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Appraising Quality

Management Practices
followed by
Rukhsana Karim(2058)
Amna Altaf(2068)
Zainub Naeem(2055)
Shabana Ali Khan(2051)
Project
Introducti
on
Project Objective
Learn how Quality Management Practices
play role in
the individual and organizational
development process.

Gain practical knowledge in regards to


Quality
Management practices.

Learn about the application of Quality


Management tools
& practices in Coca- Cola Beverages
Pakistan Ltd.

Provide CCBPL with suggestions after


getting know how
of their weak areas in the application of
Coca-Cola Introduction

Coca-Cola is one of the largest


manufacturers, distributors and marketers
of non alcoholic beverages around the
world.
The Coca-Cola offers nearly 400 brands in
over 312 countries.
History of Coca-Cola
Company
Coca-Cola syrup was created by
pharmacist
Dr. Johan Styth Pemberton on May 8,
1886.
Coca-Cola created the unique logo the
unique logo
that has been trade mark ever since.
By May 29,1886 the first coca cola ad
appeared
in the Atlanta Journal on the patent
medicine page.
In 1891, G. Candler, at Atlanta Business
History of Coca-cola in
Pakistan
In 1950 coca cola started its operations in Pakistan.

In 1996 coca cola itself took over business operations in

Pakistan and setup its 1st production plant in Karachi.

Today CCBPL is operated directly under the supervision


of the Coca-Cola International based in Atlanta
Georgia State, USA .It owns 7 plants all around in Pakistan.

Last year in June Coca-Cola Icecek (CCI), the Turkish unit


of Coca-Cola, has acquired a 50% stake in Coca-Cola
Beverages Pakistan Ltd (CCBPL) for USD 80 million. Both
parties have signed a letter of intent regarding the
share sale.
Mission
We strive to refresh the world ,inspire moments
of optimism and happiness, create value and
make a difference.

Vision
To continue to thrive as a business over the
next ten years and beyond, we must look
ahead, understand the trends and forces that
will shape our business in the future and move
swiftly to prepare for what's to come. We must
get ready for tomorrow today.
Leadership Style of
CCBPL CCBPL
has a democratic leadership style.

Managers of CCBPL shares some of the


decisions that the make
with their staff & subordinates.

They want to perform their tasks & achieve


goals with the
collective efforts.

Meanwhile, within a democratic environment in


the
organization CCBPL wants t heir managers to
be assertive
and decisive.

Meaning that the managers of CCBPL make


organizational
Structure
structure as they value and emphasize highly on
their tasks and
objectives.

Team members are allowed to share information


across the
task boundaries.

It allows for specialization that can increase depth


of knowledge
and allow professional development and career
progression to
be managed.

At the same time they also have a centralized


organizational
structure, which enables their top management to
get the hold of
the company as much as possible.
Motivation
CCBPL believes that employees must have a stability
in their
current position as well as potential growth within
the company.

CCBPL motivates their employees with incentives,


occupational
and personal development opportunities which
includes basic
life insurance, basic long term disability and health
insurance. Retirement, pension and other post
retirement benefit
plans.

The company offer all of their employees some paid


time off.
Motivation cont’d
Further more to recognize and appreciate
the good work by
the employees, trophies, cash prices and
excellence awards
are also given.

Every month the list of top ten performances


given by
the employees is issued by EXCOM, to
recognize and
laud the efforts and boost their morals for
good work.
Culture
Power distance: (High)
As CCBPL has a centralized organizational structure.
Centralization of structure makes the top management to be
able to control as much of the company as possible, where
they wish to consolidate power and decision-making abilities.

Uncertainty Avoidance: (Low)


The CCBPL Company has low level of uncertainties avoidance
because they value task structure and remain focused on their
perspectives. Due to low uncertainties avoidance they
overlook the factors like creativity, innovation and flexibility.
Recently they witnessed their sales getting declined because
they had overlooked the present price fluctuation trend in the
beverage industry.
Culture cont’d
Individualism: (Low)
The Coca- Cola Beverages Pakistan Ltd has low
individualism because task achievement is more
important for them. They believe that each
individual effort at CCBPL should have its own
unique connectivity tied to the company’s
mission and vision.

Masculinity: (High)
In Coca-Cola Beverages Pakistan Ltd, there is a
high masculinity. They stress on equity,
competition and performance. Their managers
are expected to be assertive and decisive. They
have formal business conduct with lots of rules,
regulations and policies.
Stress
Management
There is no formal implementation of stress
management policies in CCBPL. But because
they want maximum output from their
employees, so they provide them different
entertainment and recreational activities which
include trips, tours, occasional parties and
gatherings are also held where people come
with their families. Every month, in the each
territory, the birthday party is arranged where
all the employees having different designations
including office boy, kitchen staff are invited to
cut the cake and celebrate their birthday with
the whole staff.
It has always been prone to the
Change
change managing practices and has
Management:
undergone radical changes over the
years.

It keeps on defining and


implementing procedures and/or
technologies to deal with changes in
their internal business environment
and according to the changing trends
of the beverage industry.

They believe the more effectively you


deal with change, the more likely you
are to thrive.

Since, Turkish unit of Coca- Cola has


acquired 50% stake in CCBPL last
year, the whole management at
CCBPL is again going through radical
changes nowadays.
Corporate Social Responsibility:

CCBPL’s corporate commitment is


incorporated into an internal policy
that ensures :

Their products are safe and healthy


for the consumer.

Their products and operations do


not negatively affect the
environment.

Treating their workers and


applicants with equality and that
their suppliers also meet certain
social and environmental
standards.

CCBPL is affiliated to different


Corporate Social Responsibility:

They have a School Adoption


Program all over the country
where they provide facilities to
those schools whom nobody owns
and takes care of them.

They are planning to install water


recycling plants under “Give it
Back” program ,at their each
The refrigerators that they use or
territory.
provide to stores or bodegas are
environmentally friendly, which
minimizes their carbon footprint.
The Coca-Cola System
The company operates a franchised distributors system
where the CCBPL company only produces syrups and
concentrate which is then sold to various TERRITORIES
throughout the country.
Distribut
Plant Depot
product ion
wareho Wareho
ion Warehou
use use
se

Retail Retail Consum


Stock Shelf er

CCBPL has seven territories (plants) in Pakistan. Their


territorial system is not much inter-linked. But each
territory has matrix system internally and so, within the
territory they are fully inter-linked.
Questionnaire
Evaluation
7.14%
14.20%

7.14%

top managent commitment


training
motivation
cutomer feedback
11.43%
change management
12.85%
risk management
stressmanagement

11.43%
8.58%
Comparison
Factors Coca-cola Pepsi

Earnings 5.01% 3.34%

Cash flow 11.04% 4.37%

Book value 11.94% 9.87%

Market capital 465.48 95.39 billion


million
Profit 10.80% 11.90%

Brands 8 in Pakistan 6 in Pakistan

Revenue 1.46 billion 8.26 billion

Net income 9.09 million 5.14 billion

Sales growth 1.9% 9.6%


CONCLUSION
In Pakistan as compared to Pepsi, Coca-Cola has
less number of consumers as Pepsi’s market share
in Pakistan is approximately 58% where as coke
market share is hovering about 32%, hence the
conclusion is that Coca-Cola must enhance factors
such as relationship marketing, innovation and
technology specially in Pakistan to attain market
leader position in this region as well.
Equal advertisement of all products and centralization of
their production and distributions units.
Recommendations
Coca-cola must enhance factors such as relationship,
marketing and innovation especially in Pakistan to attain
market share.

Company should increase the sale of coca-cola in rural


areas as well.

The company should be always in a position to receive


continuous feedback and suggestions from its consumers
as well as from the market.

A strong watch should be kept on distributors also,


because in some cases, they were found to be cheating
the retailers and affecting the goodwill of company.

CCBPL Management after implementing a required


change should learn to use it, to their maximum