Table of Contents Contents Introduction 1. Part A: Managing Finance 1.1 Roles of financial institutions 1.

2 Interpretation of financial statements of Coca Cola Company 1.3 Management of Finance in Coca Cola 2. Part B: Managing People 2.1 Innovative Human Resource Management (HRM) practices 2.2 Human Resource Management within Coca Cola 2.2.1 Organizing Human Resources at Coca Cola 2.2.2 Training 2.2.3 Leading 2.2.4 Motivation 2.2.5 Controlling 2.2.6 Sales Persons Evaluation System 2.7 Innovation in Coca Cola: 3. Part C: Managing Information 3.1 Information Management and its role 3.2 The elements of information management 3.3 The information life cycle 3.4 Information Management in Coca Cola Conclusion References Page No. 02 03 04 05 05 05 05 05 06 08 08 09 11 11 12 13 13 14 14 15 15 17-18

Introduction This assignment is related with the concept of operation management. After explain the concept of operation management and related terms the writer also evaluated the operation management of a company named Coca Cola Company. Operations management (OM) is the business function that plans, organizes, coordinates, and controls the resources needed to produce a companys goods and services. 1. Part A: Managing Finance 1.1 Roles of financial institutions The roles of financial institutions are critical to modern, functional economies throughout the world. Some of the most important roles of financial institutions include providing credit, enforcing fiscal policy and increase investment opportunities. Different financial institutions may fulfill different roles in an economy; even distribution of different kinds of financial institutions can help ensure that the needs of consumers and investors are met throughout the geographic range of an economy. Because of the growth and development of the financial institutions, a large portion of the world

people can easily get access of liquid money which is very important for a smart beginning. Bank becomes the key place for the people to keep their money safe and also in storing the valuable assets. Besides, the deposit in the bank is always guaranteed for more money in the return which is very significant for the economy and sustainability of the people. It allows the individual to increase its reserves. Besides, the mutual fund and group investment opportunities are opening new windows of collective business in the society and its helping to erase the problem of unemployment and financial insecurity. 1.2 Interpretation of financial statements of Coca Cola Company Financial statements of Coca Cola for 2010 have been interpreted using some important ratios as follows. Liquidity Ratio 1.3 0.9 Profitability Ratio Gross Profit Margin 68.8% Pre-Tax Profit Margin 29.7% Net Profit Margin 20.6% Leverage Ratio Total Debt/ Equity 0.47 Interest Coverage 27.0 Investment ratio P/E Ratio 16.9 Return on Invested Capital 25.1% Current Ratio Quick Ratio

From the above table it can be said that Coca Colas liquidity position is good and it had enough working capital in 2010. The results of the profitability ratios show that the company was very much able to make its sales in profit. The leverage ratio shows that Coca Cola did not used debt in large amount. The result of the investment ratios that it was able make 25.1% return on its invested capital. 1.3 Management of Finance in Coca Cola Managing finance is a core responsibility in Coca Cola Company and the major responsibilities of the finance section of the company isKeeping documents of all the trade dealings is an important task of the financial section of the company. It is required to keep all the documents of financial cost for the trade purpose and the receipt of the payment to the employees and other related expenditure. Its also responsible to keep the income report updated. It is also responsible to check the spending of other departments regarding their allocation. Measuring the financial transaction of the company is a key concern for this department. It is responsible to check the profitability or the loss of the company. Controlling the financial flow of the company is also an important task. It is responsible to pay the bill, debt and the salary of the employees. This department is responsible for keeping enough money in the account so that company can survive in the crucial moment. Taking the important and immediate financial decision is also a crucial task the department handles on behalf of the company. Investment sector and amount also decided by this department. Regarding the new investment opportunities for the company this department gives the final decision as how much money can be invests by the company without taking further risk. The legal responsibilities of the company is also taken by this department as the financial issue like tax report, revenue generation these all are related to the

department. Finance department of the company take the burden of loss or success of earning on behalf of the company. Financial flow is always keep updated by this department. The amount of money going out and coming in is reported by this department and its related to the survival and the expansion of the company. The financial section is the most important part of the Coca cola Company as everything goes via this department and all departments are closely depended on the financial transaction which comes by the hand of this department. One of the most crucial responsibilities the financial department does is maintaining the safe fund for both company and for its employees. Loan sanction and investment is also related task for this department. There is a fixed system practiced by the department which is known as the management and accounting informations system. It is responsible for planning, controlling and also for taking the emergency financial decision for the company. Budgetary and monitoring system is also developed from here. In fact, financial success leads to the future of the company and for Coca cola this responsibility is successfully handling by the fianc department. The regular evaluation system and the proper management of the financial issues are the integral part of the company.

2. Part B: Managing People 2.1 Innovative Human Resource Management (HRM) practices Because of the rapid change in the business culture of the world on behalf of the globalization process, there is completion increasing day by day. Innovation becomes the key word in terms of adopting with the changing dynamics of the business where the HRM department is playing the key role (Sparrow, Schuler and Jackson 2005). Innovative practice alone never brings success for the company at present days (Levine and Olson 2006). There needs to have the practicable implication regarding the innovative ideas taken by the HR department of the company (Schuler and Jackson 2007). HRM practice is basically a method to attract, develop, motivate and retain the workers through an effective policy planning and strong adaptation (Schuler and Jackson 2007). The survival and strength of the company is related in smart HRM practice by the authority. There should have a focus on the employees regarding their skills, creativity and planning towards the success of the company and the intention of the workers in the company about their approach towards the aims and objectives decided by the company (Delery and Doty 2006). HRM practice by the company is to enhance the skill of the employees and to facilitate the worker for a better development focusing the future of the company (Minbaeva 2005). HRM is not only the issue of the company practice, it is equally important to keep the courage and strength in this competitive world to exist. In conclusion, it can be said that HRM practice is all about policy, planning and a sense of motivation for the employees in focusing the success and profit for the company in the long run. Among the several pattern of HRM practice the strategic HRM practice is most applicable in the present world context (Huselid 2005). There are some other approach named contingency and configuration approach (Wright and McMahan 2005). Innovation and practical explanation is the key concern in every strategy regarding the HRM development of the company. According to the study there are 5 core issues are related to the innovation process and these are evaluation of performance, managing the career, rewarding, training and development and finally promotional aspects (Shipton, Fay, West and Patterson 2005). 2.2 Human Resource Management within Coca Cola HR management is in key importance for every organization whatever the size and prospect.

Aiming to a better future there should have a policy planning regarding the HRM development in the company like Coca cola. As an international company, Coca Cola always believes that its people who are most important than the technology regarding the success and failure. So the HRM practice is in high importance by the company. There are various positive sides regarding the HRM practice by the Coca Cola Company. As a global company there are diversities among the region regarding culture, norms, choices of the people and to catch the psychology and read the people appropriately there is a proper HRM needed in the company like Coca Cola and this company is exactly practicing through its strong HRM practice and reaching the heart of the people. To address the diversity in service the company always put strong importance over the HRM practice accordingly. 2.2.1 Organizing Human Resources at Coca Cola Coca Cola Company focuses on the engagement and maintenance of the skilled and efficient employees in the Company for the better service providing and bringing dynamics in the working environment. The policy of the company and the friendly environment makes the employee a home feelings and it is very important to make the feelings of being united and work as a group. Coca Cola Company provides security and insurance to the employees and there are smart retirement service in the company according to the scale and position. There are policy, rules and regulations decided by the higher authority from the very beginning and just because of these strong policies the labor union and other bodies feel comfort to negotiate with the Company if it needs to settle down an important issue. The external orientation and the internal working environment of the company are truly effective to convince the employees and make them to work hard as they are treated properly by the authority. Job Analysis and Designing Job analysis is the process to determine the duty, responsibility and skill that is required for the job and the person who is best suit for this position. It consists of Job description and job specification. Job description: In the job description the responsibility, relationship of the job position with the company, working condition, supervisory issues are included. On the other hand, in the job specification the requirement and the qualities for the job are included. Educational background, previous experience, skills, creative ideas, facing challenge and courageous drive is important as mentioned in the literature regarding the specific requirements. There is own policy for both Job description and job specification by the Coca Cola Company and the company has its own policies to maintain the check and balance regarding the issue. It collects information about the candidate before selection. There are some core features where the Coca Cola Company put more importance like the behavioral issue, previous history, loyalty to the company, qualities as needed to perform better in the company and challenge facing regarding the working context of the company. HRM department of the Coca Cola Company follows the process of HRM accordingly regarding the recruitment, selecting employees, performance evaluation and training for the personal development. Planning and Forecasting: This process decides about the position to be filled in the company by new recruitment and the requirement for that position. To recruit new employees in the company there are some innovative ideas and planning in Coca Cola and it has long tradition in practicing these unique plannings. It focuses on recruiting the employees according to the expectation and the proper positioning regarding the vacancy. The estimation about the needs and demands of the employees is also very important part of the planning in Coca Cola Company. It put importance on the technological development and enhancing the creativity of the employees for better production in the company. Before recruitment the HRM division makes the overall planning

addressing the requirement and the qualities for the position with the facilities provided by the company. It goes to the higher authority for further approval and when the final set up done then the recruitment process begin in the company. Recruitment Process Coca Cola never recruit as standby in the company. When the company needs some employees in different fields, the process of recruitment start in the Coca Cola Company by addressing the position and requirement. General Manager first confirms the recruitment process and then it goes to the HRM division where the rest process takes place. The recruitment always comes from the internal employees in Coca Cola. If there is candidate with all requirements then the company will never go for further search of candidate. Sometimes the HRM division goes through the data bank of its employees and if they get the person with all requirements among the employees it contact with that particular person and ask him to decide. If there is a positive response then he automatically fills the vacancy. Its also better for the company as it does not need to train a new employees who will be there for first time. Generally there are various stages for recruitment and selection. Education and the work experience is the prime concern in the selection process. After the primary screening the candidate should face some repeated test and interview before final recruitment and confirmation. In the interview process the question will be asked according to the position and requirement. After the final selection the candidate ask for rethinking before joining and submitting all the references and necessary materials as required to the HRM division. 2.2.2 Training: In Coca Cola Company the training for the employees has the highest significance. The executive to salesman all have to go through the training process as required in the Company. There are some core features in which the company put an extra importance and these are the ethical issues, intention to know and sole the problems, bringing new ideas and maintaining the entire prohibited task as mentioned in the appointment letter. Dealing with the customer, managing the order, communicating with the dealer and other related issues are addressed in the training process for a salesman in the Coca Cola Company. There is no professional trainer for Coca Cola and the company goes through the video system training for its employees. This training program is not only related to the skill development as also equally important for the promotional prospects in the Company. 2.2.3 Leading Leadership Style: The uppermost position in an organizational hierarchy is the general manager. General manager is generally not directly involved in operational activities but he is the person who takes administrative decisions regarding company policy and operations. To lead and direct the subordinates is the duty of the departmental managers. These leaders mainly put emphasis on: Help each other in business operations that will result in growth of the business. To increase customer satisfaction employees should be encouraged to give new ideas. Managers believe that leadership style used in all the departments of CCBPL is democratic as the environment is very delegate and participative. In a marketing and sales department the concept of team management is widely used as they have to work in dependence of one another. To give a feeling to the subordinates that they are not only the employees but also a member of the family, they are given a reasonable treatment and dealt in a very good manner.

In CCBPL the managers are more likely to work in a team and treat their subordinates as equals. The manager uses a highly open communicative system. As they encourage the employees in decision making and make of use of group discussions they are perceived as participative. To create high involvement from the lower level employees some monetary and non-monetary rewards are used.

2.2.4 Motivation: At CCBPL employee motivation gets high priority. CCBPL uses promotion from within policy and performance basis work as bestowed for promotion. Goals of the organization are very objective and are perceived achievable by most of the employees. In this case performance base motivates employee to work. CCBPL is paying more than the industry average as a result plan also works as a motivational factor. To motivate employees CCBPL also uses different campaigns and competitions between the employees.

Managers get timely feedback about employees activities and managers play a vital role in motivating employees. The most tow important factors in employee motivation at CCBPL areworking environment, and a challenging milestone.

2.2.5 Controlling Objective evaluation is done for the control process. Employees are judged based on some advance fixed criteria and if an employee fails to meet those criteria then he is evaluated for the reasons and managers take corrective actions. Different criteria, reporting and controlling systems vary for different departments. 2.2.6 Sales Persons Evaluation System: To promote the people of an organization to the higher levels of the organization evaluation is very helpful and this process is done on quarterly basis. Many rewards like promotion or monetary rewards are offered to the best salesman, best market developer and best sales manager of the year. This process motivates the salespeople to work hard. A performance development plan has been developed to evaluate performance. At the very beginning of the year targets are set and communicated to each sales manager, each quarter to every market developer and every month to each sales persons and their performance is measured based on the achievements of the targets. Call slips, Route call and call are used to evaluate the performance of the sales people. 2.7 Innovation in Coca Cola: The ability to systematically innovate and deliver new products has made Coca-Cola able to survive and grow in an ever-changing market. The companys earnings growth was 15-20% per year but in late 90s the company faced three straight years of falling profits. Coca-Cola had turned into a beverage company from a single core product to keep pace with the rapidly changing market. It was a major move to Coca-Cola because its past success was based on one successful product. It started to employ a strategy called play to win innovation. The company started decentralization. Coca-Cola is still dominating the beverage industry with 400 different products. It has been possible by the company because of its ability to innovate and adapt to changing market.

3. Part C: Managing Information 3.1 Information Management and its role Information management is a term that is used obscurely in several fields. The word is a synonym of information technology or as identical as data management in computer and its applications (Synott and Gruber, 2005) and in this case the emphasis has given on structures that inludes quantitative data and their relationship to the design of database. According to Synott (2007), Information management is similar to technology management in business or management. It emphasizes on the relationship of information technology to business performance and competitiveness. In an organization efficient and effective exploitation of data, information and knowledge resource management is the main target of information management. Collect data and process them efficiently and effectively to transfer them into information and knowledge that become useful to the organization is the main work of information management. It helps to take appropriate decision by ensuring regular access to accurate and relevant information.

3.2 The elements of information management Information management has been developed based on several strands. First, the need of acquisition, organization, maintenance and use of documents: archives and records management, and librarianship and information science has led to introduction of information management. Other professionals are also interested in the information field, including database design and development, information storage and retrieval, and the economics of information. They can now access any information because of information system. Second, recent development of information technology has worked as a strong formative influence for the use of information system and its growing applications. As the cost of computer based information increased a lot so special attention has been given to the issue of the value of information and cost-benefit relationship in the development of information systems and services. Organizational stuffs sometimes try to hide this kind of cost and the sudden development of information management has put a significant consequent on this kind of cost and reduced in a significant manner and caused the organizations to view information functions in a new ray. Finally, some business schools have contributed in the development of information by giving wide application of information ideas. These applications have applied increasingly in publicsector organizations. It has been widely accepted because of its efficient strategic planning, costbenefit analysis, resources management and marketing. 3.3 The information life cycle Goodman (2005) has set out the life cycle of information management where the idea of document life cycle is in the central of the overall process and it has been derived from records management. Records of life cycle require following the following steps and they are sometimes referred to as document control: design and creation of records; identification; authorization; verification, validation, auditing;

circulation, access, loan, use; back-up procedures and disaster recovery plans; retention schedules and destruction. The life cycle will vary from organization to organization depending on the nature of the information within an organization, the measure used to organize it, the extent of use and the controls put upon the use the life cycle Determination of requirements, collection, processing, use and disposition are five stages that set out a very basic life cycle according to Commission on Federal Paperwork. According to Commission on Federal Paperwork 2007:43, information values must be estimated and measured, and accounted for each of the given stage.

3.4 Information Management in Coca Cola The worlds largest beverage company is the Coca-Cola Company. According to recent data they sell products in almost 200 countries in the world. More than one billion servings of their product are consumed each day. It is very intimating and crucial to maintain the finances and logistics of the Coca-Cola due to size of the company. Legacy system which is the old repository and processes system had been used by Coca-Cola and it proved very inefficient because it wasnt user-friendly and resulted in high costs. Microsoft excel was used for making financial plans but it requires manual re-entrance of available information. Excel spreadsheets were submitted in printed form. This process has made it difficult to combine and renew information. As Coca-Cola had started expanding its business worldwide so, efficient and concise sharing of information was very crucial for their success. Information system was the key issue in CocaCola. Coca-Cola felt the need of establishing an IT that goes far beyond individual finance process. To handle the different aspects of their worldwide corporation an integrated business management system was required by the company. Like many other old companies Coca-Cola started using the legacy system. But they soon realized that if they want to sustain their ever growing business and retain competitive advantage they need to find more rigorous system to manage their global processes. Coca-Cola started to expand rapidly. To manage its financial process throughout the world it decided to incorporate SAP Strategic Enterprise Management (SEM) and implemented mySAP financials into their business. To make financial data accessible to management across the globe, SEM created a single environment. MySAP financials are closely integrated with other SAP systems. SEM is a full proved solution that provides Business Planning simulation for finances and Data warehousing for information collection and data analysis. Financial reports and monthly sales forecasts can be done by this system. MySAP financials has allowed Coca-Cola to merge its business and planning. Without taking valuable space on company hard drives, all financial records can be stored in MySAPs data warehouse. Coca-Cola has implemented a full IT system in its headquarters so that it can manage its total operations all over the world and can monitor every field location from the centralized site. To eliminate intercompany transactions data is organized in a central warehouse and any new information is adjusted frequently so that any new information can be easily consolidated to draft financial reports. When Coca-Cola prepare its financial month end report then it becomes very helpful. Coca-Cola can easily track financial health and growth of the company because all of this data provides baseline information. MySAP BI is used with MySAP financials as a common repository for every location throughout the world. Due to its global expansion Coca-Cola is facing problems in managing its diverse group of worldwide suppliers. To act with the line of its business strategy Think local, act local Coca-

Cola needs to employ an IT systems that takes into account all of their local bottles in the world. For the overall efficiency and customer satisfaction it is crucial to maintain integration between the local bottlers and customers. The key components of bottlers business operations and profit centers are Direct Store Delivery (DSD), full service vending and equipment services. To results in maximize efficiency Direct Store Delivery (DSD) utilize real time information. Customer information is transmitted to distributors through DSD. By following this process DSD improves delivery productivity and reduce cost. Individual stores of Coca-Cola will reduce unsold inventory and maximize profits by improving the specificity of shipments. With on-site requests system, DSD tightly integrates the IT systems of the bottlers to delivery personnel. Any variety of mobile devices can be used by field sales representatives, and service staff to send requests. It has become easier for the stores to respond to their broad range of customer requests. To build a more efficient and comprehensive process mySAP SCM system can be used. Improved customer service and satisfaction can be ensured by improved SCM. An advance CRM system is necessary to utilize customer information to ensure efficient use of this SCM system. To suit the customers' needs it is required that the IT system should be able to handle all the data collected from customers. The collected data will be processed to provide information. As Coca-Cola has started to shift its focus towards their customers so its IT system must also shift its functionality to match this change. According to expectations consumer products companies must be able to meet demand and service requirements on time. Increasing consumer and customer satisfaction is the key for any company to survive and grow in the market environment (Lo Apotheker, executive board member of SAP). Coca-Cola is exactly trying to achieve SAP's Apotheker's philosophy. SAPs CRM system has enabled Coca-Cola to transform its business operations towards the goal of customer focus. To manage order to cash and settlement SAPs CRM provides a next-generation software solution that supports DSD process. To improve their customer service and satisfaction the CRM system will support the existing processes of mySAP. It will help Coca-Cola to improve its services and to provide new functionalities and opportunities. As Coca-Cola is a global company it has many different types of product lines and the new CRM system has built in a way so that it can easily support these diverse lines. Improved merchandising, growth in market share, increasing customer satisfaction, and reduction in logistics costs has been possible by the updated CRM systems. Customer service can also be handled and integrated by using CRM system. The process includes reaching out to representatives in the company for any issues relating to the products. A part of SAP CRM system can be used to handle the contact centers around the word. To ensure the best service practices, this system provides services to the customers through feedback, email, and telephone services. This system also ensures quality monitoring and different types of analyses. CRM system has enabled Coca-Cola to ensure efficient customer service in all aspects of its operations.

Conclusion: Operations management is considered as the core part of any kind of manufacturing business organization. Actually, management operations handle the most sensitive part of the business. It provided the better management process of machines, human resources, workers, technical functions. Strategic manufacturing policy, systems analysis, analysis, productivity and cost control helps to calculate the exact purchase materials to reduce the risks of material cost. Analyze the profitability of the product can help companies anticipate the advantages and disadvantages to avoid, more generally, management activities to enhance the content valueadded activities in any specific process. Basically, the value-adding creative activities should be associated with market opportunity for optimal enterprise performances that help coca Cola

Company know the exact profit. And the statistics established a perfect production to achieve the best quality companies to develop more powerful.

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