Download - Coca Cola Knowledge Management
KNOWLEGDE MANAGEMENT
PRESENTED TO : PROF. SANDHYA RAO
PRESENTED BY : PREETI YADAV (19)VINAY CHANDE (07)
ITM – SIA BUSINESS SCHOOL
OBJECTIVES
o Company’s Profile
o Need Of Knowledge Management
o Initial Setup & Implementation
o Technology used for KM Portals
o Success Stories related to KM
o Revenue uplift in the company through KM
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
Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime,
Cola Lime, Cola Orange and Cola Raspberry.
Employees 92,400
Servings per Day 1.6 Billion
COMPANY OVERVIEW
COMPANY OVERVIEWo The Coca-Cola Company was originally established
as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stith Pemberton andEd Holland.
o Dr. John Stith Pemberton for the first timeproduced the syrup for Coca-Cola on May 8, 1886.
o The company was formed to sell three mainproducts:
Pemberton's French Wine of Cola Pemberton's Indian Queen Hair Dye Pemberton's Globe Flower Cough Syrup.
COMPANY OVERVIEW
o The Coca-Cola Company is the world's largest beveragecompany.
o Largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world.
o Interbrand’s Global Brand Scorecard for 2003.
o Ranked Coca-Cola the #1 Brand in the World and estimatedits brand value at $70.45 billion
o 1. Mr. David M Gonski, AC (Chairman, Non Exec. Director)2. Mr. Terry J Davis (Executive Director, Managing Director)3. Ms. Jillian R Broadbent, AO (Non Exec. Director)4. Mr. Wallace Macarthur King, AO (Non Exec. Director)5. Mr. Geoff Kelly (Non Exec. Director)6. Mr. Irial Finan (Non Exec. Director)7. Mr. David Edward Meiklejohn (Non Exec. Director)8. Ms. Catherine Brenner (Non Exec. Director)9. Ms. Nessa O'Sullivan (CFO)10. Mr. Ken McKenzie (CFO)
o Company Secretary: - Mr. George Thomas Forster
VISION
o People: Be a great place to work where people are inspired to be thebest they can be.
o Portfolio: Bring to the world a portfolio of quality beverage brandsthat anticipate and satisfy people's desires and needs.
o Partners: Nurture a winning network of customers and suppliers,together we create mutual, enduring value.
o Planet: Be a responsible citizen that makes a difference by helpingbuild and support sustainable communities.
o Profit: Maximize long-term return to shareowners while beingmindful of our overall responsibilities
o Productivity: Be a highly effective, lean and fast-movingorganization.
MISSION
o To refresh the world in body, mind and spirit
o To inspire moments of optimism through our brands and our actions
o To create value and make a difference everywhere we engage.
VALUES
o Leadership: The courage to shape a better future
o Integrity: Be real
o Accountability: If it is to be, it's up to me
o Passion: Committed in heart and mind
o Diversity: As inclusive as our brands
o Quality: What we do, we do well
1894 was the first time Coca-Cola was bottled
1894- early 1900s 1905-1916 1915- today
COCA-COLA BOTTLES
COCA – COLA INDIA
o Coca-Cola was the leading soft drink brand in India until 1977when it left rather than reveal its formula to the governmentand reduce its equity stake as required under the ForeignExchange Regulation Act (FERA).
o Coca-Cola re-entered India in 1993.
o The vision of the company is to lead beverage revolution in theworld
PRESIDENT PROFILE
ATUL SINGHPRESIDENT & CEO , COCA-COLA INDIA
o Atul Singh took over as the President & CEO, Coca-Cola India from 1st September 2005.
o Atul, holds a MBA degree from Texas Christian University.
o Prior to joining Coca-Cola, Atul worked for the Colgate Palmolive Company for 10 years
COCA – COLA INDIA’S PORTFOLIO OF BEVERAGES
FAST COMPETITOR
CUSTOMER SERVICE OVERVIEW
Product
Service
Support
Call Types CSR
Distribution
Repair
Customer
Support
Customer or
Consumer
STAKEHOLDERS
CULTURE
One Company
One Team
One Passion
Coke Family
NEED OF KM
o The only way for employers to get to each of their performancesis an improved technology in delivering to them properknowledge management.
o Create the need for them to rely on the system so the industryattains an increase in profit and production.
o It provides employers and business owners to widen theirunderstanding when it comes to managing their employees.
o It does not only mean the mere understanding of what theyhave to do for the company but it’s more about providing themwith the proper technology and help them enhance skills andbecome more of an asset to the company than a liability.
INITIAL SET UP OF KM
o The company management has developed processes and structureswhich have enabled this effective performance.
o One key element of success is decentralization, which creates anenvironment where managers are given responsibility and areresults driven.
o The policy of appointing local management wherever possible alsohelps the company best adapt to local conditions.
o At the basis of this decentralized structure, there is the principle thatthe people closer to the problem are closer to the solution.
o The strength of a multinational company over a smaller company isthe knowledge each part of the business has developed over time,which can be used by others in the organization.
o There are few formal mechanisms for knowledge management.
o The main tools used at coca cola are the intranet, the appraisalmeetings/business reviews, and informal networks.
INITIAL SET UP OF KM Contd…
o It is understood that every framework developed by the companybegan as a thought in the minds of the employees.
o Thus, the Coca Cola Company had flourished into a multinationalcorporation because of the tacit knowledge of the employees.
o The knowledge management of Coca Cola has a deep relationshipwith collaboration.
o It partake the nature of not just a system but a huge network wherethe people within the company can communicate with thecompany network based in a different country.
INITIAL SET UP OF KM Contd…
o This nature will help assess knowledge managers on how muchinformation must the company need to further their endeavors ofperfection and customer satisfaction.
o In executing their strategy, knowledge management is very usefulbecause it serves as a pattern or guide where certain areas aremarked as they deemed fit, or areas are being highlighted whichthey saw that needs for further improvement.
o It also serves as a strong pivotal point where company seeksassessment or gathers information to further expand the Coca ColaSystem.
IMPLEMENTATION OF KM
o Tacit knowledge among employees has helped the company createinnovations in their products.
o All it takes is to exhaust ideas and knowledge within the workplace.
o In order that this knowledge may be properly organized and putinto concepts, a good inter-personal relationship is essential thatthe tacit knowledge may be well put into conception.
o Output of which would very much depend on the needs of theemployees which means that the decisions are for them to makeon what technology to use.
o The strategy applied by the company is based from value chainsand force models.
o These tools have helped the company maximize and guide them intheir efforts to resolved future business reverses. And it isdefinitely very effective as the world has undergone a recession;the Coca Cola Company has stood still and still braving its waytowards success and perfection.
INTERNAL ANALYSIS OF KM
o It is strongly suggested to take credit on every reviews being putunder the company .
o This must not be taken for granted, but instead be recorded on thecompany database for future reference or as a guide to helpdevelop a system to improve and at the same time would attend tothe needs of the customers.
o The company is quite sensitive to culture and reputation both ofthe supplier and customer because of their pursuit of bringingbrighter and better innovation to the public consumer.
o They also believe that feedbacks are created to meet the demandsand needs of the customers.
THE ACCOUNTING SYSTEM OF THE COCA COLA COMPANY
o There are three types of bottling relationships at Coca Cola:
Bottlers that the company has no ownership interest; Bottlers that the company has a controlling ownership interest; Bottlers that the company has non-controlling ownership interest.
o Bottling partners are authorized to manufacture and packageproducts.
o Being able to manufacture primarily is advantageous in thecompany’s part in acquiring controlling interest in a bottlingoperation.
o By owning the controlling interest, the company helps in theimprovement of their information system.
o This is when the accounting system and the need for suchtechnology arise.
o The intranet system as part of the knowledge management guidesvery well the information system needed for accounting(The Coca Cola Company, 2006).
TECHNOLOGY USED
o The intranet system is the use of latest technology into the company.
o The employees are helped not only in honing their skills but alsohelped the company improve better communication among bottlingpartners and the company itself.
o This intranet strategy will help improve the relationship of thebottlers because of the network created between them.
o Knowledge management will provide them with facts and points onhow greatly serve customer satisfaction.
o The bottlers are they key source from which knowledgemanagement can acquire data, since the bottlers know thecommunity very much and they are considered as the basic unit ofthe whole Coca Cola System (1999).
TECHNOLOGY USED Contd…
o The future of Coca Cola’s success lies on improving their informationtechnology.
o Through the advance Electronic Data Interchange (EDI) technologieswhich are implemented into the company's information system, theemployees can easily access to the operational information, such asconsumer information, sales, and promotions.
o This enhances the employees‘ knowledge and increases theirresponsiveness to the customers.
o This type of advanced enterprise content management technologyenables corporations to repurpose valuable assets, as well asimprove efficiency, speed, continuity and collaboration in a way thatgives them a competitive advantage.
TECHNOLOGY USED Contd…
o To deliver an integrated digital library, Coca-Cola created an easy-to-use user interface that is sophisticated enough to communicate withThe Coca-Cola Company's various servers, databases, and existingarchives.
o The user interface, for example, is simple enough to performsearches based on keywords. Users can easily search multiplerepositories with one query and search actual content or words.They also can separate the actual object from the importantmetadata attached to it.
SUCCESS STORY OF COCA – COLA KM
The Coca-Cola Company and IBM Create Unique Digital Media Management System
o IBM and The Coca-Cola Company announced that Coca-Cola isleveraging IBM's most advanced digital asset managementtechnology to create a powerful resource for managing archivalinformation.
o The new Coca-Cola digital media system makes a century's worth ofcorporate marketing and advertising icons available at the desktopthrough a worldwide internal network, allowing Coca-Colaemployees to more easily access and use the material for futureprojects.
o This new system combines distinct libraries of text, still images andvideo to build an integrated digital archival library, which is thenmade available as a business tool to Coca-Cola associates in morethan 200 countries.
SUCCESS STORY OF COCA – COLA KM
o The new digital management system currently includes tens ofthousands of video clips, photographs, and many of The Coca-ColaCompany's most famous marketing and advertising icons.
o The Coca-Cola digital archives are built on a foundation of IBM'sContent Manager, Lotus Notes and Lotus Domino software.
SUCCESS STORY OF COCA – COLA KM
o HOW IT WORKS – For example, if a Coca-Cola advertising team is working on a
new "holiday'' campaign, a team member can search the DigitalArchives for "holiday'' or "Christmas'' or "Santa Claus'' ads, andpull up the entire spectrum of print and video advertisementscreated on the subject.
The team member can search for many topics across differenttypes of data sources simultaneously through a specifickeyword, a year, a brand, an image, or even a specific string oftext.
o "More Than A Retrieval System'' "It is one of the first corporations to move an entire advertising
and brand history to an online Digital Media environment,'' saidDick Anderson, general manager, Digital Media Solutions, IBM.
SUCCESS STORY OF COCA – COLA KM
o "More Than A Retrieval System'' Contd…
The growth of e-business is increasing the need for companiesto manage and distribute digital content, including images,computer-generated output, business documents, and richmedia.
In fact, studies show that; More than 85% of today's business information resides in
sources beyond traditional databases. Less than 5% of that content is digitized.
REVENUE UPLIFT THROUGH KM
o Financial Condition Analysis According to Jain (2004), a businessexpert, the Coca-Cola Enterprises experienced their first annualprofit since 1991.
o Their profit was 3.03€ million compared to a lossof 12.11€ million in 1994. Their three years of losses totaledover 151.37€ million with their largest in 1993 at 105.2€ million.
o Coca-Cola's sales volume increased for the second consecutiveyear with an 8% increase over 1994 totaling 176.19€ million.Their stock price nearly doubled over the previous year with aclosing market price of 3.25€ in 1994 and a closing market priceof 6.43€ in 1995.
o The earnings per share for 1995 were 0.01 per common sharecompared to a net loss of 0.36€ in 1994.
REVENUE UPLIFT THROUGH KM
o Throughout 1995 Coca-Cola also embarked upon and continuedvarious programs to cut costs and increase revenues.
o The company succeeded, by decreasing their operatingexpenses by 4% in 1995.
o Operating income was double 1994's at 45.64€ million anda 6.81€ million decrease was achieved in Selling, General andAdministrative expenses.
REVENUE UPLIFT THROUGH KM
o Conclusions and Recommendations Through 1995, the companydeveloped a multi-year initiative, Project MAX, that pursuessuperior customer responsiveness, quality and efficiencyaltogether.
o The company is focused on flexibility, reliability, quality andcosts. Its task is to increase the responsiveness of the customers'needs, while producing the highest quality products at thelowest cost.
THANKYOU
