Ankita Gupta - 09XQCMA011

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A REPORT ON
ORGANISATIONAL STUDY
At
HINDUSTAN COCA COLA BEVERAGES PVT LTD, MOULA ALI (HYDERABAD)
Project submitted in partial fulfilment for the award of Post Graduation Degree in Management
By ANKITA GUPTA Register No.- 09XQCMA011 Under the guidance of Mrs. Hema Harsha
M.P BIRLA INSTITUTE MANAGEMENT Associate Bharatiya Vidya Bhavan #43, Race Course Road, Bangalore-590001
AUGUST 2010
MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
GUIDES CERTIFICATE
I hereby certify that this internship report entitled ORGANISATION STUDY AT HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES, has been prepared by ANKITA GUPTA (bearing USN 09XQCMA011) under my guidance and supervision.
Place: Bangalore Date: (Mrs. Hema Harsha)
PRINCIPAL'S CERTIFICATE
This is to certify that this internship report entitled '' ORGANISATION STUDY AT HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES has been prepared by ANKITA GUPTA (bearing register number 09XQCMA011) under the guidance of Mrs. Hema Harsha, M P Birla Institute of Management, Bangalore
Place: Bangalore Date: Malavalli) (Dr Nagesh
DECLARATION
I hereby declare that this Project Report titled ORGANISATION STUDY AT
HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES ,
submitted by me is a bonafide work undertaken by me and it is not submitted to any other institution or university for the award of any degree/diploma certificate or published any time before.
(ANKITA GUPTA)
ACKNOWLEDGEMENT
The ideal way to begin this research would be, to extend my heartfelt gratitude to everyone who has encouraged and guided me all through my project in particular, I would like to thank Mr. Rajesh Pebbilli (Human Resource Manager), Hindustan CocaCola Beverages Pvt. Ltd, who gave me opportunity to learn the subject in a more practical manner in this organization. I extend my thank to Mr. P.Srinivasa Rao (HR Team
leader) and Ms.Komali (HR Executive), HINDUSTAN COCA COLA BEVERAGES PVT LTD, Moula-Ali, Hyderabad, who in spite of their busy schedule helped and guided me throughout the project . All those employees of HINDUSTAN COCA COLA BEVERAGES PVT LTD deserve special thanks for their cooperation and help in the collection of necessary and relevant material for the project. I take this opportunity to thank the management and staff of MP Birla Institute of Management for giving this opportunity to do this project and for their endless support.
(ANKITA GUPTA)
EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Companys beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: Provide a moment of refreshment for a small amount of money- a billion times a day.
In this project I intend to study about the satisfaction levels of the employees of HCCBPL (Hindustan Coca-Cola Beverages Pvt. Ltd), Moula Ali related to the welfare activities. Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees & by the employers. Through such generous fringe benefits the employer makes life worth living foe employees. Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or to salaries.
The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labour force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarised as follows: They provide better physical and mental health to workers and thus promote a healthy work environment. Facilities like housing schemes, medical benefits, and education and recreation facilities for workers families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labour force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. The social evils prevalent among the labours such as substance abuse, etc are reduced to a greater extent by the welfare policies.
CONTENTS Page no. PART A 1. Introduction 1.1 Objective of the Study 1.2 Scope of the Study 1.3 Limitation of the Study 2. Industry Profile 2.1 Food and Beverage: Background 2.1.1 History 2.1.2 Leaders 2.1.3 Trends 02 02 02 02 04 04 04 05 06
2.2 Challenges in the food and beverage industry 07 2.3 Growth Prospects 2.4 Future Outlook 2.5 Key findings 2.6 Beverage Industry in India: A brief insight 3. Company Profile 3.1 History 3.1.1 Fast facts
07 08 08 09 11 13 14
3.1.2 History of bottling 3.2 Values and mission of coca cola 3.2.1 Values 3.2.2 Mission 3.2.3 Vision for sustainable growth 3.3 Corporate social responsibility 3.4 HCCBPL 3.4.1 About the company 3.5 Mission and values of HCCBPL 3.5.1 Values 3.5.2 Mission 3.5.3 Quality policy 3.6 Manufacturing unit at HCCBPL 3.7 Manufacturing process at HCCBPL 3.8 Business plan model at HCCBPL 3.9 Distribution network 3.9.1 Distribution routes 3.9.2 Distribution system 3.9.3 Departments involved in the Distribution Process
15 18 18 18 18 19 21 21 23 23 23 24 24 25 26 27 27 28
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3.10 Companys Product mix 3.11 Packaging details 3.12 Competitors to HCCBPL 3.13 SWOT Analysis 3.13.1 Strengths 3.13.2 Weakness 3.13.3 Opportunities 3.13.4 Threats
29 31 35 36 36 36 37 37
PART B 4. Employee Welfare 4.1 Introduction 4.2 Employee welfare schemes 4.2.1 Statutory welfare schemes 4.2.2 Non Statutory welfare schemes 39 39 40 40 40
5.
Research Methodology 5.1 Need for the study

42 43
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5.2 Objectives of the study 5.3 Scope of the study 5.4 Methodology 5.4.1 Primary data collection 5.4.2 Secondary data collection 5.5 Sampling 5.5.1 Size 5.5.2 Scaling technique 5.6 Limitations of the study 6. Findings and Inferences 6.1 Findings 6.2 Suggestions 7. 8. 9. Conclusion Bibliography Annexure
43 44 44 44 45 45 45 46 46 47 60 61 63 65 67
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LIST OF FLOWCHARTS
1. Beverage Industry in India Chain followed from Manufacture to distribution Business Plan Model at HCCBPL Organisational Structure of Coca Cola in India Organisational Structure at the regional level Organisational Structure of the Sales Department 09 24 27 32 33 34
2. 3. 4. 5. 6.
LIST OF FIGURES 1. 2. 3.
Vision for sustainable growth Location of COBO, FOBO and Contract packaging in India Manufacturing Process at HCCBPL 19 22 25
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LIST OF GRAPHS
1. Graph showing that welfare schemes play an important role in increasing the employees loyalty and motivation 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Graph showing satisfaction with physical conditions Graph showing satisfaction with safety measures Graph showing satisfaction with drinking water facility Graph showing satisfaction with no. of lavatories Graph showing satisfaction with restroom facilities Graph showing satisfaction with sanitary conditions Graph showing management of grievances by organisation Graph showing facilities provided by company Graph showing satisfaction with canteen facility Graph showing satisfaction with first-aid facility Graph showing satisfaction with welfare activities 48 49 50 51 52 53 54 55 56 57 58 59
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ORGANIZATIONAL STUDY AT HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED, MOULA ALI HYDERABAD
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1. INTRODUCTION
1.1 OBJECTIVES OF THE STUDY (INTERNSHIP)

To examine the organization structure of the company.

To understand functions of various departments such as Production, Marketing, Human resource management and finance. To gain necessary interpersonal and managerial Skills. To gain well rounded view of Management operations. To gain firsthand experience from industry. To make assessment of the organization in the industry.
1.2. SCOPE OF THE STUDY

The scope is limited to the extent of the place, time, organization and their information collected during the internship. It is done as a part of academic study. The scope of the study limited to information supplied by the Department Heads and information collected by standing order and settlement copies of the company. The information collected is limited to the academic knowledge gained during the study of the course. The study is confined only to Hindustan Coca Cola Beverages Pvt. Ltd. Maula Ali, Hyderabad.
1.3 LIMITATION OF THE STUDY The study is not proposed to be an expert study as it was done by a student for the purpose
of a partial fulfilment of the course in the in plant training, which is an integral part, in completion of the MBA Degree Course. The study was conducted in a short period of six weeks, and so the finding cannot be generalized for all times. Some of the information being confidential was not included in the study. The scope of the study by and large is very vast. It is difficult to cover all the areas; therefore an attempt is made to cover the crucial issues as much as possible.
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INDUSTRY PROFILE
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2. INDUSTRY PROFILE
2.1 FOOD AND BEVERAGE: BACKGROUND The food and beverage industry is composed of companies involved in processing raw food materials and manufacturing, packaging or distributing food or drink the steps in food production after harvest and before retail purchase. In the food industry, the dairy sector is the largest, followed by baked and cereal items, and chilled foods. The beverage segment is composed of alcoholic and non-alcoholic beverages. For alcoholic beverages, beer, cider and other flavored alcoholic beverages make up the bulk of the market, followed by wine and spirits. In the nonalcoholic segment, soft drinks far outsell coffee, tea, juice and water. The food and beverages industry is considered a mature industry; it is very competitive and relies strongly on advertising to promote brand names. The food and beverage industry used to be considered the production of food, which we now distinguish agriculture as a separate industry. Now, the industry is much more focused on technology and mechanical manipulation of raw foods to create more value-added food products. Reliance on transport has increased as the industry has developed to be more global in nature, with most food products being offered by a handful of globe-spanning corporations. 2.1.1 HISTORY In the late 18th and early 19th centuries, the Industrial Revolution contributed largely to the production and distribution of food and beverage. The results were the ability to mass produce food products at a lower cost and improved transportation, such as railroads and barges, enabled many food products to be enjoyed in regions where food cannot be grown. During wartime, the food and beverage industry shifted, as food is often a precious commodity. Prices were determined by availability and regulation. After World War I, the U.S. Federal Government established the U.S. Food Administration to regulate the contents of domestically produced food. Most
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countries involved in World War II rationed food and regulated prices in order to stabilize the economy. After World War II the Food and Beverage Industry began branding products through advertising to increase popularity. In many instances, product advertising costs more than the cost of production, and branding is partially responsible for the emergence of radio and television. The Cola Wars, a campaign of mutually-targeted television advertisements and marketing campaigns between soft drink
manufacturers The Coca-Cola Company and PepsiCo, was one example of extensive advertising. In the 1950s and 1960s, the concept of franchised restaurants was promoted. This enabled franchisers to expand with limited capital investment. One such franchise is McDonalds, currently the Worlds largest chain of fast food restaurants. Since the 1980s there were many mergers and acquisitions of Food and Beverage Companies. This trend continues today, with many companies actively buying and selling brands. Some of the Industrys biggest growth spurts have come from megamergers between Food Industry giants. For example, Kraft Foods and Nabisco and General Mills and Pillsbury were two major mergers. Indias Food and Beverage Industry is valued at Rs. 3584 billion. India produces above 600 million tons of food products every year and is one of the major producers of food in the World. The Food and Beverage Industry registered a growth rate of 8.5% in 2005-06. According to McKinseys report, the total beverage consumption will grow at 9% over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage will see a spurt of 9.6% and 8.8% respectively. 2.1.2 LEADERS In the Food and Beverages Industry, diversification, whether into many different types of food or beverage or into different preparations, has been shown to be a key to ensuring future growth. Nestle, the largest Food and Beverage Company in the World, Unilever and Kraft Foods have all diversified well and performed well,
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becoming leaders in their market. The non-alcoholic beverage segment is led by Coca-Cola with PepsiCo and Cadbury Schweppes. The key players currently operating in the Indian Food and Beverages Industry including Dabur India Limited, Godrej Industries Limited, Hindustan Lever Limited, Britannia Industries Limited, ITC Limited, Nestle, PepsiCo, Inc., Cadbury Schweppes PLC, Future Group, RPG Enterprise and Godrej Agrovet Limited. 2.1.3 TRENDS Recently, Companies have spent a lot of money researching consumers eating habits and preferences. Statistics shown that more people are dining out and food producers are finding themselves devoting more attention to products designed for restaurants, vending machines, and other food service providers. Although this is bad news for grocery retailers, food makers realize food eaten away from home is still food they can provide, many times at higher margins. Another trend in the Industry has been the development of health foods, such as those containing less trans-fat or fewer calories, or those containing only organic ingredients. Bottled water has become well established in the market as many beverage companies, and enhanced waters containing vitamins or supplements are gaining popularity, Energy drinks, such as Red Bull, have also burst forth onto the scene. Rising costs have become an issue in the Food and Beverage Industry, as the rising costs of petroleum cause a twofold increase in cost for companies in the Food Industry; costs have increased at the agriculture end, which increases raw materials costs for food processors who also deal with increased production and transportation costs at their end. Since the Industry is so competitive, it is difficult for these companies to raise their prices accordingly and profit margins have suffered as a result. Quality control and assurances are vital to this Industry. Food safety programs have been adopted recently as issues of chemical and bacterial contamination and new food-borne pathogens remain a public health concern.
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2.2 CHALLENGES IN THE FOOD AND BEVERAGE INDUSTRY

Poor infrastructure Lack of adequate facilities for storage, transportation and cold chain facilities No common food law Food standards are confusing and contradictory High cost of raw material and packing material and high railway freight puts
pressures on margins.
Different rules and regulations and licensing are defined for different
commodities 2.3 GROWTH PROSPECTS With increase in disposable income of consumers, growing awareness among consumers about health products, rapid urbanization and increasing popularity of convenience foods, food and beverage sector is expected to grow at a high rate. This sector holds a huge potential to grow because of the increase in advertisement spending, awareness campaign about products in urban as well as rural areas and large scale transformation. Indias Food and Beverage Industry is valued at Rs. 3584 billion. India produces above 600 million tons of food products every year and is one of the major producers of food in the World. The Food and Beverage Industry registered a growth rate of 8.5% in 2005-06. According to McKinseys report, the total beverage consumption will grow at 9% over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage will see a spurt of 9.6% and 8.8% respectively.
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2.4 FUTURE OUTLOOK RNCOS Indian Food and Beverages Forecast (2007-2011) report gives an in-depth analysis of the present and future prospects of the Indian Food and Beverages Industry. It looks into the Industry in detail with foci on organized food retailing, consumer food purchasing behavior, food processing Industry and packed/convenience food Industry. This report helps clients to analyze the factors and examine the opportunities critical to the success of food and beverage industry in India. 2.5 KEY FINDINGS
It is expected that fruit consumption will increase at a CAGR of 4.33% for the
period spanning from 2007-201
The processed-food market is the main focus for foreign companies as this
segment is underdeveloped and presents enormous potential for growth
Rising household incomes, increasing urbanization, changing lifestyles and the
rapid growth of the private-sector and dairy-processing Industry should lead to greater demand for value-added, milk-based products, such as processed cheese, table butter and ice cream
The growth rate of soft drink sales will decelerate during the forecasted period
due to pesticide contamination issues and growing popularity of fruit juice drinks and bottled water
Coffee consumption is likely to expand at a rapid rate during the forecasted
period. It is expected that it will increase at a CAGR of 10.05% for the period spanning from 2007-2011
The rapidly developing and full of potential processed food market will attract
foreign companies
Consumption of soft drinks expanded at an average annual rate of 11% by
volume during 2002 to 2006, and this is forecast to accelerate only slightly to 12% during 2007 to 2011
Production of branded snack food is estimated to be growing at an annual rate
of 20% in coming 2-3 years, albeit it has a small base of consumers

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Being the world largest market for whisky, India will remain major global
spirits market in the coming 3-4 years 2.6 BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT
In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.
FLOWCHART 1. BEVERAGE INDUSTRY IN INDIA
BEVERAGES
ALCOHOLIC
NON-ALCOHOLIC
CARBONATED
NON CARBONATED
COLA
NON COLA
NON COLA
23 The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: Alcoholic, non-alcoholic and sports beverages Natural and Synthetic beverages In-home consumption and out of home on premises consumption. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.
If the behavioural patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe
feeling that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether
in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.
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COMPANY PROFILE
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3. THE COCA COLA COMPANY

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Companys beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: Provide a moment of refreshment for a small amount of money- a billion times a day. The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The CocaCola Company the worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Companys assets and resources whilst limiting business risks.
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3.1 HISTORY Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed.
Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr.Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.
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The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895,three years after The Coca-Cola Companys incorporation, Mr. Candler announced in his annual report to share owners that Coca-Cola is now drunk in every state and territory in the United States. As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.
3.1.1 FAST FACTS Established: 1886 Ranking: Owns 4 of worlds top 5 non-alcoholic brands i.e Coca-cola, sprite, diet coke and Fanta Company associates: 90,500 worldwide Operational reach: 200+ countries Consumer Servings (per day): 1.5 billion Beverage variety: Offers more than 2800 products including diet and regular sparkling beverages, and still beverages such as 100% juices, juice drinks, sports drinks, teas, coffee and milk and soy-based beverages.
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3.1.2 HISTORY OF BOTTLING Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today.
Year 1894: A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A.Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that CocaCola be bottled, but Candler focused on fountain sales.
Year 1899: The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.
Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high.
Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of
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the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world.
In the 1920s: Bottling overtakes fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras,Mexico, Belgium, Italy and South Africa. By the time World War II began,Coca-Cola was being bottled in 44 countries.
In the 1940s: Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.
In the 1950s: Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960.
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In the 1960s: Introduction of new brands Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world.
In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy, retail customers of The CocaCola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.
In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.
21st Century: Coca-Cola today The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.
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3.2 VALUES AND MISSION OF COCA COLA
3.2.1: VALUES: Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being: LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be, its up to me COLLABORATION: Leverage collective genius INNOVATION: Seek, imagine, create, delight QUALITY: What we do, we do well
3.2.2: MISSION To Refresh the World... In body, mind, and spirit To Inspire Moments of Optimism... Through our brands and our actions To Create Value and Make a Difference... Everywhere we engage.
3.2.3: VISION FOR SUSTAINABLE GROWTH PROFIT: Maximizing return to shareowners while being mindful of our
overall responsibilities. PEOPLE: Being a great place to work where people are inspired to be the
best they can be. PORTFOLIO: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy peoples Desires and needs. PARTNERS: Nurturing a winning network of partners and building mutual
loyalty. PLANET: Being a responsible global citizen that makes a difference.
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Fig1. VISION FOR SUSTAINABLE GROWTH
3.3 CORPORATE SOCIAL RESPONSIBILITY As one of the largest and most global companies in the world, Coca-Cola took seriously its ability and responsibility to positively affect the communities in which it operated. The companys mission statement, called the Coca-Cola Promise, stated: The Coca-Cola Company exists to benefit and refresh everyone who is touched by our business. The Company has made efforts towards good citizenship in the areas of community, by improving the quality of life in the communities in which they operate, and the environment, by addressing water, climate change and waste management initiatives. Their activities also included The Coca-Cola Africa Foundation created to combat the spread of HIV/AIDS through partnership with governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation, focused on higher education as a vehicle to build strong communities and enhance individual opportunity Coca-Colas footprint in India was significant as well. The Company
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employed 7000 citizens and believed that for every direct job, 30-40 more were created in the supply chain. Like its parent, Coke Indias Corporate Social Responsibility (CSR) initiatives were both community and environment-focused. Priorities included education, where primary education projects had been set up to benefit children in slums and villages, water conservation, where the Company supported community-based rainwater harvesting projects to restore water levels and promote conservation education, and health, where Coke India partnered with NGOs and governments to provide medical access to poor people through regular health camps. In addition to outreach efforts, the company committed itself to environmental responsibility through its own business operations in India including: Environmental due diligence before acquiring land or starting projects Environmental impact assessment before commencing operations Ground water and environmental surveys before selecting sites Compliance with all regulatory environmental requirements Ban on purchasing CFC-containing refrigeration equipment Waste water treatment facilities with trained personnel at all company-owned bottling operations Energy conservation programs 50% water savings in last seven years of operations
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3.4
HINDUSTAN
COCA-COLA
BEVERAGES
PRIVATE
LIMITED
(HCCBPL)
3.4.1 ABOUT THE COMPANY
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. In the new liberalized and deregulated environment in 1993, Coca-Cola made its reentry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favour of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO),17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is
35
reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.
COBO FOBO CONTRACT
Fig2. LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

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3.5 MISSION AND VALUES OF HCCBPL
3.5.1: VALUES The values that the employees in the Company are expected to keep up to and work by regularly are as follows: LEADERSHIP: To take an initiative and lead, motivate and drive the team
with energy and zeal, to deliver outstanding results. INNOVATION: To continuously strive for progress and reach the next level
of excellence in everything we do. PASSION: To be deeply committed and display drive and energy in the quest
to deliver outstanding performance. TEAMWORK: To unite for greater strength and work collectively as a group
towards the achievement of common goals. OWNERSHIP: To think and act like owners at all levels; to have decisions
taken at the lowest appropriate level. ACCOUNTABILITY: To be individually and transparently accountable to
our colleagues for delivering agreed targets and goals.
3.5.2: MISSION To create consumer products, services and communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to; Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the use of
finished drinks. Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economic value added Suppliers as an opportunity to make reasonable profits when creating real
value-added in an environment of system-wide team work, flexible business system and continuous improvement. Indian society in the form of a contribution to economic and social
development.
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3.5.3: QUALITY POLICY To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processesEvery time.
3.6 MANUFACTURING UNIT OF HCCBPL There are 2 manufacturing units in Hyderabad one based at Ameenpur and one at Moula-Ali, Ameenpur has 3 CSD (carbonated soft drinks) lines and Moula-Ali has 2 CSD and 1 PET line. There are 3 more units, one each in Vizag, Vijaywada and Nellore. The total turnover of AP is over 750 crores with 3 plants, 2 Green fields and 1500 associates.
FLOWCHART 2. CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

MANUFACTURING PLANT, MAULA ALI
SALES AND DISTRIBUTION
DISTRIBUTORS
OUTLETS
OUTLETS
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3.7 MANUFACTURING PROCESS AT HCCBPL
Fig 3. MANUFACTURING PROCESS The manufacturing of the products of Coca-Cola involves the following steps: Water is received and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water. In the syrup room, the concentrate received from another bottling plant
situated at Pune, is blended with the sugar syrup. Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product. On the other hand, simultaneously, the returnable glass bottles are
depalletized, inspected and washed for the purpose of filling in the final product in
39
it. This step does not take place in the PET bottle line as the bottles once used are disposed. The product is finally filled in the bottles, crowned (in case of RGB)/ capped
(in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.
3.8 BUSINESS PLAN MODEL AT HCCBPL FLOWCHART 3
Coca-Cola India division
Manufactures Concentrate, Beverage base and Syrup
Regional Bottlers COBO/FOBO
Manufactures finished Bottles/Cans/Fountain Syrup
Customers
Consumers
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3.9 DISTRIBUTION NETWORK
HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. A typical distribution chain at HCCBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution---Warehouse --Retail Stock --- Retail Shelf --- Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.
3.9.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows: Key Accounts: The customers in this category collectively contribute a large chunk
of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
Future Consumption: This route consists of outlets of Coca-Cola products, wherein
a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc.
Immediate Consumption: The outlets in this route are those which require stocks on
a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc. MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
41
General: Under this route, all the outlets that come in a particular area or an area
along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.
3.9.2: DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level.
Indirect distribution: In indirect distribution, an organization which is not part of
the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)
Merchandising: Merchandising means communication with the consumer at the
point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.
3.9.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments: Distribution Department: It appoints distributors and establishes a distribution
network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up.
Finance Department: It checks credit limits and approves sales orders in compliance
with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances.
Shipping or Warehousing Department: It dispatches goods as per approved by
order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.
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3.10 COMPANYS PRODUCT MIX The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL:
In the Cola section
In the Lemon section
In the Orange section
43
In the Juice section
In the Soda water and Bottled Mineral Water section
In the Coffee section
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3.11 PACKAGING DETAILS Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300
ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles Diet Coke: 330 ml can and 500 ml PET bottle Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and
1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET
bottles Schweppes Mineral Water: 750 ml PET bottles Schweppes Tonic Water: 330 ml can
45
FLOWCHART4. ORGANISATIONAL STRUCTURE OF COCA COLA IN INDIA
Chief Executive Officer
Vice President Supply Chain
Chief Finance Officer
Human Resource Director
Vice President BSG
Regional Vice President (North)
Regional Vice President (Central)
46
FLOWCHART5. ORGANISATIONAL STRUCTURE AT THE REGIONAL LEVEL

Region Vice president AGM/AOD (Unit 1)
AGM/AOD (Unit 2)
AGM/AOD (Unit 3)
AGM/AOD (Unit 4)
Region Finance
Region Human resource
Region Customer service
Region External Affairs
Region Cold drink
Region Legal
Region BSG Region Director/Manager
Region Capability Management
Region Channel
47
FLOWCHART6. ORGANISATIONAL DEPARTMENT

AGM/AOD
STRUCTURE
OF THE
SALES
Plant Manager
Route to Market
Human Resource Manager
Finance Manager
General Sales Manager
Area Sales Manager
Channel Manager
Area Capability Manager
Sales Executive
Marketing
Sales Trainers
Market Developers
Key Accounts
Distributors and Salesmen
48
3.12: COMPETITORS TO HCCBPL

The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows:
PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola
Company never ends for the World's # 2, carbonated softdrink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.
Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.
Dabur: Dabur in India, is one of the most trusted brands as it has been operating
ever since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange.
49
3.13 SWOT ANALYSIS SWOT stands for Strengths Weakness Opportunities and Threats. SWOT analysis is a technique much used in general managements as well as marketing scenarios. SWOT consists of examining the current activities of the organisation in strengths and weaknesses and then using the external research data to set out the opportunities and threats that exist. 3.13.1 STRENGTHS Coca-cola has been a complex part of world culture for a very long time. The products image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-cola image is displayed on T-shirts, hats, memorabilia. This extremely recognizable branding is Coca-Colas greatest strengths. It is enjoyed more than 685 million times in a day around the world and thus stands as a simple yet powerful symbol of quality and enjoyment. Additionally, the bottling system of Coca-Cola is one of their greatest strengths. It allows them to conduct business at a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorised to sell products of Coca-Cola company. Because coke does not have outright ownership of bottling networks, its main source of revenue is sale of concentrate to its bottlers. 3.13.2 WEAKNESS Weakness of any business needs to be both minimised and monitored in order to effectively achieve productivity and efficiency in their business activities. Coke is no exception. Although domestic businesses as well as many international markets are thriving, coke has reported decline in unit case volume in some parts of the world because of reduction in consumer purchasing power and none of these markets are performing upto the expectations. Coca-Cola on the other hand has effects on the teeth which is an issue for health care. It also contains sugar which with continuous drinking may cause health
50
problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years. 3.13.3 OPPURTUNITIES Brand recognition is the significant factor affecting Cokes competitive positioning. Coca-Colas brand name is known well throughout 94% of the world. The primary concern has been to get this brand name to be even better known. Packaging changes have also affected sales and industry positioning, but in general the company has tended not be affected by new products. Coca-Colas bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives coke the opportunity to service a large geographic and diverse area. 3.13.4 THREATS Currently, the threat of new viable competitor in the carbonated soft dring industry is not very substantial. The threat of substitutes however is a very real threat. The soft drink industry is very strong but customers cant be faithful to it. Possible substitutes that put continuous pressure on both coke and pepsi are tea, coffee, juices, milk and hot chocolate. Even though Coke and Pepsi cover 40% of the entire beverage market, the changing health consciousness of the consumers may have an adverse affect. Of course both Coke and Pepsi have diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market. Consumer buying behaviour also represents a key threat in the industry. The rivalry between coke and pepsi has produced a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competitors. Furthermore, consumers can easily switch to other beverages with little cost or consequence.
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SATISFACTION LEVEL OF EMPLOYEES WITH WELFARE ACTIVITIES IN HCCBPL
52
4. EMPLOYEE WELFARE
4.1 INTRODUCTION Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Labour welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition wages or salaries. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labour force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows:
They provide better physical and mental health to workers and thus promote a
healthy work environment
Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.
Employers get stable labour force by providing welfare facilities. Workers
take active interest in their jobs and work with a feeling of involvement and participation.
Employee welfare measures increase the productivity of organization and
promote healthy industrial relations thereby maintaining industrial peace.
The social evils prevalent among the labours such as substance abuse, etc are
reduced to a greater extent by the welfare policies.

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Labour welfare refers to all those efforts of employers, trade unions voluntary organizations and governmental agencies which help employees feel better and perform better. Welfare means faring or doing well. It is a comprehensive term it refers to Physical. Mental. Moral. Emotional well being of an individual..
4.2 EMPLOYEE WELFARE SCHEMES Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization and from industry to industry. 4.2.1 STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Drinking Water. Facilities for sitting. First aid appliances. Latrines and Urinals. Canteen facilities. Spittoons. Lighting. Washing places. Changing rooms. Rest rooms.
54 4.2.2 NON STATUTORY WELFARE SCHEMES Many non statutory welfare schemes may include the following schemes: 1) 2) 3) 4) 5) Personal Health Care. Maternity & Adoption Leave. Housing facility. Transport facility. Medical insurance.
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RESEARCH METHODOLOGY
56
5. RESEARCH METHODOLGY
5.1 NEED FOR THE STUDY Labour is one of the important factors of the production process. Other factors are land, capital and management. Without labour, other factors of production cannot complete the production cycle and they will become incomplete. Labour is not only resource that is necessary to produce goods and services to satisfy our needs. Each society has its own unique store of resource that differs in type, quantity and quality. Labour in many cases is the most plentiful resource, although many factors influence its productivity. To win over employees loyalty and increases their moral. To build up stable labour force, to reduce labour turnover & absenteeism. To develop efficiency and productivity among workers. To save oneself from heavy taxes on surplus profit. To earn goodwill and enhance public image.
5.2 OBJECTIVES OF THE STUDY To understand the welfare measures undertaken in HCCBPL. To know how far the welfare measures have served the purpose. To know whether the employees are making use of the welfare facilities
provided. To understand the employees perception on implementation of welfare
measures. To know if the employees require more facilities. To study how the welfare measures help in increasing the productivity and job
satisfaction.
To learn how the welfare services provided to employees helps organization to
build up a stable work force by reducing absenteeism and labour turn over.
To offer useful suggestion for improving the effectiveness of the welfare
measures.
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5.3 SCOPE OF THE STUDY The study covers all the statutory welfare measures namely canteens, washing facility, rest rooms, storing facility, sanitary and drinking water facilities. And the
non statutory welfare measures namely housing facility, transport facility and recreation it also includes a study on issues like grievance handling and working environment. The study is conducted only on employees of HCCBPL, Maula Ali, which forms universe of the study. 5.4 METHODOLOGY Employee satisfaction cannot be defined on the basis of two single words-satisfied and dissatisfied. If the welfare measures gratified his needs in the way he expects it to, without any short falls, he is satisfied. Any deviation from his intended expectation could leave him dissatisfied thus causing a grievance. Hence, it is safe to conclude that no single factor or attribute of the service can be held responsible for how the employee feels about it, every employee has his own expectations and the resulting idea he forms about the measure is his own prerogative. Enough care was taken to make sure that the department in which the employees operated in are into way affected the survey or cause the finding to be skewed. The data collected basically depends on: Primary data Secondary data
5.4.1 PRIMARY DATA COLLECTION The information collected directly with out any reference is primary data. In the study, it is mainly through conversation with concerned change of officers and staff members, either individually or collectively.
58
The data includes: Conducting personal interaction with the department of the company. Individual observation. Interactions of employees directly the information gathered or questionnaire.
5.4.2 SECONDARY DATA COLLECTION Secondary Data is that data which has been gathered for purposes other than addressing the issue or problem currently under study. The various sources of secondary data collection are: Text books. Web sites. Journals.
5.5 SAMPLING Sampling is the process of selecting units (e.g., people, organizations) from a population of interest so that by studying the sample we may fairly generalize our results back to the population from which they were chosen. Here I have chosen random sampling method to carry out the research. 5.5.1 SIZE: A sample of 30 employees has been selected at through it looks to be a small sample keeping in view the large number of employees, it has to be limited because of time constraint even than the sample size is not considered to be small it is enough to draw conclusion.
59
5.5.2 SCALING TECHNIQUE Scaling technique used is Likerts scale. A Likert item is simply a statement which the respondent is asked to evaluate according to any kind of subjective or objective criteria; generally the level of agreement or disagreement is measured. Often five ordered response levels are used. Likert scaling is a bipolar scaling method, measuring either positive or negative response to a statement. 5.6 LIMITATION OF THE STUDY: There were some limitations with respect to the analysis and data that may affect the accuracy of the results. One month is major constraint in collecting data. I have interviewed very few employees in the organization. However it is
feared that any error occurred in selection of sampling will directly affect the final outcome/conclusion. Employees generally may not speak anything against management. More so when an open questionnaire is given they fear of possible discipline
at a client if they speak anything unpalatable. Like any other project report my report also is subject to human fallacies. Lastly I wish to conclude that the project report is applicable to the company
under study only and also to the particular period of study.
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FINDINGS AND INFERENCES
61
6. FINDINGS AND INFERENCES

1) Do you agree that welfare schemes play an important role in increasing the
employees loyalty and motivation? No. of Respondents Strongly agree Agree Cannot say Disagree Strongly disagree 13 17 0 0 0 Percentage 44 56 0 0 0
GRAPH 1 Inference: All the respondents agree that welfare activities play an important role in increasing loyalty and motivation. Welfare activities increase the satisfaction levels of the employees, which leads to increase in motivation. A well motivated employee would always be loyal towards its organisation and work towards improving the productivity.
62
2)
Are you satisfied with the physical conditions at the work place? No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 10 17 0 3 0 Percentage 34 56 0 10 0
GRAPH 2 Inference: Most of the respondents are satisfied with the physical conditions at the work place. Only 10% are dissatisfied. Thus it can be inferred that the physical conditions at HCCBPL are good. Proper safety measures are taken by the organisation for the employees working in the plant. Cleanliness is maintained in the entire place.
63
3)
Sufficient safety measures are taken in the plant? No. of Respondents Strongly agree Agree Cannot say Disagree Strongly Disagree 4 20 0 6 0 Percentage 14 66 0 20 0
GRAPH 3 Inference: Most of the respondents agree that proper safety measures are taken in the plant. Very few disagree. Thus it can be inferred that respondents are happy with the safety measures which are taken. The employees who work in hazardous areas, like inside the plant are trained on safety measures and all the required safety equipments are provided to them. The machineries are checked on regular basis for any defects.
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4)
Are you satisfied with the drinking water facility? No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 9 17 0 4 0 Percentage 30 56 0 14 0
GRAPH 4 Inference: Maximum number of the respondents are satisfied with the drinking water facilities. Only few are dissatisfied. Drinking water facilities is available for employees near their working places itself.
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5)
Sufficient number of lavatories are provided. No. of Respondents Strongly Agree Agree Cannot say Disagree Strongly Disagree 4 13 2 11 0 Percentage 14 43 7 36 0
GRAPH 5 Inference: Many respondents disagree that sufficient lavatories are provided. The number of lavatories were in accordance with the Factorys Act 1948, but still some respondents were unsatisfied because they needed more lavatories.
66
6)
Mention your level of satisfaction to the facility of restroom provided by
HCCBPL? No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 5 12 0 13 0 Percentage 17 40 0 43 0
GRAPH 6 Inference: Maximum number of respondents were satisfied with the restroom facility but quite a lot were unhappy also. Thus it is inferred that management should provide more restrooms and maintain it in good condition.
67
7)
Proper sanitary conditions are maintained in the lavatories No. of Respondents Strongly agree Agree Cannot say Disagree Strongly Disagree 4 12 0 14 0 Percentage 13 40 0 47 0
GRAPH 7 Inference: Many respondents were unhappy with the sanitary conditions provided in the lavatories. The lavatories were cleaned just once in a day. Thus it is inferred that the lavatories should be cleaned more frequently for the satisfaction of the employees.
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8)
Management accepts and responds positively for the demands of employees
regarding welfare activities and acts accordingly. No. of Respondents Strongly Agree Agree Cannot say Disagree Strongly disagree 2 23 0 5 0 Percentage 7 76 0 17 0
GRAPH 8 Inference: Maximum number of the respondents agreed that the management responds positively to their demands regarding welfare activities. Thus it is inferred that grievance handling of the management is good.
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9)
Mention/Tick on the facilities provided to you by the company No. of Respondents Regular Medical Check-ups Maternity and adoption leave Medi-claim insurance scheme Employee referral scheme 27 13 24 20 Percentage 90 44 80 67
GRAPH 9
Inference: a) 90% of the employees agree that the company gets them regular medical
check-ups. b) c) d) 44% of employees get maternity and adoption leaves. 80% of employees agree that they get medi-claim insurance schemes. 67% of the employees benefit from the employee referral scheme.
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10)
Are you satisfied with the canteen facility provided? No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 8 18 0 4 0 Percentage 27 60 0 13 0
GRAPH 10
Inference: Maximum number of the respondents were satisfied with the canteen facilities provided. The food provided is prepared in hygienic conditions and variety is provided.
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11)
Mention your level of satisfaction with first-aid facilities. No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 8 18 0 4 0 Percentage 27 60 0 13 0
GRAPH 11 Inference: Maximum number of the employees are satisfied with the first-aid facilities provided. A separate first- aid room is provided and the first-aid facilitator is available during the working hours.
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12)
Are you satisfied with the welfare activities conducted by HCCBPL?
No. of Respondents Highly Satisfied Satisfied Cannot say Dissatisfied Highly Dissatisfied 12 15 0 3 0
Percentage 40 50 0 10 0
GRAPH 12
Inference: Maximum number of the respondents are satisfied with the welfare activities provided at HCCBPL. Thus the welfare activities provided by the organisation are good.
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6.1 FINDINGS The organization has good working environment provided by the
management. Staff and workers were fully involved in their work during shift hours. Canteen facility is very good. Most of the people have positive attitude towards the organization. Management is very much concerned for the workers welfare. HCCBPL was maintaining good relation between employee and employer. Different welfare programs are conducted in different departments. The welfare programs improve self confidence and imbibe positive thinking
among the employees. The employeremployee relations in this HCCBPL is very good. They maintain good safety measures to their employees as well as for the
workers in the organization under the welfare programs. The HCCBPL provides various non-statutory welfare schemes also such as
medi-claim insurance and regular medical check-ups.
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6.2 SUGGESTIONS
Some of the employees think that welfare activities should be improved by the management in following:
Detailed welfare facilities should be more. The frequency of the employee welfare facilities should be more. The notices should be put up in regional language also. Depending on the department the employee welfare facilities should be conducted for the employees. Organization should be able to understand the needs of every department welfare facilities. Organization has to improve the continuous employee welfare facilities like safety measures.
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CONCLUSION
76
7. CONCLUSION
Coca Cola is a multinational company and a leader in the non-alcoholic beverage in the world. In 2005 it was divided into CCI (Coca Cola India) and HCCBPL (Hindustan Coca Cola Beverages Private Ltd.) in India. CCI produces the syrups for the production of the beverages. HCCBPL is into bottling of the beverages produced. The welfare activities carried out in HCCBPL are very good and the employeremployee relations are maintained in good terms. The organisation has good
working conditions and the employees were highly motivated. Various welfare activities are conducted in different departments of the company to maintain the employees loyalty and keep them motivated.
77
BIBLIOGRAPHY
78
8. BIBLIOGRAPHY
BOOKS 1) Malik P.L Industrial Law Volume 2- Eastern Book Company Publications-1998 WEBSITES
1) About the Coca- Cola company. 8 JULY 2010 <www.coca-colaindia.com> 2) History of the Coca- cola company. 10 JULY 2010 <en.wikipedia.org/wiki/The_Coca-Cola_Company> 3) About labour laws in India. 15 JULY 2010 <en.wikipedia.org/wiki/Labour_law> 4) Article on employee welfare. 18 JULY 2010 <http://www.articlesbase.com/human-resources-articles/employee-welfare-999627.html> 5) About Food and beverage industry. 22 JULY 2010 <http://food-beverages.exportersindia.com/> 6) About Food and beverage industry. 22 JULY 2010 <http://www.indianfoodindustry.net/>
79
ANNEXURES
80
QUESTIONNAIRE
Name:_________________________________________
1)
Are you satisfied with the welfare activities conducted by HCCBPL?
(a) (b) (c) (d) (e)
Highly satisfied Satisfied Cannot say Dissatisfied Highly dissatisfied
2)
Do you agree that welfare schemes play an important role in increasing the
employee s loyalty and motivation.
(a) Strongly agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
81 3) Are you satisfied with the physical conditions at the work place.
(a) Highly satisfied (b)Satisfied (c) Cannot say (d) Dissatisfied (e) Highly dissatisfied
4) Sufficient safety measures are taken in the plant. (a) Strongly Agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly Disagree
5) Are you satisfied with the drinking water facility provided (a) Highly satisfied (b) Satisfied (c) Cannot say (d) Dissatisfied (e) Highly dissatisfied 6) Sufficient number of latrines and urinals are provided (a) Strongly agree MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)
82 (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree
7) Mention your satisfaction level to the facility of restroom provided by HCCBPL (a) Highly satisfied (b) Satisfied (c) Cannot say (c) Dissatisfied (d) Highly dissatisfied
8) Proper sanitary conditions are maintained in the lavatories (a) Strongly agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree
83 9) Management accepts and respond positively for the demands of employees
regarding welfare activities and acts accordingly (a) Strongly Agree (b) Agree (c) Cannot say (d) Disagree (e) Strongly disagree
10) Mention/Tick on the facilities provided to you by the company Regular medical check ups Maternity and adoption leave Medi-claim insurance scheme Employee referral scheme
11) Are you satisfied with the canteen facility provided? (a) Highly satisfied (b) Satisfied (c) Cannot say (d) Dissatisfied (e) Highly Dissatisfied 12) Mention your level of satisfaction for first-aid facilities (a) Highly satisfied (b) Satisfied
84
(c) Cannot say (d) Dissatisfied (e) Highly Dissatisfied

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1

HINDUSTAN COCA COLA BEVERAGES PVT LTD, MOULA ALI (HYDERABAD)

Place: Bangalore Date: (Mrs. Hema Harsha)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

Place: Bangalore Date: Malavalli) (Dr Nagesh

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

Research Methodology 5.1 Need for the study

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

To examine the organization structure of the company.

1.2. SCOPE OF THE STUDY

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

2.2 CHALLENGES IN THE FOOD AND BEVERAGE INDUSTRY

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

period spanning from 2007-201

segment is underdeveloped and presents enormous potential for growth

Rising household incomes, increasing urbanization, changing lifestyles and the

Coffee consumption is likely to expand at a rapid rate during the forecasted

Consumption of soft drinks expanded at an average annual rate of 11% by

Production of branded snack food is estimated to be growing at an annual rate

of 20% in coming 2-3 years, albeit it has a small base of consumers

FLOWCHART 1. BEVERAGE INDUSTRY IN INDIA

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appeal to go out, purchase and consume.

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

3. THE COCA COLA COMPANY

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MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

3.2 VALUES AND MISSION OF COCA COLA

loyalty. PLANET: Being a responsible global citizen that makes a difference.

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Fig1. VISION FOR SUSTAINABLE GROWTH

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3.4.1 ABOUT THE COMPANY

COBO FOBO CONTRACT

Fig2. LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

3.5 MISSION AND VALUES OF HCCBPL

our colleagues for delivering agreed targets and goals.

FLOWCHART 2. CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

SALES AND DISTRIBUTION

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3.7 MANUFACTURING PROCESS AT HCCBPL

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3.8 BUSINESS PLAN MODEL AT HCCBPL FLOWCHART 3

Coca-Cola India division

Manufactures Concentrate, Beverage base and Syrup

Regional Bottlers COBO/FOBO

Manufactures finished Bottles/Cans/Fountain Syrup

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3.9 DISTRIBUTION NETWORK

3.9.1: DISTRIBUTION ROUTES

Future Consumption: This route consists of outlets of Coca-Cola products, wherein