Final Internship Report On Pepsi Co.

On Pepsi Cola International
Nau-Bahar Bottling Company, Gujranwala
Submitted To:
HR Executive Mr. Basharat Zia
Submitted By:
Afnan Umar Khan University of the Punjab, Gujranwala Campus

Kashif Mahmood University of the Punjab, Gujranwala Campus
Salman Dar Lahore School of Economics, Lahore
Syed Sajjad Haider Baha-ud-Din Zikriya University, Multan
Date of Submission: 28.08.2010
NBC, 38 S.I Gujranwala, Pakistan.
University Of the Punjab, Gujranwala Campus

Page 1
Internship Report On NBC
Introduction to Report
This report is about Pepsi CO. (Nau-Bahar Bottling Company). This report is the part of my B.Com(Hons)
degree which is compulsory for us to complete internship in any organization. The purpose of this internship is
to provide an opportunity to the students to observe the practical applications of their background professional
study. In this report I’ve given the brief history of the Pepsi CO. and about Nau-Bahar Bottling Company,
departments of the NBC, their functions and working of the some departments as well. I also include work done
by me in NBC and Financial Analysis of the PEPSI CO and SWOT analysis of the NBC. And finally give the
recommendations about the working of NBC.
University Of the Punjab, Gujranwala Campus Page 2

A brief History of Pepsi

Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb
Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.
The information published here is provided by PepsiCo, Inc. and may be accessed at their site: www.pepsi.com.
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named
Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a
refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the
beverage known around the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering
place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut
extract, vanilla and rare oils, became so popular his customers named it "Brad's Drink." Caleb decided to
rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to
grow, convincing him that he should form a company to market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent
Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But
soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent
Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids
Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew
from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40
by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of
Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-
Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation.
They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than
100,000 gallons of syrup per year.
Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern
pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A
bully drink...refreshing, invigorating, a fine bracer before a race."

The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn
transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even
mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his
"keen and energetic business sense."
Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink
Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing business increased drastically.
Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola.
Caleb was forced into a series of business gambles just to survive, until finally, after three exhausting years, his
luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn't until a successful candy
manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was
president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He
saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola
Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After
five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand.
One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered from a
Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi would
earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the
nation was in the early stages of a severe economic decline that came to be known as the Great
Depression.
1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a carbonated soft
drink he created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is derived from two of
the principal ingredients, pepsin and kola nuts. It is first used on August 28.
1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.
1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as
"Exhilarating, invigorating, aids digestion."
1905 A new logo appears, the first change from the original created in 1898.
1906 The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is
registered in Canada.
1907 The Pepsi trademark is registered in Mexico.

1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when he appears in
newspaper ads describing Pepsi-Cola as "A bully drink...refreshing, invigorating, a fine bracer before a race."
The theme "Delicious and Healthful" appears, and will be used intermittently over the next two decades.
1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1932 The trademark is registered in Argentina.
1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six
ounces.
1938 The trademark is registered in the Soviet Union.
1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase
consumer awareness of Pepsi's value advantage.
1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel,
Nickel" will eventually become a hit record and will be translated into 55 languages. A new, more modern logo
is adopted.
1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A
Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families
to record messages for armed services personnel overseas.
1943 The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink, Better Taste."
1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.
1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to
raise prices to competitive levels. The logo is again updated.
1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is
implemented with "The Light Refreshment" campaign.
1954 "The Light Refreshment" evolves to incorporate "Refreshing without Filling."
1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence
of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers
with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided
bottle.
1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the soon-to-be-famous
"kitchen debate" at an international trade fair. The meeting, over Pepsi, is photo-captioned in the U.S. as
"Khrushchev Gets Sociable."

1961 Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war
generation. "Now it's Pepsi, for Those who think Young" defines youth as a state of mind as much as a
chronological age, maintaining the brand's appeal to all market segments.
1963 In one of the most significant demographic events in commercial history, the post-war baby boom
emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand
belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes
advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers'
lifestyles and attitudes.
1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1966 Diet Pepsi's first independent campaign, "Girl watchers," focuses on the cosmetic benefits of the low-
calorie cola. The "Girl watchers" musical theme becomes a Top 40 hit. Advertising for another new product,
Mountain Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable
tag line, "Yaa Hoo, Mountain Dew!"
1967 When research indicates that consumers place a premium on Pepsi's superior taste when chilled, "Taste
that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product superiority. The campaign, while
product-oriented, adheres closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi
Generation campaign.
1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising strategy.
Youth and lifestyle are still the campaign's driving forces, but with "Live/Give," a new awareness and a
reflection of contemporary events and mood become integral parts of the advertising's texture.
1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feeling' Free" captures the mood
of a nation involved in massive social and political change. It pictures us the way we are-one people, but many
personalities.
1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi's taste is
superior.
1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies,"
a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an
instant commercial classic.
1979 With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an exuberant
celebration of the U.S. bicentennial, and Americans are looking to the future with renewed optimism. "Catch
that Pepsi Spirit!" catches the mood and the Pepsi Generation carries it forward into the '80s.

1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that
message to Pepsi Generation advertising. The answer…"Pepsi got your Taste for Life!" a triumphant
celebration of great times and great taste.
1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is right
and so is their soft drink. It's got to be "Pepsi Now!"
1984 A new generation has emerged-in the United States, around the world and in Pepsi advertising, too.
"Pepsi. The Choice of a New Generation" announces the change, and the most popular entertainer of the time,
Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the
most eagerly awaited advertising of all time."
1985 Lionel Richie leads a star-studded parade into "New Generation" advertising followed by pop music icons
Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are part of it, as are film and
television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice president
of the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J. Fox brings a special talent, style and
spirit to a series of Pepsi and Diet Pepsi commercials, including a classic, "Apartment 10G."
1987 After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular 850-square
foot electronic display billboard declaring Pepsi to be "America's Choice."
1988 Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic" commercial
named "Chase." "Chase" airs during the Grammy Awards program and is immediately hailed by the media as
"the most-watched commercial in advertising history."
1989 "The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation Ahead!"
1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe
Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray
Charles stars in a new Diet Pepsi campaign, "You got the right one baby."
1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls"
join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is
on its way. Supermodel Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's
updated logo and package graphics.
1992 Celebrities join consumers, declaring that they "Got to Have It." The interim campaign supplants "Choice
of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain Dew growth continues,
supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique
great taste of Dew, they've "Been there, Done that, Tried that."

1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as
best in U.S.
1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up
explaining the relationship between freshness and superior taste to consumers.
1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's
national advertising championship.
1996, Pepsi Cola domestic and international operations combined into Pepsi Cola Company. International and
domestic snack food operations combined into one business unit called Frito-Lay Company. Mountain Dew
launches a massive beeper network called "The Mountain Dew Extreme Network."
1997, Pepsi-Cola introduces new advertising campaign with the theme "Generation Next."
National roll-out of Aquafine bottled water
Pepsi Cola kicks off the celebration of its 1998 100th Anniversary with first worldwide bottler’s conference,
held in Hawaii. The event is held during the same time as first bottler's conference
1998 Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and
pour.
1999 Pepsi launches "The Joy of Cola" advertising campaign
2000 Pepsi Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi One and Diet
Coke as well as regular cola. Aquafine brand bottled water becomes the best selling brand of single-serve
bottled water in US retail channels
2001 Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola with
lemon are entering retail outlets in selected U.S. markets.
2002 Brand Pepsi has a new look.
2003 Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian Hockey Association, making
Pepsi the official soft drink. Pepsi-Cola trademark turns 100 years old.
2005 PepsiCo launches "Smart Spot" symbol in Canada. Pepsi Co. Celebrates 40th Anniversary
2006 Pepsi Celebrates 20th Consecutive Super Bowl with New Diet Pepsi Campaign
2007 Mountain Dew and AMP Energy sponsor the Winter X Games
Aquafina launches Aquafina Alive - a low calorie, vitamin-enhanced water beverage
2008 PepsiCo honored by Environmental Protection Agency as water efficiency leader

Pepsi Malaysia wins bronze award at the Malaysian Effie Awards for its marketing and advertising
achievements

History of Pepsi in Pakistan

Pepsi co la is very popular in Pakistan due to its popularity its take 69% share of soft drink market. Pepsi Cola
International has a good name in Pakistan and doing its business through franchising system. PCI has developed
the following 10 franchisers in Pakistan.
➢ Karachi
➢ Lahore
➢ Multan
➢ Faisalabad
➢ Gujranwala
➢ Peshawar
➢ Islamabad
➢ Sukkhar
➢ Hyderabad
➢ Quetta

Nau-Bahar Bottling Company

Pepsi co starts its operation in Pakistan in 1971 first time in Multan. And NBC also establish in 1971 and from
1974-79 NBC was producing the Coca Cola products. In 1980 NBC achieve the licenses of PCI and in May 27,
1981 its start the production of the Pepsi, in the same year NBC achieve the ISO 9002 certification. And in 2008
NBC start the production of &up. And its unit’s productions capacity is 100000 cases per day with 5
manufacturing’s plants.
The Area allotted to it, was Gujranwala Franchise. The franchise area consists of the following nine districts.
1. Gujranwala
2. Gujrat
3. Hafizabad
4. Mandi bhaudin
5. Jehlum
6. Sialkot
7. Narowal
8. Sheikhupura
9. Chakwal
NBC operates through the well establish network of a number of distributers. NBC have 187 Distributers. The
Company has two type of delivery system i.e.
➢ Director delivery system

➢ Indirect delivery system
The basic difference between the direct and the indirect delivery system is that in a direct distribution system,
the company spends its own resources while in an indirect distribution; the dealer spends his own resources on
all the factors which increases the sales volume:
Direct Delivery System
Manufacturer Retailers Customers

Indirect Delivery System
Manufacturers Distributor Retailers Customers
Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment,
social, economic - creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit
society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company
Mission
Our mission is to be the world's premier consumer Products Company focused on convenient foods and
beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and
enrichment to our employees, our business partners and the communities in which we operate. And in
everything we do, we strive for honesty, fairness
Objective
The major objective of the Nau-Bahar Bottling Co. is to manufacture and provide the best quality which must
meet the national and international standards. The company is committed to provide the maximum level of
customer satisfaction.
Management Hierarchy

S
Assistant
General
HR
QC
&
Shipping
Purchase
Production
Marketing
General
Finance
Publicity
Audit
Store
MIS
D
Manager
Plant
Manager
Mangers
Manager
Manager
Manger
Manager
Managing
& Services
Director
(Out
Marketing
Director
Manager
Manager
Manager
(Local
Sales)
&
Manager
Services
Sales)

Organizational Profile
Organization: Nau-Bahar Pepsi cola industry

About employees: has a moderate and big plant. It
Nau-Bahar Bottling can produce 600 bottles in one
Company There are 2000 employees minute. It has also the water
Address: attached with the production treatment plant which can take
S.I.E, Model Town, Gujranwala, department in with about 800 raw water from 500 dept, treat
Pakistan labors are permanent and and filter it and then store it.
others are on contract base. Plant can store 20’000 gallons
Nau-Bahar is a largest franchise 120 employees attaches with
of Pepsi cola International the sales and other
.producing and distributing departments.
international brands like Pepsi, Location Advantage
teem, & 7up and Mountain
dew .plant is situated in Water level is up than other
Gujranwala, Pakistan locations and quality of water is
good, due to this it is cost
effective.
Plant capacity

COMPLETE PRODUCT LINE OF NAUBAHAR BOTTLING

BRANDS PACKING UNITS VOLUME
250 ML 24 bottles per case 250 ML per bottle
1500 ML(PET) 6 bottles per case 1500 ML per bottle
PEPSI POST MIX 1 Cylinder 114000 ML
330 ML CAN 12 bottles per case 330 ML per bottle
300 ML(NR) 12 bottles per case 300 ML per bottle
MIRINDA POST MIX 1 Cylinder 96000 ML
TEEM POST MIX 1 Cylinder 114000 ML

7UP FREE 1500 ML(PET) 6 bottles per case 1500 ML per bottle
7UP 1000 ML 12 bottles per case 1000 ML per bottle

COMPANY (NBC)

Fields of Activities
Nau-Bahar Bottling Company is the franchise of Pepsi Cola International in Pakistan which is
the largest franchise in Asia. NBC is performing all its operations through its different
departments. Company only receives the basic formula from PCI while all other activities are
performed by the NBC itself.
Following are the different departments of NBC…
➢ HRM
➢ MIS
➢ MRD
➢ Purchase
➢ Production
➢ Marketing and sales
➢ Cash and accounts
➢ Audit and Taxation
➢ Post Mix

Human Resource Management Department
Recruitment procedure in NBC

As it is a trend in the market of all organizations that they offer jobs to the general public to meet
the organizational needs with the fresh knowledge and skills.NBC offers job opportunities by
different ways for the fresh candidates to general public. The major sources of offering the job
adopted by the NBC are…
➢ Internal Search Advertisement
➢ Employees Referrals (Permanent Employees of NBC)
➢ Newspaper Adds
➢ Manager’s Recommendations
The candidates for the jobs are selected on the basis of

➢ Written Test
➢ Interview by HR Manger
➢ Interview by Concerned Department Head
➢ Final Interview by MD/Director
The candidate having highest results and with job experience is proffered. Then the orientation
(introduction to the organization and introduction of selected candidate) takes place which
includes introduction of all the departments. Then finally training is a necessary element for the
candidate takes place with the help of the senior employees. There is another thing that the new
employees for the labor work are not selected under the above criteria. They are just selected
under their experience and particular job skills regarding their job.

Management Information System (MIS)
In today’s modern, fast moving and technological advance era, all the organizations are moving
to be modern, fast and technological advance and to keep themselves in the competition are
rapidly adopting the computerized information system.
As this is the time of rapid changes, the organizations are in need of having proper, timely and
accurate information for the purpose of decision making. This is just possible by adopting the
new technology and information system which provide the latest trends, regular and current
information.
MIS department of NBC have a strong impact and playing a vital role in this regard. The
department is working with small setup but with the strong experienced employees as well as the
department has shifted a lot of workload as well minimizes the use of papers in this organization.
It is also helpful in saving the time.
The MIS is performing the operations of NBC up to maximum extent based on daily work while
it is also busy in developing the software. MIS department is also providing the training of usage
of this computerized system to the other employees in different departments with assistance of
shifting their workload. In NBC, all the computers are connected to each other by LAN and all
the departments are based on licensed software working.
Observing Plant’s efficiency

The management Information System is developed to keep and to make up to date all the
information about the production and the plants that what is going on. This system is performing
the function of getting information about the production figures and reports about line utilization,
line efficiency, mechanical efficiency, employee code, name, basic salary, allowances, tax, net
pay and any other adjustments supplied by time office.

Sales and distribution System
Sales and distribution system is most important function performed by the MIS. It deals with…
➢ Sales system
➢ Cash system
➢ Shipping system
➢ Post mix system
The MIS is also dealing which is its necessary function empties slip, liquid out slip, full in slip,
empty short slip, the reports of the system are
➢ load report ( dealer wise, depot wise )

➢ settlement sheet ( dealer wise, depot wise )
➢ Shipping shift summary
➢ Daily liquid out report
➢ Agent wise load out summary
➢ Agent wise sales summary
➢ District wise sales summary
➢ Computerize sales statements
➢ (monthly, semi annually, annually)
➢ Cash report
General Ledger System
The MIS is also dealing with general ledger system of NBC which takes place of the old register.
This system is working from July 1st, 2000. The general ledger system in MIS contains all
accounts and shows balance sheets and profit & loss statements with respect to every transaction.
Payroll System
There is separate payroll system for NBC. The output of the system is pay slips and payroll
report at the end of each month. All these reports are highly important in the day-to-day
operations of all the mentioned departments. In addition, customized reports can be obtained as
per demand. The system is implemented at each depot as well.

Marketing Information System
Management Information system have a powerful software the purpose of this software is to
keep and maintain the information of each outlet of the franchise to keep the current record up to
date as well as maintaining the operations related history. With the help of this system
management can get the information at any time about…
➢ Name & address of each outlet

➢ Empty details
➢ Package details
➢ Publicity position
➢ Quality status
The system is designed in such a way that reports can be obtained about outlets:
➢ Distributor & area wise

➢ Route wise
➢ District wise
The system is useful in accessing market & investment position in each area

Cash Department
As it is clear from its name the cash department deals with the handling of cash (collections and
payments). The collection of cash deals with the receipt of bills from the dealers and salesmen
based on their settlement sheets and daily sales reports. The payment of cash takes place after the
issuance of vouchers by the accounts department. These payments includes employee's pay, bills,
allowances, procurement expenditures and day to day general expenses.

Accounts Department
Accounts department refers towards the maintenance of books of accounts of NBC. Books of
accounts means the maintenance of Journal, ledger, trial balance, income statement and balance
sheets etc. the main functions performed by this department are as follows…
➢ Issuance of purchase vouchers for raw material, plant and machinery and general store
items
➢ Check payment of payroll to employees including wages, overtime, bonuses etc.
➢ Handling of monthly tax statements.
Computer based general ledger system is working because of establishment of MIS department
which shows the result of each transaction up to balance sheet and income or profit and loss
statement.
Note: As we were not given the access to Cash and Accounts Departments so we were just able
to collect this data added above about these two departments.

Shipping Department
Shipping is a broad term in NBC which refers towards transfer of goods (raw material and
finished goods) from one place to another. Shipping department perform its functions as an
intermediary between production and sales. It ensures the quantity and availability of empties on
time at the time these are required similarly in case of filled stock. This maintenance of empties,
supply to plants, liquid stock and distribution has a strong impact on sales because of its
availability on time which depends upon the shipping department. So we can say that this
department is a complete chain of all the operations performed in the organization.
The shipping department is responsible for the following function performed by it…
➢ Shipping is responsible for managing the empties.

➢ Shipping is responsible for receiving the liquid clearance from excise to dispatch it
further to Depots & distributors.
➢ Shipping is also responsible for maintaining proper stock of liquids and empties as they
appear in the liquid and empties stock register so as the stock appears in the registers, it
should also be physically present in the depots.
➢ Shipping is responsible for proper management of empties and liquid vehicles loading
and off-loading i.e. time management is very important in this case.
➢ Shipping also receives new empties of both RB and NRB and manages their storage and
handling and their proper supply to production as they are required by the production for
filling purpose.
Empties’ supply to plant
As it is discussed earlier the supply of empty bottles is the responsibility of the shipping so it
supply the empties to the production department to fill them as to they are needed and others are
maintained in the different godowns. Shipping department maintain the stock of empty bottles by
collecting them from the wholesalers, retailers. The godowns where they keep their empty stock
are…
➢ RG 1
➢ RG 2
➢ DPG 2

➢ Godown No. 5
➢ Godown No. 8
➢ Tarantaran
➢ Modern Soap
➢ Qabza Factory
➢ Pepsi Town
Pepsi Town
Pepsi Town is the residential area where the employees and labors use to live came from the city
far away from Gujranwala. It is situated somewhere near Wapda Town.
Due to the shortage of space the NBC Gujranwala has established its temporary godown in Pepsi
Town where they use to keep their empty stock, liquid stock and other material. Empties and
other required material is supplied to the plant when they are needed.

Production Department
Production is a process of converting raw material into finished goods. It’s a major function in
all the Organizations. Production is back bone of any manufacturing Organization. In NBC the
raw material used by them in production is approved by the Pepsi Cola International. The
material they purchase should be according to the standard of PCI. In the case of material does
not meet the standard of PCI then the NBC have a right to return back to its suppliers, in this
case the cost of that material is beard by the supplier. The main purpose of this high quality
checking is to provide high quality to the end user.
Raw material used by NBC includes…

➢ Sugar
➢ Co2
➢ Water
➢ Ammonia etc
Capacity of Plants
Company is operating with 5 plants at unit one. Out of these 5 plants, 3 are producing only 250
ML RB bottles. While 01 produces 1500 ML (PET) & 1000 ML (Glass) bottles Plant 2 produces
1000 ML (PET), 300ML (NR) and 1500ML (PET) bottles. Capacities of each plant are as
follows:
250ML 1000ML 1500ML 1000ML

Plant # 300ML (NR)
(RB) ( RB) (PET) (PET)
P # 01 - 1100 Cs/hr 600Cs/hr - -

P # 02 - - - - 300Cs/hr
P # 03 1500Cs/hr - - - -
P # 04 1250Cs/hr - - - -
P # 05 1375Cs/hr - - - -

There are 3 more plants working at unit 2 in which two plants are busy in the production of
500ml, 1000ml and 1500ml NRB (pet) while the 3rd plant is producing 250ml of slice (RB). The
two plants at unit 2 are totally automatic with fewer requirements of labor and remaining are
manual with little automatic functions.
Company also started manufacturing of mineral water called “Aquafine” in two packages of
600ML and 1500ML and for this purpose it installed a separate plant.
Quality Control
Quality control is the basic organizational objective of NBC. Quality check is made from zero
level to final products. For this purpose samples are taken from the production to check the
quality. This sampling is done after each an hour or half an hour. These samples are tested
according to the PCI standards
Production staff
Employees are directly involved in the production process. Whereas the helpers are the indirect
employees Moreover direct supervisor and helpers are also there. Indirect employees are about
350 in number, who are not directly involved in the production process but they are essential part
of the production department.
Laboratory
In order to maintain the high quality the plant has a well equipped lab. Laboratory is sufficient to
measure the standards and to test syrup of different flavors. The well equipped lab enables the
smooth flow of production process.
Product line
The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as
compared to other brands. The other brands produced by the organization are…
➢ Pepsi

➢ Mirinda
➢ Teem
➢ 7up
➢ 7up Free
➢ Mountain dew
➢ Slice
Production Process
Production process is a complete cycle of interrelated activities which is as follows…
➢ First time light inspection after taking the empties to the conveyer with the uncaser by
the shipping dept.
➢ Empties shifted to the washer for washing
➢ In washer the empties washed with hot, caustic water and then finally with fresh water.
➢ After washing, bottles again pass through the light inspection.
➢ After 2nd time light inspection the empties move towards filler
➢ The filler filled the empties with liquid and then move them towards bottle neck
covering machine
➢ Then the 2nd last step is of coding in which specific codes are assigned to each bottle
containing date, time and chemist name.
➢ Finally bottles pass through the 3rd & last light inspection where the level, dirt are
inspected in the liquid.
➢ The bottles are ready to use.


Audit and Taxation Department
In NBC, audits take place annually. The audits are made according to the defined rules by Govt.
Records are maintained both manually and computerized. The revenue submission date to the
bank is 15th of each month. When the audit is conducted by the government, the company has to
present the invoices of purchase in order to get rebate on the foreign purchases. These items
come under no tax category. All the departments are being audited by the audit department. For
the taxation purpose the taxes are implemented on the basis of the purchase. If purchases are
made locally there will be a tax and if purchases are from the international market there will be
no taxes.17% sales tax is implemented on the domestic sales.
Sales tax and Excise Duty rates are…

Sales tax is 17%. Excise duty is 12% which the company pays to the government.
Type of taxes
NBC Beverages has to pay two types of taxes.
➢ Input Tax
➢ Output Tax
INPUT TAX
Input tax only claimed at the production related items such as sugar, concentrates and other
items. Such taxes are implemented on the imports too. But such imported items have to come
under the production process.
OUTPUT TAX
Output tax is implemented on the sales.
At the end the tax is calculated as:
Output tax – input tax = actual tax which has to be paid

Purchase and Procurement department
As it is clear from its name, the purchase and procurement department deals with purchase of
raw material and other materials when they are required. Its main purpose is to purchase the raw
material at a lower cost with high quality. For instance, we can say that the purchase department
is the important tool which gets the cost efficiency. NBC doesn’t rely on one supplier because
this strategy can create the monopoly of that single supplier so the NBC use to have the different
and more than one supplier.
Purchase Process
When store informs the purchase department about the purchase of a particular item, the
purchase department gets information about the prices of desired items. At this level quotations
are required by the department from its different suppliers. On receiving these quotations the
selection of supplier is based on the low price and high quality. Another procedure is the
negotiating the prices with the supplier. In this case the prices are settled at the desired level.
After setting the prices, the order is placed to the supplier. When the goods are received their
physical verification is done and in case of any shortage or poor quality product the respective
supplier is informed. In this case the supplier has to bear the charges of shortages or low quality.
In case of events like 14th August, Eid, Festivals Purchase department had to manage the supply
at least 15 days before the occurrence of the event, because the production increases in these
days due to high demand in the market.
Suppliers
NBC has both local and international suppliers of glass and pet bottles who are approved by the
Pepsi Cola International, these are…
➢ Balochistan Glass Factory Karachi

➢ Standard Manufacturers Lahore
➢ Plasco Plastics Hattar
➢ Ghani Glass Peshawar
➢ Concentrate from PCI
➢ Crystallite Products (Pvt.) Ltd

➢ Kaas-ul-Musaffa Karachi
Supplier Selection
Supplier selection is made mostly according to their quotations in which the two factors have
main focus. These are
• Quality
• Price
Domestic and Foreign Purchases
The purchases in NBC beverages are made from two sources;

➢ Domestic Markets
➢ Foreign Markets
Domestic Purchases
The purchase made from the country is called domestic purchase. It includes the purchase of
sugar, co2, and for the factory it includes office stationery, vehicles spare parts, glass bottles, pet
bottles, spare parts of production machinery and vehicles for transportation.
Foreign Purchases
The purchases made from the international markets are called foreign purchases. Concentrates
are provided to NBC by the Pepsi Cola International, crowns and heads of the bottles are also
imported from Turkey and Dubai. The machinery is also purchased from the foreign markets

Marketing and Sales Department
Sales and marketing department is the most important department for NBC because the
efficiency of sales wholly depends on it. It boosts up the sales and the profit of the organization.
This department required more sensitive decision making and proper planning as well as
management. NBC has experienced hardworking and committed staff to perform the sales
functions up to the mark to meet the requirements of this process. The efforts of the staff are
admirable because we can see that in Pakistan 67% of share is held by the Pepsi brand.
Marketing Department deals with the following basically…

➢ Market Development
➢ Outlet
➢ Tactical analysis and routine planning of market strategies.
➢ Competition activity monitoring
➢ TOT’s Management & Integrity
➢ Publicity Management
➢ Time Management
➢ EDS (Every Dealer Survey)
➢ Retail Audit
➢ Stock Verification
➢ New Account Development (NAD)
➢ Publicity Verification
➢ Special Assignments
Market Development
The first and the most basic job of the sales and marketing department are to plan, develop and
make targets. They make strategies to achieve those targets and develop the market. Especially
sales people are assigned monthly, quarterly, annual targets of the liquid sale. The following
major factors are considered in this respect.
➢ Collection of all the data about each and every distributors/ outlets, about its sale, volume
and growth.
➢ Finding the gaps in the market where there is a potential (New Accounts Development).
➢ Finding the points where competitor is strong and how we can break this point.
➢ Location of non-traditional shops where potential is available for the beverage.
➢ Different offers must be given to break the competitors point or win the mix point.

Outlets
Outlets play an important role in strengthening the market. By monitoring them you can build
your market, have their loyalty and increase your sale. Sales persons continuously visit outlets,
listens their complaints and satisfy their needs and requirements. They must have information
about each and every outlet, its growth, and volume. Proper is maintained to get the feedback
from the shopkeepers
Tactical Analysis & Routine Planning Of Market Strategies

On the market side the sales people gather information and on the basis of this information they
further plan and improve their strategies.
➢ Checking of the designated area, its sale, volume and growth.
➢ Calculation of daily sales achievements on monthly target basis
➢ Location of the poor performance factors and analyzing their cause
➢ Finding their solution and getting the approval for its execution.
➢ Planning for a schedule for the designated area.
➢ Visiting the area according to the plan and reporting it to the higher management
Competition Activity Monitoring

On the other hand a constant intention has been given to the competitor’s activities, strategies
and offers. They have been compared with ours and updated according to the environment.
Following are the key factors to be noted in respect of the competitor:
➢ Discounting, Promotional schemes, empty management,

➢ Cash credit, Vehicles injection (etc.)
➢ Reporting to the higher authority.
➢ Taking action to block the competitors activities and monitoring Our
TOT’S Management
TOT’s means list of items available in a shop, which helps to sell our product conveniently on
priority basis. It is one of the major investments being made by the company. TOT’s
management completely depends upon the Sales force. The factors to be considered are
➢ Data collection about the sale, volume, growth, profitability, size and place of the shop
➢ Record of all the TOT’s. Given to the shopkeeper.

➢ Further plan for the injection of TOT’s
➢ Checking all the equipment time by time any removing their complaints
Publicity Management
To promote the image of the company and its products, publicity is a major tool. Publicity plays
an important role in the promoting the image in the consumer's minds.
Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent by
focusing the followings.
➢ Location of the area.

➢ Arranging the sources and requirements and making priority lists
➢ Carefully arranging the publicity execution.
Time Management
Time management is the most important factor especially in a Beverage industry, because it is
wholly dependent on Sales and Marketing Department. And without proper management of time
this department cannot run. Following are the key factors which are to be considered necessary
for the management of time:
➢ Drop size of a specific area.

➢ Tonnage of the vehicle for that specific area.
➢ Total operational time management
➢ Idle time monitoring and elimination.
➢ Calculation of outlet knocks time.
➢ Calculation of available knock time for each outlet of a specific area.
➢ Define and ideal knock time for an outlet.
➢ Setting of a comprehensive plan, by considering all the above factors

Every day Survey (EDS)
This activity is based on research and marketing people usually perform this activity. It is
basically checking the each and every shop and gets information that what the shopkeeper is
selling and keeping in the shop regarding beverages. This activity is performed in the form of
teams. Structure of the teams is as follows:..
Team Leader (Marketing & Research Executive MRE) 01
Team Members (Marketing & Research Offices/Surveyor) 03
The following activities are present in EDS…

➢ Market Visit (Data Collection about Shops)
➢ Data Analysis
➢ Report Preparation
Publicity verification
This activity involves the following tasks to be performed by the marketing department:
➢ Counters
➢ Wall Chalking
➢ Cabins
➢ Plastic Sign Board
➢ Road Boards
➢ Simple Boards
➢ Pan flex
Special Assignments
Special assignments involve the sales promotion schemes verification like under the crown
scheme (UTC) and other schemes which the company offers quite often.

Area of Internship
Internship provides an opportunity to experiment and peruse careers that match academics and
personal interests. Internship is an excellent way to gain experience in a career field while
enjoying the benefits of a liberal arts education. Internship is an necessary exercise of
B.Com(Hons).
There are 9 departments in NBC and I went to the Four departments because of shortage of time.
The departments where I did my internship are…
➢ Market Research and Development
➢ Production
➢ Post Mix
➢ Sales and Marketing
In these departments I’ve learnt a lot and have observed the practical implementation of the
bookish knowledge with the kindness of cooperative staff and departmental heads. So a brief
introduction of my work that I performed in NBC is in the head of “Work Done by Me”


During my internship in the Nau-Bahar Bottling Company, Small Industrial Estate Model Town
Gujranwala, I really enjoyed to work with the staff of Company, from 26 July to 26 August,
2010 and have a wish to be employee of Nau-Bahar Bottling Company. It was almost impossible
to work in all the departments within that limited time. But on my request, the staff of the
company provided me the opportunity to work in the different departments for the sake of
practical knowledge. I am very grateful HR manager Mr. Qamar Bilal and HR Executive Mr.
Basharat Zia that provides me a learning environment in the company.
During my internship training I work in following departments
1. Marketing & Research Department
2. Production Department
3. Post Mix Department
4. Sale Department
I learn a lot of practical things during working in these departments. Working of these
departments which I observe during my internship (as I already discussed) is really admirable.
Nau-Bahar Bottling Company provided us real time learning and for better sake of practical
exposure the head of different departments assigned us some special duties which are as follow.


Assignment of Marketing and Production Department
In first of my internship after my interview with the HR Manger we are sent to the Marketing
and Research department and after acquiring basic knowledge of this department, our head of
department assigned us two assignments which are as under.
➢ They said to us that make a comparison between the Products of PEPSI and COKE.
➢ Analysis of advertisement, Promotion & etc.
Difference between PEPSI and COKE
We make comparison between the products offered by the PEPSI & COKE. And the difference
between the Advertisements and Promotional Activates of the both Companies.
These products are…
➢ Pepsi Cola vs. Coca cola

➢ Teem vs. Sprite
➢ 7UP, Dew vs. Sprite 3G
➢ Slice vs. Splash
Research Method
The research method will be in the form of questionnaire survey specially designed to measure
our variables.
Target Population
Our targeted population is the end consumer of soft drinks from the age of 16 to 35 within the
Gujranwala base. And Shopkeepers as well.

Sample Size
The sample size will be 100 respondents.

The selection area of the sample size independent upon the cost and time considerations.
Sampling Area
The sampling areas are the following…
✔ General Bus Stand

✔ Shopkeeper
✔ Ruler areas
✔ Universities and collages as well.
These areas are selected in order to have a proper mix of high, advantage and low income
categories so that our sample can accommodate variability as present in the true population.

Questionnaire
The Questionnaire is developed to make the comparison among “PEPSI” and

“COKE” with respect to their products preferences, advertisement and
packaging.
Name: …………… Age: …………… Gender: ……………
Q: 1 What you like to have in “Drinks”?

○ Soft Drinks
○ Juices
Q: 2 If soft drinks, what brand you prefer to drink?
○ Pepsi
○ Coke
○ Others
Q: 3 Do You aware of the other products that Pepsi manufacture in soft drinks?
○ Yes
○ No
Q: 4 If you like Pepsi brand then which soft drink of Pepsi you like more?
○ Pepsi Cola
○ Team
○ 7up
○ Dew
○ Miranda
Q: 5 Which brand’s sales are high in market?
○ Pepsi
○ Coke
○ Others
Q: 6 Which brand you prefer more?
○ Pepsi
○ Coke
Q: 7 What factors affect your selection of a particular brand?
○ Incentives
○ Profitability
○ Supply
○ Quality

Q: 8 From your perspective, which brand advertises its products more?
○ Pepsi
○ Coke
Q: 9 Do you think celebrities attract the consumers to consume a particular brand?
○ Yes
○ No
Q: 10 Which brand’s advertisement attracts you more?
○ Pepsi
○ Coke
Q: 11 Does advertisement motivate you?
○ Yes
○ No

The Results on the basis of the question Related on the Research

Products preferences, advertisement
 Most Prefer Beverage by user

According to the result 70 % respondent said that they world prefer Soft drinks as compare to the
Fresh Juices.

 Most Preferred Soft Drink

In order to understand the soft drink which is mostly used by the consumer we divide it into three
categories.
➢ PEPSI
➢ COKE
➢ Others.
50 % of the respondents answer that they like Pepsi 35% said they like coke and the rest of the
15 % said they like the other brands.

 Awareness of the other products that Pepsi made
In order to ask about the different products offered by the Pepsi 80% of the respondents said that
they are well aware about the products that are offered by the Pepsi and 20% said no.

 The drink that will like more offered by Pepsi

Pepsi cola is most likely by the people about 35% respondents said that they like Pepsi cola 30%
said they like teem 15% said they like Dew and 10% like 7UP and Mirinda respectively.

 High Sale of the Brand
67% of the respondents said the sale of Pepsi is high as compare to others 23% respond Coke
and 10% respond others. The reason for the high sale of the Pepsi is the it’s advertisement.

 Preference of buying of Brand
Responding to this question 55% people like to buy the Pepsi and 35% like to buy the Coke and
20% others

 Why shopkeeper select the particular Brand

 Advertisement of Different brand
60% respondents say Pepsi Advertise more as compare to Coke.

 Celebrities have an impact on sales of a particular brand

75% respond that celebrities have an impact on sale of the particular brand.

 Brand advertisement attract more

60% of the respondents says that Pepsi advertise more as compare to Coke.
Conclusion
We draw conclusion on the basis of our research that Coca Cola is proffered by the young
generation and have more share in young generation as compare to Pepsi Cola. But overall Pepsi
have more market share as compare to Coke. Pepsi’s product Dew has more market share as
compare to its competitor product. The reason for the high share of Pepsi products is the
advertisement locally.


ASSIGNMENT OF PRODUCTION DEPARTMENT

After completing our activities in the MRD we shifted into the Production department. For that
purpose we spent One week in production department.
Production of beverage is a huge process; it consists upon different activities like
➢ Water treatment
➢ Syrup production
➢ Co2 production
➢ Production in main shop floor
➢ Quality control lab
I understand working of these very well as I already discussed besides this Our Assistant
Production Manager Mr. Arshad also gave me assignment to discuss various jobs on plant
number 3 and also flow of activities & their cycle time which are as follow


Production Department
How to improve the Quality of
Important jobs Of PLANT no: 3 their work?
1. Depallettizing Using proper way recording the pressure he

2. before Uncaser Inspection. can put creates on conveyor so that breakage
3. Uncasing can be reducing.
4. Straw control
5. Controls before washer Work with constant efficiency in full hour is
6. Washer operator difficult .They pay full attention in first few
7. Washer helper minutes but not in remaining time,
8. Light inspection
9. Filler conveyor control Diligence is actually the
10. Filler operator required thing.
1. 11.Filler operator helper To inform the supervisor about the broken
12. Filled inspection pallet
13. Packer operator
14. Palletizing
15. Shell washer operator 2. Before uncase inspection
16. Shell controls
17. Supervisors What they are doing
1. Depallettizing ✔ He will separate the dirty & empty

bottles
Cycle time: it takes one min to pick ✔ Separate unrelated brands
32-35 crates from pallet and put it over the ✔ Withdrawal of straw
conveyor. ✔ Separate the broken bottles
What they are doing:
What they want to do?
✔ Picking crates from pallet.
✔ Putting the bottle over the conveyor. Proper look after of conveyer
✔ Removing empty pallets so that Fork To inform the maintenance officer in case of
lifter can put another crates of bottle any fault of conveyer
and pick the empty pallets.
Current situation at plant # 3
What they want to do?
The person there sits and watches over the
They prefer to fellow given instruction by bottles that are not a proper way to look in the
management. crate which contains 24.

Bottles so their must be another person on the

other side .Otherwise quality can not be ✔ He is to put the bottle vertically
control when a person gives only 2 seconds ✔ Separate unrelated brands
per crate. ✔ Separate the broken bottles
3. Uncasing How to improve the quality

Cycle time: it will 7 times pick crates in one He should look properly in to the bottles so
minute and each time 4 crates will be picked that he can pick up the straw.
up. Therefore 28 crates in one minute will be In case of any fault quickly report to the
picked up. immediate supervisor
Lubrication should be done in time.
Duties: what they are doing? 5. Controls before washer
✔ There duty is to set time of Machine What they are doing?
✔ To operate the sensor system
✔ In case of any fault quickly report to ✔ He is to withdraw straw from empty
the immediate supervisor bottle
✔ He will separate the dirty
How to improve the quality? ✔ Broken bottles
✔ He is to put the bottle vertically
To make the machine efficient proper ✔ Separate unrelated brands
cleanliness in required. ✔ Separate the broken bottles
While leaving his lift he must make machine
ready to be properly used by the coming How to improve the quality
person.
He should look properly in to the bottles so
4. Straw control that he can pick up the straw.
In case of any fault quickly report to the
Duties: what they are doing? immediate supervisor
Lubrication should be done in time.
✔ He is to withdraw straw from empty
bottle
✔ He will separate the dirty
Broken bottles

6. Washer operator How to Improve Quality?
Cycle time: washer picks 38 bottles in one turn More efficient lights can be used
and in one minute it picks 684 bottles in 8
cycles. Incentive plan should be proper
What they are doing? Supervisor must look after the process more
properly and the girl who is not doing work
He properly put the bottles vertically. with concentration should be accounted for
Maintain the machine properly. that.
How to improve the quality? 9. Filler conveyor control
In case of any fault quickly report to the What they are doing
immediate supervisor
Lubrication should be done in time. He is helper and controls the bottles on line or
conveyor.
7. Washer helper He is also responsible for constant or variable
timing of bottle line arrangement
He is for help in putting the bottles vertically. Quality control
8. Light inspection --empty There trimming of job is very hard so they

cannot proper concentrate the job.
What they are doing? There pay is same to the new or fresh worker
which gives them a lot of disgranceness.
✔ Wash hands, wear gulfs, caps uniform. There should be a plan of leave the filler
✔ Duty changes after 20 minutes operator and arrange the alternative employees
✔ He is to withdraw straw from empty for emergency cases.
bottle
✔ He will separate the dirty 10. Filler operator
✔ Broken bottles
✔ He is to put the bottle vertically What they are doing?
✔ Separate unrelated brands ✔ Properly check the plant to remove the
✔ Separate the broken bottles fault.
✔ To separate Foaming bottle ✔ If there is any fault he should informed
the mechanical operator.

12. Filled inspection--Filled

✔ He check the level of water in the
bottle What they are doing?
✔ He also controls the level of water in
bottle by setting the Valve. ✔ Wash hands, wear gulfs, caps uniform.
✔ He also liable to see the line ✔ Duty changes after 20 minutes
arrangement of bottle at a time may be ✔ He will separate the dirty
one or more. ✔ Broken bottles
✔ Properly check the van tube and cone ✔ He is to put the bottle vertically
washer. ✔ Separate unrelated brands
✔ Wash the filler tank before changing ✔ Separate the broken bottles
any tank. ✔ To separate Foaming bottle
✔ Informed the water treatment of ✔ Check low high level
provide the water as well the syrup
department for syrup and ammonia How to improve quality?
department for cool gas.
More efficient laser lights can be used
How the improve the Quality? Incentive plan should be proper
Supervisor must look after the process more
There trimming of job is very hard so they properly and the girl who is not doing work
cannot proper concentrate the job. with concentration should be accounted for
There pay is same to the new or fresh worker that.
which gives them a lot of disgrace ness.
There should be a plan of leave the filler 13. Packer operator
operator and arrange the alternative employees
for emergency cases. What they are doing?
11. Filler Operator Helper ✔ He is to check the efficiency of

machine.
Same duties as operator Just difference to stay ✔ Control the machine work properly and
on Conveyor not on Fuller Machine making in time actions to handle all
operations.
✔ In case of any fault quickly inform
supervisor.

Problems
14. Palletizing
Empties
Cycle time: he puts 50 crates on pallet in 2
minute. 1. Lack of space.
2. Lack of labor.
What they are doing? 3. Lack of active supervision.
4. Lack of control by sales and distribution
Picking the filled crates from conveyor and over quality of empties.
putt on plat 5. Employees on daily wages are of low
quality.
How to improve the quality? 6. No process for producing acceptable
empties.
To impose pressure to avoid brakeage of 7. Redefining job of empty godown (delivery
bottles of acceptable empties from warehouses for
production).
15. Shell washer operator
Fork lifters
He is to wash the crates using the water pump
He is to control pump by managing the ribbon 1. Routing between empties to the line is not
to stop pump disorder being managed.
2. Cycle time is not being optimized.
16. Shell controls 3. Feeding logic is not rationalized.
4. Space is not optimized.
These two boys bring the shell over the packer 5. Ready backlog of empties is not optimized.
machine 6. No proper operational procedures.
Ensures the supply of shells according to the 7. No traffic control.
need 8. No correlation between work load and
resources.
17. Supervisors
De-palletize
What they are doing?
1. No customer-supplier relationship
✔ To keep data of attendance of all the implemented.
employees of specific plant.
✔ To count that crate is full with 24
bottles
✔ To keep cleanliness
✔ Check and balance
*Appendix

Filled Inspection
Before washing
1. Low fill / high fill bottles are being drained
1. Lack of space for empty inspection before or taken back to the empties. Some are
washing (space rationalized). supplied at mess.
2. Still receiving straws and unacceptable 2. Maintenance engineers are not coming
empties on the production line. regularly to fix their problems.
3. Pre-washing solution had been decided
previously but never implemented. Shell Conveyor
4. No active supervision.
5. No proper assignation of task. 1. Space problem. Shells need to be shifted
manually.
Washer
Palletize
1. Management of consumables to be
improved. 1. Input / output control left to subcontractors.
Inspection of Empties
Machinery Maintenance
1. No job description.
1. No preventive maintenance or compliance
2. Different tasks assigned to workers instead
to.
of one standard.
2. Unavailability of quality equipment and
3. The notion of an acceptable bottle is not
materials required for maintenance (parts).
properly defined to the workers.
3. No proper supervision and overall
maintenance policy.
Filler
1. SOP not cross functionally agreed, Solutions

communicated and supervised.
Allocating areas for SKUs (marking & logic)
Coding Operator Defining frequency of lifters: unloading time,
sorting time, and delivery time (scheduling
1. Lacks overall authority. logic of empty godown – both areas)
2. No real role in reporting. Arrangement for unacceptable empties (far
3. Performance not being evaluated. No job from good empties or other godown)
description; function does not exist on paper. Defining role of each empty godown (specific
4. Lack of recognition. roles)
5. Area of supervision too large (2 for 5 lines)
Equipment required for converting bad empty
to good empty (conveyors, tubs, water hoses,
etc.)

POST MIX DEPARTMENT
Our 1st day at post mix department we meet with the Assistant Manager Mr. Shafat and the sale
executive Mr. Imran. After the introduction whit these persons they give us brief introduction
about the Post Mix department and about there activates. We visited the contractor of NBC who
makes the Farms for machines. After that we visited the different customers of the Post mix with
Mr. Imran, and makes deals with them. We were assigned to prepare a detailed report about the
post mix department regarding its functions, operations and services.
The post mix department is responsible for installation, maintenance and filling of fountain fresh
(post mix) machine in five districts of Gujranwala franchise
Dispensing is today's "action package" carbonated soft drink in POST -MIX and PREMIX
forms, coupled with compact, high volume, refrigerated dispensing equipment, represent
convenience and increased profits for dealers and profit opportunities for the bottler. There has
been a little growth in the POST-MIX/PRE-MIX dispensing area in the Pakistani Beverage
Market until the 1994's. But now it has grown a lot due to the following factors.
➢ Pressure on retailers to improve selling methods and techniques.

➢ Rapid increases in the volume of soft drink consumption in outlets with storage
remaining limited.
THE IMPORTANCE OF DISPENSING MARKET

Dispensing market varies from country to in size and types of out let. The title on premise
identifies any out left where product can be purchased with or without food for consumption on
or near the premises.

The On-Premise market is one of the most markets in a Bottlers franchise. Its importance in the
continued growth and success of the Bottlers business cannot be under estimated in its effects on:
 Profitability  Volume growth

 Consumer awareness  Product Visibility
 Consumer sampling  Chilled product sales
 Impact on take home sales
POST MIX MACHINE
Post Mix machine is U.S. made and it has following main components.
 Water Tank  Congesture

 Cooling system  Wolves
 Syrup tank(s)  CO2 tank
Post Mix Department installs machine at any suitable place with the cash security of Rs,
30,000. Along with Post Mix machine, they also provide counter, water tank, water filter(s),
disposable glasses, disposable plates, machine maintenance and service. The cooling system is
almost like refrigerator or fridge cooling system. However gas cylinders are attached to the
machine for gas mixing. Syrup and water mix-up happens in wolves’ at-4 C .So the customer
gets fresh, cool product in no time. The water used in fountain fresh machines is acquired from
locally available source; it is stored in water tank and filtered once, twice or thrice depending on
the purity of the water. With one syrup tank of PEPSI, TEAM and 7'up, equivalent of 19 cases
standard bottle is obtained, while syrup cylinder of MIRINDA has the capacity of providing
equivalent of 16 cases standard product.
Until now total 122 has been installed in different districts and approx. 114 are working while
others needs repair. There is further demand of about 100 machines
POST-MIX SYSTEM
The syrup mixed with water and CO2 at the customer account. POST-MIX containers can be
bifurcated in Transfer Tank.

The Post Mix system differs slightly in principle from the PRE-mix system. The difference is
related to the way the finished beverage is produced for sale to the consumer. The bottle fill the
beverage syrup into stainless steel tanks at production plant and transport the tanks to retail
outlets. The operation of POST -MIX system is as follows.
Compressed CO2 Gas flows from the storage cylinder through gas a pressure regulator where it
is reduced to the working pressure of the carbonator, then through a pressure relief valve and
back flow check valve to a juncture where the CO2 line gets divided. One segment going to
secondary regulators and the other to carbonators and the other to carbonator tanks.
The flow of CO2 from the secondary regulators goes to the syrup containers. Syrup flows from
the containers to the refrigeration unit and then to the dispensing valve. The CO2 gas directed to
the carbonator assembly enter a small capacity tank which contains potable water automatically
controlled to a predetermined level in addition to the tank. Its safety valve, the carbonator
assembly includes a motor driven water pump to force the potable water into the tank against the
CO2 pressure. The carbonated water from the carbonator.
Connect dispenser to a separate outlet. Turn power switch ON. Thoroughly flush all incoming
product lines before connecting them to the dispenser. Turn on the water supply and allow the
carbonator to fill completely.
Lift relief valve ring until water flows from relief valve openings. Reliefs ring and allow closing.
Turn on CO2 gas and adjust regulator to 75 psi.
Activate a valve until pump starts. Close valve and allow pump to cycle. Dispense drinks from
each valve to purge and remaining sanitizer from the syrup lines and establish quality
carbonation in the carbonator.
TRANSFER TANKS

The most common packaging from for both PRE-MIX and Post Mix product is the
Stainless Steel Tank. This tank comes as either a single entry or double entry system. Each has
specific advantages and disadvantages. Both PRE-MIX and Post Mix product can be stored in
either single or double entry system
DOUBLE ENTRY TANKS

Double entry tanks have separate gas inlet and liquid outlet plugs. The standard double entry
tank size can hold 18 Liters of product. However the double entry tanks are also available in
other sizes.
SINGLE ENTRY TANK
The single entry tank is generally made of stainless steel and can be obtained in different
sizes. This tank is not commonly used for dispensing soft drinks. To date its use has been within
the brewing industry.
TANK AND CYLINDER REQUIREMENT

One question the reader will need to ask is the ratio between tanks and cylinders per units
purchased. The answer is dependent on these factors:
 The length of distribution chains.

 The sales volume per outlet.
 The product Mix ( some flavors move faster than others )
 Frequency of calls.
 Control of stock levels.

EXAMPLE OF POST MIX TANK REQUIREMENT
One product tank contains the equivalent of 19 standard cases of 250 ml finished product,
therefore an outlet selling 40 case per week would require the following minimum stock to cover
a basic four flavor installation.
TANKS
 Outlet Machine Stock 4 Tanks
 Outlet Reserve Stock 1 Tanks
 Factory Shipping Stock 3 Tanks
 Factory Production Filling 2 Tanks
Total: - 10 Tanks
CO2 CYLINDERS
Outlet Machine Stock 1 Cylinder
Outlet Reserve Stock 1 Cylinder
Factory Stock 1 Cylinder
Total: - 3 Cylinders
DISPENSING DEPARTMENT STRUCTURE

In a simple way, the department can be considered to have four main functions.
Sales
➢ Security Deposit Receipt.

➢ Legal Agreement papers.
➢ Installation site sheet
➢ Installation & pick up order
➢ Quality control functions.
Services
➢ Preventive maintenance card
➢ Wastage Record.
➢ Complaints log.

➢ Spares usage Record
➢ Quality control & sanitation.
Delivery
➢ Delivery Card.
➢ Sales History Card Account Cash Record
Workshop
➢ Daily sale & stock report
➢ Issue / Collection slip.
➢ Future needs Technical Development.
➢ Repair Section
➢ Store Section
Post Mix Officer Responsibility

1. Customer Service.
2. Conducting Annual surveys of accounts.
3. Preparing a sales plan for growth in conjunction with the Post Mix Manager.
4. Grouping accounts into geographic routes for delivery
5. Helps in selection of sales man cum technicians.
6. New outlet development.
7. Existing outlet development.
8. Merchandising 9.
9. Quality checking
Outlet Selection
Dispensing equipment is very expensive and therefore every care must be taken to ensure that
the outlet have proper annual yield. As with any installation of Post-Mix equipment, it is
important to first undertake a site survey. Until this is done it is not possible to ascertain the
equipment required. The points that need to be checked are…
1. Volume through put.

2. Type of unit required & space for product tanks
3. Construction, alteration and other details.
4. Water and electrical requirements.
5. General Details and deliveries.

6. Proper space for air circulation.
7. Dealer and staff are trained or not.
The machine is normally installed in parks, shopping centers, college canteens, ice-cream
parlors, busy roads, burger comers etc. The department is having five vehicles for visits of each
machine after every two days. Different routes are planned in various areas. With every
route/vehicle, there is a technician, driver and helper. The purpose of the route is to replace
empty syrup tank, cleaning and maintenance work of machine and resolve any complaint.
Special routes are arranged in case of urgent complaint or immediate syrup tank requirement.
The technician also performs the job of salesman. Cylinders are delivered on cash and it is
responsibility of technician to collect cash and later submit it at cash office. During the route,
they have to arrange their meal for which no allowance is given. Technician s get a commission
of Rs. 2.50 per cylinder sale. Currently sales
Officer is in charge of the post mix department and performs his job as well.
Various forms/documents/reports used in the department are:
➢ Post Mix installation/removal orders

➢ Duty slip
➢ Overtime register
➢ Main store requisition
➢ Daily complaint register
➢ Daily technician report
➢ Part/outlet wise sales report
➢ Requisition for publicity
➢ Daily post mix report
➢ Individual technician files
➢ Party wise profiles
Interaction with others Departments

➢ Post mix has interaction with following departments
➢ Shipping
➢ Accounts
➢ Stores
➢ Publicity
➢ Workshop MIS
➢ Audit

Problems
There is job dissatisfaction and very low motivation on the staff due to:
 Low salary
 Daily allowance has been eliminated
 Overtime is rewarded in terms of holidays not in monetary terms. According to
technicians, they normally do not get a chance of making allowed vacations due to
workload so the extra holidays are of no use for them.
 Higher positions are filled from outside, people within the department should be
promoted to the chief technician and sales supervisor level.
 Technicians perform the responsibility of salesman for which they get just Rs. 2.50 per
cylinder that is very low.
 Computer is present in the S.O. office but no one in the department is really qualified to
get use of it.
 Sales targets are set without the consent of staff.
 Post Mix staff has no knowledge of ISO.
During the route riding, I observed following points
➢ The key issue is proper and compatible combination of technician, helper and driver. These
people should work as a team in the field and must possess the characteristics that make a team
successful i.e. technical competence, trust ----.
➢ The group should move with full preparation i.e. all required slips, necessary tools, tested
equipment.
➢ The routes must leave at least till 0:30 A.M.
➢ The vehicles must be fit and available on time. It is in their best interest and makes their
job safe, convenient and speedy.
➢ The new machines are not available for installation. Used machines and counters make
shopkeepers unhappy.
➢ The behavior of the staff with shopkeepers is generally good. The outlet owners have the
Post Mix office number complaints and the response is efficient.

SUGGESTIONS
Fountain fresh department is an area which requires much more attention. Though currently it is
working with its capacity and covering five districts with a smart staff. The organization should
take it as a SBU and concentrate on it because of
➢ High expected growth

➢ PEPSI has currently no competition in this area
➢ No problem of empty
➢ It does not requires a huge plant setup and works with simple setup and very low
overhead
➢ No chance of fake bottle
So the sales can be increased dramatically by better management and boosting up Post Mix
department.


Sales Department
The last week we spend in the sale department. After basic Introduction about Sales’ department
and Distribution Head Mr. Hussain Ali Sehgal. He gives us brief history of the sale and
distribution and way of distribution by NBC. There are 2 types of sales System…
➢ TU (Territory University)
➢ Non TU (Non Territory University)
TU system
A system of distribution in which the company main focus is on the consumer because the
consumer is the most important and the role of middle man is abolished. Now CR deals in places
of middleman.
Non TU system
A system of distribution in which company give to manufacturer and manufacturer gives to

distributer and distributer give to the retailer and finally product reaches to the final consumer.
Company does not know about their consumer.
Working of the Sales force of the NBC…
➢ 2-3 Customer representative work under the supervision of Area development Manager
➢ 2-3 Area development Manager work under the supervision of the Unit Manager
➢ 1 Unit manager control the 1 city
➢ 2-4 Unit manager are controlled by the Sales Development Manager
➢ 5 Sales Development Manager Supervised by the Manager

NBC have a total 5 Sales Development manager. And NBC is 50% TU based and 50% Non TU
based
Non TU Base Area
➢ Muridke
➢ Kamoki
➢ Hafizabad
➢ Daska and Outstation.
TU Base area
➢ Shekhupura
➢ Shadra
➢ Gujranwala
➢ Gujrat
➢ Jehlum
➢ Sialkot

Assignment Given By Sales Department

They give us assignment to conduct a market survey for this purpose we make two type of
questionnaires; Consumer Questionnaire, Retailer Questionnaire.
Consumer Questionnaire
Name:_________ Gender:___________
1. What is your age?

a)15-24 b)25-34 c)35-44 d) 45-54 e) 55 and above
2. Which soft drink brand do you prefer?
a) Pepsi b) Coca Cola c) Gourmet d) Others
3. Why you prefer the above mention brand?
a) Prices b) Taste c) Availability d) Status
4. Which drink you prefer of this brand?
__________
5. How often do you purchase soft drink?
a) Daily b) Weekly c) Twice a Month d) Monthly
6. How much you drink?
a) 1-3 b) 4-6 c) 7 and above
7. Which pack do you mostly purchase?
a)250ml b) 300ml c)500ml d) 1 liter e)1.25 liter
f) 1.5 liter g) 2.25ml
8. Which juice do you like?
a)Shezan b)Slice c)Splash d)Benz e)Nestle
9. Why you give preference to this juice?
a)Healthy b)Price c)Taste d)availability e) Status
10. Do you drink mineral water?
a)yes b) No c)Occasionally
11. Which brand of mineral water do you prefer?
a)Nestle b)Aquafina c)Kinley d)Sufi e) Others
12. Why you prefer above mention brand?

a)Price b)Quality c) Availability
13. Does your preferred brand easily available at your door step?
a)Yes b)No
14. Do you like the advertisement of your preferred brand?
a)Yes b)No
15. Which other brand advertisement you like?
____________________________________
16. Reasons of liking the advertisement?

_______________________________________________________________________
_______________________________________________________________________
____________________________________________________________________
Retailer Questioner
Shop Name: _______________

Location______________________
1. Which brand of soft drink you have?
a) Pepsi b) Coke c)Gourmet d) A and B e) Others
1. Which brand customers demand from you?
a) Pepsi b) Coke c) Gourmet d) Others
1. In which pack?
2. Which brand you prefer for customer?
a) Pepsi b) Coke c) Gourmet d) Others
1. In which pack?
2. Reason of preference?
a) Margins b) Investment by Company c) Demand by Customer
d) If others Specify?
3. Which age group people purchase soft drink from u?
a)12-18 b)18-33 c) 33-45 d)45 and above
4. On a Scale of 1-5 which product of this brand is mostly selling by you?
1) __________ 2) _________ 3)_________ 4)_________
5) __________
5. Which age group people Purchase juices from you?
a)12-18 b)18-33 c) 33-45 d)45 and above
6. Which juice Is mostly demanded by the Customer?
7. What would you prefer for Customer?
8. Why?
_____________________________________________________________________________
________

Analysis of Our Survey
As it is discussed earlier that the in sales department I was assigned a market survey regarding
advertisement, demand market share among beverages. For the attainment of this purpose we
developed 2 different questionnaires to collect the opinions of the retailers and consumer. Those
questionnaires are pasted in this report. Our sample size was 100. We went to the individual
retailers and consumer to get the particular information.
After getting the filled questionnaires I came to know that the demand of Coke in young
generation is high with respect to Pepsi because of its taste and quality while in rural area the
Pepsi is more popular than coke. From retailers view point at the present times the Pepsi have the
high popularity and demand but they consider that in the near future the coke will become the
market leader in beverage industry because of change in preference of people day by day.
Now regarding advertisement the Pepsi’s advertisement is high in comparison with coke. Pepsi
Co.’s target is to hit the common man while coke is highly status conscious as well consumer
like the advertisement of Pepsi because of it day to day innovative adds as we can see the add of
Mountain Dew.
As we consider the juices, recently Pepsi Co. introduced its juice “Slice” which has a strong
impact on other juices market. It snatched the share of Shezan (old brand) as well. Slice has its
low availability but high demand. NBC considering this gap among demand and supply seriously
and planning to minimize it in the near future.
The coke has also introduced its juice names “Splash” to compete in market but badly failed. It
also introduced its another soft drink names 3G against Mountain Dew but it is still not in the
position to attract the market as compare to Mountain Dew.

Financial Analysis
Definition
"Financial statement analysis is the process of identifying of financial strengths and weaknesses
of the firm by properly establishing relationship between the items of the balance sheet and the
profit & loss account," and it is done through ratio analysis.
Comparative study
“In this study we analysis the proportional change in two years”. Here the comparative study of
2008 with 2009 done then graphically represents the Change between two years.
Raito Analysis
Ratio means “one number expressed in term of another a ratio is statistical yardstick by mean of
which relationship between two or various figures can be compared or measured. Here we are
going to explain the ratio analysis of PepsiCo Inc, and Subsidiaries which is little bit different
from other organizations.
Financial ratios can be divided into the following five parts
A. Liquidity ratios
B. Activity ratios
C. Solvency ratios
D. Profitability ratios
E. Market ratios


Income Statement:
(in millions expect per share amount) 2009 2008

Net Revenue $43232 $43251
Cost of Sale (20099 (20351
) )
Gross profit 23133 22900
Selling, general and administrative expenses (15026 (15877
) )
Amoritization of intangible assets (63) (64)
Operating Profit 8044 6959
Bottling equity Income 365 374
Interest expenses (397) (329)
Interest income 67 41
Income before interest and Taxes 8079 7045
Provisions for income Taxes (2100) (1879)
Net Income 5979 5166
Less: Net income attributable to noncontroling interest (33) (24)
Net Income attributable to Pepsi Co 5946 5142
Net Income attributable to Pepsi Co common shares
Basic 3.81 3.26
Diluted 3.77 3.21

Balance Sheet:
(in millions expect per share value) 2009 2008

Asset
Current Assets
Cash and cash Equivalents 3943 2064
Short-term investment 192 213
Accounts and notes receivable, net 4624 4683
Inventories 2618 2522
Prepaid expenses and other current 1194 1324
assets
Total Current Assets 1257 1080
1 6
Property, Plant and Equipment, net 1267 1166
1 3
Amortizable Intangible Assets, net 841 732
Goodwill 6534 5124
Other nonamortizable intangible assets 1782 1128
Nonamortizable Intangible Assets 8316 6252
Investments in Noncontrolled 4484 3883
Affiliates
Other Assets 965 2658
Total Assets 3984 3599
8 4

Balance Sheet:
(in million expect per share amount) 2009 2008

LIABILITIES AND EQUITY
Current Liabilities
Short-term obligations $ 464 $ 369
Accounts payable and other current liabilities 8127 8273
Income taxes payable 165 145
Total Current Liabilities 8756 8787
Long-Term Debt Obligations 7400 7858
Other Liabilities 5591 6541
Deferred Income Taxes 659 226
Total Liabilities 22406 23412
Commitments and Contingencies
Preferred Stock, no par value 41 41
Repurchased Preferred Stock (145) (138)
PepsiCo Common Shareholders’ Equity
Common stock, par value 1 2/3¢ per share 30 30
Capital in excess of par value 250 351
Retained earnings 33805 30638
Accumulated other comprehensive loss (3794) (4694)
Repurchased common stock, at cost (13383 (14122
) )
Total PepsiCo Common Shareholders’ Equity 16908 12203
Noncontrolling interests 638 476
Total Equity 17442 12582
Total Liabilities and Equity 39848 35994


Liquidity Ratios
A firm’s ability to satisfy its short- term obligations as the become due.
Ratios Year Year Comments

2009 2008
Liquidity Ratios
Current Ratio 1.44 1.23 Good
Quick Ratio 1.14 0.94 Good
Absolute Liquid Ratio 1.00 0.79 Good
Working Capital 381500 201900 Good
0 0
Interpretation:-
Current Ratio
The current ratio is Increasing that’s means the total assets against the total liabilities has been
increased. And firm is in better position.
Quick Ratio
The quick ratio also increasing its mean our inventory converted quickly and become the part of
production.
Absolute Liquid Ratio
The absolute quick ratio increasing it means we can easily pay our debts.
Working Capital
Working capital also increases so we can meet our daily expenses easily.

Debt Ratio
The debt position of a firm indicates the amount of the other peoples ‘s money being used to
generates profits.
Debt Ratios
Ratios Year Year Comments
2009 2008
Debt Ratio 0.56 0.65 Good
Time Interest Earned Ratio 21.18 22.2 Poor
9
Interpretation
Debt Ratio
The debt position of a firm indicates the amount of the other people’s being used to generate
profits. Debt ratio shows the firm assets financed by the others. This ratio decrease from last year
which indicates that lesser assets are financed by the outsiders.
Time Interest Earned Ratio

Time interest earned ratio indicates the firm ability to pay the contractual interest payments.
This ratio decrease from last year.

Profitability Ratio
The Ratio which is used to indicates the overall profitability of the firm. As a group, these
measures enables the analyst to evaluate the firm’s profit with respect to a given level of sales, a
certain level of assets, or the owner’s investments.
Profitability ratios
Ratios Year Year Comment
2009 2008 s
Gross Profit Ratio 53.50 52.95 Good
% %
Operating Profit ratio 18.60 16.10 Good
% %
Net Profit Ratio 13.83 11.94 Good
% %
Earning Per Share 3.33 2.88 Good
Return on Equity 35.16 42.14 Poor
% % Interpretation
Return on Total Assets 14.92 14.28 Good
% % Gross Profit Ratio
The Gross Profit Margin with respect to the previous year is increase and indicates that our
production cost is less from last year.
Operating Profit Ratio
Operating profit margin is increasing its mean our profit margin increase as compare to
expenses. Firms operations become effective and save the operating cost.
Net Profit Ratio
Net profit also increases that shows our expenses of Tax and our expenses for interest decrease.
Earning Per share
Earning per share also increasing that is due to increase in Net profit Margin.
Return on Equity
Return on equity also decreasing because of net profit.
Return on Total Assets
Return on Total Assets showing increasing trend. Its firm is using its assets optimally.

Activity Ratio
Measure the speed with which various accounts are converted into sales or cash-inflow or
outflow.
Activity Ratios
2009 2008 s
Inventory Turnover 7.68 Times 8.07 Times Poor
Average Collection period 38.50 Days 39 Days Good
Total Assets turnover Ratio 1.08 1.20 Poor
Interpretation
Inventory Turnover
The inventory turnover ratio decrease by some points and it’s unfavorable for our operation of
business. Its mean the inventory less rapidly become the part of production.
Average collection Period

Average collection period is decreased this is favorable for the company. This means company is
better position to recover its credit.
Total Assets Turnover

Total Asset turnover is decrease because we are not properly utilized the assets it’s become the
cause of less sales volume.

Market Ratio
Relate a firm’s market value, as measured by its current share price, to a certain accounting
values.
Market Ratios
2009 2008 s
Price Earning Ratio 15.0 24.7 Poor
2 1
Market/ Book Ratio 3.33 2.88 Good
Interpretation
Price Earning Ratio
Price Earning Ratio decrease with respect to the previous year .Price earning ratio decrease its
shows the company performs is not up to the secondary market.
Market Book Ratio
Market Book ratio increase because our equity or retained earning increase so automatically its
effects the market /book ratio.

TREND ANALYSIS
In trend analysis we done two types of analysis, these are

1. Horizontal Analysis
It is conducted by setting consecutive balance sheet, income statement side-by-side and
reviewing changes in individual categories on a year-to-year or multiyear basis.
A comparison of statements over several years reveals direction, speed and extent of a trend(s).
The horizontal financial statements analysis is done by restating amount of each item or group
of items as a percentage.
2. Vertical Analysis
Like horizontal analysis this can also done for balance sheet and income statement. Here we
assign 100% value to any key item of balance sheet or income statement and then see portion of
other items in this percentage.


Description 2008 2009 % Comments

Change
Net Revenue 100 (0.04) Unfavorable
Cost of Sale 100 (1.23) Favorable
Gross profit 100 1.01 Favorable
Selling, general and administrative expenses 100 (5.35) Favorable
Amortization of intangible assets 100 (1.58) Favorable
Operating Profit 100 15.59 Favorable
Bottling equity Income 100 (2.40) Unfavorable
Interest expenses 100 20.66 Unfavorable
Interest income 100 63.41 Favorable
Income before interest and Taxes 100 14.67 Favorable
Provisions for income Taxes 100 11.76 Unfavorable
Net Income 100 15.73 Favorable
Less: Net income attributable to non-controlling 100 37.50 Unfavorable
interest
Net Income attributable to Pepsi Co 100 15.63 Favorable


Description 2008 2009 Comments

%
change
Asset
Current Assets
Cash and cash Equivalents 100 91.03 Favorable
Short-term investment 100 (9.85) Unfavorable
Accounts and notes receivable, net 100 (1.25) Unfavorable
Inventories 100 3.80 Favorable
Prepaid expenses and other current 100 (9.81) Unfavorable
assets
Total Current Assets 100 16.33 Favorable
Property, Plant and Equipment, net 100 8.64 Favorable
Amortizable Intangible Assets, net 100 14.89 Favorable
Goodwill 100 27.51 Favorable
Other non-amortizable intangible 100 4.78 Favorable
assets
Non-amortizable Intangible Assets 100 1.02 Favorable
Investments in Non-controlled 100 15.47 Favorable
Affiliates
Other Assets 100 (63.69) Unfavorable
Total Assets 100 10.70 Favorable

Description 200 2009 Comments

8 % Change
Current Liabilities
Short-term obligations 100 25.74 Unfavorable
Accounts payable and other current liabilities 100 (1.76) Favorable
Income taxes payable 100 13.79 Unfavorable
Total Current Liabilities 100 (0.35) Favorable
Long-Term Debt Obligations 100 (5.82) Favorable
Other Liabilities 100 (14.52) Favorable
Deferred Income Taxes 100 191.59 Unfavorable
Total Liabilities 100 (4.29) Favorable
Preferred Stock, no par value 100 - -
Repurchased Preferred Stock 100 5.07 Favorable
Common stock, par value 1 2/3¢ per share 100 - -
Capital in excess of par value 100 (28.77) Unfavorable
Retained earnings 100 10.33 Favorable
Accumulated other comprehensive loss 100 (19.17) Favorable
Repurchased common stock, at cost 100 (5.23) Unfavorable
Total PepsiCo Common Shareholders’ Equity 100 38.55 Favorable
Non-controlling interests 100 25.39 Favorable
Total Equity 100 38.62 Favorable
Total Liabilities and Equity 100 10.70 Favorable


Description 2009 2008

% %
Net Revenue 100 100
Cost of Sale 46.49 47.05
Gross profit 53.50 52.95
Selling, general and administrative expenses 34.76 36.71
Amortization of intangible assets 0.15 0.15
Operating Profit 18.60 16.09
Bottling equity Income 0.85 0.86
Interest expenses 0.91 0.76
Interest income 0.15 0.09
Income before interest and Taxes 18.68 16.29
Provisions for income Taxes 4.85 4.34
Net Income 13.83 11.94
Less: Net income attributable to non-controlling interest (0.07 (0.05
) )
Net Income attributable to Pepsi Co 13.75 11.88



Asset % %
Current Assets
Cash and cash Equivalents 9.89 5.73
Short-term investment 0.48 0.59
Accounts and notes receivable, net 11.60 13.0
1
Inventories 6.56 7.00
Prepaid expenses and other current 2.99 3.67
assets
Total Current Assets 31.54 30.0
2
Property, Plant and Equipment, net 31.79 32.4
0
Amortizable Intangible Assets, net 2.11 2.03
Goodwill 16.39 14.2
3
Other non-amortizable intangible 4.47 3.13
assets
Non-amortizable Intangible Assets 20.86 17.3
6
Investments in Non-controlled 11.25 10.7
Affiliates 8
Other Assets 2.42 7.38
Total Assets 100 100


% %
Current Liabilities
Short-term obligations 1.16 1.02
Accounts payable and other current liabilities 20.39 22.98
Income taxes payable 0.41 0.40
Total Current Liabilities 21.97 24.41
Long-Term Debt Obligations 17.57 21.83
Other Liabilities 14.03 18.17
Deferred Income Taxes 1.65 0.62
Total Liabilities 56.22 65.04
Preferred Stock, no par value 0.10 0.11
Repurchased Preferred Stock (0.36) (0.38)
Common stock, par value 1 2/3¢ per share 0.07 0.08
Capital in excess of par value 0.62 0.97
Retained earnings 84.83 85.11
Accumulated other comprehensive loss (9.52) (13.04
)
Repurchased common stock, at cost (33.58 39.23
)
Total PepsiCo Common Shareholders’ Equity 42.43 33.90
Non-controlling interests 1.60 1.32
Total Equity 43.77 34.95
Total Liabilities and Equity 100 100


SWOT Analysis
SWOT analysis means the analysis of internal and external environment.

Internal environment refers towards the strengths and weaknesses of an organization while
external environment refers towards the opportunities and threats. We conducted the SWOT
analysis of NBC which is given below…
Strengths
Good strategy adoption

The strategies related production and supply of their product are really admirable
and these strategies play a vital role in capturing the market share.
Customer Positioning
Pepsi Co. creates its good reputation in the market as compare to other brands and
consumers positioning is high.
Experienced Staff
Pepsi Co. has well experienced, competent and committed staff in marketing
department with high marketing skills and because of this advantage they are
grasping the high market share.
Focus on Differentiation
Differentiation is a tool which plays a vital role for success in the competition and
NBC always prefer to be different from its competitors.
Revenue Growth
Their domestic organization achieved revenue growth from a healthy pricing
environment, strong field execution, and effective innovation as their diet, water
and flavor portfolios partially compensate a continued shift away from their Pepsi
trademark.
Revenue growth and cost management offset a relatively more volatile raw
material cost environment. The profitability of their international business

continued to improve and it has become a more significant contributor to their
performance.
Sponsorship
To increase its popularity and awareness among people the Pepsi sponsors cricket
matches which plays a vital role in its promotions.
Strong Distributors
Pepsi Co. search strong, experienced, devoted and loyal people. Basic
requirement of them is financially strong people, devoted with product, loyal with
company and involve in their business.
Weaknesses
No Proper Infrastructure
There is no proper structure within the organization like work space problems etc
due to which employees got exhausted.
Low Wage Rate
Low wages for the employees and the other staff with respect to their main
competitor Coke.
Conflict Management
There are so many conflicts and use of politics inside the organization but
management is not taking any serious actions about it.
Fewer Incentives
NBC offer fewer incentives with respect to the Coke to their retailers and
distributors.
High Rate of Discrepancy
Production is good but the have high rate of problems in filling such as
maintenance of level of liquid in filling etc.

Opportunities
Innovation or Cost Reduction Edge

Pepsi Co. has the opportunity of getting more satisfaction of the customer by
offering the lower cost products in comparison with its competitors or by
providing the high quality, innovative products to its customer as well as the by
the quick responsiveness.
Strategic Planning for Customer Satisfaction
Pepsi Cola strives to create value for their consumers, customers, bottlers and the
community. They believe their success depends on their ability to satisfy their
beverage consumption demands and their ability to add value for their customers.
Nevertheless, attaining efficiency, quality, innovation, and responsiveness to
customers requires a strategic plan.
Opportunity of Penetration
Pepsi Co.’s brands are moving in more than 200 countries. Pepsi Co. has the
opportunity to expand its products in the countries where it is not performing its
functions as well as by providing the high quality product to the existing customer
to retain them.
Opportunity to Attract By Incentives
As Pepsi is a well known brand in all over the Pakistan so it also has the
opportunity to create its value and to attract the customer by offering extra
incentives to the retailers and specially consumers.

Threats
Existing Competitor’s Management
Pepsi Co. has the threat of its competitor which is putting its best to get the
maximum customer satisfaction and to maximize its profits by its active and keen
management.
New Entrance
It is also facing the threats of newly introduced beverages in the market such as
Gourmet, Amrat and Fizz etc. They are capturing market share up to their best
which is not in the favor of Pepsi Co.

Suggestions
➢ Management is not participative because of the group think, their own priorities and
politics within the NBC. The company should use the participative management system
and eliminate the other factors by having a strong and proper check in order to increase
the job satisfaction level of employees.
➢ Company management has to put its all efforts to change the prevailing culture of the Co.
to avoid the mentioned problems such as group think, favoritism, politics etc.
➢ Employees’ turnover rate is very high in the organization. Management should take
effective actions to reduce it.
➢ Latest reorganizing efforts are necessary to make it cost effective also to meet the current
needs of modern environment.
➢ To attract the customer in the future, NBC have to make extensive efforts by offering
extra incentives to retailers and consumers.
➢ The infrastructure of the company is another thing which needs to be improved which
should provide a relaxed working environment to the labor and other staff.
➢ The procedure of taking services from the company must be made easier and straight
forward not involving long difficult procedure for simple tasks.

Conclusion
After going through the whole period of internship as an internee I’ve observed so many
professional activities and learnt as well. This report is basically is a brief explanation of the
activities I’ve observed and learnt from the NBC. NBC is a professional organization with very
cooperative staff which really helps the internees and newly entered employees to make them
aware about the organization. As I mentioned earlier in this report about department where I’ve
done my internship and staff with whose kind cooperation I’ve seen the practical implementation
of the bookish knowledge. I also learn that how to perform the duties in the meaningful ways by
accomplishing my assignments given by the concerning departments heads and their executives.
They were also there to guide me in the ambiguities.
Market and Research Department where I spent one week is a memorable time where Ass.
Manager Marketing Services Mr. Mahmood Ahmed really gave us a tough time about preparing
an analysis based presentation regarding competition among Pepsi, Coke and other soft drink
brands.
Similarly in the Production Dept. we learnt that how the raw material including water, syrup and
sugar are mixed. We also assigned an assignment about calculating the time of an empty from
shipping department to the production until it is not ready to use by the consumer (filling time).
And then in the Post Mix and Sales & Marketing departments assigned us the preparation of
reports about these departments after giving us the relevant information about these. These
reports are dispatched in this report.
Overall I am very satisfied with my internship in Pepsi because now I really have some
knowledge about the practical field and experience as well.

Bibliography
Book Reference:
➢ LAWRENCE J. GITMAN,2005 “Managerial Finance”, Financial statement and
Analysis”.58-70
➢ Frank K. Reilly and Keith C. Brown, 2007 “Investment Analysis & Portfolio
Management,” Financial Ratios”, 102-113
Websites Reference:
Visited Date Time of Visit
➢ www.pepsico.com/Company.html 15/08/2010 10:21pm
➢ www.sirpepsi.com/pepsi11.htm 17/08/2010 3:00 pm
➢ www.nbcpepsi.com 20/08/2010 3:10 am

Glossary
Department:
A group of people who work together and possesses similar skills or use same knowledge, tools
or techniques to perform their jobs.
Distributer:
Organization that help other organizations to sell their goods or services to the customers.
Director delivery system:

Distributions system in which company directly distribute its products to the retailers.
Human Resource Management:
Activates which are necessary for the staffing of the organizations and sustaining high employee
Performance.
Knowledge:
A blend of information, experience and insight that provide a framework that can be thoughtfully
applied when assessing new information or evaluating relevant situation.
Management:
The process of using organizational resources to achieve organizational objectives through

planning, organizing, staffing, leading and controlling.
Mission:
A firm’s purpose and where it fits into the world.
Opportunities:
Positive trends in the external environment of the company.

Organization:
A deliberate arrangement of the people to accomplish some specific purpose.
Production:
The process of converting the raw material into finished goods.
Shipping:
Transfer of goods from one place to another desired place.
Strategy:
A cluster of decisions about what goals to peruse, what actions to take and how to use resources
to achieve its goals.
SWOT Analysis:
An analysis of an organization’s strengths, weakness, opportunities and threats.
TOT’s:
TOT’s means list of items available in a shop, which helps to sell product conveniently on
priority basis.
Vision:
An ideal picture of the future of an organization.
DPG:
Duty Paid Godown
RG:
Registered Godown

Final Internship Report On Pepsi Co.

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Final Internship Report On Pepsi Co.

Diunggah oleh

Hak Cipta:

Format Tersedia

On Pepsi Cola International

Nau-Bahar Bottling Company, Gujranwala

HR Executive Mr. Basharat Zia

Afnan Umar Khan University of the Punjab, Gujranwala Campus

Date of Submission: 28.08.2010

NBC, 38 S.I Gujranwala, Pakistan.

University Of the Punjab, Gujranwala Campus

University Of the Punjab, Gujranwala Campus Page 2

A brief History of Pepsi

University Of the Punjab, Gujranwala Campus Page 3

University Of the Punjab, Gujranwala Campus Page 4

University Of the Punjab, Gujranwala Campus Page 5

University Of the Punjab, Gujranwala Campus Page 6

University Of the Punjab, Gujranwala Campus Page 7

University Of the Punjab, Gujranwala Campus Page 8

University Of the Punjab, Gujranwala Campus Page 9

History of Pepsi in Pakistan

University Of the Punjab, Gujranwala Campus Page 10

Nau-Bahar Bottling Company

➢ Director delivery system

Manufacturer Retailers Customers

University Of the Punjab, Gujranwala Campus Page 11

Indirect Delivery System

Manufacturers Distributor Retailers Customers

University Of the Punjab, Gujranwala Campus Page 12

University Of the Punjab, Gujranwala Campus Page 13

Organization: Nau-Bahar Pepsi cola industry

University Of the Punjab, Gujranwala Campus Page 14

COMPLETE PRODUCT LINE OF NAUBAHAR BOTTLING

1000 ML(PET) 6 bottles per case 1000 ML per bottle

7UP 1000 ML 12 bottles per case 1000 ML per bottle

University Of the Punjab, Gujranwala Campus Page 15

University Of the Punjab, Gujranwala Campus Page 16

Human Resource Management Department

Recruitment procedure in NBC

The candidates for the jobs are selected on the basis of

University Of the Punjab, Gujranwala Campus Page 17

Management Information System (MIS)

Observing Plant’s efficiency

University Of the Punjab, Gujranwala Campus Page 18

Sales and distribution System

➢ load report ( dealer wise, depot wise )

General Ledger System

University Of the Punjab, Gujranwala Campus Page 19

Marketing Information System

➢ Name & address of each outlet

➢ Distributor & area wise

University Of the Punjab, Gujranwala Campus Page 20

University Of the Punjab, Gujranwala Campus Page 21

University Of the Punjab, Gujranwala Campus Page 22

➢ Shipping is responsible for managing the empties.

Empties’ supply to plant

University Of the Punjab, Gujranwala Campus Page 23

University Of the Punjab, Gujranwala Campus Page 24

Raw material used by NBC includes…

250ML 1000ML 1500ML 1000ML

P # 01 - 1100 Cs/hr 600Cs/hr - -

University Of the Punjab, Gujranwala Campus Page 25

University Of the Punjab, Gujranwala Campus Page 26

Production process is a complete cycle of interrelated activities which is as follows…

University Of the Punjab, Gujranwala Campus Page 27

University Of the Punjab, Gujranwala Campus Page 28