Excellence in Manufacturing Sector Indian Perspective "A Case Study of Hindustan Coca Cola Beverages Pvt. Lmt."

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CASE STUDY OF HINDUSTAN COCA COLA BEVERAGES Pvt. Lmt. Challenges in India

Submitted by

Asst.Prof. Lakshmi Rawat
Malla Reddy College for Business Management
Maisammaguada,Dhulapally
Secunderabad – 14
Ph. 040-64633427
Email: lakshmi_rwt@yahoo.co.in

Author’s Profile

Asst.Prof. Lakshmi Rawat has a double Post Graduation degree holding MBA(Finance) and M.Com from Osmania University. She is also pursuing her Part-B of M.Phill.(Management) from MKU University. She has an experience of over 5 years including Academic and Corporate sector. She is currently employed with Malla Reddy College for Business Management as Faculty of Management studies.

ABSTRACT

The Coca Cola Company has gained global monopoly in the world through sale of over 1.5 billion servings per day. It has been in colossal limelight in Indian markets after it was criticized by various sources for reasons quoted below due to which it suffered losses. In spite of all the hue and cry against it, coke is market leader in non-alcoholic beverages industry. * Negative health hazards as a result of its consumption

* Its business practices found to be monopolistic
* Stealing of natural resource like water
* Environmental destruction
* Packaging used in the product
This paper studies the quality management techniques practiced by the company in the light of these allegations. The company follows a branded quality management system developed by the global cross functional team. Observation of various facts and figures put forth by the company is done in comparison to the quality standards followed by the company. It is observed after the study that Coke being a International brand operates its business through its franchises which are owned by private franchises and its control mechanism is not very perfect to control them.

CASE STUDY OF HINDUSTAN COCA COLA BEVERAGES Pvt. Lmt. Challenges in India

Introduction

COCA COLA AS A INTERNATIONAL BRAND is a part of the Beverage Industry (Non-Alcoholic). It was founded in 1892 with its headquarters located at Atlanta, Georgia, U.S. There is hardly anyone who does not know about Coke as a soft drink and holding monopoly in the market competing with its close rival Pepsi. It serves in more than 200 countries with more than over 400 brands and 1.6 billion servings each day according to the Coca Cola Annual report 2003. It operates throughout the world through its franchised distribution system. Various bottlers receive the syrup concentrate from the company who solely produces it and further manufactures the finished product and markets the product through the local distribution system. Coca cola company works through its Bottlers throughout the world. Bottlers - there are about 300 bottlers around the world which are not owned and controlled by the company. They are responsible for producing, packaging, distributing and merchandising the products. Objectives of the study

Objective of the current study are
* To present a clear understanding about the allegations against Hindustan Coca Cola Private Limited in India and the elucidation presented by the company * Detailed description of the manufacturing process of Hindustan Coca Cola Private Limited (Ameenpur) Factory * Report on the Quality Standards Policy of The Coca Cola and assessment of the procedures followed in India Period of Study

Period of study ranges between 1993 and 2010. This was the period of reentry of Coca Cola into Indian markets on account of Liberalization policy of India. Coca Cola has monopoly over India’s soft drink market until 1977, when it was asked to turn over the secret formula used by it and also to attenuate its venture in India in accordance to Foreign Exchange Regulation Act (FERA). Data and Data Sources

The data is collected from various Primary and Secondary sources. Primary data collection by plant visit’s to Coca Cola factory at Ammenpur and Moula-Ali at Hyderabad, Andhra Pradesh,...
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