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The dynamic role of management functions in Coca-Cola Beverage Limited planning &organizing process has been highly emphasized. This department has been identified asthe means through which the rapid industrialization and other developmental goals of theorganization can be achieved. This report explores the role of recruitment & selection process of the organization. This report provides a defined role of other department s inthis process, role played by Head Office in this process, internal & external support of d i f f e r e n t d e p a r t m e n t s i n t h i s p r o c e s s . T h e f i n d i n g s a b o u t C o c a C o l a s s t r e n g t h s , weekness, opportunity and strengths.
PART 1: 1: INTRODUCTION
The focus of this report is basically to analyze the different management functions atC o c a c o l a b e v e r a g e s P a k i s t a n l i m i t e d K a r a c h i . T h e s e f u n c t i o n s i n c l u d e p l a n n i n g , orga nizing, leading and controlling.
1.1: HISTORY
International:
Coca-Cola laid the foundation of the beverage industry when it was formed in May 1886in Atlanta. However it was not until 1895 that the idea of selling coke in bottles was introduced. With the passage of time Coca-Cola gained popularity and its product beganto get recognized internationally. Thus from its mere beginning in 1886 Coca-Cola hasn o w b e e n t r a n s f o r m e d i n t o a s t r o n g m u l t i n a t i o n a l w i t h i t s p r o d u c t b e i n g c u r r e n t l yr ecognized all over the world. Coca -Cola, in fact, has now become one of the m o s t famous and widely consumed brands in the world. It has not only established its footingsin the beverage industry but is currently heading the list of the most financially sound companies in the world.
Pakistan:
Although Coca-Cola is not a new name for the local market, CocaC o l a B e v e r a g e s Pakistan Limited (CCBPL) began its operations on 26 May 1996 in Pakistan. CocaColaBeverages Private LTD (CCBPL) is a joint venture between Coca -Cola International,Fraser and Neeves Singapore and Package Ltd. Initially it acquired National Beverages LTD Karachi and later acquired International Beverages LTD Hyderabad .In May 1996Fraser and Neeves, a Singapore based bottler of Coke, bought off the local bottlers inKarachi. Not long after it went on to acquire the bottling plants in Hyderabad as well.Since then coke has made an i mpressive impact on the local market by increasing its availability as well as its volume share. CCBPL has decided to expand its operations inP a k i s t a n b y b u y i n g o t h e r b o t t l e r s a l l o v e r P a k i s t a n . I m p l e m e n t i n g t h e i r p l a n s o f acquisitions of other plants they have recently acquired all the plants in Pakistan as theyare inclined to give more attention to increase the market share in Pakistani market..
1.2: PRODUCTS
Coca cola Beverages Pakistan has a very narrow product range. It has the following brands in Pakistan. Coca Cola Sprite Fanta
These products are sold in the market in different sizes of bottles. These sizes a r e available for all its products. 250ml 250 ml (Non Returnable) 300ml 1 liter 1.5 liter pet THE SLOGAN:
2: PLANNING
Without a strategy the organization is like a ship without A rudder, going around in circles. Its like a tramp that Has no place to go to ( Joel Ross and Michael Kami )
AN OVERVIEW
: Strategic planning, formulation and implementation are core management functions.A l t h o u g h s t r a t e g i c m a n a g e m e n t h a s b e e n i n e x i s t e n c e f o r o n l y a f e w y e a r s i t s implications have been firmly and strongly rooted in organizations that want to stand ingood stead. Among all the varied things that managers have to deal with and act upon,few affect an organizations performance more lastingly than do the task of charting anorganizations future course, figuring out the what strategic moves and approaches to undertake, and then orchestrating execution of the chosen strategy as close to perfectiona s i s m a n a g e r i a l l y p o s s i b l e . O n e o f t h e b i g g e s t f a c t o r s i n d e t e r m i n i n g w h e t h e r t h e organization performs up to its potential or not is the extent to which the management team performs, the strategy making and strategic implementing functions. Indeed, Good strategy and good implementation are the most trustworthy Proof of good management A strategic plan, then, is the bridge to the future, which an organization uses to lead fromwhat it is to what it envisions it can become.
2.1: ENVIRONMENT
The environmental factors affecting Coca Cola can be divided into:
To satisfy the customer through extra ordinary se rvice and an excellent servicealong with the complete tactical and operational support.
Operational goals are decided by the top management in consultation with thelower level employees. They are following the concept of management by objectives 6
(MBO). Each employee is assigned its goals and is told what is expected of him and thenh e i s e v a l u a t e d o n t h e b a s i s o f c e r t a i n r u l e s a n d r e g u l a t i o n s f o l l o w e d e v e n l y b y t h e company.F o r example: a sales man is given following tasks, duties and certain targets: E a c h salesman has to oversee around 100-125 outlets. The frequency of visits to each outletdepends upon the sales of that particular outlet. Normally, a salesman has to visit a singleoutlet thrice a week i.e. every alternate day. This means that a salesman visits at least 20-30 outlets per day.The salesman has three basic functions to perform.
To bring back the discontinued accounts. Each salesman has to bring in at least three new accounts every month. These may either be new customers or the reactivation of the discontinued accounts.Sales manager is made responsible for the performance and achievement of operationalgoals and is assigned to set certain milestones for the salesman so as to give him proper f e e d b a c k , w h i c h d e f i n i t e l y h e l p s t h e s a l e s m a n a c h i e v e m e n t o f t h e a b o v e m e n t i o n e d goals.
2.3:
DECISION-MAKING
Competing in the market place is like a war. You have Injuries and casualties, and the best strategy win (John Collins) The decision-making process in CCBPL is centralized. The model used is classical,whereby the top management takes their time while making decisions and explore and evaluate all the possible alternatives before choosing the rationally economic and feasiblesolution.Programmed decisions are made only by the top management with no consultation whatso ever with the line managers while the daily and routine decisions are made by the linemanagers at the middle level with the prior permission or approval from the generalmanager.Decisions, which are normally taken at the top management, are related to
Trade discounts
Advertisements
Price reductions
DistributionWhile recruiting new employees, the top management approves the vacanciesand asks the Human Capital Department to conduct the written test and this test normallyis conducted for the employees at the lower level. Then prospective applicants are shortl i s t e d t h r o u g h t h e i n t e r v i e w p r o c e s s . T h e n t h e B u s i n e s s a n d o p e r a t i o n s m a n a g e r o r general manager personally interviews the employees and then makes the final decisionabout the selection himself.Hence, the style of decision-making followed by the CCBPL model is AII. That is,the decisions are
made on the basis of the inputs provided by the lower level employeesa n d t h e m a n a g e r s a t t h e m i d d l e m a n a g e m e n t l e v e l . T o p m a n a g e m e n t a s k s f o r t h e suggestions and ideas of his subordinates and then takes the final decision himself.However, the remaining decisions, which are mainly related to the dailyoperations, are made by the respective managers who are eventually made responsible for the results.The management is very much cooperative and encourage its employees to come up withn e w i d e a s r e l a t e d t o t h e i r d u t i e s a n d t h e w o r k t h e y d o s o a s t o i n c r e a s e t h e o v e r a l l efficiency of the organization and eventually increasing the profits.
3: ORGANIZING
Analysis of the organizations structure3.1: DEPARTMENTALISATION:
CCBPL is divided into different departments on the basis of functional approach. People are grouped together on the basis of common skills and work activities.This approach helps company in achieving the economies of scale through high qualityof problem solving and lesser needs of the training of the employees. CCBPL is headed by the General Manager. There are five departments at CCBPL namely, Production, Industrial Relations, Sales and Marketing, Human Capital,and Finance and Accounting.
Production Department is responsible for the overall production of theCCBPL. There are 8 plants of CCBPL operating throughout the country.Different areas are distributed the products on the basis of nearness so as toreduce the transportation cost. 8
Industrial Relations Department i s r e s p o n s i b l e f o r d e a l i n g w i t h t h e problems related to the working environment of the employees and theissues related to the labor unions.
Sales and Marketing Department i s r e s p o n s i b l e f o r t h e m a k i n g t h e product available in the market and to deal with the issues related to theadvertisements of the products.
Human Capital Department is responsible for looking for the efficient pool of workers, selecting the professionals and makes them happy so thatthey should stick to the company. The Human Capital department dealswith management level employees grievances.
Finance Department deals with the overall costing and pricing of t h e p r o d u c t s . T h i s a l s o h a n d l e s t h e i m p o r t r e l a t e d i s s u e s o f t h e c o m p a n y. Accounting department assists the sales department in making invoices and payroll entries.
serves as an effective control mechanism. The employees have a lot of authority, responsibility and information relative to thework that they are doing. However, all the information and authority relative to the work is provided by their respective managers.The procedure is same in the other departments as well.
:
There is a high degree of delegation and delegation is done with proper authoritya n d r e s p o n s i b i l i t y . E a c h m a n a g e r i s a l s o m a d e a c c o u n t a b l e f o r t h e a c t i o n s o f h i s subordinates. Proper instructions and guidance is given at time to time to achieve theobjectives by the respective managers.A p a r t f r o m t h e d e l e g a t i n g e v e r y m a n a g e r i s r e s p o n s i b l e f o r motivating his juniors so as to increase the effectiveness and efficiency of thee m p l o ye e s . H u m a n C a p i t a l d e p a r t m e n t a l s o h e l p s e m p l o ye e s r e a l i z e t h e i r potential and motivate them through different methods. They make sure that theygive the best in return to their managers. This increases their performance, the quality of their work, and customer satisfaction.
All the vacancies are first internally advertised so that all the employees who fulfillthe requirements can avail this opportunity. If there arent any suitable persons for a particular job then human resource department search its data bank and if there is nosuitable person then at last it is advertised in the newspaper but it is rarely the ca se atcoca Cola for the sales man.Selection is based on different criterion for different positions. Education requirements a r e t h e f i r s t a n d t h e m o s t i m p o r t a n t a n d a r e t h e f i r s t p a r t o f t h e s c r e e n i n g o f t h e personnel.After the screening stage, applicant is called for the aptitude test. For a salesman jobs i m p l e a r i t h m e t i c a n d g e n e r a l k n o w l e d g e i s t e s t e d . K n o w h o w o f E n g l i s h i s a l s o necessary in some cases.After passing the aptitude test applicant is asked to appear for an interview. Thisinterview is normally c arried out by the sales and human resource department. Purpose of this interview is to confirm the data and claims, which the applicant has produced andmade.If the applicant is selected, he is asked for four sureties or any other references, whichhe can make and sometimes, human resource department also like to confirm from their ExEmployers about the conduct and the reason for leaving of the applicant.
3.8: TRAINING:
At Coca cola on the job training is given the utmost importance. At first a sales manis given information about the product, sales environment and company policies and procedures. Ethical behavior is emphasized most so as not to create any sort of bad habitswhich can cause great problems for the company. Normally a new sales man is supposedto work under another salesman to learn the basics of selling techniques and the overallenvironment in which he will be working.A salesman is then allowed to work under the salesman but he is asked to performall the operations by his own. These include fill ing out the route card, dealing with thecustomers, communicating with to loader, cash management, setting the visi cooler andthe next days order to be loaded. After doing this entire if has any problems in learningthen he is guided by salesman, market developer, and sales manager if required.Apart from this on the job training, the company also has some in-house trainingfacilities. The company has a sales hall in which all the sales personnel are given sometips regarding the changes in the selling environment and how to improve efficiency andefficacy. These tips are normally given by the general manager.Coca Cola also arranges some type of seminars, work shops and modules related tot h e s a l e s m a n a g e m e n t , F o r e c a s t i n g o f t h e d a i l y s a l e s , m e r c h a n d i s i n g , s e l l i n g s k i l l s , s upervisory techniques and other areas related to the sales. C o c a C o l a d o e s n o t h a v e a n y l i b r a r y a n d s p e c i a l t r a i n e r s b u t t h e y d o h a v e t h e separate space for the training and they also use some sort of videos to elaborate and show the examples of effective selling skills and techniques.To maintain the professional employees company has a policy of promotion fromwithin. Promotions are based on the performance, which is measured very objectively.Apart from this the company pays its employees more than the industry wages. Not onlythe wages and salary but different other benefits are also given to employees to motivateand retain them in the organization. The company also has an effective incentive plan.
4: LEADING
4.1: LEADERSHIP STYLE:
The general manager of the company is at the topmost position in the organizationalhierarchy; Even though he is not directly involved in its operations he is responsible for taking major administrative decisions regarding the company policy and Operations. Departmental managers are responsible for leading and directing their subordinates.These leaders focus on these areas:
I n c r e a s i n g b u s i n e s s w i t h a c o o r d i n a t e d a p p r o a c h b y h e l p i n g e a c h o t h e r i n i t s operations.
E n c o u r a g i n g t h e e m p l o ye e s t o g i v e n e w i d e a s s o a s t o i n c r e a s e t h e c u s t o m e r satisfaction.As there is a very high degree of delegation and participation so they believe that theleadership style used in all the departments of CCBPL is democratic. The concept of team management is only practiced in the sales and marketing department as they have towork in dependence of one another. Subordinates are given a fair treatment and are dealtin a very good manner so as to give them a feeling that you are not only an employee butalso a member of the family.The managers at CCBPL are very supportive as they use teams and treat subordinatesas equals, and have a highly open communication system. They are participative sincethey encourage the involvement of the employees in decision -making and make use of group discussions. However, some monetary and non -monetary rewards are used tocreate a high involvement from the employees especially at the lower level.
4.2: MOTIVATION:
Employee motivation is given a very high consideration at CCBPL. At CCBPL theyh a v e t h e p o l i c y o f p r o m o t i o n f r o m w i t h i n p o l i c y. P r o m o t i o n s a r e b e s t o w e d o n t h e p e r f o r m a n c e b a s i s . T h i s p e r f o r m a n c e b a s e m o t i v a t e s e m p l o ye e s t o w o r k h a r d a n d achieve the goals, which are very objective and are perceived achievable by most of theemployees.Apart from this compensation plan is also a motivating factor as CCBPL is payingmore than the industry averages. Not only this different campaigns and competitions between the employees itself are also used to motivate the employees.Managers play a vital role in motivating employees as they give them the timelyfeedback about their activities. They also help them solve different problems, which can be job related or
personal problems. Working environment and a challenging milestoneare a major factor in employee motivation at CCBPL.
4.3: COMMUNICATION:
There is open environment in CCBPL, which discourages barriers among the members sharing information. The top management consults lower ranks before decidingo n t h e p o l i c y m a t t e r s a n d t h e n t h e s e t h i n g s a r e c o m m u n i c a t e d d o w n w a r d s . E v e r y employee is allowed to see the general manager at any time if he has any problem. Inter departmental communication is done through formal and informal manners. Grapevine isalso used to get the feedback about the employees views about the management.
5: CONTROLLING
Control is done through the evaluation, which is based on the very objective basis.Certain criteria are fixed in advance and if these criteria are not met then the employeesare asked and evaluated for the reasons and corrective actions are taken by the respectivem a n a g e r s . D i f f e r e n t d e p a r t m e n t s h a v e d i f f e r e n t c r i t e r i a a n d d i f f e r e n t r e p o r t i n g a n d controlling systems. The reporting, evaluation and control system of sales departments isfollows:
6: SWOT ANALYSIS
STRENGTHS
:
It is rated as the worlds number one cold drink and is famed for its internationallywell-known brand name Coca-Cola.
:
The regular supply of the products is strength of the company. The products are regularly supplied to the dealers through proficient means of delivering and distributionh a s g i v e n C o c a - C o l a P a k i s t a n a n a d d e d a d v a n t a g e . C o k e t r u c k s s u p p l y t h e p r o d u c t s regularly and always have the desired products for the dealers.
:
Its marketing strategy is very aggressive which aids it in further and incessant production and distribution of its products. It gives trade offers to its dealers for storingmore and more coke products and the signage strategies and agglomeration of all themarketing strategies proves that it has a very aggressive marketing strategy. This will help Coca-Cola Pakistan in strengthening its integrity in the market.
:
O n e o f t h e m a j o r w e a k n e s s e s a s i n m a j o r i t y o f c o m p a n i e s i s t h e l a c k o f c o - ordination between the management and the worker. In short there is a weak point intheir Human Resource management. Workers feel that they are being exploited and arenot given the remuneration that they deserve. The management fault is that they think that the worker is indefatigable and can work tirelessly. The tough schedule results intolimited rest for them and there are no holidays.
:
The employees lack motivation simply because of the huge communication gap between them and the management. Thus grievances reign high for they feel that their problems and recommendations are not being aired the top management. The workers expect to be adequately satisfied in terms of their salary and compensations.
:
The product is not available to the extent that it should be. If Coca-Cola wants tom a k e a n i m p a c t i n t h e m a r k e t t h e y w i l l h a v e t o d o m o r e t h a n t h e y a r e d o i n g a t t h e present moment.
:
The huge amount paper work takes a lot of time, which could be effectively channeled to other important activities. The salesmen have to do a lot of clerical work i.e.he has to fill a lot of forms (call slips, route riding forms, cash memos, clearing bills etc.)at the shops and also after arriving back at the factory. At the same time the managementalso complains that the paper work leads to a lot of pilferage by the employees. All suchactivities cause an overall great reduction in productivity.
:
In the factory there is a co-ordination lag between the activities of the marketing,sales and repairing departments. The sales department complains that the marketingd e p a r t m e n t d o e s n o t p a y a n y h e e d t o t h e i r p r o b l e m s . T h e s a l e s d e p a r t m e n t a l s o complains that the repair of the visionless is always delayed. Until or unless CocaColarestructures its co-coordinating activities the availability of its product would be alwaysdelayed.
In areas such as Liaqatabad, New Karachi, Glimmer etc Fake beverages by the nameo f c o k e a r e b e i n g s u p p l i e d b y u n k n o w n p e o p l e . S u c h a c t i v i t i e s r e a l l y h a m p e r t h e companys name and its brand originality. Above all the fake beverages supplied are almost similar to the taste of the original Coke brand and not everyone can decipher thedifference between the original and the fake product. This is in fact a great threat toCoca -Cola for unworthy people is taking advantage of its brand name and spoiling its good name in the market.
7: ANALYSIS
Coca Cola being the multinational and reputed organization apply all the good traits of planning, organizing, leading and controlling from top to bottom.When we look at the planning procedure of the Coca Cola it runs very smoothly in everydepartment. There is very well integrated effort of all the department of the organizationto organize and control an individual for a particular task Its forecasting plannin g system according to the company requirements in which eachdepartment has to justify the employees it required in the Annual Business Plan of the year. 19 The Head Office f the organization has complete check on the every function of theorganization.T a k i n g a b o u t o r g a n i z i n g a n d c o n t r o l l i n g a l l t h e w o r k d o n e b y t h e i r r e s p e c t i v e departments as the company is divided in different departments planning starts (strategic planning) from top authority and afterwards organizing and leading and controlling isdone as per the requirements of each and every department.
8: Recommendation
Coca cola is a multinational company and running their business successfully. Americanstook over the organization in 2000. They introduced many advantageous programs to theemployees which were very lucrative such as life insurance, health and safety insuranceand many other reward-giving policies. But there are some draw backs in thereorganization, these areCoca cola does not use advertisement media extensively as most of the jobs are filled byreferrals and unsolicited applications files. Unsolicited applications files are goodapproach but most of the people do not know about such methods. Coca cola does not hire fresh graduates at middle level management, this creates badimage of the organization. They should hire fresh graduates as it may give them new andfresh ideas.To some extend they include the lower management staff in decision mailing so their should beDe-centralized structures of planning to some extend.Their should be proper communication cycle from top to bottom employees so their should be no chance of miscommunication.And at the end their should be proper motivational practices should be implement toincrease the moral of employees so they work more efficiently.
9: Conclusion
This report gives complete briefing about all the planning process carried out in anorganizationWhen planning is completed how to carried out all the phase of organizing different tasksin different departments according to the requirements. This report gives completeinformation about the working of coca cola in market a complete overview of strengths,weakness, opportunities and threats.