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Business Plan
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Business plan
On
Course: Introduction to Business (BUS-101)
Semester: Summer, 2010
Prepared for:
ASHA! U BHU"A#
$ecturer
%epartment o& Business Administration
Prepared by:
'd Ansarul Haue 200*-1-10-1+0
'd Asiul Islam 2010-2-10-10+
's Suma Amed 2010-2-10-1.*
'd #aan Al/i 2010-2-10-012
BUSINESS ADMINISTRATION DEPARTMENT
EAST WEST UNIVERSITY
, 'oaali C3A, %aa-1212
Submissio da!e:
04t Au5ust, 2010
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DEDI"ATION6is Business 7lan is dedicated to our 8elo/ed parents,
9o educated me and ena8led us
to reac tis le/el
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A#$o%&ed'eme!s
!irst o& all e ould lie to tan te almi5t 5od tat e are ena8lin5 enou5 todo tis term paper 9e are /er muc tan&ul to our respecti/e course instructor As(raf U B(uya &or 5i/in5 us suc an interestin5 pro;ect and pro/in5 tenecessar su55estion and 5uidelines 6is as pro/ided us te cance o& orin5it real li&e data, ic elped us to acuire clear insi5t a8out te course It asa torou5l en;oa8le e
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E)e#u!i*e SummaryT(e "o#a+"o&a "ompay is te orld>s lar5est 8e/era5e compan, lar5est manu&acturer,
distri8utor and mareter o& non-alcoolic 8e/era5e concentrates and srups in te orld and isone o& te lar5est corporations in te United States 6e compan is 8est non &or its &la5sip product Coca-Cola, in/ented 8 parmacist ?on Stit 7em8erton in 144* 6e Coca-Cola&ormula and 8rand as 8ou5t in 144@ 8 Asa Candler o incorporated 6e Coca-ColaCompan in 14@2 Besides its namesae Coca-Cola 8e/era5e, Coca-Cola currentl o&&ers nearl00 8rands in o/er 200 countries or territories and ser/es 1+ 8illion ser/in5s eac da
6e compan operates a &rancised distri8ution sstem datin5 &rom 144@ ere 6eCoca-Cola Compan onl produces srup concentrate ic is ten sold to /arious 8ottlerstrou5out te orld o old an e
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Tab&e of "o!e!s
"o!e!:
1 Coca Cola International
A Summar
B Eision
2 'ana5ement
'aretin5
A 'aret Analsis
B Competiti/e Analsis
C S9O6 Analsis
% Strate5 7lannin5
7roduct Ser/ices
! 'aret Sales
Operation
A De 7ro&essionals
B Or5aniFational Structure
C Human esource 'ana5ement
% 7roduct Ser/ice %eli/er
Customer Ser/ice Support
! !acilities
+ !inancial %ata
A Compan Statement
B 7ro&it $oss Statement
C Balance Seet
% Brea /e Analsis
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* Conclusion
,- "O"A "O.A INTERNATIONA.
A.SUMMARY:
Coca-Cola nterprises, esta8lised in 1@4*, is a oun5 compan 8 te standards o& teCoca-Cola sstem "et eac o& i ts &rancises as a stron5 eri ta5e in te tradit ions o& Coca-Cola tat is te &oundation &or tis Compan
6e Coca-Cola Compan traces it=s 8e5innin5 to 144*, en an Atlanta parmacist, %r
?on 7em8erton , 8e5an to produce Coca-Cola srup &or sale in &ountain drins Hoe/er te 8ott l in5 8usiness 8e5an in 14@@ en to Cattanoo5a 8usinessmen, Ben;amin !6omas and ?osep B 9iteead , secured te es 8ottlin5oldin5s, to &orm Coca-Cola nterprises Inc 6e Compan o&&ered its stoc to te pu8licon #o/em8er 21, 1@4*, at a split-ad;usted price o& G++0 a sare On an annual 8asis, totalunit case sales ere 440,000 in 1@4*
In %ecem8er 1@@1, a mer5er 8eteen Coca-Cola nterprises and te ?onston Coca-Cola Bottlin5 roup, Inc (?onston) created a lar5er, stron5er Compan, a5ain elpin5accelerate 8ottler consolidation As part o& te mer5er, te senior mana5ement team o& ?onston assumed responsi8ili t &or mana5in5 te Compan, and 8e5an a dramatic,success&ul restructurin5 in 1@@2Unit case sales ad clim8ed to 1 8ill ion, and totalre/enues ere G+ 8illion
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B- T/E VISION STATEMENT O0 "O"A+"O.A "OMPANY
Our /ision statement is to ma
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1- MANA2EMENT:
6e ierarc o& Coca Cola Compan is as &ollos
3- MAR4ETIN2
A-MAR4ET ANA.YSIS :
T/E OVERA.. MAR4ET:Bein5 te 8i55est compan in te so&t drin industr, Coca Cola en;os te lar5est maret sare
6is compan controls a8out +@ o& te orld maret
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"/AN2ES IN T/E 2.OBA. MAR4ET:
6e &olloin5 ta8le can so te orldide operatin5 se5ments
Ui! #ase 'ro%!( No+ao(o&i#
dri$
A&& #ommer#ia&
Be*era'es
10 ear compoundannual 5rot
+-ear compoundannual 5rot
2001 annual 5rot 2002 2002
Compan Industr Compan Industr Compan Industr Compansare
Compansare
Compan per capita
Income
* + + + 14 @ .0
6is sos tat te maret o& te compan is 5eo5rapicall /ast and it is controllin5 it it 5reatsuccess In 2002, te compan 5re teir car8onated so&t-drin 8usiness 8 nearl 2+0 million unit casesand 5enerated record /olumes Because car8onated so&t drins are te lar5est 5rot se5ment itin tenonalcoolic read-to-drin 8e/era5e cate5or measured 8 /olume, tat is te are &ocusin5 moreon tis and te are continuall increasin5 te pace 8ecause te no tat acceleratin5 tis pace iscrucial to teir &uture success 6us te are increasin5 teir maret da 8 da 6e operation incomeearned 8 Coca Cola Compan can 8e illustrated 8 te &olloin5 pie cart
(!i5ure)
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6is strate5 as ored a lot and it as elped tem to 8ecome te 9orld=s leadin5 So&t %rin Compan6e 5lo8al unit sale o& te Coca Cola Compan is increasin5 &rom te last ten ears 6e data o& te5lo8al unit sale o& te Coca Cola Compan can 8e represented 8 &olloin5 cart
(!i5ure)
So tere is positi/e 5rot in te maret o& te Coca Cola Compan 6ere is a orldide
/olume increase 8 it stron5 international 5rot o& + 6is is onl due to te inno/ati/emaretin5 pro5rammers, ic as deepened te relationsip o& te customers and Coca Cola 6e&inancial ealt and success o& teir 8ottlin5 partners is a critical component o& 6e Coca-ColaCompan>s a8ilit to 8uild and deli/er leadin5 8rands
In 2002, te compan ad ored it teir 8ottlers to turn 5ood intentions into realit 8impro/in5 te sstem economics 6e results in 2002 re&lect tis steadil impro/in5 and mutuallconstructi/e relationsip 8eteen te Compan and teir 8ottlin5 partners 6e main reason 8eind tis
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relationsip is to continue realiFin5 sared opportunities &or 5rot, it closer coordination o& operations includin5 customer relationsips, lo5istics and production
MAR4ET S/ARE BY AREA:
Coca Cola is te orld-renoned so&t drin and te compan is currentl operatin5 trou5 outte orld 6e orld ide total is a8out 1.4 8illion
6e operation re/ie accordin5 to te se5ments is as &ollos
Opera!io Re*ie%
(2002 orldide unit case /olume 8 operatin5 se5ment)
#O6H A'ICA $A6I#
A'ICA
UO7
'I%%$ AS6
ASIA A!ICA
0 2+ 22 1. *
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Countr Unit case 5rot #on-alcoolic
%rins
All commercia
Be/era5es
10 ear compound annual5rot
+-ear compound annual5rot
2002 annual 5rot 2002 2002
Compan Industr Compan Industr Compan Industr Compansare
Compansare
Comc
In
Nor!(
Ameri#a
4 5 3 3 2 2 22 15
Ui!ed S!a!es 4 5 3 3 2 2 23 16
.a!i Ameri#a 6 7 6 6 3 4 24 15
Ar'e!ia 7 4 6 2 7 2 20 10
Bra5i& 5 5 3 6 3 5 23 13
"(i&e 9 6 5 3 (2) 3 56 23
Me)i#o 7 10 8 9 2 5 22 18
Europe
6 Midd&e Eas!
6 3 5 3 2 4 12 6
Eurasia 17 8 6 5 (14) 1 14 5
0ra#e 8 3 9 3 7 3 9 5
2ermay 1 2 (1) 1 (6) 1 14 7
2rea! Bri!ai 8 2 11 2 8 3 17 6
I!a&y 1 3 4 3 2 2 9 6
Midd&e Eas! 12 12 7 5 4 8 8 3
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Spai 6 4 8 5 4 4 17 12
Asia 7 6 6 7 10 7 14 5
Afri#a 7 6 8 3 10 6 34 11
(6a8le)
In Asian population, ic is te satis&ied customer o& Coca Cola, is appro
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MAR4ET SE2MENTS:
'aret se5ments are 8asicall tose people o tae tis drin dail and tose areas ere tedemands is i5er ten te oter areas 6ere are so man people o tae tis drin dail and tose people o tae eel and tose o tae less o&ten are alas tere as ell So, teir 8asic se5mentsare tose people o tae tis drin re5ularl
TAR2ET MAR4ET 6 "USTOMER:
Coe=s commercials 8asicall 8ased on oun5 5enerations, so, te oun5 5eneration is te tar5etmaret o& Coe 8ecause te ant to represent Coe it te out and ener5 8ut te also considera8out te old people te tae ten as a co-tar5et maret
a) Customer Caracteristics:
!irst o& all te ma;orit don=t care tat at te are 5oin5 to a/e In oter ords, te
don=t care 8e&ore drinin5 tat eter it is K7epsiL or KcoeL 6e don=t actuall di&&erentiate 8eteen tese to 8rands in order to teir tastes
8) Customer #eeds:
Consumers 8asicall drin at te 5et
6e 8elie/e on “WHAT COULD THEY SOLD”
Consumer=s a/aila8ilit in 8rands is 8asicall ors lie
7us a/aila8ilit
7ull consumer=s demand
c) Customer Buin5 %ecision:
'a;orit o& te customer 8us at=s price is lo I& Coca-Cola increase teir price e/en010 cents ten teir sales ill decrease Customer must 5o &or anoter 8rand lie 7epsi or else
!or tis reason Coca-Cola a/e pro/ided teir coolers and &reeFers in te maret 6e a/ema
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B-"OMPETITIVE ANA.YSIS
" OMPETITORS
Coe=s ma;or competitor is K77SIL and tere is no esitation to sa tis 8ecause e/er onenos tat and all te oter cold drins and ater, co&&ee, tea is te competitors
MA7OR "OMPETITORS
Consumers &irstl decide tat te are 5oin5 to a/e a so&t drin 6en te compete 8randsit eac oter $ie te compete Coe it 7epsi and Sprite it .up and team So te ma;or
competitor o& Coe is 7epsi
9en te moti/ate to an oter 8rand or on Coe it=s in instinct 8asicall tat 8ased onmessa5es deri/e certain &eelin5s
But Coca Cola tins in a di&&erent a, te 8elie/e tat C Cola, ne comin5 Be/era5es,and all ;uices, e/en te tae ater and tea as teir competitors
MA7OR "OMPETITOR
PEPSI INTERNATIONA.
/ISTORY
7epsiCo is a orld leader in con/enient &oods and 8e/era5es, it re/enues o& a8out G2. 8illionand o/er 1,000 emploees 6e compan consists o& te snac 8usinesses o& !rito-$a #ort Americaand !rito-$a InternationalJ te 8e/era5e 8usinesses o& 7epsi-Cola #ort America, atorade36ropicana #ort America and 7epsiCo Be/era5es InternationalJ and Muaer !oods #ort America, manu&acturer
and mareter o& read-to-eat cereals and oter &ood products 7epsiCo 8rands are a/aila8le in nearl 200countries and territories
'an o& 7epsiCo>s 8rand names are o/er 100-ears-old, 8ut te corporation is relati/el oun57epsiCo as &ounded in 1@*+ trou5 te mer5er o& 7epsi-Cola and !rito-$a 6ropicana asacuired in 1@@4 and 7epsiCo mer5ed it 6e Muaer Oats Compan, includin5 atorade, in2001ould entertain te listener it te latest musical selections rendered 8 /iolin or piano or 8ot 6e ne name, K7epsi ColaL, is deri/ed &rom te to o& te principle in5redients, 7epsin
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and Dola #uts It as &irst used on te Au5ust 24 At tat time, Braam=s ad/ertisin5 praises isdrin as K
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SWOT Aa&ysis:
STREN2T/
WOR.DS .EADIN2 BRAND
Coca-Cola as stron5 8rand reco5nition across te 5lo8e 6e compan as a leadin5 8rand/alue and a stron5 8rand port&olio Business-9ee and Inter8red, a 8randin5 consultanc,reco5niFe Coca-Cola as one o& te leadin5 8rands in teir top 100 5lo8al 8rands ranin5 in200*6e Business 9ee-Inter8red /alued Coca-Cola at G*.,000 million in 200* Coca-Colarans ell aead o& its close competitor 7epsi ic as a ranin5 o& 22 a/in5 a 8rand /alue o& G12,*@0 million !urtermoreJ Coca-Cola ons a lar5e port&olio o& product 8rands 6e companons &our o& te top &i/e so&t drin 8rands in te orld: Coca-Cola, %iet Coe, Sprite and !antaStron5 8rands allo te compan to introduce 8rand e
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DE".INE IN "AS/ 0ROM OPERATIN2 A"TIVITIES
6e compan=s cas &lo &rom operatin5 acti/ities declined durin5 &iscal 200* Cas&los &rom operatin5 acti/ities decreased . in 200* compared to 200+ #et cas pro/ided 8operatin5 acti/ities reaced G+,@+. million in 200*, &rom G*,2 million in 200+ Coca-Cola=scas &los &rom operatin5 acti/ities in 200* also decreased compared it 200+ as a result o& acontri8ution o& appro
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STRATE2I" P.ANNIN2
In te ear 2002, te compan ad a 5reat success, as te strate5 ored ic resulted in main5 CocaCola Compan te orld=s leadin5 compan In 2001, compan accomplised te crust o& its strate5 as
• 9orldide /olume increased 8 percent it stron5 international 5rot o& + percent and clear
si5ns tat our #ort American 8usiness is 5roin5 solidl and predicta8le
• arnin5s per sare 5re 8 42 percent, as e deli/ered on our commitment to create /olume
5rot ile a55ressi/el
• eturn on common euit 5re &rom 2 percent in 2000 to 4 percent tis ear .
• eturn on capital increased &rom 1* percent in 2000 to 2. percent in 2001
• 6e compan as 5enerated &ree cas &lo o& G1 8illion, up &rom G24 8illion in 2000, a clear
indication o& its underlin5 &inancial stren5t
6e strate5 &or te &uture o& te compan is /er strai5t&orard 6e mar$e!i' s!ra!e'y for !(e year1991 is as &ollos,
• Accelerate car8onated so&t-drin 5rot, led 8 Coca-Cola
• Selecti/el 8roaden te &amil o& 8e/era5e 8rands to dri/e pro&ita8le 5rot
• ro sstem pro&ita8ilit and capa8ilit to5eter it our 8ottlin5 partners
• Ser/e customers it creati/it and consistenc to 5enerate 5rot across all cannels
• %irect in/estments to i5est potential areas across marets
• %ri/e e&&icienc and cost-e&&ecti/eness e/erere
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"-PRODU"TS:
6ere are di&&erent 8rands o& te Coca Cola Compan, ic are currentl in use trou5 out teorld 6is compan not onl deals in te car8onated drins 8ut also oter drins 9ile launcin5 its product, te maretin5 team considers te culture o& te countr
MA7OR BRANDS O0 "O"A "O.A
•Coe
• Sprite
• !anta
• %iet coe
• Coe classic
MAR4ET POSITIONIN2
PRODU"T RAN2E
6e total ran5e o& Coca Cola Compan in 9orldincludes:
• Coe
• Sprite
• !anta
• %iet Coe
And compan o&&ers teir products in di&&erent 8ottle siFes tese include:
• SSB (standers siFe returna8le 8ottle)
• $B (litter returna8le 8ottle)
• #B (no return 8ottle or disposa8le 8ottle)
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• 76 1+ (1+ litter plastic 8ottle)
• 76 20 (20 litter plastic 8ottle)
• CA# (tin pac 0 ml)
PA"4IN2
Coca cola products are a/aila8le in di&&erent pacin5
• 2 re5ular 8ottle sell
• * 8ottle pac &or 1+ pets
• 12 8ottles in a pac &or disposa8le 8ottle
• 2 cans in one pac
E;PE"TATIONS 0OR T/E "OMIN2 YEAR
/er tin5 starts &rom te attitude o& consumer=s 8ea/ior And te 8asic e to attractte consumers is to tro te Kmone aaL
And positi/e &eelin5 &ellin5 it te 8rand, ic te used to a/e Coe ants to
ad/ertise teir products ea/il in te comin5 ear And it ill tae te 10 o& teir pro&its Anden e tae it as a 5lo8al le/el it is G I 8illion
Comin5 ear is te callen5in5 ear &or te industr o& Coe 6e a/e to tae lots o& decisions tat o to increase te production and ere te a/e to spend mone
!or 5ainin5 success in comin5 ear te a/e to a/e some important tin5s lie:
1 $oal consumers are important &or compan=s success
2 9orers sould 8e te 8rand centric not te promotion centric
6e sould no o muc to &or te 8rand acti/ities
6e sould also no tat o muc to do it te promotion acti/ities &or 8randP
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D- MAR4ETIN2 6 SA.ES
MAR4ETIN2 STRATE2Y
Our local maretin5 strate5 ena8les Coe to listen to all te /oices around te orldasin5 &or 8e/era5es tat span te entire spectrum o& tastes and occasions 9at people ant in a 8e/era5e is a re&lection o& o te are, ere te li/e, o te or and pla, and o terela< and recar5e 9eter ou>re a student in te United States en;oin5 a re&resin5 Coca-
Cola, a oman in Ital tain5 a tea 8rea, a cild in 7eru asin5 &or a ;uice drin, or a couple inDorea 8uin5 8ottled ater a&ter a run to5eter, e>re tere &or ou 9e are determined not onlto mae 5reat drins, 8ut also to contri8ute to communities around te orld trou5 our commitments to education, ealt, ellness, and di/ersit Coe stri/es to 8e a 5ood nei58or,consistentl sapin5 our 8usiness decisions to impro/e te ualit o& li&e in te communities inic e do 8usiness It>s a special tin5 to a/e 8illions o& &riends around te orld, and ene/er &or5et it
SA.ES PROMOTION A"TIVITIES
"O"A+"O.A "RI"4ET
Cricet te most sou5t a&terJ atced plaed 5ame in 9orldte 5ame o& cricet as 8eenoned 8 /arious 8rands in te industr &or te promotion o& teir products o/er a period o& time It asran5ed &rom to8acco to lu8ricants to communication companies to 8ans to airlines latel to te 8e/era5e industr 6e competition as 8ecome tou5er tou5er as te time as pro5ressed
Coca-Cola si5ned a sponsorsip a5reement it ei5t o& 7aistan=s #ational cricet plaersCoca-Cola realiFin5 te &act tat cricet is a /er stron5 element 8 ic it can reac it consumers masses in/ested in te opportunit and launced a massi/e campai5n on mass media soin5 all tesecricet stars endorsin5 complimentin5 Coca-Cola 8rand 6e Coca-Cola Compan de/eloped tree 6Ecommercials &our testimonial ads it te plaer ran tem on te national net or durin5 /ariouscricet matces 6ese 8old steps taen 8 te Coca-Cola maretin5 unit acclaimed tem manacnoled5ements across te 8oard 6is campai5n elped Coca-Cola to esta8lis its association it te5ame te plaer
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"O"A+"O.A "ON"ERTS
6e 6EC campai5n &ocused on te ectic li&estle o& a pop star o &ound respite relie& trou5 Coca-Cola in sort moments tat e ad to imsel& durin5 a concert Coca-Cola=s 8rand positionin5 o& pro/idin5 deep don re&resment &or te 8od, soul mind ere captured accuratel inte 6EC depicted aptl o te drin completes te moment &or Aurar
"O"A+"O.A 2O+RED
Muencin5 te tirst o& motorist, pedestrians passer8=s durin5 ottest summer season, Coca-Cola=s KO-%L teams ent out into te cities main uadrants to Kser/e re&resL on te spot itice-cold Coca-Colas at discounted prices 8aced 8 a ea/ !' announcement campai5n te KO-%Lstall, ser/ed ell to promote te Coca-Cola industr
"O"A+"O.A S/OPPIN2 0ESTIVA.
Coca-Cola osted K6e Coca-Cola Soppin5 !esti/alL $aore=s &irst soppin5 &esti/al, aresoundin5 success it temptin5 discounts, li/e music, 5reat priFes &ire ors $i8ert maretin5ul8er5 as a i/e o& acti/it durin5 te eelon5 soppin5 e
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6e promotion sa a/id consumer collectin5 Coca-Cola Cron caps= spared a een response &romte pu8lic , renderin5 an outstandin5 testimonial campai5n in te second pase, i5li5tin5 te innerso/er elmed in te ma5ical deli5t o& teir &a/orite 8e/era5e Coca-Cola
"O"A+"O.A 6 NO4IA
In Au5ust 2001, te ne under-te-cron promotion KNi$&a 4iyaRL(9at a/e u on) aslaunced in colla8oration it Cimera #oia6e promotion 5a/e consumer a cance to in tousand=so& Coca-Cola 8randed #oia 10 cellular pones on e/er purcase o& .+0ml B 8ottle o& Coca-Cola ,Sprite, !anta6e oter i5li5t o& promotion as te ="au'(! Red /aded> campai5nBranded Coca-Cola it cau5t red anded= team in tem ent to $aore Daraci &or tree das, ittar5et tat anone 8ein5 cau5t drinin5 Coca-Cola ill 8e aarded a noia 10 mo8ile pone i& someone is cau5t talin5 on a noia mo8ile ill in &ree suppl o& Coca-Cola Cau5t red anded 8ecome a u5e success amon5 te masses as it as one to one interaction 8eteen te Coca-Cola 8rand te consumers 6is acti/it elped 8illed con&idence and 8rand loalt amon5 core consumers
"O"A "O.A TV MA
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ADVERTISEMENT
Coca cola compan use di&&erent mediums
• 7rint media
• 7os material
•
6/ commercial
• Bill8oards and oldin5s
PRINT MEDIA
6e o&ten use print media &or ad/ertisement 6e a/e a separate department &or printmedia
POS MATERIA.
7os material mean point o& sale material tis includes: posters and sticers displa in testores and in di&&erent areas
TV "OMMER"IA.S
As e/er8od no tat 6E is a most common entertainin5 medium so 6E commercialsis one o& te most attracti/e a o& doin5 ad/ertisement So Coca Cola Compan does re5ular 6E commercials on di&&erent cannels
BI..BOARDS AND /O.DIN2S
Coca cola is /er muc conscious a8out teir 8ill8oards and oldin5s 6e a/e so
man sites in di&&erent locations &or teir 8ill8oards
DISTRIBUTION "/ANNE.S
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Coca Cola Compan maes to tpes o& sellin5
• %irect sellin5
• Indirect sellin5
DIRE"T SE..IN2
In direct sellin5 te suppl teir products in sops 8 usin5 teir on transports 6ea/e almost +0 /eicles to suppl teir 8ottles In tis tpe o& sellin5 compan a/e more pro&itmar5in
INDIRE"T SE..IN2
6e a/e teir ole sellers and a5encies to co/er all area Because it is /er di&&icult&or tem to co/er all area o& 9orld8 teir on so te a/e so man ole sellers and a5enciesto assure teir customers &or a/aila8ilit o& coca cola products
PROMOTION STRATE2IES
2ETTIN2 S/E.VES
6e 5ets or purcase sel/es in 8i5 departmental stores and displa teir products in tatsel/es in tat stle ic so teir product more clear and more attracti/e &or te consumers
EYE "AT"/IN2 POSITION
Salesman o& te coca cola compan positions teir &reeFers and teir products in ee-catcin5 positions #ormall te eep teir &reeFers near te entrance o& te stores
SA.E PROMOTION
Compan also do sponsorsips it di&&erent colle5e and scool=s ca&es and sponsorsteir sports e/ents and oter e
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#e/ille Isdell, Cairman and Cie&
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place to sare our talent it te orld
"- /UMAN RESOUR"ES:
6e e to our success is our people It=s 8een te same stor &rom da oneAt 6e Coca-Cola Compan, e understand te importance o& Human esources,ic is e a/e one o& te most ro8ust departments ou=ll &ind ;ust a8outanere Opportunities include eneralist, Sta&&in5, 6rainin5, Compensation andBene&its, Or5aniFational %e/elopment, mploee elations and Compliance andOccupational Healt I& ou can eep our people out in &ront, e can o&&er ou a
career it endless potential
D. PRODU"TS 6 DE.IVERY SERVI"E:
0A"I.ITATIN2 T/E PRODU"T BY IN0RASTRU"TURE:
!or pro/idin5 teir product in 5ood manner compan as pro/ided in&rastructure tese
includes:
• EiFi cooler
• !reeFers
• %ispla racs
• !ree empt 8ottles and sells &or 8ottles
IN0ORMATION TE"/NO.O2Y It=s eepin5 6e Coca-Cola Compan a &e steps
8eond te cuttin5-ed5e
As one o& te 8est non 8rands on te planet, e no te importance o& tecnolo56at=s e=re alas tinin5 a8out at=s no and at=s ne
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opportunit
INNOVATION It=s a8out te ne
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TE"/NI"A. 0UN"TION It=s main5 te 8est e/en 8etter
?ust 8ecause ou=re te /er 8est, ou can=t simpl stand still At 6e Coca-Cola Compan,e continuousl stri/e &or 8etter as to create our products Ho can e impro/e ourmanu&acturin5, ra materials, paca5in5 and moreR It=s up to ou Are ou up to te callen5eR
9e a/e opportunities a/aila8le in n5ineerin5 and Mualit Assurance Brin5 us our ideas andatc o &ar te can tae ou
E-"us!omer ser*i#e :
6e second e element o& our 8usiness imperati/es is to de/elop eac o& our marets 8 pro/idin5 superior customer ser/ice and ualit products
In Coca-Cola Hellenic e or ard to adapt our 8usiness to te can5in5 needs o& our
customers 9e initiate a num8er o& customer-speci&ic pro5rammed 6is aims to &acilitate across-&unctional approac to plannin5 &or te purpose o& 8etter ali5nin5 our or5aniFation it tea our customers do 8usiness
6e 5oal o& tis approac is to create /alue &or our customers Impro/ed preparation o& ;oint annual plans encompassin5 promotional plannin5 and re/enue 5rot initiati/es, in/entormana5ement and customer-speci&ic cooler placement strate5ies, are e
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9e suppl an e
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Bottle and cans 87% 87%
!ountain 13% 13%
mploees 72,000 67,000
Eeicles 54,000 52,000
Cold drin euipment=s 2.4 million 2.3 million
!acilities
7roduction onl 25 25
%istri8ution 385 361
Com8ination 53 50
6otal 463 436
7ercent o& #ort America population co/era5e 80% 72%
#um8er o& States o& Operation 46 46
Bottle and can eui/alent case paca5e distri8ution
Cans 44% 45%
#on-re&illa8le 8ottles 52% 51%
e&illa8le 8ottles 4% 4%
Capital structure
#et de8t to total capital ratio 63% 59%
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BI6%A interest co/era5e 3 3
9ei5ted a/era5e cost o& de8t 6.3% 6.8%
De Statistics
Constant territor 8ottle and can /olume 5rot 3% ½%
Bottle and can net re/enues per case can5e Flat 2%
Bottle and can cost o& sales per psical case can5e 1 ½%
eported BI6%A (in 8illions) $1.95 $2.39
eported BI6%A can5e (18)% 9%
Capital e
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PRO0IT 6 .OSS STATEMENT:
6is compan is &inanciall /er stron5 It is due to te stron5 &inances, te compan is stillsur/i/in5 te ups and don o& te 8usiness orld 6e &inancial report o& Coca Cola Compan o& te ear 2001 and 2000 alon5 it te percenta5e can5e is as &ollos
(6a8le)
Year Eded De#ember 3,C
I mi&&ios e)#ep! per s(are da!aC ra!ios ad 'ro%!( ra!es
1991 199, Per#e!a'e
#(a'e
#et operatin5 re/enues 20,092 19,889 1%
Operatin5 income 5,352 3,691 45%
#et income 3,969 2,177 82%
#et income per sare (basic) 1.601 0.882 82%
#et income per sare (dilutd ) 1.601 0.882 82%
#et cas pro/ided 8 operatin5 acti/ities 4,110 3,585 15%
Business rein/estment (963) (779) 24%
%i/idends paid (1,791) (1,685) 6%
Sare repurcase acti/it (277) (133) 108%
!ree cas &lo 3,147 2,806 12%
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eturn on capital 26.6% 16.2% -
eturn on common euit 38.5% 23.1% -
Unit case sales (in 8illions)
International operations 12.5 11.9 5%
#ort America operations 5.3 5.2 2%
9orldide 17.8 17.1 4%
2002 8asic and diluted net income per sare includes a non-cas 5ain o& G02 per sare a&ter ta
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6ese car5es are partiall o&&set 8 a 5ain o& G0+ per sare a&ter income ta
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7repaid e
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TOTA. "URRENT .IABI.ITIES 1,1*@
.ON2+TERM DEBT +,01.
OT/ER .IABI.ITIES 2,@
DE0ERRED IN"OME TA;ES 4*+
T/E "O"A+"O.A "OMPANY S/AREOWNERSH EFUITY
Common stoc, G02+ par /alueJ AutoriFed +,*00 sares 440
Capital surplus 4,021
ein/ested earnin5s 4,@11
Accumulated oter compreensi/e income (loss) (2,4@)
6reasur stoc, at cost (2,20.)
EFUITY ATTRIBUTAB.E TO S/AREOWNERS O0 T/E "O"A+"O.A
"OMPANY 20,.12
EFUITY ATTRIBUTAB.E TO NON"ONTRO..IN2 INTERESTS @*
TOTA. EFUITY 21,104
TOTA. .IABI.ITIES AND EFUITY G ,10
No!e:
6e &inancial in&ormation included in tis section sould 8e read in con;unction it 'ana5ement>s %iscussion
and Analsis o& !inancial Condition and esults o& Operations and #otes to Consolidated !inancial Statements
contained in our Compan>s 200@ Muarterl eport on !orm 10-M and 2004 Annual eport on !orm 10-D
BREA4EVEN ANA.YSIS AT "O"A+"O.A "OMPANY
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I- T/E OR2ANI
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2 e/enue 5ained trou5 te partnersip: stimated G4 million in sales o&memora8ilia and more sales o& Coca-Cola 8randed products in $atin America areac promotional mont is estimated to 5ain G million
Earia8le cost o& te partnersip: Incremental costs &or te &olloin5:
(a) customer appearance
(8) Auto5rap si5nin5
(c) 7rinted and media promotions (ie) G+,000 per our o& an o& teseacti/ities
(d) 7roduction cost o& te memora8ilia related to 'emo tat are sold
(e) 7roduction cost o& te additional sales or Coca-Cola 8randed products
resulted 8 te partnersip it memo
!i salaries and a5es itin te 8ottlin5 di/ision in te Coca-Cola compan>s premises(estimated annual cost, G10 million)
2 6e cost o& direct materials in main5 8ottles suc as 5lasses,ater, cemicals, etc ( estimated annual cost, G* million)
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Irrele/ant acti/ities and teircosts 1 Corporate main o&&ice li5tin5 and oter minor utilities
(estimated annual cost, G120 tousand)
2 Salar o& te ;anitors o cleans te main o&&ice 8uildin5(estimated annual cost, G*0 tousand)
6e a8o/e matri< indicates te ind o& costs tat Coca-Cola a/e 6e rele/ant costs,tese ill 8e te direct 8ases o& decisions te Compan ma mae and tese costs ill 8e tedeterminin5 &actor i& te or5aniFation ould 5o on it te plan to outsource or maintain itscurrent acti/it o& a/in5 te 8ottlin5 department in-ouse
On te oter and, te irrele/ant costs are te ones tat are committed 8 te entireor5aniFation 8ut tese costs are not in an a directl related to te issue at and: te plan to
outsource te 8ottlin5 plants Hoe/er, in some cases, tese irrele/ant costs mi5t 8e allocatedin some a or anoter in oter earnin5 departments Irrele/ant costs are not used in te cost-/olume-pro&it analsis or 8rea-e/en analsis and e/entuall, not used in decision main5 as tename su55ests, it is Kirrele/antL
IV- A..O"ATION O0 INDIRE"T "OSTS
S!AS 1+1 is adopted 8 te Coca-Cola compan in treatin5 te costs to 8e allocated Itsidle capacit, &rei5t and andlin5 costs to5eter it oter alloca8le costs suc as spoila5e andloss &rom asta5e in production3ra materials are deducted as period costs, ic means, teare e
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as ell Sa, te &inance and maretin5 departments are onl supportin5 te production department It iste production tat KcreatesL mone &or te or5aniFation But as mentioned, itout te elp o& &inance to properl mana5e te assets and itout te maretin5 department main5 te products interestin5 andsala8le, te production department cannot do antin5 to earn tat mone 6us, it ma as ell 8e &air toallocate te costs incurred 8 tese support departments to te main department In tis case, allocatin5te cost o& non-re/enue 5eneratin5 &inance and maretin5 to te production department tat mainl
5enerates te sales is /ieed as a &air polic Hoe/er man propose te acti/it-8ased costin5 to 8emore e&&ecti/e 8ecause e/er department as a cost dri/er tat can 8e considered a &airer /aluation o& cost&or a certain cost center
V+ T(e Use of AB"+ !(e A#!i*i!y Based "os!i'
As mentioned, proponents o& ABC ar5ue tat tis costin5 sstem is more use&ul As &or Coca-Cola
compan, man, i& not all o& its acti/ities as cost dri/ers i& te need to a/e a cost
6alin5 8ac a8out te real situation presented in te &irt part (I), te Or5aniFation partnerin5 it'emo as man costs and cost dri/ers 6ese are te to 5ood e
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"ON".USION:
Coca-Cola no dou8t come te eart 8eat o& 7aistanis Coca-Cola is one o& te leaders insponsorin5 te most important, trillin5 e/ents 5 Cricet matces concerts and man oter socialoccasions /ent at te present te are or5aniFin5 a *asant &esti/al &or ic te 8usil or5aniFin5stu&& -
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