This document provides a summary of Coca Cola Company's value chain analysis. It begins with an introduction to the beverage industry and Coca Cola. It then describes Porter's value chain model and each component of Coca Cola's value chain, including inbound logistics, operations, outbound logistics, marketing and sales, services, procurement, technology, human resources, and firm infrastructure. It concludes that value chain analysis helps Coca Cola focus on value-creating activities and eliminate wasteful activities to strengthen its value proposition and benefits.

1. PAPER-CORPORATE PLANNING AND STRATEGIC
HUMAN RESOURCE MANAGEMENT
PAPER CODE-203
SEMESTER-2ND
SESSION-2017-2019
INSTITUTE- INDIAN INSTITUTE OF SOCIAL WELFARE
AND BUSINESS MANAGEMENT(IISWBM),KOLKATA.

2. BEVERAGE
INDUSTRY
COCA COLA
COMPANY

3. INTRODUCTION
The Beverage Industry refers to the industry that
produces drinks, in particular ready to
drink beverages. Beverage production can vary greatly
depending on the beverage being made.
ManufacturingDrinks.com explains that, "bottling
facilities differ in the types of bottling lines they
operate and the types of products they can run".
 Innovations in the beverage industry, catalyzed by
requests for non-alcoholic beverages, include:
beverage plants, beverage processing, and beverage
packing.

4. CONTD…..
 Coca Cola Company is one of the major player in the Beverage
Industry.
 Type-Public
 Industry-Beverage
 Founded-May 8, 1886; 131 years ago
Atlanta, Georgia, US.
 Founders -John Pemberton as Coca-Cola
Asa Griggs Candler as The Coca-Cola Company
 Headquarters-One Coca-Cola Plaza,
Atlanta, Georgia, United States
 Area served-Worldwide
 Key people-Muhtar Kent
(Chairman),James Quincey
(President and CEO.

5. PURPOSE
The purpose of this presentation is to analyze the
current situation of Coca Cola and the Beverage
industry.
A Value Chain Analysis is being conducted to describe
all the activities that make up the economic
performance and capabilities of the Coca Cola
Company.

6. WHAT IS VALUE CHAIN?
 The value is the total amount that buyers are willing to pay
for a firm’s products.
 A value chain is a high-level model developed by Michael
Porter used to describe the process by which businesses
receive raw materials, add value to the raw materials
through various processes to create a finished product, and
then sell that end product to customers.
 The value chain consists of two types of activities, namely
primary activities and support activities.

7. WHAT IS VALUE CHAIN ANALYSIS?
 Value chain analysis is a strategy tool used to analyse
internal firm activities. Its goal is to recognize, which
activities are the most valuable (i.e. are the source of cost or
differentiation advantage) to the firm and which ones
could be improved to provide competitive advantage.
 Value is derived from three basic sources:
 Activities that differentiate the product.
 Activities that lower the costs.
 Activities that meet the customer needs quickly.

8. PORTER’S VALUE CHAIN MODEL

9. COMPETITIVE ADVANTAGE
Strong Brand Image
Comprehensive Distribution System
Employee Training
One Stop Shops
Attractive Packaging
Secret Recipe
Captivating Advertisements

10. CORE COMPETENCY
 A core competency refers to the specific set of
departmental skills, knowledge, and experience that
allows one organization to outperform another.
CORE COMPETENCIES OF COCA COLA
COMPANY.
 Strong brand
Distribution system
Administrative control

11. CORE COMPETENCY
 Strong brand - The Coca-Cola Company is the most popular
branded drink in the world. It owns hundreds of brands such as soft
drinks, juices, teas, coffees, water products, and other beverages
 Distribution System - The Coca-Cola Company has an efficient and
effective distribution system. The products are being sold in
businesses such as supermarkets, restaurants, schools, colleges,
entertainment places, and etc. in over 200 countries in the world.
 Administrative control - With the human resources policy “think
globally and act locally”, The Coca-Cola Company has been globally
developing workplace around the world aligned to its policy to
provide a healthy working environment. Besides, the company puts
its employees into the value “Our values serve as a compass for our
actions and describe how we behave in the world” ,as a guidance for
employees’actions.

12. Coca Cola company

14. INBOUND LOGISTICS
 Inbound logistics deals with the handling of raw materials and
inventories received from various suppliers.
 Inbound logistics represents the beginning of Coca Cola’s value
adding conversion of inputs.
 Coca Cola has managed a very large supply chain which consists of
tens of thousands of farmers and suppliers.
 It treats its suppliers as business partners. These business partners
provide its system with raw material including ingredients,
packaging and machinery as well as goods and services.
 It also has set guidelines for the suppliers to follow. At a minimum
these suppliers are required to comply with all the applicable laws
and regulations.
 It also emphasizes on responsible environmental and workplace
policies and practices. It has managed excellent relationship with it
suppliers and that helps it maintain a continuous and uninterrupted
flow of raw material.

15. OPERATIONS
Operation at Coca Cola are activities and procedures that
transforms raw materials into finished products.
PROCESS OF PRODUCTION
 Productions of syrups and concentrates.
 Combination of syrup and concentrates for final product.
 Packing of beverage in cans and bottles.
 Transportation to warehouse or customer locations.
Production of syrups and
concentrates
Combinatio
n of syrup
and
concentrates
for final
product.
Packing of
beverage in
cans and
bottles.
Transportation
to warehouse
or customer
locations.

16. OPERATIONS
KEY INITIATIVES
 Efficient plant operations.
 Appropriate level of automation
in manufacturing.
 Quality control system.
 Efficient layout and workflow
design.
 Proper maintenance schedules.
IMPORTANT FACTORS
 Type of technology and size of
plants.
 Economies of scale.
 Production levels.
 Wage rates.
 Relative age of equipments.

17. OUTBOUND LOGISTICS
 The outbound logistics performs an exceptional task in Coca
Cola.
 It includes the transfer of concentrates to the different
locations.
 It also includes the managing the flow of concentrates to
bottlers.
 Effective shipping processes.
 Efficient finished goods warehouse processing.
 Shipping of goods in large sizes to minimize costs.
 Quality material handling equipment for increased packing.

18. MARKETING AND SALES
ACTIVITIES
Advertisement
Promotion of product
mix.
Pricing
Distribution channels
Working with sales force
and tacking sales issues.
KEY COMPETENCIES
Motivated and
competent sales force.
Innovative approach to
promotion and
advertising.
Proper identification of
customer segments.
Most appropriate
distribution channels.

19. SERVICES
Effective use of procedures to solicit customer
feedback.
Quick response to customer needs.
 and emergencies.
Ability to furnish replacement products as required.
Effective management of product inventory.
Quality of service personnel and provision of training
for employers.
Appropriate quality promises.
Global and Pan India presence.

21. PROCUREMENT
Refers to purchasing the necessary inputs, resources or
raw materials
 Purchasing involves : specific procedures like the billing
system, methods for dealing with suppliers and vendors
and an information system about raw materials.
 Coca-Cola uses EBP (Enterprise Buyer Professional) for
many of its procurement functions.
 Procurement data is captured and used for identifying
opportunities and managing risk.
 Key business processes are automated and standardized to
save time and improve accuracy.

22. TECHNOLOGY
 Coca-Cola used a model where they can connect the
business parts with one another.
 Technology at coca cola can be characterized as- Product
Development and Process and development.
 Product development refers to the concept, design and
commercialization of new products. Ex : Enhanced Minute
Maid Products, Enviga and Dasani plus
 Process development refers to development and use of
new procedures and equipments to improve the value
adding activity. Ex : The Six Sigma process under Business
Process Excellence.
 Coca cola uses rigorous applications of DMAIC( Define,
Measure , Analyze , Improve And Control) or
DMADV(Define, Measure , Analyze , Design and
Validate).

23. HUMAN RESOURCE MANAGEMENT
 Coca-Cola believes in rewarding and recognizing
employees to ensure a complete, comprehensive package
of pay, benefits and learning and development programs.
 Coca-Cola University (CCU) aims to provide experiences
that equip people with practical skills and knowledge to
win in the marketplace.
 Classes are available in People Leadership, Franchise
Leadership, Consumer Marketing and
Customer/Commercial Leadership.
 The Coca-Cola Company values the health and well-being
of its employees and provides a variety of market-
competitive benefits programs. The Company assesses the
benefits programs to ensure employees receive those
benefits.

24. FIRM INFRASTRUCTURE
 Finance and Accounting : Deals with financial accounting, public
company disclosures, reporting processes and mergers and
acquisitions, prepares financial statement. Also uses business
consolidation and planning. SAPCO used
 Legal services : Responsible for drafting, reviewing and
interpreting sales and licensing agreements. Regulatory compliance
groups.
 Quality management : Quality and safety is ensured through
TCQQS(The Coca- Cola Quality Systems).Integrated approach to
manage quality, environment, health and safety
 IT services :It includes installing application, signing computer
networks, and information database.
 Management: An executive leadership team, and board of
directors form the management team.

26. CONCLUSION
 Value chain analysis is an essential process that
helps a company concentrate on value-creating
activities and eliminate wasteful ones to reinforce
value proposition as well as bring more benefits to the
organization.
Coca Cola has successfully applied value chain
analysis in their operations. They have
manipulated demand-driven and forecast-push to
make their supply chain more efficient and more
economical. It leads to the increase in profit and
enhance brand reputation of the company. This is
also the main purpose of value chain analysis
procedure.

28. FOR HER VALUABLE
TEACHING AND SUPPORT.

29. MADE BY
SHABIB AKRAM ROLL-21
SHALINI SHAW ROLL-22
SHARMEEN NAWAZ ROLL-23
SHASHANKA SUNDAR SINGH ROLL-24
SHRESTHA DAS ROLL-25
TANWI ROYCHOWDHURY ROLL-36