Coca Cola Performance Appraisal System Management Essay

coca plant weed feat Appraisal System Management EssayThe Coca-Cola confederacy is the military mans large-scalest manufacturer, distri thoor, and merchandiseer of non- cloudburst potable concentrates and syrups. Based in Atlanta, Georgia, KO sh ars concentrated material bodys of its deglutitions to bottlers, which produce, package, and sell the finished products to retailers. The Coca-Cola ac c on the wholeer operates in everywhere 200 countries and sells over four hundred different products, including the world-famous Coca-Cola and fairyland lines of advantageously-to-do boozes.KO faces several challenges today. An increase consumer option for healthier drunkennesss has resulted in slowing fruit rates for sales of change velvet insobrietys (abbreviated as CSD), which constitutes 74% of KOs sales. KOs profits be alike vulnerable to the rising cost for the raw materials employ to shoot drinks such(prenominal) as the corn syrup used as a sweetener, the alumi num used in cans, and the bendable used in bottles. Additionally, as sustenance retailers watch consolidating, theyre gaining more power to negotiate for lower sets, decrease KOs footing flexibility.Despite these challenges, Coca-Cola has remained highly profitable. Though the non-CSD merchandise is outgrowth quickly, the traditional CSD food market is slake very much larger in legal injury of two revenues and leger. The surface and variety of KOs offerings in the CSD category, coupled with the remarkable defacement law of the Coca-Cola trademark, has allowed KO to maintain its sh atomic publication 18 of the large, high-margin CSD market. At the same(p) time, KO has responded to consumers changing tastes and begun launching hot, non-CSD alternatives.The Coca-Cola accompany engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide. It generally offers sparkling and still beverages. The phoners sparklin g beverages include nonalcoholic ready-to-drink beverages with carbonation, such as energy drinks, and change water systems and flavored waters. Its still beverages consist of nonalcoholic beverages without carbonation, including non-carbonated waters, flavored waters and enhanced waters, succuss and juice drinks, teas, coffees, and sports drinks. The Coca-Cola Company also offers commencement syrups, syrups, and concentrates, such as flavoring ingredients and sweeteners. The company markets its nonalcoholic beverages under the Coca-Cola, nutriment reverse, Fanta, and Sprite vane name calling. The Coca-Cola Company also owns mineral water brands Kinley. The Coca-Cola Company, nourishing the orbicular conjunction with the worlds largest merchandising soft drink since 1886, returned to India in 1993 after a opening of 16 age giving a new thumbs-up to the Indian semisoft Drink Market. In the same year, the Company overlyk over ownership of the nations stature soft-drink brands and bottling net unravel. No wonder, their brands have got assumed an iconic status in the minds of the consumers. Coca-Cola serves in India few of the more or less recalled brands across the world including names such as Coca-Cola, Diet bump, Sprite, Fanta, Thumps Up, Limca, Maaza and Kinley (packaged beverage water).INTRODUCTIONHuman resource vigilance (HRM) is the strategic and coherent approach to the management of an organizations most valued assets the people operative there who individually and collectively contribute to the achievement of the objectives of the business. It is the organizational determination that deals with issues related to people such as compensation, hiring, mathematical process management, organization k right awayledge, safety, health, benefits, employee motivation, communication, administration, and training.Objectives for act estimate policy can outdo be understood in terms of potential benefitsIncrease motivation to perform eff ectively.Increase round self-esteem.Gain new insight into cater and supervisors.Better clarify and adjust job functions and responsibilities.Develop valuable communication among appraisal participants.Encourage change magnitude self-understanding among staff as well as insight into the kind of development activities that ar of value.Distribute rewards on a fair and credible basis. finish up organizational goals so they can be more readily accepted. purify institutional/departmental manpower planning, test validation, and development of training programs. mathematical process appraisal may be defined as a incorporate formal interaction among a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for purifyment and skills development.In numerous organizations but non all appraisal results are used, either schoolly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the legal age of procurable merit tolerate increases, bonuses, and promotions.By the same token, appraisal results are used to identify the poorer performers who may require some(a) form of counseling, or in extreme cases, demotion, knock offal or decreases in pay. (Organizations need to be aware of laws in their agricultural that might restrict their capacity to dismiss employees or decrease pay).The Performance Appraisal System (PAS) is designed to improve overall organizational performance by encouraging a higher(prenominal)(prenominal) level of directment and motivation and increased staff participation in the planning, delivery and evaluation of work. The dodge establishes a process for achieving responsibility and answerableness in the execution of programmes approved by the G eneral Assembly. It is based on linking individual work plans with those of departments and offices and entails setting goals, planning work in leave and providing ongoing feedback. An important function of the PAS is to promote communication between staff members and supervisors on the goals to be achieved and the basis on which individual performance provide be assessed, encouraging teamwork in the process.OBJECTIVESTo get familiar with cooperate world environment and culture.To learn how appraisals of a employee in the company is decide by managers.To learn the parameters seniors look while doing the appraisals.To see what are the factors, which decide how much appraisals, a particular should get. Who are the Peoples involved in appraisals system and who takes which last?To understand the appraisals system and methodology for appraisals in Coca-Cola India.To get familiar with the work and duties of a Human Resource (HR) Manager.INDUSTRY PROFILEREVIEW OF writings ON THE INDUST RYAn pains analysis with Porters Five Forces reveals that market forces are favorable for profit big businessman.Defining the industryBoth concentrate producers (CP) and bottlers are profitable. These twain parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap for instance, cycles/second do some bottling, and bottlers conduct many promotional activities. The industry is already vertically incorporated to some extent. They also deal with similar suppliers and emptors. Entry into the industry would involve developing operations in either or both disciplines. crapulence substitutes would be both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a bring industry profitability of 14% (Exhibit 1). This industry as a al unmatched generates positive economic profits.RivalryRevenues are extremely concentrated in this industry, with one C and Pepsi, together with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top sixsome controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market function, and this occasionally hampered profitability.For example, toll wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as Pepsi was able to compete on attributes early(a) than price.Substitutes by the early 1960s, soft drinks were s ynonymous with colas in the mind of consumers. Over time, however, an opposite(prenominal) beverages, from bottled water to teas, became more popular, oddly in the 1980s and nineties. Coke and Pepsi responded by expanding their offerings, through and through alliances (e.g. Coke and Nestea), acquisitions (e.g. Coke and Minute Maid), and internal product cornerstone (e.g. Pepsi creating Orange Slice), capturing the value of increasingly popular substitutes internally. Proliferation in the number of brands did threaten the profitability of bottlers through 1986, as they more frequent line set-ups, increased capital investment, and development of superfluous management skills for more complex manufacturing operations and distribution. Bottlers were able to overcome these operational challenges through consolidation to achieve economies of scale. Overall, because of the CPs efforts in diversification, however, substitutes became less of a threat.Power of SuppliersThe inputs for Cok e and Pepsis products were primarily colewort and furtherance. Sugar could be purchased from many sources on the open market, and if sugar became too expensive, the firms could easily switch to corn syrup, as they did in the early 1980s. So suppliers of nutritive sweeteners did not have much bargaining power against Coke, Pepsi, or their bottlers. NutraSweet, meanwhile, had recently come off patent in 1992, and the soft drink industry gained another supplier, Holland Sweetener, which reduced Searles bargaining power and lowering the price of aspartame.With an abundant supply of inexpensive aluminum in the early 1990s and several can companies competing for contracts with bottlers, can suppliers had very little supplier power. boostmore, Coke and Pepsi effectively further reduced the supplier of can falsifyrs by negotiating on behalf of their bottlers, thereby decrease the number of major(ip)(ip) contracts available to two. With more than two companies vying for these contracts, Coke and Pepsi were able to negotiate extremely favorable agreements. In the plastic bottle business, again there were more suppliers than major contracts, so direct negotiation by the CPs was again effective at reducing supplier power.Power of buyersThe soft drink industry interchange to consumers through five principal posts food stores, convenience and gun, fountain, vending, and crowd merchandisers Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But imputable to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power. Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did institute them some control over soft drink pro fitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. matter mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers. The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel paid sampling. This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets. As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks.Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. situation owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high. The customer in this case was the consumer, who was generally limited on ache quenching alternatives.The final channel to consider is convenience stores and gas stations. If Mobil or Seven-Eleven were to negotiate on behalf of its stations, it would be able to exert significant buyer power in transactions with Coke and Pepsi. Apparently, though, this was not the nature of the alliance between soft drink producers and this channel, where bottlers profits were relatively high, at $0.40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets. Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of sum of money soft drink sales. Through other markets, however, the industry enjoyed literal profitability because of limited buyer power.Barriers to EntryIt would be nearly impracticable for either a new CP or a new bottler to image the industry. New CPs would need to overcome the tremendous marketing heft and market presence of Coke, Pepsi, and a few others, who had established brand names that were as much as a century old. Through their DSD practices, these companies had signify relationships w ith their retail channels and would be able to defend their positions effectively through discounting or other tactics. So, although the CP industry is not very capital intensive, other barriers would prevent entry. Entering bottling, meanwhile, would require substantial capital investment, which would deter entry. Further complicating entry into this market, existent bottlers had exclusive territories in which to distribute their products. Regulatory cheering of intrabrand exclusive territories, via the Soft Drink Interbrand Competition Act of 1980, ratified this strategy, making it impossible for new bottlers to get started in any region where an existing bottler operated, which included every significant market in the US. In conclusion, an industry analysis by Porters Five Forces reveals that the soft drink industry in 1994 was favorable for positive economic profitability, as evidenced in companies pecuniary outcomes.MAJOR COMPANIESIn India there are only two major companiesHi ndustan Coca Cola Beverages Private Ltd.Pepsi Co.Hindustan Coca Cola Beverages Private Ltd.The Coca-Cola Company engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. The companys sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as energy drinks, and carbonated waters and flavored waters. Its still beverages consist of nonalcoholic beverages without carbonation, including non-carbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas, coffees, and sports drinks. The Coca-Cola Company also offers fountain syrups, syrups, and concentrates, such as flavoring ingredients and sweeteners. The company markets its nonalcoholic beverages under the Coca-Cola, Diet Coke, Fanta, and Sprite brand names. The Coca-Cola Company also owns mineral water brands Kinley. The Coca-Cola Company, nourishing the global community with the worlds largest selling soft drink since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs-up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nations top soft-drink brands and bottling network. No wonder, their brands have assumed an iconic status in the minds of the consumers. Coca-Cola serves in India some of the most recalled brands across the world including names such as Coca-Cola, Diet Coke, Sprite, Fanta, Thumps Up, Limca, Maaza and Kinley (packaged drinking water).PEPSI Co.PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 jillion and more than 185,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories.PepsiCo entered India in 1989 and has grown to become the countrys largest selling food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country in 1989. In India, PepsiCo provides direct drill to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options- Diet Pepsi and 7Up Light hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks Gatorade, and 100% natural fruit juices and juice based drinks Tropicana, Tropicana Twister and Slice. Our local brands Lehar Evervess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands. PepsiCos bite food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the freshman companies to eliminate the use of trans plump downs and M SG in its products. It manufactures Lays Potato Chips Cheetos extruded snacks, Uncle Chipps and traditional namkeen snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to importantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.The group has built an expansive beverage, snack food and exports business and to stand the operations are the groups 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this visio n every day is visible in our contribution to our country, consumers, farmers and our people. organise ANALYSISCoca Cola Co.Pepsi Co.StrengthsEstablished Market care easy Established NetworkParle brands acting as SubstitutesRegional Presence of some BrandsStrengthsMarket presence felt by customers.Increasing influence and identification. tender promotional CampaignIn touch with customerWeakness aberration of BottlersNot in touch with CustomersWeaknessSmaller Market ShareOther brands are not very popular (except Pepsi and Mirinda)OpportunitiesRegaining foregoing Market Share by promoting parle brandsOpportunitiesCan gain a large Share in Existing Market while Coca Cola consolidates its position.ThreatsPepsi co, the biggest competitorPepsi cos ability to judge the market mood accurately.ThreatsCoca Colas change in strategy which will be taking external the advantage.Coca cola ability to bring about price war. prink ANALYSIS FOR THE INDUSTRYSWOT stands for Strengths Weakness Opportu nities ThreatsSWOT analysis is a technique much used in many general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then(prenominal) using this and external research data to set out the Opportunities and Threats that exist.Strengths intemperate and well differentiated brands with leading share positions. Brand portfolio includes both global Unilever brands and local brands of specific relevance to India.Consumer understanding and systems for building consumer insight.Strong RD potential well linked with business.Integrated supply chain and well penetrate manufacturing units.Distribution structure with wide reach, high quality coverage and ability to leverage scale.Access to Unilever global technology capability and sharing of best practices from other Unilever companies.High quality manpower resources.WeaknessesLimited success in changing drinking habits of people.Complex supply cha in configuration, unwieldy number of SKUs with dispersed manufacturing locations.Price positioning in some categories allows for low price competition.ThreatsLow priced competition now present in all categories.Changes in fiscal benefits.Unfavorable raw material prices in sugar, aluminum, commodity etc.OpportunitiesMarket and brand growth through increased penetration especially in rural areas.Brand growth through increased use of goods and services depth and frequency of usage across all categories.Upgrading consumers through renewal to new levels of quality. Leveraging the latest IT technology.COCA- dummy PROFILEREVIEW OF LITERATUREThe Coca-Cola Company (NYSE KO) is the worlds largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. Based in Atlanta, Georgia, KO sells concentrated forms of its beverages to bottlers, which produce, package, and sell the finished products to retailers. The Coca-Cola Company operates in over 200 countries and sells over cd different products, including the world-famous Coca-Cola and Sprite lines of soft drinks.KO faces several challenges today. An increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD), which constitutes 74% of KOs sales. KOs profits are also vulnerable to the rising costs for the raw materials used to make drinks such as the corn syrup used as a sweetener, the aluminum used in cans, and the plastic used in bottles. Additionally, as food retailers continue consolidating, theyre gaining more power to negotiate for lower prices, decreasing KOs price flexibility.Despite these challenges, Coca-Cola has remained highly profitable. Though the non-CSD market is growing quickly, the traditional CSD market is still much larger in terms of both revenues and volume. The size and variety of KOs offerings in the CSD category, coupled with the unparalleled brand equity of the Coca-Cola trade mark, has allowed KO to maintain its share of the large, high-margin CSD market. At the same time, KO has responded to consumers changing tastes and begun launching new, non-CSD alternatives.History and Corporate OverviewThe Coca-Cola Company traces its line of reasoning to 1884, when an entrepreneur named John Stith Pemberton concocted a cocaine-infused wine for sale in the U.S. A non-alcoholic version, called Coca-Cola, was introduced in the following year in response to new laws prohibiting alcoholic beverages, and the company was officially incorporated in 1888 in Atlanta, Georgia.The entire Coca-Cola system is divided into two parts the Coca-Cola Company and its bottlers. KO manufactures concentrates and syrups for its beverages, which it then sells to bottlers for packaging and distribution. KO owns all the rights for its brands, which include some of the worlds most popular non-alcoholic beverages, though it does grant bottlers some rights as part of its bottling agreements. In addition to manufacturing the concentrates, KO is also primarily responsible for marketing its brands, which includes running advertising and promotional campaigns. Bottling companies are generally independent of the Coca-Cola Company, though some are either partially or completely owned by KO.KO is now one of the largest corporations in the world, with a global workforce of over 90,000 and revenues of $28.8 trillion in revenues in 2007. Over the years, the brand equity of the Coca-Cola trademark, as well as that of other KO-produced brands, has established KO as a large(p) figure in the non-alcoholic beverage industry and allowed the company to keep both revenues and profits high.Sales and income data, in millions20042005200620072008Net sales $20,857 $21,742 $23,104 $24,088 $28,857 Net income (profits) $4,347 $4,847$4,872 $5,080$5,981 Units sold, in billions19.4 19.8 20.6 21.4 22.7 BottlersCoca-Cola holds domineering and noncontrolling interest in 64% of its worldwide bottler sCoca-Cola holds controlling and non controlling interest in 64% of its worldwide bottlers. Bottling and canning companies are typically screen from the Coca-Cola Companys main concentrate manufacturing business. However, KO does maintain ownership interests in many of its bottlers, ensuring that the relationship between the two parts of the Coca-Cola system remains close. whatever of the Coca-Cola Companys principal bottlers areCoca-Cola Enterprises (CCE) (NYSE CCE), which is the largest member of the Coca-Cola bottling network by volume. CCE accounts for 80% of all domestic Coca-Cola sales and 18% of all sales worldwide. KO retains a 35% share of CCE stock, as well as two of its long dozen board seats.Coca Cola Femsa S.A.B. de C.V. (KOF) (NYSE KOF), the second-largest bottler in the Coke system, produced 2 billion unit cases of beverages in 2007. KO owns 32% of Coca Cola Femsa S.A.B. de C.V. (KOF), which has a strong presence in Central and South America.COCA COLA HELLENIC BOTTL ING CO (CCH) S.A. (NYSE CCH) is KOs fourth-largest bottling company, selling 1.81 billion cases in 2007. CCH has a large market presence in Europe, Asia, and Africa with its operations spread among 26 different countries. KO currently owns 23% of CCHs stock.ProductsThe Coca-Cola Company produces over four hundred brands of non-alcoholic beverages, including carbonated and non-carbonated beverages, such as ready-to-drink juices, coffee drinks, tea and bottled water. Of these over 400 brands, there are more than 2,600 different varieties. Most of KOs beverage portfolio is composed of CSD, though the company has been expanding into the non_CSD category in response to a shift in consumer demand and a greater emphasis on healthy options.Carbonated Soft DrinksCarbonated soft drinks are the superstar largest component in the Coca-Cola Companys collection of beverages, accounting for around 74% of total volume sold in 2006. Within the CSD category, KO offers other honeyed drinks and diet drinks. Of all CSD sales, beverages bearing the Coca-Cola or Coke trademark make up 55% of total volumes.Some of the Coca-Cola Companys major CSD offerings includeCoca-ColaDiet Coca-ColaSpriteFantaBarqs Root BeerCoke nixIntroduced in 2005, Coke Zero is the most significant of KOs new innovations. This beverage is marketed as a calorie-free version of Coca-Cola Classic, omitting the diet label in an attempt to appeal to new demographics. This brand alone accounted for nearly on third of all 2006 growth for beverages bearing the Coca-Cola trademark. Most of KOs carbonated soft drinks come in several varieties with different flavors, caloric values, etc.KO also offers energy drinks such as TaB and Full Throttle, which are carbonated but are aimed at different demographics, putting them in a special category of their own.Non-carbonated Soft DrinksThe remaining 26% of KOs total volume is composed of non-carbonated soft drinks, which include a variety of beverages such a fruit juices, wa ters, sports drinks, and teas. This non-CSD segment has been showing higher growth rates than the CSD category, resulting from higher demand for healthy alternatives to traditional CSD.Among KOs significant non-CSD beverages areDasani bottled waterGlaceau Vitamin WaterPOWERade sports drinksMinute Maid and Minute Maid To Go juicesNestea fusee drive Healthy InfuzionsOdwalla Juice drinksWithin the non-CSD category, bottled waters like Dasani and Spring by Dannon are showing the highest rates