999, we owned approximately 5 percent oI this new anchor bottler. In 1998, Coca-Cola Amatil Ltd. (Coca-Cola Amatil) completed a spin-oII oI its European operations into a new publicly traded European anchor bottler, Coca-Cola Beverages plc (Coca- Cola Beverages). On December 31, 1999, we owned approximately 50.5 percent oI Coca-Cola Beverages. Our expectation is that we will reduce our ownership position to less than 50 percent in 2000; thereIore, we are accounting Ior the investment by the equity method oI accounting. Historically, in certain situations, we have viewed it to be advantageous Ior our Company to acquire a controlling interest in a bottling operation. Owning such a controlling interest allowed us to compensate Ior limited local resources and enabled us to help Iocus the bottler's sales and marketing programs, assist in developing its business and inIormation systems and establish appropriate capital structures. In July 1999, our Company acquired Irom raser and Neave Limited its 75 percent ownership interest in N Coca-Cola Pte Limited (N Coca-Cola). Prior to the acquisition, our Company held a 25 percent equity interest in N Coca-Cola. Acquisition oI raser and Neave Limited's 75 percent stake gave our Company Iull ownership oI N Coca-Cola. Coca-Cola holds a majority ownership in bottling operations in Brunei, Cambodia, epal, Pakistan, Sri Lanka, Singapore and Vietnam. In line with our long-term bottling strategy, we periodically consider options Ior reducing our ownership interest in a bottler. One option is to combine our bottling interests with the bottling interests oI others to Iorm strategic business alliances. Another option is to sell our interest in a bottling operation to one oI our equity investee bottlers. In both oI these situations, we continue participating in the bottler's earnings through our portion oI the equity investee's income. As stated earlier, our investments in a bottler can represent either a noncontrolling or a controlling interest. Through noncontrolling investments in bottling companies, we provide expertise and resources to strengthen those businesses. In 1999, we increased our interest in Embotelladora Arica S.A., a bottler headquartered in Chile, Irom approximately 17 percent to approximately 45 percent. Our bottling investments generally have been proIitable over time. Equity income or loss, included in our consolidated net income, represents our share oI the net earnings or losses oI our investee companies. In 1999, our Company's share oI losses Irom equity method investments totaled $184 million. or a more complete discussion oI these investments, reIer to ote 2 in our Consolidated inancial Statements. The Iollowing table illustrates the diIIerence in calculated Iair values, based on quoted closing prices oI publicly traded shares, and our Company's carrying values Ior selected equity method investees (in millions):
FINANCIAL STRATEGIES The Iollowing strategies allow us to optimize our cost oI capital, increasing our ability to maximize share-owner value. Debt Financing Our Company maintains debt levels we consider prudent based on our cash Ilow, interest coverage and percentage oI debt to capital. We use debt Iinancing to lower our overall cost oI capital, which increases our return on share-owners' equity. Our capital structure and Iinancial policies have earned long-term credit ratings oI "A" Irom Standard Poor's and "Aa3" Irom Moody's, and a credit rating oI "A-1" and "P-1" Ior our commercial paper programs Irom Standard Poor's and Moody's, respectively. Our global presence and strong capital position give us easy access to key Iinancial markets around the world, enabling us to raise Iunds with a low eIIective cost. This posture, coupled with the active management oI our mix oI short-term and long-term debt, results in a lower overall cost oI borrowing. Our debt management policies, in conjunction with our share repurchase programs and investment activity, typically result in current liabilities exceeding current assets. In managing our use oI debt capital, we consider the Iollowing Iinancial measurements and ratios:
Share Repurchase In October 1996, our Board oI Directors authorized a plan to repurchase up to 206 million shares oI our Company's common stock through the year 2006. In 1999, we did not repurchase any shares under the 1996 plan due primarily to our utilization oI cash Ior our recent brand and bottler acquisitions. We do not anticipate the repurchase oI any shares under the 1996 plan during the Iirst halI oI the year 2000. This is due to our anticipated utilization oI cash Ior an organizational realignment and the projected impact on cash Irom the planned reduction in concentrate inventory levels at selected bottlers. We intend to reevaluate our cash needs during the second halI oI the year. Since the inception oI our initial share repurchase program in 1984 through our current program as oI December 31, 1999, we have repurchased more than 1 billion shares. This represents 32 percent oI the shares outstanding as oI January 1, 1984, at an average price per share oI $12.46. Dividend PoIicy At its ebruary 2000 meeting, our Board oI Directors again increased our quarterly dividend, raising it to $.17 per share. This is equivalent to a Iull-year dividend oI $.68 in 2000, our 38th consecutive annual increase. Our annual common stock dividend was $.64 per share, $.60 per share and $.56 per share in 1999, 1998 and 1997, respectively. In 1999, our dividend payout ratio was approximately 65 percent oI our net income, reIlecting the impact oI the other operating charges recorded in the Iourth quarter. To Iree up additional cash Ior reinvestment in our high-return beverage business, our Board oI Directors intends to gradually reduce our dividend payout ratio to 30 percent over time. FinanciaI Risk Management Our Company uses derivative Iinancial instruments primarily to reduce our exposure to adverse Iluctuations in interest rates and Ioreign exchange rates and, to a lesser extent, adverse Iluctuations in commodity prices and other market risks. We do not enter into derivative Iinancial instruments Ior trading purposes. As a matter oI policy, all our derivative positions are used to reduce risk by hedging an underlying economic exposure. Because oI the high correlation between the hedging instrument and the underlying exposure, Iluctuations in the value oI the instruments are generally oIIset by reciprocal changes in the value oI the underlying exposure. The derivatives we use are straightIorward instruments with liquid markets. Our Company monitors our exposure to Iinancial market risks using several objective measurement systems, including value-at-risk models. or the value-at-risk calculations discussed below, we used a historical simulation model to estimate potential Iuture losses our Company could incur as a result oI adverse movements in Ioreign currency and interest rates. We have not considered the potential impact oI Iavorable movements in Ioreign currency and interest rates on our calculations. We examined historical weekly returns over the previous 10 years to calculate our value at risk. Our value-at-risk calculations do not represent actual losses that our Company expects to incur. Foreign Currency We manage most oI our Ioreign currency exposures on a consolidated basis, which allows us to net certain exposures and take advantage oI any natural oIIsets. With approximately 70 percent oI 1999 operating income generated outside the United States, weakness in one particular currency is oIten oIIset by strengths in others over time. We use derivative Iinancial instruments to Iurther reduce our net exposure to currency Iluctuations. Our Company enters into Iorward exchange contracts and purchases currency options (principally European currencies and Japanese yen) to hedge Iirm sale commitments denominated in Ioreign currencies. We also purchase currency options (principally European currencies and Japanese yen) to hedge certain anticipated sales. Premiums paid and realized gains and losses, including those on any terminated contracts, are included in prepaid expenses and other assets. These are recognized in income, along with unrealized gains and losses, in the same period we realize the hedged transactions. Gains and losses on derivative Iinancial instruments that are designated and eIIective as hedges oI net investments in international operations are included in share-owners' equity as a Ioreign currency translation adjustment, a component oI other comprehensive income. Our value-at-risk calculation estimates Ioreign currency risk on our derivatives and other Iinancial instruments. The average value at risk represents the simple average oI quarterly amounts Ior the past year. We have not included in our calculation the eIIects oI currency movements on anticipated Ioreign currency denominated sales and other hedged transactions. We perIormed calculations to estimate the impact to the Iair values oI our derivatives and other Iinancial instruments over a one-week period resulting Irom an adverse movement in Ioreign currency exchange rates. As a result oI our calculations, we estimate with 95 percent conIidence that the Iair values would decline by less than $71 million using 1999 average Iair values and by less than $56 million using December 31, 1999, Iair values. On December 31, 1998, we estimated the Iair value would decline by less than $60 million. However, we would expect that any loss in the Iair value oI our derivatives and other Iinancial instruments would generally be oIIset by an increase in the Iair value oI our underlying exposures. Interest Rates Our Company maintains our percentage oI Iixed and variable rate debt within deIined parameters. We enter into interest rate swap agreements that maintain the Iixed-to-variable mix within these parameters. We recognize any diIIerences paid or received on interest rate swap agreements as adjustments to interest expense over the liIe oI each swap. Our value-at-risk calculation estimates interest rate risk on our derivatives and other Iinancial instruments. The average value at risk represents the simple average oI quarterly amounts Ior the past year. According to our calculations, we estimate with 95 percent conIidence that any increase in our average and in our December 31, 1999, net interest expense due to an adverse move in interest rates over a one-week period would not have a material impact on our Consolidated inancial Statements. Our December 31, 1998, estimate also was not material to our Consolidated inancial Statements. Performance TooIs Economic proIit provides a Iramework by which we measure the value oI our actions. We deIine economic proIit as income Irom continuing operations, aIter giving eIIect to taxes and excluding the eIIects oI interest, in excess oI a computed capital charge Ior average operating capital employed. We use value-based management (VBM) as a tool to help improve our perIormance in planning and execution. VBM principles assist us in managing economic proIit by clariIying our understanding oI what creates value and what destroys it and encouraging us to manage Ior increased value. With VBM, we determine how best to create value in every area oI our business. We believe that by using VBM as a planning and execution tool, and economic proIit as a perIormance measurement tool, we greatly enhance our ability to build share-owner value over time. We seek to maximize economic proIit by strategically investing in the high-return beverage business and by optimizing our cost oI capital through appropriate Iinancial policies. TotaI Return To Share Owners Our Company has provided share owners with an excellent return on their investments over the past decade. A $100 investment in our Company's common stock on December 31, 1989, together with reinvested dividends, grew in pretax value to approximately $681 on December 31, 1999, an average annual compound return oI 21 percent. istory Of Coca-CoIa In Pakistan Coca-Cola is being produced and consumed in 48 countries oI the world. The areas covered by Coke are divided into various zones and territories. In one zone or territory, there are 12-15 countries. South West Asia region includes: Pakistan India Philippines Thailand Hong Kong Burma Maldives At present, Coca-Cola is No. 2 in Pakistan sales wise and market share aIter Pepsi, which is the market leader. But overall in the world, Coca-Cola is No. 1. The head oIIice oI South West Asia region is in Lahore. In Pakistan, there are 11 territories where the Iranchised units produce and sell Coca-Cola. Some oI these territories are: Lahore Karachi Rawalpindi Peshawar Hyderabad Multan Rahim Yar Khan, etc. Out oI these 11 territories 8 territories have been purchased by Coca-Cola international now in Pakistan. Most oI the territories in India and Pakistan now have been operated by Coca-Cola International itselI. MuItan Beverages In Multan, the Iranchise unit was established in 1964, with the wish or struggle to make it easy to distribute Coke in diIIerent areas and to make it No. 1 in the market, and with the hope that it will play a great role in increasing the production and to make it popular in all over the country. Product Range In their product range, they have three categories, i.e. Coca-Cola, anta and Sprite, which are Iurther divided into diIIerent packing units. They are 175ml, 250ml, 300NR, 1 litre, 1.5 liter plastic and 2.0 liter plastic. Now they are also considering to introduce Plastic bottle oI 1 liter. Area Covered by MuItan Beverages Multan Beverages covers the areas oI: Multan City Pakpattan Sahiwal Dera Ghazi Khan Rajan Pur and on that side it covers the area to the Ziarat in Balochistan. It covers certain other urban and rural areas in Punjab and Baluchistan also. Company Objectives Multan Beverages wants to achieve the Iollowing goals: To maintain the quality oI product. Product should be supplied in the market in such a way that it must IulIill the consumer desires. To IulIill their sales projections. To maintain their repute To maintain their relations with distributors whose network is spread all over the area. To make Coca-Cola products No. 1 in Pakistan. Coca-CoIa InternationaI In India And Pakistan As Coca-Cola is market leader in the world but in Pakistan and India its situation is not so good as compared to other countries oI the world. All over the world it is No. 1 but in these territories it is No. 2 in market share and sales. That`s why Coca-Cola international decided to purchase these territories. The Iirst plant which is purchased by Coca-Cola international in Pakistan is Karachi Plant that purchase was committed in 1996. They want to purchase Iurther plants but due to political instability in Pakistan they stopped. But in 1999 company decided to purchase other plants. And in January 2000 almost all Plants oI Pakistan had been purchased by Coca-Cola international. A new company was established in Pakistan. And they named it as The Coca-Cola Export Corporation (TCCEC) and to operate it locally its name is Coca-Cola Beverages Pakistan Limited (CCBPL). On 22 nd January 2000 hand over oI Multan Plant took place and its new name is Coca-Cola Beverages Pakistan Limited, Multan Plant. Mission of CCBPL, MuItan PIant. At the time oI equisition the market share oI Multan Plant as compared to Pepsi Cola is very small. i.e. only 12 to 15 oI the total market. Mission oI the plant is to be the market leader. Changes In MuItan PIant AIter the purchase oI plants in Pakistan coca-cola beverages Iire almost all oI the employees working in the old setups. And they rehired some oI these and other personnel on the basis oI their competencies they have Irom other organizations oI beverages Iield and experienced people Irom other multinational organizations e.g. Liver Brothers etc. Coca-Cola Beverages Pakistan Limited made number oI changes in the Multan Plant and in Other plants. Some oI these changes are structural in nature and some are related to operations oI the system. Now instead oI Managing Director oI organization, Business Operations Manager (BOM) is the head oI organization. And Mr. Aamir AltaI Qureshi is appointed as the BOM in Multan. They made number oI changes in Production system, Marketing system etc. Ior the improvement in quality. They purchased new Iool prooI bottles washing system in which almost every bottle remains in the process Ior one and a halI hour. That step increased the quality oI the product and shows the concern oI the company Ior the society and consumers in Pakistan.
Business Operations Manager (BOM) Business Operations Manager is responsible Ior all the operations oI Multan Plant. In Multan Plant Mr. Aamir AltaI Qurashi is BOM oI the organization. He is a Chemical Engineer Irom United States and very experienced in the Iield oI Beverages as doing work in that Iield Ior almost 10 years. As he is Chemical Engineer so he know all the procedures oI production and that`s why he is able to handle all operations oI the Production. He is also considered as the big boss oI the production department. Now we shall discuss responsiblities and structure oI each department one by one New structure of Coca-CoIa MuItan PIant We can divide the whole organization oI Coca-Cola Beverages Pakistan Limited Multan Plant into 5 (ive) major departments these are Sales and Marketing Department Administration Department inance Department Logistic Department Technical Department Let we discuss each oI these departments in detail: SaIes And Marketing Department: On the whole sales and marketing department is consist oI thirty-seven (37) employees. As mentioned in the organ gram oI the CCBPL, Multan Plant Mr. Usman ZaIIar Butt is the Head oI the department. He is a competent person in the Iield oI marketing. You may able to better understand the structure oI Sales and Marketing Department oI CCBPL, by that Iigure
SaIes & Marketing Manager Mr. Usman ZaIIar Butt is the head oI the Sales and Marketing Department oI Multan Plant. His responsibilities are to co-ordinate the activities oI sales department and oI Marketing Department. He assist the regional sales managers Ior the sale in their regions. And also assist marketing manager Ior running the marketing activities smoothly. Distribution of the SaIes Area of MuItan PIant The whole area oI Multan Plant is devided into three (3) broad regions these are Multan, Sahiwal and Dera Ghazi Khan. MuItan Region Mr. Ali Navaiz is the Sales Manager oI the Multan. He is responsible Ior the sale in Multan Region. The whole Multan region is Iurther divided into to areas these are named as Multan Base and Multan District. The whole Multan city including old city is the part oI Multan Base. While Multan District consists oI all neighbouring areas oI Multan city e.g. Bodla, Makhdoom Rashid, MuzaIIar Garh etc. or the co-ordination oI Mr. Ali Navaiz there are two Area Sales Managers Ior each area oI Multan Region. These are Imran Hashmi Ior Multan Base and Mr. Ali Aamir Ior Multan District. And these both have number oI Market Development OIIicers (MDO`s) Ior the development oI the market. Basically Ior sales purposes the whole territory oI Multan region and other regions is divided into many small parts and Ior each part we have a separate distributor i.e. Ior Multan Cantt we have Sardar Qayyum Co. and Ior M.D.A. Chowk we have Niazi Traders as distributors. or every two distributors normally the company oIIers the services oI one Marketing Development OIIicer. or that company get two types oI beneIits With the help oI these MDO`s company come to know the actual situation oI the market Irom the mouth oI their own employees. And company provide assistance to the distributor Ior achieving the sales targets. SahiwaI Region Mr. Kaleem Bukhari is Sales Manager oI that region. He is also a graduate Irom our department. He completed his studies Irom the department in 1989. He is really a co-operative man. During my stay at Coca-Cola he really helps me in understanding the culture oI the organization. Which remains helpIul Ior me Ior the period. Sahiwal Region covers the area oI Sahiwal City, Jahanian, Khanewal etc. As in Multan region there are two Area Sales Managers Ior the co-ordination oI Regional Sales Manager similarly there are also two Area Sales Manager in Sahiwal. According to the sale Sahiwal Region is best among the whole territory oI Multan Plant. These two ASM`s are Mr. Mubeen and Mr. Ejaz Hussain. They are hard working people. Due to their hard work distributors oI that region are able to achieve the sale targets. The remain departmental structure oI the Sahiwal Region is exactly similar to that oI Multan Region. Dera Ghazi Khan Region The Regional Sales Manager oI Dera Ghazi Khan Region is Mr. Muhammad Jamshed. He is really a simple man. During my stay at Coca-Cola Multan he always co-operate me like an elder brother. The D.G. Khan Region covered the area Irom MuzaIIar Garh to Raja Pur and Ziarat is also in the territory oI D.G. Khan. As in other two regions D.G. Khan has also two Area Sales Managers Ior the co-ordination oI Regional Sales Manager. These are Hamad-EL-Samee and Azhar Ansari. Marketing Department As mentioned in the organ gram oI Sales and Marketing Department it is basically a subpart oI Sales and Marketing Department. Basically the task is divided into two parts on is sales and the other is Marketing. Marketing in CCBPL means the co-ordination oI the sales department. The basic task oI the marketing department is the distribution oI company assets in the market in the Iorm oI Deep reezer, Visi Cooler, Chest Cooler or in the Iorm oI Cabins, boards, hoardings etc. And they are also responsible Ior the proper maintenance oI the record oI these assets. i.e. they have to maintain the record that which asset is where and in which condition and how many assets we have in the store, they also responsible Ior the distribution oI assets among diIIerent regions. When a new lot oI deep Ireezer came to plant by TCCEC then marketing department distribute these assets among diIIerent regions according to their requirement and their sale. Finance Department inance Department is responsible for proper flow of cash and for the controlling of financial assets of the organization. The budget is allocated by TCCEC (The Coca-Cola Export Corporation) for the period of month or two and finance manager of TCCEC of and on came there to check the financial activities. On the whole inance Department consists oI 16 (Sixteen Employees). They all are hard working and loyal to the organization. The structure oI Iinance department is as Iollows: The responsibilities oI inance Department can be to some extent understandable by the chart. our departments are directly reporting to the accounts manager. These are MIS (Management InIormation System) department, Store, Excise, and Cash department. Let`s now we see the responsibilities oI these departments separately. Store The store in charge give the present situation oI the equipments and material in the store. There are three types oI stores in Coca-Cola. One is located in the Iactory where we store equipments and material like tissue paper boxes, soaps, ballpoints, ink etc. oI daily usage. And every purchase which comes into the Iactory premises Iirst added to the store registers. Then it is submitted to the concerned department. Second store is located near to the Iactory in a separate building. This is called the store Ior marketing assets. Every type oI breakage oI bottles is submitted in that store and new assets oI company like D/, V/C are also stored in that store. New crates oI wood are also manuIactured there. or that purpose there is a small workshop. The incharge oI that store give report to the store incharge oI Iactory which then submit that report to the Accounts Manager. Third type oI store is located on the Vehari Road near the B.C.G. Chowk at approximately halI kilometers distance. That is a store oI Iinished goods i.e. Iilled bottles came there Irom the Iactory and Irom there the distributors get there orders. The incharge oI that store is directly reporting to Accounts Manager. MIS (Management Information System) Department MIS department is responsible Ior the generation oI reports Ior each department i.e. Ior production department about the situation oI empty and syrup. Report oI ManuIactured stock Ior the sales coordinator. And these reports are also submitted to the BOM and to the Accounts Manager. On the basis oI these reports Management make decisions about the production, sales and diIIerent matters. This department is also responsible Ior the development oI computer programs Ior all departments. That department is consists oI only two employees one is MIS Manager and the other is his Assistant. Management inIormation System Manager in Coca-Cola Beverages Pakistan Limited, Multan Plant is Mr. Rizwan Graduate Irom a private computer institute oI Multan City. He developed diIIerent programs Ior the preparation oI daily reports Ior management. Cash Room Cash Room is like a bank. It makes the transaction oI cash possible Ior the company. Mr. Khalid Khan controls that department. Coca-Cola made payments in two ways one through check and other in the Iorm oI cash. The payment which is made through check is issued by Accounts department itselI while cash payments are given to the vendors Irom that cash room. or example Coca-Cola pay to daily wagers in the Iorm oI cash and that payment is made through that cash room. While the pay oI permanent employees is automatically transIerred to their accounts. And cash room is also responsible Ior the collection oI cash Irom distributors Ior their purchases. Excise Office That oIIice is on the gate oI Iactory that is controlled by Excise Attorney which is an employee oI the Government oI Pakistan. He is there Ior the collection oI taxes. To smoothning the Ilow oI cash to the taxes The Coca-Cola Export Corporation arranges an equipment Ior each plant which can count the No. oI crates loaded in the truck which is going out oI the Iactory. In that way the proper Ilow oI cash to the Government is possible without any embiguity. Excise Attorney is not directly reporting to the Accounts Manager. But he can solve his problems by consulting Accounts Manager. TechnicaI Department On the whole there are thirty (30) permanent employees working in the Technical or Production department. And also number oI daily wagers are also working in the department. There are number oI processes takes place in Technical department like washing oI empty bottles, preparation oI syrup, chilling and Iilling plant. That is purely a technical department most oI the employees in the department are technical and others are operative people. The structure oI Technical or Production Department is given below:
There is a Quality Assurance Manager who is responsible Ior all the operations oI the Technical department. In Coca-Cola Beverages Pakistan Limited Multan Plant Quality Assurance Manager is Mr. JaIIar Hussain. He is a competent man. Due to his hard working and commitment to the work Coca-Cola Beverages Pakistan Limited Multan Plant is able to achieve these targets. There is also two ShiIt Chemists separate Ior day and night shiIts. There is a lab in the production department, which is responsible Ior the assurance oI proper quantity oI sugar, syrup, water in each bottle aIter every 500 regular bottles they check one bottle Ior the assurance. Production Process The production process oI Coca-Cola takes place in only one department because it is not a very big plant or the production oI cold drink does not require lengthy or time consuming procedures. The theoretical capacity oI the plant is 24 hours a day, which means that three shiIts oI production, each consisting oI 8 hours, can be run in a day. The requirement or demand oI cold drinks has a seasonal trend. So in case there is a greater demand Ior the drink, the plant is operated 24 hours a day using 3 shiIts, i.e. its theoretical capacity. During the whole year, in working days, at least two shiIts are run daily. The plant consists oI Iour major components; namely the washer, Iiller, chiller and the water treatment plant. or production process, the very Iirst thing required is empty bottles. The vehicles or delivery vans bring the empty bottles to the production department. Bottles are taken out oI the crates and placed on a conveyer belt. This portion oI the plant is called 0.,807. rom de-caser, the conveyer belt takes the bottles to the washer. Between washer and de-caser, the bottles are sorted in two rows. A person is standing there to pick the straws leIt in the bottles. AIter that the bottles pass through a section, where bright light Ialls on the bottles. One person is standing on either side oI the rows to observe iI there is any breakage in the bottles. These bottles are taken out Irom the rows and set aside. AIter that, the bottles are moved to a large deck Irom where the bottles are picked up and put into the washer automatically. BeIore loading into the washer, the bottles keep on depositing there and stay there Ior at least 10 minutes. In the washer, the bottles are treated with steam, chemicals and water. The washer is designed in such a way that there is no chance Ior any dirt or contamination remaining on the bottle. But even then, aIter passing through the washer, another person inspects the bottles and iI anyone Iound suspicious, it is immediately separated Irom others and sent back through another conveyer belt. In another section oI the department, water is puriIied and hygienically standardized through a treatment plant. In another room which is called CO 2 room, liquid carbon dioxide is put into the machine. Another room, where the concentrate and sugar are also put into process, takes them to the mixer. In CO 2 room and the room where concentrate and sugar are put into process, meters are there which note the quantity oI CO 2 and concentrate consumed during the period. In the mixer, Iixed proportions oI water, sugar and concentrate are mixed together. This mixture or syrup is then passed through another part oI the plant where CO 2 is mixed with pressure. Now the syrup is ready to be Iilled into the bottle. The syrup is automatically transIerred to the Iiller. The conveyer belt containing empty bottles passes through the Iiller. The Iiller Iills the bottles with syrup. The next portion oI the plant puts the crown on the bottle. AIter that, the bottle is ready, but beIore passing out, the bottles are once again checked and iI any bottle is Iound broken, under-Iilled or improperly closed, it is taken out and sent back. AIter that the bottles are ready to be put into crates and these are loaded into the vehicles and sent to the distributors or retailers. Production Rate During whole oI the process, a bottles takes about 1 hour and 30 minutes to pass through all the process, and when the production stops, then the last bottle sent on the conveyer belt is ready aIter one and a halI hour. So the total production time consumes about one and halI hour extra. The same plant is used Ior Iilling Sprite and anta bottles. So Ior this purpose, the production process is to be stopped, syrup/mixture is changed and new bottles (anta or Sprite) are loaded onto the conveyer belt. This changing oI the bottles is called ange Over, and Ior this purpose, the whole production is stopped, completed and then started again. So this changing over requires one and halI hour extra time. In this way the total production time can be calculated. The Iiller Iills about 3-4 bottles in a second which gives an average oI 200 bottles a minute. So iI the total production time is known, we can easily calculate the units produced during a shiIt or a day. The production quantity can also be determined by another way. The total empty bottles received Irom the loading department are noted, then the bottles broken, taken out due to dirtiness, breakage, improper Iilling or Iree drinkage are noted at the end oI the day or shiIt. These are totaled and subtracted Irom the total empty bottles. This gives the number oI bottles Iilled during the shiIt. It can also be tallied with the number oI Iilled bottles received by the loading department. Logistic Department Logistic department is basically the combination oI two departments these are logistic and shipping department. The whole transports and vehicles are arranged and maintained by logistic department. And shipping department is responsible Ior the maintenance oI inventory oI empty bottles. On the whole logistic department is consists oI 27 permanent employees. And rest oI the employees work on daily wages. The structure oI Logistic Department is given below:
ResponsibiIities Of Logistic Department As I mentioned earlier logistic department is basically Ior the purchase and maintenance oI new vehicles. or that purpose they have a workshop Ior heavy-duty vehicles and Ior cars in the Iactory. And Ior the motor cycles they made arrangement with a workshop Irom where employees get work done and payment will be made by the Iactory at the end oI the month. Types of VehicIes in The Factory There are basically Iour major types oI vehicles in the Iactory. These are Motor Cycles Ior Market Development OIIicers (Sales StaII) Cars Ior Management Vans Ior Loading Loader Machine Coca-Cola oIIers a motorbike and 60 liters oI petrol per month to each Market Development oIIicer (MDO). And the maintenance oI the motorbike is also the responsibility oI company. The issuance and maintenance oI these motorbikes is also the responsibility oI logistic department. II a new employee is employed in the sales department as MDO then marketing or sales department send a request Ior motorbike to the logistic department and iI logistic department has any extra motorbike then they issue that one to that employee otherwise they purchase a new motorbike Ior that employee. Coca-Cola also oIIers cars Ior the management. Coca-Cola Multan plant has approximately 15 cars Ior management. 1300 CC car is only allowed to BOM (Business Operations Manager) and all departmental heads can use 1000 CC car. The issuance and maintenance oI these cars is the responsibility oI logistic department. Logistic department is also responsible to maintain the record oI petrol consumption oI each motorbike and car. or the purpose oI petrol Coca-Cola International Multan Plant arranged an agreement with a petrol pump oI shell near the Iactory Irom where any employ can Iilled his vehicle by giving a slip which is issued by logistic department. Vans are also there in the Coca-Cola Multan Plant. These are Ior the purpose oI supply oI crates to the places where cases are issued directly by the Iactory such as Police Commissioners and these vans are also used to supply assets oI Iactory to the shops like Deep reezers, Visi Coolers, Chest Coolers etc. Loader Machines are used in shipping department. These are used to load and unload the trucks etc. or the maintenance oI these vehicles and cars a workshop is present in the Iactory where many competent mechanics were employed to assure the proper maintenance and working oI these vehicles. Purchase Department The responsibility oI Purchase Department is to purchase every sort oI requirements oI diIIerent department but they are not responsible Ior some technical requirement like empty is managed by TCCEC or shipping department itselI. The work procedure oI purchase department is like that iI a department want to purchase any thing he will prepare a purchase requisition on this requisition the signature oI departmental head, BOM and oI inancial Manager is necessary. Then this requisition will sent to the Purchase department where they prepare a work order and give one copy oI this work order to the shopkeeper who is producing the product and one copy will sent to concerned department and one will remain in the purchase department to receive the amount oI that work vendor should contact to the Iinance department Ior the payment or Ior the check with the slip oI work order. Purchase department consists oI only two employees one is Purchase Manager and other is his Assistant. Purchase Manager oI Coca-Cola Beverages Pakistan Limited Multan Plant is Mr. Nasir Abbas and Mr. Naeem is his Assistant. Administration Department The responsibility oI Administration department in Coca-Cola Beverages Pakistan Limited, Multan Plant is the administration oI all sort oI Iormal and inIormal activities. In Iormal activities the maintenance oI attendance sheet oI daily wagers, which is then shiIted to the Iinance department where they made salaries Ior these employees on the basis oI there attendance at the end oI the week or month. or that purpose there are gate keepers who are also responsible Ior the issuance oI entry cards to the visitors and they maintain the record when an employee comes in the Iactory and when he leaves either he is on oIIicial duty or going out Ior his private work. On the whole Administration Department is consist oI eleven employees. The structure oI Administration Department is given below.
My attendance record is also maintained by Admin Department. Attendance sheet aIter 20 min. oI morning time is presented to the BOM (Business Operations Manager) and he checks who came in time and who are not. And he personally ultimate the habitual employee. My Activities at CCBPL, MuItan PIant I spent almost 6 weeks in the CCBPL, Multan Plant during my stay I experienced many things at the plant. I got many type oI practical experiences especially my study oI MIS (Management InIormation System) is proved very helpIul in understanding situations and developing the solutions Ior these situations. I experienced that whatever we are studying in our MBA courses these things are practically applied there and the perception oI the students that these things are only written in the books these are not practically applicable in the business world is wrong. I Ieel organizations apply all these things but there is a slight diIIerence due to the variation in situation and requirement oI that organization. or example in Iinance department every organization has its own Iorm oI activities due to the diIIerent sort oI requirements. And in Marketing some products are lightly based on Marketing Activities but some organizations are highly marketing oriented, their totally sales are dependent on the eIIorts oI marketing department so these organization give more emphasis to the marketing activities while a capital intensive industry give more emphasis to the Iinancial activities. CCBPL, Multan Plant is one oI the organizations where Marketing eIIorts are oI most importance. And I am lucky in the sense that I got the chance to do work in the Marketing Department Ior most oI the time oI my stay at CCBPL, Multan Plant.
In Finance Department I spent almost one and a halI week in the Iinance department. It is very diIIicult Ior a person to Iully understand the procedures oI Iinance department in a short period. But during my stay I tried my best to understand the way oI doing work in Iinance department. Which I already explained in the introduction section oI Iinance department. In Management Information System Department I spent almost two weeks in the MIS Department. I did work there under the assistance oI Mr. Rizwan who is MIS Manager in CCBPL, Multan Plant. During my stay at CCBPL, Multan Plant he is developing program Ior Marketing Department to maintain the record oI Company Assets. As I had the experience oI doing work in the Marketing Department so management sent me to the Marketing department Ior the assistance oI Mr. Rizwan as I to some extant know the requirements oI Marketing Department. I helped Mr. Rizwan in preparing that program Ior the Marketing Department. In Marketing Department I spent most oI the time in the Marketing Department CCBPL, Multan Plant. Because at that time they require an employee in the department and they give me an assignment to develop a system in which they can maintain Record oI company assets. or that purpose I initially did work on the understanding oI the requirements oI the management. or that purpose I conduct some interviews oI management i.e. Sales and Marketing Manager etc. and also I got an apportunity to had a meeting with Marketing Manager oI TCCEC Mr. Ali-us-Sajjad. He really helps me in understanding the requirements oI TCCEC (The Coca-Cola Export Corporation). AIter understanding the requirements I did visit the store Irom where the gate passes oI assets are issued I collect that record oI all gate passes which had been issued since then Irom the Iactory. I also made discussion with employees oI Marketing department like Mr. Maudood Khan, Mr. Harris A. Malik etc. to understand the requirements oI these people. These interviews also help me to understand the existing system oI Marketing Department regarding assets. Basically company assets can be identiIied by two Numbers these are one is Serial No. oI the equipment which is issued by the manuIacturer oI the assets e.g. Pel Ior Deep reezer, Seil Kelvinator Ior Visi Cooler and Chest Cooler. The CCBPL, Multan Plant issue an Asset Code Ior each asset which is in the Iollowing Iormat. 07-03-02-9999 Ior Deep reezers and Ior Chest Coolers 07-03-01-9999 Ior Visi Coolers Iirst I got approval Irom the management that I should maintain that record by making a database but I am not able to get approval Ior data base so I decided to maintain that record in excel. or that purpose I prepared a table on the basis oI the inIormation I can get Irom the gate passes. I prepared separate page Ior separate regions oI CCBPL, Multan Plant e.g. Ior Multan Region, Sahiwal Region, and Ior Dera Ghazi Khan Region. As the no oI units given in the Multan Region are very high so I decided to divide it into two areas i.e. Multan Base and Multan District.
That table has Iollowing Iields: ame of the ield Purpose Sr. # It gives the the total No. oI assets in the area Gate Pass No. Number oI the gate pass on which that is issued Asset Type Deep reezer, Chest Cooler, Visi Cooler ManuIacturer i.e. Pel, Seil Kelvinator, Inter Cooler etc. Serial No. Serial No. oI the asset which is issued by the manuIacturer oI company. Asset Code Code oI the asset which is issued by Company. Date oI Issuance It shows the date on which gate pass oI that asset is issued Name Address oI The Shop Name and Address oI the shop Ior which that asset is issued. Agency Name Name oI the Agency under which territory the shop is located. MDO Name oI the Market Development oIIicer oI that area. Purposes It Serves That table serves all requirements oI the management. or example II management wants to know which asset is on which shop that can easily obtained by giving Asset Code, Serial No. or Gate Pass No. Similarly iI management want to know when an asset is issued it can also be obtained by giving gate pass no, shop name, etc. The Coca-Cola Export Corporation oIten requires how many assets you have been issued so Iar that table can also Iind it out. Similarly iI management want to know how many assets in a speciIic region you can know Irom that table. You can Iind out how many assets have been issued in a speciIic area oI distributor. You can also Iind out that how many assets have been issued Ior a speciIic Marketing Development OIIicer. It can also tell us that how many assets oI speciIic company are issued. So it servers all requirements oI CCBPL, Multan Plant`s management. Some SpeciaI Activities In Marketing Department Gore ead Activity Gore head activity is a special type oI marketing activity that is launched by TCCEC through the country. That is the basically eIIort oI Coca-Cola International to introduce the new original taste oI Coca-Cola. That is really a successIul activity Ior introducing the new original taste. Coca-Cola made an arrangement with a distribution company to sell out his Not ReIundable or disposable bottles at the price oI Rs. 5/- only. Although regular price oI that bottle is Rs.12/-. And that bottle is chilled also. On Iirst day I assigned duty Ior the supervision oI these gore heads. That was my Iirst day at coke.
An Interesting Incident That was my Iirst oIIicial day at coke. I assigned responsibility to supervise the gore head activity at Ghanta Ghar by Marketing Manager. My responsibility during that supervision is that I have to decide where the distribution channel should place the gore head center because they are Irom Karachi they don`t know the important locations oI Multan city. or that activity purpose Coke got permission Irom Administrator Municipal Corporation to place stall on the diIIerent spots in the city. At that day I decided to place two stalls at Ghanta Ghar. One in Iront oI Multan Kitab Ghar and the other is at the slide oI Lohari Gate I also concerned the Marketing Development OIIicer (Mr. Anees) who is also with me at that time. But as you know that is really a place oI rush in the Multan City. As we started the sale people rushed upon the boys oI distribution channel. In the Iew minutes I realized that iI we continued the sale the result may be in the shape oI lost oI many bottles in the evening. So I decieded to stop the sale at the both spots. The supervisor by the distribution channel is Mr. Imran he came to me and asked me to move Irom here. As I had already inIormed about the position oI the gore head to the Marketing Manager, so I can not move now without his permition. So I decided to make a telephone call to marketing manager. When I told him the situation the answer is really amazing Ior me. He said to me, ou are at the spot you can better understand the situation so you can make better decision? He also said that don`t waste your time in making telephone calls. The answer oI Marketing Manager gives me lot oI conIidence. So I told the Marketing Manager now I can make decision. By this incident I came to know that in marketing timely decision is very important. A man oI marketing cannot wait Ior the boss to come and guide him Ior the situation. And it also helps me in understanding the culture oI CCBPL, Multan Plant. The people at CCBPL, Multan Plant are trusting people. They always used to trust on the ability oI their employees. Market Surveys And My Assignment As the management oI CCBPL, Multan Plant had decided to give me the assignment oI maintaining the records oI chillers, so they sent me in the market Iirst oI all to get inIormation about the already issued chillers. So I went to the diIIerent areas oI Multan City with the MDO oI that region like one day I visited the area oI Purana Shuja Abad Road with the MDO Mr. Ali Raza Gardazi and on the second day I visit the area oI Makhdoom Rashid with MDO Mr. Zia Akhtar. In that way I completed all the shops oI Multan City in 7 days where our assets are present. AIter that I got the record oI Dera Ghazi Khan and Sahiwal Irom Mr. Harris A. Malik who already visited these areas. During these surveys we collect the inIormation about the assets and about the condition oI assets. We have to note the Asset Code and Serial No. oI the asset and also the name oI the shop keeper and shop and location oI the shop. AIter collection oI that record I divide the whole record according to the agency record then I compared collected record with the record, which I got Irom the store through gate pass. II I Iound any asset, which is issued Ior the diIIerent shop, and know physically present in the diIIerent shop I got out such type oI records and send these records to the respective Regional Sales Managers Ior the Iurther veriIication. Then I got these veriIied records with the Iorm oI change oI shop which is necessary Ior the movement oI asset Irom one shop to another. Then I started the entry oI record in the computer.
Arrangements of AnnuaI EmpIoyee Day During my stay in Marketing Department CCBPL, Multan Plant also arranged the annual employees day aIter the end oI tough month oI June. In June CCBPL, Multan Plant achieved the target sale. So the annual employee day is the prize Ior the employees by the management. That Iunction is really important Ior the management oI CCBPL, Multan Plant because the management oI the country Irom diIIerent plants are coming to the Multan Plant and also some oIIicers oI TCCEC are coming to attend the meeting. Mr. Sherazi is the chieI guest oI the Iunction. The whole management came one day earlier in the Multan Ior some meetings with Business Operations Manager oI Multan Plant. We have to arrange these meetings too and we also have to arrange the plant visit oI the management. or all these tasks marketing manger assigned diIIerent duties to diIIerent marketing members. My Iirst duty is the arrangement oI night dinner at Holiday Inn. And we also stayed there at Holiday Inn Ior the assurance oI proper arrangements. or the entertainment oI employees we call Miss Humera Arshad (A Iamous Iemale Singer). The Iunction is really successIul. Higher management appreciate our eIIorts and our arrangements. Business Operations Manager is really happy with our arrangements. So he decided to reward us Ior our hard working. He invited the marketing team (Mr.Usman ZaIIar Butt, Rana Akmal Sher, Madood Khan, Harris A. Malik, Muhammad Junaid Khan, Muhammad Akmal, Muhammad Mehar Munir) on lunch at KENZOO Mall Plaza, Multan Cantt. He also decided to give a prize oI Rs. 500/- to each oI marketing team member. He declared that prize during the lunch.
Gore ead Activity In Dera Ghazi Khan The Gore Head activity is approved by TCCEC only Ior big cities oI Pakistan. But that activity is proved so successIul that management decided to launch it to the to the small cities too Ior one day only while it continued in Multan Ior 6(six) days. or that purpose management get special approval Irom TCCEC. And we (Marketing Team ) went to the Dera Ghazi Khan Ior that activity. In Multan City there was a distribution channel to sell these bottles but in Dera Ghazi Khan we them selves have to sell these bottles. We divide the whole Marketing Team and MDO`s oI Dera Ghazi Khan into two sub teams and place our stalls at two diIIerent places in Dera Ghazi Khan. One at Pakistan Chowk and the other at Azadi Chowk. We have to sell round about six hundred crates and each crate contains 12 bottles. Our expectation is that we may hardly able to sell these crates but response is Iar better than our expectations. We sold all these crates till the noon. Accident In Dera Ghazi Khan As I mentioned earlier that in Dera Ghazi Khan we have to sell the bottles our selI. So when I was selling these bottles at Pakistan Chowk a bottle brust and the one piece oI glass oI that bottle injured me. The Marketing Development OIIicer Danyal is present there he got me to the doctor. The doctor did the dressing oI my injured arm. And give some medicines to me. The whole expenses oI the Medicines is also aIIord by CCBPL, Multan Plant. Arrangements of Business PIan 2001 That was my last Iunction at CCBPL, Multan Plant. That meeting was very important in the sense that in that meeting management is going to take the decision about the Iuture strategy oI the CCBPL, Multan Plant to capture the major share oI the market. or that purpose marketing department decided to issue a card to every person who is going to attend the meeting. The preparation oI these cards is my responsibility. Thanks God I proved my selI that I can do that very well. Mr. Sheraze appreciates that idea oI Marketing Department. With the help oI these cards we are able to solve the problem oI over attendance in the meetings. And another beneIit we get Irom the cards is that in that meeting we also had to distribute some prizes Ior the distributors who achieve there targets during the year 2000. Its really good Ior the management that they are able to call every person with his name. Which shows the value able ness oI these people in the eyes oI management. The prizes included a Pick up Van, a Motor Bike, an Air Conditioner and similarly some other small prizes. That annual meeting was held in Shangrila Chineese. AIter that business plan we went to the Shangrila Bar B Q. Where there is the inauguration oI children park which is provided by CCBPL, Multan Plant. Mr. Sherazi, Mr. Ali us Sajjad, Mr. Rizwan Ullah Khan, Mr. Aamir Querashi, and Mr. Usman ZaIIar Butt conducted the Business Plan meeting. They made the decisions about the Polices oI CCBPL, Multan Plant with the collaboration oI Distributors oI Multan Region.
TabIe of content assage by CEO.........................1 About The Company ........................................................................................ 2 ission Of Coca-Cola nternational ................................................................. 2 Our ission s To aximize Share-Owner Value over Time ........................... 2 Objective .......................................................................................................... 2 Our Profile ....................................................................................................... 3 The company stock.......................................................................................... 3 Company's Operating anagement Structure ................................................. 4 Social Responsiveness.................................................................................... 4 Our Bottling System ......................................................................................... 5 History Of coca-cola ........................................................................................ 6 Coca-cola year by year .................................................................................... 6 Brands of Coca-Cola ..................................................................................... 15 inancial Report of Coca-Cola nternational of Year 1999............................. 15 Our Business ................................................................................................. 15 Volume .......................................................................................................... 16 nvestments ................................................................................................... 16 arketing ....................................................................................................... 17 Brands ........................................................................................................... 18 Bottling System .............................................................................................. 19 ACAL STRATEGES ............................................................................ 21 Debt inancing .............................................................................................. 22 Share Repurchase ......................................................................................... 22 Dividend Policy .............................................................................................. 23 inancial Risk anagement .......................................................................... 23 oreign Currency ........................................................................................... 24 nterest Rates ................................................................................................ 25 Performance Tools ........................................................................................ 26 Total Return To Share Owners ...................................................................... 26 History Of Coca-Cola n Pakistan .................................................................. 27 ultan Beverages .......................................................................................... 28 Product Range ............................................................................................... 28 Area Covered by ultan Beverages .............................................................. 28 Company Objectives...................................................................................... 29 Coca-Cola nternational n ndia And Pakistan .............................................. 29 ission of CCBPL, ultan Plant. ................................................................... 30 Changes n ultan Plant ............................................................................... 30 Business Operations anager (BO) ........................................................... 31 ew structure of Coca-Cola ultan Plant ...................................................... 31 Sales And arketing Department: ................................................................. 32 Sales & arketing anager .......................................................................... 33 Distribution of the Sales Area of ultan Plant ............................................... 33 arketing Department ................................................................................... 35 inance Department ...................................................................................... 35 Technical Department.................................................................................... 38 Production Process........................................................................................ 39 Production Rate ............................................................................................. 41 Logistic Department ....................................................................................... 41 Responsibilities Of Logistic Department ........................................................ 42 Types of Vehicles in The actory .................................................................. 42 Purchase Department .................................................................................... 43 Administration Department ............................................................................ 44 y Activities at CCBPL, ultan Plant ............................................................ 45 n inance Department .................................................................................. 46 n anagement nformation System Department .......................................... 46 n arketing Department ............................................................................... 46 ame of the ield Purpose ............................................................................ 48 Some Special Activities n arketing Department ......................................... 49 Gore Head Activity ......................................................................................... 49 An nteresting ncident ................................................................................... 50 arket Surveys And y Assignment ............................................................. 51 Arrangements of Annual Employee Day ........................................................ 52 Gore Head Activity n Dera Ghazi Khan ........................................................ 53 Accident n Dera Ghazi Khan ........................................................................ 53 Arrangements of Business Plan 2001............................................................ 53