1INTERNSHIP REPORT ON ORGANIZATIONAL STUDY AT HINDUSTAN COCA-COLA BEVERAGES PVT. LTD By Ankit Raj Upadhaya 13MB4857 III SEMESTER MBA Guide Prof.Vaishnavi Bhatt Internship Report submitted to the University of Mysore in partial fulfillment of the requirements of III Semester MBA degree examinations – 2014 Ramaiah Institute of Management Sciences #15, New BEL Road, MSRIT Post, M S Ramaiah Nagar Bangalore – 560054 2 CERTIFICATE FROM THE GUIDE This is to certify that this Internship Report on Organizational Study at “HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED” is a bonafide study of Ankit Raj Upadhaya, carried out under my guidance and supervision. Place: Bangalore Date: AUGUST29, 2014 Signature 3 DECLARATION I hereby declare that this Internship Report on Organizational Study at HINDUSTAN COCA COLA BEVERAGES Pvt. Ltd. submitted in partial fulfillment of the requirement for III Semester MBA Degree examinations 2014 of University of Mysore through Ramaiah Institute of Management Sciences is my original work and not submitted to any other university. This work has been done under the supervision of Prof.Vaishnavi Bhatt in Ramaiah Institute of Management Sciences, Bangalore. Place: Bangalore Date: 29 August 2014 Signature 13MB4857 4 ACKNOWLEDGEMENT I would like to thank Mr. Amresh, HOD of Quality Department, Hindustan Coca Cola Beverages Private Limited (HCCBPL) without whom internship would not have been possible. I am grateful to him for having taken time off his busy schedule and spoken to concerned person to get me this internship. My indebtedness also goes to Mr. Anmol Sir HOD of Production and Maintenance Department HOD, whose constructive guidance, continuous support, stimulating suggestions and words of encouragement made internship most fruitful and productive. I express my gratitude to Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an opportunity to work with them and make the best out of my internship. My heartfelt gratitude also goes out to the staff and employees at HCCBPL for having co-operated throughout one month of internship period. I thank my collegeRamaiah Institute of Management Studies and our director Dr. M.R. Pattabiram and our dean Dr. Y.Rajaram for having given me this opportunity to put to practice, the theoretical knowledge that I gained from the program. I thank my guide Prof. Vaishnavi Bhatt for having guided and supported me through the course of the internship. I take this opportunity to thank my friends and family who have been with me and offered emotional strength and moral support. 5 CONTENTS Certificate from the Company ……………………………………………………….. Certificate from the Faculty Guide ……………………………………………………2 Declaration …………………………………………………………………………….3 Acknowledgement …………………………………………………………………….4 1. Introduction………………………………………………………………………..7-8 2. Industry Profile …………………………………………………………………...9-12. 3. Company Profile …………………………………………………………………13-28 4. Organizational Hierarchy ………………………………………………………..29-33 5. Study of Functional Departments ………………………………………………..34-62 Production Department ……………………………………………………………37 Finance Department ………………………………………………………………..61 Marketing Department ……………………………………………………………..51 Human Resource Department ………………………………………………………57 6. My Job Experience…………………………………………………………….....63-65 7. SWOT Analysis ………………………………………………………………….66-71 8. Findings Conclusions and Suggestions…… ...……………………………………72-73 9. Bibliography ………………………………………………………………………..74 6 LIST OF TABLES AND FIGURES Fig no-1 Soft Drinks In India 10 Fig no-2 Coca-Cola plant Across the country 24 Fig no-3 Indian Business Model 26 Fig no-4 India Organization Structure 32 Fig no-5 Regional Organization Structure 33 Fig no-6 Production Department 35 Fig no-7 Department Structure-2 36 Fig no-8 Bottling and Filling Process 40 Fig no-9 Quality Department 43 Figno-10 Maintenance Department 45 Fig no-11 Shipping Department 46 Fig no-12 Stores Department 48 Fig no-13 Supply Chain Department 49 Fig no-14 Marketing Department 50 Fig no-15 Human Resource Department 57 Fig no-16 Finance Department 61 7 CHAPTER 1 INTRODUCTION 8 Introduction Coca-Cola, the product that has given the world its best-known taste wasborn in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world‟sleading manufacturer, marketer and distributor of non-alcoholic beverageconcentrates and syrups, used to produce nearly 400 beverage brands. Itsells beverage concentrates and syrups to bottling and canning operators,distributors, fountain retailers and fountain wholesalers. The Company‟sbeverageproducts comprises of bottled and canned soft drinks as well asconcentrates, syrups and not-ready-to-drink powder products. In addition tothis, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Nowoperating in more than 200 countries and producing nearly 400 brands, theCoca-Cola system has successfully applied a simple formula on a globalscale: “Provide a moment of refreshment for a small amount of money- abillion times a day.” The Coca-Cola Company and its network of bottlers comprise the mostsophisticated and pervasive production and distribution system in the world.More than anything, that system is dedicated to people working long andhard to sell the products manufactured by the Company. This uniqueworldwide system has made The Coca-Cola Company the world‟s premiersoft-drink enterprise. From Boston to Beijing, from Montreal to Moscow,Coca-Cola, more than any other consumer product, has brought pleasure tothirsty consumers around the globe. For more than 115 years, Coca-Colahas created a special moment of pleasure for hundreds of millions of peopleevery day. The Company aims at increasing shareowner value over time. Itaccomplishes this by working with its business partners to deliversatisfaction and value to consumers through a worldwide system of superiorbrands and services, thus increasing brand equity on a global basis. They have nineaims at managing their business well with people who are stronglycommitted to the company values and culture and providing anappropriately controlled environment, to meet business goals andobjectives. The associates of this Company jointly take responsibility toensure compliance with the framework of policies and protect thecompany‟s assets and resources whilst limiting business risks. 9 CHAPTER 2 INDUSTRY PROFILE 10 SOFT DRINKS INDUSTRY IN INDIA (Source: www.coca-cola.com) (Fig no-1) INDIAN BEVERAGES INDUSTRY Beverages can be classified as non-alcoholic Beverages and Alcoholic Beverages. NON ALCOHOLIC BEVERAGES MALTED FOOD & HEALTH BEVERAGE INDUSTRY The malted foods market is composed of two segments brown and white. While the brown drinks are held to be as energy boosters, the white drinks are regarded as milk substitutes. BEVERAGES Alcoholic Non-Alcoholic Carbonated Non- Carbonated Cola Non-Cola Non-Cola 11 Malted beverages with nutritional attributes control around 70% of the total market and energy drinks (brown beverages) account for the rest. The malted food drink industry is dominated by few players. These include brands suchas Horlicks, Complan and Viva, which are mainly known as white beverages. Boost, Bournvita, Milo and Maltova on the other hand are classified as brown drink. Smithkline Beecham's Horlicks and Boost dominate the segment with around 65 % of the market share. TEA INDUSTRY The Rs 86 billion Indian tea industry's leaders have launched a number of instant tea drinks for the new-generation consumers. Tea has managed to remain on top despite repeated onslaughts by other beveragesegments largely because of its price advantages. India has a vast domestic market. About 88 per cent of tea grown in India belongs to CTC variety. India generally produces black tea. Black tea can be classified into two groups- Orthodox tea and Crush, Tear and Curl (CTC), a cheaper variety depending on the system of processing the green leaves. Consumers in different parts of the country have heterogeneous taste.Dust tea is very popular in the south and in central India. In the western states, good quality loose tea is preferred in Gujarat, whereas in Maharashtra, consumers provide a large market to packet as well as unbranded tea. The eastern states of West Bengal and Orissa and northern states consume CTC. The main players in the tea industry are Hindustan Lever, Tata Tea, Williamson Magors, George Williamson, Harrisons Malayalam, McLeod Russel, Bishnauth Tea, Dhunseri Tea, Warren tea, AFT Industries. These ten companies took together account for approximately 75 per cent of the turnover. In the packet / branded tea segment Hindustan lever is the leader. The major segment of the market is dominated by the unorganized players. Besides, many local brands have entered the packaged tea segment. There are about1000 brands of tea in the country and out of which more than 90 % brandsare represented by the regional players. Regional brands have increased their market share from about 37 per cent to around 50 per cent. COFFEE INDUSTRY Coffee is consumed largely in the southern states. The size of the total packaged coffee market is 19,600 tonnes or US$ 87 million. The urban rural split in the coffee market was 61:39 in 2000 as against 59:41 in 1995. CARBONATED BEVERAGES AND JUICES INDUSTRY 12 The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or US$ 1 billion. The market is highly seasonal in nature with consumptionvarying from 25 million crates per month during peak season to 15 million during offseason. The market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. ALCOHOLIC BEVERAGES Alcoholic beverages are growing industry in India. The alcoholic beverages industry in India is generally divided into two main categories-Industrial Alcohol and Potable Alcohol. Potable Alcohol segment comprises some categories as Beer, Country Liquor, Indian Made Foreign Liquor (IMFL) and wine. IFML primarily comprises wine, vodka, gin, whisky, rum and brandy. United Breweries Ltd, Shaw Wallace, MC Dowell & Co Ltd (part of the UB Group), RadicoKhaitan, Mohan Meakins, Sula Vineyards, Mount Shivalik, Seagram India Ltd are among the familiar names in the alcoholic beverage industry in the country. UB accounts for nearly 40 per cent of total domestic beer sales and controls close to 50 per cent of the brewing capacity. United Breweries (UB) Ltd, and Millennium Alcobev Ltd (MABL), a three-way joint venture with UK's Scottish & Newcastle (S&N) and UB group, now manage almost half of the beer sales in the world's second most populous market. Strong beer, which has 5% of alcohol content, outsells mild beer in India and accounts for more than 68 % of the total sales. The Indian wine market, estimated at 5 lakh cases annually, has witnessed robust 30% growthover the past few years. The domestic production is having a growth of about 20 per cent. 13 CHAPTER 3 COMPANY PROFILE 14 The Coca-Cola Company “Coke would rather be long term wiser, than being short term smarter” AbrahamNinan Director External Affairs, Coca-Cola, India 15 COCA COLA ENTERPRISES INC. TYPE : PUBLIC (NYSE:CCE) FOUNDED : 1926 HEAD QUARTERS : ATLANTA, GEORGIA, U.S.A. CHIEF EXECUTIVE OFFICER : MUTHER KENT CHIEF FINANCIAL OFFICER :GRAY P. FAYARD INDUSTRY : BEVERAGES REVENUE : $46.854 BILLION USD(2013) OPERATING INCOME : $10.228 BILLION USD NET INCOME : $8.584 BILLION USD EMPLOYEES : 1,30,600(2013) (Source: www.coca-cola.com) HI STORY 1886-1892 It was 1886, like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-coloured liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. There, the mixture was combined with carbonated water and sampled by customers who all agreed this new drink was something special. Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and wrote it out in his distinct script. To this day, Coca-Cola is written the same way. In the first year, Pemberton sold just 9 glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. Unfortunately for Pemberton, he died in 1888 without realizing the success of the beverage he had created. 16 Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler secured rights to the business for a total of about $2,300. Candler would become the Company's first president, and the first to bring real vision to the business and the brand. 1893-1904 Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention into a business. He knew there were thirsty people out there, and Candler found brilliant and innovative ways to introduce them to this exciting new refreshment. He gave away coupons for complimentary first tastes of Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In 1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca- Cola in bottles. He sent 12 of them to Candler, who responded without enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize then that the future of Coca-Cola would be with portable, bottled beverages customers could take anywhere. He still didn't realize it five years later, when, in 1899, two Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from Candler to bottle and sell the beverage for the sum of only one dollar. 1905-1918 Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none too pleased about the proliferation of copycat beverages taking advantage of its success. This was a great product, and a great brand. Both needed to be protected. Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine" and "Accept no substitute." The Company also decided to create a distinctive bottle shape to assure people they were actually getting a real Coca-Cola. The Root Glass Company of TerreHaute, Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916, they began manufacturing the famous contour bottle. The contour bottle, which remains the signature shape of Coca-Cola today, was chosen for its attractive appearance, original design and the fact that, even in the dark, you could identify the genuine article. 17 As the country roared into the new century, The Coca-Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and U.S. territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there would be about 1,000. 1919-1940 Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff. In 1923, four years after his father Ernest purchased the Company from Asa Candler, Woodruff became the Company president. While Candler had introduced the U.S. to Coca-Cola, Woodruff would spend more than 60 years as Company leader introducing the beverage to the world beyond. Woodruff was a marketing genius who saw opportunities for expansion everywhere. He led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the Olympic Games for the first time when Coca-Cola travelled with the U.S. team to the 1928 Amsterdam Olympics. Woodruff pushed development and distribution of the six- pack, the open top cooler, and many other innovations that made it easier for people to drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge success, but a big part of people's lives. 1941-1959 In 1941, America entered World War II. Thousands of men and women were sent overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that "every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants. During the war, many people enjoyed their first taste of the beverage, and when peace finally came, the foundations were laid for Coca-Cola to do business overseas. Woodruff‟s vision that Coca-Cola be placed within "arm's reach of desire," was coming true from the mid-1940s until 1960, the number of countries with bottling operations nearly doubled. Post-war America was alive with optimism and prosperity. Coca-Cola was part of a fun, carefree American lifestyle, and the imagery of its advertising happy couples at the drive-in, carefree moms driving big yellow convertibles reflected the spirit of the times. 18 1960-1981 After 70 years of success with one brand, Coca-Cola, the Company decided to expand with new flavours Fanta, originally developed in the 1940s and introduced in the 1950s; Sprite followed in 1961, with TAB in 1963 and Fresco in 1966. In 1960, The Coca-Cola Company acquired The Minute Maid Company, adding an entirely new line of business juices to the Company. The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. Advertising for Coca-Cola, always an important and exciting part of its business, really came into its own in the 1970s, and reflected a brand connected with fun, friends and good times. The international appeal of Coca-Cola was embodied by a 1971 commercial, where a group of young people from all over the world gathered on a hilltop in Italy to sing "I'd Like to Buy the World a Coke."In 1978, The Coca-Cola Company was selected as the only Company allowed selling packaged cold drinks in the People's Republic of China. 1982-1989 The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called "intelligent risk taking." Among his bold moves was organizing the numerous U.S. bottling operations into a new public company, Coca-Cola Enterprises Inc. He also led the introduction of diet Coke, the very first extension of the Coca-Cola trademark; within two years, it had become the top low-calorie drink in the world, second in success only to Coca-Cola. One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola, the first change in formulation in 99 years. In taste tests, people loved the new formula, commonly called “new Coke.” In the real world, they had a deep emotional attachment to the original, and they begged and pleaded to get it back. Critics called it the biggest marketing blunder ever. But the Company listened, and the original formula was returned 19 to the market as Coca-Cola classic®, and the product began to increase its lead over the competition a lead that continues to this day. 1990-1999 The 1990s were a time of continued growth for The Coca-Cola Company. The Company's long association with sports was strengthened during this decade, with ongoing support of the Olympic Games, FIFA World Cup football (soccer), Rugby World Cup and the National Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR racing, connecting the brand with one of the world's fastest growing and most popular spectator sports. And 1993 saw the introduction of the popular "Always Coca-Cola" advertising campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New markets opened up as Coca-Cola products were sold in East Germany in 1990 and returned to India in 1993. New beverages joined the Company's line-up, including Power sports drink, children‟s fruit drink and bottled water. The Company's family of brands further expanded through acquisitions, including Limca, Maaza and Thums Up in India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage brands in more than 120 countries around the world. By 1997, the company already sold 1 billion servings of its products every day, yet knew that opportunity for growth was still around every corner. In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well into its second century, the Company's goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. Coca-Cola is committed to local markets, paying attention to what people from different cultures and backgrounds like to drink, and where and how they want to drink it. With its bottling partners, the Company reaches out to the local communities it serves, believing that Coca-Cola exists to benefit and refresh everyone it touches. From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the world‟s most ubiquitous brand, with more than 1.4 billion beverage servings sold each day. When people choose to reach for one of The Coca-Cola Company brands, the Company wants that choice to be exciting and satisfying, every single time History of Bottling 20 Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 … A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca- Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 … The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United 21 States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 … Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 … Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s … Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fuelled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s … International expansion Led by long-time Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca- Cola was being bottled in 44 countries. 1940s … Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General 22 Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s … Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type the traditional 6.5-ounce contour bottle, or larger servings including 10, 12 and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s … New brands introduced Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand Coca- Cola in the 1960s. Mr.Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by Powerade and Dasani in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s … Consolidation to serve customers As technology lead to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s … New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century … The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honour local 23 identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows. HINDUSTAN COCA-COLA BEVEAGES PRIVATE LIMITED (HCCBPL) ABOUT THE COMPANY Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26 th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parle‟s plants and a well set bottling network, an excellent base for rapid introduction of the Company‟s International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favour of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10- 24 tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. “Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to aisi” for Urban India and “ThandaMatlab Coca-Cola” for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of India‟s new Coca- Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide. (Fig no-2) COBO FOBO CONTRACT PACKAGING 25 HCCBPL is large beverage bottling company, responsible for the manufacture, package, sale and distribution of beverage under the trademark the Coca-Cola Company, USA, in India. HCCBPL has an extensive distribution system spanning more than a million outlets operating with world class execution standards. The focus of the system is to develop strong customer value while delivering preferred choice of refreshment at an arm's length of desire to the consumer. HCCBPL's Product Portfolio has an extensive range to choose from: Sparkling Beverages – Coca-Cola, Diet Coke, Thums Up, Sprite, Fanta, Limca, Kinley Soda, Schweppes Tonic Water. Still Beverages – Maaza, Minute Maid Pulpy Orange, Minute MaidNimbu Fresh, Minute Maid100% Juices (Apple, Grapes, Orange, and Mixed Fruit), Minute Maid range of fruit flavoured drinks. Over the years, Hindustan Coca-Cola Beverages Pvt. Ltd. has focused on building world class operations based on principles of safety, profitability and solid governance to claim sustained growth. As part of our journey of moving towards being a World Class Company, we have strengthened our organization in terms of Supply Chain, Infrastructure, Market Execution, People, Processes, Compliance, Governance and Route- to-Market. This approach has enabled us to build our portfolio through launching new packs and brands, coupled with a competitive pricing strategy based on a balance of value pricing and eliminating waste. Vision: To make every Indian‟s first choice of refreshment available within easy reach. Mission: To build a consumer driven, customer-focused, profitable, sustainable, and socially responsible business in India. Values 26 Leadership Empowerment Passion for wining Citizenship Integrity Accountability Teamwork INDIAN BUSINESS MODEL:- (Fig no-3) 27 PRESENT SCENARIO Latter on when globalizing our economy opening it up for MNC‟s like Pepsi, Coca-Cola, and Cadbury etc to enter the real cola war had begun.Although the import and manufacture of international brands like coke andPepsi is enhanced in India, the local brands are being stabilized byadvertisement good quality and low cost. Ever since the entry of Pepsi, the competition between Pepsi and Parle was a battle of small arms, as the alliance of Parle with coke and constant reveal of sophisticated management techniques by Coke and full fledge highly innovative promotional activates by Pepsi has really made the industry as abattle field of cannons.One can make above statement by seeing advertisement expenditure andinvestment of Coke and Pepsi. Coke is expected to pump 2400 crores and Pepsi 300 crores into the Indian markets apart their initial investment of 250 croresand 500 crores respectively. MARKET SHARE Cola products account for nearly 61-62% of the total soft drink market.The brands that fall in this category are Thumps Up, Diet Coke, DietPepsietc. Non-Cola segments which constitute 36% can be dividedinto four categories based on the types of flavors available namely orange,cloudy Lime, Clear Lime and mango. Coca Cola, king of soft drinks industryboasts a global market share of around 50% followed by Pepsi Company atabout 21% and Cadbury Schweppes at 7%. HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED, BIDADI-BANGALORE. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. Hindustan Coca-Cola Beverages Private Limited, Bidadi unit was formally inaugurated on 12 February, 2000 by Chief Minister Mr. S. M. Krishna. The Bidadi Unit is spread over an area of 15 acres. The company follows the policies of The Coca-Cola Company, Atlanta and also by the Indian headquarters, Gurgoan. The Bidadi unit is spread over an area of 15 acres. This is the State of the art bottling facility with four lines one of which is a pet line. 28 Manufacturing Capability There are 2 Bottling lines in Bidadi plant. Out of 2 PET line, one has a capacity of 40000 bottles per day (carbonated soft drinks), one water line which has a capacity of 40000 bottles per day. The brands produced here include Coca-Cola, Sprite, Fanta,Kinley Mineral Water. Hindustan Coca-Cola Beverages Private Limited has 3 COBO (Company Owned Bottling Operations) region and 27 COBO units. Hindustan Coca-Cola Beverages Private Limited handles manufacturing of finished products, selling and delivery to customer.HCCBPL‟s vision is to createa World Class Selling Organization and a Culture of Operating Excellence to continually improveconsumer experience, customer satisfaction, employee capability and company profitability. (Source:www.hindustancoca-cola.com) 29 CHAPTER 4 ORGANISATIONAL HIERARCHY 30 The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL: In Cola section Coca Cola, Diet Coke, Thums Up In Lemon Section Sprite, Limca In Orange Section Fanta Orange 31 In Juice Section Maaza, Minute Maid PULPY ORANGE In Soda Water and Bottled Mineral Water Section Kinley Soda, Kinley Mineral water 32 1. Organization Structure India Organization Structure (Fig no-4) The above illustrated figure shows the hierarchical structure of Coca-Cola Company in India. Here CEO is the head of the company from where authority flows to sales department, supply chain department, finance department, human resource department and regional vice president. CEO VP, Sales VP, Supply Chain CFO Director , HR Region VP East Region VP, North Region VP, South Region VP, Central 33 Region Organization Structure (Fig no-5) The above figure shows the regional organizational structure and flow of authority through regional vice president to its subordinates. Region VP AGM/AOD Unit 1 AGM/AOD Unit 2 AGM/AOD Unit 3 AGM/AOD Unit 4 Region Finance Region HR Region Customer Service Region External Affairs Region Cold Drink Region Legal Region Microbiologist Region Director/ Manager Market Execution Region Capability Development Region Channel 34 CHAPTER 5 FUNCTIONAL DIVISION 35 Hindustan Coca Cola Beverages Private Limited, Bidadi Unit Organization Structure Direct Report to Factory Manager PRODUCTION DEPARTMENT The function of this department is to execute the production and production related activities in an effective and efficient manner. (Fig no-6) Factory Manager Manager Production Manager Maintenance Manager Quality Manager Shipping Team Leader- Stores Manager Human Resources 36 Department Structure-2 (Fig no-7) Factory Manager HOD PRDODUCTION AND MAINTAINENCE 4 LINE MANAGERS HOD QUALITY 4 QUALITY EXECUTIVES ADMI NISTR ATIO N Depart ment 37 PRODUCTION PROCESS 38 39 Fig:Production Layout) 40 Figure: Bottling and Filling Process(Fig no-8) Figure: Coca-Cola Filling and Bottling Process Raw Water Plant. BIDADI LAKE WATER TREATMENT PLANT SUGAR DUMPING AREA SYRUP ROOM PET BOTTLING PROCESS PERFORMA BLOWN FILLING PROCESS CHECKING WITH VIDEO SENSOR LABELLING PALLETIZING 41 The whole production process is shown in the above chart which shows how raw material passes through different process and results into the finished products. First of all raw water is collected from the Bidadi lake in Raw Water Plant. Collected water is then purified through 7 layer of sedimentation process. Purified water is then passed through carbonated filter to make soft water. Water filtered through carbonated filter is moved to syrup room where it is mixed with concentration and sugar. Then this solution is passed to bottling floor for being filled up in pet bottles. Pet bottles are made by blowing the Performa received from certified suppliers. Performa blowing is done with nitrogen gas to make it hard bound. As the Performa takes the shape of the pet bottle it will be filled up with solution. Then, bottle is labelled with appropriate labels. Quality assurance is being implemented through the use of video sensors for overall production process. Any flaws found during this process will lead to rejection of bottles automatically. Finally, the pet bottles are moved through automatic palletizer to wrap with thin plastic so that it is ready for shipment. CPK =MIN( USL-MEAN, MEAN-LSL) 3σ 3σ Cp=USL-LSL/6σ Importance of Cp and Cpk To ensure quality. To ensure that process capability defect free. To reduce the wastage. 42 QUALITY DEPARTMENT To maintain Quality of product while purchasing and producing product. The quality system is committed to ensure: Consumer satisfaction. Protection and enhancement of the trademark and brand image. Production of 100% quality product. Responsible; environmental friendly citizen. The quality is maintained at different levels; they are Production material – sugar, water and co2. Auxiliary material – water, treatment and syrup treatment. Packing materials- cartoons, labels etc. 43 Department Structure (Fig no-9) Responsibilities of Microbiologist Responsible for Microbiological testing, water sampling, online samples and market samples. Responsible for documentation for test reports and generation of other reports as required and proper handling and filling of reports. Responsible for housekeeping/ sanitation parameters in plant including lab. Responsible for periodic checking shelf life samples and market samples. Responsible for incoming raw materials checking. Responsible for Responsible for calibration of hydrometer/ density meter. Factory Manager Quality Manager Team Leader-QA Process Executive- QA Team Leader- QA Line Incharge Executive- QA Trainees RMPM Executive QA Microbiolog ist Executive- QA Fountain Chemist Executive QA 44 Chemist Responsible for quality testing of raw materials of production. Supervisor of the syrup preparation process. Responsible for checking quality parameters. Test of shelf sample, market sample. Documentation of syrup reports/ preparation of various reports. Responsible for quality parameters for online production process. Executive Responsible for quality norms for entire plant. Responsible for ensuring product specification and mixing instruction. Responsible for overall required quality test of raw materials, packing and finished products as per specification. KAIZEN PROCESS Kaizen meaning „continuous or ongoing improvement‟ in Japanese it is an inseparable aspect of the management of quality. Kaizen has basically do with small, step by step continuous improvements. Kaizen philosophy believes that people at all levels, including the lowermost level in the organizational hierarchy. APPLICATION OF KAIZEN AT HCCBPL Customer orientation. Total quality control Quality circles Suggestion system Total Productive Maintenance(TPM) Productivity improvement New product development Labour-management relation Zero defects Just-in-time system 45 MAINTAINANCE DEPARTMENT Department Structure (Fig no-10) Ninety per cent of the problems come through cleanliness.in a year we do health check of plant for 4 times ayear. Maintenance Department has 3 different approaches to maintenance. Breakdown maintenance is done when the breakdown has already occurred. The Purpose of Breakdown maintenance is to reduce the downtime losses and reduce the impact of the breakdown on immediate sales. Preventive Maintenance is best for equipment that has unpredictable performance, complexity and history of erratic behaviour. In Predictive maintenance, they anticipate probable problems that can happen. The functions of Maintenance Department includes Lab Equipment maintenance Maintenance of Forklift Bottle washer maintenance Electrical maintenance Facility and Grounds maintenance Filler maintenance Fountain Equipment maintenance Maintenance of PET and Maaza line Equipment. Factory Manager Manager Maintenance Team Leader- Maintenance Executive- Maintenance 46 SHIPPING DEPARTMENT Function of Shipping Department includes To maintain glass breakage below 1.1 % of total production. To achieve 100 % dispatches for trade against order within 24 hrs. Achieve GMP (Good Manufacturing Practices) of 85 % Department Structure (Fig no 11) Responsibilities of Manager Responsible for loading/ unloading operations and documentations. Responsible and ensure brand wise inventory handling of empties/ fills. Responsible for allocation of labour in shipping process (load/ unload). Ensure that warehouse and yard is always clean and manages storage space. Responsible for proper handling/ storage of finished products transferred from production to warehouse. Responsible for maintaining accurate physical counting of empties on a daily basis. Prepare reports with respect to empties sorting and bottle breakage during loading/ unloading operations. Factory Manager Manager - Shipping Executive- Shipping 47 Executives Responsible for sales invoice verification on a daily basis. Responsible for preparation of waybill register. Responsible for periodical verification of all excisable materials and identify/ notify. Responsible for loading/ unloading operations and documentation. Responsible and ensure brand wise inventory handling of empties/ fills. Responsible for allocation of labour in shipping process (load/ unload). Responsible for the warehouse and yard is always kept clean and manage storage space. Responsible for proper handling/ storage of finished products transferred from production to warehouse. Responsible for maintaining accurate physical counting of empties on a daily basis. Prepare reports with respect to empties sorting and bottle breakage loading/ unloading operations. Responsible for selection and monitoring of transport activities. Responsible for maintaining GMP norms in finished goods. Responsible for proper dispatches of customers within stipulated time. 48 STORES DEPARTMENT Department Structure (Fig no-12) Functions The process of stores department starts from Receipts and then issuing and Inventory Planning. In Inventory planning there is a status ID for materials i.e. Red- Reject, Green- accepts and Yellow-Onholds. Using FEFO (first Expiry First Out) Responsibilities Direct responsibility for all stores including raw materials, packing materials and spare parts. Direct responsibility for purchase and availability of all materials for production. Direct responsibility for control of raw materials, packing materials and spares. Direct responsibility for maintaining the record of receipts, issues and reconciling physical inventory. Direct responsibility for implementation for inventory management systems. Direct responsibility for building constructive relationship with material suppliers and giving delivery schedules for raw material and spares. Factory Manager Team Leader- Stores Executive- Stores 49 Direct responsibility for identification of inspection and test status for all materials. Provide assistance in negotiations with suppliers and developing local suppliers. Direct responsibility for ensuring stock rotation of raw packing materials. Direct responsibility for selection, coaching, feedback and development of store personal. Direct responsibility for discipline in store work force. Direct responsibility for ensuring audit of inventory records. Direct responsibility for reporting inventory to the relevant managers and personal. Direct responsibility for responsibility of personnel, facilities and equipment. SUPPLY CHAIN DEPARTMENT Department Structure: (Fig no-13) Factory Manager Manager - Supply Chain Team Leader- Supply Chain Executive - Supply Chain 50 Functions After receiving information from user department, it is the responsibility of the Supply chain Department to get the quote from vendor. After Purchase order, ensure for early release from Finance Department and timely informing to vendor/ User Department and maintaining all details. Track between Purchase Requisition to Purchase Order. To maintain weekly report on money spent on each department. To maintain list of authorised dealers and distributors. To maintain report on Raw material and Purchase material tracking, Critical item list, Material in Transit. Filing Purchase order with signature as per Certificate Of Analysis. All Purchase order amendments should be made after approval from Finance Department. MARKETING DEPARTMENT (Fig no-14) A.G.M Marketing Officer Marketing Manager Marketing Executive Office Staff 51 Marketing Mix Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing objectives. It has a classification for these marketing tools. These marketing are classified and called as the Seven Ps i.e. Product, Positioning, Packaging, Price, Promotion, Place & Distribution and Physical Distribution Issues. The most basic marketing tool is product which includes product design, quality, features, branding, and packaging. A critical marketing tool is price i.e. the amount of money that customers pay for the product. It also includes discounts, allowances, credit terms and payment period. Place is another key marketing mix tool. And it includes various activities the company undertakes to make the product accessible and available to the customer. Some factors that decide the place are transport facilities, channels of distribution, coverage area, etc. Promotion is the fourth marketing mix tool which includes all the activities that the company undertakes to communicate and promote its product to target market. Promotion includes sales promotion, advertising, sales force, public relations, direct marketing, etc. Product Many products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays or a movie, where you enjoy the benefits without owning the result of the service. Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product is the part and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products. Positioning Once a business has decided which segments of the market it will compete in, developed a clear picture of its target market and defined its product, the positioning strategy can be 52 developed. Positioning is the process of creating, the image the product holds in the mind of consumers, relative to competing products. Coca Cola and Franklins both make soft drinks; although Franklins may try to compete they will still be seen as down market from Coca Cola. Positioning helps customers understand what is unique about the products when compared with the competition. Coca Cola plan to further create positions that will give their products the greatest advantage in their target markets. Coca Cola has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market. Most people create an image of a product by comparing it to another product, thus evident through the famous battles between Coca-Cola and Pepsi products. Packaging Packaging, which is not as highly perceived by businesses, is still an importantfactor to examine in the marketing mix. Packaging protects the product during transportation, while it sits in the shelf and during use by consumers, promotes the product and distinguishes it from the competition. Packaging can allow the business to design promotional schemes, which can generate extra revenueand advertisements. Coca-Cola has benefited from packaging the product withincentives and endorsements on the labelling as a promotional strategy to increase its volume of sales and revenue. Price: Price is a very important part of the marketing mix as it can affectboththe supply and demand for Coca Cola. The price of Coca Cola‟s products is one of the most important factors in a customer‟s decision to buy. Price will often be the difference that will push a customer to buy our product over another, as long as most things are fairly similar. For this reason pricing policies need to be designed with consumers and external influences in mind, in order to effectively achieve a stable balance between sales and covering the production costs. Price strategies are important to Coca Cola because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with a good level ofprofit. Long before a sale was ever made.Coca Cola had developed a forecast of consumer demand at different prices which inevitably determined whether or not the product came on the market, as well as the allocation of adequate money and resources to produce promote and distribute the product. 53 Pricing Strategies andTactics: The pricing Strategy a business will use will have to focus on achieving themarketing plan‟s objectives and support the positioning of the product, and take external factors such as economic conditions and competitors in to account. There are 5 strategies available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of grabbing a foothold in the market and won a market share. Its product penetrated the marketplace. Once customer loyalty is established as seen with Coca Cola it is then able to slowly raise the price of its product. There has been a fierce pricing rivalry between Coca Cola and Pepsi products as each company competes for customer recognition and satisfaction. Till now it appears as if Coke has come up on top, although in order to gain long term profits Coke had to sacrifice short term profits where in some cases it either went under of just broke even, but as seen it has been all for the best. Pricing Methods Good pricing decisions are based on an analysis of what target customersexpect to pay, and what they perceive as good quality. If the price is too high,consumers will spend their money on other goods and services. If the price is tool, the firm can lose money and go out of business. Pricing methods include: Cost based Pricing, Market based pricing and Competition based Pricing. Over the years Coca has lost ground here in itspricing but has regained its strength as it employed the Competition-based pricing method which allowed it to compete more effectively in the soft drink market. Leader follower pricing occurs when there is one quite powerful business in the market which is thought to be the market leader. The business will tend to have a larger market share, loyal customers and some technological edge, thus the case currently with Coke; it was first the follower but through effective management has now become the leader of the market and is working towards achieving the marketing objectives of the Coca Cola. Coke controls 42% of the total carbonated soft drink market, compared with Pepsi's 30%, according to Beverage Digest. 54 Promotion Olympic2012IPL EURO 2012 In today‟s competitive environment, having the right product at the rightplace in the right place at the right time may still not be enough to be successful. Effective communication with the target market is essential for the success of the product and business. Promotion is the p of the marketing mix designed to inform the market place about who you are, how good your product is and where they can buy it. Promotion is also used to persuade the customers to try a new product, or buy more of an old product.The promotional mix is the combination of personal selling, advertising, sales promotion and publicrelations that it uses in its marketing plan. Above the line promotions refers to mainstream. PUSH & PULL STRATEGY PUSH STRATEGY HCCBPL is using Push strategy in which they use its sales force and trade promotion money to induce intermediaries to carry, promote and sell the product to end users i.e. consumers.For example-as HCCBPL is giving free pet bottles and other trade schemes to distributors, agency owners and retailers. PULL STRATEGY HCCBPL is also using Pull strategy in which they are using advertising and promotion to persuade consumers to ask intermediaries for the company brand product by this way HCCBPL inducing customer to order it from shopkeeper. For example-HCCBPL is using flanges, display racks, tier racks, standees, mobile hangers and visicooler brand strips. 55 Media Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines. Because most of the target is most likely to be exposed to media such as television, radio and magazines, Coca Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coca Cola Products. Coca Cola also utilizes below the line promotions such as contests, coupons, and free samples. These activities are an effective way of getting people to give your product ago. Place and Distribution The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market.The distribution of products starts with the producer and ends with the consumer.One key element of the Place/Distribution aspect is the respective distribution channels that Coca Cola has elected to transport and sells its product. Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include: How far away the customers are; The type of product being transported; The lead times required; and; The costs associated with transport; There are four types of distribution strategies that Coca Cola could have chosen from, these are: intensive, selective, exclusive and direct distribution. It isapparent from the popularity of the Coca Cola s product on the market that the business in the past used the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service stations to your local corner shop, anywhere you go you will find the Coca Cola products. 56 Physical Distribution Issues Coca Cola needs to consider a number of issues relating to the physical distribution of its soft drink products. The five components of physical distribution are, order processing, warehousing, materials handling, inventory control, transportation. Coca-Cola must further try to balance their operations with more efficient distribution channels. Order Processing- Coca Cola cannot delay their processes for consumer deliveries (i.e. delivery to selling canter‟s), as this is inefficient business functioning and is portrays a flawed image of the product and overall business. Warehousing and inventory control- warehousing of Coca Cola products is necessary. Inventory control is another important aspect of distribution as inventory makes up a large percentage of businesses assets. Choosing the correct and desired inventory measure that Jackson‟s sees as most effective is vital. Jackson‟s must remember though that there are factors involved with inventory control that can hinder the products sales and customer perceptions (hazards, distribution from storage facilities, etc).Materials handling- this deals with physically handling the product and using machinery such as forklifts and conveyor belts. When holding products, then Coca-Cola has benefited from purchasing or renting respective machinery. Transportation- transporting Coca Cola products is the one most important components of physical distribution. Electing either to transport the sports drink by air, rail, road or water depends on the market (i.e. global, or domestic) and depends on the associated costs. The most beneficial transportation method for Coca Cola would be ROAD if the product were moved around from storage to the cost centres. 57 HUMAN RESOURCE DEPARTMENT Department Structure (Fig no-15) Major functions of HR Department are Recruitment. Training and development. Performance management system. Administration/payroll. Employee relation. Legal compliances. Compensation and benefit. Retirement. Recruitment Recruitment policy: The Factory Manager and HR manager will recruit the particular person and they will close within 30 days. Area HR Manager Factory HR Manager Executive HR Security Officer Administration Support 58 Manpower sources of Organization: The manpower are recruited in the form of Consultancy, Employee Exchange, Employee Reference, Work Interview etc. For recruitment policy, they are not considering any reservation for any kind of category of employees. Selection In a selection committee there will be Factory Manager, HR & particular department head. For selection of employee, first it goes with department head then HR and Factory Manager. For technical people only they are conducting written exams. For other people, there will be direct interview. The interview is done by particular department head and HR manager basing on vacancy of job in particular department.After recruiting he will be sent toinductionprogramme for one day. Afterwards they will be send to each department for knowing the functioning and also for route to market. TRAINING AND DEVELOPMENT POLICY OBJECTIVES To equip associates with the knowledge, skills and attitudes to perform effectively on their current as well as anticipated future assignments To ensure that associates have the necessary skills to meet business objectives PROCEDURES The Manager, Management Development well meet with the functional heads at the beginning of each year to identify the training needs for each department. The training needs would be linked to the corporate objectives as well as the current competency levels of the associates. The training needs would be linked to the corporate objectives as well as the current competency levels of the associates. . Based on an analysis of the training needs identified, need-Based training programs are designed and an annual Training Calendar will be compiled. This document will be shared with the Executive Committee to get their feedback. 59 The training Calendar will be released within the one month of receiving all the appraisals. It will contain a brief description of the programs, the recommended target audience and the program schedules. Internal training programs will be conducted if there is a minimum of 8 participants for a given program. Facilitators for these programs will include the Manger, Management Development for monitoring. After attending the program, the associate will complete the Training Evaluation form and submit it to the Manager, Management Development for monitoring. After attending the program, the associate will complete the Training Evaluation form and submit it to the Manager, Management development. Associates attending outstation-training programs will be reimbursed expenses as per the travel policy guidelines relevant to them. This cost will be borne by each associate‟s department. OBJECTIVE To provide employees with an environment conductive to individual productivity, growth and development, consistent with business conditions and the operating needs of the company. It is the company’s policy to, Manage employee relations in a fair and consistent manner. Maintain effective communication practices Be aware of and responsive to employee needs Strive to maintain relationships among employees that merit their trust and confidence and create an environment to enhance the quality of work life. SERVICE CONDITIONS OBJECTIVE To ensure that all employee actions are consistent with the laid-out organizational policies. 60 CONDITIONS OF SERVICE An employee is required at all times to diligently and faithfully serve the company and is required to devote his/her whole time and attention exclusively to the business and interest of the company and to the best of his /her skill carry out his /her duties and attend punctually at the place or places where he/she is employed. Employees should hold themselves in readiness to perform any duties required of them to the best of their ability. TERMS OF EMPLOYMENT The terms of employment of any employee of the company are as per the details contained in their letter of appointment. The company reserves the right to amend, alter or change any of the terms and conditions of employment. GENERAL RULES AND REGULATIONS COMMUNICATION The company firmly believes that effective communications at all levels significantly aids efficient operation. Should any associate have any queries/questions regarding his/her work, the associate is encouraged to discuss them with his/her supervisor/manager. From time to time, the departmental head or the Country Head may call special communication meetings to ensure that all staff is kept informed of significant issues. Other announcements will either be circulated or posted on the Company. SEXUAL HARASSMENT The company has a long-standing commitment to maintaining a work environment free of all forms of discrimination, including sexual harassment, for all employees. All employees are encouraged to cooperate and participate in helping the company maintain an environment that is conducive to individual productivity, growth and development. 61 ATTIRE POLICY The company is committed to upholding its professional image, specifically as relates to dress and appearance of employees. It is expected that all employees will be dressed in an acceptably professional manner while on the job. All employees are required to wear standard business attire or, if required working clothes and / or uniforms as issued by the company, from Monday through Thursday, during working hours. Casual clothes like T- shirts, jeans, etc., are not allowed in the office during normal working hours except Fridays. TRAVEL RULES Travel and hotel stays are governed by the guidelines contained in the travel policy/guide, issued by the admin department. Any employee seeking clarifications on any of these guidelines should contact the HR Manager. EMPLOYEE PERSONNEL FILES The company maintains personnel files for employees who contain information required for business and legal purposes. FINANCE DEPARTMENT Department Structure (Fig no-16) Area Finance Manager Manager- Finance Executive Finance 62 The finance manager has to report to the AGM and regional finance manager. The finance department has the power to take any financial decisions like allocation of budgets, approval of budgets etc. The finance department also has the following functions: Follow up of the collections. Preparation of the financing reports (distributors AR-closing stock) Claims handling and distributors Reconciliation. Getting the report from the S&D on the sale proceeds. During the monthly closing the finance department has to ensure the AR reconciliation. The scope of financial analysishowever depends on its purpose from an investor point of view, predicting the future is what financial statement analysis is useful both as a way to anticipate future conditions. 63 CHAPTER 6 MY JOB EXPERIENCE 64 Following are my on job experience for one month‟s working at HCCBPL,Bidadi 1 st week: On 4 th July organisation study was initiated.I met Mr.Amresh Sir, the quality HOD. He provided a brief introduction about the company and showed the various manufacturing units and the process.Treatment of river water from Bidadi Lake was explained. The water is treated in order to make it chlorine free and passed through sand filters and activated carbon filters for further purification. Then it pumped to syrup room where it is mixed with concentrated syrup. Manufacturing process of syrup was explained. Highest quality refined sugar is mixed with treated water to form simple syrup which is pumped through filters to ensure purity and clarity. Carbonated filter paper is used for this purpose. At this stage different proportion of sugar is added for manufacturing the syrup of concerned drink like Fanta,coke,spriteetc.Distinctive blend of ingredients are added in order to form the cola syrup. Now this syrup is pumped to de-aerator proportional cooler carbonator where a proportionate amount of de-aerated water is mixed which is further cooled and carbonated. Now the syrup is ready for filling. 2 nd week: In second week, manufacturing process of pet bottles was explained.Pet bottles are made by blowing the Performa received from certified suppliers. Performa blowing is done with nitrogen gas to make it hard bound. As the Performa takes the shape of the pet bottle it will be filled up with solution. Then, bottle is labelled with appropriate labels. Quality assurance is being implemented through the use of video sensors for overall production process. Any flaws found during this process will lead to rejection of bottles automatically. Finally, the pet bottles are moved through automatic palletizer to wrap with thin plastic so that it is ready for shipment. 3 rd week:I was mainly placed in the production and maintenance department guided by Mr.Anmol HOD. Bottle Parameter test was done by us. Testing is done in lab and sometimes from market sample is taken and testing is done.1000ml pet water bottle quality testing was done. Gate area thickness, base clearance ,height, base thickness, label panel thickness and upper shoulder thickness, removal torque, pressure test, label panel weight test, upper shoulder weight test, base weight test, bottle burst test, bottle diameter, net content test was done. From this reading, cp and cpk value was calculated. 4 th week: In this week different department like quality department, maintenance department,shippingdepartment,store department, 65 supplychain,HRdepartment,financedepartmentfunction,managersresponsibilities. Procedures were explained in the brief.Ninety per cent of the problems come through cleanliness.in a year we do health check of plant for 4 times a year. Maintenance Department has 3 different approaches to maintenance. Breakdown maintenance is done when the breakdown has already occurred. The Purpose of Breakdown maintenance is to reduce the downtime losses and reduce the impact of the breakdown on immediate sales. Preventive Maintenance is best for equipment that has unpredictable performance, complexity and history of erratic behaviour. 66 CHAPTER 7 SWOT ANALYSIS 67 PepsiCo PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. It is 66.41billion Dollar Company with274,000 employees. The company's soft drinks include Pepsi, Mountain Dew and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo's success is the result of superior products, high standards of performance and distinctive competitive strategies. Nestle It is 92.16 billion company with333,000 employee.Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavoured milk products also have become substitutes to the products of the company due to growing health awareness among people. Dabur It is 1 billion dollar company with6,154 employees.Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange. 68 STRENGTHS DISTRIBUTION NETWORK The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. STRONG BRANDS The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca- Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand.Itwas estimated that the Coca-Cola brand was worth$70.45billion. 69 LOW COST OF OPERATION The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs. Improved quality control. Latest technology. Heavy investment in both infrastructure and sales promotion campaigns. Modified and attractive packaging. Strong advertising network. WEAKNESSES LOW EXPORT LEVEL The brand produced by the company are brands produced worldwide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, Malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India. SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE The Company‟s operations are carried out on a small scale and due to Government restrictions and „red-tapism‟, the Company finds it very difficult to invest in technological advancements and achieve economies of scale. Gaps in distribution system during peak season Same old distributers, co loosing grip from many such markets. Fear of retrenchment among the workers. Customer satisfaction level goes down during peak season. 70 OPPORTUNITIES LARGE DOMESTIC MARKETS The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market. EXPORT POTENTIAL The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market. HIGHER INCOME AMONG PEOPLE Development of India as a whole has led to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales. Highly potential and huge market. Highly potential untapped rural market. Distribution gaps and can be rectified by appointing new distributor and more effective coverage of outlets. 71 THREATS IMPORTS As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. TAX AND REGULATORY SECTOR The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems. SLOWDOWN IN RURAL DEMAND The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the company‟s products. Stiff competition. Illegal distribution done by some unauthorized fat dealers. Changing of consumer preference. 72 CHAPTER 8 FINDINGS,SUGGETIONS AND CONCLUSIONS 73 FINDINGS 1. The organization has good working environment provided by the management. 2. Staff and workers were fully involved in their work during shift hours. 3. Canteen facility is good with fresh and hygiene food. 4. Most of the people have positive attitude towards the organization. 5. Management is very much concerned for the workers welfare. 6. HCCBPL was maintaining good relation between employee and employer. 7. Different welfare programs are conducted in different departments. 8. The employer- employee relations in this HCCBPL is very good. 9. They maintain good safety measures to their employees as well as for theworkers in the organization under the welfare programs. 10. The HCCBPL provides various non-statutory welfare schemes also such asmedical facilities, insurance and regular medical check-up. CONCLUSIONS AND SUGGESTIONS It was a very exciting Organizational Study at Hindustan Coca-Cola Beverages Private Limited, Bidadi, Bangalore. We have seen how the management functions are practiced. It was a great experience to go there and get a practical touch with the theory and concepts what we have studied in books. We can conclude that Coca-Cola has a good image attached to it and hence it should maintain its image, because today‟s scenario people are very much conscious of their health and look for value of their money.Quality test of bottle,water coke was done in laboratory. Hence with such a great brand name established for them is a real advantage for them and with this can reach to new heights. 74 BIBLIOGRAPHY Books: Organizational Behaviour-k Aswathappa. “Organizational Culture” Publisher is Himalaya Publishing House. 9 th Edition. Page N0-529-596. 649-666. Business Environment-Francis cherunilam. Part-1 an Overview of Business Environment. Publisher is Himalaya Publishing House. Eighteenth Revised Edition:2008..Page no-1-137 Production and Operations Management- SN charry. Chapter-11.New Quality Concepts and Initiatives, Total Quality Management. Publisher is Tata McGRAW HILL. Third Edition.Page no-11.13 Marketing Management-Dr.C.B Gupta &Dr. N. Rajan Nair “Marketing Mix” Publishers is Sultan Chand & sons Edition-2004 Websites: http://news.bbc.co.uk http://www.coca-cola.com http://www.google.com www.coca-colaindia.com www.superbrand.com www.wikipedia.org