pepsi taha

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Table of Contents

1. History of Pepsi Cola2. Formation of Pepsi Cola Corporation

3. Reformulation of Pepsi Cola syrup formula4. Formation of Pepsi Cola incorporation5. Setup of Pepsi Cola6. Pepsi Cola Multan7. Mission of Company8. Slogans through time9. Major Competitors10. Coca Cola Mission Statement11. Coca Cola Objective12. Pepsi Today13. Business Envoronment

14. Marketing Mix15. Strategic Marketing16. Organizational Culture17. How new employees learn culture in Shamim & Co.18. Reasons of popularity of Pepsi Cola in Pakistan19. Consumer Requirement20. Market segmentation & Target Marketing21. Pepsi Cola Products22. Pepsi Cola Ingredients23. Pepsi Cola brand list24. Future Planning

25. Latest Market share statistics26. Shamim & Co Pvt Ltd27. Organization Hierarchy28. Distribution Channels29. 8 steps of Pepsi Cola Sales30. Swot Analysis31. Competitive Priorities32. Decision Making in Shamim & Co33. Organization Structure34. Shamim & Co Departments35. Administration Department

36. Sales/Marketing Department37. Finance Department38. Human Resource Department39. Production Department40. Shipping Department

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41. MIS Department42. Cash Department43. Accounts Department44. Excise Department45. Post Mix Department46. Inventory Management47. Supply Chain Department48. Capacity. Location & Layouts49. Forecasting50. Material Requirement Planning51. Quality Control52. Problems53. Recommendations for Company

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INTRODUCTION

HISTORY OF PEPSI COLA

In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins

experimenting with many different soft drinks. In 1898, one of Caleb's formulations,

known as "Brad's Drink" a combination of carbonated water, sugar, vanilla, rare oils and

cola nuts, is renamed "Pepsi-Cola". On August 28, 1898, Pepsi-Cola received its first

logo.

In 1902, he applied for a trademark with the U.S. Patent Office, Washington D.C., and

formed the first Pepsi-Cola Company. 1905, Pepsi-Cola's first bottling franchises were

established in Charlotte and Durham, North Carolina. In 1906, Pepsi gets another logo

change, the third in eight years. The modified script logo is created with the slogan, "The

Original Pure Food Drink". In 1920, Pepsi theme line speaks to the consumer with

"Drink Pepsi-Cola, it will satisfy you". In 1923, Pepsi-Cola Company was declared

bankrupt and its assets were sold to a North Carolina concern, Craven Holding

Corporation, for $30,000.

FORMATION OF PEPSI COLA CORPORATION

Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and good will

from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation. In

1928, after five continuous losing years, Megargel reorganized his company as the National

Pepsi-Cola Company. In 1931, U.S. District Court for Eastern District Virginia declared

the National Pepsi-Cola Company bankrupt, the second bankruptcy in Pepsi-Cola history.

REFORMULATION OF PEPSI COLAS SYRUP FORMULA

The Loft candy company acquired the National Pepsi-Cola Company. Charles G. Guth,

president of Loft, assumed leadership of Pepsi and commanded the reformulation of Pepsi-

Cola syrup formula.1934 was a landmark year for Pepsi-Cola. The drink was a hit and to

attract even more sales, the company began selling its 12-ounce drink for five

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cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuted in

Baltimore, where it was an instant success. The cost savings proved irresistible to

Depression-worn Americans and sales skyrocket nationally. In 1941, The New York Stock

Exchange traded Pepsi's stock for the first time. In 1964, Diet Pepsi, America's first

national diet soft drink, debuted. Pepsi-Cola acquired Mountain Dew from the Tip

Corporation in 1964.

FORMATION OF PEPSI COLA INCORPORATION

In 1965, Expansion outside the soft drink industry began. Frito-Lay of Dallas, Texas, and

Pepsi-Cola merged, forming PepsiCo, Inc. Pepsi Cola Company operates in beverages

industry. Pepsi Cola international is well reputed multinational company which is doing its

business in almost every country of the world. The company is registered in New York

stock exchange U.S.A. to make a better control over the business the company has given

the manufacturing rights to different companies. Now these companies are producing the

products on the behalf of the company by using companys trademark. To maintain their

goodwill in the market the company has a strict policy of granting manufacturing rights.

Pepsi Cola have standardized products all over the world (e.g. same in size, shape and

quality). The franchises have to follow all the standards given by the company.

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SETUP OF PEPSI COLA

The head office is situated in New York (USA) with

units operating in different regions of the world. These are

called Business Units and Pakistan is in MENAPak (Middle

East, North America and Pakistan). The head office of

MENAPak is situated in Dubai (UAE). The local head offices

for each country are situated in the respective capitals.

PEPSI COLA MULTAN

Pepsi Multan was incorporated in 1963 but it started its production in 1967. Allah Nawaz

Khan Tareen (Ret. DIG) got license of 7-UP. But in 1973, it became Pepsi Cola franchise.

Now a day MD of Pepsi Cola Multan is Alamgeer Khan Tareen son of Allah Nawaz Khan

Tareen. At start Pepsi Multan was having only one production plant made

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by Netherlands. and was only producing 7-Up because it was the only brand produced by

Parent Company. In 1973, PEPSI acquired 7-Up in Canada so the Multan franchise started

producing PEPSI and Marinda along with 7-Up & became PEPSI franchise.

Coke was already operating in the market at the time when Pepsi Multan established. At

that time Coke was market leader but with the passage of time Pepsi Multan kept on

focusing on gaining the market share. Recently Pepsi has launched a new brand with the

name of Mountain Dew. Now Pepsi Multan is working with five production plants capable

of producing 100,000 cases per day. Installation arrangements for two new plants are in

process. The plant which was installed at the time of establishment has now been grounded.

Pepsi Multan is currently market leader with more than 80% of market share.

The company is properly serving all these areas with quality products. PEPSI Multan is not

an ISO certified company because it is an international drink having their own standards

and there is no export.

MISSION OF COMPANY BY AKIF AKBER

We aspire to make Pepsi Company the worlds premier consumer Products

Company, focused on convenient beverages. We seek to produce healthy financial

rewards for investors as we provide opportunities for growth and enrichment to our

employees, our business partners and the communities in which we operate. And in

everything we do, we strive to act with honesty, openness, fairness and integrityOur Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in

which we operate - environment, social, economic - creating a better tomorrow than

today."

Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder value

by making PepsiCo a truly sustainable company.

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Performance with Purpose

At PepsiCo, we're committed to achieving business and financial success while

leaving a positive imprint on society - delivering what we call Performance with

Purpose.

Our approach to superior financial performance is straightforward - drive

shareholder value. By addressing social and environmental issues, we also deliver on

our purpose agenda, which consists of human, environmental, and talent sustainability

Slogans through Time

Pepsi-Cola has different slogans through its history. They remained much known. These

are given below. This is also an important part of Pepsi-Cola.

1898 Brad's Drink

1903 Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All Thirsts - Pepsi: Cola

1919 Pepsi: Cola - It makes you Scintillate

1920 Drink Pepsi: Cola - It Will Satisfy You

1928 Peps You Up!

1929 Here's Health!

1932 Sparkling, Delicious

1933 It's the Best Cola Drink

1934 Double SizeRefreshing and Healthful

1938 Join the Swing to Pepsi

1939 Twice as Much for a Nickel

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom

1949 Why Take Less When Pepsi's Best?

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1950 More Bounce to the Ounce

1954The Light RefreshmentRefreshing Without Filling

1958 Be Sociable, Have a Pepsi

1961 Now It's Pepsi for Those Who Think Young

1963 Come Alive! You're in the Pepsi Generation

1967 Taste that Beats the Others Cold, Pepsi Pours It On.

1969 You've Got a Lot to Live, Pepsi's Got a Lot to Give

1973 Join the Pepsi People Feeling' Free

1976 Have a Pepsi Day!

1979Catch That Pepsi SpiritTake the Pepsi Challenge

1981 Pepsi's Got Your Taste for Life

1983Pepsi Now!

1984 The Choice of a New Generation

1987 America's Choice

1989 A Generation Ahead

1992 Gotta Have It

1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi

1997 Generation Next

1998 Same Great Taste

1999 The Joy of Cola

2000 The Joy of Pepsi

2003 Pepsi. It's the Cola

2005

2010

Dare for more

DUNYA HAI DIL WALUN KI

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MAJOR COMPETITOR:-

Pepsi Cola major competitor is Coca Cola in all over the world,

PEPSI TODAY HAFIZ USMAN

An Overview

PepsiCo Inc. is among the most successful consumer product companies in theworld with annual revenues of $24 billion and approximately 140,000 employees.Some of PepsiCo's brand names are nearly 100 years old but the corporationremains relatively young. PepsiCo Inc. was founded in 1965 through the merger ofPepsi-Cola Company and Frito-Lay Inc. PepsiCo divisions operate in two majordomestic and international businesses: beverages and snack foods.

Through our divisions PepsiCo has achieved a leadership position in each of thesebusiness segments: we are world leaders in beverage bottling and we are the world's

largest producers of snack chips.

PepsiCo has achieved a continuing record of growth. This record is based on highstandards of performance, distinctive competitive strategies which are superblyexecuted, the personal and professional integrity of our people, business practicesand products.

Today, there are more than 400 Pepsi-Cola Bottlers in the US and more than 600

internationally. The product is sold in approximately 200 countries and territories.

SAQIB ALI

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ORGANIZATIONAL CULTURE

The culture of Shamim & Co. is differentiated with the other Beverage

Companies on the basis of following key characteristics;

INNOVATION & RISK TAKING

The companys emphasis over innovation and risk taking is much

higher than the competitors.

ATTENTION TO DETAIL The companys employees exhibit precision,

analysis, and attention to detail. Due these qualities, the overall performance

of the company is appreciated and very well managed.

OUTCOME ORIENTATION

The management of Shamim & Co. focuses on results or outcomes

rather than on the techniques and processes used to achieve these outcomes.

The company got Mega Plant status in 2000, 2001, and 2002 due to this

characteristic.

PEOPLE ORIENTATION

The decisions made by the management of Shamim & Co. take into

consideration the effect of outcomes on people within the organization.

TEAM ORIENTATION

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The work activities in Shamim & Co. are organized around teams

rather than individuals. One of the companys executives says that they do

follow the policy of TEAM which is de-abbreviated as Together,

Everyone, Achieves, More.

AGGRESSIVENESS

The employees of Shamim & Co. are always willing to accept the

challenges and aggressive to accomplish the tasks assigned and competitive

rather than easygoing.

STABILITY: Some areas of working relationship between the employees are

kept in status quo in contrast to growth like socialization etc.

HOW THE NEW EMPLOYEES OF

Shamim & Co.

LEARN CULTURE

Shamim & Co.s Culture is transmitted to new employees in a number

of forms, the most potent being;

STORIES

RITUALSMATERIAL SYMBOLS

LANGUAGES

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STORIES

One of the most important ways of transmitting the culture to new

employees in Shamim & Co. is stories. Old employees of the company carry

those stories about the people who had worked with the organization. They

are well familiar with the past experiences and their outcomes. They either

frighten them or give them courage to follow or not the procedures set by the

company. The old bosses of the department brief new comers how they should

have to perform their duties and what are the norms of the company which

cannot be violated. For example Mr. Asif is the In charge of MIS Department

of Shamim & Co., he is responsible for the initial training of the

new comers. He gives them all the details regarding the Department, and

Organization. He tells them about the decorum of the office and likely

behavior to be pretended.

RITUALSAnother important factor of transmitting the culture to new employees

is rituals. Some activities are considered to be the understood activities like

the break for Namaz-E-Juma. As the members of Shamim & Co., are regular

prayer sayings, so a break for the prayer is understood and nobody is

compelled to do any office work during the break. Also there is a company

policy in Shamim & Co., that is to give 15 days annual recreational holidays

with pay. Anybody who wants to go for those holidays, he can go with the

consents of his boss.

MATERIAL SYMBOLS

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Another motivational cultural approach is to give due position to the

employees who deserve that position. In Shamim & Co., the top executive like

Mr. Aamir Hameed GM Sales, has been given a chauffer-driven Honda Civic

Car, a latest Laptop, Unlimited use of mobile phone, a well furnished

house, one Umera per year, free cold drinks up to 200 c/s. and a very

handsome salary package. So the material symbols like these facilities also

show the best cultural values and motivational tactics for the new comers and

for those persons who work hard in the organization.

LANGUAGE

The employees of Shamim & Co. have a formal way of behaving to

each other. They talk formal like Sir even to their co-workers. They respect

each other all the way to share the respect. Hence use of formal language is

also key to learn the culture in Shamim & Co.

Reasons of popularity of Pepsi in Pakistan

There are certain reasons for this dominance.

1. Aggressive bottlers.

The pepsi bottlers were more aggressive in their policies and

strategies than that of their competitors. COKE ignored this

region because the share they were getting from this region was

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less than nominal, providing pepsi an opportunity to grow up

and capture the market.

2. Anti Jew Movement.

Because of the Arab Israel war, the Arab countries

decided to boycott the Jew products. So they boycotted the

COKE. It opened the gates of success and opportunity for the

pepsi.

3. Environmental factors.

Cold conditions in western societies influence people to

use things with bitter taste like beer and coffee, therefore they

like COKE as compared to pepsi because the contents of coke

are bitterer. In Pakistan people are more inclined towards

sweeter taste therefore they like pepsi.but due to above

mentioned conditions, the life span reduces to only a week.

Company therefore advises the shopkeepers to keep the stock

under sheds but if they can't then they should sell it within a

week time.

ACHIEVEMENTS

Last year Pepsi Cola Multan showed their best ever performance of product growth rate in

the Asian Zone and stood fourth in the Asia. Recently last month Pepsi Cola Multan won

the Pakistan quality contest by securing first position. As compared to last year their

production capacity has increased to 100,000 cases per day in peak season.

PRODUCTSPEPSI COLA

Pepsi cola is their most successful brand with most of the market share .In Pepsi they are

producing following brands

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250 ml

500ML

1000 ml

1500 ml

2000ML

7-UP

7-Up is also popular in old age group of people. 7-Up is a lemon lime drink. In 7-Up they

are producing following brands

MIRINDA

Mirinda is the most popular drink in teenagers. In Mirinda they are producing following

brands

250 ml

1000 ml

1500 ml

MOUNTAIN DEW

Pepsi cola has recently launched a new product in Pakistan known as Mountain Dew which

is now a days most popular cold drink amongst adult group. In Mountain Dew they are

producing only one brand 250 ml bottle.

Frito-Lay Brands

Employing over 48,000 people and bringing in over $13 billion of business, Frito-Lay

invigorates PepsiCo's portfolio of products with plenty of good food and 'good fun'.

LAYS 10,20,15,30,50,80 RUPEES

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Frito-Laybrands: North America is the $13 billion convenient foods business unit of

PepsiCo. For more than 75 years, Frito Lay has enjoyed growing the best snacks on earth

starting with simple, farm-grown ingredients.

To continue growing the best snacks on earth, they are working to reduce their impact onthe environment by improving how they make their snacks.

Frito-Lay is also dedicated to giving consumers a wider range of healthier choices. They

offer great-tasting chips with less fat through their Baked! line and snacks made only from

natural ingredients, which contain no artificial colors, flavors or preservatives with their

Natural line. All of their snack chips contain 0 grams of trans fat.

ENERGY DRINK STRING

Pepsico has now entered the energy drinks market by launching Sting in Pakistan

recently.Sting is launched in two flavors Gold Rush and Berry Blast at a price of Rs.

60. The product is widely distributed and pretty much available everywhere. The

highlighting factors are that it tastes better, it is priced much lesser than the competition,

easily accessible and that it provides a timely boost of energy that keeps you going in your

busy life in a balanced way.

PEPSI INGREDIENTS:-

WaterAt least 86% of soft drink is purified water. In the case of diet soft drinks watercomprises around 96%.

Sweeteners

Such as sugar (sucrose from sugar cane) or non-nutritive sweeteners. Sugar is usedin Pepsi, 7UP, Mountain Dew and Mirinda. The most popular and most widelynon-nutritive sweetener used is Aspartame. NutraSweet is the

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registered trade name and it is used in Pepsi Light, Diet 7UP and Pepsi Max.Aspartame, being 200 times sweeter than sugar, is used in very small quantities.Other non-nutritive sweeteners permitted are acesulphame potassium, thaumatin,saccharin and cyclamate. Pepsi Max and Pepsi Light use a dual sweetenersystem, aspartame and acesulphame potassium. The latter is 300 times sweeter

than sugar, requiring even less to sweeten the soft drink. Shelf life of the

product is extended, as, unlike aspartame, acesulphame potassium does not loseits sweetness over time.

FlavoursPepsi uses flavors to develop characteristic tastes associated with our beverages.These come from a variety of sources; natural, artificial and nature identical. Theyare usually derived from a number of ingredients used in special combinations.Examples of flavors used in the manufacture of soft drinks include naturalflavorings from Kola nut, and fruit. Food acids and bittering agents such as citric,phosphoric acids and caffeine are also flavoring substances.

Our products and the flavors used in those products are safe and suitable, but theyare proprietary.

Carbon DioxideEffervescence gives soft drinks their special bubbly appeal and is addedDuring production by injecting C02 into the product on the way to the filler.

ColorsColors are added to Pepsi Cola products to enhance the esthetic appeal and

appearance of products whether they are the typical brown of our colas or theyellows of Mountain Dew.

These may be both natural and artificial.

Natural colors or colors sourced from natural materials. Many countries haveregulations that specify certain colors as natural. These colors are referred to as"natural colors."Synthetic (or artificial) colors. Internationally there are many colors that areaccepted.

PreservativesCertain preservatives are used in soft drinks to ensure microbial stability andprevent spoilage

Pepsi Cola Brands List:

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Pepsi-Cola

Caffeine Free Pepsi

Diet Pepsi

Caffeine Free Diet Pepsi

Pepsi Twist (regular & diet)

Wild Cherry Pepsi

Pepsi Blue

Pepsi ONE

Pepsi Vanilla

Diet Mountain Dew

Mountain Dew Code Red

Diet Mountain Dew Code Red

Mountain Dew LiveWire

Mountain Dew Blueshock

Mountain Dew AMP energy drink

Mug

Sierra Mist (Regular & Diet)

Slice

Lipton Brisk (Partnership)

Lipton Iced Tea(Partnership)

Dole juices and juice drinks (License)

FruitWorks juice drinks

Aquafina purified drinking water

Frappuccino ready-to-drink coffee (Partnership)

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Starbucks DoubleShot (Partnership)

SoBe juice drinks, dairy, and teas

Sobe energy drinks (No Fear and Adrenaline Rush) Outside North America

Mirinda

7UP (International)

Pepsi Limn

Kas

Teem

Pepsi Max

Pepsi Light

Fiesta

D&G (License)

Mandarin (License)

Radical Fruit

FUTURE PLANNING

The company operates through a well experienced, loyal and hardworking

employees. The first and the most basic plan it to train them according to thechanging technology and computerized environment, and satisfying their needs andrequirements. Upgrading the plant structure and installation of the new machineryare other plans. The company is planning to increase its sales force and developmentin its infrastructure in the coming time period.

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LATEST MARKET SHARE STATISTICS

Latest market shares of brands are given below

BRAND NAME MARKET SHARE

Pepsi 60 %

7-UP 22 %

Mirinda 9 %

Mountain dew 9 %

SHAMIM CO. (PVT.) LTD.District Cover by Shamim & Co.

1. Multan A Zone

2. Multan B Zone

3. Multan C Zone

4. Multan District

5. Multan Outskirts

6. Khanewal

7. Mailsi

8. Vehari

9. Muzafar Garh

10.Leiah

11. D.G. Khan

12.Sahiwal

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13.Okara

14. Bahawal Pur

15. Ahmad Pur

16. Bahawal Nagar

17. Haroonabad &

18. Rahim Yar Khan

As for as products are conserved, company is offering (under given) products in themarket. The details are as under,

Now we are going to discuss the Stock Keeping Units (SKUs).

Stock Keeping Units (SKUs)

1. SSRB This stands for Single Serving Returnable Bottle (Regular)We are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.

2. LRB This stands for Liter Returnable Bottle this includes Pepsi, Mirinda& 7-Up. We are not offering Mountain Dew in this class.

3. Pet Bottle (1.5 Liter)This includes Pepsi, Mirinda & 7-Up. This group also does not haveMountain Dew in their family.Here Diet Pepsi & 7-Up are also available to enlarge the range of group.

4. NRB This stand for Non Returnable Bottle. It can also be called asDeposable

It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi& Diet 7-Up.

5. Cane Packing, we are offering cane packing of all that brands that areoffered in SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.

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6. Post Mix This includes Fresh / Fountain. This group includes Pepsi,Mirinda, 7-Up & Mountain Dew. This facility is offered on QSR thatstands for Quick Serving Restaurants and all those points where no ofwalk-in-customers in very huge with their short time stay at that point.

Pepsi Cola International is a large group covering KFC, Pizza Hut,

Burger King, Lays Potato Chips & Aquafina (Mineral Water).

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ORGANIZATION HIRARCHY/CHAIN OF COMMAND:-

ManagingDirector

General ManagerTechnical

General ManagerSales

General ManagerFinance

General ManagerOperations

Manager

Production

Manger Sales &

Marketing Manager MIS Manager Admin

Manager PersonnelManager FinanceManager Research

& SISManager Quality

Control

Manager ShippingManager Account

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Distribution Channel

The company operates through a well-established network of a number ofdistributors. The company has two types of delivery systems i.e.

Direct delivery system

Indirect delivery system

The basic difference between the direct and the indirect delivery system isthat in a direct distribution system, the company spends its own resourceswhile in a indirect distribution, the dealers spends their own resources on allthe factors which increased the sale. The company also has its depots in

different cities. Which helps a lot in increasing its sale and directing thedistribution system.

8 Steps of Pepsi Sales:

Our company is very conscious about the development and growth of ouremployees especially the sales force. We have designed a 8 step process forproper guideline of our sales team just to make their sales calls effective

and result oriented. There steps are as follows,

1- Preparation

2- Greeting

3- Stock Checking

4- Merchandising

5- Presentation

6- Order taking

7- Curb side de-briefing evaluation

8- Administration

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1) PREPARATION

i. What are Objective

ii. What to do here

iii. How to do that

Simply where we want to go, & how to get our there.

2) GREETING

It includes greetings and hand-shake. Greet the customer by name & he willbe delighted should be keep in mind of every person involved in sales.

3) STOCK CHECKING(Stock Availability Store Checking)

This includes all the good e is dealing in this will help us to know about his

financial worth patented and clientage.

4) MERCHANDISING (Display)

Display of Visi Cooler

Display outside shop

Availability inside Deep Freezers

It is the most important job to be performed by our sales force.The order of our product in display should be like this

Top cane packing

Pepsi, 7-Up, Mirinda and Mountain dewThen

Non Returnable bottlesThen

Single serving returnable bottlesThen

Single serving returnable bottles (Regular)

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ThenLiter returnable bottles & pet bottles on the floor of visi coolers

Every sales person should be caring about the display

5) PRESENTATION

Policy

Scheme

Product availability

Total sales tack

6) ORDER TAKING

Taking Order

7) CURB SIDE DE-BRIEFING

Evaluation

8) ADMINISTRATIONS

CashEmptySales figure entry

Infection of stock

Company desired to increase its market share from 70 % to 80 % or Above. Thisis only possible if we

Retain our exclusive point

Explore new points

Increase sales of points

Increase stock at mix points

Conversion of coke points

Elimination of B- Brands

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As Pepsi cola Multan is producing standardized products so they have to maintain a fixed

cost. They want to lower per unit cost as well as the total cost of production.

QUALITYPepsi cola Multan is producing a standardized product because all the manufactured items

contain the same amount of the raw material required. So they want to maintain the quality

of products. They want to deliver high quality product according to international standards

given by Pepsi Cola International (PCI).

TIME

Pepsi Cola Multan meets its delivery-time promises i.e. The Company pays most attentionto delivery -on- time to satisfy customers & retailers needs on the time, which they want.

FLEXIBILITY

Pepsi Cola Multan does not focus the unique demand of customers & products are

standardized, So Company works for volume flexibility i.e. Company is able to accelerate

or decelerate the rate of production quickly to handle large fluctuations in demand.

OTHER CORE COMPETENCIES

Strong distribution network

Wide geographical coverage

Experienced engineers and sales staff

Quick customer response and feedback

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DECISION MAKING IN PEPSI COLA MULTAN

Decision making in Pepsi Cola Multan is influenced by the following factors which are.

AUTONOMY

Pepsi Multan is completely autonomous in strategy development. There is no concept of

dictation from country office rather sharing of policies is more evident. Country office does

not provide any financial resources, human resources or managerial competence to Pepsi

Multan. Involvement of country office is only up to the extent of creating advertisement &

publicity campaigns in which Pepsi Multan also contributes.

FORMAL COMMUNICATION CHANNELS

In Pepsi Multan, there is no concept of informal communication between lower level

managers & top executives. They have to follow proper organizational hierarchy to

communicate with top level managers. For example, Area Sales Manager cant directly

communicate to GM Sales. He will communicate with DSM which will in turn

communicate with GM Sales. This flow of communication leads to delay in decision

making, noise in information & misinterpretation.

BUREAUCRATIC MANAGEMENT STYLE

Decision making is highly centralized & ideas from lower levels are not welcomed. So idea

generation is not facilitated & top executives are responsible for developing strategies for

their own SBUs. This sort of arrangements restricts innovative strategies & lower level

participation in decision making.

FOMALIZATION: All the jobs are within an organization are standardized. Forall jobs SOPS are written & work accordingly to it

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ORGANIZATIONAL STRUCTURE

MANAGING DIRECTOR

He is the owner of this company and final operational authority to manage all departments

of the company. All departments heads are responsible to report him all about their

performances and matters.

GENERAL MANAGER / DIRECTOR FINANCE

He is responsible for overall operation of the facility. He is the overall GM of the facility

and he manages all the decision and strategies regarding Multan franchise and deals with

the country office problems.

GENERAL MANAGER SALES

G. Manager Sales is responsible for the performance of his department and to achieve the

objectives assigned to him such as marketing, sales, distribution. To carry out his duties

more efficiently he has four Regional Managers, 15 Area Sales Managers.

GENERAL MANAGER OPERATION

He is responsible for the whole administrative, shipping, workshop related activities to

smooth on the factory operations without any hindrances.

GENERAL MANAGER TECHNICAL

He is unlike Sales department performs key role as to manage Production Department

producing quality Products as per need of the sales department. Quality Control

Department also works under him.

GENERAL MANAGER FINANCE

Finance, Accounts and MIS departments work under his control. He is responsible to make

major company financial policies to meet the needs of the each and every department

regarding budgets etc.

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WORK SPECIALIZATION: All the task in the pepsi cola are formally divided, grouped,

& coordinated.

DEPARTMENTS

In order to properly control the operations there are following departments in the company

ADMINISTRATION DEPARTMENT

Administration department deals with the overall matters of the company and takes

different actions for increasing the performance of the company. This department also

carries out different social welfare programs.

SALES / MARKETING DEPARTMENT

Sale and marketing is the most important department of any beveragecompany. To maximize the sales and profit, this department should beproper planed and managed. Shamim Co. Pvt. has a very aggressive andhardworking Sales and marketing department. Due to its efforts thecompany has got the first position in sales in 1993 through out the Pakistan.

Following are the major contents of this department:

Marketing Development Tactical analysis and routine planning of market strategies.

Competition activity monitoring

T.O.T. management

Publicity management

Time management

FINANCE DEPARTMENT

It deals with the financial matters of the company. It collects the revenues and makes

different payments and maintains proper record of the financial performance of the

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companys business to show the net result in the form of either profit or loss. Finance

department consist of

Management Accountants

Cost Accountants

Accounting MIS Department

HUMAN RESOURCE MANAGEMENT

All hiring and firing decisions are done locally by the franchise. There is no involvement of

even Country Office. All decisions regarding pay scales, promotions, demotions and

increments are done by the franchise itself. All training arrangements are made by

franchise itself. All hiring is done through references there is no concept of jobadvertisement in Pepsi.

PRODUCTION

This department is responsible for the production of the products according to the

requirements of the customers. Production department have to manage the inventory of all

types. Currently they are having five production plants and all of them are automated. Now

they are planning for the installation of three new plants. Mostly they go for importing their

production plants from Italy, Germany and Netherlands. Previously they used to purchase

Ammonia for cooling purposes but recently they have installed an Ammonia plant with in

their own premises. Now they purchase CO2 for the production of Ammonia gas.

Regarding the use of management information systems, they are shifting their production

record from manual system to computerized system. Production department can be divided

into sub departments which are

Quality Control Department

Quality control department is responsible for checking the quality of the product.

After every 3 hours a quality check report is presented by this department to the

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production manager and GM technical. In case of any problem with the quality,

after every half an hour quality is checked.

Technical Department

Technical department is responsible for any technical assistance needed in case ofany plant problem. They also maintain the spare parts inventory which is used in

case of nay breakage or malfunctioning of plant part.

Procurement Department

This department is responsible for any assistance needed to purchase the technical

parts. In case of any purchase of plant or any part of the plant they help the

purchase department for purchasing the right part.

PRODUCTION PROCESS

Company is having flexible production plants. Company can change production according

to demand fluctuations. Process is same for all products i.e. Pepsi Cola, 7-up, Mirinda and

Mountain Dew. No plant is fixed for a specific product.

1st STAGE (GETTING TREATED WATER)

Lime, Farris Sulphate (for iron) & chlorine are added to raw/hard water & it goes in

chemical tank where carbonate and bi-carbonate are settled down, & they get treated/soft

water.

2nd STAGE (PREPARATION OF SIMPLE SYRUP)

Simple syrup is made by mixing up sugar into water after pasteurization of water at 80 C.

After some time, this simple syrup is filtered & then cooled down at 19 C. Water is boiled

at normal temperature like 32 C to 35 C to kill germs.

3rd STAGE (PREPARATION OF FINISHED SYRUP)

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Now this simple syrup goes into syrup storage tanks. Concentrate & flavor are added to

simple syrup & it is called finished syrup.

4th STAGE (WASHING EMPTY BOTTLES)

Empty returned bottles pass through steam under 57 C to 77 C, and then those bottles aredried. This stage takes 45 minutes. Now bottles are washed by Caustic-Soda, TSP and

water. Now a light-test is conducted for washed bottles, where the bottles pass through a

light.

5th STAGE (FILLING SECTION)

Now finished syrup & treated water come to Carbo Cooler in which NH3 (Ammonia) chips

are used for cooling purpose. CO2 gas also comes in Carbo Cooler. After a flow-mix in

Carbo Cooler, the resultant drink comes into filler where empty washed bottles are filled.

6th STAGE (CROWN FITTING)

Now bottles come to Crowner where they are crowned and then bottles pass through a light

test to have a check for over filled, under filled or any deficiency.

7th STAGE (PACKAGING)

After passing through packager, the boxes of bottles are packed.

SHIPPING DEPARTMENT

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Shipping is a very critical area for any beverage organization. It serves therole of coordinator or middleman between production and sales. Ensuringappropriate quantity and on time availability of empty & liquid stock isutmost important. Any malfunction in empty receiving, storage, supply toplants, liquid stock and distribution directly affects sales. This is a completechain or cycle and any weak link, bottle neck or disturbance will slowdown

the whole operations.Shipping department has following main functions.

RECEIVING & STORING NEW OR USED EMPTY

SUPPLY OF EMPTY TO PLANTS

Shipping department has two godowns for empty storage. These aregodown No.1, No.2

PEPSI TOWN

Due to shortage of space in godown # I, empty is unloaded at godown # 2 orsent to PEPSI town. This empty is returned when storage space becomesavailable at godown # I. Empty is supplied to plant when required byproduction people in specific quantity. the delivery is through forklifts.

Daily production report.

Report Product Loss Dirty Return To

Sign of production office

FINISHED GOODS STORAGE

Finished goods storage should be secured against sunlight, rainfall,moisture and other intimidation.

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Issued on FIFO (first in, first out) basis via validity of production dates. Itensures that product is not expired, bad taste and visually unattractive.

Shift wise record of daily transactions is maintained.

These are physical stock taking for physical but not for expiry dates.

HANDLING & PACKAGINGForklifts are used for transferring FG shellsIcases from production area toshipping hall or not delivery ducks to ensure product do no get damaged.

All Pepsi Cola carbonated soft drinks are packed in glass/PET bottles or postmix tanks. This is called primary packaging. Filled glass/PET bottles are furthersecured by means of plastic or wooden shells/cases called secondary packaging.

TECHNOLOGYManagement Information System (MIS)

In today's fast moving business environment, organizations are rapidlymoving towards computerization and information systems.

In this era of rapid of frequent changes, it provides current, reliable andaccurate information to the management. This information is very useful indecision making. Information systems are generally defined as the systemwhich provide regular and current information to management for decision

making.

MIS department of Shamim & Co. is playing a vital role in this regard. Thedepartment is working with a small setup & satisfying the informationrequirements the organization with a smart staff and developed setup, thedepartment has eliminated much work load, paper work and saved a lotprevious time.

The software system have two basic parts and these are developed in someprogramming language. The post important part of any information system

is database. The database is the basic structure of data and defines how datais organized, stored and retired from memory. The database operates at theback end. At the front end, data is entered and retired through input screens.

The MIS department is currently performing its day-to-day operations aswell as involved in software development. It also provide technicalassistance and training to other departments. At the time oracle 8.0 is in

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execution. All computer in the department are networked by LAN (localarea network) the department has licensed software working.

The following systems are working in the department.

Plant Efficiency System:

The system is designed to keep current information about what is going on

in production & plants. The system is helpful in getting production figuresand reports about line utilization, line efficiency, mechanical efficiency,employee code, name, basic salary, allowances, tax, net pay and any otheradjustments supplied by time office.

Sales & Distribution System:

The most comprehensive system of MIS is sales and distribution system. Itincorporates

Sales system

Cash system

Shipping system

Post mix system

The basic input of this system is empties slip, liquid out slip, full in slip byorder sips. empty short slip, the reports of the system are

load report ( dealer wise, depot wise )

settlement sheet ( dealer wise, depot wise )

Shipping shift summary .

Daily liquid out report.

Pending report.

Agent wise load out summary.

Agent wise sales summary .

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District wise sales summary .

Computerize sales statements

(monthly, semi annually, annually)

Cash report

Filled inspection, breakage, actual production, paid time, stoppage,production time etc.

Excise And Sales Tax System:

Shamim & Co. is a regular tax payer of govt. of Pakistan. it pays excise and

sales tax according to its production and sales. the system is developed tokeep complete record of the tax transactions. stock of the product at the RGI is maintained after production. the stock is moved to DP (duty paid)godown after its clearance by excise inspector and payment of 15 % tax. atRG I, closing stock of a day is opening RG I stock plus day's productionand minus tax clearance.

Payroll System:

There is separate payroll system for Shamim & Co. and Friend's Agency.The output of the system is pay slips and payroll report at the end of month.Payroll report incorporates.

All these reports are extremely important in the day-to-day operations ofthe abovementioned departments. In addition, customized reports can beobtained as required. The system is implemented at each depot as well.

CASH DEPARTMENT

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Cash department does cash handling (collection and payment). The majorpart of cash collection is from dealers and salesman based on theirsettlement sheet and daily sales report. Cash payment is done on thevouchers issued by accounts department. Payments include employee's pay,bills, allowances, procurement expenditures and day to day generalexpenses.

AUTO WORKSHOP

The function of auto workshop department is top provide repair,overhauling and maintenance services to the vehicles used in theorganization. These vehicles include Mazda, Toyota, Hino, Suzuki, Hondaand forklifts (Toyota, TCM) of different models and capacity. Total numberof vehicles served by the auto workshop is about 140. the responsibility ofauto workshop is to keep PEPSI fleet efficient, deendable and energetic.

Different departments particularly shipping and sales use these vehicles.Vehicles outside # are mostly used by sales staff. In case of some majorwork, it comes to workshop however if there is nominal repair work, they

have it done locally. The staff of the department consists of 20 personsincluding mechanics. Record keeper, supervisor and headed by auto0workshop manager.

DOCUMENTS / REPORT IN THE DEPARTMENT:

Daily performance report:

Vehicle # Detail of work

Visitoutsidework

Jobcomplete/Incomplete

Name ofmechanic

Driversname Sign.

Remarks

Monthly performance report of auto workshop:

Maintenancework

EngineComplete

overhauling

WeldingFabricating

DentingPainting

Engineeringwork from

local market

EngineOil

changing

Tier tubechanging

repairwork

Servicing&

Greasingwork

Motorcyclerepair work

PROCUREMENT & STORES

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The department is responsible for all the purchases (including rawmaterial), storage and issue of materials to various departments.

SUPPLIER SELECTION

Selection of right supplier is an important job being performed by thedepartment. Selection criteria differs from one category to another category .

CRITICAL

These items are very much sensitive and one has to be cautious aboutmaking final decision about suppliers, in SHAMIM & CO. following factors

are taken into consideration while selecting supplier for these items

Past performance recordPCI approved suppliers

Site audit

Self assessment through questionnaire

Product inspection and testing

Compliance by any appropriate standards or

specifications

TECHNICAL/GENERAL ITEMS

While selecting a supplier for technical and general item any of thefollowing method is used.

Past performance record

Competitive price in market

Delivery requirement of Shamim & Co.

Availability of items in the market

ACCOUNTS DEPARTMENT

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The job of the department is to maintain books of accounts. There are followingmain activities of accounts.

Issuance of purchase vouchers for raw material, plant and machinery andgeneral store items

Check payment of payroll to employees including wages, overtime,

bonuses etc. Handling of monthly tax statements.

Computerized general ledger system is working and shows the result ofeach transaction up to balance sheet and income/profit and loss statement.

EXCISE DEPARTMENT

Shamim & Co is a regular taxpayer of excise and sales tax to govt. theprocedure is that production per hour of each plant is counted and noted incases and bottles. The excise duty and sales tax is calculated as per govt.rate. The liquid stock of RG 1 is moved to DP godown after clearance anddaily deposit of sales tax. The company and all its dealers pay sales tax atthe end of each month. Sales tax and excise duty is also paid on some rawmaterial as sugar, crown caps, concentrate etc. the department maintainsfollowing documents

RG 1 register

RG2 register

AR 1 form

Daily production report (shift bases)

ACL register

The department is concerned with collector rate of central excise and salestax, production department, shipping department and MIS department.

POST MIX DEPARTMENT

The post mix department is responsible for installation, maintenance and fillingof fountain fresh (post mix) machine in eight districts of Multan franchise

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limited.Post Mix Department installs machine at any suitable place with the cashsecurity of Rs, 30000. Along with Post Mix machine, they also providecounter, water tank, water filter(s), disposable glasses, disposable plates,

machine maintenance and service. The cooling system is almost likerefrigerator or fridge cooling system.

However gas cylinders are attached to the machine for gas mixing. Syrupand water mix-up happens in wolves at-4 C .So the customer gets fresh,cool product in no time. The water used in fountain fresh machines isacquired from locally available source, It is stored in water tank and filteredonce, twice or thrice depending on the purity of the water. With one syruptank of PEPSI, TEAM and 7-Up, equivalent of 19 cases standard bottle isobtained, While syrup cylinder of MIRINDA has the capacity of providingequivalent of 16 cases standard product.

Until now total 118 has been installed in different districts and approx. 114are working while others needs repair. There is further demand of about100 machine

DISPENSING DEPARTMENT STRUCTURE

In a simple way, the department can be considered to have four mainfunctions.

SALESSERVICEDELIVERYWORKSHOP

INVENTORY MANAGEMENT

Pepsi Cola Multan is handling four types of inventories which are

RAW MATERIAL

Raw material like syrup, sugar, filter papers, CO2, Ammonia, Empty bottles,

packaging material, Bottle cases, Chlorine, Corks and Crowns etc.

WORK IN PROCESS

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Work in process will contain all those bottles which are under the process of the

filling and packaging. At the end of shift work in process inventory of is transferred

to other shift.

END PRODUCTS

End products are in the form of cases containing 24 bottles. End product inventory

is managed in two ways

1. Production department after production stores their finished goods

in their godown which is located in the premises of factory.

2. Sales department transfer their needed inventory in their godown

and issue required amount of cases to distributors.

SPARE PARTS

Spare parts inventory will contain items like Gear boxes, Belts or conveyers,

Motors and Switch boards etc.

INVENTORY CONTROL SYSTEM

Pepsi Cola Multan follows periodic review system for inventory management. So inventory

is reviewed normally on weekly basis and some times after. Some time daily reviews are

also made. Each month the store prepares monthly consumption report.

LEVEL OF INVENTORY

Pepsi Multan maintains a low level of inventory because they face pressure for low level

inventory due to following factors

Company wants to provide fresh products to its customers.

Holding cost of inventory is high.

High inventory causes high tax

SUPPLY CHAIN MANAGEMENT

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Supply-chain management aims at synchronization of a firms activities/ functions

and those of its suppliers to match the flow of materials, service and information

with customer demand.

SUPPLY CHAIN IN PEPSI COLA MULTAN

Supply chain of Pepsi Cola Multan consists of following entities

Raw Material (From Suppliers)

Pepsi Cola Multan (Production Of Products)

Distributors

Retailers

Customers

SUPPLIER SELECTION

The first priority is given to quality while selecting suppliers, by the Company. Price is

considered after quality & delivery time at last.

DISTRIBUTOR SELECTION

Distributors are selected on the following basis

Ability to meet the given target

Geographical area he is covering

44

Suppliers Pepsi ColaMultan

Distributors

RetailerCustomer

Raw material Finished

Goods

Direct SalesProducts

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RETAILER SELECTION

Retailer is selected on the following basis

Location of the shop

Look of the shop

His know how with the customers His ability to meet the sales target

DIRECT SALES

Rural areas where there are no distributors, Pepsi Cola Multan goes for direct sales to

retailers. They offer the same price per unit as offered to distributors. In case of

distributors, for transportation truck are also available to transfer creates from company

godowns to distributor godowns.

SATELLITE WAREHOUSE

They are planning for satellite warehouses which will enable them to have flexible timings

for loading and unloading of trucks and storage of products closer to the customers.

LOCATION

Pepsi Cola Multan is situated near MDA (Multan Development Authority), on the road

leading to Nishtar Hospital i.e. District Jail road.

SELECTION OF LOCATION

The major factor was proximity to markets in selection of location.

LOCATION ANALYSIS

The location described above is favorable for Pepsi Cola Multan due to following factors

MARKET RELATED FACTOR

Pepsi Cola Multan has proximity to its major market i.e. Multan City which has

been declared by Pepsi Company; The Pepsi City This location is very much

helpful for Pepsi Cola Multan, in competition also to maintain proper distribution

to reduce transportation cost & time etc.

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TANGIBLE FACTORS

Labor is easily available from villages & city at normal wages. No problem is

there for supply of electricity. Most essential raw material i.e. water is easily

available to them. Transportation cost is low. Multan is the center of their

distribution area and they can easily fulfill the requirements of the southern Punjab

areas.

IN TANGIBLE FACTORS

Community attitude is positive towards Pepsi Cola. Working conditions are quite

good for employees i.e. No harm is there for their health & psychology.

PROBLEMS OF CURRENT LOCATION

Factory is located in the residential areas with no proper parking arrangements for its

vehicles. Loading and unloading of trucks can take place only in the night because of the

law permitting trucks to enter into urban areas only in the night. So they can only load and

unload trucks between 10 PM to 6 AM.

LAYOUTS

Layout is physical arrangement of economic activity centers within a facility. An economic

activity centre can be anything that consumes space. In other works layout is physical

arrangement of people, equipment or activities.

APPLICATION IN PEPSI COLA MULTAN

Pepsi Cola Multan works with product layout type, as resources are arranged around the

products route. Computer application is also there in making layouts.

PLANT LAYOUT

A single manufacturing plant consists of following different parts

1. Filler

2. Chiller

3. Washer

4. Crown fixer

5. Conveyer

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All these parts should be arranged in a proper sequence to reduce the production

time. At first washed bottles are transferred to filler through the conveyer belt and

both filler and chiller are located at the same place in order to keep the filling liquid

cool at the time of filling.

SOME MAIN LAYOUTS IN PEPSI COLA MULTAN

Layouts of Equipment

Manufacturing layout

Office layout

Retail layout

Distribution & warehouse layouts

FORECASTINGIn Pepsi Cola Multan, the base for forecasting is precious data about sales, which is

provided by sales department. After analyzing the data, the forecast is made. Executive

Opinion is also used in forecasting i.e. Opinions, experience & technical knowledge of

related managers. So forecasting in Pepsi Cola Multan is a blend of analysis of data &

executive opinion.

PATTERNS OF DEMANDDemand for products of Pepsi Cola Multan follows Seasonal Pattern i.e. repeatable pattern

of increases or decreases in demand, depending on the time of season.

FACTORS AFFECTING DEMAND

There are two types of factor affecting the demand of the product which are internal and

external factors they are given below

EXTERNAL FACTORS

Now-a-days, the biggest factor affecting demand of products of Pepsi Cola Multan

is the competitors action, the action/policies of Coca Cola Company e.g. There

effective advertising companies etc. Govt.s rule & regulations about taxes &

prices also influence the demand by affecting the price of products.

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INTERNAL FACTORS

Some internal factors influencing the demand are given below

1. Price of product

2. Proper advertisement

3. Good distribution channels

UNIT OF FORECASTING

In Pepsi Cola Multan forecast is made in term of cases where one crate = 24 bottles

DESIGN OF FORECASTING SYSTEM

In Pepsi Cola Multan forecast in made about all four products separately

TYPE OF FORECASTING TECHNIQUE

In Pepsi Cola Multan forecasting is made for short-term period i.e. for a quarter or 3-monts

AGGREGATE PLANNING

Aggregate plan is a statement of production rates, work-force levels and inventory holdings

on estimates of customer requirements & capacity limitations. Since Pepsi Cola Multan is a

manufacturing co., so its aggregate plan is also called production plan.

UNIT OF AGGREGATION

Aggregate plan is expressed in terms of cases. Which are also called SKU (stock keeping

units)

STRATEGY FOR AGGREGATE PLANNING

Pepsi Cola Multan follows chase-strategy. As we know that demand-pattern for Pepsi Cola

Multan products is seasonal. So due to seasonality of demand and chasing of demand the

company follows the chase strategy

WORK FORCE ADJUSTMENT

Company has 2-types of employees:

Employees at permanent basis.

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Employees at contract basis

All the permanent and contract basis employees are hired locally. No decision or strategies

are imposed by the country office in the hiring or firing of the employees. There are about

50 to 60 permanent employees which works through out the year. On the other hand

WORK-FORCE UTILIZATION

Work force utilization takes place in three forms

Overtime

Normally there is not the tendency of over-time in Pepsi Cola Multan as

management thinks that productivity of workers is reduced during over-time.

Under Time

The permanent workers are also paid, the under time but the workers on contract-

basis are paid on the basis of working hours so under time is not paid to them.

Vacation schedule

Pepsi Cola Multan gives incentives for vacations in slack-season. Vacations are

given on the basis of labor-laws in Pakistan. Company does not adopt aggressive

alternatives, as co has not complementary products creative pricing

MATERIAL REQUIREMENT PLANNING

Material requirement planning system enables business to reduce inventory levels, utilize

labour and facilities batter and improved customer-service.

In Puts to MRP

2) Inventory Records

In inventory records, Pepsi Cola Multan, uses to order after variable periods of time and of

variable quantities, depending upon:

Item with highs load time is Sugar

Item with lowest load time is Co2

3) Master product Schedule (MPS)

MPS, details about production of end times items within specified period of time.

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In Pepsi Cola Multan, MPSs are prepared normally on weekly basis.

QUALITY CONTROL

It is quite clear that emphasis on the high quality is only thing to sustain in the market.

Quality is important due to following reasons:

Product liability

International liability

Cost and market share

Regular sample picked by the representative of PCI in the factory and sent to America for

the analysis regarding to quality. These standards are:

Green Excellent

Yellow GoodOrange Satisfactory

Red Warning

Machinery maintenance is also checked. At this time Pepsi achieve the Green for the

standard.

RAW MATERIAL TESTING

Raw material used in production, comprises of following items.

SUGAR

TREATED WATER

EMPTY WATER

CARBON DIOXIDE

From the above items previously the franchiser from USA provided concentrate.

Following tests are made for the quality

SUGAR TEST

WATER TREAT MENT TESTING

SYRUP TESTING

FINISHED PRODUCT TESTING

SUGGESTIONS

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Fountain fresh department is an area which requires much more attention.Though currently it is working with its capacity and covering five districts with a

smart staff. The organization should take it as a SBU and concentrate on it becauseof

High expected growth PEPSI has currently no competition in this area

No problem of empty

It does not requires a huge plant setup and works with simple setup and very lowoverhead

No chance of fake bottle

So the sales can be increased dramatically by better management andboosting up Post Mix department.

PROBLEMS

There is job dissatisfaction and very low motivation on the staff due to:

Low salary

Daily allowance has been eliminated

Overtime is rewarded in terms of holidays not in monetary terms. According totechnicians, they normally do not get a chance of making allowed vacations due toworkload so the extra holidays are of no use for them.

Higher positions are filled from outside, people within the department should be

promoted to the chief technician and sales supervisor level.

Technicians perform the responsibility of salesman for which they get just Rs. 2.50 percylinder that is very low.

Computer is present in the S.O. office but no one in the department is really qualified toget use of it.

Sales targets are set without the consent of staff.

Post Mix staff has no knowledge of ISO.

During the route riding, I observed following points

The key issue is proper and compatible combination of technician, helper and

driver . these people should work as a team in the field and must possess the characteristicsthat make a team successful i.e. technical competence, trust ----.

The group should move with full preparation i.e. all required slips, necessary tools,tested equipment.

The vehicles must be fit and available on time. It is in their best interest and make

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their job safe, convenient and speedy.

The new machines are not available for installation. Used machines and countersmake shopkeepers unhappy.

The behavior of the staff with shopkeepers is generally good. The outlet ownershave the Post Mix office number complaints and the response is efficient.

RECOMMENDATIONS FOR THE COMPANY.

Proper hierarchical system

The biggest problem we found in the organization was the lack of a

proper system, which is immensely important for such an organization.

This is a typical Pakistani family business where the owner is making the

decisions all the time.

There is no succession planning, as it is apparent from the hiring of the

production manager from outside.

Proper system of reporting

There was no proper system of communication as who is to report to

whom and who is responsible of what. If a simple technical worker

encounters a problem in the plant or any part of the equipment is broken, he

at once rushes to the production manager as what to do. This is clear that

they have no proper reporting system as to deal with the broken part of the

equipment is not the job of the production manager.

There must be clearly defined levels of communication. The technical

worker must report to his immediate supervisor. If that supervisor is unable

to solve the problem then the official next to him should be consulted and

be proceeded in the same pattern. The matter will reach the production

manager but in a systematic way. So company needs a proper

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communication and reporting system. It may also help in reducing rather

eliminating false reporting.

Employee training

We see that when the new production manager was hired, he, for

implementing new techniques, gave lectures to the employees and also

recruited new ones. So there is lack of training of the employees in the

organization.

Generally Pepsi International has manuals for the managers that

describe the standard procedures and typically called as THE PEPSI

WAY. These are the guidelines, which must be passed on the employees

as how the work is to be done. What happened in the past is that the

managers kept hiding these manuals from the employees and placed them

under lock and key. The current production manager has taken an important

step as he is preparing notes from these manuals and passing them on to the

employees. But still it is not enough. Because the plants of the factory work

in mistake at any process can cause a serious problem for the other plant,

which may lead to a severe mishap for the whole

production. So in this way the employee training has got the significant

importance.

For corrective action following steps lead to success for the organization:

Periodic training programs

Classes for unskilled persons

Updating of skills of the employees.

Performance appraisal

The performance appraisal system in a manufacturing organization

is a very tricky job. For example evaluating the performance of one shift

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that has done the maintenance of the plant should be treated as separate

from the performance of the employees in the next shift that has got higher

production. The reason is that the second shift might be having less

efficiency than the previous one and the credit goes to the second shift.

The previous shift workers should be rewarded more than the nextshift because they had done the maintenance and kept the plant in working

condition. The second shift workers just have capitalized on the work of the

previous shift workers. Thats why the performance evaluation is very

important as it directly deals with the motivation of the employees. If the

employees feel that they have not been rewarded according to their jobs,

they may show little or no involvement in their tasks and may indulge in

activities that often hinders the efficiency of the production unit.

They mighty start

Making groups

Making false reporting

Try to create obstacles for others

For this reason the company needs specific performance standards for

specific tasks.

Employee Motivation

Whenever someone talks about motivating the employees, it is

commonly said, Dont forget the money consideration. So, apart from

motivation through training for the work, the employees must be rewarded

with proper reward and compensation systems.The company is also lackingin this area. Getting rewards especially when it is in the form of money or

cash motivates the employees.

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So we emphasize on proper reward and compensation system and a fair

level of salaries for all the employees in the factory. Salaries were stagnant

due to the stagnant production for the last 15 years. As the production has

gone up and it is just due to the employees so the salaries of the employee

must also be raised. Their commitment and involvement can be increased

by raising their salaries and rewards.

Thanks

pepsi taha

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