BSBMGT517/BSBINN501/BSBINN601/BSBMGT518: Coco-Cola India - Module 2

This assignment focuses on Coco-Cola's re-entry into the Indian market, analyzing the challenges faced during their initial attempt and the strategies employed for a successful market penetration. It addresses the mismanagement issues, including water supply concerns, bottle challenges, and competition from Pepsi. The assignment proposes strategies such as price adjustment, augmented promotion, and increased distribution channels to ensure a different and more effective approach compared to the first attempt. It emphasizes the importance of understanding the local market, adapting advertising campaigns, and leveraging distribution networks to achieve sustainable growth and market share in India. The report also explores the implementation of these strategies, focusing on increasing sales and consumption through price adjustments and raising product awareness through effective and emotional advertising.

Dip L&M Module 2 Workplace Simulation 160721
Diploma of Leadership and Management
Module 2 Workplace Simulation
Submission Instructions:
Key steps that must be followed:
1. Please complete the Declaration of Authenticity at the bottom of this page.
2. Once you have completed all parts of the assessment and saved it (eg. to your
desktop computer), login to the Monarch Learning Management System (LMS) to
submit your assessment.
3. In the LMS, click on the file ”Submit DFP Module 2 Assignment” in the Module 2
section of your course and upload your assessment file/s by following the
prompts.
4. Please be sure to click “Continue” after clicking “submit”. This ensures your
assessor receives notification – very important!
Declaration of Understanding and Authenticity *
I have read and understood the assessment instructions provided to me in the Learning Management System.
I certify that the attached material is my original work. No other person’s work has been used without due
acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the
purpose of detecting plagiarism.
Student Name*: Date:
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound
by the above student declaration
1

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
Important assessment information
Aims of this assessment
This simulated workplace assessment activity is conducted to the standard expected in
the workplace in order to demonstrate consistent performance of typical activities
experienced in the management profession.
This assessment focusses on a real life scenarios where organisations were faced with
challenges in management. There are two different assessments that focus on a range
of management issues. You have to thoroughly read and understand the case studies
and answer the questions that follow the case studies. The Key areas of focus include
organisational strategy, global management, innovation and change. You are required to
provide responses to the questions by simulating that you are the manager responsible
for identifying and implementing solutions to the problems faced.
Marking and feedback
This assignment contains 2 assessment activities containing specific instructions.
This particular assessment forms part of your overall assessment for the following units
of competency:
 BSBMGT517 Manage Operational Plan
 BSBINN501 Establish systems that support innovation
 BSBINN601 Lead and manage organisational change
 BSBMGT518 Develop organisation policy
Grading for this assessment will be deemed “competent” or “not-yet-competent” in line
with specified educational standards under the Australian Qualifications Framework.
2

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
What does “competent” mean?
These answers contain relevant and accurate information in response to the question/s
with limited serious errors in fact or application. If incorrect information is contained in
an answer, it must be fundamentally outweighed by the accurate information provided.
This will be assessed against a marking guide provided to assessors for their
determination.
What does “not-yet-competent” mean?
This occurs when an assessment does not meet the marking guide standards provided
to assessors. These answers either do not address the question specifically, or are
wrong from a legislative perspective, or are incorrectly applied. Answers that omit to
provide a response to any significant issue (where multiple issues must be addressed in
a question) may also be deemed not-yet-competent. Answers that have faulty
reasoning, a poor standard of expression or include plagiarism may also be deemed not-
yet-competent. Please note, additional information regarding Monarch’s plagiarism
policy is contained in the Student Information Guide which can be found here:
http://www.monarch.edu.au/student-info/
What happens if you are deemed not-yet-competent?
In the event you do not achieve competency by your assessor on this assessment, you
will be given one more opportunity to re-submit the assessment after consultation with
your Trainer/ Assessor. You will know your assessment is deemed ‘not-yet-competent’ if
your grade book in the Monarch LMS says “NYC” after you have received an email from
your assessor advising your assessment has been graded.
Important: It is your responsibility to ensure your assessment resubmission addresses all
areas deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful
in meeting competency after resubmitting your assessment, you will be required to
repeat those units.
In the event that you have concerns about the assessment decision then you can refer
to our Complaints & Appeals process also contained within the Student Information
Guide.
3

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
Expectations from your assessor when answering different types of assessment
questions
Knowledge based questions:
A knowledge based question requires you to clearly identify and cover the key subject
matter areas raised in the question in full as part of the response.
Skill based questions:
Where you are asked to write as though you were the manager, your answers must
show your ability to:
 understand the problem and address the situation
 take responsibility for your actions
 display a professional response
 explain ideas clearly and simply
Good luck
Finally, good luck with your learning and assessments and remember your trainers are
here to assist you 
4

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
Assessment Activity
Workplace Simulation 1
Coco Cola – Re-entry into India
Activity instructions to candidates
 This is an open book assessment activity.
 You are required to read this assessment and answer all 7 questions that follow.
 Please type your answers in the spaces provided.
 Please ensure you have read “Important assessment information” at the front of this
assessment
 Estimated time for completion of this assessment activity: 3-4 hours
5

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
Background
In recent years, Coca-Cola attempted to enter the Indian market once again. Georgia-based Coca-
Cola was attracted to India’s market because India’s per capita consumption of carbonated
beverages is less than half of Pakistan and about five per cent of China’s. India has the fastest-
growing demand for consumer products in the world. Coke’s first attempt to enter the Indian market
a decade earlier had resulted in gross mismanagement, which led to the company losing $20 billion
Indian Rupees. In that first attempt, Coca-Cola purchased Thumbs Up, the leading India-based
carbonated soft drink. The company hoped to replace Thumbs Up with Coke while maintaining the
Thumbs Up distribution strategy. For its return to the market, Coca-Cola built five plants, cut costly
staff, revamped transport, shrunk bottles and made them lighter to increase a trucks carrying
capacity. It also increased its number of distributors and dumped a global advertising campaign that
proved irrelevant to the Indian market
In order to increased distribution of their product, Coca-Cola supplied finance to retailers so they
could purchase refrigeration units and organised for the refrigeration manufacturer to give deep
price discounts.
Required
First, you are to read carefully the case mentioned above. Second, you are then required to answer
the following questions in the context of the information you have learnt in Module 1.
1. What do you think were the challenges faced by Coco Cola when they attempted to enter
the Indian market the first time? What did they do wrong?
Coca-Cola is a well-known leading Georgia-based Company who is good at producing the
carbonated products. In the recent years, the company tried to enter the Indian market again
after the failure in their first attempt. According to the case study, India is considered as the
place where demand for consumer products in the world was growing fast. Though, the
company was not able to establish their business effectively because they faced numerous
challenges.
According to me the major challenges which were mainly faced by the coke company include
the gross mismanagement of operations in India. This mismanagement made the company to
face the loss of $20 Billion Indian rupees. I observed that Coca-Cola company was not able to
manage the water supply, bottle challenge, competitors in the market and many related issues
(Bundhun, 2017). The company found the shortage of water due to which they started
extracting groundwater which created an impact on the resource of the country (India
Resource Center, 2016). Coke Company was not able to manage the bottle challenge in which
they found different size and shapes of the bottle for drinks. Moreover, Pepsi Company gave
6

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
a tough challenge to Coco cola as a rival in the Indian market. This reflects that there was
lack of leadership and management skills.
I believe, to compete in the market, the company decided to Coca-Cola purchased Thumbs
Up (company deals in carbonated drinks) and started expanding the distribution network so
that they can sell their drinks in their market. In order to increase the distribution of products,
the company offered a finance facility to retailers so that they can make the purchase of
refrigeration units. In addition, the company organised the refrigerator manufacture to give a
huge discount. The company dumped the global advertising campaign due to which people
were not aware of the brand and their products. This advertisement was dumped because it
was proven irrelevant for the Indian market. All these challenges were faced by the company
at some point in time due to which Coca-Cola faced major loss.
2. You are the manager responsible for a successful penetration of the market. What strategies
would you focus on? Why?
Being the manager of company I am responsible for a successful penetration of the market in
which they generate the awareness related to the product with the motive to increase the
market share. In addition, the penetration helps the company in accomplishing the goals and
objectives of the company. I would focus on some market penetration for which I decided to
implement the strategies that could help the company to survive in the market. The strategies
that I would focus for successful penetration of market are given below: -
• Price Adjustment: - The strategy related to the price adjustment is one of the most
effective strategies that are mainly used for penetration. I would have tried to reflect that
Coca-Cola company offer products and services at low prices instead of their other
competitors present in the market. This adjustment needs the evaluation of the prices of the
competitor’s product (Shethna, 2016). This strategy helps the company in increasing the sales
of the product.
• Augmented promotion: - This strategy includes the rise in the promotion of the
product. In the new market, it is essential for the company to generate the awareness for the
7

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
product. Therefore, it was expected from the company to make an effective and emotional
advertisement for the customers after considering their needs. The choice of Coca-Cola
Company matters a lot while making their campaign for long term or short term.
• Increase in distribution channels: - Coca-Cola Company was able to bring the rise in
the distribution of Thumps in the Indian market. Instead of this, according to me it was
essential for the company to focus on opening new distribution channel which includes
telemarketing, e-mail marketing and many others (Piercy, 2014).
The above given are a few strategies that can be followed for successful penetration within the
company. The reason behind the selection of these strategies is the relation with the case of
the Coca-Cola. Moreover, these strategies of penetration would have brought the major
changes in operations and working of the company within the Indian market.
3. How would you implement these strategies to ensure that it is different to the first attempt?
According to me manager of the company is responsible for the implementing the strategies
effectively and efficiently within the organisation. Considering the case study of Coco-Cola
in Indian market it was required to implement the penetration strategies to bring the
difference to the first attempt. The implementations of strategies are discussed below: -
Price Adjustment
The implementation of the price adjustment will bring the changes as this will increase in
sales and consumption of the product in the Indian market. Some of the steps for
implementing this strategy are given below: -
8

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
The initial step that I will take to implement the strategy is to analyse the price kept by the
competitors in the market which includes Pepsi. Comparing the price might support the Coca-
Cola Company to offer products at the best price. Later, the company should generate the
awareness about the product that they are offering at the lowest prices. This awareness related
to the price was not generated by the company in their first attempt when they entered the
market of India.
Augmented promotion
Being the manager of the company I will be responsible for promoting the products in the
market. This strategy will support for generating the awareness in the market along with this
the time period for the campaign is decided by the company. The implementation of this
strategy includes the following steps: -
9
Analysing the competitors
price for product
Comparing the prices
Reducing the price of
product
Generating awareness for
low price of product
Identifying the channel of
promotion
Designing promotion
Displaying Advertisement
through TV or print media

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
The company need to identify the channel of promotion for generating the products in the
market. Once the channel of promotion is selected the company needs to design the
promotion that they are willing to conduct with the help of the selected channel. After this,
the company can display the advertisement through the selected channel. The implementation
of this strategy will bring the difference because earlier the company ignore the promotion of
product within the market.
Increase in distribution channels
The implementation of this strategy includes different steps which are required to be followed
by the manager of the Coca-Cola Company. These steps are discussed below: -
This strategy will bring the difference than the first attempt as the company tried to increase
the number of retailers through which they can distribute the products. Though, this is the fact
that retail distribution is a single channel of distribution. It is essential for Coca-Cola
Company to evaluate the different channels through which the consumer can make the
purchase of a product as online source and telemarketing of products.
4. What will you do to ensure that the company adapts to the local requirements and the local
environment?
In the current era, the manager of the company needs to ensure that the company adapts to the
local requirements and local environment as this is the only way to survive in the market of
India. There are different ways through which the I can ensure it and some of ways are
discussed below: -
 Analysing the workplace culture: - I can evaluate the workplace culture which helps
10
Analysing the distribution channels
Forming contacts with them
Making the product easily available to customers

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
them that they are adapting the local environment of the Indian market or not.
 Customer satisfaction: - It is very essential for the coca cola company to lead to
customer satisfaction. I can check that the customers are satisfied with the products
and services offered to them by the company. This satisfaction will reflect that the
company is adopting the local requirements.
 Reviewing the product: - The review of the product will reflect the changes and
innovation done by the company on the product. If the company has done certain
changes or innovation in the product according to local people needs then the
company is adopting the local requirement.
 Analysing Operations of company: - According to me, I needs to analyse the
operations which reflects that changes has been done or not. These changes reflect that
the company is adopting the local environment of the country.
5. How would you train your staff | employees to work in the new cultural setting?
I will provide the training to their employees so that the company can perform their business
operations in the new culture of India.
Training sessions: - Coca-Cola Company should conduct the training sessions for generating
awareness about the culture of India. This will help the employees to work in the new cultural
setting.
On the job training: - The employees of the company will get occupied in on the job training
in which they will perform the work with training (Dhar, 2015). This will help them in
learning and understand the culture setting with work.
Generating awareness about new culture: - Coca-Cola needs to generate the awareness
about the major elements of news culture which include: -
 Awareness of language
 Proving details for local culture, art, history and others
 Defining the cultural standing of the country that includes power, collectivism and
masculinity vs. feminism and others.
11

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
References
Bundhun, R. (2017) Coca-Cola losing its fizz in India [Online]. Available from:
https://www.thenational.ae/business/coca-cola-losing-its-fizz-in-india-1.72443 [Accessed on
16th July 2018]
Dhar, R.L. (2015) Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management, 46, pp.419-430.
India Resource Center (2016) Deteriorated Groundwater Conditions Lead to Closure
[Online]. Available from: http://www.indiaresource.org/news/2016/1003.html [Accessed on
16th July 2018]
Piercy, N. (2014) Export Strategy: Markets and Competition (RLE Marketing). New York:
Routledge.
Shethna, J. (2016) 10 Market Penetration Strategies [Online]. Available from:
https://www.educba.com/10-market-penetration-strategies/ [Accessed on 16th July 2018]
Speedy, B. (2013) Discounting is unsustainable, says DJs amid 2.2pc fall in Q3 sales
[Online]. Available from: https://www.theaustralian.com.au/business/profit-loss/discounting-
is-unsustainable-says-djs-amid-22pc-fall-in-q3-sales/news-story/
b2653382d1b10fcc983c4386cb2801f4 [Accessed on 16th July 2018]
12

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
Assessment Activity
Workplace Simulation 2
David Jones
Activity instructions to candidates
 This is an open book assessment activity.
 You are required to read this assessment and answer the question that follows.
 Please type your answers in the spaces provided.
 Please ensure you have read “Important assessment information” at the front of this
assessment
 Estimated time for completion of this assessment activity: 3-4 hours
Background
Source: Adapted from B. Speedy, 2013, “Discounting is unsustainable, says DJs amid 2.2pc fall in Q3
sales”, The Australian, 27 May 2013
http://www.theaustralian.com.au/business/profit-loss/discounting-is-unsustainable-says-djs-amid-
22pc-fall-in-q3-sales/story-fn91vch7-1226651165146.
Required:
Given the above information, conduct a situational analysis of David Jones’ current position.
Situation analysis is referred to as the collection of the methods that are used by the
managers of the company to analyse an organisations internal and external environment
which is required to company’s capabilities, customers, business environment and others.
Considering the case study, the SWOT analysis is appropriate to a model which is used by
David Jones in analysing the environment. This analysis includes details of strengths,
weaknesses, opportunities and threats (Hill, Jones and Schilling, 2014).
Strengths
 David Jones offers various products which include fashion, electronics and food
products.
 The men's and children's fashion of the company is going well.
 The company found the rise discount-sales calendar of the home electronics
13

Dip L&M Module 2 Workplace Simulation 160721
Units: BSBMGT517, BSBINN501, BSBINN601, BSBMGT518
department.
 David Jones has managed their stock due to which they don't face the need for
winter sale like its competitor.
Weaknesses
 David Jones retail performance is declining in women’s clothes sections.
 The retail giant reported the loss in the 3rd quarter of the financial year 2012-2013.
 CEO of the company reflected decline to the divestiture of its home electronics
department.
Opportunities
 David Jones CEO, Zahra identifies that customer spending is expected to increase
after the federal election in the month of September apart from the recent RBA rate
cuts.
 The company has the opportunity to overcome the loss with the proper management
of inventory.
Threats
 The major threat to the company is its competitors which are present in the market.
Myer is one of the major competitors of the company. Along with this, the
competitor of the company revealed the rise in the sales.
 David Jones also deals with the threat of the consumer spending.
References
Hill, C.W., Jones, G.R. and Schilling, M.A. (2014) Strategic management: theory: an
integrated approach. Boston: Cengage Learning.
14