Internship Report

Executive Summary

Coca Cola beverages Pakistan Limited is trying to manage its operations properly.

Coca Cola uses “The central purchase system” according to which the raw material (co2
&sugar) is purchased by the head office for all the plants in Pakistan to get the
advantages of bulk purchase discount. This factor is covered due to their own
suppliers.

In production process Coca Cola is trying to use latest technology. Their process strategy is a
mixture of product focus strategy and mass customization. They are using new
technology and they are continuously trying to improve their production
process. But they are not using flexible manufacturing system and computer
integrated manufacturing.

Coca Cola is providing quality products and they are using almost all the tools which are
necessary to maintain and ensure high quality. It is internationally certified
with quality (ISO 9001: 2000), environment (ISO 14001: 1996), and
occupational health and safety (OHSES 18001:1999) Standard.

Coca Cola beverages Pakistan limited is an outstanding firm which knows the importance of
an effective and efficient human resource strategy. Large percentage of labor
cost is under the direction of operations management. They have designed job
that use both the physical and mental capabilities of their employees.

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Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape our
business in the future and move swiftly to prepare for what's to come. We must get ready for
tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination
for our business and provides us with a "Roadmap" for winning together with our bottling
partners.

Our 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.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference

Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

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

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

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

Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us to make
our 2020 Vision a reality.

Live Our Values

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

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

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Accountability: If it is to be, it's up to me

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• Passion: Committed in heart and mind

• Diversity: As inclusive as our brands
• Quality: What we do, we do well
Focus on the Market
• Focus on needs of our consumers, customers and franchise partners
• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day
• Be insatiably curious
Work Smart
• Act with urgency
• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent
• Work efficiently
Act Like Owners
• Be accountable for our actions and inactions
• Steward system assets and focus on building value
• Reward our people for taking risks and finding better ways to solve
problems
• Learn from our outcomes -- what worked and what didn’t
Be the Brand
• Inspire creativity, passion, optimism and fun.

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Introduction of Sector in Soft Drink

Non-Alcohol Beverages

Coca-Cola Company

The Coca-Cola Company is the world's biggest drinks company, controlling more than half
the global market in carbonated soft drinks as well as a substantial chunk of the non-
carbonated segment. It owns four of the world's five best-selling soft drinks. Its principal
brand is of course Coca-Cola itself, the single most valuable brand in the world. But the
company also sells almost 400 other beverages ranging from spin-offs such as Cherry Coke
and sister brands Fanta and Sprite to a vast range of carbonated and non-carbonated juice-
based drinks, bottled waters, iced teas and coffees. Recently the company has found its sheer
size working against it. Competition authorities watch the company's every move, while
market saturation and economic downturns in both emerging and mature markets have
repeatedly caused sales growth to stall. Advertising Age estimated global measured
advertising expenditure of $2.2bn in 2007

Brand

Coca-Cola Dasani
Fanta Lift Apfel
Sprite Simply Orange
Powerade BonAqa
KMX Mello Yello
Barq's Georgia
Kapo Nestea
Valser Minut Maid

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Sprite 3G Kinley
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Pepsi Corporation

If PepsiCo has a chip on its shoulder about Pepsi always being second in the cola market to
Coke, at least the company puts it to good use. The biggest slice of PepsiCo's business comes
from Frito-Lay, the world's leading manufacturer of potato chips, with brands including
Lay's, Fritos, Doritos, Walkers Crisps and Ruffles. The group has also been far quicker than
its rival to exploit the fast-growing non-carbonated market. Smart acquisitions such as
Tropicana juice and sports drink Gatorade, as well as a strong presence in bottled water, have
made PepsiCo the biggest non-alcoholic beverage Company in North America, well ahead of
Coca-Cola. Advertising Age estimated global measured advertising expenditure of $1.6bn in
2007,

Brand

Pepsi-Cola Golden Grain Pasta

Frito-Lay Fruit Works
Walkers Crisps Near East
Aquafina Gatorade
SoBe beverages Dole Juice
Lipton Brisk Tropicana Juice
Mountain Dew Quaker Oats

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Nestle Corporation

Nestlé is the world's biggest food manufacturer, with around 480 factories in 86 countries,
and a portfolio that ranges from baby foods to pet care, from chocolate to mineral water. Its
world-famous brands include Nescafe, Kit Kat and Perrier, among many others. The group
also owns a large shareholding in cosmetics company L'Oreal. As with other food companies,
recent years have seen a greater concentration on a focused food and beverage business. In
particular Nestlé has leveraged its performance in
sectors such as ice cream and pet foods with an aggressive acquisition strategy. Advertising
Age estimated global measured advertising expenditure of $2.2bn in 2007,

Brand

Nescafe Gervais Extreme

L'Oreal Maggi
Nestlé Rowntree Maxibon
Nestlé Purina / Friskies Galderma
Nestea Buitoni
Cereal Partners Herta
Dreyer's Ice Cream Gerber
Nestlé Waters Nespresso
Baerenmarke Alcon Laboratories
Nesquik Jenny Craig
Mirinda

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Red Bull

First introduced in Asia in the late 1960s, Red Bull began a small revolution in the global soft
drinks market in the 1990s. Since its European launch in 1987, the sickly sweet stimulant has
carved out a whole new niche of "energy drinks", forcing soft drinks giants Coke and Pepsi to
play an undignified - and so far largely unsuccessful - game of catch-up. Meanwhile, Red
Bull itself is approaching mega brand status, with retail sales of around $11bn. It must be
true; Red Bull really does give you wailings... Nevertheless, there is no shortage of
supervisory bodies keen to clip those wings over recurring but unproven concerns that Red
Bull carries health risks because of its caffeine content or even encourages under-age alcohol
consumption by acting as a "trendy" mixer for vodka. So far, Red Bull has successfully
fought off those complaints.

Brand

Mug Quaker Grits

Quaker Oatmeal Cap'n Crunch
Toddy Red Bull
Life Propel Fitness
Code Red Aunt Jemina

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Brief history of Coca Cola

Robinson was one such, bookkeeper, and reported that the taste of the drink was due in large
part to cocoa leaves and kola nuts used in their manufacture, that taking the pencil wrote
handwritten letters with beautiful Coca Cola.

The drink began to be manufactured where none of us were born yet. It is before the
automobile, radio, television and thousands of other condiments of modern life.

It was invented in 1886 by John S. Pemberton, a veteran of the Army of the South during the
Civil War the United States, who close of hostilities, he continued his work as an apothecary
and proprietary manufacturer specific. Already at age 53 had made, though with little
success, a cough syrup, a regenerator of the blood, hair paint, some liver pills and a soft drink
that I call “Gingerine.”

Its factory in Atlanta, in the state of Georgia, was a dilapidated two-story house, and the
laboratory was reduced to a pot supported on three legs in the back yard. In this pot heated
with firewood made plenty of evidence for a long time trying to produce a new soft drink.
And at last gave a syrup which seemed quite promising, and took a bottle with him to the
source of soft drinks which owned Willis Venable, one of the drugstores in town. He added
soda water before giving it to prove to the public, and after this test was introduced a few
modifications in accordance with the views and advice of future customers. But all that was
missing from Pemberton to commercialize it was a good name.

Robinson was one such, bookkeeper, and reported that the taste of the drink was due in large
part to the leaves of cocoa and cola nuts used in their manufacture, that taking the pencil
wrote handwritten letters with beautiful Coca Cola.

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John Pemberton sold 95 liters of syrup during the first year and approximately 3,800 the
second year. At that time I was already sick and short of money. Sold for $ 2200 two-thirds
of the business, and a year later, before dying, he sold the other third party $ 550.

Who was Asa Candler bought, pharmacist and businessman who was very skilful at that time,
37 years. During his administration the Coca-Cola, which was initially not more than a
curiosity of some soda fountains, became one of the most productive commercial items and
increased demand.

Between 1888 and 1919 Asa Candler became known throughout the United States and then
sell the business for 25 million dollars, without even coming to believe that the company that
bought it would, in the course of one year, a gain net a bit more than that amount. That
company owned Ernest Woodruff, Georgia.

The ads contributed much to the commercial success of the drink, and nearly all signs were
placed in the pharmacy that sold soda water. During the second year, the Coca-Cola began
advertising on streetcars, that in those years were pulled by horses, in Atlanta.

During 1887 it was stated that Coca-Cola was “brain tonic and intellectual beverage,” and
during 1897 was supposed to cure headaches and restored the vigor of the body and brain
exhausted by excessive physical work, mental or insomnia, and were illustrated with
drawings.

The phrase “delicious and refreshing,” known everywhere, dates from 1889.

Candler began in 1894 to paint the walls in their advertisements. And at that time no one
surpassed his genius commercial. Since I could not pack and transport their syrup but
discarded barrels of whiskey, he painted a special red soon became general by the name of
the color of Coca-Cola.

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The Coca-Cola began bottling in 1894. Vicksburg was a salesman who can sell the container
for several mills and plantations, but in 1899 went to Atlanta two men from Chattanooga and
without paying a single cent were left with perpetual bottling rights for virtually the entire
United States. These rights they came to be worth hundreds of thousands of dollars, but the
man who introduced the two of Chattanooga Candler did not have enough interest in the
business to seek a stake in it.

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Multan Beverages Limited

Multan Beverages was established in year 1964 on Vehari road as a franchised unit for Coca-
Cola Company. It supplies soft drink facilities to the people of Multan, D.G. Khan, Vehari
and Khanewal.
Initially it produced Coca-Cola only and at that time its production capacity was 35 bottles
per minute. In early 80’s the plant was modified, thus increased its capacity up to 180 bottles
per minute, then plant had the capacity to produce 320 bottles per minute and company also
started production of Fanta and Sprite. It has engaged in a contract of producing Simba. In
1988, the liter bottle was introduced, which was greatly appreciated by the customers.
Present Multan Beverages has modified their plant with double line process and is producing
2*320 bottles per minute, due to the crying need of the customers.
Now, the factory produces 75% of Coke, 20 % Sprite ,4% Fanta while no return and liter
bottle has only 1% share in the overall production.
The factory has the empty bottle stock of 400,000 bottles.
The Multan Beverages has installed a new flexible plant, producing all sizes.

Bottle size of Coca-Cola

Height 233.8mm
major diameter 58.13 mm
pinch diameter 51.3 mm
weight 424grams

Sugar level in the Beverage

Coca Cola 10.37
Fanta 12.00
Sprite 10.0

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Current Status of Coca Cola

Now the company’s products are sold through 3500 fountain wholesalers and distributors.
Now the soft drink are asked for by name more than 524 million time a day, in more than 80
languages and in approximately 168 countries. The Coke company directly employees 17000
people and 15000 jobs have been created through wholesalers and distributors. It is the
largest selling non-alcoholic drink in the world. Diet coke represents of 47 % of low choleric
drink market.
Today, the Coke Company operates through three business sectors.
· North America soft drink business sector
· International soft drink business sector
· Food business sector
More than 15000 bottling plants in Coke systems are with few exceptions owned and
operated by independent business people native to countries in which they are located. The
current report examines that the productivity of the coke can be imagined by the statement
“Cans up to the moons”
It means that if the cans of Coke are put on one another they will touch the moon.
The independent bottles provide the required investment of land, building, machinery, and
equipment. The company supplies not only the syrup or concentrate but also actively engages
in management guidance to ensure the profitable growth of the bottles business.

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Manufacturing Plants

The company has six manufacturing plants in Pakistan, at the following places.

• Karachi
• Lahore
• Faisal Abad
• Gujranwala
• Multan
• Rahim Yar Khan

Marketing Offices:

The marketing offices are also working in the same cities where the manufacturing plants are
working.

Head Office:

In Pakistan, the head office of the company is situated at Lahore.

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ORGANIZATIONAL CHART (overall)

CEO / MD

EXECUTIVE DIRECTOR
DIVISIONAL DIRECTOR

DEPTY GENERAL
GENERAL MANAGER MANAGER

MANAGER OF
DEPARTMENTS

DEPTY MANAGERS OF
DEPARTMENTS

EMPLOYEES

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MARKETING MIX

PRICE
PRODUCT

PLACE
PROMOTION

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PRODUCTS OF COCA-COLA

Company focus on innovation has resulted in a broad range of nonalcoholic beverages for
every occasion: hydration, energy, nourishment, relaxation and enjoyment. In 2005 alone, it
launched nearly 400 new products --more than ever before in one year. Their portfolio now
includes nearly 2,400 beverage products.
In addition to soft drinks, it increasingly offer juice and juice drinks, waters, sports and
energy drinks, teas and coffees, soy-based drinks and beverages with added nutritional
benefits.

Coca-Cola is now the leading producer in many of these categories. For example, in 2005

It globally ranked
No.1 in soft drinks
No.2 in juice and juice drinks
No.3 in sports drinks
No.4 in bottled water

They also continue to broaden the range of low- and no-calorie alternatives that they provide
to help people manage their caloric intake. And it offers an increasing variety of package
sizes to allow consumers to manage their consumption. For example, during
2005, coca-cola launched the 100-calorie can in the United States and a slim line 150 ml can
in Western European countries.

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In Europe, the calorie content of beverage portfolio has fallen by over 10 percent in recent
years. In countries like Great Britain and Belgium, where this trend is particularly strong, no-
or low-calorie beverages account for 36 percent and 39 percent of our total sales,
respectively.

Company continues to expand into beverages with added health and nutrition benefits, such
as vitamins and nutrients. Some examples around the world include the following:

• Health Works in Hong Kong

• Ipsei in Germany
• Minute Maid with added Vitamin Din the U.S.
• Odwalla in the U.S.
• Minute Maid ready-to-drink milk beverages in Mexico
• Aquarius Active Diet functional water supplement in Japan
•
It also conducting exploratory programs to help address malnutrition with fortified products.
Scientists working with our Beverage Institute of Health and Wellness developed Nurisha, a
water-soluble powder of 12 vitamins and minerals to add to beverages, and conducted clinical
trials in Botswana and Peru. Their first beverage fortified with Nurisha, Vitingo, is available
in South Africa, and they are looking for opportunities to expand it and other fortified
beverages elsewhere. The challenge is to find a viable business model.

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Brands of Coca Cola Company

• Coca Cola
• Diet Coke
• Fanta
• Sprite
• Sprite 3G
• Kinley
• Coca Cola Zero
Its other brands include

• BARQ'S, FRUITOPIA,
• MINUTE MAID,
• POWERADE
• DASANI (TAP) WATER.
• Splash
It also produces

• COFFEES
• JUICES
• SPORT DRINKS
• TEAS

Coke sells Crush, Dr Pepper and Schweppes outside Australia, Europe and North America.
When it comes to bottled water, in addition to their Dasani product, the company sells Group
Danone's spring water brands (Dannon, Sparkletts and Evian) in the United States. Coke sells
close to 400 drink brands worldwide including coffees, juices, sports drinks and teas in 200
countries.

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PRICE

The product price varies from product to product. Here firms have to consider many factors
for determined the price.

• Selecting the price objectives

• Determining the demand
• Estimating cost
• Analyzing competitors cost
• Prices and offers
• Selecting a pricing method
• Selecting the final price

Price objectives

Pricing is based on following objectives:

Price

Profit Sales
Oriented Oriented

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Profit oriented Goals

Coca-Cola prices its product to achieve certain part of return on its investment. pricing is the
time consumed in production process

Sales oriented Goals

Coca-Cola sets its price in such a way to increase the volume of sale. They
have fixed prices of products due to reliability of consumer to prices.

HOW TO SET THE PRICE OF THE PRODUCT

• As these products are of high quality so usually they charge high prices.

• What they believe in high price high quality. These prices are high because they believe
in zero defects.

• They charge different prices to registered and non-registered retailers.

• These prices are fixed because their products are reliable.

• Prices are set by taking into consideration the size and type of product.

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PRICE OF SOME PRODUCTS OF CCBPL

Product Prices
Coca Cola 15
Fanta 15
Sprite 15
1 Liter bottle 30
1.5 Liter bottle 70
Diet Cock 28
Sprite Zero 28
Sprite 3G 13

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PLACEMENT

Location is the process of determining a geographical site for a firm's operation.

Organizations must weigh many factors when assessing the desirability of a particular site
that can be.

 Proximity to customers
 Proximity to suppliers
 Labor costs
 Transportation cost

Place refers to the means by which your customers acquire your Products.

Place involves the following components:

 Channels
 Location
 Coverage
 Transport
 Assortment
 Inventory

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CHANNELS

Channels are set of interdependent organizations involved in the process of making a product
or service available.

As apart of marketing strategy, companies can select

> Direct Channels

> Indirect Channels

Direct Channels

Direct channels allow the movement of goods or services directly from the producer to the
customer's direct channel allows firm to retain total control over its marketing program and
close continuing control with customer.

Indirect Channels

Indirect channels are channels arrangement that relay on intermediaries to move goods or
Services from the producer to the customer.

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CBPL MARKETING CHANNELS

Coca-Cola Beverages Pakistan Limited uses frequently indirect marketing channels. But
sometimes on the large order of a famous customer like PC,Sareena etc it produce specially
for them and directly sale them.

Manufacturer (CCBPL) Company Warehouse

Distributor

Wholesaler

Retailer

Customer

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DISTRIBUTORS

Distributors are the institutions through availability of products are possible. CCBPL
distributors have a very good relationship with them and the important thing is that they must
integrated into total marketing mix because of time and money required to setup an effective
channel.

The main procedure of distribution is that first it goes to warehouse and then to distributor
and at last to final consumers. In selecting a channel company considers buying patterns and
the nature of target market. However company should follow the creation of three control
market coverage and cost that is constant with the desired level of consumer service

PROMOTION

Promotion is a key ingredient in marketing, consists of diverse collection of incentive tools,

mostly short term, designed to stimulate quicker or greater purchase of particular products or
services by consumers or the trade.

PURPOSES OF PROMOTION

To increase new tiers

To reward loyal customers

To increase the purchase rate of occasional users

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Category /types/ elements of promotion mix

Sales promotion

Advertising

Sales force

Public relation

Direct marketing

Types of advertising

IMPORTANT FEATURES OF PROMOTION

There are following important features of promotion

i. Quality
ii. User friendliness
iii. Durability

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PROMOTION STRATEGIES ADOPTED BY COCA-COLA

There are following tools of the Coca-Cola promotion.

 Advertisement and publicity

 Billboards
 Electronic media
 Print media
 Sale promotion
 Coca-Cola market share
 Television
 Newspaper
 Magazines
 Banners
 Exhibition and international conference
 Coca-Cola sponsors fashion show
 Education and fun for partners

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Marketing

In the packaged water business, people pay for a product because they know it is safe, high
quality, available, and convenient. When The Coca-Cola Company sells drinking water in its
various forms, it is not charging for the water, but rather for the value we add to the water to
make it a branded beverage." Coke's website

Coke is a master marketer with specific advertising campaigns for hundreds of different
products. The quote above shows how Coke is able to package and market tap water and then
convince consumers through seductive advertising campaigns and packaging that the product
is worth the price asked. The company's marketing strategy exposes their desire to hook
specific customer groups on their products.

DISTRIBUTION

Now a day's business is extended to a great extent. Markets are widening briskly, so there is a
great need to meet the requirements of this large market successfully. There should be such a
system of distribution that the supply of products to the markets should be according to the
needs; this system should be "sales loss proof”.

CCBPL has a system, which gives maximum results. Supply of product is monitored in such
a way that there are minimum chances of shortage in supply. This system of distribution
enables the organization that the supply of products is according to the needs of the market.

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Function

In CCBPL. distribution department performs following functions

• Receives finished products from production departments.

• Receives weekly or monthly plans for distribution from marketing & Sales
Department HO.

• To make daily dispatch plan.

• To arrange transport facility for delivery of products.

• To pay excise duty and arrange provision for Excise Duty according to legal
requirements.

Distribution Channels

CCBPL has a centralized distribution system in which the products are distributed from one
warehouse to the selected distributor of the company, and then the distributor make the
product available to wholesalers and at the end product is transformed to the retailers to be
purchased by the final customer. The company had direct relation only with the distributors
for making the product available to the target market. There are many certified distributors of
CCBPL operating in almost all major areas of the country.

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Buying Department

The word "buying" means purchase of any thing or any merchandise or item. This function is
performed by buying department in any organization.

Buying or purchase is one of the major functions of any company of organization.

Without it no one organization can run successfully in the field of business. So we may Say
that buying is the soul of company. Without buying all departments of the company will be
failed.

Objectives of Buying Department

The main objectives of any buying department is to purchase merchandise and services with
the object of ensuring the specification, quality, price, time of payment and timing of supplies
are consistent with the overall need and objectives of the business.

Services of buying department of Coca-Cola Beverages Pakistan Limited consist of

 Development of the business strategy.

 Implementation of the strategy through appropriate technology solution.

 Implementation of a related marketing strategy by providing creative solutions.

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Functions

Following function are performed by the buying department of CCBPL.

 To buy all production raw materials including all types of material and packing material.

i. From Right Source

ii. Of Right Quality
iii. Of Right Price
iv. On Right Time Delivery
v. In Right Quantity

 To buy administration department requesting items.

 To buy all engineering requesting items (all types of machinery & spare parts)

 Purchase of medicine for surgery.

 All types of factory purchases through buying department.

 Sales of scraped or surplus items of various department relating capital goods

 Take prompt action and to ensure the job completion well in time

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Procedure of the purchase of Goods

The company has maintained a fine system of buying. In fact, buying department of Multan
factory performs its functions on local basis. But imported raw material & packing material
is bought by the central buying department head office. The procedure of buying can be
explained with the help of following charts:

• Purchase requisition
• Revenue
• Enquiry Letter
• Quotation
• Summary of quotations is made
• Consultation
• Authorization
• Purchase Order
• Distribution of PO's
• Supply of material
• Goods receipt & GRIR
• Store report
• GRIR is accepted
• Payment

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• Rejection
• S.S.A

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FLOW CHAT BUYING

PRs

C.P

Revenue

Scrutiny
Funds C.P Posting of PRS

Enquiry

Consultation with
Requisitioning
Department Summary Quotation

Authorization
Purchase
Order

Supplier

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 Accounts Distribution
Requis. Deptt
Buying

Supply
GRIR
Rejection
Acceptance

S.S.A
Replacement Payment
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Finance Department

Following functions are performed by Financial Accounts Department of CCBPL:

 Maintenance of fixed assets records including related reports

 Calculation of depreciation, Gross Book value (GBV) and Net Book Value (NBV)
 Capitalization and other schedules on yearly basis
 Allocation of manpower cost and depreciation to different location on monthly basis
 Maintenance of medical expenses, Traveling expenses vouchers and their record up to
management staff
 Maintenance of working capital sheet on monthly basis
 Month wise preparation of sheet of credit sales of estate Shop
 Overhead Expenditure statement on monthly basis
 Month end work order report
 To keep record about the details of debtors and creditors of the company
 Preparation of various Debit and Credit notes, Journal Vouchers and their records
 preparation of Reconciliation Statements
Method of Depreciation:

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Method which is used by CCBPL, R.Y.K for calculating the amount of depreciation is called
Straight line method

Calculation of NBV (Net Book Value)

Rs.

GBV (Gross Book value) XXXX

(Less) Depreciation for the year XXXX

NBV XXXX

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Hierarchy Of Finance Department

(Multan)

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 Accounts Manager
(Amir Ahmad Jan)

Asst. Manager
Accounts Officer IT
(Ahmad Rana) (Hassan Sidiqui)

Accounts Executive Accounts Officers Cashiers

Gate Officer

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Payment Criteria

Payment Department is also called APV (Accounts Payable Vouchers). The purpose of this
department is to make the arrangements for the payments of the factory liabilities.
APV section is further classified into two sections

• APV 1
• APV 2

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APV1

APV 1 is classified into further three sections:

• Packing and materials payment section

• Local payment section
• Chemicals and engineering stores payment section

Functions of APV 1

Following functions are performed by APV 1 department:

1. Local payment:

Local payment includes:

Engineering stores items (spare parts)

Repair of building
Items of canteen, mess, entertainment etc.
White wash of building
Medical bills of non-management staff
2. Payment of utilities bills

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3. Payment of packing material

4. Payment of chemicals and perfumes

5. Payment of stationery and printing

6. Payment of medicine

7. Allocation of head office debt and credit notes.

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APV 2

APV 2 makes a payment of wages and salaries for the workers of CCBPL.

Functions of APV 2

Following function are performed by APV 2

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• Payroll relating to are permanent, temporary, badli and apprentices
• Payments to all contracted employees
• Payments to all transporters and other contractors

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Human Resource Management within Coca Cola

Human Resource Management is an essential part for any organization. Moreover,

development of this department is the first step, the ground on which the future of the
company depends. It is essential for every single business unit and especially for such
international company as Coca Cola. It is people, not technology who create the company.
Human Resource Management at Coca Cola Company has many advantages. It is the global
company and it is impossible to create certain policies or procedures applicable in all
divisions of the company, cultural and political differences need to be taken into account.
Therefore, the focus of this paper will be on four tasks and duties of Human Resource
Management (performance management, compensation, career development, succession
planning) based on the United States procedures.

Basically the HRM practices are necessary for every organization. But unfortunately in
Pakistan not so much used HRM practices. In multinational companies like coca cola have
their own separate department of HRM. According senior executive of HR “Waqar
Mahmood “ our HR department consist of 29 people in Gujranwala plant.
Every organization has its own policies and strategies by which they control the functions of
their departments. Similarly, we also have own policies and strategies by which we control all
the functions of our departments. coca cola HR department is also conducting all the
practices of HRM like Job analysis and design of work, recruitment and selection, training
and development, performance appraisals, compensation, employee relationships, staff
welfare and medical policies and some other things like that. These all practices are
conducted by own policies and strategies.
HR department not make decisions related of its own department, they also conduct in
company’s decision.

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Job analysis and designing

Job analysis is the procedure for determining the duties and skill requirements of a job and
the kind of person who should be hire for it. Job analysis consists of two products one is job
description and second job specification.

Job description

A list of job duties, responsibilities, reporting relationship, working conditions, and

supervisory responsibilities- one product of a job.

Job specification

A list of a job’s human requirements that is requisites education, skills, personality, and so
on-other product of a job analysis.
Coca cola company HR department check its own job description and job analysis in which
they get the information about employees work activities, human behavior, performance
standard, job context and human requirements and also other information related to this
conduct.
HR department of Coca Cola used this information for Recruiting, selection, compensation,
performance appraisal, training, and employee’s relationship.

Planning and Forecasting

The process of deciding what positions the firm will have to fill, and how to fill them.
Coca Cola HR department involves in company strategic planning and they also make
sufficient planning for hiring new employees in the future. We forecast for the expected

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employees needs in the organization. We forecast of employees on the change technology

and increasing in productivity.
After planning we send this report to the head office for approval. If we get approval from the
head office then we start recruitment process.

Recruitment process at CCBPL

Our recruitment process is well established first of all we give ads in newspapers, company
website, institutions etc. Once we receive an application form, from candidates with required
documents and C V.

Internal recruitment

External recruitment

Internal recruitment

When there is any job or post is vacant in the organization, organizations first go for the
internal recruitment. It is announced in the organization about the vacancy and existing
employees are given a chance to apply for the job and also suitable for the organization in
manner of cost saving.

External recruitment

It is done when there is not any person with in the organization to be fit for the job or the
organization has to hire a person from external sources.

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External recruitment

It is done when there is not any person with in the organization to be fit for the job or the
organization has to hire a person from external sources.

External recruitment

It is done when there is not any person with in the organization to be fit for the job or the
organization has to hire a person from external sources.

External Selection process

The selection process will vary depending on the position you’re applying for, as one process
can’t fit all the different roles we have here at CCE. However, in most cases a combination of
any of the following tools will be used:

Interview
Group exercises
Presentations
Psychometric tests
Role plays/Situational Exercises

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Interview

The interview is designed to reveal more about you and your experiences. We’ll ask for
examples of how you behaved in different situations, maybe at school, university, a club, at
home or in previous jobs. This is not designed to 'catch you out' and our interviewers will
never try and trick you into an answer. Be honest, be yourself and it should be an enjoyable
experience.
Also, don’t forget that this is your chance to find out more about us and ask questions.
Remember, interviews are two-way processes so use it to understand the nature of the role
and to make sure it really is what you’re looking for.

Group exercises

We’re very much a team at CCE so these will show us how effectively you work with people.
They’re a good opportunity for us to see how you communicate, influence and involve other
people in the workplace.

Presentations

Presentations give you the chance to show your ability to communicate to a group of people
on a specific topic. You may be given a topic in advance or on the day, but don’t worry you’ll
have plenty of time to prepare.

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Psychometric tests

Psychometric tests are timed exercises that examine your abilities and potential. On
occasions, we may also use a personality assessment tool that is designed to find out more
specific things about you. If you’re asked to complete a psychometric test, we’ll send you
information and advice in advance on how to prepare.

Role Plays/Situational Exercises

Designed to assess how you react in certain situations, these help to highlight particular skills
and how well you’re suited for a position. You may be given facts and figures to review, or a
report to complete; we may also have an assessor acting as a customer or employee to
simulate a situation that could occur in the workplace. Don’t worry, you’ll be given a brief
and ample time to prepare.

Training process of employees

Training process is essential part of every employee with out training; employee can not
come to now the procedure of work, rules and regulations of firm, some times when new
technology is introduced it is also responsibility of a firm to train its employees.

After recruiting the fresh employee we train them for three months and also pay them salaries
after three months they become part of a firm
We also give training to already exist employee it depend upon condition for example if new
technology is introduced first of all we give full training to them about new technology then
we allow them to start their job.

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Process of Wages & salaries Flow charts

Attendance overtime leaves from time office

Posting in system

Salary sheet

Invoice to APV for cheque

Cheque/salary sheet to Bank

Disbursement of cash by Bank

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Payments Of Medical Bills Of Workers

Payments of medical bills of workers are also made by Payroll officer. For this purpose one
medical bill after authorization from the doctor and IRD is received to this section after that
petty cash voucher is passed for the payment such expense.

Payment Of Medical, Traveling And Meal Expenses Of J. Ms

For the payment of the above expenses of junior managers the respective statements like
“medical expenses statement” or “traveling expenses” or “meal expenses statement” for
medical, traveling and meal expenses is prepared by certain person and send to Payroll
officer. If it is a medical expenses statement then it is compared with annexed approved bills
and in case of traveling bills or meal allowance, approved booking authority compared with
it, after checking this document is sent to G.M of R.F for further authorization. When this
returned back to officer he makes petty cash voucher for cash payments and journal vouchers
for settlement of accounts.

Wages & Salaries

Employees of the company are divided into two groups:

• Management
• Non-Management Staff

Every department of production sends a location sheet to HR department in which it mention

that how many hours have been spent on each location. HR department also receive
information about the over time etc. on the bases of these information it prepares salaries
sheet and sends to Muslim Commercial Bank Limited.

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Administration Department

CCBPL, Multan has also an administration department that is controlled by the personnel
department. Following functions are performed by the Administration Department:

• Arrangements for providing transport facility to management staff.

• Arrangements for the journey of management & non-management staff.
• Arrangements of stationery and printing.
• Issuance and maintenance of stationery record.
• To provide entertainment to management during working hours.
• Receipts and dispatch of letters, documents etc.

Facility To Management Staff

Usually the management staff has to go to Head Office Karachi for business matters then
they need transport. This arrangement is made by the administration department. The
company has its own transport for dropping and leaning of management staff at the Air Port,
or Railway Station.

Arrangement For Journey

When a manager, Assistant manager or any junior manager wants to go outside the city either
for personal or business purpose, they inform to the Administration Department about their
intention. They instruct to the department for making the arrangements of the journey. An
arrangement of journey includes reservation of seat in train or in Airplane as the case may be.
After making such arrangements the administration department informs to the concerned
person about the reservation and other information.

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Purchase Of Stationery & Printing Of Desired Documents

Stationery includes pen, paper, pencil, rubber, sharpener, etc. All these items are purchased
by the administration department. It sends the purchase requisition to the buying department
for the purchase of required items.
The administration department also prints all these documents, vouchers invoices, sheets etc.
which are used by various departments of the company.

Issue Of Stationery

All stationery is issued by the administration department to various departments of the

company. It also maintains the record of such stationery. Administration department prepares
reports about the issuance of stationery on monthly basis.

Maintenance of Building

Arrangements for the repair and maintenance of factory building are also necessary to run
operations effectively and efficiently. All these arrangements are made by administration
department. Administration department is responsible for such arrangements.

Entertainment Facility

Tea is provided to all management during working hours in order to keep the staff active and
fresh and to improve their efficiency and effectiveness. All arrangements for entertainment
are performed by administration department. Arrangements for entertainment also include
purchase of milk, sugar, tea etc. Administration department is responsible for the
arrangements of crockery for Tea also.

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Sales Department

Sales Operation is directly or indirectly related to distribution in CCBPL SMO ask for the
stock demand what is the need of the tomorrow so they load the beverages stock in night and
go for the sale in the early in the morning by out load voucher. When they came back empty
stock holder will check the unfilled stock and take it in the record. At the same time SMO
told the daily report to the MDO who is the immediate boss about demand paper, load
demand, sales settlement sheet. The problem of the outlets and the information about daily
routine work and the reason of why we fail in achieving target etc.
MDO will give the information to the sales manager about the sales target of the daily visit
and his working plan about the development of market and the new agreements with the new
outlets are the conversation of competitor outlets are the improvement of the market. Sales
manage are bound to regional sales manager about the recent information of sales
department.

The Importance of SMO in Direct Sales Operation

Sales Merchandiser Officer he is a key responsibilities. He is the main person who initially
told about sales in marketing deficiency. He has many responsibilities like
1. Route Coverage: Daily Visit Plan
2. Sales Coverage: Forecast Target
3. Productivity: Cooler Problems
4. Display:
5. Cash & Stock: Responsibility:

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Hierarchy of Sales department

(Multan)

TGM
(Nadeem-Ul-
Hassan)

Planning &
Marketing Distribution Co- RED Sales Co-
TSM ordination
Manager Manager Auditor ordination
(Imran (Agha Ali (Malik Executive (Hafiz. M (M.Saleem
Hashim) Gohar) Amjad) (Noshaba Sabir) Raza)
Malik)

Officer
Key Trade Cold Drink Fleet Sales
Accounts
RSM
Marketing Asset Officer Coordinatio
n’s

Auto
ASM
Mechanics

MDO Drivers

SMO

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SWOT Analysis

The combined external and internal analysis is called the SWOT analysis because it’s an
analysis of the organization’s strength, weaknesses, opportunities, and threats. Based on
SWOT analysis, managers can identify a strategic niche that the organization might exploit

STRENGTH

Any activities the organization does well or any unique resources that it has. The coca cola
company has the following strengths which make their company leader in the market.

 Quality:
The main strength of the coca cola company is quality. They give great emphasis on
quality and they have no compromise on quality.
 Market share:
The market share of Coca Cola Company is 60% from international point of view, which
mean they are earning profit more than their competitors.
 Certified company:
The Coca Cola Company is certified from ISO 9001, 2000 and 14001.It also has an
environmental certificate.
 Employees turnover ratio:
The coca cola company has a strong market position and therefore their employee’s
turnover ratio is just 5%.
 Socially responsible:
The coca cola is a socially responsible company because they are fulfilling many acts
such as worker’s participation act 1968, worker’s compensation act and rules 1972.
 Achieving targets:

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The coca cola company is there where it want to be after one year. e.g. In Ramzan their
target was to sell four lac packs and they achieve it.
 Serving to local community:
The coca cola also serving to local community by making contribution in the construction
of school’s building.
 Training program:
The coca cola company has also developed a system of employees training. They trained
their employees with the changes of time or according to the requirement.
 Formal culture:
The coca cola company has a formal culture as well as a relaxed culture. So there is a
good friendly environment.
 Employees:
The coca cola company treats their employees as an asset. And provide them all the
facilities related to their job. The company also gives performance reward to their
employees.
 Mutually decision making:
The decision making process of coca cola company is downward. The top level
management shares their ideas through meetings and makes effective decisions.

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WEAKNESSES

Activities the organization does not do well or resources it needs but does not possess. The
main weaknesses of Coca Cola Company are following.

 Use of old technology:

Their quality is matching with international level coke but their technology is far behind
the international level. Therefore it is their big weakness that can affect their company’s
profit ratio and also their production level.
 High cost of production:
As the coca cola company is far behind in technology. Therefore their cost of production
is very high.
 Less provision of facilities to employees:
The coca cola company is providing a lot of facilities to employees inside their company
but they do not provide the facility of conveyance and residence to their employees.
 More dependent on suppliers:
All the required raw material is imported from abroad so they are totally dependent on
suppliers.
 Market price is uncontrollable:
There is a great conflict in market price of coca cola. Which is un controllable by the
management. So it is a big weakness of the coca cola company.
 No web site:
The coca cola beverages Pakistan limited have no web site but the international coca cola
has it own web site

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OPPORTUNITIES

Positive trends in external environmental factors. The opportunities of Coca Cola Company
are following:

 Development of team:
They want to make a human resource team which can focus on sales and marketing and
there should be no copy of their ideas because they want to lead in market.
 Big market:
There is a big market in Pakistan and want to capture that market. Their aim is to provide
coca cola in that place where there is no access of their competitors.

THREATS

Negative trends in external environmental factors. Threats which the coca cola company has
been facing are following.

 Legislation with government:

Their raw material is totally imported from England and some other countries. If
government increase imports duty, then it becomes a threat for them.
 Religious people:
In the past, some religious people become the threat for company by making wrong
abbreviation of company’s trade mark.
 Arrivals of new competitors:

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 With the introduction of new companies of drink like amrat cola, makkah cola and etc.
the sales, market share and profit of the coca cola company reduces. It become a great
threat for them.
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 Legislation with employees:

Sometimes legislation with employees becomes a great threat for company. If this
internal matter of the company spread and catches by media then it becomes difficult to
control.
 Tin pack:
Although tin pack is available in market but it is not produce by coca cola Company in
Pakistan. It is imported by any person and earns profit rather than company, by using the
name of company.

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 CCBPL
SUMMERIZED INCOME STATEMENT
VERTICAL ANALYSIS
(000)

Description 2009 2008

Sales 100% 100%
Cost of Sales 62.46 61.21
Gross Profit 37.54 38.70
Distribution Cost 19.76 18.16
Administration Cost 4.92 5.77
Other Operating Expenses 1.09 1.44

Other Operating Income 0.97 1.06

12.72 14.52
Profit on sale of Discounted …………. ………..
Operation
Destructing Cost 0.52 ………….
Profit from Operation 12.20 14.48
Finance Cost net 0.30 0.43
Profit before Taxation 11.90 14.04
Taxation 4.06 4.98
Profit after Taxation 7.83 9.06
Earning per Share-Basic & Diluted 124 120

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 CCBPL
SUMMARIZED BALANCE SHEET
VERTICAL ANALYSIS
(000)

Assets 2009 2008

Property plant & Equipment 33.24 30.33
Intangibles 0.26 0.377
Long-term investment 1.5233 1.6395
Long-term Loan 1.4995 1.6635
Long term Deposit & Prepayment 0.394 0.853
Deferred Cost …………. …………
Deferred Tax …………. …………
Raiment Benefit obligation 5.79 5.943
Prepayment
Total Non Current Assets 42.6761 40.8079
Stores and Spares 3.20 2.1388
Stock in trade 33.54 31.081
Trade Debts 2.72 1.8146
Loans and Advances 2.71 2.659
Accrued Interest mark up 0.072 0.2039
Trade deposit and short term pre 1.58 1.8010
payment
Other receivables 1.50 5.5241
Tax refund due from Government 2.987 6.6129
Deferred Cost ………… …………
Cash and Bank Balance 9.11 7.3569
Total Current Assets 57.324 59.192
Total Assets 100% 100%

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Equity and Liabilities 2009 2008
Share Capital 10.41 11.539
Reserves 18.05 20.29
Total 28.464 31.811
Surplus on revaluation of fix 0.23 0.27
Assets
Payable to suppliers ……….. 0.1406
Liabilities against Assets subject to 0.222 0.346
finance leases
Deferred Tax 3.166 3.867
Retirement Benefit Obligation 2.01 2.010
Total non Current Liabilities 5.04 6.362
Trade & other payables 62.01 60.330
Accrued Interest Markup 0.030 0.075
Long term finance ………… ………….
Liabilities against assets subject to 0.264 0.074
Lease
Short term Borrowings 0.003 1.079
Taxation provision less payment 1.88 ………….
Provisions 1.711 …………….
Total Current Liabilities 65.89 61.56
Total Liabilities 71.305 67.921
Total Equity and Liabilities 100% 100%

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 CCBPL
SUMMERIZED INCOME STATEMENT
HORIZENTAL ANALYSIS
(000)
Description 2009 2008

Sales 97.74 100%

Cost of Sales (89.32) 100%
Gross Profit 115.94 100%

Distribution Cost (127.17) 100%

Administration Cost (119.44) 100%
Other Operating Expenses (70.69) 100%

Other Operating Income 89.16 100%

……………. 100%
Profit on sale of Discounted Operation ……………. 100%
restricting Cost …………. 100%
Profit from Operation 99.59 100%
Finance Cost net (125.40) 100%
Profit before Taxation 99.07 100%
Taxation (92.59) 100%
Profit after Taxation 102.81 100%
Earning per Share-Basic & Diluted 124 100%

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 CCBPL
SUMMARIZED BALANCE SHEET
HORIZENTAL ANALYSIS
(000)
Assets 2009 2008
Property plant & Equipment 121.35 100%
Intangibles ………… 100%
Long-term investment 100 100%
Long-term Loan 110.14 100%
Long term Deposit & Prepayment 26.07 100%
Deferred Cost ………. 100%
Deferred Tax ……….. 100%
Raiment Benefit obligation Prepayment 239.01 100%
Total Non Current Assets 140.763 100%
Stores and Spares 141.76 100%
Stock in trade 110.23 100%
Trade Debts 145.6 100%
Loans and Advances 156.02 100%
Accrued Interest mark up 415.02 100%
Trade deposit and short term pre payment 120.36 100%
Other receivables 142.25 100%
Tax refund due from Government 125.36 100%
Deferred Cost ……….. 100%
Cash and Bank Balance 60.25 100%
Total Current Assets 98.56 100%
Total Assets 105.36 100%

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Equity and Liabilities 2009 2008
Share Capital 110.25 100%
Reserves 95.36 100%
Total 88.25 100%
Surplus on revaluation of fix Assets 99.02 100%
Payable to suppliers ………… 100%
Liabilities against Assets subject to finance leases 145.25 100%
Deferred Tax ……….. 100%
Retirement Benefit Obligation 165.25 100%
Total non Current Liabilities 125.12 100%
Trade & other payables 135.26 100%
Accrued Interest Markup 260.25 100%
Long term finance ……….. 100%
Liabilities against assets subject to Lease 156.25 100%
Short term Borrowings 45.02 100%
Taxation provision less payment ………… 100%
Provisions ………… 100%
Total Current Liabilities 85.25 100%
Total Liabilities 78.25 100%
Total Equity and Liabilities 98.57 100%

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 Ratios Analysis

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Liquidity ratio:
• Current ratio.
• Quick ratio/Acid test ratio.

Current ratio:

The ratio is mainly used to give an idea of the company's ability to pay
back its short-term liabilities (debt and payables) with its short-term assets (cash,
inventory, receivables). The higher the current ratio, the more capable the company is
of paying its obligations. A ratio under 1 suggests that the company would be unable to
pay off its obligations if they came due at that point. While this shows the company is
not in good financial health, it does not necessarily mean that it will go bankrupt - as
there are many ways to access financing - but it is definitely not a good sign.

The current ratio can give a sense of the efficiency of a company's

operating cycle or its ability to turn its product into cash. Companies that have trouble
getting paid on their receivables or have long inventory turnover can run into liquidity
problems because they are unable to alleviate their obligations. Because business
operations differ in each industry, it is always more useful to compare companies
within the same industry.

2008
Current ratio = Current assets / Current liabilities
= 12176 / 12988
= 0.9374
2009
Current ratio = Current assets / Current liabilities
= 17551 / 13721
= 1.2791

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Interpretation:

In 2008 the ratio was below 1 which is not good but it was due to the business
environment. In last few years including 2008 there was depression in economy through-out
the world it can also because of it.
In 2009 it was above 1 which is a good sign and it shows good business
condition of the firm. In that year economic conditions were also good through-out the world.

Years Ratio
Current ratio
1.4
1.2
1
2008 0.9374
0.8
Ratio
0.6
0.4
0.2 Ratios
0 2009 1.2791
2008 2009
Years

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Quick Ratio:

In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a
company to use its near cash or quick assets to extinguish or retire its current liabilities
immediately. Quick assets include those current assets that presumably can be quickly
converted to cash at close to their book values. A company with a Quick Ratio of less than 1
can not currently pay back its current liabilities.

Note that Inventory is excluded from the sum of assets financially. Ratios are financially
viable option for business entities but the liquidity of the liabilities show financial stability.
Generally, the acid test ratio should be 1:1 or higher; however this varies widely by industry.
In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to
meet current obligations using liquid assets).

Notice that very often Acid test refers instead of Quick ratio to Cash ratio:

There is also another Quick Ratio which is widely used and computed as below

• Total Liabilities excludes Share Capital and Retained Earnings

2008
Current ratio = Current assets - Inventory/ Current liabilities
= 12176 – 2187 / 12988
= 9989 / 12988
= 0.76909
2009
Current ratio = Current assets - Inventory/ Current liabilities
= 17551 - 2354 / 13721
= 15197 / 13721
= 1.1075
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 Quick ratio
1.2

1
Years Ratio
0.8

Ratio 0.6
Ratios 2008 0.76909
0.4

0.2
2009 1.1075
0
2008 2009
Years Interpretation:
The quick
ratio of the company in 2008
was less than 1 which is a bad sign for the company. In 2009 the ratio was 1.1075 which is
the good sign for the company. This attracts its customers because it shows the good
condition of the company.

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Activity ratios:
Activity ratios measure company sales per another asset account—the most
common asset accounts used are accounts receivable, inventory, and total assets. Activity
ratios measure the efficiency of the company in using its resources. Since most companies
invest heavily in accounts receivable or inventory, these accounts are used in the denominator
of the most popular activity ratios.
The ratios are:
• Inventory turn over.
• Average collection period.
• Average payment period.
• Total asset turnover.

Inventory turn over:

In accounting, the Inventory turnover is a measure of the number of
times inventory is sold or used in a time period such as a year. The equation for inventory
turnover equals the cost of goods sold divided by the inventory. Inventory turnover is also
known as inventory turns, stock turns, turns, and stock turnover.

Inventory turn over = cost of goods sold / Inventory

2008:
Inventory turnover = Cost of goods sold / Inventory
= 11374 / 2187
= 5.2007
2009
Inventory turnover = Cost of goods sold / Inventory
= 11088 / 2354
= 4.7103

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 Inventory turnover ratio

5.3
5.2 Years Ratio
5.1
5
4.9 2008 5.2007
Ratio
4.8
4.7 Ratios Interpretation:
4.6
4.5 The result 2009 4.7103
4.4
2008 2009 of the ratio tells
Years that in the year 2008 the sale of the company
was good in comparison with the year 2009.
There can be several reasons of it but the main reason which is falling here is that
……………………………….

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Average Collection Period:

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 Total accounts receivable includes all outstanding credit
obligations from customers. The sales figure includes sales for the prior four quarters of
financial performance. The figure may also include amounts on a quarterly basis only. The
accounts receivable period is a measure of a company’s ability to collect accounts receivable
within a timely and reasonable period. The accounts collection period varies from industry to
industry. The smaller the accounts receivable period, the more effectively a company is in
managing and collecting money from customers.

Average collection period = Account receivable / Average sales per day

= Account receivable / Annual Sales / 360

2008
Average collection period = Account receivable / Annual Sales / 360
= 3035 / 31944 / 360
= 3035 / 88.7333
= 34.2036
2009
Average collection period = Account receivable / Annual Sales / 360
= 3707 / 30990 / 360
= 3707 / 86.0833
= 43.0629

Average collection period ratio

Years Ratio

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2008 34.2036
40
30
Ratio
20 2009 43.0629
Ratios
10
0
2008 2009
Years

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Interpretation:

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 The ratio result in 2008 is less than the result in 2009. in 2008 there was
depression through-out the world so because of that the business of the company was down
but in 2009 when the conditions were good company did good business and still than there
was gap of 10 in between the ratios. We can say that the condition of the company was not
good in 2008 but as the business started in routine it came back to the good condition.

Total Asset Turnover:

The total asset turnover ratio measures the ability of a company to use
its assets to generate sales. The total asset turnover ratio considers all assets including fixed
assets, like plant and equipment, as well as inventory and accounts receivable.
The lower the total asset turnover ratio, as compared to historical data for the firm and
industry data, the more sluggish the firm's sales. This may indicate a problem with one or
more of the asset categories composing total assets - inventory, receivables, or fixed assets.
The small business owner should analyze the various asset classes to determine where the
problem lies.

Total Asset Turnover = Sales / Total Assets

2008
Total Asset Turnover = Sales / Total Assets
= 31944 / 40519
= 0.7883
2009
Total Asset Turnover = Sales / Total Assets
= 30990 / 48671
= 0.6367

Total asset urnover ratio

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0.7
0.6
0.5
Ratio 0.4
0.3 Ratios
0.2
0.1
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2008 2009
Years
 Years Ratio

2008 0.7883

2009 0.6367

Interpretation:
The total asset turnover ratio is better in the year 2008 as compare wit the
ratio in 2009. This means that company utilized its assets better in 2008 than 2009, there
could be some other reason of it. One of those is that in 2009 the company was taken over by
the Turkish company. This was the major problem for the staff of Coca Cola there was a
professional threat in the organization. This was the main cause that the employees were not
able to work with there full capacity.

Debt Ratios:
Use of borrowed money to increase production volume, and thus sales and
earnings. It is measured as the ratio of total debt to total assets; greater the amount of debt,
greater the financial leverage. Since interest is a fixed cost (which can be written off against
the firm's revenue) a loan allows a firm to generate more earnings without a corresponding
increase in the equity capital requiring increased dividend payments (which cannot be written
off against the earnings). However, while high leverage may be beneficial in boom periods, it
may cause serious cash flow problems in recessionary periods because there might not be
enough sales revenue to cover the interest payments.

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Debt-to-equity Ratio = Total Debt / Shareholder’s equity

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2008
Debt-to-equity ratio = 2781 / 880
= 3.1602
2009
Debt-to-equity ratio = 5059 / 880
= 5.7488

Debt-toequity ratio

6 Years Ratio
5
4 2008 3.1602
Ratio 3
2 Ratios 2009 5.7488
1
0
2008 2009
Years

Interpretation:
In 2008 the ratio is less than 2009 because it was the end of recessionary
period but it increased in 2009 which is a good sign for the company that it is doing good
business. 2009 was the New Year after the recessionary period and it is the good thing for the
company that it started good business just after the recessionary period.

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Debt-to-total-asset ratio:

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 A metric used to measure a company's financial risk by determining
how much of the company's assets have been financed by debt. Calculated by adding short-
term and long-term debt and then dividing by the company's total assets.

Total liabilities divided by total assets. The debt/asset ratio shows the proportion of a
company's assets which are financed through debt. If the ratio is less than 0.5, most of the
company's assets are financed through equity. If the ratio is greater than 0.5, most of the
company's assets are financed through debt. Companies with high debt/asset ratios are said to
be "highly leveraged," not highly liquid as stated above. A company with a high debt ratio
(highly leveraged) could be in danger if creditors start to demand repayment of debt.
2008
Debt-to-total asset = total debt / total assets
= 6066 + 2781 /40519
= 8847 / 40519
= 0.2183
2009
Debt-to-total asset = total debt / total assets
= 6749 + 5059 / 48671
= 11808 / 48671
= 0.2426
Interpretation:
The result of the ratios tells that the company is in good financial condition
that it has its ratio less than 0.5 in both the years and as mentioned above it is good sign for
the company.

Debt-to-total-assets ratio Internship Report

0.245
0.24
0.235
0.23
ratios 0.225
0.22
ratios
0.215
0.21
0.205
2008 2009 79
years
 Years Ratio
Interest coverage ratio:
A ratio used to determine how easily a 2008 0.2183
company can pay interest on outstanding debt. The interest
2009 0.2426
coverage ratio is calculated by dividing a company's
earnings before interest and taxes (EBIT) of one period by
the company's interest expenses of the same period:

The lower the ratio, the more the company is burdened by debt expense. When a company's
interest coverage ratio is 1.5 or lower, its ability to meet interest expenses may be
questionable. An interest coverage ratio below 1 indicates the company is not generating
sufficient revenues to satisfy interest expenses.
2008
Interest coverage ratio = EBIT / Interest expense
= 8779 / 438
= 20.0433
2009
Interest coverage ratio = EBIT / Interest expense
= 8480 / 355
= 23.8873
Internship Report

Interpretation:
Result of the ratio shows that the company is commencing good business and
it is earning a lot from the debt which it had taken. As mentioned above it ratios results show
good condition of it. These results also tell that it not even able to pay the interest but also
enjoying a lot of profit from that loan.

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Internship Report

RECOMMENDATIONS

• Coca-Cola should improve its customer services to avoid complaints of the retailers.
• Coca-Cola should further reduce its prices to capture more market share.
• They should further improve its distribution in order to provide more efficient
services.

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 • Due to the extensive competition in the industry Coca-Cola has to enhance its training
programs in order to make their employees more proficient and competent.
• They should call in at different universities and offer jobs there for students to give
them employment in the organization. They can post their job advertisements on
university bulletin boards and also ask the fresh graduates for walk in interviews.
• They should give more incentive to there employees to make them motivated, as some
employees turnover rate is alarming.
• The Human Resource department needs to be improved as they have a major problem
that is low job performance. As I have been interacting with them and they were very
slow in responding.
• There should be workshops on employee responsibility as many expenses are incurred
due to the irresponsible attitude of workers i.e. Bottle Breakage.
• They should allocate more budget for marketing promotions as I have not seen
marketing campaigns initiated by Coca-Cola. This would help in gaining the
consideration box of the consumer.
• There is a lot of work load on workers and additionally work timings are so grinding.
They need to give compensation for that to employees in order to get the employee
satisfaction.
These recommendations can be very helpful for the company to gain more market share and
increase its customer’s inventory. When they eradicate, eliminate and exterminate the
weaknesses they would be able to grab not only the mind share and heart share but they
would snatch the market share from Pepsi.

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CONCLUSION

Last but not the least; I have learnt millions of things which can’t be explained in this short
report for instance: how to handle difficult and crucial situations, time management, how to
talk to different people including other employees and customers, how to utilize my potential

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in the best possible manner, and how all the managers’ work, what are the role expectations
among them.

I had learned about the corporate environment and how the work is performed in an
Organization. I had also learned about the level of competitiveness that one should create in
itself in order to be successful and be able to prove oneself.

During my stay at Coca-Cola I deeply observed the life style, behavior, and communication
skills of the staff. This internship has helped me in linking what I have studied in my courses
to the actual working which occurs in the corporate world.

Internship Report

References

• www.thecoca-colacompany.com/.../historybottling.html - Cached - Similar

• www.thecoca-colacompany.com/investors/stockhistory.html - Cached - Similar

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 • www.scribd.com › Presentations › Business & Law - Cached - Similar
• en.wikipedia.org/wiki/Coca-Cola - Cached - Similar
• heritage.coca-cola.com/ - Cached - Similar
• Google.com
• Answer.com
• http://www.slideshare.net/Anamika_Tarafdar/cocacola-summer-internship-report

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