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Submitted To:
Sir Tahseen Mohsin
Submitted By:
Rana Aamir Saleem 100645-007
Adnan Sajid 100645-011
M.Rizwan Virk 100645-010
M.Waqar Akram Gujar 100645-017
Programme:
M.Com (Batch-6)
3rd Semester

University Of Management & Technology.


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ACKNOWLEDGEENT

First and foremost, we are grateful to ALLAHALGHTY¶,most beneficent and the most
merciful Who made us able to complete our given project successfully.

We would also like to pay tribute to the benefactor of humanity HOLY ÆO HET¶
 H,Who gave us complete knowledge on every aspect and field of life.

In short of words, to express our modest gratitude and recognition to cuddly and loveable
 AÆENTS¶, who at each and every moment prays for our success. We are also deeply thankful to
our TEACHEÆS¶ to have taught us from childhood to still especially µSÆTEHSEEN
OHSN´, who taught us NANCALÆSKANAGEENT´.

Th,
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DEDCATON


We dedicate this report to our parents and friends in recognition of their worth and to our
teachers who are the guiding force for us and it is their effort and hard work that showed us the
path of success and prosperity which would be there for us for the rest of our life.

Our thanks to all those who have generously contributed their theoretical knowledge to this
report including our teachers. Without their understanding and support, completion of this work
would not have been possible.

We hope people find this report useful and the subject matter adds to their knowledge.

6

  

  
  
     

    
 
       

  

   


   
   




   
 








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NTÆODCTON

Founded in 1886, the coca-cola company is the world¶s leading manufacturer, marketer,
and distributor of nonalcoholic beverage concentrates and syrups. The company¶s 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, Coca-Cola has a portfolio of more than 3,000
beverages. Coca-Cola has 92,400 employees worldwide. More than 70 percent of our income
comes from outside the U.S., but the real reason we are a truly global company is that our
products meet the varied taste preferences of consumers everywhere.

SONSTATEENT

Our vision guides every aspect of our business by describing what we need to accomplish in
order to continue achieving sustainable growth.

Y  Be a great place to work where people are inspired to be the best they can be.

Y 
  Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.

Y 

 Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.

Y 
Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

Y 
Maximize long-term return to shareowners while being mindful of our overall
responsibilities.

Y !

Be a highly effective, lean and fast-moving organization.




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SSONSTATEENT
Mission statement is a statement of organization¶s purposes that what it wants to accomplish.
In order to achieve mission of increasing market share and maintaining good relations with our
customers all over the world, we wish to create value for all the constraints we serve, including
our consumers, our bottlers, and our communities. The Coca Cola Company creates value by
executing business strategy guided by four key beliefs:
Y Customer is king; Customer demand drives everything we do.
Y Brand Coca Cola is the core of our business.
Y We will serve consumers a broad selection of the nonalcoholic ready-to-drink
beverages they want to drink throughout the day.
Y We will be the best marketers in the world.

Everything we do is inspired by our enduring 

:

Y TÆ 
h
hW...in body, mind, and spirit.
Y T
  

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...through our brands and our actions.
Y TC
D !...everywhere we engage.

SHAÆEDALES
Our values serve as a compass for our actions and describe how we behave in the world.

Y L
h  The courage to shape a better future

Y C
reverage collective genius
Y 

 Be real
Y A!!
 
 If it is to be, it's up to me
Y 

 Committed in heart and mind
Y D 

As inclusive as our brands
Y Õ
 What we do, we do well

O"ECTEOCOCACOLA
The company has sales based objective .Everything else (marketing plan, advertising
plan, production etc.) is derived from this objective.

Currently the companyµs objective is to

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The company sets its objective keeping in view the past performance, Historical trends,
current market position, economic condition, macro environment and micro environment factors,
social values, market size and growth rate ,future expectations and predictions

    
All CC L plants setup their own goal to achieve the objective.The company goal is

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the project of !!!C , as a manufacturing company. We work at different areas.

Here, we do industrial review of coke; effectiveness and efficiency of the coke processes, their
technology, and their man power utilization and also check their other resources.

We evaluate their need facility either they have need for the loan or not and also do the SWOT
analysis of the company to check the strengths and weakness of the company.

We calculate income to repayment amount ratio and also the amount of collateral ratio etc. 

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COKEHSTOÆYN AKSTAN



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The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are
the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan
operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages
Pakistan rimited (CCBPr). The CCBPr plants are in Karachi, Hyderabad, Sialkot, Gujranwala,
Faisalabad, Rahim Yar Khan, Multan and rahore. The Coca-Cola System in Pakistan serves
70,000 customers/retail outlets. The Coca-Cola System in Pakistan has nearly 3,000 people
working constantly for the company. During the last two years, The Coca-Cola Company in
Pakistan has invested over $130 million (U.S) and coke has successfully provided 56 years of
dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm


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has been continuously changing its slogans and that¶s a very creative idea to get the attention of
the customers.

. Here we would like to include some of the popular slogans of coke since the coke journey
started.

Y 1886 Drink Coca-Cola

Y 1908 Get the genuine
Y 1923 Enjoy thirst
Y 1934 When it's hard to get started, start with a Coca-Cola
Y 1942 The only thing like Coca-Cola is Coca-Cola itself
Y 1956 The friendliest drink on earth
Y 1963 Things go better with Coke
Y 1993 Always. Coca-Cola
Y 2001 rife is Good
Y 2003 Jo Chaho Ho Jaye Coca Cola Enjoy
Y 2004 Flight Of Delight
Y 2005 Galay Delicious Taste
Y 2006 Thanda matlab coca cola
Y 2007 khaly pily jila coca cola
Y 2008 Aja jashan mena ly


TODAY
Today CC L is operated directly under the supervision of
the C!&C International based in Atlanta Georgia State___ USA
.It owns 8 plants all around in Pakistan. Coca Cola Company offers
the brand range as Coca Cola, Diet Coke, Fanta, Sprite and Kinley water in
Pakistan.

Y Coca-Cola introduced in Pakistan 1953

Y Fanta introduced in Pakistan 1965


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Y Sprite was introduced 1972

Y Diet Coke & Fanta remon 2001

Type Soft Drink (Cola)

Manufacturer The Coca- Cola Company
Founder(s) John S. Pemberton
Country of Origin United States
Introduced 1886
Area served Over 200 countries
Color Caramel E-150d
Flavors Cola, Cola Green Tea, Cola remon, Cola
remon rime, Cola rime, Cola Orange and
Cola Raspberry.
Related Products Pepsi, Irn Bru, RC Cola, Cola Turka, Zam Zam
Cola, Mecca Cola, Virgin Cola, Parsi Cola,
Qibla Cola, Evoca Cola, Corsica Cola, Breizh
Cola, Afri Cola
Employees 92,400
Servings per Day 1.6 Billion
Website www.coca-cola.com

NDSTÆYANALYSS

Y POPUrATION   176,242,949 (July, 2009 est.)
Y CHIrDREN    37.2% (65,607,612)
Y ADUrTS    62.8% (110,680,572)
Y CHIrDREN EQUITY  60% (14,643,619)
Y ADUrT EQUITY   40% (27,802,960)
Y TOTAr TARGET MARKET 42,446,579
Y GROWTH RATE 1.828%

Y BIRTH RATE   27.74 births/1,000 population

Y DEATH RATE: 8 deaths/ 1,000 population


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Y NET MIGRATION RATE  1.24 migrant(s) / 1,000 population
Y 0-14 YEARS   37.2% ( male: 33,739,547 / female: 31,868, 065)
Y 15-64 YEARS   58.6% (male: 52, 849, 607 / female: 50, 378, 198)
Y 65 YEARS AND OVER  4.2% (male: 3,475,927/female: 3,931,605) 

Beverages are a major consumer able item and there is a huge demand and potential in
this market particularly the nonalcoholic ready to drink soft drink. The nonalcoholic ready to
drink beverage has grown year on year and as a result, the pie is growing bigger every year.

The market analysis investigates both the internal and external business environment. It is
vital that Coca Cola carefully monitor both the internal and external aspects regarding it¶s
business as both the internal and external environment and their respective influences will be
decisive traits in relation to Coke¶s success and survival in the soft drink industry.

Y NTEÆNALSNESSENÆONENT

The internal business environment and its influence is that which is to some
extent within the business¶s control. The main attributes in the internal environment
include efficiency in the production process, through management skills and effective
communication channels. To effectively control and monitor the internal business
environment, Coke must conduct continual appraisals of the business¶s operations and
readily act upon any factors, which cause inefficiencies in any phase of the production
and consumer process.

Y EXTEÆNALSNESSENÆONENT

The External business environment and its influences are usually powerful forces
that can affect a whole industry and, in fact, a whole economy. Changes in the external
environment will create opportunities or threats in the market place Coca cola must be
aware off. Fluctuations in the economy, changing customer attitudes and values, and
demographic patterns heavily influence the success of Coca Cola¶s products on the
market and the reception they receive from the consumers.

Y CO ETTON
All over world there are two soft drink giants, C and 
. The competition between
two companies has always been neck to neck. Both these companies keep on try to take lead in
terms of pricing, packaging, promoting and placing.
In Pakistan recently a few other beverages are also introduced such as Mecca-Cola, Shandy Cola
and Amrat-Cola but currently these soft drinks are not a threat for coke due to their very low
market share and secondly due to brand loyalty of customers for coke.


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Y OLTCAL/LEGAL

These are uncertainties that are extremely variable in the political conditions of
Pakistan. Constant political instability does affect the company in terms of building new
relations with new Governments all the time.

Y SOCALANDCLTÆALACTOÆS

The company has to be very careful in the implementation of its promotional

campaigns, since the social cultural environment of Pakistan is very conservative and any
suggestive advertisements usually face a lot of negative reactions on the part of the
consumer.

ù SOCALACTOÆSSocial factors include consumer¶s family, small groups

and status. Family members can affect buying behavior in such a way that if
number of children is more in a family than the elders, then the children choice
can matter a lot at the time of soft drink purchase. On the contrary, sometimes
people go for the product that shows their status in society.
ù CLTÆALACTOÆSEvery group and society has its own culture. Cultural
factors affect coke purchasing massively. Different communities and groups of
people have reshaped Pakistan¶s culture. In recent years the Bahar/ Basant festival
in Punjab specially become important part of our culture in which sales of coke go
very high. Soft drink is purchased in bulk for the parties and other occasions.

Y EÆSONALACTOÆS
Buyer¶s decision is also influenced by personal characteristics such as buyer¶s age
and life cycle stage, occupation, personality and self-concept. Age and lifecycle stage
means that people taste and way of living changes with passage of time. rets say in
earlier stage of life if a person¶s best choice for soft drink was Coke classic but as he
proceeds with his life, way of thinking and style may change. He may not opt for classic
coke anymore and might be more interested in diet coke.
Occupation matters a lot when consumer is indulge in buying. If consumer is a
student by occupation he will certainly go for returnable bottle of or may be disposable
bottle of 25 RS but most probably not for the coke CAN which is high in price. Where as
if the consumer is a business executive who is financially strong will prefer more the
coke classic can or diet coke can. This change is mainly because of occupation.


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Y SYCHOLOGCALACTOÆS

A person¶s buying behavior is further influenced by major psychological factors

such as motivation, perception, learning and self benefits.

Motivation is basically a drive that¶s sufficiently pressing a person to seek

satisfaction of the need. Sometimes a person has no intention to buy a particular product
but what happens is that the group of people around him motivates him motivates. If a
person is highly satisfied with the taste of ³diet coke´, he may share his experience with
another person and as a result the latter person might get motivated by his opinion and
end up buying ³diet coke´

In some cases, consumers have descriptive thoughts and beliefs about something.
It may change with the passage of time because mostly all the self beliefs are secondary
and not the core ones.

Y OTHEÆACTOÆS
Other factors like the Government rules, regulations and technological
advancements have had no significant effect on the product and the company.


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OÆTOLOANALYSS
A tool by which the management identifies and evaluates the various businesses that
makes up the company. Generally there are two approaches of doing the portfolio analysis &
Coca Cola¶s portfolio analysis is done with both the methods & the results are as follows:

CGOSTONCONSLTNGGÆO A ÆOACH

In the BCG approach, a company classifies all its Bus according to the growth share
matrix.

Coke is one of the main product lines of the Coca Cola Company. It is the one which is
giving maximum revenues to it by different products in this line. Here we have classified some
of its major products in the BCG matrix on the basis of their fame and liking of the people.


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STAÆ
Coke Classic is the basic product through which the Coca Cola Company got the fame. It
is one product, which gives the maximum revenue from all over the world. It is one flavor, which
has the maximum consumers all over the world. Coke has already worked a lot on it by
launching new flavors in it, but still it is a product they can turn as famous as coke Classic.

CASHCOWS
Fanta and Sprite are the products, which the Coca Cola Company can never think of stop
producing. It is the one which make the coke company a huge success; it was one product which
gives billions of dollars as revenue from world over. Whenever the company thinks of launching
its product in a country the first product they launch is coke classic as they know that if don¶t
work here then nothing else can.

ÕESTONAÆK
Products that are still not a big hit as they haven¶t consumed much time yet. Sprite 3G,
Sprite Zero, Diet Coke and Kinley are the examples of these question marks as the question
marks as they have not taken much time yet to get a hold of market & not even the large
percentage of the people have tasted it. So it needs time to be fully tested by the company & the
company needs to think whether it should continue the production or should divert to something
new.

DOGS
A product that has not worked good or a product which has been a source of loss.
flavored Fanta is one product that was not a big hit. Even it¶s not a long period which flavored
Fanta has consumed but still there are signs that it won¶t be a success. So it¶s better for the
company to get rid of it.


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DE AÆTENTS
Every organization is made up of different departments, each of these departments help
Coca Cola achieve their objectives. As Coca Cola is a large multinational company, the amounts
of departments are huge. Each country has their own Head Office and departments. Coca Cola is
geographically split into five geographic operating segments, also known as strategic business
units (SBU's). The six SBU's are North America, Africa, Asia, Europe, Middle East and finally
ratin America. If all departments perform in the correct way then that will continue the success
of Coca Cola.
There are 6 functional departments within Coca Cola, these are:

Y Marketing

Y Finance

Y Packaging

Y Sales

Y Research and development

Y Administration



Õ





Coca Cola is now one of the largest corporations in the world, with a global workforce of
over 90,000 and revenues of $31.9 billion in revenues in 2008. Over the years, the brand equity
of the Coca-Cola trademark, as well as that of other Coca Cola-produced brands, has established
Coca Cola as a prominent figure in the non-alcoholic beverage industry and allowed the
company to keep both revenues and profits high.


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$21,742 $23,104 $24,088 $28,857 $31,944

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!  $4,847 $4,872 $5,080 $5,981 $5,807
 





  19.8 20.6 21.4 22.7 23.7
  


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E 
.Õ'((/In the first quarter of 2009, the Coca-Cola Company posted
revenues of $7.169 billion, a 3% decrease from .Õ'((- figures; net income fell 10% to $1,348
billion. Although sales volumes actually rose 7% during the quarter, the Coca-Cola Company
was negatively impacted by the dollar's strengthening against the euro, Brazilian real, Mexican
peso, and South African rand.

'Õ'((/ In the second quarter of 2009, the Coca-Cola Company posted revenues of
$8.267 billion, an 8.6% decrease from 'Õ'((- figures; net income grew 43% to $2.037 billion.
Although the company managed to grow worldwide case volume by 4% (with especially
important increase of 33% in India and 14% in China), adverse fluctuations in the foreign
exchange caused the decrease in revenue. On a currency neutral basis, revenues grew by 4%
during 'Õ'((/, as pricing remained constant during the year. The growth in net income is
deceptively large, as the 2008 figure includes an $843 million, or $0.40 per share, charge due to
changes in the company's accounting policy of its equity investments in its bottlers. Ignoring this
charge, net income would've fallen by 12%.

GLOALNTSALESOCOCACOLA
The global unit sale of the Coca Cola Company is increasing from last years. The data of
the global unit sale of the Coca Cola Company can be represented by the following chart.


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So there is a positive growth in the market of Coca Cola Company. There is a worldwide volume
increase with strong international growth. This is only due to the innovative marketing
programmers, which has deepened the relationship of the customers and Coca Cola. The
financial health and success of their bottling partners is a critical component of the Coca Cola
Company¶s ability to build and deliver leading brands.

In 2008, the company had worked with their bottlers to turn good intentions into reality
by improving the system economics. The results in 2008 reflect this steadily improving and
mutually constructive relationship between the Company and their bottling partners. The main
reason behind this relationship is to continue realizing shared opportunities for growth, with
closer coordination of operations including customer relationships, logistics and production.








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ÆEGONWSECONS TON

OCOCACOLA

Coca Cola is the world renowned soft drink and the company is currently operating
throughout the world. The world wide total is 23.7 Billions. Review according to the regions is
as follows:So the volume is least in Eurasia & Africa and the most in ratin America. From this
data we can find out that the customers of Coca Cola are increasing which is shown the
company¶s per capita income.


 
 
   

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On global level Coca-Cola is the most popular brand and market leader controlling 60%
of market share. In Pakistan Coca Cola is the market follower but still in a very strong and stable
position holding 36% of the local market with a growing and increasing market share every year.




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This company is financially very strong. It is due to the strong finances, the company is still surviving the
ups and down of the business world. The financial report of Coca Cola Company of the year 2009 and
2010 along with the percentage change is as follows.

Year Ended December 31,

(In millions except per share data, ratios and growth rates)

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 31,944 28857 1%


   
8,446 7,252 45%
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5,874 6,027 Ú %
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basic 1.601 0.882 Ú %
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diluted 1.601 0.882 Ú %
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 4,110 3,585 15%

 
 



u963) u779) 4%
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   u1,791) u1,685) 6%
 

 


 u277) u133) 10Ú%


   3,147 2,806 1 %


   
 26.6% 16.2% -


  

 38.5% 23.1% -
 
 
 
   



  

  12.5 11.9 5%
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  5.3 5.2 %

17.8 17.1 4%

2009 basic and diluted net income per share included a non-cash gain of $.02 per share after taxes, which
was recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity investors of this
company.

2010 basic and diluted net income per share includes the following charges:

î $.24 per share after income taxes related to an organizational Realignment.

î $.19 per share after income taxes related to the Company's portion of charges recorded by the
investors of the company.
î $.16 per share after income taxes related to the impairment of certain bottling, manufacturing and
intangible assets.
î $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.


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O 
Beverages are considered to be more risky and the business addresses different types of risks
involved like market, credit, liquidity and operational risks. Coca cola management no doubt has
taken sufficient measures in order to mitigate risk in all aspects to a greater extent. ret¶s see
these risks factors in detail.


Æ


Market risks deals with the unfavorable fluctuations in the cash flows on account of significant
changes in the market values. The potential market risk deals with the

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As the fuel prices are highly unpredictable and in spite of forecasting it is very difficult to
manage fuel price risk. Coca cola management adopted a reasonable measure to hedge fuel price
risk. The management hedges its fuel price risk by entering forward contracts in derivative
market.

C!Æ


Currency risk relates with the unfavorable fluctuation in the price of financial instruments with
the change in foreign exchange rates. Coca coal¶s revenue comes from different currencies that
are why fluctuations in foreign exchange rates can be adversely affect on corporation earning.
More the corporation has borrowed a substantial part of borrowing from foreign currencies like
Great Britain Pound (GBP), US dollar and Saudi Riyal. The fluctuations in foreign exchange
rates can impact in both way, negatively and positively.


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To handle the adverse impact on financial soundness of the corporations, the management
always looks a sharp look in the prices of foreign currencies in order to retaliate and mitigate any
currency risk arising through market conditions. The corporations also use its foreign receipts to
meet its foreign obligations.

The following table will demonstrate the effects of currency rate affects; will result in a financial
loss in the last couple of years.


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Impact of loss due to Change 1,113,300 +5 in USD 1,166,970
in USD rate
Change in GBP rate , loss 20,220 +5% in GBP 20,120
impact on before tax
Change in SAR rate , loss 44,660 +5% in SAR 3,450
impact on before tax
Total 1,178,180 1,190,540

The table is representing that the corporations is more need to take measure to hedge risks in
order to avoid loss. There is a stringent need of making forward commitments in order to hedge
risks.




Æ
Æ


Interest rate risk defines the fluctuation in the value of financial instrument due to the rapid
changes of market interest rates; rondon interbank offer rate, Karachi interbank offer rate etc.
the corporation has obtained long term borrowings. These borrowing that are obtained by
corporation through internal and external financial institutions that is affected when the interest
rate goes up. In other words, corporation is exposed to risk in terms of long term borrowing and
bank balances. In this way cost of funding can be increased and interest rate risk will increase, by
which the impact will lead to reduction in profitability of coca cola.

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Coca cola¶s management has taken according to data available in the annual report 2009, certain
measures in the form of financial derivatives to hedge interest rate risk


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December 2009 December 2008 December 2009 December 2008

Change in
interest rate 1.2 1('*2

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Effect on ross
Before Tax (386,728) (287,610) (233,285) (237,435)
Change in
&.2 &('*2
interest rate
Effect on ross
386,728 287,610 233,285 237,435
Before Tax

The table is clearly depicting the resultant change in the amount of cash flows in case of positive
and negative fluctuations in the interest rates.

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The other price risk is arises due to changes in the fair value of future cash flows of a financial
instrument other than the currency and interest rate risk. At now the corporation is not
significantly exposed to price risk because most of its investments are in subsidiaries, associated
companies and joint venture which are stated at cost.

L 3 
Æ


If an organization feel difficult meet its obligation at the scheduled time, this explains managing
the liquidity risk. In this regard we will evaluate whether the corporation by observing that
whether it is maintaining sufficient cash balances for meeting short term obligations and working
capital requirements.

For this we will examine its schedules of future obligations. We need here to compare between
two years long term and short term financing for assessing the trends of improving or
deteriorating.


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'((/ Y
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 (((
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rong term
Financing 5.91% 7,095,953 25,056,586 11,621,895 43,775,434
Term Finance &
Sukuk Certificates 10.22% 6,297 19,599,516 - 19,605,795
riabilities Against
Assets
Subject to finance
rease 2.62% 10,568,706 41,540,459 27,767,691 79,876,856
Trade & Other
Payables 13.50% 20,330,967 - - 20,330,967
Accrued Interest
(profit) 1,845,592 - - 1,845,592
Short term
Borrowing 13.50% 28,684,514 - - 28,684,514
Total ./),../,.*-

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 (((
(((
rong term
Financing 3.68% 11,697,092 13,126,846 - 24,823,938
Term Finance &
Sukuk Certificates 12.50% - 12,430,143 12,430,143
riabilities Against
Assets
Subject to finance
rease 2.51% 9,762,644 45,534,568 27,974,758 83,271,970
Trade & Other
Payables - 19,726,002 - - 19,726,002
Accrued Interest
(profit) 1,475,456 - - 1,475,456
Short term
Borrowing 12.34% 30,500,062 - - 30,500,062
Total .,','',,*,.

These graphs are representing the obligations that PIA will have to make according to terms and
conditions. By sketching diagrams we can better compare the trends.


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According to the data available the borrowings has been increased to a greater extent. The main
reason about current liabilities have increased in the form of greater long-term financing and
short-term borrowing. The greater long-term borrowing had been facilitated for the purchase of
three Boeing 777 and three ATR aircrafts. In financial year 2009, the current liabilities have
dropped by 4% while the current assets showed a growth of 12%. The current liabilities'


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composition shows that short term borrowings dropped by 20% in the year 2009.

  
 
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The corporation arranged its amount of borrowings. After four years now the corporations is able
to attain some profit. Finance cost has increased to Rs 9.24 billion in the year 09, primarily due
to increased mark-up on short term borrowings. So the credit risk is considered to be very high.

As far as the liquidity position of coca cola is concerned, the corporation has faced a declining
trend over the past couple of years but in the year2009, it has showed a little growth. The
declining trend can be primarily attributed to a sharp rise in the current liabilities of the company
over the years. Mainly, current liabilities have increased in the form of greater long-term
financing and short-term borrowing. 

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Credit risk arises when one party having financial instrument cause a loss for the other party in
absence of meeting the due obligation. We come to know that all financial assets except cash in
hand are subject to credit risk.

The corporation has a credit policy in place and proper monitoring is done by management on
timely basis.

The following table has clearly distinguished the credit items that are taken from corporations¶
balance sheet.

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ß They purchase the raw material at low price and then process it with their automatic
machines to make quality products. They have very short listed employees in their
manufacturing because of the new technology. They use batching process for the
productivity. Due to this their cost is effectively reduced at the production.


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ß They have storing capacity of their products and they reduce their cost because they have
their own stores not hired at rent.
ß They are using modern technology for their production like production at lowest price
with comparison to their competitors.
ß They have adequate imported machinery and technology according to their need and
there is lien on some machinery of the MCB and UBr for a long term debt..
ß The machinery engineers are hired by the coca cola company for the maintenance and
supervision of the machinery.
ß They give training about the new technology to their employees and then they use their
man power according to their need.



CO ETTOÆS
Y Mecca Cola

Y Amrat Cola

Y RC Cola

Y Shandy Cola

Y Qibla Cola

Y Future Cola

Y Unilever
Y Kraft Foods, Inc.

#N
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The Coca Cola Company exists to satisfy the consumers¶ needs. The Coca Cola Company
has over 400 brands of drinks designed to satisfy a very wide range of consumers. They are able
to provide drinks for many different target markets including, people of all ages, sexes, races,
etc. Coca-Cola products are able to sell to a diverse worldwide population and its success is
unmatched.
In today¶s society, people are looking to lead better, healthier lives, Coca Cola seeing this
trend has begun to produce, diet drinks that have the same great taste as their regular drinks


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while still being low fat or low calorie drinks, such as diet coke, or coke zero.
Coca Cola products are purchased by all the different classes, but mainly by the middle
and high-class citizens, because they have more money to spend on luxury items. Coca Cola is a
very successful company; due to their success they are able to spend more money making their
factories work more efficiently. They can do this by updating the equipment used to produce
their drinks.
Although people today are becoming more conscious about their environment, and the
damage that has been done in prior years. Many people make their purchase decisions partially
based on a company¶s ethics, or social responsibility. By contributing to stop pollution both
within and outside their factories, they will gain the trust and respect of the potential buyers, who
care about saving our environment. In gaining their trust and respect more people will be willing
to purchase their products, because the company stands for the same goals that their consumers
are trying to protect. The Coca Cola Company tries to be more environmentally aware.

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SWOTANALYSS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company, project, or a business venture. It involves
identifying the internal and external factors that are favorable/ unfavorable for business to
succeed.

NDSTÆALSWOTANALYSS
STÆENGTHS
The soft drinks market in Pakistan enjoyed dynamic growth over the review period in
both volume and current value terms. Carbonates dominate the market in both the on-trade and
off-trade with the lion¶s share of sales. Carbonates have become part of the culture in Pakistan
and multinational companies have maintained their standards over the years to provide
consumers with high quality carbonated drinks. Off-trade sales of carbonates are higher than
those of the on-trade but both achieved strong growth over the review period.

WEAKNESSES
riquid concentrates and power concentrates are both seasonal categories in the market
and their sales peak in the summer in Pakistan. Both Rooh Afza and Jam-e-Shirin are traditional
sandalwood drinks in Pakistan which are highly regarded by consumers. These drinks can be
found in every home in Pakistan, especially in rural areas throughout the summer and are the
mainstay of liquid concentrates.

O OÆTNTES
The Government of Pakistan has reduced excise taxes to encourage soft drinks
manufacturers and importers. The Government also reduced other applicable taxes to promise
more profit not only for soft drink manufacturers already in the market but also to attract
potential soft drinks manufacturers to invest in Pakistan. Tax reductions proved extremely
beneficial to the soft drinks market in Pakistan and certainly encouraged and attracted
multinational companies to invest in the country¶s soft drinks industry. The government also
decided to tax the beverage industry on capacity of production rather than on actual production


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and that brave move encouraged soft drinks manufacturers to maximize production and reduce
prices.

THÆEATS
Increasing health and hygiene awareness among Pakistanis has greatly increased sales of
fruit/vegetable juice products. Both the government and the media have started health awareness
campaigns to make Pakistanis realize that consumption of fruit/vegetable juice is as essential as
eating food. Fruit/vegetable juices are doing very well in both urban and rural areas. On the other
hand, health and hygiene awareness has also led to increased sales of bottled water in Pakistan.
Previously bottled water was targeted on at major cities where consumers are more health-
conscious and aware of the difference between bottled water and tap water. Nowadays, health
conscious rural inhabitants also drink bottled water due to health concerns.

SWOTANALYSSOCOCACOLA

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-Popularity -Word of mouth

 -well known -lack of popularity of many Coca
-branding obvious and easily Cola¶s brands
recognized -Most unknown and rarely seen
-A lot of finance -result of low profile or non-existent
-customer loyalty advertising
-International Trade -health issues

 Th

O



-changing health-consciousness -many successful brands to pursue
E$
 attitude -advertise its less popular products
-legal issues -buy out competition.
-Health ministers -More Brand recognition
-competition (Pepsi)


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EX ECTATONSOÆTHECONGYEAÆ

Everything starts from the attitude of consumer¶s behavior. And the basic key to attract
the consumers is to throw the ³money away´.
And positive feeling felling with the brand, which they used to have Coke wants to
advertise their products heavily in the coming year. And it will take the 10% of their profits. And
when we take it as a global level it is $ I billion.
Coming year is the challenging year for the industry of Coke. They have to take lots of
decisions that how to increase the production and where they have to spend money.
For gaining success in coming year they have to have some important things like:

Y royal consumers are important for company¶s success.

Y Workers should be the brand centric not the promotion centric.
Y They should know how much to for the brand activities.
Y They should also know that how much to do with the promotion activities for brand.

CONCLSON

We have concluded from this detailed report that despite the fact Coca Cola currently
occupies the market leadership position overall but it does not guarantee that the company will
sustain its position in the future as well. In Pakistan as compared to Pepsi, Coca-Cola has less
number of consumers as Pepsi¶s market share in Pakistan is approximately 54% where as Coke
market share is hovering about 36%, hence the conclusion is that Coca-Cola must enhance
factors such as relationship marketing, innovation and technology especially in Pakistan to attain
market leader position in this region as well.





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LOGÆA HY

www.cocacola.com

www.thecocacolacompany.com

www.wikipedia.com

www.google.com

rocal Newspapers

International Herald Tribune Newspaper

The Nikkei Weekly magazine, Japan (Winter, 2009)

Jamal Hassan