UNIVERSITY OF BEDFORDSHIRE FOREIGN TRADE UNIVERSITY

SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS

*** ***

FINAL ASSIGNMENT

OPERATIONS AND PROJECT MANAGEMENT

Code: BSS027 – 2.S1
COCA-COLA OPERATIONS MANAGEMENT

Student: BUI QUYNH ANH FOR EXAMINERS

ONLY
Student ID: 2105025008
Grade (in number):
Cohort: K59BFC ………………..

Semester: I Grade (in words):

………………..
Academic year: 2022 - 2023
Examiner 1
Head teacher: NGUYEN XUAN MINH
(Signature & Full name)
Submission date: 21 Oct 2022
………………..
Student’s signature:
Examiner 2
(Signature & Full name)
………………..

Ho Chi Minh City, October 2022

UNIVERSITY OF BEDFORDSHIRE FOREIGN TRADE UNIVERSITY
SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS
*** ***

FINAL ASSIGNMENT

OPERATIONS AND PROJECT MANAGEMENT

Code: BSS027 – 2.S1
COCA-COLA OPERATIONS MANAGEMENT

Student’s full name: BUI QUYNH ANH

Student ID: 2105025008

Cohort: K59BFC
Semester: I

Academic year: 2022 - 2023

Lecturer: NGUYEN XUAN MINH

Ho Chi Minh City, October 2022

 STATEMENT OF AUTHORSHIP

Except where reference is made in the text of the mid-module assignment, this
assignment contains no material published elsewhere or extracted in whole or in
part from an assignment which I have submitted or qualified for or been awarded
another degree or diploma.

No other person’s work has been used without due acknowledgements in the mid-
module assignment.

This mid-module assignment has not been submitted for the evaluation of any
other modules or the award of any degree or diploma in other tertiary institutions.

Ho Chi Minh City, October 2022

Bui Quynh Anh

 TABLE OF CONTENTS

INTRODUCTION

OPERATION IMPROVEMENT

1. Introduce Coca-Cola operations

2. How to improve Coca-Cola operations so as to be strongly competitive and fulfil its
customers’ expectation ?

SUPPLY CHAIN MANAGEMENT

Supply chain members and their conducted activities

REFERENCES

3.
 INTRODUCTION

Most businesses are likely to operate in a market of fierce competition, and the industry
competitors constantly change their policies to retain customers to their side in this day
and age. Not to mention each sort of goods, buyers stand in front of so many choices of
types and brands of products. Concurrently, customers’ demands are also progressively
diverse. Therefore, they could choose the goods appealing the most to fulfill maximum
needs and the benefits of themselves.

Operations management and the supply chain are crucial components for enterprises. These
elements support a company in meeting customer requests. The plan, development, managing,
and improvement of service and manufacturing activities are all covered by operations and
supply chain management concepts. Organizations must now make sure that their operations
policies and supply chain activities are changing all the time.

The business could invest in new equipment, hire new management groups, or work with other
competitors. An American multinational corporation with a focus on the production and
marketing of nonalcoholic drinks is the Coca-Cola Company. The company's most well-known
item first appeared on the market in 1889. The corporation has used its distribution
infrastructure, which dates back to 1889, to meet client demand over the years. The company's
supply chain and manufacturing have faced a number of difficulties. Coca-Cola has changed its
manufacturing process, supply chain, and operational processes to address these issues.

OPERATION IMPROVEMENT

1. Introduce Coca-Cola operations

Coca-Cola is the world's top beverage producer, and distributor. This company specializes in
producing drinks as well as beverage syrup. Coca-Cola focuses on its management groups,
quality assurance approach, and manufacturing techniques. The business manufactures more than
300 brands all around the world through a network of locations and bottling partners. Over 200
nations are the primary focus of its operations on a worldwide scale (Pendergrast, 2000).
Employees of the Coca-Cola Corporate conduct their production responsibility according to both
company and market policies, as per its plan. Coca-Cola Company offers drinks in accordance
with regional market preferences while operating in these sizable regions.

Company policies have aimed to comprehend local cultures and traditions over the years. It is
simpler for a corporation to enter a market when it is aware of the regional culture. The company
makes care to produce top quality beverages by having an understanding of local cultures. In
addition to these, Coca-Cola Company has supported several initiatives globally. Their efforts to
provide health, educational, and environmental services have a positive impact on communities
all around the world.

Coca-Cola has created a number of rules about quality and design over the years and in
accordance with environmental requirements. These regulations are crucial for ensuring that
workers carry out their responsibilities well. The company's policies make sure that the
production process produces items of high quality and on schedule. Due to the widespread use of
beverage goods, Coca-Cola has efficient supply chain processes. The Coca-Cola Company
brought glass-bottled beverages to the globe in the year 1886. Multiple bottle styles entered the
market in 1916. Perhaps the most crucial aspect of quality control for manufacturing companies
like Coca-Cola.

The quality management practices used by Coca-Cola involve a number of different steps and
techniques. Since the company's beginning, Coca-Cola products have been sold in glass bottles.
However, the corporation employs both glass and plastic bottles now that their production
technique has advanced over the years. Additionally, the corporation must alter its bottle designs
based to consumer preferences.

The company's organizational executives are aware of how their commitment to quality sets
them apart from rivals. So, in 1995, the firm launched the Coca-Cola Quality System to satisfy
their demands for quality. Both internal and external quality criteria are met by the system. Since
then, the system has been successful in ensuring that business actions are guided and that
consumer demands are met. However, despite advocating such a course of action. Organizational
management teams deal with diverse operational difficulties related to the organizational
structure, resource issues, and difficulties brought on by external standards.
Coca-Cola's assurance policies guarantee that the business is operational and satisfies supply
chain requirements. This notion of quality management has been crucial in ensuring that
corporate policy, assurance, and control adhere to both regional and international standards. In
terms of policy, the company's management teams focus on making sure that worker
requirements, production processes, and supply chains satisfy consumer needs. The company's
policy statement places a strong emphasis on product quality, safety, and the environment.

2. How to improve Coca-Cola operations so as to be strongly competitive and fulfil its

customers’ expectation ?
 Intently concentrating on customer insight

The Coca-Cola Company's management should perform the concept of consumer concentration.
Through a customer-focused strategy, the company's management will be able to effectively
address the demands of the clients. The Coca-Cola Company's management needs to make sure
that every aspect of the business, from planning to manufacturing to marketing, incorporates the
idea of the customer's attention. Individual are the most important group of customers that should
be taken into account by the Coca-Cola Company management department. This is as a
consequence of the company's basic focus on buyer goods.

The management of the Coca-Cola Company should communicate this vision to its employees
from all the departments to maintain effective customer attention concept integration among its
internationally spread businesses. Information and communication software can be used for this
situation. Integrating CRM software is one procedure the Coca-Cola Company can consider to
apply into practice. CRM will help the company's management better recognize consumer
difficulties, authorizing them to respond to the own enterprise in a more well-behaved way.
However, by using CRM with the company's intranet system, the workers can access to
customer-related information. The business management should instruct its staff on how to use
the CRM system to boost its efficacy within the company. Knowing the system makes it easier
for the sales department of the business to add extra information so that the next department can
better understand the clients.
To keep a customer-focused mindset, Coca-Cola Company management should do frequent
consumer market research. When doing the survey, one of the factors that should be considered
is the consumers' income level. It would be possible to evaluate the cost of its items more
precisely if we had access to this information. Because consumers are price sensitive, this is the
reason.

 Superior technology

Applying high technology in manufacturing and packaging have several benefits. Coca-Cola
Company must employ resources with growing efficiency for their development. This
necessitates major system-wide coordination, new technological investments, and innovation.
The Coca-Cola system would be able to satisfy the new market needs if improvements in water,
packaging, technology, energy, and agricultural resources are accelerated. The Coca-Cola in
Vietnam made many systemic efforts in 2008 to reduce its environmental effect. In addition, the
company launched and began to run a new worldwide system with durable goals for water
salvation and climate preservation.

 Limit the dependence on one product line

Coca-Cola is well-known as the largest company in the history of the world beverage market.
However, the company seems to be over-dependent on their main goods – coke. Coca-Cola's
income is mostly derived from the market for carbonated soft drinks, despite the company
having invested in a rich beverage network with several pricey brands. Coca-Cola is still
committed to the beverage business, in contrast to Pepsi, its heavyweight opponent, which has
endeavored to expand its offerings to a number of areas such as snacks, cereals, fried potatoes,
pasta, and a range of dairy goods. In reality, Coca-Cola has recently been under pressure from
Pepsi's sales and revenue as customers slowly shift their eating habits and lessen their preference
for conventional sugary drinks. Sales and net profits for the firm have both decreased by around
30% in recent years.
 SUPPLY CHAIN MANAGEMENT

1. Supply chain members and their conducted activities

 Suppliers

Coca-Cola beverages is today manufactured in more than 200 countries over the world. This
growth demonstrates that the efficiency of the company in building up an successful supply
chain system to guarantee flawless manufacturing and distribution. And water is the core
ingredients in any Coca-Cola products to make flavored and carbonated drinks. Although the
enterprise do not reveal their water sources from the countries that they locate, it is known that
they are spread out globally to account for the fact that the company’s suppliers are also
geographically distributed. It should be noted that the corporation has tight guidelines for the
manufacturing of its ingredients, and that its suppliers are required to adhere to all certification
standards.

According to a 2012 study from the firm, the Coca-Cola operations system contains more than
900 production and bottling techniques that play a significant role in the distribution of
carbonated beverages globally. Coca-Cola has also stated that it has decreased waste and
pollution by repairing problems like leaks, uncovered pipelines, excessive temperatures, and
needless energy consumption. This has aid in to ensure the success of the business supply chain.

Then, let mention about Coca-Cola in Vietnam. Each supplier to Coca-Cola Vietnam is carefully
recruited in all quality: product quality, how the organization and factory operates, enterprise
status, customer satisfaction and more Companies shortlisted for Coca-Cola Vietnam will receive
intensive training and mentorship from the company and VCCI, USABC. To ensure that the
members of the chain of operations match and guarantee quality as well as output.

In the country, Coca-Cola Vietnam collaborates with more than 300 suppliers. Eight businesses
joined the Coca Cola supply chain entrance consulting program, Coca Cola Vietnam announced
in October 2017, including: ADG East Company, M&H, Hoang Da Nang CJS Company, and
more. Most companies are based in mega city and operate in industries such as logistics,
packaging, marketing, distribution, etc. These 8 businesses will work with Coca-Cola Vietnam as
vendor and sales partners. Coca-Cola will give these eight units priority whenever the firm has a
project in which the strategy calls for partners to participate.

However, joining this connection does not automatically last forever. Coca-Cola Vietnam
eliminates a firm when the supply chain breaks down and substitutes a reserve source.

 Distributors and wholesalers

Specially the pepper industry, the distribution of distribution and wholesale agents of Coca Cola
is quite thick with relatively large stockpiles.

Product supply channels Coca Cola to consumers:

- Manufacturer - Consumer use.

- Manufacturer – Retailers - Consumers.
- Manufacturer – Distributor – Wholesaler – Retailer - Consumer

It's because of the chain. be made up of various ingredients. Among them, there are 3 major
distribution agencies owned by Coca-Cola Vietnam. Then, the distributors. Hurry, big agents.
These components have the core contribution of enterprises operated in our nation by reason of
to be well versed in the marketplace, in a broad relationship with Retailers, ensure distribution to
all areas.

 Production organization

Production organization is the key stage of the chain. Coca-Cola Vietnam is divided into two
components:

- TCC (The Coca-Cola Company): in charge of making Coca Cola juice and delivering it
to companies, as well as growing and managing the brand. The three P's composing
Price, Product, and Promotion are under TCC's purview.
- TCB (The Coca-Cola Bottler) take responsibility for manufacturing, storing, shipping,
and providing customer support for Coca-Cola goods. This signifies that TCB is in
charge of the third P, Place, and that the model is used consistently around the world,
including in Vietnam. For instance, the Coca Cola Vietnam Company employed roughly
 2,500 people in 2017, and more than 99 percent of them were Vietnamese, according to
Coca-Cola Report.

Take Coca-Cola as an example of a manufacturer from Vietnam: There are three sizable
industries in Vietnam, which are situated in developed cities of Vietnam such as Hanoi, Da
Nang, and Ho Chi Minh City. Coca-Cola Vietnam now has a 100% foreign investment capital
base. The business currently fully owns the large plants in Ho Chi Minh City, Da Nang, and
Hanoi. Therefore, it is believed that this is the only fixed, irreplaceable link in the Vietnamese
Coca-Cola supply chain. Each plant has sufficient capacity to satisfy the various consumption
requirements of markets in the North, Central, and South.

 Retailers

Products from Coca-Cola are accessible through all retail channels. include dining
establishments, retail outlets, refreshment bars, shopping complexes, etc. These are the
intermediaries closest to the customer who perform fundamental distribution tasks but who also
have to make sure and abide by the laws in place. While both Vietnamese and international
participants are present at this stage, the majority of conventional retail items are produced in
Vietnam, and there are several foreign companies present in supermarket chains and convenience
shops.

More than 80% of major companies' income comes from traditional trade channels in the
Vietnamese market. In 2020, there will be between 1,200 and 1,500 supermarkets, 180 shopping
malls, and 157 shopping complexes in Vietnam.

 Consumers

Coca-Cola products are available for people of all ages, including those in families, businesses,
and schools. This phase decides whether a company's product is successful or not. The customer
is the one who uses the product directly and establishes the target market, which is then satisfied
by other channel participants like wholesalers, retailers, etc. They are also the ones who have a
direct impact on the sales of other channel participants and manufacturers. Finally, a shift in
consumer demand and purchasing habits is sufficient to push the company over the edge.
 REFERENCES
1. Pendergrast, M. (2000). For God, country and Coca-Cola Get the complete background
on the famous American soft drink and its manufacturer. Basic Books
2. Coca-Cola (2012) Company and Bottling Plants.
3. Coca-Cola (2017) Our companion
4. CSI Market (2018a) Coca-Cola’s suppliers operations. Web.