coca cola_final project

8/6/2019 Coca Cola_final Project

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INTRODUCTION

EXECUTIVE SUMMARY

The recommendation of Coca-Cola Company is based on performing various valuation

models, which include HR practices, economic profit analysis, relative valuation and a

fundamental price to earnings valuation model that revealed the Coca-Cola Company to

be overvalued. Even though they find the stock to be overvalued and they feel that KO

has some promising outlooks as well as possible challenges in the near future and they

want to recommend it as a hold instead of a sell.


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The Coca-Cola Company is the #1 company within the non-alcoholic beverages industry.

They have a 20- year standing of being the leader and investors know that the Coca-Cola

Company has an extraordinary reputation for maximizing shareholder value.

Opportunities that exist for the company in the future is expanding market share in the

non-carbonated beverages segment, a restructuring of their business model, and better

consistency of earnings results.A challenge that the Coca-Cola Company is facing is the struggle with their global

competitors in the fact that their HR practices are greater and less than coke. If coke

wants to more reputation in the world they must produce more incentives for employees

from which they more done work hard and produce good quality. Their new management

team needs to work on implementing cohesive goals between the two to reach the Coca-

Cola Companys long-term growth potential.

INTRODUCTION

Founded in 1886, the coca-cola company is the worlds leading manufacturer, marketer,and distributor of nonalcoholic beverage concentrates and syrups. The companys

corporate headquarters are in Atlanta, with local operations in over 200 countries around

the world.

Although Coca-Cola was first created in the United States, it quickly became popular

wherever it went. Our first international bottling plants opened in 1906 in Canada, Cuba

and Panama, soon followed by many more. Today, we produce more than 300 brands.

More than 70 percent of our income comes from outside the U.S., but the real reason weare a truly global company is that our products meet the varied taste preferences of

consumers everywhere.


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MISSION

We exist to create value for our share owners on a long-term basis by

building a business that enhances The Coca-Cola Companys trademarks. This is also our

ultimate commitment. Our mission is to develop long term relationships with ourcustomers by fulfilling their satisfaction level.

Vision

To achieve sustainable growth, we have established a vision with clear goals.

Profit: Maximizing return to shareowners while being mindful of our overallresponsibilities.

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 difference.

COMPETITORS

Cadbury Schweppes

Nestl

PepsiCo


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Human Resource Management within Coca Cola

Human Resource Management is an essential part for any organization. Moreover,

development of this department is the first step, the ground on which the future of thecompany depends. It is essential for every single business unit and especially for such

international company as Coca Cola. It is people, not technology who create the

company. Human Resource Management at Coca Cola Company has many advantages. It

is the global company and it is impossible to create certain policies or procedures

applicable in all divisions of the company, cultural and political differences need to be

taken into account. Therefore, the focus of this paper will be on four tasks and duties of

Human Resource Management (performance management, compensation, career

development, succession planning).

Basically the HRM practices are necessary for every organization. But

unfortunately in Pakistan not so much used HRM practices. In multinational companies

like coca cola have their own separate department of HRM. Every organization has itsown policies and strategies by which they control the functions of their departments.

Similarly, we also have own policies and strategies by which we control all the functions

of our departments. coca cola HR department is also conducting all the practices of HRM

likeJob analysis and design of work, recruitment and selection, training and


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development,performance appraisals, compensation, employee relationships,staff

welfare and medical policies and some other things like that. These all practices are

conducted by own policies and strategies.

HR department not make decisions related of its own department, they also conduct in

companys decision.

RECRUITMENT AND PLACEMENT

METHODS THE COMPANY IS EMPLOYING IN ORDER OCOLLECT JOB ANAYLSIS INFORMATION.

Job analysis is the procedure for determining the duties and skill requirements of a job

and the kind of person who should be hire for it. Job analysis consists of two productsone is job description and second job specification.

Coca cola company HR department check its own job description and job analysis

in which they get the information about employees work activities, human behavior,

performance standard, job context and human requirements and also other information

related to this conduct.HR department of coca cola used this information for Recruiting, selection,compensation, performance appraisal, training, and employees relationship.

COCA COLA use following methods:

QUALITATIVE

INTERNET BASED

JOB DESCRIPTION AND JOB SPECIFICATION.

JOB OVERVIEW:

Position: Other Sales Customer Service

Job Title : Inventory Control Planner


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RESPONSIBILITIES:

Responsible for maintaining inventory at maximum levels; supervisory or lead functions

required.

Count and reconcile daily inventory.

Monitor and track syrup usage in production runs.

Reconcile and confirm daily production orders.

Track and report efficiencies and yields associated with inventory/production.

Reconcile raw materials, all sales loads, and track/report in breakage, damage, and

loss.Report to management/supervision daily out of stock items/materials

Perform weekly age analysis and report any close dated product.

Assist in the training and development of departmental personnel.

Manage produced product replenishments to surrounding Sales Centers.

Manage inventory levels to plan at a third party warehouse.

High level of customer service focus and reponse required as an operations liason to a

Sales Center.

Generate and review daily reports.

Prepare and file reports.

Other duties as assigned by management.

CONTACT INFORMATION:

PH# 042-5666788-89

(Inventory control Department)

[email protected]

Visit our Internet website to explore other exciting opportunities!

www.cokecce.com/careers

JOB SPECIFICATION:

High School Diploma.

Bachelor's Degree in a related field preferred.

Minimum of 1 year Inventory Control experience.

Background knowledge of Management preferred.
http://www.cokecce.com/careershttp://www.cokecce.com/careers


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COCA COLA PERSONNEL NEEDS:

Coca cola HR department involves in company strategic planning and they also make

sufficient planning for hiring new employees in the future. They forecast for the expected

employees needs in the organization. They forecast of employees on the change

technology and increasing in productivity.

After planning we send this report to the head office for approval. If we get approval

from the head office then we start recruitment process.

EFFECTIVE RECRUITING IN COCA COLA

The process of deciding what positions the firm will have to fill, and how to fill them.

Coca cola HR department involves in company strategic planning and they also make

sufficient planning for hiring new employees in the future. They forecast for the expectedemployees needs in the organization. They forecast of employees on the change

technology and increasing in productivity.

After planning we send this report to the head office for approval. If we get

approval from the head office then we start recruitment process.

Their recruitment process is well established first of all we give ads in news

papers, company website, institutions etc.Once we receive an application form, fromcandidates with required documents and C V.

Yes there recruitment process is well effective. Because, the public image of the firm isvery good and their prescreening of applicants is effective and accurate.

Where does from the Organization Recruits employee:

It practices both the Internal and External Recruiting process for hiring of their

employees.


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How do they test their candidates? Are their tests reliable? Valid?

How do they validate their test?

Mostly they use a combination of any of the following tools:

- Interview.

- Group exercises.

- Presentations.

- Role plays/Situational Exercises.

- Questionnaire.

Yes, their tests are reliable and valid. Because, they use identical test for all of their new

employees and mostly their employees show a consistent result which shows that theyhad a reliable test system. Their tests show the fair sample of their jobs.

They validate their test by analyzing the job and then choose the test regarding to the job

standards. Then they practices their test on the old and new employees. At the end they

relate the scores obtained in the test with the criteria or actual performance.

How are the candidates Interviewed in the company? Do they

interviews meet objectives of predicting future performance of thecandidate:

The interview is designed to reveal more about you and your experiences. They will

ask for examples of how you behaved in different situations, maybe at school, university,

a club, at home or in previous jobs. Be honest, be yourself and it should be an enjoyable

experience.

Remember, interviews are a two-way process so use it to understand the nature of the role

and to make sure it really is what youre looking for.

Yes, their interviews meet the objectives of predicting future performance of candidates.

Because, their interviews are mostly job related. They will ask for how you behaved in

different situations and related questions like this which mostly shows the behavior of the

candidate.


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TRAINING AND DEVELOPMENT

How do they orient their new hires?

There are HR specialists who are responsible for orienting new hires.

COCA COLA uses 10 min discussion to a week long process to orient new

employees.

Do they follow a training process?

COCA COLA is a well renowned company so it would have good training process

which has following steps

Needs analysis

Instructional design

Validation

Implement the program

Evaluation

What training methods are used by the company? Does it have

university of its own? How are they utilizing it?

Coca cola use following training methods

On-the-Job Training

Apprenticeship Training

Job Instruction Training


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Lectures

Programmed Learning

Audiovisual Training

Simulated Training (also Vestibule Training)

Computer-Based Training (CBT)

COCA COLA has universities where they train the new employees It has

following details:

In 2007, we launched Coca-Cola University (CCU) -- a virtual, global university

for all learning and capability-building activities across our Company. CCU encompasses

a sophisticated catalog of tools, e-learning and classroom training aimed at providingexperiences that equip people with practical skills and knowledge to win in the

marketplace. The coursework is designed to help associates build capabilities and

expertise in commercial leadership, consumer marketing and franchise leadership, as well

as leadership and professional development. CCU also conducts best practices research

and provides coaching and consulting services to transfer learning between different parts

of the Coca-Cola system.

Associates are encouraged to seek training through our annual performance review

system. The system, which includes mid-year and year-end career discussions betweenassociates and their managers, gives everyone the opportunity to assess their annual

performance against set goals and objectives. Associates and managers discuss training

and development and outline a plan for training and enrichment. The associate and

manager are responsible for ensuring that the proper training is completed within the

calendar year.

The Company also encourages associates to pursue higher education programs, with

levels of reimbursement available for degree-seeking undergraduate and graduate studies

at accredited colleges and universities. We also provide associates the opportunity to take

advantage of many e-learning resources beyond CCU, as well as external conferences

and other education and training opportunities.


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How does the company evaluate its training effort?

First they design the studies and measure the effectiveness of the training efforts.

They measure it by graphs and a sample training evaluation forms.

What appraising method the company is using? Is it appropriate for

the company?

It can practice all the appraising methods but at present they are adopting thesefollowing methods

Graphical rating scale method

Alternation ranking method

Paired comparison method

Critical incidents

Narrative forms Behaviorally anchored rating scale (BARS)

Management by objective (MBO)

Its absolutely appropriate for the company because they are practicing these

appraising methods for a long time. And are succeeding as well.


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COMPENSATION

How are pay rates established in the company and why?

Coca cola are using following steps in establishing pay rates

Conduct a salary survey of what other employers are paying for comparable

jobs (to help ensure external equity).

Determine the worth of each job in your organization through job

evaluation (to ensure internal equity).

Group similar jobs into pay grades

Price each pay grade by using wave curves

Fine-tune pay rates.

How do they price their managerial jobs?


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CEO pay is set by the board of directors, while keeping in mind the factors such as the

business strategy and corporate trends.

Coca cola pay their CEOs based on the complexity of the jobs they filled. Boards are

reducing the relative importance of base salary while boosting the emphasis on

performance-based pay.

Are they using competency based pay and other compensation

method? Why are they doing so?

Competency-Based Pay:Paying for the employees range, depth, and types of skills and knowledge, rather

than for the job title he or she holds.

Yes they are using competency based pay method. Because they fixed their employees

salary on the basis of their knowledge, skills and abilities.

By the help of this method each employee will get exactly what he deserves. It helps to

support the high performance work system and in the end it also supports the strategic

aim of the organization.

What individual \ Group and organization-wide incentive programs

are they using?

HR department manager says that employees are our assets, there for we are careful

about their security and benefits. They practice individual incentive programs as follows:

Basic salary

Bonus

Medical facility

Pick and drop Social security

Do they have different incentive for senior management:


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They have different incentive for their senior management according to these

Compensable factors focus on problem solving, creativity, job scope, and technical

knowledge and expertise.

Most of their professional managers are earning more than the other managers in the

organization just because they have very furnisher skills, decision making power and a

strong background knowledge of their job.

What all benefits the company extends to its employees to keep

their moral and motivation level high:

Coca cola is giving the salaries to their employees on regular basis which encourages

their employees to work with full concentration and honesty and also providing them

facilities and other benefits that enhances their morale and motivation level. They provide

pick and drop services to their employees on the rural areas where transportation is notavailable easily. They also provide medical and health facilities to their loyal employees

also provide the bonuses and promotions if their employees deserves it.

EMPLOYEE RELATIONS

Employees are the most important assets of every company so it is very importantto give them importance. The satisfaction of the employees makes the company

successful. The reason is that if the employees of the company are satisfied then they willwork hard for the development of the company but if they are not satisfied with the

companys policies and they are not given their rights then they will leave the company

which can turn into a big loss. So employees relationship is very important for every

company.

Every company has its own policy. We have also got our own policy by which wegive importance to our employees if any employee faces some kind of problem related to

his life or work then he can directly go to the manager and he can share all of his problems. This thing should be adopted by every company because this makes the

employee satisfied with the company.

We believe that an open door policy is the best policy for employees relations

because due to this, our employees feel very independent and they know that if they get


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any problem, they can contact directly to the manager of their department. So we strongly

believe that such policy makes our employees satisfy with us.

Conclusion & Recommendations

Are HR polices and practices of the company in line with its

business strategy?

Yes, the polices and the practices of the company is in line with its business

strategy.

Any policy which is not appropriate in view of the literature you

have studied in your course?

No, we havent come across the kind of policy that we havent studied in our

course.

Suggestions for improvement.

We recommend them to make certain that the necessary financial and personnel

resources are made available in order to continuously improve their safety standards.

With this belief they should vow to all their customers.

They should set the safety standard at a level that ensures compliance with

governmental and company requirements. Protect their employees and ensure public

safety extending throughout our organization.

They should Integrate sound safety practices in to our daily business operation

even in the absence of specific regulatory requirements use the results of research and

new technology to minimizing the safety risks of operations equipment, products and

packages taking into account the associate costs or profit for each safety benefits.

They should ensure each and every one to use in responsible and accountable for

their actions.

Establish mechanisms to communicate effectively with employees consumers and

government on their safety performance.


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Reference:

Salman Shah.

Area sales Manager, Lahore.

Distribution Department.

Green town, J-Block.

Manufacturing Department is in:

Raiwind Road,23 km.

coca cola_final project

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