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Coca Cola Case

VIEWS: 559 PAGES: 30

									Jibran, Ahmed, Moen and Shell
              Presented by:
             Jibran Wasiq

             Ahmad Rafiq
             Naeem Sabir
              Fazal Imran

Case Study
• Coca Cola.. An overview
  – Facts and Statistics
  – Mission and Vision
• Making the world’s best known product…
  – Case Study Q & A
• Coca Cola Pakistan
  – Pakistani Parallel
• Conclusion
Coca Cola.. An Overview
    Coca Cola… An overview
• The History:
   – Over 120 year old company
   – The Singapore Straits Aerated Water Company; that
     later became Fraser and Neave Ltd. (1883)
   – ‘Coca-Cola’: invented by Dr John S. P. (1886)
   – Head office in Atlanta, Georgia
• Current Market Cap. is over $119.24B (Google finance)
• The Chairman and CEO: E. Neville Isdell (
             Mission & Vision
Everything Coca Cola does is inspired by their
  enduring mission:

* To Refresh the World... in body, mind, and spirit.
* To Inspire Moments of Optimism... through our
  brands and our actions.
* To Create Value and Make a Difference...
  everywhere we engage.
               Mission & Vision
To achieve sustainable growth, we have established a vision with
  clear goals.

  * Profit: Maximizing return to shareowners while being mindful
  of our overall responsibilities.
  * People: Being a great place to work where people are inspired
  to be the best they can be.
  * Portfolio: Bringing to the world a portfolio of beverage brands
  that anticipate and satisfy peoples’ desires and needs.
  * Partners: Nurturing a winning network of partners and
  building mutual loyalty.
  * Planet: Being a responsible global citizen that makes a
              Coca-Cola Statistics
•   Coca cola owns more than ½ of the world’s beverages.
•   Coke was first advertised as a remedy for headaches and exhaustion
•   There are 27 different varieties of coke made by Coca-Cola
•   First bottle of Coke was sold over 120 years ago on May 8, 1886 in
    Atlanta, Georgia.
•   Coca-Cola sold only 25 bottles in the first year
•   Nowadays, they sell over one billion bottles per day
•   A single share in Coke that was bought in 1919 would be worth
    $92,500 in 1997
•   1919 is when the Coca-Cola went public
•   The sales of Coke in the first year was $50, and the expenses were
•   If you stacked all of the bottles of Coke that had ever been made end
    to end, it would reach to the moon and back 1,045 times!
Making the world’s best known
  product… (Case Study)
Making the world’s best known
 Making the world’s best known
Main Inputs for making Coke

1. capital (stock, loan-stock, loan etc.)
2. plant and equipment (the production line, fill
   height detectors, etc.)
3. labor (managers, employees, etc.)
4. raw materials (e.g. cans, bottles, concentrate,
   carbonates, sugar, water, etc)

The Concentrated Beverage Base is ALWAYS
   supplied by the company to maintain secrecy and
    Making the world’s best known
Main Processed involved in making Coke

•   Creating the packaging material
•   Preparing the drink
•   Bottling and canning the finished drink
•   Quality Control Checks at each stage or
  Making the world’s best known
Continuous Flow Production
• Production takes place continuously in batches
• Computer Controlled automated equipment handle each stage of
  the production process
• Runs 24/7/365
• Helps maintain quality and efficiency

Ideal for Coca Cola because:
• Homogenous Product
• Identical Steps needed to be repeated.
• Identical Product attributes expected.
• Computerized Equipment presence to reduce cost.
 Making the world’s best known
• Constant quality checks to eliminate waste and
  maintain high quality
• TQM takes place at EVERY STEP of the
  production process
• Everyone tries to improve what they do
• Quality Checks of Supplier Items
• TQM considers customer satisfaction to be the
  heart of the production process
 Making the world’s best known
TQM & Kaizen
• Kaizen aims at ‘continuous improvement’
• TQM aims at eliminating defects completely

• Quality control in Coca Cola deals with quality
  of product
• Kaizen-style TQM encourages building quality
  into its people brings a company a half-way
  towards producing quality products.
 Making the world’s best known
JIT (Just in Time)
• Zero Inventory System designed to save Inventory
  carrying costs
• Ensures materials arrive at facility just when needed
• Requires extensive cooperation between company
  and suppliers
• Toyota Motor Company
• Wal*mart
• Pepsi Co
• Pakistan Tobacco Company Ltd.
Coca Cola Pakistan
             Coca Cola Pakistan
• History:
   – The Coca-Cola company began operations in 1953
     through different franchises
   – CCBPL acquired all the franchises in 1996

• The Coca-Cola System in Pakistan
   – Operates through eight bottlers
      • Six are majority-owned by CCBPL
      • Rest are independent licensees
   – Serves around 75,000 retailers
   – Employs around 2000 people
           Coca Cola Pakistan
• Company Setup
  – Coca Cola Export Corporation
  – Coca Cola Bottlers Pakistan Limited (CCBPL)

• Coca-Cola Export Corporation
  – Incorporated in USA having its country office in
    Lahore, Pakistan
  – Monitoring CCBPL Operations
  – Providing concentrate to CCBPL
  – Negotiation with business partners (McDonalds)
          Coca Cola Pakistan
• Coca-Cola Beverages Pakistan Limited (CCBPL)
  – Processing of coke and bottling
  – Sales and marketing
  – Report to Coca-Cola Export Corporation and Coca-
    Cola Bottlers
  – Operations and logistics

• Target Market
  – SEC A, B, C and D
  – Main marketing campaigns serve as reminders
            Coca Cola Pakistan
• Plant Locations of CCBPL
     •   Karachi
     •   Gujranwala
     •   Faisalabad
     •   Rahim Yar Khan
     •   Multan
     •   Lahore
• Independently owned – through franchisee
     • Rawalpindi
     • Peshawar
              Coca Cola Pakistan
• Current Offerings
   – Coca-Cola, Sprite, Fanta, Diet-Coke and Sprite Zero
• Packaging
   –   250 ml RGB, NRB
   –   330 ml NR can
   –   500 ml PET
   –   1 liter RGB
   –   1.5 liter PET
   –   2.25 liter JUMBO
   –   Premix 18 liters and BIB 20 liters
Parallel Case
                      Parallel Case
Pakistan Tobacco Company Limited
The tobacco plant is a member of the same botanical family as tomatoes,
   potatoes, peppers or eggplants. An adaptive species, it can be grown
   economically from 50° Northern to 40° Southern latitude.

• More than 100 countries grow tobacco. China is the largest producer,
   followed by the United States, Brazil, India, Zimbabwe and Turkey.
• Processes to convert Seed to Smoke
1. Harvesting
2. Curing
3. Processing
4. Manufacture
5. Trade Marketing/Distribution
                      Parallel Case
PTC (Quality Controls and JIT)

   –   Tobacco Leaves are collected only from the approved suppliers.
   –   8 different tests are conducted.
   –   Containers are aseptically cleaned
   –   On reaching plant, tobacco is again tested.
   –   When all tests passed, tobacco is accepted by QC.
   –   Tobacco is standardized, processed and packed.
   –   Packed using advance aluminum to lengthen shelf life
   –   Every pack of cigarette is also inspected
                Parallel Case

• Maintain maximum 2 days inventory
• Very short shelf life so only suitable method is JIT
• TQM implemented at every stage of production
  process in order to maintain consistently high
  quality of product
• Helps in maintaining high Customer satisfaction
• Coca-Cola employs
  – Highest quality processes
  – Established Standards
• Guarantees the standardized product that
  meets customers’ high expectations
• TQM and JIT are the heart of their
Thank you!


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