Recommendation of Coca Cola based on performing various valuation models

Recommendation of Coca Cola based on perform various valuation modellingsThe recommendation of Coca-Cola cordial club is based on acting various valuation models, which imply HR practices, economic profit analysis, relative valuation and a fundamental price to earnings valuation model that revea guide the Coca-Cola ships beau monde to be overvalued. Even though they find the stock to be overvalued and they feel that KO has s of every timeal(prenominal) promising out watchs as well as possible challenges in the near future and they want to recommend it as a h h atomic number 53st-to-goodness ins afternoon tead of a sell.The Coca-Cola party is the 1 gild within the non-alcoholic bev sequenceges industry. They fox a 20- year standing of being the loss leader and investors know that the Coca-Cola association has an extraordinary reputation for maximizing shargonholder value.Opportunities that come by means of for the corporation in the future is expanding market sh ato mic number 18 in the non-carbonated beverages segment, a restructuring of their agate line model, and better consistency of earnings results.A challenge that the Coca-Cola fellowship is facing is the struggle with their orbicular competitors in the detail that their HR practices atomic number 18 greater and less than shock. If coke wants to more reputation in the knowledge domain they must produce more incentives for employees from which they more done cut back gravely and produce good quality. Their stark naked management team require to manoeuvre on implementing cohesive goals between the 2 to r severally the Coca-Cola participations long-term performance potential.TABLE OF CONTENTS1INTRODUCTIONMission and vision5History74Brands/product line145Total quality management166 purlieu of coca plant grass167Health and Nutrition188 wariness of coca pot in Gujranwala199Departmentalization2710 human alternative counseling2911 mull over analysis and innovations3012 P lanning and forecast3013 Recruitment and selection3114 Training wreak3215 Performance and appraisal3316 Compensation and gets3417 Employees relationship3518 Safety policy3619 Recommendation and Suggestion37INTRODUCTIONFounded in 1886, the coca-cola guild is the worlds leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. The comp eithers corporeal headquarters argon in Atlanta, with local operations in over 200 countries some the world.Although Coca-Cola was for the foremost cartridge holder manufactured in the United States, it quickly became popular wherever it went. Our first internationalist bottling plants opened in 1906 in Canada, Cuba and Panama, soon followed by numerous more. Today, we produce more than 300 brands. More than 70 percent of our income comes from extraneous the U.S., but the real reason we atomic number 18 a truly global company is that our products meet the varied taste preferences of consumers either where.MISSION STATEMENTTo gain ground and refresh e trulyone it touches and to create values for our sh ar owner on a long term basis by constructing a communication channel that enhances the coco-cola company trade marksAccording to Gujranwala plant To get hold of a strong, dominant profitable phone line in Pakistan.VISION both of us in the Coca-Cola family wake up each morning knowing that e precise individual one of the worlds 5.6 billion mass will get thirsty that day and that we atomic number 18 the ones with the best opportunity to refresh them.Our task is unbiased make Coca-Cola and our former(a) products available, affordable, and acceptable to them, quenching their thirst and providing them a staring(a) moment of relaxation. If we do this if we make it impossible for these 5.6 billion peopleto efflux Coca-Cola then we assure our future success for umpteen years to come. Doing anything else is non an option.According to Gujranwala Plant To create value for our sh atomic number 18 holdersWe are move to Building preference market leadership for our brandsAchieve quality purity and serve our customers withquality products.Maximizing profitsDeveloping large number optimal utilization of assetsShared Values WE VALUE RESPECT OUR PEOPLEWE overtake OPENLYWE HAVE INTEGRITYWE ARE COMMITTED TO WINNINGBeliefs thither is much in our world to celebrate, refresh, strengthen and hold dear. The Coca-Cola Company is a spirited net operate on of people, in nearly 200 countries, putting citizenship into action. Through our actions as local citizens, we hand every day to refresh the marketplace, enrich the operationplace, protect the environment and strengthen our communities.We are a local employer, with indebtedness to enable our people to tap into their full potential treat at their progressive best and representing the diversity of the world we serve.We are an investor in local economies and a driver of marketplace initiation, with a res ponsibility to act as a good steward of our naturalenvironment.Alocalcitizen,understandingourresponsibility to contribute to an improvedquality of sprightliness in ourcommunitiesBRANDS / PRODUCT statementIn 2002, Coca-Cola added pop to a category that many seed had lost its froth in North the States. In May, after just six months in partment, vanilla extract vitamin C became the first extension of the Coca- Cola brand since 1985 and right away generated profitable deal. Vanilla Coke helped boost gross barters of Coca-Cola branded beverages spell inviting young consumers to rediscover the cola category through a whole original flavor experience. In product formulation, the Vanilla Coke team struck a balance that lets the taste of Coca-Cola come through-intriguingly new, yet undeniably Coca-Cola. Already one of our top 10 brands in the United States, Vanilla Coke is performing well in its initial international markets-including Australia and new-sprung(prenominal) Zealand , with more countries planning launches for 2003. In response to consumer demand, diet Vanilla Coke was introduced to the U.S. marketplace in October, just three-and-a-half months after it was distributen the green light. In 2002, we alike celebrated the 20th anniversary of diet Coke and the intricacy of diet Coke with lemon, which made strong debuts in several international markets after its U.S. launch in 2001.In March 1923, Coca-Cola was sold in a 6-bottle carton for thefirsttimeinNewOrleans,Louisiana. Today, products of The Coca-Cola Company are consumed at the rate of more than one billion drinks per day. major Brands There are 323 brands of coca-cola. Out of which there are 7 brandsof coke in Pakistan.Two brands Lemon and Strawberry are recently introducedproducts of Coca-cola in Pakistan.TOTAL QUALITY anxiety (TQM)Passion for Quality Our reputation is built on authority. Through good citizenship we willnurture our relationships and keep on to build that trust. That is theessence of our promise The Coca-Cola Company exists to benefitand refresh everyone it touches.Wherever Coca-Cola does business, we strive to be trusted partners and good citizens. We are committed to managing our business near the world with a consistent set of values that represent the highest standards of uprightness and excellence. We share these values with our bottlers, making our system stronger.These core values are essential to our long-term business success and will be reflected in all of our relationships and actions in the marketplace, the workplace, the environment and the community.Marketplace We will adhere to the highest ethical standards, knowing that the quality of our products, the integrity of our brands and the dedication of our people build trust and strengthen relationships. We will serve the people who enjoy our brands through innovation, vivid customer service, and respect for the unique customs and cultures in the communities where we do business. o euvre We will treat each other with dignity, fairness and respect. We will protect an inclusive environment that encourages all employees to bring forth and perform to their fullest potential, consistent with a perpetration to human rights in our workplace. The Coca-Cola workplace will be a place where everyones ideas and contributions are valued, and where responsibility and accountability are encouraged and rewarded.Environment We will conduct our business in ways that protect and retain the environment. We will integrate principles of environmental stewardship and sustainable development into our business decisions and processes. alliance We will contribute our time, expertise and resources to help develop sustainable communities in partnership with local leaders. We will seek to improve the quality of life through locally relevant initiatives wherever we do business.Responsible corporate citizenship is at the heart of The Coca-Cola Promise. We believe that what is best for o ur employees, for the community and for the environment is also best for our businessENVIRONMENT OF COCA-COLAIn the first decade of the new century, we face the challenge of a new environment, which is driven by a fundamental shift in international economic dynamics, the maturation set of technology and the fact that people increasingly expect more of man-sized corporations. That challenge demands innovation. magic spell we will always be disciplined by our purpose and our ideals, we must intensify our focus on innovation and create new ways to deliver the promise of Coca-Cola. In fact, in an era that is increasingly international and interconnected, we must pioneer a movement from a homogenous global near to a highly tailored approach reflecting the unique character of our markets.This new approach will require1) creation innovative in our marketing, our brands and our consumerrelationships2) Collaborating more productively with our business partners3) Changing some of the st ructures of our try4) Increasing our commitment to community and the environmentThus, we will perk up our enterprise and bring to full life the unique spirit of Coca-Cola and our people. much(prenominal) real renaissance of the Coca-Cola spirit will enable us to touch our purpose of delivering refreshment and benefit to everyone touched by our business.The Coca-Cola Company and our bottlers get been at the forefront in helping solve environmental, litter and square(p) waste issues for more than 20 years. We realize that we touch the lives of billions of people or so the world and that our responsibility to them holds conducting our business in ways that help keep back the environment. Soft-drink packaging is the more or less recycled consumer package in the United States. Our system supports slews of litter prevention organizations, including the Center for Marine Conservation and Keep America Beautiful. The Coca-Cola Company is a founding member of Keep America Beautiful .Whats more, weve been cycle at our headquarters for years, to the tune of thousands of pounds of waste annually. Weve donated more than $100,000 in government issue from these recycling efforts to charities.Shaping new Products experiences with packaging and technology As we created new products and fresh brand experiences in 2002, one fact became increasingly pass on to us Consumers are eager to see The Coca-Cola Company bring upthrow to the marketplace. One simple innovation last year-the electric refrigerator Pack -has changed the dimensions of 12-pack sales for us and for our bottling partners. This sleek, refrigerator-friendly pack is increasing consumer awareness and preference, accelerating consumption and case volume in markets where it has been introduced. From our packaging suppliers who assisted us and our bottlers in developing the Fridge Pack, to the retailers whose shelves were reconfigured to accept the new design, partnership made this innovation possible- and profitable. The future of our business in North America also evolved in 2002 with the continuing rollout of iFountain, the most advanced soft-drink dispensing system in the industry. iFountain gives our customers a technologically advanced beginning system that enhances available brand options, improves operating efficiency and automatically calibrates each drink served to assure consumers of a quality drink every timeHR coca colaHEALTH AND NUTRITIONGIFT air naturalize18Today, people are more concerned than ever about(predicate) health and nutrition. They understand the importance of good nutrition and strait-laced hydration and they also know that delicious foods and beverages are an enjoyable part of life. People relieve oneself trusted and enjoyed soft drinks for more than 115 years, and they can continue to be confident about their favorite beverages.In this section, we answer many of the questions you may return about our family of beverages., We also take a look at h ow The Coca-Cola Company promotes a strong active lifestyle through programs almost the world that promote fun and physical activity.There is out evolution confusion about what constitutes a kempt diet. With so much unconnected information available about health and nutrition, it can be very difficult to determine what is accurate and what is not.The truth is that soft drinks and other beverages slang a place in a healthy lifestyle. A healthy diet incorporates the basic principles of variety, balance and moderation without sacrificing enjoyment.Your Health Our Beverages There is growing confusion about what constitutes a healthy diet. With so much inappropriate information available about health and nutrition, it can be very difficult to determine what is accurate and what is not.The truth is that soft drinks and other beverages have a place in a healthy lifestyle. A healthy diet incorporates the basic principles of variety, balance and moderation without sacrificing enjo yment.Climate Change The Coca-Cola Company takes the issue of global climate change very seriously. We have adoptive a comprehensive policy aimed at reducing the environmental furbish up of our chill equipment overtime. By the 2004 Olympic Games in Athens, we will no longer purchase new cold-drink equipment using hydrofluorocarbons (HFCs), wherever cost-efficient alternatives are commercially available. Additionally, we will reduce the energy use of our single(a) equipment by 40-50 percent over the next ten years.As we developed our cooling equipment policy, we referred to the basic tenets of the Kyoto Protocol. While we support the scientific analysis and general objectives of the agreement, we believe that ratification of international treaties and protocols should be left to national political processes. By focusing on our own efforts to reduce greenhouse emissions, we hope to go away an example of how businesses can operate in an environmentally sustainable mood.MANAGEMENT OF COCA-COLAFollowing are the information about the management of Gujranwalaplant.The movery is conceal by the BOM (Business operational private instructor) and under him eight Departments is works. Every Department is crevice by a surgical incision motorcoach. The Departments of account is lead by the director account and under him assist manager works. Who pull wires the other employees of the division under him? Department of production and engineering is lead by the Prod. Eng. Manager. infra him work Mechanical Engineers Mechanical executive director program and Assistant ware. Quality ascendency department lead by the manager quality control. Under him working the chief chemist whos responsibility is to give the quality product to the customer. cut-rate sale marketing department is playing the important part in the growing market share in the country. That department led by the trade marketing manager that department is further divided in the sale and marketing section. The marketing department is lead by the marketing manager and the sale section by sale manager. Sale men work under the sale manager Fleet department control thetransport vehicle of the company the head of the department is Fleet manager and under him work the assistant fleet manager who manages the control over the transportation of the company. The dispersion of the coca-cola around the Gujranwala region is the responsibility of dispersal department, which is lead by the distribution Manager. Assistant distribution manager work underHim to full exact their duties. Human recourse and international affair department take control over the external environment of the company and help the in the growth of the company. That Department is lead by the Manager H.R.I.R. other executive work under his supervision.The R D Department plays the most important constituent in the development and the growth of the company. This Department is lead by the Manager RD. and Assistant Man ger work under him.The total number of employees in the coca-cola GujranwalaCompany is 236.To be specific the working environment in the company represents the companys culture in large. The culture is the shared values among the several(predicate) people so the environment of the company is widely shared by its employees that break up to form the companys culture. In the coming lines the working environment of the Gujranwala Coca-cola factory is described.Company culture-The factors, which must be highlighted in this regard, are asfollows finicky training is given to employees, New employees also are placed with old ones to learn work and the values prevalent in the company,Two cups tea are free for every employee daily this representsthe hospitable nature of the company, This factor keeps theemployees motivated as they are taken well care this fact isclear by the physical actions took by the company,The company working environment is really a good blend ofAsian and western value s.Motivations for employees feement-Coca-cola is providing smart wages to its employees, which are competitive and really satisfy its employees. As along with the wages they are provided with a lot of facilities and amenities. In abbreviated structure of wages can be described like this savory mite workers are offered wages along with commission, sales man are offered wages plus commission pursuing certain criteria, White collar workers who are the officers and the executives draw a handsome amount of salary which is really competitive.Staffing and training The Coca-Cola Company has always believed that education is a powerful military unit in improving the quality of life and creating opportunity for people and their families around the world.The Coca-Cola Company is committed to helping people make their dreams come true. All over the world, we are involved in innovative programs that give hard-working, knowledge-hungry students books, supplies, places to athletic field an d scholarships. From youth in Brazil to first generation scholars, educational programs in local communities are our priority.Annual Leaves-Coca-cola international has different leaves structures in differentregions and countries of the world where they have their company.Their leaves structure regarding Pakistan especially in GujranwalaDivision Company is as followsDesignationAllowed leavesSupervisor26 leaves per annumAbove then Supervisor26 leaves per annumBelow supervisor24 leaves per annumThe above table shows precisely how the leaves structure allows for the leaves and how well the employees are awarded with facility of getting their own own(prenominal) time to manage their own problems. These leaves are authorized for the employees and these include the with pay leaves. This facility is really great which keeps the employees motivated and thrilled about their work. condemnation Management For Work-Time management is the key to grow in this fast and furious century of growth and development, so therefore Coca-cola is doing at their best for this pivotal factor of managing time. To cover this segment of management they have divided the work in to shifts. For this purpose phenomenon of division of labor is bring for its functioning. In Gujranwala Coca-Cola company has divided the shifts for the work in the following mannerThey are managing the working time in two shifts. They can include some extra shift if there is demand but normally there are two shifts, which are explained in the following.8 a.m. to 4 p.m. (all departments other then technicaldepartments),4 p.m. to 12 p.m. (Technical department).These are the shifts in which the work in the factory is mostlyconducted. medical checkup Facilities-Medical facilities are of prime importance in any organization as the health of employees is in the benefit of the company as well as its the social responsibility of the company to provide nice and healthy work environment to its employees, These facilities a re such facilities which can include first aid treatments, soupcon handling problems, sickness, and other diseases which are fatal for a person. The Coca-Cola Company is providing Medical facilities to all its employees. These treatments are provided to employees as per their designations. The medical facilities are also provided to supervisors as well as the officers in the company.Employees our Asset The heart and soul of our enterprise have always been our people. Over the past century, Coca-Cola people have led our successes by living and working with a consistent set of values. While the world and our business will continue to change rapidly, respecting these values will continue to be essential to our long-term success.As we have spread out over the decades, our company has benefited from the various cultural insights and perspectives of the societies in which we do business. untold of our future success will depend onour ability to develop a worldwide team that is rich in its diversityof thinking, perspectives, backgrounds and culture.We are determined to have a diverse culture, from top to bottom thatbenefit from the perspectives of each individual.Employee Forums We believe that a sense of community enhances our ability to attract, retain, and develop diverse talent and ideas as a source of competitivebusinessadvantage.In the U.S., through employee forums, employees can connect with colleagues who share similar interests and backgrounds. In those forums and elsewhere, employees support each others personal and professed(prenominal) growth and enhance their individual and collective ability to contribute to the company. Forums that are currently active includeAdministrative ProfessionalsAfrican-AmericanAsian/Pacific-AmericanGay LesbianLatinWomenMentoring Programs The Coca-Cola Company is creating a system of mentoring programs that include, one-on-one mentoring, group mentoring and mentoring self-study tools. Currently, Coca-Cola North America and The trice Maid Company have one-on-one mentoring programs designed to foster professional growth and development. TheseHR coca colaGIFT Business School26Every year, the world produces billions of tons of waste. Recycling and reusing waste materials is dead crucial if we are to maintain the health and beauty of the earth. The Coca-Cola Company is working constantly toward coming up with smart, creative ways to reuse waste. Heres a glance at what were doing.To introduce innovative and environmentally friendly packaging, we open up a breakthrough facility in Sydney, Australia for the worlds first PET bottles to be produced from recycled PET bottles. Today, one in four PET containers sold by our company in North America contains recycled content.Our Commitment To Diversity Our commitment to diversity also extends into the community. Valuing our people helps us better meet the needs of our customers and partners. Through our people and our local bottling partners, we build relationshi ps through local marketing, local civic programs andlocalbusinessopportunities.Realizing the full potential of diversity has a direct impact on ourcompanyIt improves our understanding of local marketsIt makes us a better employer and business partnerIt helps us compete more effectivelyIt makes us better neighbors in our communities andultimately,It builds value for our shareowners.Our company is energized with a new entrepreneurial operatingculture, fueled by the twin engines of innovation and diversity.DEPARTMENTALIZATION Following are the departments in Coca-cola company regarding toGujranwala plant-Human resource and international relationdepartment.Research and Development department.Account department.Engineering department.Production department.Quality Control department.Marketing department.Sale department.Fleet department.Distribution department.Human Resource Management within Coca ColaHuman Resource Management is an essential part for anyorganization. Moreover, developmen t of this department is the firststep, the ground on which the future of the company depends. It isessential for every single business unit and especially for suchinternational company as Coca Cola. It is people, not technologywho create the company. Human Resource Management at Coca ColaCompany has many advantages. It is the global company and it isimpossible to create certain policies or procedures applicable in alldivisions of the company, cultural and political differences need tobe taken into account. Therefore, the focus of this physical composition will be onfour tasks and duties of Human Resource Management (performancemanagement, compensation, career development, successionplanning) based on the United States procedures.Basically the HRM practices are necessary for every organization.But unfortunately in Pakistan not so much employ HRM practices. Inmultinational companies like coca cola have their own separatedepartment of HRM. According senior executive of HR WaqarMahmoo d our HR department consist of 29 people in Gujranwalaplant.Every organization has its own policies and strategies by which theycontrol the functions of their departments. Similarly, we also haveown policies and strategies by which we control all the functions ofour departments. coca cola HR department is also conducting all thepractices of HRM like Job analysis and design of work ,r e c r u i t m e n tand selection, training and development, performance appraisals, compensation, employee relationships, staff welfare and medical policies and some other things like that. These all practices areconducted by own policies and strategies.HR department not make decisions colligate of its own department,they also conduct in companys decision.Job analysis and excogitationJob analysis is the procedure for determining the duties and skillrequirements of a employment and the kind of person who should be hire forit. Job analysis consists of two products one is job explanation andsecond jo b specification.Job commentary a list of job duties, responsibilities, reportingrelationship, working conditions, and supervisory responsibilities-one product of a job.Job specification a list of a jobs human requirements that isrequisites education, skills, personality, and so on-other product ofa job analysis.Coca cola company HR department check its own job descriptionand job analysis in which they get the information about employeeswork activities, human behavior, performance standard, job contextand human requirements and also other information related to thisconduct.HR department of coca cola used this information for Recruiting,selection, compensation, performance appraisal, training, andemployees relationship.Planning and ForecastingThe process of deciding what positions the dissipated will have to fill,and how to fill them.Coca cola HR department involves in company strategic planningand they also make fit planning for hiring new employees inthe future. We forecast for t he expected employees needs in theorganization. We forecast of employees on the change technologyand increasing in productivity. afterward planning we send this report to the head office for commendation. Ifwe get approval from the head office then we start recruitmentprocess.Our recruitment processOur recruitment process is well established first of all we give adsin news papers, company website, institutions etc.Once we receivean application form, from candidates with required documents and CV.Internal recruitmentExternal recruitmentExternalSelection processThe selection process will vary depending on the position youreapplying for, as one process cant fit all the different roles we havehere at CCE. However, in most cases a combination of any of thefollowing tools will be usedInterviewGroup exercisesPresentationspsychometric testsRole plays/Situational ExercisesInterviewThe interview is designed to reveal more about you and yourexperiences. Well ask for examples of how you behave d indifferent situations, maybe at school, university, a club, at home orin previous jobs. This is not