International Procedures Management Of Coca Cola Business Essay

The soda industry in India has two major players, Pepsi and Coke. Besides these there are some local players at different market, operating with different market talk about. But they aren't a big threat to the marketplace talk about of either Pepsi or Coke. However as of this moment the two big brands in cola industry are only two top U. S. players Pepsi and Coke and the struggle for acquiring the marketplace is always heading between both of these players and the Cola industry has along seen a Chilly WAR between these two players to acquire the market share. Which means one company profits at the price tag on the other.

One of the main characteristics of the Cola industry is the absence of loyalty and it is used mainly on impulse. The CSD (Carbonated Soft Drinks) industry mainly Coca cola has channel through which it reaches the finish consumer.

They are Development --- Herb Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --- Retail Shelf --- Consumer

The main reasons behind its business growth and business success will be the quality product that they sale to their consumers. So, quality remains key top priority for the success of the soda industry. Hence, Operation management is very important function of organization and quality management is key aspect of it.

The report in hand is the examination of international functions management of Coca-Cola. The report is structured essentially into five parts. Inside the first part, quality management part of Coca-Cola's is evaluated with the help of Fishbone Diagram. In the second part, design review (product design)of Coca-Cola is evaluated with the aid of fault tree analysis (FTA). In the third part, Total Quality Management (TQM) of Coca-Cola is evaluated with the help of Quality Management System(QMS). Within the fourth part inventory management of Coca-Cola is assessed. In the ultimate and fifth part, capacity managementof Coca-Cola is assessed. The survey is the combo of discussing ideas, ideas and theoretical models given with regards to quality management, review design, quality management system and inventory management, and capacity management.


Operations Management is present in many occupations as well as those of production and service industries. I believe it to be there in daily tasks of any person although they may never notice. With this in mind I see functions management as a skill anyone has with an aim of achieving an final result of something they will work towards in a logical process with thought of awareness of something structure.

Operations management 's been around for quite a while yet it was Christopher Polhelm (Sweden) first recognised an art and registered that 'Little or nothing increases demand much as low prices. Therefore there's a great need of machines and kitchen appliances which will reduce the amount or intensity of heavy work' (Extract from text reserve Businesses Management - given by DMU for available learning please see bibliography) this is around 1700. A couple of instances in many history books and experiences passed on that operations management was present before this yet not recognized as procedures management. From 1700 business development has grew significantly and appears to have been a distinctive point of functions management to present day. Operation management is depending upon five performance aims i. e. Quality, Versatility, Cost, Acceleration and stability.

Coca-Cola, the merchandise that has given the earth its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola is the main drink company on earth and manufactures, markets, and distributes of nonalcoholic drinkwith having about 500 drink brands. The business makes and distributes sodas, waters, juice, teas and coffees and energy drinks. With the help of the world's principaldrink circulation system, consumers in more than 200 countries take in the company's drinks with over 1. 6 billion portions every day, the Coca-Cola system has efficiently applied a straightforward formula on a global level: "Give a point in time of refreshment for a small amount of money- a billion times per day. "

The Coca-Cola Company and its own network of bottlers comprise the most advanced and pervasive development and distribution system on the globe. More than anything, that system is focused on people working long and hard to sell the products made by the business. This unique worldwide system has made The Coca-Cola Company the world's premier soft-drink venture. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than every other consumer product, has brought pleasure to thirsty consumers around the world. For more than 115 years, Coca-Cola has generated a special moment of pleasure for vast sums of folks every day.

The Company aims at increasing shareowner value over time. It accomplishes this by dealing with its business companions to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand collateral on a worldwide basis. They target at managing their business well with folks who are strongly committed to the Company worth and culture and providing an properly controlled environment, to meet business goals and targets. The associates of the Company jointly take responsibility to ensure conformity with the platform of plans and protect the business's property and resources whilst restricting business dangers.

Source: http://www. corporateinformation. com


Coca-Cola guarantees the best quality of its drinks by means of putting into program internationally established and validated processing operations.

Source: Annual Statement (2010)

Source: Annual Record (2010)

The location for Coca-Cola's developing plants is validated just after the source drinking water has been evaluated for every supplies of drinkable normal water, where the evaluation is at all times completed by sovereign third party ascribed laboratories. The foundation water is from then on correctly safeguarded and re-tested once in a while to be sure that it suits to global expectations. The is from then on drawn in the span of conserved pipelines into the storage tanks positioned in secured water treatment regions of the manufacturing plant. The company as well has a well-built interior audit system that displays observance to global and local expectations, where the production facilities are as well audited throughascribedexterior audit agencies that verify the quality management standard.


Conventionally, ideas of quality management extended independent from the type of efficient environment, industry or technology connected. However, based on the view of theory of contingency it fixes a o organization should align itself with functional environment to be able to accomplish superior output (Dale, 2003). The traditional strategy of make works with that the functional end result is maximized when general, operation-based management and competency of quality, delivery, overall flexibility and cost is exchanged (Anand and Ward, 2004). Nevertheless, these standard competitive competences could be implemented simultaneously starting from the adaptation of quality. The results linked to the establishments of high technology support the example that the expansion of basic competency of manufacture doesn't need to weight essentially with other. As a result, the continuation of total quality is recognized as initial technique for the various operation-base faculties and the overall firm output.

The research books relating to businesses management proposes the life of different practice in the various industries because the initial operational environment that they face and the necessity for the agreement. This uniqueness in each operational environment of industry, by view anticipations of customers, competition, and change of technology is expected to be able to it generates the different situations and the threats for every single industry. Consequently, different corporate and strategies of manufacture between the commercial sectors should be expected (Brown, 2006). The measurements of quality may well vary in amount or individuality from a business to other. The understanding of these variances in the various industries could help the management in each industry to adopt the suitable solutions in the use of quality techniques.

As way as soft drink industry, the product quality management is more essential and sensitive taking into consideration the use of normal water and chemical products. So a genuine and higher rate quality management is indispensible for carbonated drinks industry. Obviously, the quality management of Coca -Cola should be evaluated from this perspective. Prior to evaluating the quality management system of Coca -Cola with the help of a suitable model, it would be worth to throw some light on quality eye-sight of the business.

Figure 2: Quality Eye-sight of India

Source: Annual Article (2010)

For Coca-Cola, the company promises which it has the solo one quality system in its whole global operation. The company quality eyesight is concerns to endeavor to convenethe ever-changing wants of the world, where conserving quality process on the market is the highest business goal of the business. Moreover, the company emphasizes that customer and consumer satisfaction is the focus of its quality vision, where company desires to work as a dependable citizen wherever it performs. From the quality eyesight of Coca-Cola it comes out that the company not only implements a special quality management system, but as well isflexible to cope with the changes in setting up quality standards. Why don't we asses the product quality management of Coca-Cola through Fishbone Diagram.

The Fishbone Diagram which also called Cause-Effect Diagram and developed by Ishikawa is conventionallymade use fordiscovering causes of predicaments that may well be involved to whatever to display a graded set of drivers that controlthe factor to which it is included. In this program of action, it may well beutilized forexplanation, inspection and expansion of anextensivearray of diagrams, directing with an advancement in the acknowledgement and communication of the diagram. A Fishbone Diagram in simple truth is essentially a modestmethod of demonstrating a grading which is merely a realistictrick useful to help you fit new-fangled text in around currenttranscript, where the utilization of a grading is asignificantdeliberationas it identifies that causes are not moderate, with every cause generally being created and brought on by one or more additional causes(http://syque. com/quality_tools/tools).

Figure 3: Fishbone Diagram and Coca-Cola

Fishbone Diagram evaluation for Coca-Cola shows that most the problems that come out with regards to the grade of the products is as a result of neglect of the people or staff, where people of not being trained and well skilled is the challenge. Moreover, while the products that the company is manufacturing are consumable items exceptional treatment is expected that they are disinfected, nor create any health dangers. This is for the reason that a minor disregard in relation to the company might guide to stark situations in relation to medical problem and therefore eventually might be calamitous to the life of the company and they might even end up shedding the license. Furthermore, the management too has to be alerted to the cause and has to guarantee that the task process of the firm should be modified as there are dodges in the process, and the dodgers are such that they induced slip-ups for the company.

Hence, it is recommended that Coca-Cola ought to guarantee thatevery one of its people or staff are properly trained formerly they develop portion of the creation and functional team of the company. Moreover, the business ought assure that the machines that arefunctional in the making and purifying of normal water ought be the best possible of quality, where increasingly high quality apparatuses prerequisite to be taken to exam the life of microbes and extra such party with the lowermost likely echelon. Last but not minimal, the management of Coca-Cola necessitates to add more ranks of quality assessments and guarantee that there surely is seriously monitoring at every get ranking.


The tools itemized are present to be able to helpparticipating a design review in the achievements of their objective. The tools are made for two distinct operations: analysis of new significances and control of operating drawing. The various tools of evaluation and choice of drawing are used to be able to they determine and they appreciate the most suitable solution of sketching that is established at the length of time of new operations of creation of sketching or idea. A uterus that allows the systematic estimation of drawings predicated on the adaptations in the certain requirements is a exemplory case of tool of analysis (Ullman 2003). Engaging design review can be talked about or be distributed in various restrictions such as geographic, organisational, and time. As the circulation can be looked for or essential it achieves a great combination of experience in the team, the dissemination can also make also the adoration diverse or costly in order to realizethisadvantage of experience. These experts range from the client of product, the constitutive suppliers, the team of expansion, and the constructional team. A solution in this issue of distribution is used the tool of communication (Wetmore 2004). The clubs of design ofproducts that are constituted by the people with the several experience communicate continually in the all process of realization, specifically at the length of recognized collaborative revisions of pulling. The people with the essential experience for the address bring the revisions can be sent out in the diverse geographic places that requires or the expensive travel or the new tools of communication in order to imitate onsite the collaborative communication (Wetmore 2004).

The elementaryplan of product design at Coca-Cola has already established been moderate, tangible and carrying on, whilst the business carry refreshment, worthy of, enjoyment and fun to the consumers and then the design vision is targeted towards effectivelyfoster and protect products, where the operative team behind resilient set up at Coca Cola has already established been at the center of the product philosophy satisfying a responsibility to provide time upon time gorgeousreimbursement to the costs. Though, CocaCola is facing the situation to produce a balance of its main product design eye-sight and the changing fads. Therefore, the business offers likelyvisions into potentials for and glitches of learning from fragments of product design process and execution.

For Wetmore (2004), design review is completed for screening process and confirming product quality, durability, and conformance to customer-specied role, where two sorts of design reviews are highlighted particularly selective and evaluative. Notably selective reviews in the kinds of customer-based metrics, are utilized to selectamong options offered, an analysis tools, by means of failure methods eectsanalysis (FMEA) and mistake tree research (FTA).

FTA is a deep-rootedapproach that links to compacted theories in the varieties of Boolean logic and Possibility Theory, where in fact the former pertains to making use of to ease the problem tree construction into the groupings of proceedingsdirecting to fiasco of the program, usually interpreted as negligibleexpurgatedcircles, numerous of which are characteristicallylocated; the latter is functional to controllikelihoods that the system will nose-divethroughout a specific objective, or is unobtainable at a specificperiod with time, assumed the probability of the particular proceedings. Moreover, likelihoods are measured for particular negligibleexpurgatedcircles, creating the foundation for their position by rankinrelation with their dependability and securityeffect(http://www. reliabilityeducation. com).

Figure 4: FTA and Coca-Cola

Source: http://www. reliabilityeducation. com

As per the body the top rank proceeding should be labeledexactly, where elucidating the most notable proceeding too approximatelydirects to a adaptable tree, demonstrating no particular cause or causes for catastrophe. Moreover, elucidating the top proceeding too barelydirects to likely cause oversights. Here FTA necessitates comprisingentire likelyflaws, faults or failures existing in the machine that mightcreate safeness threats or stability problems. Therefore hardware, software, and individual elements of the system ought to beencompassed in the FTA. Placing into software a manual analysis process that is both untrustworthy and time severe, where the program of FTA may well offer as a troubleshooting device that may as well control the primary cause of likely problems for Coca-Cola. The company should acknowledge that a comprehensible oversight system may well be functional to enhance Coca-Cola's upkeep package deal and will help out the company personnel identify the adding factors to something catastrophe whilst restricting forthcoming occasions.


TQM can be an methodology in the improvement of efficiency and the versatility of enterprise internationally, that covers certain requirements of customers and outside and inside in the company (Oakland, 2003). It really is substantially a way and entire the organization, every one office, every individual person in each level. Oakland (2003) requires a blend and hard and soft solutions and it portrays TQM as pyramid that symbolizes five distinctive components included managerial obligation, chain customer-supplier, quality systems, statistical tools of control of activity, and common work. As the new millennium developments, TQM is expected in order to it matures in a period of faculty of support in order to it helps a catholic operational strategy. These critical factors of success will vary so that are adapted the changes in the surroundings where the companies function. Regardless of the make that TQM the initiatives have been identified by way of a lot of businesses as in a position the qualitative culture and the competitiveness, the new initiatives or the superior publications they are suggested to them in order to keep up TQM the courage and competence of support.

TQM of Coca-Cola is intended to encourage and distinguishrealapplication of environmental management system which attainment has had been made conceivable by the plant's devotion to company's TQM program known as The Coca-Cola Quality System (TCCQS). TCCQS includes management system (Total Quality) varying environment management and supplementary business featuresin the forms Safety and Damage Avoidance (SLP), product quality, packaging quality, procedures ability upgrading and client satisfaction.

The accounting of Quality Management System (QMS) is one from the product quality tools to be able to it can help the firm in order to enhance the qualitative output. They're usually used in the effort to be located, to keep itself which is upgraded the QMS. So that is achieved the designed various aspect of result of need of auditing to be examined. Karapetrovic and Willborn (2000) propose that the performance auditing it could be assessed so that is increased the potency of auditing. The style of measurement of QMS is based the computation of probability of availability, trustworthiness and appropriateness of auditing. The auditing should target at possible so is feasible and each one aware from lot. Each procedure for auditing is programmed which is a system that aimed in the ongoing improvement. While the sources of auditing as the probative materials they can be critical they make sure that the staffs gets the suitable knowledge comparative with the types of QMS functions.

Figure 5: Quality Management System of Coca-Cola

The Coca-Cola QMS stimulates the adoption of procedure of process at growth, the application form, and the improvement of efficiency of system of qualitative management. This approach offers the jogging control of contact caught between the procedures in itsclassification of strategies, your of the combo and their conversation. In consequence, the business is constantly in place covers up certain requirements of customers and consumers and thus, they fortify their satisfaction. The business accumulates an operational drawing that examines targets and this promote the continuous improvement of the operational setup and the potency of QMS. This comprises of the willpower of metric that allows the control of output against the aims. The goals and metric should be argued. The leading management of every operational create in the company is accountable for the warrant that the functional pulling is corresponded in the every single oneemployee. The every single one employee is responsible for the understanding of operational pulling, his goals and metric so that they help with the realization of design. The primary management of every operational setup unit is known as a member of management as pioneer QMS. Nevertheless, the primary management of Coca-Cola should ensure that the best operations of communication are established in the create and that the communication is realize with regard to the effectiveness of QMS. Further, the primary management of product Coca-Cola should revise the QMS in programmed intervals to be able to ensure the suitable software, the appropriateness, sufficiency, efficiency, and success.


Because the mounting power for the eve competitive in the entire market, that optimizes the inventories beyond the provide you with the chain has ended up being an important dispute for the industries of process to be able todrop from the expenses and to be able to improve the service of customers. This problem requires the management of inventories with the sketching of sites of chains of source, therefore the decisions in regards to to the places to be able to they provide the list and the comparative total of list in each place of feminine socks can are established altogether for the low cost and the best level of services of customers. Nevertheless, the conclusion is usually nontrivial for the chains of supply of level and their comparative systems of inventories occurrence of uncertain requirements of customers. The administrative problem of inventories of level has been researched extensively in past enough ages (Daskin et al, 2002). Nevertheless, the larger part of books of inventories examines only the optimization of decisions of inventories without their incorporation with in the drawing of chains of resource and planning of decisions. Simpson studied initially the control of system of inventories of level on the partial chain of supply. For the reason that record, Simpson proposes the guaranteed procedure of services to be able to spell it out the engineers of incomplete system of inventories, in which each stage functions a political base-reserve despite the accidental but marginal need. In the mean time, the guaranteed way of services, that is dependant on the idea of biggest time benefit of services in each host to inventories, has attracted more attention because competence for the calculation for the systems of inventories of big scale. The graves prepared that the quandary from Simpson probably will untie itself as filled with life agenda (Magnanti et al, 2006).

Operation managers are concerned with three types of inventories, first is a uncooked material inventory includes materials that'll be area of the product during the production process, second is the works happening inventory contains partially completed products, and third is completed goods inventory includes completed goods. And this each inventory includes having cost or storage space cost and the expense of running out of inventory. So, inventory control is vital since it is the process of handling inventories in such a way help to lessen inventory cost such as positioning cost and potential stock out cost.

For cost effective and efficient inventory management Coca-Cola implements Just In Time(JIT) which an inventory management tool that directs to reducing the costs also to fastening the ow of final products to customer, where implementing this tool the company has benefits entailing improving performance procedures, offering more exact and suitable methods for costs decision-making, justifying production costs, and choosing the right production mixture, and taking on an exact system for inventory control at the side of a higher rate information system. However, it is strongly recommended that Coca-Cola JIT based inventory management should be well prepared with full synchronization flanked by efficiency on the one hand, and dealers on the other palm. The JIT eye-sight of Coca-Cola ought to be manufacturing and delivering the essential items in looked-for volumes at the compulsory time and this vision as well should be continuous improvement in which non-value-adding activities are accepted and detached.

Although no doubt that just with time structured inventory management system in place, but the company should co-ordinate the output on one hand and traders on the other side. Because company sometimes face the problem in manufacturing plant which it sometimes ran out of the company's familiar red and white light weight aluminum cans as an impact of this which can result in. So, company dependent on supplier for the basic inventory which is necessary for their finished product. Because of this company should take in to account that co- ordination between efficiency and traders is essential


Capacity characteristically illustrates competences in operations management which is standard to mull over something of a variety of handling resources, as well termed as a processing network (Atamtјrk and Hochbaum, 2001). Rajagopalan and Swaminathan (2001) lengthen a multiproduct setting where demand for products is regarded and mounting steadily while capacity accompaniments are specific in terms of brand and product stock portfolio. The capability management of Coca-Cola is analyzed below.

Figure 6: Capacity Management and Coca -Cola

Source: Annual Record (2010)

Coca-Cola is noteworthy case illustration of companies who productively leveraged primary competencies towards growing out into new-fangled market segments whilst recognizing when to take advantage of and decrease the risks entailed in business. The capacity management in terms of product level of Coca-Cola is manipulated through real product, core product and augmented product. Through this capacity management, the business is competent to draw economies of scale, disseminate into fresh markets, and defend their primary brands recover of warding off the likelihood of cannibalization. However, in order to many excellently inflate its worldwide product combine it is advisable to transport on undertaking what the company is doing best in the past, where Coca-Cola is preferred to take on a less high-risk and even more money-making staged growth focused on brand name and quality.


The record concludes that the measurements of quality may vary in number or personality from a business to other. The understanding of these dissimilarities in the different industries may help the management in each industry to adopt the suitable approaches in the use of quality practices. So far as soda industry, the product quality management is more very important and sensitive considering the use of drinking water and chemical products. So an authentic and higher rate quality management is indispensible for soft drinks industry. Obviously, the product quality management of Coca-Cola should be evaluated from this point of view. Ahead of assessing the product quality management system of Coca -Cola by making use of the right model, it would be worth to toss some light on quality perspective of the company. Coca-Cola must guarantee that each one of its people or personnel are appropriately trained formerly they develop portion of the production and functional team of the company. Moreover, the business ought ensure that the machines that are functional in the processing and purifying of drinking water ought be the best possible of quality, where progressively more high quality apparatuses prerequisite to be brought to exam the lifetime of microbes and extra such party and at the lowermost likely echelon. Last but not the least, the management of Coca-Cola necessitates to include more ranks of quality checks and ensure that there surely is significantly monitoring at every ranking.

The primary plan of product design at Coca-Cola has had been moderate, tangible and carrying on, whilst the business carry refreshment, worthy of, delight and fun to the consumers and therefore the design vision is focused towards effectively foster and protect products. Though Coca Cola is facing the condition to produce a balance of its key product design eyesight and the changing trends. Therefore, the company offers likely visions into potentials for and glitches of learning from fragments of product design process and implementation. The business should acknowledge that a comprehensible oversight system may be functional to advance Coca-Cola's upkeep deal and will help you the company staff realize the adding factors to a system catastrophe whilst restricting forthcoming incidents. TQM of Coca-Cola is intended to encourage and separate real software of environmental management system and this attainment has had been made conceivable by the plant's devotion to company's TQM program named TCCQS. The main management of Coca -Cola should ensure that the best functions of communication are set up in the create and that the communication is realize in regards to to the effectiveness of QMS. Further, the best management of product Coca-Cola should revise the QMS in programmed intervals in order to ensure thesuitable software, the appropriateness, sufficiency, efficiency, and effectiveness. For affordable and efficient inventory management Coca-Cola implements JIT which a listing management tool that directs to cutting thecosts and also to fastening the ow of final products to customer, where implementing this tool the business has benefits entailing evolving performance actions, offering more exact and suitable actions for costing decision-making. However, it is strongly recommended that Coca-Cola JIT based mostly inventory management should be well equipped with full synchronization flanked by efficiency on the main one hand, and retailers on the other hands. Last however, not the least, the capability management in terms of product degree of Coca-Cola is handled through genuine product, core product and augmented product. Through this capacity management, the company is capable to take economies of level, spread out into fresh market segments, and protect their central brands with that of warding off the probability of cannibalization. However, to be able to many excellently inflate its worldwide product combination it is prudent to transport on undertaking what the business does best before, where Coca-Cola is preferred to take on a less high-risk plus more money-making staged growth focused on brand and quality.

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