Final Internship Report on Pepsi Co

On Pepsi Cola International

Nau-Bahar Bottling Company, Gujranwala

Submitted To:

HR Executive Mr. Basharat Zia

Submitted By:

Afnan Umar Khan University of the Punjab, Gujranwala Campus

Kashif Mahmood University of the Punjab, Gujranwala Campus

Salman Dar Lahore School of Economics, Lahore

Syed Sajjad Haider Baha-ud-Din Zikriya University, Multan

Date of Submission: 28.08.2010

NBC, 38 S.I Gujranwala, Pakistan.

University Of the Punjab, Gujranwala Campus Page 1

Internship Report On NBC

Introduction to Report

This report is about Pepsi CO. (Nau-Bahar Bottling Company). This report is the part of my B.Com(Hons)

degree which is compulsory for us to complete internship in any organization. The purpose of this internship is

to provide an opportunity to the students to observe the practical applications of their background professional

study. In this report I’ve given the brief history of the Pepsi CO. and about Nau-Bahar Bottling Company,

departments of the NBC, their functions and working of the some departments as well. I also include work done

by me in NBC and Financial Analysis of the PEPSI CO and SWOT analysis of the NBC. And finally give the

recommendations about the working of NBC.



A brief History of Pepsi

Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb

Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.

The information published here is provided by PepsiCo, Inc. and may be accessed at their site: www.pepsi.com.

The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named

Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a

refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the

beverage known around the world as Pepsi-Cola.

Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering

place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut

extract, vanilla and rare oils, became so popular his customers named it "Brad's Drink." Caleb decided to

rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to

grow, convincing him that he should form a company to market the new beverage.

In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent

Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But

soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent

Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids

Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew

from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40

by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of

Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-

Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation.

They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than

100,000 gallons of syrup per year.

Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern

pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A

bully drink...refreshing, invigorating, a fine bracer before a race."



The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn

transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even

mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his

"keen and energetic business sense."

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink

Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing business increased drastically.

Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola.

Caleb was forced into a series of business gambles just to survive, until finally, after three exhausting years, his

luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn't until a successful candy

manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was

president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He

saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola

Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After

five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand.

One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered from a

Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi would

earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the

nation was in the early stages of a severe economic decline that came to be known as the Great

Depression.

1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a carbonated soft

drink he created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is derived from two of

the principal ingredients, pepsin and kola nuts. It is first used on August 28.

1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.

1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as

"Exhilarating, invigorating, aids digestion."

1905 A new logo appears, the first change from the original created in 1898.

1906 The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is

registered in Canada.

1907 The Pepsi trademark is registered in Mexico.



1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when he appears in

newspaper ads describing Pepsi-Cola as "A bully drink...refreshing, invigorating, a fine bracer before a race."

The theme "Delicious and Healthful" appears, and will be used intermittently over the next two decades.

1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."

1932 The trademark is registered in Argentina.

1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six

ounces.

1938 The trademark is registered in the Soviet Union.

1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase

consumer awareness of Pepsi's value advantage.

1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel,

Nickel" will eventually become a hit record and will be translated into 55 languages. A new, more modern logo

is adopted.

1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A

Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families

to record messages for armed services personnel overseas.

1943 The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink, Better Taste."

1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.

1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to

raise prices to competitive levels. The logo is again updated.

1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is

implemented with "The Light Refreshment" campaign.

1954 "The Light Refreshment" evolves to incorporate "Refreshing without Filling."

1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence

of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers

with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided

bottle.

1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the soon-to-be-famous

"kitchen debate" at an international trade fair. The meeting, over Pepsi, is photo-captioned in the U.S. as

"Khrushchev Gets Sociable."



1961 Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war

generation. "Now it's Pepsi, for Those who think Young" defines youth as a state of mind as much as a

chronological age, maintaining the brand's appeal to all market segments.

1963 In one of the most significant demographic events in commercial history, the post-war baby boom

emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand

belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes

advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers'

lifestyles and attitudes.

1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1966 Diet Pepsi's first independent campaign, "Girl watchers," focuses on the cosmetic benefits of the low-

calorie cola. The "Girl watchers" musical theme becomes a Top 40 hit. Advertising for another new product,

Mountain Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable

tag line, "Yaa Hoo, Mountain Dew!"

1967 When research indicates that consumers place a premium on Pepsi's superior taste when chilled, "Taste

that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product superiority. The campaign, while

product-oriented, adheres closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi

Generation campaign.

1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising strategy.

Youth and lifestyle are still the campaign's driving forces, but with "Live/Give," a new awareness and a

reflection of contemporary events and mood become integral parts of the advertising's texture.

1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feeling' Free" captures the mood

of a nation involved in massive social and political change. It pictures us the way we are-one people, but many

personalities.

1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi's taste is

superior.

1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies,"

a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an

instant commercial classic.



1979 With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an exuberant

celebration of the U.S. bicentennial, and Americans are looking to the future with renewed optimism. "Catch

that Pepsi Spirit!" catches the mood and the Pepsi Generation carries it forward into the '80s.

1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that

message to Pepsi Generation advertising. The answer…"Pepsi got your Taste for Life!" a triumphant

celebration of great times and great taste.

1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is right

and so is their soft drink. It's got to be "Pepsi Now!"

1984 A new generation has emerged-in the United States, around the world and in Pepsi advertising, too.

"Pepsi. The Choice of a New Generation" announces the change, and the most popular entertainer of the time,

Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the

most eagerly awaited advertising of all time."

1985 Lionel Richie leads a star-studded parade into "New Generation" advertising followed by pop music icons

Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are part of it, as are film and

television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice president

of the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J. Fox brings a special talent, style and

spirit to a series of Pepsi and Diet Pepsi commercials, including a classic, "Apartment 10G."

1987 After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular 850-square

foot electronic display billboard declaring Pepsi to be "America's Choice."

1988 Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic" commercial

named "Chase." "Chase" airs during the Grammy Awards program and is immediately hailed by the media as

"the most-watched commercial in advertising history."

1989 "The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation Ahead!"

1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe

Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray

Charles stars in a new Diet Pepsi campaign, "You got the right one baby."

1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls"

join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is

on its way. Supermodel Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's

updated logo and package graphics.



1992 Celebrities join consumers, declaring that they "Got to Have It." The interim campaign supplants "Choice

of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain Dew growth continues,

supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique

great taste of Dew, they've "Been there, Done that, Tried that."

1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as

best in U.S.

1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up

explaining the relationship between freshness and superior taste to consumers.

1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's

national advertising championship.

1996, Pepsi Cola domestic and international operations combined into Pepsi Cola Company. International and

domestic snack food operations combined into one business unit called Frito-Lay Company. Mountain Dew

launches a massive beeper network called "The Mountain Dew Extreme Network."

1997, Pepsi-Cola introduces new advertising campaign with the theme "Generation Next."

National roll-out of Aquafine bottled water

Pepsi Cola kicks off the celebration of its 1998 100th Anniversary with first worldwide bottler’s conference,

held in Hawaii. The event is held during the same time as first bottler's conference

1998 Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and

pour.

1999 Pepsi launches "The Joy of Cola" advertising campaign

2000 Pepsi Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi One and Diet

Coke as well as regular cola. Aquafine brand bottled water becomes the best selling brand of single-serve

bottled water in US retail channels

2001 Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola with

lemon are entering retail outlets in selected U.S. markets.

2002 Brand Pepsi has a new look.

2003 Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian Hockey Association, making

Pepsi the official soft drink. Pepsi-Cola trademark turns 100 years old.

2005 PepsiCo launches "Smart Spot" symbol in Canada. Pepsi Co. Celebrates 40th Anniversary



2006 Pepsi Celebrates 20th Consecutive Super Bowl with New Diet Pepsi Campaign

2007 Mountain Dew and AMP Energy sponsor the Winter X Games

Aquafina launches Aquafina Alive - a low calorie, vitamin-enhanced water beverage

2008 PepsiCo honored by Environmental Protection Agency as water efficiency leader

Pepsi Malaysia wins bronze award at the Malaysian Effie Awards for its marketing and advertising

achievements



History of Pepsi in Pakistan

Pepsi co la is very popular in Pakistan due to its popularity its take 69% share of soft drink market. Pepsi Cola

International has a good name in Pakistan and doing its business through franchising system. PCI has developed

the following 10 franchisers in Pakistan.

Karachi

Lahore

Multan

Faisalabad

Gujranwala

Peshawar

Islamabad

Sukkhar

Hyderabad

Quetta



Nau-Bahar Bottling Company

Pepsi co starts its operation in Pakistan in 1971 first time in Multan. And NBC also establish in 1971 and from

1974-79 NBC was producing the Coca Cola products. In 1980 NBC achieve the licenses of PCI and in May 27,

1981 its start the production of the Pepsi, in the same year NBC achieve the ISO 9002 certification. And in 2008

NBC start the production of &up. And its unit’s productions capacity is 100000 cases per day with 5

manufacturing’s plants.

The Area allotted to it, was Gujranwala Franchise. The franchise area consists of the following nine districts.

1. Gujranwala

2. Gujrat

3. Hafizabad

4. Mandi bhaudin

5. Jehlum

6. Sialkot

7. Narowal

8. Sheikhupura

9. Chakwal

NBC operates through the well establish network of a number of distributers. NBC have 187 Distributers. The

Company has two type of delivery system i.e.

Director delivery system

Indirect delivery system

The basic difference between the direct and the indirect delivery system is that in a direct distribution system,

the company spends its own resources while in an indirect distribution; the dealer spends his own resources on

all the factors which increases the sales volume:

Direct Delivery System

Manufacturer Retailers Customers



Indirect Delivery System

Manufacturers Distributor Retailers Customers

Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment,

social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit

society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company

Mission

Our mission is to be the world's premier consumer Products Company focused on convenient foods and

beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and

enrichment to our employees, our business partners and the communities in which we operate. And in

everything we do, we strive for honesty, fairness

Objective

The major objective of the Nau-Bahar Bottling Co. is to manufacture and provide the best quality which must

meet the national and international standards. The company is committed to provide the maximum level of

customer satisfaction.

Management Hierarchy


Director

General Manager

General Manager (Local Sales)

General Manager (Out Sales)

Plant Manger

Marketing & Services Manager

S & D Mangers

Assistant Manager Marketing & Services

Publicity Manager

Managing Director

StoreManager

ShippingManager

MISManager

Finance Manager

PurchaseManager

Audit Manager

HR Manager

QC Manager

ProductionManager


Organizational Profile



Organization:

Nau-Bahar Bottling CompanyAddress:

S.I.E, Model Town, Gujranwala, Pakistan

Nau-Bahar is a largest franchise of Pepsi cola International .producing and distributing international brands like Pepsi, teem, & 7up and Mountain dew .plant is situated in Gujranwala, Pakistan

About employees :

There are 2000 employees attached with the production department in with about 800 labors are permanent and others are on contract base. 120 employees attaches with the sales and other departments.

Plant capacityNau-Bahar Pepsi cola industry has a moderate and big plant. It can produce 600 bottles in one minute. It has also the water

treatment plant which can take raw water from 500 dept, treat and filter it and then store it. Plant can store 20’000 gallons

Location Advantage

Water level is up than other locations and quality of water is good, due to this it is cost effective.



COMPLETE PRODUCT LINE OF NAUBAHAR BOTTLINGCOMPLETE PRODUCT LINE OF NAUBAHAR BOTTLING COMPANY (NBC)COMPANY (NBC)

BRANDS PACKING UNITS VOLUME

PEPSI

250 ML 24 bottles per case 250 ML per bottle1000 ML 12 bottles per case 1000 ML per bottle1500 ML(PET) 6 bottles per case 1500 ML per bottle175 ML 24 bottles per case 175 ML per bottlePOST MIX 1 Cylinder 114000 ML1000 ML(PET) 6 bottles per case 1000 ML per bottle330 ML CAN 12 bottles per case 330 ML per bottle300 ML(NR) 12 bottles per case 300 ML per bottle

MIRINDA

250 ML 24 bottles per case 250 ML per bottle1000 ML 12 bottles per case 1000 ML per bottle1500 ML(PET) 6 bottles per case 1500 ML per bottlePOST MIX 1 Cylinder 96000 ML1000 ML(PET) 6 bottles per case 1000 ML per bottle330 ML CAN 12 bottles per case 330 ML per bottle300 ML(NR) 12 bottles per case 300 ML per bottle

TEEM

250 ML 24 bottles per case 250 ML per bottle1000 ML 12 bottles per case 1000 ML per bottle1500 ML(PET) 6 bottles per case 1500 ML per bottlePOST MIX 1 Cylinder 114000 ML

1000 ML(PET) 6 bottles per case 1000 ML per bottle

300 ML(NR) 12 bottles per case 300 ML per bottle

7UP FREE

250 ML 24 bottles per case 250 ML per bottle


330 ML CAN 12 bottles per case 330 ML per bottle

7UP






Fields of Activities

Nau-Bahar Bottling Company is the franchise of Pepsi Cola International in Pakistan which is

the largest franchise in Asia. NBC is performing all its operations through its different

departments. Company only receives the basic formula from PCI while all other activities are

performed by the NBC itself.

Following are the different departments of NBC…

HRM

MIS

MRD

Purchase

Production

Marketing and sales

Cash and accounts

Audit and Taxation

Post Mix



Human Resource Management Department

Recruitment procedure in NBC

As it is a trend in the market of all organizations that they offer jobs to the general public to meet

the organizational needs with the fresh knowledge and skills.NBC offers job opportunities by

different ways for the fresh candidates to general public. The major sources of offering the job

adopted by the NBC are…

Internal Search Advertisement

Employees Referrals (Permanent Employees of NBC)

Newspaper Adds

Manager’s Recommendations

The candidates for the jobs are selected on the basis of

Written Test

Interview by HR Manger

Interview by Concerned Department Head

Final Interview by MD/Director

The candidate having highest results and with job experience is proffered. Then the orientation

(introduction to the organization and introduction of selected candidate) takes place which

includes introduction of all the departments. Then finally training is a necessary element for the

candidate takes place with the help of the senior employees. There is another thing that the new

employees for the labor work are not selected under the above criteria. They are just selected

under their experience and particular job skills regarding their job.



Management Information System (MIS)

In today’s modern, fast moving and technological advance era, all the organizations are moving

to be modern, fast and technological advance and to keep themselves in the competition are

rapidly adopting the computerized information system.

As this is the time of rapid changes, the organizations are in need of having proper, timely and

accurate information for the purpose of decision making. This is just possible by adopting the

new technology and information system which provide the latest trends, regular and current

information.

MIS department of NBC have a strong impact and playing a vital role in this regard. The

department is working with small setup but with the strong experienced employees as well as the

department has shifted a lot of workload as well minimizes the use of papers in this organization.

It is also helpful in saving the time.

The MIS is performing the operations of NBC up to maximum extent based on daily work while

it is also busy in developing the software. MIS department is also providing the training of usage

of this computerized system to the other employees in different departments with assistance of

shifting their workload. In NBC, all the computers are connected to each other by LAN and all

the departments are based on licensed software working.

Observing Plant’s efficiency

The management Information System is developed to keep and to make up to date all the

information about the production and the plants that what is going on. This system is performing

the function of getting information about the production figures and reports about line utilization,

line efficiency, mechanical efficiency, employee code, name, basic salary, allowances, tax, net

pay and any other adjustments supplied by time office.



Sales and distribution System

Sales and distribution system is most important function performed by the MIS. It deals with…

Sales system Cash system Shipping system Post mix system

The MIS is also dealing which is its necessary function empties slip, liquid out slip, full in slip,

empty short slip, the reports of the system are

load report ( dealer wise, depot wise ) settlement sheet ( dealer wise, depot wise ) Shipping shift summary Daily liquid out report Agent wise load out summary Agent wise sales summary District wise sales summary Computerize sales statements (monthly, semi annually, annually) Cash report

General Ledger System

The MIS is also dealing with general ledger system of NBC which takes place of the old register.

This system is working from July 1st, 2000. The general ledger system in MIS contains all

accounts and shows balance sheets and profit & loss statements with respect to every transaction.

Payroll System

There is separate payroll system for NBC. The output of the system is pay slips and payroll

report at the end of each month. All these reports are highly important in the day-to-day

operations of all the mentioned departments. In addition, customized reports can be obtained as

per demand. The system is implemented at each depot as well.



Marketing Information System

Management Information system have a powerful software the purpose of this software is to

keep and maintain the information of each outlet of the franchise to keep the current record up to

date as well as maintaining the operations related history. With the help of this system

management can get the information at any time about…

Name & address of each outlet Empty details Package details Publicity position Quality status

The system is designed in such a way that reports can be obtained about outlets:

Distributor & area wise Route wise District wise

The system is useful in accessing market & investment position in each area



Cash Department

As it is clear from its name the cash department deals with the handling of cash (collections and

payments). The collection of cash deals with the receipt of bills from the dealers and salesmen

based on their settlement sheets and daily sales reports. The payment of cash takes place after the

issuance of vouchers by the accounts department. These payments includes employee's pay, bills,

allowances, procurement expenditures and day to day general expenses.



Accounts Department

Accounts department refers towards the maintenance of books of accounts of NBC. Books of

accounts means the maintenance of Journal, ledger, trial balance, income statement and balance

sheets etc. the main functions performed by this department are as follows…

Issuance of purchase vouchers for raw material, plant and machinery and general store items

Check payment of payroll to employees including wages, overtime, bonuses etc. Handling of monthly tax statements.

Computer based general ledger system is working because of establishment of MIS department

which shows the result of each transaction up to balance sheet and income or profit and loss

statement.

Note: As we were not given the access to Cash and Accounts Departments so we were just able

to collect this data added above about these two departments.



Shipping Department

Shipping is a broad term in NBC which refers towards transfer of goods (raw material and

finished goods) from one place to another. Shipping department perform its functions as an

intermediary between production and sales. It ensures the quantity and availability of empties on

time at the time these are required similarly in case of filled stock. This maintenance of empties,

supply to plants, liquid stock and distribution has a strong impact on sales because of its

availability on time which depends upon the shipping department. So we can say that this

department is a complete chain of all the operations performed in the organization.

The shipping department is responsible for the following function performed by it…

Shipping is responsible for managing the empties. Shipping is responsible for receiving the liquid clearance from excise to dispatch it

further to Depots & distributors. Shipping is also responsible for maintaining proper stock of liquids and empties as they

appear in the liquid and empties stock register so as the stock appears in the registers, it should also be physically present in the depots.

Shipping is responsible for proper management of empties and liquid vehicles loading and off-loading i.e. time management is very important in this case.

Shipping also receives new empties of both RB and NRB and manages their storage and handling and their proper supply to production as they are required by the production for filling purpose.

Empties’ supply to plant

As it is discussed earlier the supply of empty bottles is the responsibility of the shipping so it

supply the empties to the production department to fill them as to they are needed and others are

maintained in the different godowns. Shipping department maintain the stock of empty bottles by

collecting them from the wholesalers, retailers. The godowns where they keep their empty stock

are…

RG 1 RG 2 DPG 2



Godown No. 5 Godown No. 8 Tarantaran Modern Soap Qabza Factory Pepsi Town

Pepsi Town

Pepsi Town is the residential area where the employees and labors use to live came from the city

far away from Gujranwala. It is situated somewhere near Wapda Town.

Due to the shortage of space the NBC Gujranwala has established its temporary godown in Pepsi

Town where they use to keep their empty stock, liquid stock and other material. Empties and

other required material is supplied to the plant when they are needed.



Production Department

Production is a process of converting raw material into finished goods. It’s a major function in

all the Organizations. Production is back bone of any manufacturing Organization. In NBC the

raw material used by them in production is approved by the Pepsi Cola International. The

material they purchase should be according to the standard of PCI. In the case of material does

not meet the standard of PCI then the NBC have a right to return back to its suppliers, in this

case the cost of that material is beard by the supplier. The main purpose of this high quality

checking is to provide high quality to the end user.

Raw material used by NBC includes… Sugar Co2 Water Ammonia etc

Capacity of Plants

Company is operating with 5 plants at unit one. Out of these 5 plants, 3 are producing only 250

ML RB bottles. While 01 produces 1500 ML (PET) & 1000 ML (Glass) bottles Plant 2 produces

1000 ML (PET), 300ML (NR) and 1500ML (PET) bottles. Capacities of each plant are as

follows:

Plant #250ML(RB)

1000ML( RB)

1500ML (PET)

1000ML(PET)

300ML (NR)

P # 01 - 1100 Cs/hr 600Cs/hr - -

P # 02 - - - - 300Cs/hrP # 03 1500Cs/hr - - - -P # 04 1250Cs/hr - - - -P # 05 1375Cs/hr - - - -



There are 3 more plants working at unit 2 in which two plants are busy in the production of

500ml, 1000ml and 1500ml NRB (pet) while the 3rd plant is producing 250ml of slice (RB). The

two plants at unit 2 are totally automatic with fewer requirements of labor and remaining are

manual with little automatic functions.

Company also started manufacturing of mineral water called “Aquafine” in two packages of

600ML and 1500ML and for this purpose it installed a separate plant.

Quality Control

Quality control is the basic organizational objective of NBC. Quality check is made from zero

level to final products. For this purpose samples are taken from the production to check the

quality. This sampling is done after each an hour or half an hour. These samples are tested

according to the PCI standards

Production staff

Employees are directly involved in the production process. Whereas the helpers are the indirect

employees Moreover direct supervisor and helpers are also there. Indirect employees are about

350 in number, who are not directly involved in the production process but they are essential part

of the production department.

Laboratory

In order to maintain the high quality the plant has a well equipped lab. Laboratory is sufficient to

measure the standards and to test syrup of different flavors. The well equipped lab enables the

smooth flow of production process.

Product line

The major brand of NBC is Pepsi 250 ml, having highest market share which is 47% as

compared to other brands. The other brands produced by the organization are…



Pepsi Mirinda Teem 7up 7up Free Mountain dew Slice

Production Process

Production process is a complete cycle of interrelated activities which is as follows…

First time light inspection after taking the empties to the conveyer with the uncaser by the shipping dept.

Empties shifted to the washer for washing In washer the empties washed with hot, caustic water and then finally with fresh water. After washing, bottles again pass through the light inspection. After 2nd time light inspection the empties move towards filler The filler filled the empties with liquid and then move them towards bottle neck

covering machine Then the 2nd last step is of coding in which specific codes are assigned to each bottle

containing date, time and chemist name. Finally bottles pass through the 3rd & last light inspection where the level, dirt are

inspected in the liquid. The bottles are ready to use.





Audit and Taxation Department

In NBC, audits take place annually. The audits are made according to the defined rules by Govt.

Records are maintained both manually and computerized. The revenue submission date to the

bank is 15th of each month. When the audit is conducted by the government, the company has to

present the invoices of purchase in order to get rebate on the foreign purchases. These items

come under no tax category. All the departments are being audited by the audit department. For

the taxation purpose the taxes are implemented on the basis of the purchase. If purchases are

made locally there will be a tax and if purchases are from the international market there will be

no taxes.17% sales tax is implemented on the domestic sales.

Sales tax and Excise Duty rates are…

Sales tax is 17%. Excise duty is 12% which the company pays to the government.

Type of taxesNBC Beverages has to pay two types of taxes.

Input Tax Output Tax

INPUT TAX

Input tax only claimed at the production related items such as sugar, concentrates and other

items. Such taxes are implemented on the imports too. But such imported items have to come

under the production process.

OUTPUT TAX

Output tax is implemented on the sales.

At the end the tax is calculated as:

Output tax – input tax = actual tax which has to be paid



Purchase and Procurement department

As it is clear from its name, the purchase and procurement department deals with purchase of

raw material and other materials when they are required. Its main purpose is to purchase the raw

material at a lower cost with high quality. For instance, we can say that the purchase department

is the important tool which gets the cost efficiency. NBC doesn’t rely on one supplier because

this strategy can create the monopoly of that single supplier so the NBC use to have the different

and more than one supplier.

Purchase Process

When store informs the purchase department about the purchase of a particular item, the

purchase department gets information about the prices of desired items. At this level quotations

are required by the department from its different suppliers. On receiving these quotations the

selection of supplier is based on the low price and high quality. Another procedure is the

negotiating the prices with the supplier. In this case the prices are settled at the desired level.

After setting the prices, the order is placed to the supplier. When the goods are received their

physical verification is done and in case of any shortage or poor quality product the respective

supplier is informed. In this case the supplier has to bear the charges of shortages or low quality.

In case of events like 14th August, Eid, Festivals Purchase department had to manage the supply

at least 15 days before the occurrence of the event, because the production increases in these

days due to high demand in the market.

Suppliers

NBC has both local and international suppliers of glass and pet bottles who are approved by the

Pepsi Cola International, these are…

Balochistan Glass Factory Karachi Standard Manufacturers Lahore Plasco Plastics Hattar Ghani Glass Peshawar Concentrate from PCI



Crystallite Products (Pvt.) Ltd Kaas-ul-Musaffa Karachi

Supplier Selection

Supplier selection is made mostly according to their quotations in which the two factors have

main focus. These are

Quality Price

Domestic and Foreign Purchases

The purchases in NBC beverages are made from two sources;

Domestic Markets Foreign Markets

Domestic Purchases

The purchase made from the country is called domestic purchase. It includes the purchase of

sugar, co2, and for the factory it includes office stationery, vehicles spare parts, glass bottles, pet

bottles, spare parts of production machinery and vehicles for transportation.

Foreign Purchases

The purchases made from the international markets are called foreign purchases. Concentrates

are provided to NBC by the Pepsi Cola International, crowns and heads of the bottles are also

imported from Turkey and Dubai. The machinery is also purchased from the foreign markets



Marketing and Sales Department

Sales and marketing department is the most important department for NBC because the

efficiency of sales wholly depends on it. It boosts up the sales and the profit of the organization.

This department required more sensitive decision making and proper planning as well as

management. NBC has experienced hardworking and committed staff to perform the sales

functions up to the mark to meet the requirements of this process. The efforts of the staff are

admirable because we can see that in Pakistan 67% of share is held by the Pepsi brand.

Marketing Department deals with the following basically… Market Development Outlet Tactical analysis and routine planning of market strategies. Competition activity monitoring TOT’s Management & Integrity Publicity Management Time Management EDS (Every Dealer Survey) Retail Audit Stock Verification New Account Development (NAD) Publicity Verification Special Assignments

Market Development

The first and the most basic job of the sales and marketing department are to plan, develop and

make targets. They make strategies to achieve those targets and develop the market. Especially

sales people are assigned monthly, quarterly, annual targets of the liquid sale. The following

major factors are considered in this respect.

Collection of all the data about each and every distributors/ outlets, about its sale, volume and growth.

Finding the gaps in the market where there is a potential (New Accounts Development). Finding the points where competitor is strong and how we can break this point. Location of non-traditional shops where potential is available for the beverage. Different offers must be given to break the competitors point or win the mix point.



Outlets

Outlets play an important role in strengthening the market. By monitoring them you can build

your market, have their loyalty and increase your sale. Sales persons continuously visit outlets,

listens their complaints and satisfy their needs and requirements. They must have information

about each and every outlet, its growth, and volume. Proper is maintained to get the feedback

from the shopkeepers

Tactical Analysis & Routine Planning Of Market Strategies

On the market side the sales people gather information and on the basis of this information they

further plan and improve their strategies.

Checking of the designated area, its sale, volume and growth. Calculation of daily sales achievements on monthly target basis Location of the poor performance factors and analyzing their cause Finding their solution and getting the approval for its execution. Planning for a schedule for the designated area. Visiting the area according to the plan and reporting it to the higher management

Competition Activity MonitoringOn the other hand a constant intention has been given to the competitor’s activities, strategies

and offers. They have been compared with ours and updated according to the environment.

Following are the key factors to be noted in respect of the competitor:

Discounting, Promotional schemes, empty management, Cash credit, Vehicles injection (etc.) Reporting to the higher authority. Taking action to block the competitors activities and monitoring Our

TOT’S Management

TOT’s means list of items available in a shop, which helps to sell our product conveniently on

priority basis. It is one of the major investments being made by the company. TOT’s

management completely depends upon the Sales force. The factors to be considered are

Data collection about the sale, volume, growth, profitability, size and place of the shop



Record of all the TOT’s. Given to the shopkeeper. Further plan for the injection of TOT’s Checking all the equipment time by time any removing their complaints

Publicity Management

To promote the image of the company and its products, publicity is a major tool. Publicity plays

an important role in the promoting the image in the consumer's minds.

Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent by

focusing the followings.

Location of the area. Arranging the sources and requirements and making priority lists Carefully arranging the publicity execution.

Time Management

Time management is the most important factor especially in a Beverage industry, because it is

wholly dependent on Sales and Marketing Department. And without proper management of time

this department cannot run. Following are the key factors which are to be considered necessary

for the management of time:

Drop size of a specific area. Tonnage of the vehicle for that specific area. Total operational time management Idle time monitoring and elimination. Calculation of outlet knocks time. Calculation of available knock time for each outlet of a specific area. Define and ideal knock time for an outlet. Setting of a comprehensive plan, by considering all the above factors



Every day Survey (EDS)

This activity is based on research and marketing people usually perform this activity. It is

basically checking the each and every shop and gets information that what the shopkeeper is

selling and keeping in the shop regarding beverages. This activity is performed in the form of

teams. Structure of the teams is as follows:..

Team Leader (Marketing & Research Executive MRE) 01

Team Members (Marketing & Research Offices/Surveyor) 03

The following activities are present in EDS…

Market Visit (Data Collection about Shops) Data Analysis Report Preparation

Publicity verification

This activity involves the following tasks to be performed by the marketing department:

Counters Wall Chalking Cabins Plastic Sign Board Road Boards Simple Boards Pan flex

Special Assignments

Special assignments involve the sales promotion schemes verification like under the crown

scheme (UTC) and other schemes which the company offers quite often.



Area of Internship

Internship provides an opportunity to experiment and peruse careers that match academics and

personal interests. Internship is an excellent way to gain experience in a career field while

enjoying the benefits of a liberal arts education. Internship is an necessary exercise of

B.Com(Hons).

There are 9 departments in NBC and I went to the Four departments because of shortage of time.

The departments where I did my internship are…

Market Research and Development

Production

Post Mix

Sales and Marketing

In these departments I’ve learnt a lot and have observed the practical implementation of the

bookish knowledge with the kindness of cooperative staff and departmental heads. So a brief

introduction of my work that I performed in NBC is in the head of “Work Done by Me”





During my internship in the Nau-Bahar Bottling Company, Small Industrial Estate Model Town

Gujranwala, I really enjoyed to work with the staff of Company, from 26 July to 26 August,

2010 and have a wish to be employee of Nau-Bahar Bottling Company. It was almost impossible

to work in all the departments within that limited time. But on my request, the staff of the

company provided me the opportunity to work in the different departments for the sake of

practical knowledge. I am very grateful HR manager Mr. Qamar Bilal and HR Executive Mr.

Basharat Zia that provides me a learning environment in the company.

During my internship training I work in following departments

1. Marketing & Research Department

2. Production Department

3. Post Mix Department

4. Sale Department

I learn a lot of practical things during working in these departments. Working of these

departments which I observe during my internship (as I already discussed) is really admirable.

Nau-Bahar Bottling Company provided us real time learning and for better sake of practical

exposure the head of different departments assigned us some special duties which are as follow.





Assignment of Marketing and Production Department

In first of my internship after my interview with the HR Manger we are sent to the Marketing

and Research department and after acquiring basic knowledge of this department, our head of

department assigned us two assignments which are as under.

They said to us that make a comparison between the Products of PEPSI and COKE.

Analysis of advertisement, Promotion & etc.

Difference between PEPSI and COKE

We make comparison between the products offered by the PEPSI & COKE. And the difference

between the Advertisements and Promotional Activates of the both Companies.

These products are…

Pepsi Cola vs. Coca cola Teem vs. Sprite 7UP, Dew vs. Sprite 3G Slice vs. Splash

Research Method

The research method will be in the form of questionnaire survey specially designed to measure

our variables.

Target Population

Our targeted population is the end consumer of soft drinks from the age of 16 to 35 within the

Gujranwala base. And Shopkeepers as well.



Sample Size

The sample size will be 100 respondents.

The selection area of the sample size independent upon the cost and time considerations.

Sampling Area

The sampling areas are the following…

General Bus Stand Shopkeeper Ruler areas Universities and collages as well.

These areas are selected in order to have a proper mix of high, advantage and low income

categories so that our sample can accommodate variability as present in the true population.



Questionnaire

The Questionnaire is developed to make the comparison among “PEPSI” and “COKE” with respect to their products preferences, advertisement and packaging.Name: …………… Age: …………… Gender: ……………

Q: 1 What you like to have in “Drinks”?o Soft Drinkso Juices

Q: 2 If soft drinks, what brand you prefer to drink?o Pepsio Cokeo Others

Q: 3 Do You aware of the other products that Pepsi manufacture in soft drinks?o Yeso No

Q: 4 If you like Pepsi brand then which soft drink of Pepsi you like more?o Pepsi Colao Teamo 7upo Dewo Miranda

Q: 5 Which brand’s sales are high in market?o Pepsio Cokeo Others

Q: 6 Which brand you prefer more?o Pepsio Coke

Q: 7 What factors affect your selection of a particular brand?o Incentiveso Profitabilityo Supplyo Quality



Q: 8 From your perspective, which brand advertises its products more?o Pepsio Coke

Q: 9 Do you think celebrities attract the consumers to consume a particular brand?o Yeso No

Q: 10 Which brand’s advertisement attracts you more?o Pepsio Coke

Q: 11 Does advertisement motivate you?o Yeso No



The Results on the basis of the question Related on the Research Products preferences, advertisement

Most Prefer Beverage by user

According to the result 70 % respondent said that they world prefer Soft drinks as compare to the Fresh Juices.

Soft drinks Juices0%

10%20%30%40%50%60%70%80%



Most Preferred Soft Drink

In order to understand the soft drink which is mostly used by the consumer we divide it into three

categories.

PEPSI COKE Others.

50 % of the respondents answer that they like Pepsi 35% said they like coke and the rest of the

15 % said they like the other brands.

Pepsi Coke Others0%

10%

20%

30%

40%

50%

60%



Awareness of the other products that Pepsi made

In order to ask about the different products offered by the Pepsi 80% of the respondents said that

they are well aware about the products that are offered by the Pepsi and 20% said no.

Yes No0%

10%20%30%40%50%60%70%80%90%



The drink that will like more offered by Pepsi

Pepsi cola is most likely by the people about 35% respondents said that they like Pepsi cola 30%

said they like teem 15% said they like Dew and 10% like 7UP and Mirinda respectively.

35%

10%30%

15%

10%

Pepsi ColaTeamDewMarinda7up



High Sale of the Brand

67% of the respondents said the sale of Pepsi is high as compare to others 23% respond Coke

and 10% respond others. The reason for the high sale of the Pepsi is the it’s advertisement.

67%

23%

10%

Sales

PepsiCokeOthers



Preference of buying of Brand

Responding to this question 55% people like to buy the Pepsi and 35% like to buy the Coke and

20% others

55%

35%

20%

stock

PepsiCokeOthers



Why shopkeeper select the particular Brand

Incentive Profitability Supply Quality0%5%

10%15%20%25%30%35%40%45%



Advertisement of Different brand

60% respondents say Pepsi Advertise more as compare to Coke.

60%

40%Pepsicoke



Celebrities have an impact on sales of a particular brand

75% respond that celebrities have an impact on sale of the particular brand.

Yes No0%

10%20%30%40%50%60%70%80%



Brand advertisement attract more

60% of the respondents says that Pepsi advertise more as compare to Coke.

Pepsi Coke0%

10%

20%

30%

40%

50%

60%

70%

Conclusion

We draw conclusion on the basis of our research that Coca Cola is proffered by the young

generation and have more share in young generation as compare to Pepsi Cola. But overall Pepsi

have more market share as compare to Coke. Pepsi’s product Dew has more market share as

compare to its competitor product. The reason for the high share of Pepsi products is the

advertisement locally.





ASSIGNMENT OF PRODUCTION DEPARTMENT

After completing our activities in the MRD we shifted into the Production department. For that

purpose we spent One week in production department.

Production of beverage is a huge process; it consists upon different activities like

Water treatment

Syrup production

Co2 production

Production in main shop floor

Quality control lab

I understand working of these very well as I already discussed besides this Our Assistant

Production Manager Mr. Arshad also gave me assignment to discuss various jobs on plant

number 3 and also flow of activities & their cycle time which are as follow




Production Department

Important jobs Of PLANT no: 3

1. Depallettizing2. before Uncaser Inspection.3. Uncasing4. Straw control5. Controls before washer 6. Washer operator 7. Washer helper 8. Light inspection 9. Filler conveyor control 10. Filler operator

1. 11.Filler operator helper 12. Filled inspection13. Packer operator 14. Palletizing15. Shell washer operator 16. Shell controls 17. Supervisors

1. Depallettizing Cycle time: it takes one min to pick 32-35 crates from pallet and put it over the conveyor.What they are doing:

Picking crates from pallet. Putting the bottle over the conveyor. Removing empty pallets so that Fork

lifter can put another crates of bottle and pick the empty pallets.

What they want to do?

They prefer to fellow given instruction by management.

How to improve the Quality of their work?

Using proper way recording the pressure he can put creates on conveyor so that breakage can be reducing.

Work with constant efficiency in full hour is difficult .They pay full attention in first few minutes but not in remaining time,

Diligence is actually the required thing.To inform the supervisor about the broken pallet

2. Before uncase inspection

What they are doing

He will separate the dirty & empty bottles

Separate unrelated brands Withdrawal of straw Separate the broken bottles

What they want to do?

Proper look after of conveyerTo inform the maintenance officer in case of any fault of conveyer Current situation at plant # 3

The person there sits and watches over the bottles that are not a proper way to look in the crate which contains 24.



Bottles so their must be another person on the other side .Otherwise quality can not be control when a person gives only 2 seconds per crate.

3. Uncasing

Cycle time: it will 7 times pick crates in one minute and each time 4 crates will be picked up. Therefore 28 crates in one minute will be picked up.

Duties: what they are doing?

There duty is to set time of Machine To operate the sensor system In case of any fault quickly report to

the immediate supervisor

How to improve the quality?

To make the machine efficient proper cleanliness in required. While leaving his lift he must make machine ready to be properly used by the coming person.

4. Straw control

Duties: what they are doing?

He is to withdraw straw from empty bottle

He will separate the dirty Broken bottles

He is to put the bottle vertically Separate unrelated brands Separate the broken bottles

How to improve the quality

He should look properly in to the bottles so that he can pick up the straw.In case of any fault quickly report to the immediate supervisorLubrication should be done in time.

5. Controls before washer

What they are doing?

He is to withdraw straw from empty bottle

He will separate the dirty Broken bottles He is to put the bottle vertically Separate unrelated brands Separate the broken bottles

How to improve the quality

He should look properly in to the bottles so that he can pick up the straw.In case of any fault quickly report to the immediate supervisorLubrication should be done in time.



6. Washer operator

Cycle time: washer picks 38 bottles in one turn and in one minute it picks 684 bottles in 8 cycles.


He properly put the bottles vertically.Maintain the machine properly. How to improve the quality?

In case of any fault quickly report to the immediate supervisorLubrication should be done in time.

7. Washer helper

He is for help in putting the bottles vertically.

8. Light inspection --empty What they are doing?

Wash hands, wear gulfs, caps uniform. Duty changes after 20 minutes He is to withdraw straw from empty

bottle He will separate the dirty Broken bottles He is to put the bottle vertically Separate unrelated brands Separate the broken bottles To separate Foaming bottle

How to Improve Quality?

More efficient lights can be used

Incentive plan should be proper

Supervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that.

9. Filler conveyor control

What they are doing

He is helper and controls the bottles on line or conveyor.He is also responsible for constant or variable timing of bottle line arrangementQuality control

There trimming of job is very hard so they cannot proper concentrate the job.There pay is same to the new or fresh worker which gives them a lot of disgranceness.There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases.

10. Filler operator

What they are doing? Properly check the plant to remove the

fault. If there is any fault he should informed

the mechanical operator.



He check the level of water in the bottle He also controls the level of water in

bottle by setting the Valve. He also liable to see the line

arrangement of bottle at a time may be one or more.

Properly check the van tube and cone washer.

Wash the filler tank before changing any tank.

Informed the water treatment of provide the water as well the syrup department for syrup and ammonia department for cool gas.

How the improve the Quality?

There trimming of job is very hard so they cannot proper concentrate the job.There pay is same to the new or fresh worker which gives them a lot of disgrace ness.There should be a plan of leave the filler operator and arrange the alternative employees for emergency cases.

11. Filler Operator Helper

Same duties as operator Just difference to stay on Conveyor not on Fuller Machine

12. Filled inspection--Filled


Wash hands, wear gulfs, caps uniform. Duty changes after 20 minutes He will separate the dirty Broken bottles He is to put the bottle vertically Separate unrelated brands Separate the broken bottles To separate Foaming bottle Check low high level

How to improve quality?

More efficient laser lights can be usedIncentive plan should be properSupervisor must look after the process more properly and the girl who is not doing work with concentration should be accounted for that.

13. Packer operator


He is to check the efficiency of machine.

Control the machine work properly and making in time actions to handle all operations.

In case of any fault quickly inform supervisor.



14. Palletizing

Cycle time: he puts 50 crates on pallet in 2 minute.


Picking the filled crates from conveyor and putt on plat

How to improve the quality?

To impose pressure to avoid brakeage of bottles

15. Shell washer operator He is to wash the crates using the water pumpHe is to control pump by managing the ribbon to stop pump disorder

16. Shell controls

These two boys bring the shell over the packer machine Ensures the supply of shells according to the need

17. Supervisors What they are doing?

To keep data of attendance of all the employees of specific plant.

To count that crate is full with 24 bottles

To keep cleanliness Check and balance

*Appendix

Problems

Empties

1. Lack of space.2. Lack of labor.3. Lack of active supervision.4. Lack of control by sales and distribution over quality of empties.5. Employees on daily wages are of low quality.6. No process for producing acceptable empties.7. Redefining job of empty godown (delivery of acceptable empties from warehouses for production).

Fork lifters

1. Routing between empties to the line is not being managed.2. Cycle time is not being optimized.3. Feeding logic is not rationalized.4. Space is not optimized.5. Ready backlog of empties is not optimized.6. No proper operational procedures.7. No traffic control.8. No correlation between work load and resources.

De-palletize

1. No customer-supplier relationship implemented.



Before washing

1. Lack of space for empty inspection before washing (space rationalized).2. Still receiving straws and unacceptable empties on the production line.3. Pre-washing solution had been decided previously but never implemented.4. No active supervision.5. No proper assignation of task.

Washer

1. Management of consumables to be improved.

Inspection of Empties

1. No job description.2. Different tasks assigned to workers instead of one standard.3. The notion of an acceptable bottle is not properly defined to the workers.

Filler

1. SOP not cross functionally agreed, communicated and supervised.

Coding Operator

1. Lacks overall authority.2. No real role in reporting.3. Performance not being evaluated. No job description; function does not exist on paper.4. Lack of recognition.5. Area of supervision too large (2 for 5 lines)

Filled Inspection

1. Low fill / high fill bottles are being drained or taken back to the empties. Some are supplied at mess.2. Maintenance engineers are not coming regularly to fix their problems.

Shell Conveyor

1. Space problem. Shells need to be shifted manually.

Palletize

1. Input / output control left to subcontractors.

Machinery Maintenance

1. No preventive maintenance or compliance to. 2. Unavailability of quality equipment and materials required for maintenance (parts).3. No proper supervision and overall maintenance policy.

Solutions

Allocating areas for SKUs (marking & logic)Defining frequency of lifters: unloading time, sorting time, and delivery time (scheduling logic of empty godown – both areas)Arrangement for unacceptable empties (far from good empties or other godown)Defining role of each empty godown (specific roles)

Equipment required for converting bad empty to good empty (conveyors, tubs, water hoses, etc.)




POST MIX DEPARTMENT

Our 1st day at post mix department we meet with the Assistant Manager Mr. Shafat and the sale

executive Mr. Imran. After the introduction whit these persons they give us brief introduction

about the Post Mix department and about there activates. We visited the contractor of NBC who

makes the Farms for machines. After that we visited the different customers of the Post mix with

Mr. Imran, and makes deals with them. We were assigned to prepare a detailed report about the

post mix department regarding its functions, operations and services.

The post mix department is responsible for installation, maintenance and filling of fountain fresh

(post mix) machine in five districts of Gujranwala franchise

Dispensing is today's "action package" carbonated soft drink in POST -MIX and PREMIX

forms, coupled with compact, high volume, refrigerated dispensing equipment, represent

convenience and increased profits for dealers and profit opportunities for the bottler. There has

been a little growth in the POST-MIX/PRE-MIX dispensing area in the Pakistani Beverage

Market until the 1994's. But now it has grown a lot due to the following factors.

Pressure on retailers to improve selling methods and techniques.

Rapid increases in the volume of soft drink consumption in outlets with storage

remaining limited.

THE IMPORTANCE OF DISPENSING MARKET

Dispensing market varies from country to in size and types of out let. The title on premise

identifies any out left where product can be purchased with or without food for consumption on

or near the premises.

The On-Premise market is one of the most markets in a Bottlers franchise. Its importance in the

continued growth and success of the Bottlers business cannot be under estimated in its effects on:



Profitability Volume growth Consumer awareness Product Visibility Consumer sampling Chilled product sales Impact on take home sales

POST MIX MACHINE

Post Mix machine is U.S. made and it has following main components.

Water Tank Congesture Cooling system Wolves Syrup tank(s) CO2 tank

Post Mix Department installs machine at any suitable place with the cash security of Rs,

30,000. Along with Post Mix machine, they also provide counter, water tank, water filter(s),

disposable glasses, disposable plates, machine maintenance and service. The cooling system is

almost like refrigerator or fridge cooling system. However gas cylinders are attached to the

machine for gas mixing. Syrup and water mix-up happens in wolves’ at-4 C .So the customer

gets fresh, cool product in no time. The water used in fountain fresh machines is acquired from

locally available source; it is stored in water tank and filtered once, twice or thrice depending on

the purity of the water. With one syrup tank of PEPSI, TEAM and 7'up, equivalent of 19 cases

standard bottle is obtained, while syrup cylinder of MIRINDA has the capacity of providing

equivalent of 16 cases standard product.

Until now total 122 has been installed in different districts and approx. 114 are working while

others needs repair. There is further demand of about 100 machines

POST-MIX SYSTEM

The syrup mixed with water and CO2 at the customer account. POST-MIX containers can be

bifurcated in Transfer Tank.

The Post Mix system differs slightly in principle from the PRE-mix system. The difference is

related to the way the finished beverage is produced for sale to the consumer. The bottle fill the



beverage syrup into stainless steel tanks at production plant and transport the tanks to retail

outlets. The operation of POST -MIX system is as follows.

Compressed CO2 Gas flows from the storage cylinder through gas a pressure regulator where it

is reduced to the working pressure of the carbonator, then through a pressure relief valve and

back flow check valve to a juncture where the CO2 line gets divided. One segment going to

secondary regulators and the other to carbonators and the other to carbonator tanks.

The flow of CO2 from the secondary regulators goes to the syrup containers. Syrup flows from

the containers to the refrigeration unit and then to the dispensing valve. The CO2 gas directed to

the carbonator assembly enter a small capacity tank which contains potable water automatically

controlled to a predetermined level in addition to the tank. Its safety valve, the carbonator

assembly includes a motor driven water pump to force the potable water into the tank against the

CO2 pressure. The carbonated water from the carbonator.

Connect dispenser to a separate outlet. Turn power switch ON. Thoroughly flush all incoming

product lines before connecting them to the dispenser. Turn on the water supply and allow the

carbonator to fill completely.

Lift relief valve ring until water flows from relief valve openings. Reliefs ring and allow closing.

Turn on CO2 gas and adjust regulator to 75 psi.

Activate a valve until pump starts. Close valve and allow pump to cycle. Dispense drinks from

each valve to purge and remaining sanitizer from the syrup lines and establish quality

carbonation in the carbonator.

TRANSFER TANKS

The most common packaging from for both PRE-MIX and Post Mix product is the

Stainless Steel Tank. This tank comes as either a single entry or double entry system. Each has



specific advantages and disadvantages. Both PRE-MIX and Post Mix product can be stored in

either single or double entry system

DOUBLE ENTRY TANKS

Double entry tanks have separate gas inlet and liquid outlet plugs. The standard double entry

tank size can hold 18 Liters of product. However the double entry tanks are also available in

other sizes.

SINGLE ENTRY TANK

The single entry tank is generally made of stainless steel and can be obtained in different

sizes. This tank is not commonly used for dispensing soft drinks. To date its use has been within

the brewing industry.

TANK AND CYLINDER REQUIREMENT

One question the reader will need to ask is the ratio between tanks and cylinders per units

purchased. The answer is dependent on these factors:

The length of distribution chains. The sales volume per outlet. The product Mix ( some flavors move faster than others ) Frequency of calls. Control of stock levels.



EXAMPLE OF POST MIX TANK REQUIREMENT

One product tank contains the equivalent of 19 standard cases of 250 ml finished product,

therefore an outlet selling 40 case per week would require the following minimum stock to cover

a basic four flavor installation.

TANKS

Outlet Machine Stock 4 Tanks

Outlet Reserve Stock 1 Tanks

Factory Shipping Stock 3 Tanks

Factory Production Filling 2 Tanks

Total: - 10 Tanks

CO2 CYLINDERS

Outlet Machine Stock 1 CylinderOutlet Reserve Stock 1 CylinderFactory Stock 1 Cylinder

Total: - 3 Cylinders

DISPENSING DEPARTMENT STRUCTURE

In a simple way, the department can be considered to have four main functions.

Sales

Security Deposit Receipt. Legal Agreement papers. Installation site sheet Installation & pick up order Quality control functions.

Services Preventive maintenance card Wastage Record.



Complaints log. Spares usage Record Quality control & sanitation.

Delivery

Delivery Card. Sales History Card Account Cash Record

Workshop

Daily sale & stock report Issue / Collection slip. Future needs Technical Development. Repair Section Store Section

Post Mix Officer Responsibility

1. Customer Service.2. Conducting Annual surveys of accounts.3. Preparing a sales plan for growth in conjunction with the Post Mix Manager.4. Grouping accounts into geographic routes for delivery5. Helps in selection of sales man cum technicians.6. New outlet development.7. Existing outlet development.8. Merchandising 9.9. Quality checking

Outlet Selection

Dispensing equipment is very expensive and therefore every care must be taken to ensure that

the outlet have proper annual yield. As with any installation of Post-Mix equipment, it is

important to first undertake a site survey. Until this is done it is not possible to ascertain the

equipment required. The points that need to be checked are…

1. Volume through put.2. Type of unit required & space for product tanks3. Construction, alteration and other details.



4. Water and electrical requirements.5. General Details and deliveries.6. Proper space for air circulation.7. Dealer and staff are trained or not.

The machine is normally installed in parks, shopping centers, college canteens, ice-cream

parlors, busy roads, burger comers etc. The department is having five vehicles for visits of each

machine after every two days. Different routes are planned in various areas. With every

route/vehicle, there is a technician, driver and helper. The purpose of the route is to replace

empty syrup tank, cleaning and maintenance work of machine and resolve any complaint.

Special routes are arranged in case of urgent complaint or immediate syrup tank requirement.

The technician also performs the job of salesman. Cylinders are delivered on cash and it is

responsibility of technician to collect cash and later submit it at cash office. During the route,

they have to arrange their meal for which no allowance is given. Technician s get a commission

of Rs. 2.50 per cylinder sale. Currently sales

Officer is in charge of the post mix department and performs his job as well.

Various forms/documents/reports used in the department are:

Post Mix installation/removal orders Duty slip Overtime register Main store requisition Daily complaint register Daily technician report Part/outlet wise sales report Requisition for publicity Daily post mix report Individual technician files Party wise profiles

Interaction with others Departments

Post mix has interaction with following departments Shipping Accounts Stores



Publicity Workshop MIS Audit

Problems

There is job dissatisfaction and very low motivation on the staff due to:

Low salary Daily allowance has been eliminated Overtime is rewarded in terms of holidays not in monetary terms. According to

technicians, they normally do not get a chance of making allowed vacations due to workload so the extra holidays are of no use for them.

Higher positions are filled from outside, people within the department should be promoted to the chief technician and sales supervisor level.

Technicians perform the responsibility of salesman for which they get just Rs. 2.50 per cylinder that is very low.

Computer is present in the S.O. office but no one in the department is really qualified to get use of it.

Sales targets are set without the consent of staff. Post Mix staff has no knowledge of ISO.

During the route riding, I observed following points

The key issue is proper and compatible combination of technician, helper and driver. These people should work as a team in the field and must possess the characteristics that make a team successful i.e. technical competence, trust ----.

The group should move with full preparation i.e. all required slips, necessary tools, tested equipment.

The routes must leave at least till 0:30 A.M. The vehicles must be fit and available on time. It is in their best interest and makes their

job safe, convenient and speedy. The new machines are not available for installation. Used machines and counters make

shopkeepers unhappy. The behavior of the staff with shopkeepers is generally good. The outlet owners have the

Post Mix office number complaints and the response is efficient.



SUGGESTIONS

Fountain fresh department is an area which requires much more attention. Though currently it is

working with its capacity and covering five districts with a smart staff. The organization should

take it as a SBU and concentrate on it because of

High expected growth PEPSI has currently no competition in this area No problem of empty It does not requires a huge plant setup and works with simple setup and very low

overhead No chance of fake bottle

So the sales can be increased dramatically by better management and boosting up Post Mix department.





Sales Department

The last week we spend in the sale department. After basic Introduction about Sales’ department

and Distribution Head Mr. Hussain Ali Sehgal. He gives us brief history of the sale and

distribution and way of distribution by NBC. There are 2 types of sales System…

TU (Territory University) Non TU (Non Territory University)

TU system

A system of distribution in which the company main focus is on the consumer because the

consumer is the most important and the role of middle man is abolished. Now CR deals in places

of middleman.

Non TU system

A system of distribution in which company give to manufacturer and manufacturer gives to

distributer and distributer give to the retailer and finally product reaches to the final consumer.

Company does not know about their consumer.

Working of the Sales force of the NBC…

2-3 Customer representative work under the supervision of Area development Manager 2-3 Area development Manager work under the supervision of the Unit Manager 1 Unit manager control the 1 city 2-4 Unit manager are controlled by the Sales Development Manager 5 Sales Development Manager Supervised by the Manager



NBC have a total 5 Sales Development manager. And NBC is 50% TU based and 50% Non TU

based

Non TU Base Area

Muridke Kamoki Hafizabad Daska and Outstation.

TU Base area

Shekhupura Shadra Gujranwala Gujrat Jehlum Sialkot



Assignment Given By Sales Department

They give us assignment to conduct a market survey for this purpose we make two type of questionnaires; Consumer Questionnaire, Retailer Questionnaire.

Consumer Questionnaire

Name:_________ Gender:___________

1. What is your age?a)15-24 b)25-34 c)35-44 d) 45-54 e) 55 and above

2. Which soft drink brand do you prefer?a) Pepsi b) Coca Cola c) Gourmet d) Others

3. Why you prefer the above mention brand?a) Prices b) Taste c) Availability d) Status

4. Which drink you prefer of this brand?__________

5. How often do you purchase soft drink?a) Daily b) Weekly c) Twice a Month d) Monthly

6. How much you drink?a) 1-3 b) 4-6 c) 7 and above

7. Which pack do you mostly purchase?a)250ml b) 300ml c)500ml d) 1 liter e)1.25 literf) 1.5 liter g) 2.25ml

8. Which juice do you like?a)Shezan b)Slice c)Splash d)Benz e)Nestle

9. Why you give preference to this juice?a)Healthy b)Price c)Taste d)availability e) Status

10. Do you drink mineral water?a)yes b) No c)Occasionally

11. Which brand of mineral water do you prefer?a)Nestle b)Aquafina c)Kinley d)Sufi e) Others

12. Why you prefer above mention brand?a)Price b)Quality c) Availability

13. Does your preferred brand easily available at your door step? a)Yes b)No

14. Do you like the advertisement of your preferred brand? a)Yes b)No

15. Which other brand advertisement you like?____________________________________

16. Reasons of liking the advertisement?__________________________________________________________________________________________________________________________________________________________________________________________________________________



Retailer Questioner

Shop Name: _______________Location______________________

1. Which brand of soft drink you have?a) Pepsi b) Coke c)Gourmet d) A and B e) Others

2. Which brand customers demand from you?a) Pepsi b) Coke c) Gourmet d) Others

3. In which pack?a)250ml b) 300ml c)500ml d) 1 liter e)1.25 literf) 1.5 liter g) 2.25ml

4. Which brand you prefer for customer?a) Pepsi b) Coke c) Gourmet d) Others

5. In which pack?a)250ml b) 300ml c)500ml d) 1 liter e)1.25 literf) 1.5 liter g) 2.25ml

6. Reason of preference?a) Margins b) Investment by Company c) Demand by Customerd) If others Specify?

7. Which age group people purchase soft drink from u?a)12-18 b)18-33 c) 33-45 d)45 and above

8. On a Scale of 1-5 which product of this brand is mostly selling by you?1) __________ 2) _________ 3)_________ 4)_________5) __________

9. Which age group people Purchase juices from you?a)12-18 b)18-33 c) 33-45 d)45 and above

10. Which juice Is mostly demanded by the Customer?a)Shezan b)Slice c)Splash d)Benz e)Nestle

11. What would you prefer for Customer?a)Shezan b)Slice c)Splash d)Benz e)Nestle

12. Why?

_____________________________________________________________________________________



Analysis of Our Survey

As it is discussed earlier that the in sales department I was assigned a market survey regarding

advertisement, demand market share among beverages. For the attainment of this purpose we

developed 2 different questionnaires to collect the opinions of the retailers and consumer. Those

questionnaires are pasted in this report. Our sample size was 100. We went to the individual

retailers and consumer to get the particular information.

After getting the filled questionnaires I came to know that the demand of Coke in young

generation is high with respect to Pepsi because of its taste and quality while in rural area the

Pepsi is more popular than coke. From retailers view point at the present times the Pepsi have the

high popularity and demand but they consider that in the near future the coke will become the

market leader in beverage industry because of change in preference of people day by day.

Now regarding advertisement the Pepsi’s advertisement is high in comparison with coke. Pepsi

Co.’s target is to hit the common man while coke is highly status conscious as well consumer

like the advertisement of Pepsi because of it day to day innovative adds as we can see the add of

Mountain Dew.

As we consider the juices, recently Pepsi Co. introduced its juice “Slice” which has a strong

impact on other juices market. It snatched the share of Shezan (old brand) as well. Slice has its

low availability but high demand. NBC considering this gap among demand and supply seriously

and planning to minimize it in the near future.

The coke has also introduced its juice names “Splash” to compete in market but badly failed. It

also introduced its another soft drink names 3G against Mountain Dew but it is still not in the

position to attract the market as compare to Mountain Dew.



Financial Analysis

Definition

"Financial statement analysis is the process of identifying of financial strengths and weaknesses

of the firm by properly establishing relationship between the items of the balance sheet and the

profit & loss account," and it is done through ratio analysis.

Comparative study

“In this study we analysis the proportional change in two years”. Here the comparative study of

2008 with 2009 done then graphically represents the Change between two years.

Raito Analysis

Ratio means “one number expressed in term of another a ratio is statistical yardstick by mean of

which relationship between two or various figures can be compared or measured. Here we are

going to explain the ratio analysis of PepsiCo Inc, and Subsidiaries which is little bit different

from other organizations.

Financial ratios can be divided into the following five parts

A. Liquidity ratios

B. Activity ratios

C. Solvency ratios

D. Profitability ratios

E. Market ratios





Income Statement:

(in millions expect per share amount) 2009 2008Net Revenue $43232 $43251Cost of Sale (20099) (20351)Gross profit 23133 22900Selling, general and administrative expenses (15026) (15877)Amoritization of intangible assets (63) (64)Operating Profit 8044 6959Bottling equity Income 365 374Interest expenses (397) (329)Interest income 67 41Income before interest and Taxes 8079 7045Provisions for income Taxes (2100) (1879)Net Income 5979 5166Less: Net income attributable to noncontroling interest (33) (24)Net Income attributable to Pepsi Co 5946 5142Net Income attributable to Pepsi Co common sharesBasic 3.81 3.26Diluted 3.77 3.21



Balance Sheet:

(in millions expect per share value) 2009 2008AssetCurrent AssetsCash and cash Equivalents 3943 2064Short-term investment 192 213Accounts and notes receivable, net 4624 4683Inventories 2618 2522Prepaid expenses and other current assets

1194 1324

Total Current Assets 12571 10806Property, Plant and Equipment, net 12671 11663Amortizable Intangible Assets, net 841 732Goodwill 6534 5124Other nonamortizable intangible assets 1782 1128Nonamortizable Intangible Assets 8316 6252Investments in Noncontrolled Affiliates

4484 3883

Other Assets 965 2658Total Assets 39848 35994



Balance Sheet:

(in million expect per share amount) 2009 2008LIABILITIES AND EQUITYCurrent LiabilitiesShort-term obligations $ 464 $ 369Accounts payable and other current liabilities 8127 8273Income taxes payable 165 145Total Current Liabilities 8756 8787Long-Term Debt Obligations 7400 7858Other Liabilities 5591 6541Deferred Income Taxes 659 226Total Liabilities 22406 23412Commitments and ContingenciesPreferred Stock, no par value 41 41Repurchased Preferred Stock (145) (138)PepsiCo Common Shareholders’ EquityCommon stock, par value 1 2/3¢ per share 30 30Capital in excess of par value 250 351Retained earnings 33805 30638Accumulated other comprehensive loss (3794) (4694)Repurchased common stock, at cost (13383

)(14122)

Total PepsiCo Common Shareholders’ Equity

16908 12203

Noncontrolling interests 638 476Total Equity 17442 12582Total Liabilities and Equity 39848 35994





Liquidity Ratios

A firm’s ability to satisfy its short- term obligations as the become due.

Interpretation:-

Current Ratio

The current ratio is Increasing that’s means the total assets against the total liabilities has been

increased. And firm is in better position.

Quick Ratio

The quick ratio also increasing its mean our inventory converted quickly and become the part of

production.

Absolute Liquid Ratio

The absolute quick ratio increasing it means we can easily pay our debts.

Working Capital

Working capital also increases so we can meet our daily expenses easily.


Ratios Year2009

Year2008

Comments

Liquidity RatiosCurrent Ratio 1.44 1.23 GoodQuick Ratio 1.14 0.94 GoodAbsolute Liquid Ratio 1.00 0.79 GoodWorking Capital 3815000 2019000 Good


Debt Ratio

The debt position of a firm indicates the amount of the other peoples ‘s money being used to

generates profits.

Interpretation

Debt Ratio

The debt position of a firm indicates the amount of the other people’s being used to generate

profits. Debt ratio shows the firm assets financed by the others. This ratio decrease from last year

which indicates that lesser assets are financed by the outsiders.

Time Interest Earned Ratio

Time interest earned ratio indicates the firm ability to pay the contractual interest payments.

This ratio decrease from last year.


Debt RatiosRatios Year

2009Year 2008

Comments

Debt Ratio 0.56 0.65 GoodTime Interest Earned Ratio 21.18 22.29 Poor


Profitability Ratio

The Ratio which is used to indicates the overall profitability of the firm. As a group, these

measures enables the analyst to evaluate the firm’s profit with respect to a given level of sales, a

certain level of assets, or the owner’s investments.

Interpretation

Gross Profit Ratio

The Gross Profit Margin with respect to the previous year is increase and indicates that our

production cost is less from last year.

Operating Profit Ratio

Operating profit margin is increasing its mean our profit margin increase as compare to

expenses. Firms operations become effective and save the operating cost.

Net Profit Ratio

Net profit also increases that shows our expenses of Tax and our expenses for interest decrease.

Earning Per share

Earning per share also increasing that is due to increase in Net profit Margin.

Return on Equity

Return on equity also decreasing because of net profit.

Return on Total Assets

Return on Total Assets showing increasing trend. Its firm is using its assets optimally.


Profitability ratiosRatios Year

2009Year2008

Comments

Gross Profit Ratio 53.50% 52.95% GoodOperating Profit ratio 18.60% 16.10% GoodNet Profit Ratio 13.83% 11.94% GoodEarning Per Share 3.33 2.88 GoodReturn on Equity 35.16% 42.14% PoorReturn on Total Assets

14.92% 14.28% Good


Activity Ratio

Measure the speed with which various accounts are converted into sales or cash-inflow or

outflow.

Interpretation

Inventory Turnover

The inventory turnover ratio decrease by some points and it’s unfavorable for our operation of

business. Its mean the inventory less rapidly become the part of production.

Average collection Period

Average collection period is decreased this is favorable for the company. This means company is

better position to recover its credit.

Total Assets Turnover

Total Asset turnover is decrease because we are not properly utilized the assets it’s become the

cause of less sales volume.


Activity RatiosRatios Year

2009Year2008

Comments

Inventory Turnover 7.68 Times 8.07 Times PoorAverage Collection period 38.50 Days 39 Days GoodTotal Assets turnover Ratio 1.08 1.20 Poor


Market Ratio

Relate a firm’s market value, as measured by its current share price, to a certain accounting

values.

Interpretation

Price Earning Ratio

Price Earning Ratio decrease with respect to the previous year .Price earning ratio decrease its

shows the company performs is not up to the secondary market.

Market Book Ratio

Market Book ratio increase because our equity or retained earning increase so automatically its

effects the market /book ratio.


Market RatiosRatios Year

2009Year2008

Comments

Price Earning Ratio 15.02 24.71 PoorMarket/ Book Ratio

3.33 2.88 Good


TREND ANALYSIS

In trend analysis we done two types of analysis, these are

1. Horizontal Analysis

It is conducted by setting consecutive balance sheet, income statement side-by-side and

reviewing changes in individual categories on a year-to-year or multiyear basis.

A comparison of statements over several years reveals direction, speed and extent of a trend(s).

The horizontal financial statements analysis is done by restating amount of each item or group

of items as a percentage.

2. Vertical Analysis

Like horizontal analysis this can also done for balance sheet and income statement. Here we

assign 100% value to any key item of balance sheet or income statement and then see portion of

other items in this percentage.





Description 2008 2009 % Change

Comments

Net Revenue 100 (0.04) UnfavorableCost of Sale 100 (1.23) FavorableGross profit 100 1.01 FavorableSelling, general and administrative expenses 100 (5.35) FavorableAmortization of intangible assets 100 (1.58) FavorableOperating Profit 100 15.59 FavorableBottling equity Income 100 (2.40) UnfavorableInterest expenses 100 20.66 UnfavorableInterest income 100 63.41 FavorableIncome before interest and Taxes 100 14.67 FavorableProvisions for income Taxes 100 11.76 UnfavorableNet Income 100 15.73 FavorableLess: Net income attributable to non-controlling interest

100 37.50 Unfavorable

Net Income attributable to Pepsi Co 100 15.63 Favorable





Description 2008 2009 % change

Comments

AssetCurrent AssetsCash and cash Equivalents 100 91.03 FavorableShort-term investment 100 (9.85) UnfavorableAccounts and notes receivable, net 100 (1.25) UnfavorableInventories 100 3.80 FavorablePrepaid expenses and other current assets

100 (9.81) Unfavorable

Total Current Assets 100 16.33 FavorableProperty, Plant and Equipment, net 100 8.64 FavorableAmortizable Intangible Assets, net 100 14.89 FavorableGoodwill 100 27.51 FavorableOther non-amortizable intangible assets

100 4.78 Favorable

Non-amortizable Intangible Assets 100 1.02 FavorableInvestments in Non-controlled Affiliates

100 15.47 Favorable

Other Assets 100 (63.69) UnfavorableTotal Assets 100 10.70 Favorable



Description 2008 2009 % Change

Comments

LIABILITIES AND EQUITYCurrent LiabilitiesShort-term obligations 100 25.74 UnfavorableAccounts payable and other current liabilities 100 (1.76) FavorableIncome taxes payable 100 13.79 UnfavorableTotal Current Liabilities 100 (0.35) FavorableLong-Term Debt Obligations 100 (5.82) FavorableOther Liabilities 100 (14.52) FavorableDeferred Income Taxes 100 191.59 UnfavorableTotal Liabilities 100 (4.29) FavorableCommitments and ContingenciesPreferred Stock, no par value 100 - -Repurchased Preferred Stock 100 5.07 FavorablePepsiCo Common Shareholders’ EquityCommon stock, par value 1 2/3¢ per share 100 - -Capital in excess of par value 100 (28.77) UnfavorableRetained earnings 100 10.33 FavorableAccumulated other comprehensive loss 100 (19.17) FavorableRepurchased common stock, at cost 100 (5.23) UnfavorableTotal PepsiCo Common Shareholders’ Equity

100 38.55 Favorable

Non-controlling interests 100 25.39 FavorableTotal Equity 100 38.62 FavorableTotal Liabilities and Equity 100 10.70 Favorable





Description 2009 2008 % %

Net Revenue 100 100Cost of Sale 46.49 47.05Gross profit 53.50 52.95Selling, general and administrative expenses 34.76 36.71Amortization of intangible assets 0.15 0.15Operating Profit 18.60 16.09Bottling equity Income 0.85 0.86Interest expenses 0.91 0.76Interest income 0.15 0.09Income before interest and Taxes 18.68 16.29Provisions for income Taxes 4.85 4.34Net Income 13.83 11.94Less: Net income attributable to non-controlling interest

(0.07) (0.05)

Net Income attributable to Pepsi Co 13.75 11.88





Description 2009 2008Asset % %Current AssetsCash and cash Equivalents 9.89 5.73Short-term investment 0.48 0.59Accounts and notes receivable, net 11.60 13.01Inventories 6.56 7.00Prepaid expenses and other current assets

2.99 3.67

Total Current Assets 31.54 30.02Property, Plant and Equipment, net 31.79 32.40Amortizable Intangible Assets, net 2.11 2.03Goodwill 16.39 14.23Other non-amortizable intangible assets

4.47 3.13

Non-amortizable Intangible Assets 20.86 17.36Investments in Non-controlled Affiliates

11.25 10.78

Other Assets 2.42 7.38Total Assets 100 100


Description 2009 2008 % %

LIABILITIES AND EQUITYCurrent LiabilitiesShort-term obligations 1.16 1.02Accounts payable and other current liabilities 20.39 22.98Income taxes payable 0.41 0.40Total Current Liabilities 21.97 24.41Long-Term Debt Obligations 17.57 21.83Other Liabilities 14.03 18.17Deferred Income Taxes 1.65 0.62Total Liabilities 56.22 65.04Commitments and ContingenciesPreferred Stock, no par value 0.10 0.11Repurchased Preferred Stock (0.36) (0.38)PepsiCo Common Shareholders’ EquityCommon stock, par value 1 2/3¢ per share 0.07 0.08Capital in excess of par value 0.62 0.97Retained earnings 84.83 85.11Accumulated other comprehensive loss (9.52) (13.04)Repurchased common stock, at cost (33.58) 39.23Total PepsiCo Common Shareholders’ Equity

42.43 33.90

Non-controlling interests 1.60 1.32Total Equity 43.77 34.95Total Liabilities and Equity 100 100






SWOT Analysis

SWOT analysis means the analysis of internal and external environment.

Internal environment refers towards the strengths and weaknesses of an organization while

external environment refers towards the opportunities and threats. We conducted the SWOT

analysis of NBC which is given below…

Strengths

Good strategy adoption

The strategies related production and supply of their product are really admirable

and these strategies play a vital role in capturing the market share.

Customer Positioning

Pepsi Co. creates its good reputation in the market as compare to other brands and

consumers positioning is high.

Experienced Staff

Pepsi Co. has well experienced, competent and committed staff in marketing

department with high marketing skills and because of this advantage they are

grasping the high market share.

Focus on Differentiation

Differentiation is a tool which plays a vital role for success in the competition and

NBC always prefer to be different from its competitors.

Revenue Growth

Their domestic organization achieved revenue growth from a healthy pricing

environment, strong field execution, and effective innovation as their diet, water

and flavor portfolios partially compensate a continued shift away from their Pepsi

trademark.

Revenue growth and cost management offset a relatively more volatile raw

material cost environment. The profitability of their international business



continued to improve and it has become a more significant contributor to their

performance.

Sponsorship

To increase its popularity and awareness among people the Pepsi sponsors cricket

matches which plays a vital role in its promotions.

Strong Distributors

Pepsi Co. search strong, experienced, devoted and loyal people. Basic

requirement of them is financially strong people, devoted with product, loyal with

company and involve in their business.

Weaknesses

No Proper InfrastructureThere is no proper structure within the organization like work space problems etc

due to which employees got exhausted.

Low Wage Rate

Low wages for the employees and the other staff with respect to their main

competitor Coke.

Conflict Management

There are so many conflicts and use of politics inside the organization but

management is not taking any serious actions about it.

Fewer Incentives

NBC offer fewer incentives with respect to the Coke to their retailers and

distributors.

High Rate of Discrepancy

Production is good but the have high rate of problems in filling such as

maintenance of level of liquid in filling etc.



Opportunities

Innovation or Cost Reduction EdgePepsi Co. has the opportunity of getting more satisfaction of the customer by

offering the lower cost products in comparison with its competitors or by

providing the high quality, innovative products to its customer as well as the by

the quick responsiveness.

Strategic Planning for Customer Satisfaction

Pepsi Cola strives to create value for their consumers, customers, bottlers and the

community. They believe their success depends on their ability to satisfy their

beverage consumption demands and their ability to add value for their customers.

Nevertheless, attaining efficiency, quality, innovation, and responsiveness to

customers requires a strategic plan.

Opportunity of Penetration

Pepsi Co.’s brands are moving in more than 200 countries. Pepsi Co. has the

opportunity to expand its products in the countries where it is not performing its

functions as well as by providing the high quality product to the existing customer

to retain them.

Opportunity to Attract By Incentives

As Pepsi is a well known brand in all over the Pakistan so it also has the

opportunity to create its value and to attract the customer by offering extra

incentives to the retailers and specially consumers.



Threats

Existing Competitor’s ManagementPepsi Co. has the threat of its competitor which is putting its best to get the

maximum customer satisfaction and to maximize its profits by its active and keen

management.

New Entrance

It is also facing the threats of newly introduced beverages in the market such as

Gourmet, Amrat and Fizz etc. They are capturing market share up to their best

which is not in the favor of Pepsi Co.



Suggestions

Management is not participative because of the group think, their own priorities and

politics within the NBC. The company should use the participative management system

and eliminate the other factors by having a strong and proper check in order to increase

the job satisfaction level of employees.

Company management has to put its all efforts to change the prevailing culture of the Co.

to avoid the mentioned problems such as group think, favoritism, politics etc.

Employees’ turnover rate is very high in the organization. Management should take

effective actions to reduce it.

Latest reorganizing efforts are necessary to make it cost effective also to meet the current

needs of modern environment.

To attract the customer in the future, NBC have to make extensive efforts by offering

extra incentives to retailers and consumers.

The infrastructure of the company is another thing which needs to be improved which

should provide a relaxed working environment to the labor and other staff.

The procedure of taking services from the company must be made easier and straight

forward not involving long difficult procedure for simple tasks.



Conclusion

After going through the whole period of internship as an internee I’ve observed so many

professional activities and learnt as well. This report is basically is a brief explanation of the

activities I’ve observed and learnt from the NBC. NBC is a professional organization with very

cooperative staff which really helps the internees and newly entered employees to make them

aware about the organization. As I mentioned earlier in this report about department where I’ve

done my internship and staff with whose kind cooperation I’ve seen the practical implementation

of the bookish knowledge. I also learn that how to perform the duties in the meaningful ways by

accomplishing my assignments given by the concerning departments heads and their executives.

They were also there to guide me in the ambiguities.

Market and Research Department where I spent one week is a memorable time where Ass.

Manager Marketing Services Mr. Mahmood Ahmed really gave us a tough time about preparing

an analysis based presentation regarding competition among Pepsi, Coke and other soft drink

brands.

Similarly in the Production Dept. we learnt that how the raw material including water, syrup and

sugar are mixed. We also assigned an assignment about calculating the time of an empty from

shipping department to the production until it is not ready to use by the consumer (filling time).

And then in the Post Mix and Sales & Marketing departments assigned us the preparation of

reports about these departments after giving us the relevant information about these. These

reports are dispatched in this report.

Overall I am very satisfied with my internship in Pepsi because now I really have some

knowledge about the practical field and experience as well.



Bibliography

Book Reference:

LAWRENCE J. GITMAN,2005 “Managerial Finance”, Financial statement and Analysis”.58-70

Frank K. Reilly and Keith C. Brown, 2007 “Investment Analysis & Portfolio Management,” Financial Ratios”, 102-113

Websites Reference:

Visited Date Time of Visit

www. pepsico .com/Company.html 15/08/2010 10:21pm

www.sir pepsi .com/ pepsi 11.htm 17/08/2010 3:00 pm

www.nbcpepsi.com 20/08/2010 3:10 am


http://www.nbcpepsi.com/

http://www.sirpepsi.com/pepsi11.htm

http://www.pepsico.com/Company.html


Glossary

Department:

A group of people who work together and possesses similar skills or use same knowledge, tools

or techniques to perform their jobs.

Distributer:

Organization that help other organizations to sell their goods or services to the customers.

Director delivery system:

Distributions system in which company directly distribute its products to the retailers.

Human Resource Management:

Activates which are necessary for the staffing of the organizations and sustaining high employee

Performance.

Knowledge:

A blend of information, experience and insight that provide a framework that can be thoughtfully

applied when assessing new information or evaluating relevant situation.

Management:

The process of using organizational resources to achieve organizational objectives through

planning, organizing, staffing, leading and controlling.

Mission:

A firm’s purpose and where it fits into the world.

Opportunities:

Positive trends in the external environment of the company.



Organization:

A deliberate arrangement of the people to accomplish some specific purpose.

Production:

The process of converting the raw material into finished goods.

Shipping:

Transfer of goods from one place to another desired place.

Strategy:

A cluster of decisions about what goals to peruse, what actions to take and how to use resources

to achieve its goals.

SWOT Analysis:

An analysis of an organization’s strengths, weakness, opportunities and threats.

TOT’s:

TOT’s means list of items available in a shop, which helps to sell product conveniently on

priority basis.

Vision:

An ideal picture of the future of an organization.

DPG:

Duty Paid Godown

RG:

Registered Godown


Documents

Final Internship Report on Pepsi Co