Foundations of the pepsi cola firm

Pepsi Cola International is globally renowned soft drinks brand. It really is a very well organized multinational company, which works in almost all over the world. They produce, one of best carbonated drinks on earth. Pepsi is symbolic of hygiene, quality and service, all around the globe. Pepsi is producing Cola for more than a century, and it offers dominated the world market for a long period. Its hq is in NY.

The story of Pepsi starts from North Carevebino Store that was owned by Caleb Bradham. He ready a glass or two called drink of bakery. In 1903 Caleb Baradham created it as a Pepsi Cola and listed it, made his own company and soon started it sales. In 1909 more than 24 American States gave license to Pepsi for sale. Pepsi Cola was first released in 6. 5 ounce bottle. Pepsi was initially signed up in 1932.

In 1932 Pepsi Cola was presented a big bottle of 12 ounce. In 1950, the Pepsi Cola formula was slightly evolved and the sweetness and energy in Pepsi Cola were reduced. In 1957, the bottle was changed to new attractive container and the merchandise brand was also increased by release of two more products which were Teem and Marinda.

Today Pepsi Cola is open to more than 100 million of consumers which includes Soviet Union (Russia) and China.

PEPSI IN PAKISTAN

The market in Pakistan is surely dominated by Pepsi. They have proved itself to be the No. 1 soft drink in Pakistan. Now a days Pepsi is regarded as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan, and off their after Pepsi is going higher and higher.

Pepsi's greatest rival is Coca Cola. Coca Cola comes with an international acknowledged brand. Cokes basic power is its brand name. But Pepsi using its intense planning and quick diversification in creating and promoting new ideas and product packaging, is successfully keeping is No. 1 position in Pakistan. In arriving future Pepsi is also planning to enter into the field of fruit drinks. Because of this it includes test advertised its mango drink in Karachi for the first time?

When Pepsi was released in Pakistan, it faced fearce competition with 7up, lemon and lime beverages, which was established during 1968, in Multan. Pepsi released its lemon and lime, "Teem" to contend with 7up. It effectively. After some years, Pepsi needed over 7up, and this enhanced Pepsi's revenue and market show. In Pakistan, Pepsi with 7up enjoys 70% of the market share where as the coke just has 20% market shares.

Pepsi is functioning in Pakistan, through its 12 bottlers all over Pakistan. These bottlers are Pepsi's durability. Pepsi has given franchise to these bottlers. Bottlers, produce, send out and help in promoting the brand.

PEPSI IN LAHORE

Pepsi creation was started in Lahore in 1976 by ex girlfriend or boyfriend˜Governor Saddiq Hussain Qureshi. In 1988, Pepsi seed was buyout by RIAZ BOTTLERS. After 1988, Riaz Bottlers are producing Pepsi Cola International's products under "Franchising". All specs are provided by the Pepsi Cola International and Riaz Bottlers follow them.

DEPARTMENTS IN THE COMPANY

The company is split into different departments for the capability of its operations. These departments are going by their individual managers, who are accountable for reliable, effective and successful operations of their departments. These departments include

Human Source of information department

Sales and Marketing department

Finance department

Purchase department

Research, Development and Control department

Production department

Personnel department

Plant maintenance department

Pepsi with this information system Called as MANAGEMENT & INVENTORY CONTROL SYSTEM that may facilitate the complete organization, the system can.

Help in lowering expenses

No. of employees can be lessened

Operations of the company can be faster than usual

The weaknesses of the existing system will be removed.

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LEADERS FROM THE COMPANY

THE HISTORY

The company was in the beginning possessed by late

Nawab Saddiq Hussain Qureshi & family till 1989. The Pepsi International franchise declared the management incompetent, thus, the company was handed over to a fresh set of workers. The factory setup was reorganized & re˜established with expansion in various sectors. The Peps International have this by offering it to Mr. Jehangir Tareen, who made up his new team. Mr. Jehangir Tareen is Nephew of Basic (overdue) Akhtar Abd˜ur˜Rehman.

INTRODUCTION WITH THE FAMILY

General (overdue) Akhtar Abd˜ur˜Rehman belonged to East Punjab and was commissioned in the military through IMA/PMA in the corps of Artillery. He increased to the get ranking of Standard. He remained the chief of ISI and then became the Joint Key of Personnel till he died in an Air crash.

He possessed four sons as follows

1. Akbar Akhtar _____________ (MBA)

2. Humayun Akhtar ____(MNA)____ (MBA)

3. Haroon Akhtar ___(Ex girlfriend or boyfriend˜MPA)___ (CA)

4. Ghazi Akhtar _____________ (CA)

His all four sons experienced their higher education in another country, two in Canada and two in USA, with requirements shown against each.

COMPANY'S PROFILE

-> Ghazi Akhtar _____________ M. D

-> Akbar Akhtar _____________ Director

-> Haroon Akhtar _____________ Director

-> Nawab Muhammad Ahmad _____________ Director

(He is the child˜in˜law lately Nawab Saddiq Hussain Qureshi and inherited his share in the company)

-> Jehangir Tareen _____________ Director

(Presently, he's the consultant on agriculture to Punjab administration).

-> Mr. Humayun Akhtar is neither the director nor the shareholder of the business.

STATUS WITH THE COMPANY

The company is franchise oriented through Riaz Bottlers. Pepsi International provides the focus of Pepsi to them, who source sugar, skin tightening and, other chemicals & filling up of the bottlers. The franchised area of Riaz Bottlers is municipal limitations of Lahore (excluding Shahdara which comes in Gujranwala) and Kasur.

Marketing is done through two systems, i. e. direct and through dealers/wholesalers. Seven to ten retired army officers are working in the set up including marketing section.

OTHER IMPORTANT Results ON THE FAMILY

Following are some prominent personalities having relations with Standard (late) Akhtar Abd˜ur˜Rehman's family.

1. Lt. Gen. Zahid Ali Akbar is daddy˜in˜law of Haroon Akhtar.

2. Gen. Rahimud˜Din is daddy˜in˜law of Ghazi Akhtar, whose other little princess is married to the son of late Basic Zia˜ul˜Haq.

3. Air Vice Marshal Saddar˜ud˜Din is the father˜in˜law of Akbar Akhtar.

CONTRIBUTION IN SOCIETAL WELFARE

-> One small medical center / dispensary in the name of Standard Rahim has been founded by the family.

-> Three model academic institutions have been made. These colleges are positioned in Larkana, Hyderabad and in Gujranwala.

BUSINESS MISSION

Business mission of Pepsi, in Pakistan, is to be the best and biggest owner of carbonated carbonated drinks.

PLANS, Aims & POLICIES OF PEPSI COLA

The company main purpose is to attain the highest quality level and their all strategies are related to this objective. The business is quite successful in achieving this objective because they are known for his or her quality in the market.

Company's second main goal is product development. Combined with the product Quality Company typically emphasizes on the development of the product by using R&D to be able to meet up with the changing need of the industry.

Company's third goal is to increase their revenues from international businesses.

At the organization level, Pepsi has centralized and formal framework. All the insurance policy issues related to different businesses and regions are made at the upper level and recommendations are received from the parent office in USA, the schedule and local level decisions are created by subsidiary itself, like the circulation network, marketing etc.

Pepsi has a policy of establishing sales targets for each region. They also have the goals for making certain level of revenues from each region.

PLANS & GOALS OF PEPSI

Plans related with their objectives and policies are the following

* To attain their goal of achieving finest quality product. They use their specialized expert terms to go to the different plant life and collect examples to send them Tokyo for laboratory testing, on a monthly basis. Now, they are planning for further tightening up the quality specifications by forcing the franchisers to work with different new techniques for total quality management. So, that highest quality standards could be performed. They request different experts of franchisers from different countries to participate in short classes related to quality at different area brain quarters.

* To complete their goal of new product development, they are really spending huge amounts of money on R&D.

* For attaining their third goal of increasing international earnings, they are preparing to develop their international businesses. Especially, they may be targeting to prospects underdeveloped countries which have high GDP and per capita income.

COMPETITORS AND MARKET SHARE

COMPETITORS

The major opponents Pepsi Cola are Coca Cola and RC Cola. Both these are making little if any effort to place Pepsi down. Because they have got accumulative show of only 20% in market. Alternatively Pepsi Cola is advertising and promoting their product so greatly they have almost completed name of the competitors in the market.

MARKET SHARE

Pepsi maintain 50-60% of the marketplace share. The others is presented by RC and Coca Cola.

Pepsi Cola 50-60%

Coke & RC 40-50%

Others 2. 0-3. %

DISTRIBUTION AND DEALERS

Pepsi Cola International has 12 bottles all over Pakistan. They are really accountable for the production, syndication and selling. These bottlers use rigorous distribution to reach as much customers as you can. Bottlers after producing and filling up the bottles give the containers to the vendors. Distributor, either spread the bottles right to outlets or they supply it to the complete seller, who then provide and offer the containers to the retailer.

Distribution programs have tremendous development potential. They are simply consistently making huge opportunities in the equipment, pickup trucks etc for upcoming "Coca War". Their efficiency levels some times dwindles, but up till now they could manage trivial problems and drifts in their distribution channels.

MARKETING SERVICE FIRMS

As Pepsi has given its franchises to its bottlers in Pakistan, the bottlers are wholly in charge of transportation services, warehousing facilities and planning money, to meet their goals. Bottlers have set up their own territories, and warehouses. For instance, their is one warehouse in Multan for Bahawalpur, and then for providing warehousing facilities for Gujranwala, you can find one in Sialkot. Bottlers have their own pickup trucks, and vehicles for moving the products. They have got enough resources to meet their expanding distribution online work.

However, advertising is the one marketing combine, that Pepsi Cola International do itself. Pepsi International places the promotional programs for his or her product. In Pakistan, Pepsi is advertising its techniques, Deals and product improvements, through "Inter Flow". That is one of the leading advertising agencies in Pakistan operating in Karachi. Pepsi has allocated sufficient resources for promoting and advertising its products.

EXTERNAL FACTORS

DEMOGRAPHIC FACTORS

Demographic changes and development poses some dangers and opportunities. Pepsi Cola International helps to keep close monitors of demographic fads and development on the market. Increasing migration to locations provides chance for Pepsi to increase its production, modify its prices, consequently. Folks are now becoming more alert to calories and are more conscious about their health. Pepsi tackled this craze by offering diet version for low calorie consumption mindful consumers. So Pepsi International continues a very close eyes on the demographic changes, happening in Pakistan and then plan its marketing strategies according to these innovations.

ECONOMIC FACTORS

Pepsi is an extravagance product. It's not like "Rolls Royce", but it is also nothing like "flour". People can drink drinking water too instead of Pepsi. But increasing income always influences the company. When folks have more disposable income, Pepsi markets more.

It is also an impulse product. It does not have any designed purchase. Normally, we do not venture out, especially to drink Pepsi. Very often, we see Pepsi indication mother board, a khokha, and decide to buy Pepsi. In Pakistan, Pepsi's' sales were increasing, and also other things that the company do, like, sales campaign, advertisement and syndication, which was quite effective. Year 1996, was not a good season. Because after a long time the company's' charges increased by the inflation rate. Due to surge in inflation last year, Pepsi got a 2 rupee hop from Rs. 7 to Rs. 8. That afflicted the consumer, because their disposable income reduced.

Despite the pressure from the Pepsi principals in NY, and the bottlers, to help expand improve the price as credited to inflation the price tag on development was increasing, Pepsi managed to keep its price at Rs. 8, in order to keep its customer. Now they attended back to Rs. 7.

POLITICAL FACTORS

Developments in political environment also have an effect on company's strategies. Higher percentage of sales tax and excise work has been imposed on the company's product, which affects the value, and ultimately the buying. It impacts packaging. Because of current sales framework, manufacturing bigger packs become unviable.

Current duty structure has affected Pepsi's collect plans, i. e. 1 liter container, 2 liter pet and non returnable plans. 250 ml is the most feasible package deal under current condition. Prior to this taxes in March 94, Pepsi introduced many packages i. e. 1. 5 liter load up, disposable packs and 2 liter packs, but after these duty increase, Pepsi is concentrating more on 250 ml. Political instability and uncertainty in a country has very bad effects on the investment in new projects, new product development, and on the current economic climate all together.

CULTURAL FACTORS

Although Pepsi can be an international brand, but it's very directly aligned with Pakistan social environment. Pepsi, in Pakistan is without doubt No. 1 beverage brand. Yet additionally it is recognized as a "national drink". Pepsi's has related its advertising and advertising, to nationalism, like sponsoring

Dill Dill Pakistan,

Pepsi with Imran Khan,

Pepsi with Wasim and Waqar, etc.

This reflects that Pepsi is a part of Pakistan.

Changes in life-style of consumer have an impact on the Company's product. For instance, in a despondent culture like in Pakistan, when people venture out for picnic, and during leisure time. They enjoy themselves by preparing food themselves, and very often take NR Pepsi with them. 80% consumption of Pepsi is, outside intake.

As children is the target portion of Pepsi, so their changing way of life provide opportunities for the business to improve its strategies. Young people are more fashionable and trendy, and their patterns changes every once in awhile. Pepsi's slogan

"Choice of a fresh generation",

Has appealed the Pakistani young ones, a whole lot, and the company sales were increased noticeably. Then, they shifted to new slogan, "GENERATION NEXT" and today yet another step ahead with "ASK FOR MORE".

Rapid urbanization also provide opportunities to the company. People migrating to places, are inspired by the ethnic change, and they have a tendency to buy Pepsi more as people in cities are more aware of carbonated drinks.

TASK ENVIRONMENT

MARKETS

Pepsi's market talk about is increasing 1 or 2 2 points during the last 8 to 10 years which is quite substantial. If we take up to last a decade, it's almost 12% increase in the companies show.

1996 was a bad yr for Pepsi because the prices was high. The company prices when to Rs. 8 and since the consumer income has swept up to Rs. 8 so hopefully consumer will now get familiar to this price change.

There will be now more competition and whenever there is certainly competition there's a lot of market activity, syndication improves, promotion increases and advertising improves. Just as Karachi, by the end of 1996 in Nov. , Dec. , when coke launched its 300 Ml load up Pepsi also launched its 300 ML. This created competition and prices went down to Rs. 3. This boost the market so much, that Pepsi sales were so high during Nov. , Dec. , that this has never been whole yr. This implies that Pakistani market has great probable to develop.

The primary market of Pepsi is young people, between the age groups of 16-40 time. The other section is housewives and calls for whole segment. Youth is basically for on premises consumption, and housewives and decision designers for the take-home utilization.

Geographically company takes into account 4 segments. One is south, which is Sind and Baluchistan, the other southern Punjab, then central Punjab and then north Punjab.

EVALUATION OF THIS STRATEGY

BUSINESS MISSION

Business objective of Pepsi, in Pakistan, is usually to be the best and biggest retailer of carbonated carbonated drinks.

OBJECTIVES

To sell maximum amount of instances, to possess and try to get maximum market show. Pepsi has established their objectives, according to the resources they hold, and these aims are very appropriate, under the prevailing competitive position and the opportunities.

STRATEGY

Core strategy is to achieve the aims, to provide consumer the product he wants. To supply Pepsi at an "arms length", to the consumers. For this company has allocated sufficient resources.

BUDGETS

Company has allocated sufficient resources to different market segments. Adequate resources are given for product development, advertising, advertising and other marketing mixture elements. This can be seen by the grade of ads produced by Pepsi. Pepsi advertisements are often shown through the most expensive time on the perfect time, i. e. between 7. 00 Pm to 9. 00 Pm.

They also sponsor ethnical occurrences, musical concerts; cricket matches etc that involves vary high costs. But Pepsi is able to get the desired results out of its huge investment funds in promotion, advertisements and product development.

OPERATIONAL MANAGEMENT

FORMAL STRUCTURE

As bottlers are given the duty of production, circulation and sales. The Pepsi Cola International (PCI) packages the over-all plan. HRM manager has the authority to build up the managing plan, or an other activity, but he must communicate his suggestions to the bottlers and after common discussion, the plan is finally carried out. These formal constructions possess problems in communication. As the HRM administrator has to communicate with 12 bottlers, around Pakistan. He must influence the bottlers about the plan. This wastes a lot of time.

PLANNING & FUNCTIONAL EFFICIENCY

Pepsi's product management system is quite effective. Planning director plans about the profits and the marketing team programs and forecast the sales amount. Pepsi International designs the over all sales quantity and brand building activities.

Communication between marketing staff and sales staff is not up to the mark. Because both these functions are managed by differing people in different firm i. e. bottlers deals in sales and Pepsi International works out the marketing plans. That's the reason the communication between sales personnel is not effective.

In Pepsi's view, sales personnel needs improvement and drive in sales execution. This requires training of sales man, sales supervisor, so that they can plan the routes effectively, interacting with the sellers. Recently the company has employed a training consultant, who'll train the sales staff in line with the recent developments manufactured in the developed countries like U. S. A, and U. K. etc.

MARKETING SYSTEM

INFORMATION SYSTEM

Pepsi gets brains by marketing research. They have various research companies; one of these is "Aftab Associates". These businesses gets intelligence for Pepsi. They offer the well-timed information about market conditions, products give food to back, etc. These companies gather the data, the info and then survey their studies to the company.

Pepsi decision designers, use the research carried out by these organizations. They measure the report of course, if, there is anything which needs debate, company managers remain with the staff of the study firm and make an effort to solve such problems. But the ultimate decision is used by the business itself.

PLANNING SYSTEM

To a big amount, Pepsi has an efficient planning system. Market demand and sales forecasting is measured effectively and quite effectively. Sales forecasting is the primary, or the starting point of budgeting, allocating resources for development etc. This should be as exact as is possible. Sales quota for different market sections are establish on proper basis.

Companies marketing planning system is so effective, so it immediately adjusts its plans according to the changing industry situation, and market situations.

CONTROL SYSTEM

Pepsi has developed a system for periodic evaluation of the sales and success of products. It also analyze the expectations and objectives they have set for the year and then compare the actual performance with these specifications after every one fourth. In addition, it reviews its market, market size, and stations of distribution, advertising etc.

Marketing costs are also strongly watched and matched up with the budgeted costs, on regular basis after every 4 to 5 weeks. This unable the business to reorganize its resources, when there is any discrepancy in the first 1 / 4.

NEW PRODUCT DEVELOPMENT

A company is today's business, can survive, only when it helps to keep on developing new products and new ideas. Other sensible, its competitors may take advantage by launching its new product. Pepsi in addition has developed different packages, flavours, different discount plans on new product start. For example, Pepsi has launched new products like Mountain Due and slice in Karachi, Marinda green cream, canes, plastic containers and new sizes in various deals. Pepsi always allocate sufficient money for research and business research before investing in any new product. It always do research before launching a fresh product in market. Pepsi also test markets its new product before launching it in to the market. This saves the business from the inconveniences, which normally could have occurred

SWOT ANALYSIS

SWOT research is a common tool used in organizational planning & strategy development. The essential assumption of any SWOT analysis is that organizations must align inside activities with external realities to be successful. Its planning tool talks to its usefulness in thinking about organizational strategy.

SWOT means Durability, Weaknesses, Opportunities & Threats. Utilizing a simple 2 by 2 matrix as a starting point, organization can identify several important issues relevant to a technique development

The first two factors, Durability & Weakness, involve specific organizational issues --- both positive & negative. The second sets of factors, Opportunities & Hazards, relate to influence in the organization's environment --- once more both positive & negative.

SWOT ANALYSIS

STRENGTH

1. Company Image

It also is a reputable firm and established fact all around the globe. Conception is of creating a high quality product.

2. Quality Conscious

They maintain a superior quality as Pepsi Cola International gather test from its different production facilities and send them for laboratory test in Tokyo.

3. Good Connection with Franchise

Throughout its record it has a good relationship with franchisers working in several areas of the world where they have got the production facilities.

4. Production Capacity

It gets the highest development capacity i. e. 60, 000 situations per day isn't only in Pakistan but also in South Asia.

5. Market Share

It has a highest market show i. e. 62% in Pakistan and leading a far step head from its rivals.

6. Large number of diversify businesses

This is also its main strength as it offers diversify in many businesses such as

Pepsi beverages

Pepsi foods

Pepsi restaurants

7. Greetings Tech Culture

The whole culture and business operating environment at Pepsi Cola - Western world Asia has quick access to a centralized data source and they use computers as business tools for analysis and quick decision making.

8. Sponsorships

They mainly use stars in their advertising campaigning like Imran Khan, Wasim Akram, Waqar Younas etc. Also sponsor communal activities designed like music etc.

WEAKNESSES

Decline in Taste

During the last year, it was posted in Financial Post that there has been big issues from the clients in regards to to the bad taste that they experienced through the span of half a year.

Political Franchisers

Such just as Pakistan, Hamayun Akhtar is its franchisee who may have a strong politics support from a political party which is within opposition. Within their era in government fewer taxes are imposed in it but retaliation raises as they come in opposition. Therefore the selection is not appropriate as this thing surely harmful to their image as well as the strategies.

Short Term Approach

They have too little emphasis on this in their advertising such as presently when they losses the bet for public drink in the 96 Cricket World Cup they started out a campaign where they point out the factor such as "nothing standard about it.

Weak Distribution

They lack behind in providing the rural areas and simply concentrating in the cities.

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OPPORTUNITIES

Increasing Population

As almost in worldwide growth rate is increasing which in turn escalates the demand of products and essentials and especially in Asia the marketplace is growing quicker as compare to other continents so they have a to appeal to new entrants.

Changing Friendly Trend

As in around the globe people are hurrying towards fast food and drink because of life which includes become much faster, it supply the company a favour to fully capture this fast paced market with its take away product.

3. Diversification

They may enter in garments business in order to promote their brand, by making sports clothes for players which symbolize their name by using their clothes.

THREATS

1. Imitators

They likewise have a issue of imitators as receives complaints from customers that they find take product in disguise of Pepsi's product.

Government Regulation

They face problem if federal employ taxes about them which pressure them to raise the price of their product.

3. CO2's Scarcity Problem

Again this is also a significant threat from it supplier as if provider is miserable with the company. He may decrease the resource and exploit the company. This action will surely result the production process

PROBLEMS

Although Pepsi is a well organized multinational drink company, yet it has some loop slots in its planning and circulation of its products. Some significant problems, which we observed during the course of this job, are

Management polices. Sales team is not providing good service consumers.

Supplies are often delayed. They are not able keep rate with the advertising and advertisements by the company.

There are also rare cases, of bad quality of Cola. Some times its tastes is nothing like the initial Cola. .

SUGGESTION

We suggestion the following solution to the aforesaid problems, to the best of our knowledge and experience.

Sales force also needs improvement. It requires to redefine their goals. Their targets should be

To provide good service and placing the products with time and regularly.

To listen the problems of the suppliers and make an effort to rectify their grievances.

Although we found the working environment for the personnel to be reasonable and the workers indicated their satisfaction but we witnessed that the ground was not clean enough, this can lead to the propagation of bacteria in the creation area and so an unhygienic product

To convey all promotional techniques to retailers and also to make a sure that trade is part of all consumers and advertising.

They should ensure that billing is appropriate.

RECCOMENDATION

To provide the retailers merchandizing machines promptly to time, and they should ensure that products are merchandized properly, in the outlets

Company should announce discount packages when it's sure it can provide you with the products in time for the discount or special deals.

Pepsi should not sacrifice its quality no matter what. It should test its Cola with much attention. Change in flavour is often because of the sugar used in it. Company should specify standards for its suppliers who supply sugar normal water. Research & development department should play active role in attaining product quality.

During our analysis of the procedure we discovered that a few of the inputs that Pepsi is using are of a lesser quality, including the sugar used in the liquid is of B class. Hence if Pepsi applies to a higher level glucose the drink is likely to improve in flavor and quality.

Pepsi has two carbon purifiers, although only one is always working at a time. The the one which is shut is put to work only once some maintenance work needs to be achieved on the other. We assume that much time can be kept and greater amount of liquid treated if both plants word concurrently.

Considering the above suggestion we conceive that as the carbon purifiers can take more loads, we are not loose anything by purchasing additional devices for the later levels of the procedure. Although this is an investment recommendation which Pepsi should only consider after assessing its cost profit analysis.

Moreover we were advised that some of the equipment in the lab experienced performance problems i. e. the equipment has sometime didn't identify some flaws with the liquid and bottle therefore of which defective products have been delivered in to the market. As it is critical to acquire perfectly conditioned equipment Pepsi should regularly pay heed to the maintenance of it and should not wait if it requires to make extra expenses for this purpose.

Pepsi in addition to the valves given each tank should seriously consider the implementation of online monitors as it has turn into a standard element of modern soft drink plant the world over.

We assume that Pepsi should make its labor force acquainted with his statistical methods of control, in order to see and take notice of the ramifications of their increasing and reducing efforts.

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