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ABSTRACT
The dynamic role of management functions in Coca-Cola Beverage Limited planning & organizing process has been highly emphasized. This department has been identified as the means through which the rapid industrialization and other developmental goals of the organization can be achieved. This report explores the role of recruitment & selection process of the organization. This report provides a defined role of other departments in this process, role played by Head Office in this process, internal & external support of different departments in this process. The findings about Coca- Colas strengths, weekness, opportunity and strengths.
PART 1: 1: INTRODUCTION
The focus of this report is basically to analyze the different management functions at Coca cola beverages Pakistan limited Karachi. These functions include planning, organizing, leading and controlling.
1.1: HISTORY
International:
Coca-Cola laid the foundation of the beverage industry when it was formed in May 1886 in 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 began to get recognized internationally. Thus from its mere beginning in 1886 Coca-Cola has now been transformed into a strong multinational with its product being currently recognized all over the world. Coca-Cola, in fact, has now become one of the most famous and widely consumed brands in the world. It has not only established its footings in 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, Coca-Cola Beverages Pakistan Limited (CCBPL) began its operations on 26 May 1996 in Pakistan. Coca-Cola Beverages 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 1996 Fraser and Neeves, a Singapore based bottler of Coke, bought off the local bottlers in Karachi. Not long after it went on to acquire the bottling plants in Hyderabad as well. Since then coke has made an impressive impact on the local market by increasing its availability as well as its volume share. CCBPL has decided to expand its operations in Pakistan by buying other bottlers all over Pakistan. Implementing their plans of
acquisitions of other plants they have recently acquired all the plants in Pakistan as they are 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 are 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. Although strategic management has been in existence for only a few years its implications have been firmly and strongly rooted in organizations that want to stand in good 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 an organizations future course, figuring out the what strategic moves and approaches to undertake, and then orchestrating execution of the chosen strategy as close to perfection as is managerially possible. One of the biggest factors in determining whether the 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 from what it is to what it envisions it can become.
2.1: ENVIRONMENT
The environmental factors affecting Coca Cola can be divided into:
To increase the total retail customers by around 10%. To increase the market share by 5%. To reactivate the discontinued customers by 30%.
To find new customers, To retain existing ones, 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 operational goals and is assigned to set certain milestones for the salesman so as to give him proper feedback, which definitely helps the salesman achievement of the above-mentioned 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 feasible solution. Programmed decisions are made only by the top management with no consultation what so ever with the line managers while the daily and routine decisions are made by the line managers at the middle level with the prior permission or approval from the general manager. Decisions, which are normally taken at the top management, are related to The package positioning Trade discounts Advertisements Price reductions Distribution While recruiting new employees, the top management approves the vacancies and asks the Human Capital Department to conduct the written test and this test normally is conducted for the employees at the lower level. Then prospective applicants are short listed through the interview process. Then the Business and operations manager or general manager personally interviews the employees and then makes the final decision about 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 employees and the managers at the middle management level. Top management asks for the suggestions and ideas of his subordinates and then takes the final decision himself. However, the remaining decisions, which are mainly related to the daily operations, 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 with new ideas related to their duties and the work they do so as to increase the overall efficiency of the organization and eventually increasing the profits.
3: ORGANIZING
Analysis of the organizations structure 3.1: 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.
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This approach helps company in achieving the economies of scale through high quality of 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 the CCBPL. There are 8 plants of CCBPL operating throughout the country. Different areas are distributed the products on the basis of nearness so as to reduce the transportation cost. Industrial Relations Department is responsible for dealing with the problems related to the working environment of the employees and the issues related to the labor unions. Sales and Marketing Department is responsible for the making the product available in the market and to deal with the issues related to the advertisements of the products. Human Capital Department is responsible for looking for the efficient pool of workers, selecting the professionals and makes them happy so that they should stick to the company. The Human Capital department deals with management level employees grievances. Finance Department deals with the overall costing and pricing of the products. This also handles the import related issues of the company. Accounting department assists the sales department in making invoices and payroll entries.
The salesman has to report to the sales manager. These sales managers are responsible for the performance of the sales man and they are required to provide them timely feedback. They are also required to provide the guidance at any time and related to the issues related to the performance of the employees. These salesmen are monitored on an on-going basis by their manager, which serves as an effective control mechanism. The employees have a lot of authority, responsibility and information relative to the work 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.
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3.8: TRAINING:
At Coca cola on the job training is given the utmost importance. At first a sales man is 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 habits which can cause great problems for the company. Normally a new sales man is supposed to work under another salesman to learn the basics of selling techniques and the overall environment in which he will be working. A salesman is then allowed to work under the salesman but he is asked to perform all the operations by his own. These include filling out the route card, dealing with the customers, communicating with to loader, cash management, setting the visi cooler and
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the next days order to be loaded. After doing this entire if has any problems in learning then 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 training facilities. The company has a sales hall in which all the sales personnel are given some tips regarding the changes in the selling environment and how to improve efficiency and efficacy. These tips are normally given by the general manager. Coca Cola also arranges some type of seminars, work shops and modules related to the sales management, Forecasting of the daily sales, merchandising, selling skills, supervisory techniques and other areas related to the sales. Coca Cola does not have any library and special trainers but they do have the 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 from within. 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 only the wages and salary but different other benefits are also given to employees to motivate and 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 organizational hierarchy; 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: Increasing business with a coordinated approach by helping each other in its operations. Encouraging the employees to give new ideas so as to increase the customer satisfaction. As there is a very high degree of delegation and participation so they believe that the leadership 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 to work in dependence of one another. Subordinates are given a fair treatment and are dealt in a very good manner so as to give them a feeling that you are not only an employee but also a member of the family.
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The managers at CCBPL are very supportive as they use teams and treat subordinates as equals, and have a highly open communication system. They are participative since they encourage the involvement of the employees in decision-making and make use of group discussions. However, some monetary and non-monetary rewards are used to create 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 they have the policy of promotion from within policy. Promotions are bestowed on the performance basis. This performance base motivates employees to work hard and achieve the goals, which are very objective and are perceived achievable by most of the employees. Apart from this compensation plan is also a motivating factor as CCBPL is paying more 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 timely feedback about their activities. They also help them solve different problems, which can be job related or personal problems. Working environment and a challenging milestone are 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 deciding on the policy matters and then these things are communicated downwards. Every 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 is also used to get the feedback about the employees views about the management.
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behaviors of the values, the top management act as role models, and closely administer and review their employees behaviors.
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 employees are asked and evaluated for the reasons and corrective actions are taken by the respective managers. Different departments have different criteria and different reporting and controlling systems. The reporting, evaluation and control system of sales departments is follows:
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6: SWOT ANALYSIS
STRENGTHS 6.1: STRONG MUTINATIONAL:
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.
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.
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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 marketing department does not pay any heed to their problems. The sales department also complains that the repair of the visionless is always delayed. Until or unless Coca-Cola restructures its co-coordinating activities the availability of its product would be always delayed.
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very successful. In addition to this Pepsi is also giving very liberal credit policies to its dealers, which gives the dealers a greater incentive to buy Pepsi rather than Coke.
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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 every department. There is very well integrated effort of all the department of the organization to organize and control an individual for a particular task Its forecasting planning system according to the company requirements in which each department has to justify the employees it required in the Annual Business Plan of the year. The Head Office f the organization has complete check on the every function of the organization . Taking about organizing and controlling all the work done by their respective departments as the company is divided in different departments planning starts (strategic planning) from top authority and afterwards organizing and leading and controlling is done as per the requirements of each and every department.
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8: Recommendation
Coca cola is a multinational company and running their business successfully. Americans took over the organization in 2000. They introduced many advantageous programs to the employees which were very lucrative such as life insurance, health and safety insurance and many other reward-giving policies. But there are some draw backs in there organization, these are Coca cola does not use advertisement media extensively as most of the jobs are filled by referrals and unsolicited applications files. Unsolicited applications files are good approach but most of the people do not know about such methods. Coca cola does not hire fresh graduates at middle level management, this creates bad image of the organization. They should hire fresh graduates as it may give them new and fresh ideas. To some extend they include the lower management staff in decision mailing so their should be De-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 to increase the moral of employees so they work more efficiently.
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9: Conclusion
This report gives complete briefing about all the planning process carried out in an organization When planning is completed how to carried out all the phase of organizing different tasks in different departments according to the requirements. This report gives complete information about the working of coca cola in market a complete overview of strengths, weakness, opportunities and threats.
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