Introduction to Project

Introduction to Project
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations Over the past few decades, governments, international institutions, transnational organizations, organized labor, and civil society have been engaged in an ongoing dialogue into the role of business as responsible stewards. Standards, procedures, and expectations for business are emerging worldwide. Enterprises and markets that are unaware of them, or fail to plan their futures with them in mind, will be unable to participate in the global dialogue and will risk being left behind as the global market economy expands. Businesses around the world are designing and implementing business ethics programs to address the legal, ethical, social responsibility, and environmental issues they face. By addressing these issues in a systematic way, enterprises can improve their own business performance, expand opportunities for growth, and contribute to the development of social capital in their markets. They can realize specific business benefits, such as: Enhanced reputations and good will Reduced risks and costs Protection from their own employees and agents Stronger competitive positions Expanded access to capital, credit, and foreign investment Increased profits Sustained long-term growth International respect for enterprises and emerging markets Enterprises that excel in these areas create a climate of excellence for their employees, shareholders, and communities, and contribute to the economic wellbeing of their countries. The objective of this project is to evaluate business ethics of Coca Cola .It includes: Introduction of company and products Evaluation ethical values Corporate culture Labor facilities

Corporate social responsibility Corporate citizenship Moral philosophies Adoption benefits

Effects of ethical values on: Profitability Growth Shareholders wealth Market share Dividend Earnings per share

The Coca Cola Company seems to pride itself on the ethical foundations of honesty and integrity. Coca Cola believes that these two ethical foundations are the cornerstone values of the Coca-Cola Company (Coca-Cola, 2004). The following from The Coca-Cola Company regarding their employees obligation to uphold the companys ethical standards, As company representatives, we all have the responsibility to act in every situation according to the highest standards of ethical conduct (Coca-Cola, 2004) Coca-Cola institutes that its employees are the representation of the ethical standards behind the product. Coca-Cola has had some challenges throughout its existence as a company (i.e. New Coke) and has felt the need to face each and every situation with Honesty and Integrity, believing that in order to remain valid and legit in the market place, a company must retain its ethical standards at all times.

Organization Profile

Type Industry Founded Headquarter Area Served Revenue Operating Income Net Income Total Income Total Equity Employees Websites

Public Beverage 1886 United States Whole World U$$ 35.119 billion U$$ 8.449 billion U$$ 11.809 billion U$$ 72.921 billion U$$ 31.317 billion 139,600 Official website

Organogram of Firm

MD

HR Manager

Marketing Manager

Finance Manager

Production Manager

Quality Manager

Admin Manager

Frontline Manager

Frontline Manager

Frontline Manager

Frontline Manager

Frontline Manager

Frontlinr Manager

Worker

Worker

Worker

Worker

Worker

Worker

Introduction to Organization

Introduction to Coca Cola

The Coca Cola Company is the Worlds largest beverage company. We operate in more than 200 countries and market a portfolio of more than 3500 beverages products including sparkling drinks and still beverages such as water, juices and juice drinks, teas, coffees, sports drinks and energy drinks. Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world. We now have more than 500 brands and sell 1.7 billion servings per day. We are growing our reach, strengthening our brands and advancing our global momentum, every moment of every day. The Coca-Cola Company exists to benefit and refresh everyone it touches. For them, Quality is more than just something they taste or see or measure. It shows in their every action. They relentlessly strive to exceed the world's ever-changing expectations because keeping their Quality promise in the marketplace is their highest business objective and their enduring obligation. Coca-Cola company serves has wide range of products ranging from energy drinks, juices, soft drinks, sports drinks, tea-coffee, water, to drinks for astronauts. Below is a detailed list of products that the company sells worldwide.

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.

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.

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

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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 didnt

Be the Brand
Inspire creativity, passion, optimism and fun

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Objective of Coca Cola

The company has sales based objective .Everything else (marketing plan, advertising plan, production etc.) is derived from this objective. Currently the companys objective is to Increase the volume of sales up to the maximum level as much as possible during the current fiscal year. The company sets its objective keeping in view the past performance, Historical trends, current market position, economic condition, macro environment and micro environment factors, social values, market size and growth rate ,future expectations and predictions

Goals of Coca Cola

All CCBPL plants setup their own goal to achieve the objective. The company goal is To increase sales volume and gain market leadership

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History of Coca Cola:

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for CocaCola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark CocaCola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys

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incorporation, Mr. Asa G. Candler announced in his annual report to share owners that Coca-Cola is now drunk in every state and territory in the United States. As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

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Coke History in Pakistan:

To provide Coca-Cola at arms length The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahim Yar Khan, Multan and Lahore. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and thats a very creative idea to get the attention of the customers.

Today

Today CCBPL is operated directly under the supervision of the Coca-Cola International based in Atlanta Georgia State___ USA .It owns 8 plants all around in Pakistan. Coca Cola Company offers the brand range as Coca Cola, Diet Coke, Fanta, Sprite, Sprite 0, Sprite 3G, Minute Maid, and Kinley water in Pakistan.

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Industry

Industry refers to the production of an economic good (either material or a service) within an economy. Coca Cola is beverage industry and producing drinking items within an economy with cheap and quality products. Coca Cola is an international based Industry and it is being enhancing the economy by producing a big amount of profit.

Market Share

As a whole: Coca Cola share 60 % in whole world. Pepsi share 30% in whole world Other product share 10 % in whole world.

In Pakistan: Coca Cola share 36 % in Pakistan Pepsi share 54 % in Pakistan Other product share 10 % in Pakistan.

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Departments

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Departments

Every organization is made up of different departments, each of these departments help Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts of departments are huge. Each country has their own Head Office and departments. Coca Cola is geographically split into five geographic operating segments, also known as strategic business units (SBU's). The six SBU's are North America, Africa, Asia, Europe, Middle East and finally Latin America. If all departments perform in the correct way then that will continue the success of Coca Cola. There are 6 functional departments within Coca Cola, these are: Marketing Finance Packaging Sales Research and development Administration Marketing Department The Coca Cola marketing department develops core strategies for company brands to ensure that all communication is consistent in every market. With this cohesive effort, the CocaCola system maximizes its resources for market leadership and profitable growth. The marketing departments are responsible for marketing the products and advertising the products and promoting the products. If all these departments perform their duty firmly then the objectives of The Coca-Cola Company will meets. Finance Department The finance department of the Coca Cola Company is responsible for financial record keeping. This involves keeping records of money received and paid out. The financial records will be used to produce the annual reports for the shareholders so that they can see the company performance. The Finance department is also responsible for the management accounts of the business like marketing etc. The Coca-Cola Company finance department is also responsible for making budget of the company and for each department like marketing department or research and development department. They will also be involved in the planning process like taking over or any major decision. Packaging Department The packaging department of Coca-Cola Company is responsible for the packaging of the products. They have to make the packaging attractive so that that product meets the eyes of the

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consumers. Bringing new products package is their responsibility. It works with the companies bottling partners to produce an attractive combination. Sales Department The sales department of the Coca Cola Company is to coordinate the selling program. They also have to make the distribution methods, etc. Also, decide how much to sell and how much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way. Research And Development Department This department has their budget given by the finance department and their responsibility is to investigate new products. They work closely with marketing by looking at marketing research findings. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. If necessary then they also have to improve the quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc. Administration Department This department is essential for keeping the business going. They act as a help support of the company, it is not the central purpose the business but every business organization would need this department. Most businesses rely on administration to be organized. They deal with enquiries, give messages produce documents and give information to any customer. The complaints that this department will get would be transferred to the research and development department to make the product better or fix the problem that the consumer is having. These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfies the customer by providing the information they needs and taking the complaints and passing to the research and development departments who improves the products.

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Products

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Brands of Coca Cola

Energy Drinks For those with a high-intensity approach to life, Coca Colas brands of Energy Drinks contain ingredients such as ginseng extract, guarana extract, and caffeine and B vitamins. Juices/Juice Drinks We bring innovation to the goodness of juice in Coca Colas more than 20 juice and juice drink brands, offering both adults and children nutritious, refreshing and flavorful beverages. Soft Drinks Coca Colas dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry. Sports Drinks Carbohydrates, fluids, and electrolytes team together in Coca Colas Sports Drinks, providing rapid hydration and terrific taste for fitness-seekers at any level Tea and Coffee Bottled and canned teas and coffees provide consumers favorite drinks in convenient take-anywhere packaging, satisfying both traditional tea drinkers and today's growing coffee culture. Water Smooth and essential, our Waters and Water Beverages offer hydration in its purest form. Other Drinks So much more than soft drinks. Coca Colas brands also include milk products, soup, and more so you can choose a Coca Cola Company product anytime, anywhere for nutrition, refreshment or other needs.

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SWOT Analysis + BCG Matrix

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SWOT Analysis

SWOT analysis is a strategic planning tool used to evaluate strength, weakness, opportunity, threats. Inside a company. It involves identify the internal and external factors that are favorable/unfavorable for business succeed Coca-Cola has a brand name that holds its own prestige in the world market. The multinational entity of the Coca-Cola Pakistan gives it an edge upon other competitors. The management of this beverage company comprises of one of the most professional people and the strong financial firmness guarantees it a solid backing to sell its products. Strengths ( Internal) Popularity Well known Branding obvious and easily recognized A lot of finance Customer loyalty International Trade

Weaknesses (Internal) Word of mouth Lack of popularity of many Coca Colas brands Most unknown and rarely seen Result of low profile or non-existent advertising Health issues

Threats (External) Changing health-consciousness attitude Legal issues Health ministers Competition (Pepsi)

Opportunities (External) Many successful brands to pursue Advertise its less popular products

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Buy out competition. More Brand recognition

Strengths
Coca Cola is a popular brand around the world. It is scary to think that its popularity has been constantly growing over the years and the possibility that there is still room to grow. If you Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that are virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Money is another thing that is strength of the company. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. Another strength that is very important to Coca Cola is customers loyalty.

WEAKNESSES
Political instability in few countries Coca Cola is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. Word of mouth is probably a strength and weakness of every company.. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Colas drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or nonexistent advertising. Another weakness that has been greatly publicized is the health issues.

OPPORTUNITIES
Coca Cola has a few opportunities in its business. It has many successful brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular products. Another opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world of business. However, with Coca Colas power and success, such a task is not impossible. Coca Cola has bought out a countless number of drink brands. Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is known well throughout 90% of the world

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population today. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and their competitors.

THREATS
Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the This definitely needs to be viewed as a dominant threat. In todays world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Colas products. Another possible issue is the legal side of things. There are always issues with a company of such supreme wealth and popularity. Colas products and could threaten the status and success of sales. Other threats are of course the competition. Coca Colas main competition being Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as, coffee, and milk are threats. These other beverage options could take precedent in some peoples minds over Coca Colas beverages and this could threaten the potential success it presents again.

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BCG Matrix

BCG Matrix method is the most well-known portfolio management tool. It is based on product life cycle theory. It was developed in the early 70s by the Boston Consulting Group. The BCG Matrix can be used to determine what priorities should be given in the product portfolio of a business unit. Boston Consulting Group Matrix has 2 dimensions: market share and market growth.

STARS: Stars are high growth, high share products. They often need heavy investment to finance their rapid growth. Eventually their growth will slow down and they will turn into cash cows. CASH COWS: Cash cows are low growth, high share products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of cash that a company uses to pay its bills and support other SBUs that need investment. QUESTION MARKS: Question marks are low share products and high growth market. They require a lot of cash to hold their share. Management need to think hard about which question marks it should try to build into stars and which should be phased out.

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DOGS: Dogs are low growth and low share products. They may generate enough cash to maintain themselves but do not promise to be large source of cash.

BCG Matrix of Coca Cola

STARS:
Coke Classic is the basic product through which the Coca Cola Company got the fame. It is one product, which gives the maximum revenue from all over the world. It is one flavor, which has the maximum consumers all over the world. Coke has already worked a lot on it by launching new flavors in it, but still it is a product they can turn as famous as coke Classic.

CASH COWS:
Fanta and Sprite are the products, which the Coca Cola Company can never think of stop producing. It is the one which make the coke company a huge success; it was one product which gives billions of dollars as revenue from world over. Whenever the company thinks of launching its product in a country the first product they launch is coke classic as they know that if dont work here then nothing else can.

QUESTION MARKS:
Products that are still not a big hit as they havent consumed much time yet. Sprite 3G, Sprite Zero, Diet Coke and Kinley are the examples of these question marks as the question marks as they have not taken much time yet to get a hold of market & not even the large percentage of the people have tasted it. So it needs time to be fully tested by the company & the company needs to think whether it should continue the production or should divert to something new.

DOGS:
A product that has not worked good or a product which has been a source of loss. Flavored Fanta is one product that was not a big hit. Even its not a long period which flavored Fanta has consumed but still there are signs that it wont be a success. So its better for the company to get rid of it.

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Ethical Evaluation of Organization

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Ethical Values

We have a team spirit in which trust, respect, openness and social responsibilities create organizational integrity. We are committed to continuous improvement and excellence in quality, services and leadership

Corporate Integrity
Corporate integrity is the basis of all relations within the Company. It is a strong desire to be honest and reliable. It is a personal understanding (how we act on our own) as well as a corporate attribute (how do we act collectively as an organization).Corporate integrity is to present facts without distorting them, even if they are not pleasant. However, how we say things is as important as what we say. Thus, the facts and truth should be told using appropriate language. Therefore, the principles of respect, trust and openness must be present together for Corporate Integrity to exist.

Social Responsibility
Social responsibility is to be a model organization ethically and legally, be responsive to the expectations of society and our stakeholders, ensure the continuity and development of quality at all levels of our business life, and be sensitive to public health and well being.

Teamwork
The Company believes that we can achieve our goals and aims only through teamwork. Teamwork requires the sharing of resources to achieve the most suitable solutions and commitments. As opposed to a single-functioned approach, multi-functional teams can analyze an issue from different angles and provide diverse opinions to reach optimal solutions. Thus Teamwork requires a clearly defined common purpose and collaboration and cooperation with others.

Quality
Quality means ensuring conformity with the specifications and achieving the expected and defined properties. Quality means achieving the result with the least deviation from the

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expected properties, in other words, with the least defects. The target is doing the right thing the first time and the truth that higher quality costs less lies under this definition.

Service Excellence
Service Excellence is commitment to quality of execution as much as results. In other words, it is the understanding that accommodates the view that not only the result obtained but also the means used to reach the result are important. Therefore, Service Excellence requires the search for ways to develop the products and services to make them flawless.

Leadership
Leadership is not a quality that can be ascribed only to the person or persons who are at the top of the organization. On the contrary, leadership must be an organizational asset that every one of our employees has to possess, because innovation can be brought in only by helping others to see and feel how certain things can be different and better. Through leadership, our stakeholders gain the cooperation and commitment of others to take action both in their business and social lives. Furthermore, Leadership conveys enthusiasm and confidence in the ability to achieve goals and be successful. Therefore, Leadership is encouraging people and supporting them.

Continuous Improvement
Continuous Improvement is the belief that progress can only come through renewal. Learning new ways and applying them for Continuous Improvement is a personal responsibility. Furthermore, it is necessary to encourage others to look for ways to do things better so that Continuous Improvement can become an organizational value. Successful individuals and organizations are those that derive their strength and advantage from continuous improvement.

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Corporate Culture

Its success is due to a corporate culture that is one part superior marketing (How else can you sell sugared water all over the world?) and one part junkyard-dog layering. CocaCola lawyers are among the most aggressive in the world, enforcing the company's rules on how and where Coca-Cola is sold.

Organizational Culture in Coca Cola

The culture observed in Coca Cola is Strong at the Upper level but gets weaker in the lower work levels. Being recognized as one of the biggest companies of the world, Coca Cola in Pakistan is influenced by the Foreign Coke chains and tries to provide the best possible products to the customers. The Management creates Ethical, Innovative & Customer responsive cultures. The company follows a set of strict instructions, the Chairman, Board of Directors & Senior Management ensures that the purchase, production & distribution of all the products are made with accuracy, any unusual activity is pointed out and shared to those who need to know, the importance of time is emphasized, the success story of the International Coke companies are also discussed in order to enhance the standards and all the departments are interconnected with each other in order to avoid miscommunication and disturbances as Coke is making a number of changes to reward systems, training and other drivers of corporate culture to produce greater stretch, innovation and speed. It aims to create a culture that rewards going for breakthrough goals, supports taking risks, stimulates robust innovation, encourages, courageous, visionary leadership, values speed, fosters fast, streamlined decision-making and capitalizes on diversity.

Enviroments in Coca Cola

The market analysis investigates both the internal and external business environments. It is vital that coca-cola carefully monitor both the internal and external aspects regarding its business as both the internal and external environment and their respective influence will be decisive traits in relation to cokes success and survival in the soft drink industry.

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Internal Enviroment The internal business environment and its influence is that which is to some extent within the businesss control the main attributes in the internal environment include efficiency in the production process, through management skill and effective communication channels. To effectively control and monitor the internal businesss operations and readily act upon any factors, which cause inefficiencies in any ph ase of the production and consumer process. External Enviroment The external business environment and its influence are usually powerful forces that can affect a whole industry and in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place coca cola must be aware off. Fluctuations in the economy changing customer attitudes and values and demographic patterns heavily influence the success of coca colas products on the market and reception they receive from the consumer. The External environment has 2 components which are Specific & General environments. Specific environment: The specific environment includes the following factors. Customers Competitors Pressure Group Suppliers

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Labor Facilities

The employees here are taken good care. They are paid well and on the other hand, many other benefits are also given. On Special occasions all family are invited to the factory. A part from these the workers are occasionally taken to p icnics or movie show. This helps them in getting motivation. Some special programmers such as meeting at quality circles are also done to know the hidden qualities of the employees and they are motivated. Special skill identifications programmers are also held for this purpose and prizes are given. The ambulance and community etc. services are provided by Coca-Cola beverages private limited at 24 hours. The company provides pure drinking facility to near villages. The company has an emergency team for any natural calamities. The company provides medical checkup facility for villages person. The company provides uniform and canteen facility to the employees. Promotion:It involves a change from one job to another that is better in terms of status responsibilities promotion is given to the workers in the Coca-Cola Company not by increasing their wages or position but by transferring them to some other plant . Labour Welfare:Life of the workers is made worth living Coca-cola Company takes care at their worker by taking them for outing once in a month. It uses to become where the plant forms. The workers enjoy there and return by the same day. Health and Safety:Coca-Cola takes care of its workers from all. They have an ambulance which is kept four the emergences and the companions is given something happens on duty.

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Corporate Social Responsibility

Four pillars of CSR

Marketplace Workplace Environment Community

Marketplace We strive to respond to the expectations of our stakeholders with sustainable production and marketing practices. Workplace Our goal is to provide a fair and safe work environment for employees while providing strong support for personal and professional development. Environment CCI conducts its activities while respecting the environment, valuing natural resources and taking into consideration the needs of future generations. Community We care about the needs and expectations of local communities everywhere we operate and support solutions that are responsive to individual community needs.

Corporate Social Responsibility with in Plant

Wastage We are treating our wastages properly. Drain well so it cannot poison the surrounding.

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Scrap We take environmental certificate from our contractors that they should properly dispose off the scrap.

Corporate Social Responsibility outside the Plant

Running Schools Medical Camps Free Plantation

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Corporate Citizenship

CSR Vision and Guidelines

CSR Vision for Business unit To be a trusted partner contributing to the social, economic and environmental progress Mission To socially and economically empower communities around our operations, by creating enabling environment around our plants, for the betterment of communities through sustainable projects Preamble At Coca-Cola, we are committed to contribute our time, expertise and resources to help communities in partnership with local leaders. These guidelines shall help Division and bottling units to identify initiatives and projects that they could undertake in their respective areas of operation. CSR GUIDELINES

We will work towards attaining the most efficient and optimum usage of water Endeavor to achieve Net Zero w.r.t. groundwater i.e. to strive to recharge ground water equivalent to the same used in our operations. Trive to facilitate equitable access of clean drinking water to communities around our plants and support protection of watersheds in such areas. Have measurable goals to conserve the environment in collaboration with local communities. Endeavor to recycle all our solid wastes materials including PET articles. Strive to conserve energy and would comply with national and applicable international standards/practices. Dispose and manage bio solids, as per law of the land and prevailing regulations, to minimize the impact on the environment and adopt environmental friendly practices. Work for practical sustainable solutions for disposal of bio-solids and other wastes and help spread awareness of the same.

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Attempt to establish partnership with Government, NGOs and communities and other relevant agencies, to launch and manage projects in communities around our operations. Work closely with our bottling partners and share resources - technical, human and financial - for the sustainable development of local communities. Promote Healthy and active living/lifestyle in workplace, in marketplace and in communities. Incorporate our social responsibility as a part of the Companys business plan. Promote and encourage employee volunteerism in community work. We stand committed towards our associates, their families and the communities around our operations, to improve their quality of life as a whole through health, education, and water management programs. We shall commit a percentage of the companys turnover for CSR initiatives.

Seeking Everyones Support for Effecting Positive Environmental Contribution

In our efforts to identify solutions to environmental challenges, we seek the cooperation of public, private and governmental organizations. We direct our company's skills, energies and resources toward activities and issues where we are confident of making a powerful and effective contribution.

Stewardship - The Coca-Cola Identity

We are stewards of brands universally recognized for quality and consistency. Maintaining an established standard of excellence in our business conduct is essential if we are to continue to be trusted neighbors in the communities where we do business. Our efforts towards environmental management exhibit this level excellence at the local, division, and corporate levels. We will take progressive actions that focus on minimizing our impact on the environment while striving towards continuous improvement We acts responsibly, doing the right thing with regard to the local and global environment as we built and nurture strongs brands As responsible stewards of the environment and our brands, we will take progressive actions that focus on minimizing our impact on the environment and strive for continuous improvement

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Our goal is to be environment management leaders in the communities where we conduct business. We provide leadership in three critical areas:

Water efficiency and water quality Energy efficiency Eliminating or minimizing solid waste

Our activities focus on community involvement based on understanding local and global environmental issues, leadership on research to provide innovative solutions, and open and ongoing dialogue on our environmental efforts. The company and operations share best practices on resource management techniques amongst each other and, where appropriate, with local communities.

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Moral Philosophy

The moral philosophy of Coca Cola Limited is To retain its customers by keeping them satisfied (when you will offer quality products to your customers, your customers will be satisfied and be loyal to you To take care of its shareholders (by providing them the best-in-industry returns) To take care of its employees (by providing benefits to them, treating them well and keeping them committed to your organization)

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Ethical Values Adoption Benefits

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Profitability

As we know that seniority is indulge in the decision making process. Ethical grooming and training make the executives more accurate and reliable decision making and it so with Coca Cola. Different training programs and seminars are conducted to make employees more ethical to capture the good numbers in profitability. As different strategies are used like, giving good incentives to employees make them ethical and loyal; promotions are there to make them motivated ethically. So here is the comparison of nestles profitability with past years: It is clearly shown that the currently Coca Cola is being at the boom of the profitability as compared to previous years, more sales were made. This analysis were made on the performance of the employee keenly involved in achieving the great profit for industry.

Years
2006 2007 2008 2009 2010

Revenue (in millions)

24,088 28,857 31,944 30,990 35,119

Coca-Cola has managed to grow revenue by an average of 9.8% over the past 5 years, which is faster than the 10 year average of 7.9%. When it comes to sales and market position, it's hard to beat Coca-Cola. 500 brands (14 of which have over $1B in sales), and 3500 unique beverage products sold in over 200 countries worldwide. As if that were not enough, Coca Cola owns the 4 of the world's top 5 sparkling, non-alcoholic beverage brands: Coca Cola, Diet Coke, Fanta, and Sprite.

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Growth

The Coca-Cola Company (KO) is trading at the bottom of their 52-week range (US$49.44-65.59). Typically KO has been one of the worlds most admired stocks. Warren Buffetts Berkshire Hathaway is the second largest holder of KO stock with a US$10.4 billion investment in the company. Analysts are however beginning to move away from the stock. KO grew revenues from US$21.7 billion in 2004 to US$28.9 billion in 2007 a 9.9% compound annual growth rate. Our assumptions of revenues for the next three years are US$33.15 billion in 2008 growing to US$36.65 billion in 2010 an 8.3% compound annual growth rate. We have projected EBITDA margins to be 29% in 2008 then flat at 30% to 2010. We have used a terminal growth rate of 3.25%. We calculated this terminal growth rate based on year three (2009-10) growth of 4.1% dropping to a 3.0% stable growth rate by year 10. We used a terminal capital expenditure number of US$1.75 billion. We have used a WACC (discount rate) of 8.0%. As CCBPL maintains high standers of ethical values the growth of company received a positive impact because of this. Growth means increase in profit, market share, earning per share and shareholder wealth

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Shareholders Wealth

CCBPL always have a focus on strong ethical values and these values help to build their shareholders confidence. Ethical behavior is necessary for achieving the CCBPLs goal of owner wealth maximization. An effective ethics program is believed to enhance corporate value. An ethics program can produce a number of positive benefits. It can: Such actions, by maintaining and enhancing cash flow and reducing perceived risk, can positively affect the firms share price and on shareholders wealth Reduce potential litigation and judgment costs Maintain a positive corporate image Build shareholder confidence Gain the loyalty, commitment, and respect of the firms stakeholders.

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Market Share

There are four basic ways you can improve your market share. You can improve your product so that it is better than your competitors or you can change the price or offer special incentives for buyers, such as discounts or sales. Alternatively, you can find new methods to distribute your product so people can buy it in more places. Finally, you can advertise and promote your product. Using these techniques in any combination may improve market share. Applying good ethical standards to your organization is a direct reflection on your market share and making your company profitable for the long haul. Ethical values provide the CCBPL with differential advantages. Increase the number of customers Increase the frequency of purchase Increase the average spend

Increasing market share means demand will grow, in fact, it might even boom, even if only in bursts. Make sure your internal systems, processes and customer support infrastructure can cope with the increased demand.

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Dividend

Coca Cola is paying the dividend honestly and on fair play basis, companies ethical values effect the dividend positively Coke is a dividend aristocrat, and has increased distributions for 49 consecutive years. The most recent increase came this past February, when the company boosted the quarterly payout 7%, from $0.44 to $0.47 a share

Dividend growth has averaged 10.3% growth over the past decade, though growth rates have slowed, with the 5-year average at 9.2%, and the 2010 increase (to $1.76) was only 7.3%. This number is slightly skewed by the large size of the annual payout, where a 10% increase can cost a company much more than if the dividend was a smaller amount. Using the new quarterly payout, we can expect a 2011 dividend of $1.88, a 6.8% increase to the dividend paid in 2010.

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Earnings per Share

Coca-Cola reported EPS in 2010 of $5.06 a share, yet this number is highly inflated due to the $5.2B dollar windfall from the purchase of CCE and sale of both the Norwegian and Swedish bottling operations. I instead chose to use the comparable full year EPS of $3.49 found in this press release. I think this gives a much clearer picture of Coke's earnings power. Using this figure, Coke's 10 year earnings growth averaged 9%. 2010 earnings grew 19.1%, from $2.93 in 2009 to $3.49 in 2010. Analysts expect KO to earn $3.87 in 2011, and $4.28 in 2012, growth of 10.9% and 10.6% respectively.

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Findings

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Findings

This report discusses the detailed ethical evaluation and effects of ethical values on different factor which are directly related to the organization sustainability. As Coca cola is a beverages industry and covered the major market share i.e.60% of market. This report helps to find the various ethical aspects can make variation in organization grip Nestle is strongly focusing on CSV programs and expanding their norms and values to every customer. Nestle has strong ethical principles and core values. As for as quality is concerned, the step of management towards TQM is of great importance and Coca Cola is trying to achieve it. The main thing in Coca Cola is on EMPLOYEE FOCUS. Employees are encouraged to give views, suggestions etc. That is the reason, which forces management to include employees in decision making. Coca Cola is in private sector and its administration and operations are very excellent. As for as location is concerned; the geographic site of Coca Cola is very excellent because of proximity to Suppliers and Infrastructure. The forecasting procedure is comparatively better because the decisions are jointly made by the representatives from all concerned departments. They always do qualification based hiring. Right man for the right job. They are not using child labor and very strict in this. Job is not offer without checking the N.I.C card of candidates. They also participate in the donations, especially when national disaster takes place

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Recommendations

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Recommendations

Currently in Pakistan there are only two flavor of coke available, company can extend their portfolio by introducing new flavors. According to the survey, conducted by the international firm Pakistani people like less sweet cola drink. So for this coca-cola company should think about bringing a new product for example new diet flavors, in the market to fulfill the local need. Marketing team should try to increase the availability of Coke in rural areas. There should be proper allocation of each activity on the basis of city & population. Specking should be changed and new attractive bottles should be introduced. Currently two plants of coke are being run under private companies; one is in Peshawar and other in Rawalpindi. Company should plan to buy these plants as well so that customers can get equally good quality all over the country. This will help company to maintain quality control.

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Conclusion

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Conclusion

Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the leaders in sponsoring the most important, thrilling events. E.g. Cricket matches concerts and many other social occasions. Event at the present they are organizing a Basant festival for which they busily organizing stuff. Any strategic decision making exercise cannot be successful unless the fact situation and the figures have been taken account of the taken accordingly. This is to say that though Coca Cola is the leader is beverage products in the world and has dominating brands in Pakistan as well yet, its name is not sufficient to make all brands a success even though they may be related to the beverage business and thus within the core competency of Coca Cola. It is essentially only account of the fact that the present day consumers are changing. Thus Coca Cola has to refocus on not so well performing brands and taking each of them in particular, in accordance with the plan of action as well the highlighted technique, decide to reposition its brands in the market. The fact Coca-cola currently occupies the market leadership position overall but it does not guarantee that the company will sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less number of consumers as Pepsis hence the conclusion is that Coca-Cola must enhance factors such as relationship marketing, innovation and technology especially in Pakistan to attain market leader position in this region as well.

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Glossary

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Glossary

CSR (Corporate Social Responsibilities): It is a form of corporate self-regulation integrated into a business model. BCG: Boston Consultant Group matrix is used to determine the product portfolio of a business unit. CCBPL Coca Cola beverage private limited CSV (Creating Shared Value): Creating Shared Value is a fundamental part of Coca Cola way of doing business that focuses on specific areas of the Company's core business activities. EPS (Earning Per Share): The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability.

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Bibliography

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Bibliography

www.coca cola.com.pk www.the coca cola .com www.scribd.com www.wikipwedia.com www.googleimages.com www.ask.com www.dictionary.com www.Google.com www.yahoo.com www.msn.com

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Annexure

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Questionnaire
Q. How many departments your organization is currently working on? Q. How many products your company is being manufacturing? Q. What are your strengths, Weakness, opportunity and threats? Q. How much contribution of ethical values in weakness? Q. Can you please briefly tell about your BCG matrix? Q. What are ethical issues in Coca Cola? Q. How much ethics are meaningful for you? Q. What types of ethical issues you face from employees? Q. As per your organization do ethical values help out in evaluation of an organization if yes then how? Q. Do you think your ethical values would be your competitive edge? Q. What kind of business ethical values/aspects does help and effect the evaluation? Q. What kind of labor facilities you offer for labor? Q. Does the return of your labor is positive against such rewards? Q. What are the incentives for obeying the ethical values and punishments for violate the rules? Q. Do you think company is fulfilling its ethical values towards employees and society and how? Q. By which mean your organization grooming the moral ethical values? Q. In what means your organization is fulfilling the corporate social responsibilities? Q. What does for your organization corporate citizenship means and what strategy your company is adopting to cover it?

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Q. How much you are working for your vicinities? Q. What factors effect corporate citizenship as per you organization? Q. What kind of moral philosophy is being mostly adopted by your organization? Q. What is your market share? Q. Does ethical values effects your profitability and how? Q. Does ethical values effects your growth and how? Q. Does ethical values effects your shareholders wealth and how? Q. Does ethical values effects your market share and how? Q. Does ethical values effects your dividend and how? Q. Does ethical values effects your earning per share and how? Q. What is the contribution of ethical values so far in companys positioning?

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Questionnaire

1. Has the founder or top management of the company left an ethical legacy to the organization? a) Yes b) No 2. Does the company have methods for detecting ethical concerns within the organization and outside it? a) Yes b) No 3. Is there a shared value system and understanding of what constitutes appropriate behavior within the organization? a) Yes b) No 4. Are stories and myths embedded in daily conversations about appropriate ethical conduct when confronting ethical situations? a) Yes b) No 5. Are codes of ethical or ethical policies communicated to employees? a) Yes b) No 6. Are there ethical rules or procedures in training manuals or other company publications? a) Yes b) No 7. Are there penalties that are publicly discussed for ethical transgressions? a) Yes b) No 8. Are there rewards for good ethical decisions even if they dont always result in a profit? a) Yes b) No

9. Does the company recognize the importance of creating a culture that is concerned about people and their self-development as members of the business? a) Yes b) No

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10. Does the company have a value system of fair play and honesty toward customers? a) Yes b) No 11. Do employees treat each other with respect, honesty, and fairness? a) Yes b) No 12. Do employees spend their time working in a cohesive way on what is valued by the organization? a) Yes b) No 13. Are there ethically based beliefs and values about how to succeed in the company? a) Yes b) No 14. Are there heroes or stars the organization who communicates a common understanding about what positive ethical values are important? a) Yes b) No 15. Is the firm more focused on the long run than short run? a) Yes b) No 16. Are emotional outbursts about role conflict and ambiguity very rare? a) Yes b) No 17. Has discrimination and/or sexual harassment been eliminated? a) Yes b) No 18. Is there an absence of open hostility and severe conflict? a) Yes b) No 19. Do people act on the job in a way that is consistent with what they say is ethical? a) Yes b) No 20. Is the firm more externally focused on customers, the environment, and the welfare of society than on its own profits? a) Yes b) No

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21. Is there open communication between superiors and subordinates on ethical dilemmas? a) Yes b) No 22. Have employees ever received advice on how to improve ethical behavior or been disciplined for committing unethical acts? a) Yes b) No

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Reference Person

Ather Iqbal Network and Communication Executive Coca Cola Pakistan

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