1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated…

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual consumption of more than 34 billion gallons. Soft drinks rank as America’s favorite beverage segment, representing 25% of the total beverage market. In the early 1990s per capita consumption of soft drinks in the U. S. was 49 gallons, 15 gallons more than the next most popular beverage, water. The roots of soft drinks extend to ancient times.

Two thousand years ago Greeks and Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a practice that continues to the present. In the late 1700s Europeans and Americans began drinking the sparkling mineral water for its reputed therapeutic benefits. The first imitation mineral water in the U. S. was patented in 1809. It was called “soda water” and consisted of water and sodium bicarbonate mixed with acid to add effervescence. Pharmacists in America and Europe experimented with myriad ingredients in the hope of finding new remedies for various ailments.

Already the flavored soda waters were hailed as brain tonics for curing headaches, hangovers, and nervous afflictions. Pharmacies equipped with “soda fountains” featuring the medicinal soda water soon developed into regular meeting places for local populations. Flavored soda water gained popularity not only for medicinal benefits but for the refreshing taste as well. The market expanded in the 1830s when soda water was first sold in glass bottles. As soft drinks are so popular over the world in our days and I like them too much, I have decided to know more about them.

So the aims of my work is 1. To get acquainted with soft drinks businesses 2. To get acquainted with the newest technology in soft drinks structure 3. To get acquainted with the equipment and technique which are used in making soft drinks 4. To get acquainted of the company`s organization 2. Products 2. 1. Description of your intentions, future products. The “BUBBLES” will be a non alcohol soft drink with vitamins. I hope that it will be sold all over the world in restaurants, petrol stations, markets, stores, vending machines and so on.

It will be sold and in plastic, glass bottles, cans including aluminum and steel and also in paper such as cartons. All that packing will be recycling to not damage environment. [pic] [pic] [pic] 2. 2. Motivation for the production Why I have chosen soft drink? Because all people like it. It is a big market of soft drinks, with large competition. But I have decided to make a new top product with vitamins, because such drinks like coca cola and Pepsi a very unhealthy. My company will start to grow in Lithuania. Were aren`t so big competitions. And it is good place because it will be easy to find workers for not a huge salary.

And in Lithuania is very comfortable place to transports my soft drink “BUBBLES”, because you can transport them not only by land (by Lorries) but also by sea. The analyses show that soft drinks can replace coffee, alcoholic drinks and it is very important for our environment, because people will be healthier. And in Lithuania that fact very profitable, because after 22:00 you can`t by alcohols drinks, so people will buy soft drink. 3. Markets 3. 1. Overview of markets and tendency of expansion The “Soft Drinks & Juices Market in Europe” covers 16 countries and puts direct human consumption at Euros 72.

9 billion in 2009, or 6. 6% of the all food and drink market of Euros 1111 billion. This Soft Drinks & Juices market is forecast to decline at an average annual real -1. 16% during the 2009 – 2012 period, compared to 0. 51% for the total food and drink market. More than 784 companies are involved in Soft Drinks & Juices products across Europe, with the Top-10 companies supplying 49. 6% of the market. Current major players are Coca-Cola with a market share of 21. 5%, followed by PepsiCo (7. 9%) and Nestle (4. 8%). FFT’s online database tracks and incorporates M&A activity on a continuous basis.

Seven product markets are covered – Mineral water, Soft drinks, Fruit juices, Fruit drinks, Squashes & concentrates, Health & sports drinks, Ice tea – in the 16 countries covered by the survey. Thus the study covers 112 country and product markets, with Coca-Cola have a leading presence, being present in 57 markets. Country Markets [pic] The largest country market, Germany, makes up 29% of the total 2009 West European soft drinks market, worth Euros 72. 9 billion (for 20% of the total population), the 3 largest West European country markets, including the U. K.

And Italy, make up 61% of the total West European soft drinks market (for 50% of the total population) and the 5 largest country markets, including France and Spain, make up 76% of the West European market (for 77% of the total population). The best 3 countries market performances based on annual real % growth (2004-2009) are Denmark (+3%), Germany (+2%) and Sweden (+1. 7). Product Markets [pic] The largest product market (among the 7 products currently selected) is Soft Drinks, which makes up 45% of the total 2009 West European soft drinks market worth Euros 72.

9 billion, or Euros 32. 6 billion. The next largest product market, Mineral Water, makes up 21% of the total market, or Euros 15. 3 billion. The three largest West European product markets, adding Fruit Juices to Soft Drinks and Mineral Water, make up 83% of the total market, or Euros 60. 6 billion. The best 3 product market performances based on annual real % growth (2004-2009) are Health & sports drinks with 4. 1%, followed by Ice tea with and Soft drinks with 1. 9% and 0. 8% respectively. Foodservice `The total foodservice market is worth 20. 4% or Euros 14.

9 billion, and the retail market worth 79. 6% with a Euros 58. 1 billion. Own Label In the total market by value, distributors’ own label products now make up 17%, with manufacturers’ branded products making up 83% of the total market. Retail distributors’ own label products continue to make inroads into manufacturers’ branded products in many food and drink markets. Artisanal products (own-produced for own sale) and unbranded products (important in say fresh fruit and vegetable markets) make up the rest of distribution. 3. 2. Description of customers.

The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers. Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power.

Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers.

The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel “paid sampling. ” This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets.

As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high.

The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers’ profits were relatively high, at $0. 40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets.

Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power. 3. 3. Description of competitors My Company competes in the nonalcoholic beverages segment of the commercial beverages industry. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of numerous companies.

These include companies that, like our Company, compete in multiple geographic areas, as well as firms that are primarily regional or local in operation. Competitive products include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages.

These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form. In many of the countries in which we do business, including the United States, PepsiCo, Inc. , is one of our primary competitors. Other significant competitors include, but are not limited to, Nestle, Dr Pepper Snapple Group, Inc. , Groupe Danone, Kraft Foods Inc. and Unilever. In certain markets, our competition includes beer companies. We also compete against numerous regional and local companies and, in some markets, against retailers that have developed their own store or private label beverage brands.

Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection. My competitive strengths include leading brands with a high level of consumer acceptance; a worldwide network of bottlers and distributors of Company products; sophisticated marketing capabilities; and a talented group of dedicated associates.

My competitive challenges include strong competition in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage supplier Product Markets. 4. Production 4. 1. Technology of production Most soft drinks are made at local bottling and canning companies. Brand name franchise companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures.

Clarifying the water * 1 The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters.

During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Filtering, sterilizing, and dechlorinating the water * 2 The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. * 3 Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water’s taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.

The chlorinated water remains in the storage tank for about two hours until the reaction is complete. [pic] • 4 Next, an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients • 5 The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration.

The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. • 6 The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage • 7 Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage.

The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine.

Filling and packaging • 8 The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs. • 9 Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them.

Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally pre-printed with product information before the filling stage. • 10 Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. [pic] 4. 2. Production planning, Quantities In my companies plans to become in near future in the tops selling’s of the soft drinks in Lithuania, later in Europe and the all over the world.

Because of that in the first year we will produced a 15 types of “BUBBLES” for example diet, energetic, cola, orange, mineral water and so on. 4. 3. Locating and building the new plant The “BUBBLES” company took the decision to build the first “BUBBLES” plant near the Kedaniai city. It is like in the Lithuanian centre. It has first-class connections to the motorway, the airport and the railway system. [pic] Approximately 2,000 new jobs will be created. Production will start in the year 2013. Following a ramp-up phase, a capacity of 650 units a day will be reached.

The most important criteria to be considered were as follows: 1. The economic viability and flexibility. 2. The features and the location of the future plant area. 3. The availability of qualified manpower. 4. The use of existing structures in terms of plants, suppliers and logistics. 5. The infrastructure for transport, supplies and waste management. 6. The connection to the sales and distribution network. 7. The process of implementation. Also a new recycling factory will be needed; it is easier to recycle bottles, plastic, steel, paper than produce new packaging.

But also there will be sector of production packaging. 4. 4. Inside plant-layout procedure Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. So I have some criteria’s, principals that I’m regarding, and about what I will talk with architecture. 1. Integration:

Integration of people, money, materials and machines and support services in order to get the optimum output of resources. 2. Cubic space utilization: Utilization of both horizontal and vertical spaces and height is very important to use the space as much as possible. 3. Minimum distance: Minimum travel of people and material should be implemented means; the total distance travel by the people and material should be minimized as much as possible. Further straight line movements should be promoted. 3. Floor: Arranging the floor to move the material/finished products in forward direction towards the final stage.

4. Maximizing coordination: Entry into and disposal from any department should be in such manner that it is most convenient to the issuing or receiving departments. The layout should be consider as a whole. 5. Minimum flexibility: The layout should be able to modify when necessary. 6. Maximum accessibility: All servicing and maintenance points should be readily accessible. For example;equipment should not be placed against a wall because necessary servicing or maintenance cannot be carried out easily. Further; equipments or other necessary unitskeep in front of a fuse box will impede the work of the electrician.

7. Safety security: Due consideration to industrial safety methods is necessary. Care must be taken notonly of the persons operating the equipment, but also of the passes-by, who may berequired to go behind equipment as the back of which may be unsafe. 8. Minimum handling: Reduce the material handling to the minimum. Material being worked on should be keptat working height and never have to be placed on the floor if it is to be lifted later. The following principles also can be taken in to account when planning for a good plantlayout; •The geographical limitations of the site;

•Interaction with existing or planned facilities on site such as existing roadways,drainage and utilities routings; •Interaction with other plants on site; •The need for plant operability and maintainability; •The need to locate hazardous materials facilities as far as possible from siteboundaries and people living in the local neighborhood; •The need to prevent confinement where release of flammable substances mayoccur; •The need to provide access for emergency services; •The need to provide emergency escape routes for on-site personnel; •The need to provide acceptable working conditions for operators.

4. 5. Equipment selection Syrup Batch tank – Stainless steel tanks ranging is size from 500 liters to 20,000 liters. The syrup is prepared (“mixed” or “batched”) and or stored in these tanks. Syrup Transfer Line – A stainless steel line through which the syrup is pumped to the filling area. Proportioner – Equipment which prepares the final soft drink by blending the syrup and treated water at a specific ratio. (i. e. 1 part syrup to 5 parts treated water; 1:5) Carbo-cooler – Equipment which carbonates and cools the soft drink (2-5 ?C) just prior to filling Filler room – The enclosed area of bottling line which contains the filler, capper.

Proportioner, and carbo-cooler. Packaging area – The area of bottling line which consist of all equipment other than that which is contained in the filler room. Bottle Warmer (Can warmer) – Equipment on a bottling line containing sets of warm water sprays. The individual containers (bottles or cans) pass through the warmer after filling for the purpose of bringing them to room temperature. Bottle washer – (“soaker”) – A large machine located just prior o the filler on a bottling line containing a hot alkaline (caustic) solution.

Returnable bottles pass through, soaking in this solution for the purpose of being thoroughly cleaned. Prior to their exit from the bottle washer the bottles are completely rinsed with water to remove any residual caustic. 4. 6. Materials handling Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and bites to the beverage and also acts as a mild preservative. Carbon dioxide is an uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively inexpensive and easy to liquefy. The second main ingredient is sugar, which makes up 7-12% of a soft drink.

Used in either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the “mouth-feel,” an important component for consumer enjoyment of a soft drink. Sugar also balances flavors and acids. Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes were introduced more successfully, notably aspartame, or Nutra-Sweet, which was widely used throughout the 1980s and 1990s for diet soft drinks.

Because some high-intensity sweeteners do not provide the desired mouth-feel and aftertaste of sugar, they often are combined with sugar and other sweeteners and flavors to improve the beverage. The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness, and acidity (pH). Acids add sharpness to the background taste and enhance the thirst-quenching experience by stimulating saliva flow. The most common acid in soft drinks is citric acid, which has a lemony flavor. Acids also reduce pH levels, mildly preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavorings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance “eye appeal” by serving as clouding agents. Emulsions are mixtures of liquids that are generally incompatible. They consist of water-based elements, such as gums, pectins, and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents.

Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, maintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives in response to increasing health concerns of the public. Impurities in the water are removed through a process of coagulation, filtration, and chlorination. Coagulation involves mixing flock into the water to absorb suspended particles.

The water is then poured through a sand filter to remove fine particles of Roc. To sterilize the water, small amounts of chlorine are added to the water and filtered out. 4. 7. Example of flow process, operation chart [pic] The major raw materials required for production of carbonated beverage are sugar, concentrates, carbon dioxide and water. Sugar is delivered either in hopper cars with pneumatic discharge or in bags. For reasons of micro-biological stabilization, the sugar syrup is produced in a hot dissolving process. The sugar is admixed by means of conveying elevators.

In case the sugar is dirty or slightly brown, the application of active carbon is indispensable. For heating purposes and for maintaining a constant dissolving temperature of 85oC, the sugar dissolving tanks have either a heating jacket or are equipped with an interior heating spiral. Exact weighing is essential in this process. It is done by a pressure gauge with a large-scale reading instrument. The entire dissolving process takes about one hour. After that the mixture is filtered, cooled by the plate cooler, and from there the product flows directly into the mixing and storing vessels.

The raw materials and essences are stored in a cool-room at approx. 4oC. They are either pumped into the concentrate preparing vessel by a barrel pump or they are manually added. Citric acid is dissolved in a separate vessel. In order to obtain homogeneous final syrup, the mixture should be stirred for another15 minutes in the mixing vessel. During this time the measuring of Brix content should be done that correction can be made, if necessary. Then the syrup is transported to the pre-mixer by means of a pump. There the beverage is de-aerated, dosed, cooled and carbonated.

In a vacuum tank the treated water is de-aerated and cooled down in a multiple stage plate cooler to approximately 8oC in a first step, and then conveyed to the jet apparatus, where, according to the Venturi-principle, syrup and water are mixed. In the carbonating department Carbon dioxide is added to the mixed drink by means of a jetting apparatus, and thereafter the product is conveyed to the storage tank. From this tank a discharge is made out for further cooling in the second stage of the plate cooler at approximately 3oC- 4oC. Without mechanical help the product is conveyed to the filling machine.

The filling and sealing unit works according to the single-chamber counter-pressure principle and guarantees a quality-preserving bottling of drinks with highest microbiological security. 4. 8. Schedule of realization of the project I hope that the plant will be built in 2012, and producing will be started in 2013, so the first profit I will get in the end of 2013 and beginning of the 2014. During the 2013 we will try to produce 15 tastes of the “BUBBLES”, and we will see which of them successful, and which of them we need to replace. 4. 9. Packing.

The main purpose of soft drinks packaging is to protect the product, maintain the convenience of use for the consumer and to reduce waste. All soft drinks packaging can be recycled and/or re-used to make other useful products. For example: • aluminium cans are recycled and used with raw material to produce new batches of cans; • plastic bottles can be used to make fleece textile products, fibre filling and street furniture; • glass bottles can be reused or recycled to use in the production of new glass; and • paper and board is recycled to produce tissue, paper bags, chip board, briefcases and office furniture.

The reduction of packaging waste has always been a primary concern of the soft drinks industry. Therefore, the industry has consistently been at the forefront of packaging innovations and is constantly looking at ways to reduce the amount of raw materials used in various types of packaging. Types of packaging The main forms of packaging used by the soft drinks industry are: • glass bottles • plastic including PET (Polyethylene terephthalate), PVC (Polyvinyl chloride), HDPE (High density polyethylene), cups (made from polystyrene and polyethylene), pouches (low density polyethylene) • cans including aluminium and steel.

• paper such as cartons When manufacturers are considering packaging for a soft drink they need to consider the functions of packaging to ensure that the products reach the consumer in the best possible condition. The functions of packaging are to contain, protect, identify and sell the product while keeping in mind the impact upon the environment and the costs involved. Certain packaging is more suitable for certain types of product than others when you consider the above criteria.

In my company we will use all types of packaging to encourage consumers. So everyone can chose the type of bottle he or she likes, from o,2 to 2,5 liters, that are more comfortable for them. 5. Personnel 1. Highest level of managers, education, and experience; 1) Executive Vice President Received an industrial engineering degree from Los Andes University in 1978 and graduated from the Stanford University Executive Program in 1992.

He also taught marketing, operational research, and advertising during his career with Coca-Cola de Colombia and has served as a director of several public bottling companies during his career with the Company. 2) Executive Vice President Prior to joining the Company, worked for S. C. Johnson Wax in marketing and sales and for Banco Santander in corporate finance and investor relations, has a degree in business administration and law from ICADE University in Madrid. 3) Senior Vice President, Global Business and Technology.

Services Prior to joining the Company, served as Executive Vice President, Finance and Operations, Turner Entertainment Group; Executive Vice President, Finance and Administration, Turner Sales and Distribution Group; and Vice President and Group Controller, Turner Sales and Distribution Group. Before joining Turner Broadcasting, Inc. , He was with Price Waterhouse in Audit and Accounting Services, has a Bachelor’s of Science degree in accounting from the University of Alabama.

He also serves as a board member of the PATH Foundation and Atlanta Downtown Improvement District. 4) Vice President and Chief Scientific and Regulatory Officer Prior to her appointment at The Coca-Cola Company, She was Executive Vice President and Chief Science Officer for the National Food Processors Association (NFPA) where she was responsible for the overall direction of NFPA’s three laboratory centers; scientific, regulatory and international policy (including NFPA-Asia in Bangkok, Thailand); the Office of Food Safety Programs; and NFPA’s Research Foundation.

She served as NFPA’s scientific spokesperson on nutrition and health, food safety, biotechnology and food protection. She previously held leadership positions with the Distilled Spirits Council of the United States, the Chocolate Manufacturers Association, the American Cocoa Research Institute and the National Confectioners Association. She received her B. A. from Wilson College in history and biology, her M. S. in nutrition and food science from Drexel University and her Ph.

D. in food microbiology and food safety from the University of Wisconsin. She has authored/co-authored numerous scientific publications and has presented at many national and international scientific and regulatory meetings. 5) Senior Vice President and Chief People Officer She has served as Advisor to the Board, Ronald McDonald House Charities, board member for Habitat for Humanity, ongoing Coca-Cola mentor and a past mentor in the Georgia Executive Women’s Leadership program.

Ceree currently serves on the Board of Trustees, Oglethorpe University in Atlanta, and is a member of HR50, a group of the most senior Human Resources leaders from around the globe. She has a bachelor of arts degree in biology from the University of Tennessee. 2. Workers 5. President an

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated…

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual consumption of more than 34 billion gallons. Soft drinks rank as America’s favorite beverage segment, representing 25% of the total beverage market. In the early 1990s per capita consumption of soft drinks in the U. S. was 49 gallons, 15 gallons more than the next most popular beverage, water. The roots of soft drinks extend to ancient times.

Two thousand years ago Greeks and Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a practice that continues to the present. In the late 1700s Europeans and Americans began drinking the sparkling mineral water for its reputed therapeutic benefits. The first imitation mineral water in the U. S. was patented in 1809. It was called “soda water” and consisted of water and sodium bicarbonate mixed with acid to add effervescence. Pharmacists in America and Europe experimented with myriad ingredients in the hope of finding new remedies for various ailments.

Already the flavored soda waters were hailed as brain tonics for curing headaches, hangovers, and nervous afflictions. Pharmacies equipped with “soda fountains” featuring the medicinal soda water soon developed into regular meeting places for local populations. Flavored soda water gained popularity not only for medicinal benefits but for the refreshing taste as well. The market expanded in the 1830s when soda water was first sold in glass bottles. As soft drinks are so popular over the world in our days and I like them too much, I have decided to know more about them.

So the aims of my work is 1. To get acquainted with soft drinks businesses 2. To get acquainted with the newest technology in soft drinks structure 3. To get acquainted with the equipment and technique which are used in making soft drinks 4. To get acquainted of the company`s organization 2. Products 2. 1. Description of your intentions, future products. The “BUBBLES” will be a non alcohol soft drink with vitamins. I hope that it will be sold all over the world in restaurants, petrol stations, markets, stores, vending machines and so on.

It will be sold and in plastic, glass bottles, cans including aluminum and steel and also in paper such as cartons. All that packing will be recycling to not damage environment. [pic] [pic] [pic] 2. 2. Motivation for the production Why I have chosen soft drink? Because all people like it. It is a big market of soft drinks, with large competition. But I have decided to make a new top product with vitamins, because such drinks like coca cola and Pepsi a very unhealthy. My company will start to grow in Lithuania. Were aren`t so big competitions. And it is good place because it will be easy to find workers for not a huge salary.

And in Lithuania is very comfortable place to transports my soft drink “BUBBLES”, because you can transport them not only by land (by Lorries) but also by sea. The analyses show that soft drinks can replace coffee, alcoholic drinks and it is very important for our environment, because people will be healthier. And in Lithuania that fact very profitable, because after 22:00 you can`t by alcohols drinks, so people will buy soft drink. 3. Markets 3. 1. Overview of markets and tendency of expansion The “Soft Drinks & Juices Market in Europe” covers 16 countries and puts direct human consumption at Euros 72.

9 billion in 2009, or 6. 6% of the all food and drink market of Euros 1111 billion. This Soft Drinks & Juices market is forecast to decline at an average annual real -1. 16% during the 2009 – 2012 period, compared to 0. 51% for the total food and drink market. More than 784 companies are involved in Soft Drinks & Juices products across Europe, with the Top-10 companies supplying 49. 6% of the market. Current major players are Coca-Cola with a market share of 21. 5%, followed by PepsiCo (7. 9%) and Nestle (4. 8%). FFT’s online database tracks and incorporates M&A activity on a continuous basis.

Seven product markets are covered – Mineral water, Soft drinks, Fruit juices, Fruit drinks, Squashes & concentrates, Health & sports drinks, Ice tea – in the 16 countries covered by the survey. Thus the study covers 112 country and product markets, with Coca-Cola have a leading presence, being present in 57 markets. Country Markets [pic] The largest country market, Germany, makes up 29% of the total 2009 West European soft drinks market, worth Euros 72. 9 billion (for 20% of the total population), the 3 largest West European country markets, including the U. K.

And Italy, make up 61% of the total West European soft drinks market (for 50% of the total population) and the 5 largest country markets, including France and Spain, make up 76% of the West European market (for 77% of the total population). The best 3 countries market performances based on annual real % growth (2004-2009) are Denmark (+3%), Germany (+2%) and Sweden (+1. 7). Product Markets [pic] The largest product market (among the 7 products currently selected) is Soft Drinks, which makes up 45% of the total 2009 West European soft drinks market worth Euros 72.

9 billion, or Euros 32. 6 billion. The next largest product market, Mineral Water, makes up 21% of the total market, or Euros 15. 3 billion. The three largest West European product markets, adding Fruit Juices to Soft Drinks and Mineral Water, make up 83% of the total market, or Euros 60. 6 billion. The best 3 product market performances based on annual real % growth (2004-2009) are Health & sports drinks with 4. 1%, followed by Ice tea with and Soft drinks with 1. 9% and 0. 8% respectively. Foodservice `The total foodservice market is worth 20. 4% or Euros 14.

9 billion, and the retail market worth 79. 6% with a Euros 58. 1 billion. Own Label In the total market by value, distributors’ own label products now make up 17%, with manufacturers’ branded products making up 83% of the total market. Retail distributors’ own label products continue to make inroads into manufacturers’ branded products in many food and drink markets. Artisanal products (own-produced for own sale) and unbranded products (important in say fresh fruit and vegetable markets) make up the rest of distribution. 3. 2. Description of customers.

The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers. Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power.

Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers.

The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel “paid sampling. ” This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets.

As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high.

The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers’ profits were relatively high, at $0. 40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets.

Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power. 3. 3. Description of competitors My Company competes in the nonalcoholic beverages segment of the commercial beverages industry. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of numerous companies.

These include companies that, like our Company, compete in multiple geographic areas, as well as firms that are primarily regional or local in operation. Competitive products include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages.

These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form. In many of the countries in which we do business, including the United States, PepsiCo, Inc. , is one of our primary competitors. Other significant competitors include, but are not limited to, Nestle, Dr Pepper Snapple Group, Inc. , Groupe Danone, Kraft Foods Inc. and Unilever. In certain markets, our competition includes beer companies. We also compete against numerous regional and local companies and, in some markets, against retailers that have developed their own store or private label beverage brands.

Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection. My competitive strengths include leading brands with a high level of consumer acceptance; a worldwide network of bottlers and distributors of Company products; sophisticated marketing capabilities; and a talented group of dedicated associates.

My competitive challenges include strong competition in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage supplier Product Markets. 4. Production 4. 1. Technology of production Most soft drinks are made at local bottling and canning companies. Brand name franchise companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures.

Clarifying the water * 1 The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters.

During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Filtering, sterilizing, and dechlorinating the water * 2 The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. * 3 Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water’s taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.

The chlorinated water remains in the storage tank for about two hours until the reaction is complete. [pic] • 4 Next, an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients • 5 The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration.

The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. • 6 The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage • 7 Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage.

The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine.

Filling and packaging • 8 The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs. • 9 Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them.

Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally pre-printed with product information before the filling stage. • 10 Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. [pic] 4. 2. Production planning, Quantities In my companies plans to become in near future in the tops selling’s of the soft drinks in Lithuania, later in Europe and the all over the world.

Because of that in the first year we will produced a 15 types of “BUBBLES” for example diet, energetic, cola, orange, mineral water and so on. 4. 3. Locating and building the new plant The “BUBBLES” company took the decision to build the first “BUBBLES” plant near the Kedaniai city. It is like in the Lithuanian centre. It has first-class connections to the motorway, the airport and the railway system. [pic] Approximately 2,000 new jobs will be created. Production will start in the year 2013. Following a ramp-up phase, a capacity of 650 units a day will be reached.

The most important criteria to be considered were as follows: 1. The economic viability and flexibility. 2. The features and the location of the future plant area. 3. The availability of qualified manpower. 4. The use of existing structures in terms of plants, suppliers and logistics. 5. The infrastructure for transport, supplies and waste management. 6. The connection to the sales and distribution network. 7. The process of implementation. Also a new recycling factory will be needed; it is easier to recycle bottles, plastic, steel, paper than produce new packaging.

But also there will be sector of production packaging. 4. 4. Inside plant-layout procedure Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. So I have some criteria’s, principals that I’m regarding, and about what I will talk with architecture. 1. Integration:

Integration of people, money, materials and machines and support services in order to get the optimum output of resources. 2. Cubic space utilization: Utilization of both horizontal and vertical spaces and height is very important to use the space as much as possible. 3. Minimum distance: Minimum travel of people and material should be implemented means; the total distance travel by the people and material should be minimized as much as possible. Further straight line movements should be promoted. 3. Floor: Arranging the floor to move the material/finished products in forward direction towards the final stage.

4. Maximizing coordination: Entry into and disposal from any department should be in such manner that it is most convenient to the issuing or receiving departments. The layout should be consider as a whole. 5. Minimum flexibility: The layout should be able to modify when necessary. 6. Maximum accessibility: All servicing and maintenance points should be readily accessible. For example;equipment should not be placed against a wall because necessary servicing or maintenance cannot be carried out easily. Further; equipments or other necessary unitskeep in front of a fuse box will impede the work of the electrician.

7. Safety security: Due consideration to industrial safety methods is necessary. Care must be taken notonly of the persons operating the equipment, but also of the passes-by, who may berequired to go behind equipment as the back of which may be unsafe. 8. Minimum handling: Reduce the material handling to the minimum. Material being worked on should be keptat working height and never have to be placed on the floor if it is to be lifted later. The following principles also can be taken in to account when planning for a good plantlayout; •The geographical limitations of the site;

•Interaction with existing or planned facilities on site such as existing roadways,drainage and utilities routings; •Interaction with other plants on site; •The need for plant operability and maintainability; •The need to locate hazardous materials facilities as far as possible from siteboundaries and people living in the local neighborhood; •The need to prevent confinement where release of flammable substances mayoccur; •The need to provide access for emergency services; •The need to provide emergency escape routes for on-site personnel; •The need to provide acceptable working conditions for operators.

4. 5. Equipment selection Syrup Batch tank – Stainless steel tanks ranging is size from 500 liters to 20,000 liters. The syrup is prepared (“mixed” or “batched”) and or stored in these tanks. Syrup Transfer Line – A stainless steel line through which the syrup is pumped to the filling area. Proportioner – Equipment which prepares the final soft drink by blending the syrup and treated water at a specific ratio. (i. e. 1 part syrup to 5 parts treated water; 1:5) Carbo-cooler – Equipment which carbonates and cools the soft drink (2-5 ?C) just prior to filling Filler room – The enclosed area of bottling line which contains the filler, capper.

Proportioner, and carbo-cooler. Packaging area – The area of bottling line which consist of all equipment other than that which is contained in the filler room. Bottle Warmer (Can warmer) – Equipment on a bottling line containing sets of warm water sprays. The individual containers (bottles or cans) pass through the warmer after filling for the purpose of bringing them to room temperature. Bottle washer – (“soaker”) – A large machine located just prior o the filler on a bottling line containing a hot alkaline (caustic) solution.

Returnable bottles pass through, soaking in this solution for the purpose of being thoroughly cleaned. Prior to their exit from the bottle washer the bottles are completely rinsed with water to remove any residual caustic. 4. 6. Materials handling Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and bites to the beverage and also acts as a mild preservative. Carbon dioxide is an uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively inexpensive and easy to liquefy. The second main ingredient is sugar, which makes up 7-12% of a soft drink.

Used in either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the “mouth-feel,” an important component for consumer enjoyment of a soft drink. Sugar also balances flavors and acids. Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes were introduced more successfully, notably aspartame, or Nutra-Sweet, which was widely used throughout the 1980s and 1990s for diet soft drinks.

Because some high-intensity sweeteners do not provide the desired mouth-feel and aftertaste of sugar, they often are combined with sugar and other sweeteners and flavors to improve the beverage. The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness, and acidity (pH). Acids add sharpness to the background taste and enhance the thirst-quenching experience by stimulating saliva flow. The most common acid in soft drinks is citric acid, which has a lemony flavor. Acids also reduce pH levels, mildly preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavorings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance “eye appeal” by serving as clouding agents. Emulsions are mixtures of liquids that are generally incompatible. They consist of water-based elements, such as gums, pectins, and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents.

Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, maintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives in response to increasing health concerns of the public. Impurities in the water are removed through a process of coagulation, filtration, and chlorination. Coagulation involves mixing flock into the water to absorb suspended particles.

The water is then poured through a sand filter to remove fine particles of Roc. To sterilize the water, small amounts of chlorine are added to the water and filtered out. 4. 7. Example of flow process, operation chart [pic] The major raw materials required for production of carbonated beverage are sugar, concentrates, carbon dioxide and water. Sugar is delivered either in hopper cars with pneumatic discharge or in bags. For reasons of micro-biological stabilization, the sugar syrup is produced in a hot dissolving process. The sugar is admixed by means of conveying elevators.

In case the sugar is dirty or slightly brown, the application of active carbon is indispensable. For heating purposes and for maintaining a constant dissolving temperature of 85oC, the sugar dissolving tanks have either a heating jacket or are equipped with an interior heating spiral. Exact weighing is essential in this process. It is done by a pressure gauge with a large-scale reading instrument. The entire dissolving process takes about one hour. After that the mixture is filtered, cooled by the plate cooler, and from there the product flows directly into the mixing and storing vessels.

The raw materials and essences are stored in a cool-room at approx. 4oC. They are either pumped into the concentrate preparing vessel by a barrel pump or they are manually added. Citric acid is dissolved in a separate vessel. In order to obtain homogeneous final syrup, the mixture should be stirred for another15 minutes in the mixing vessel. During this time the measuring of Brix content should be done that correction can be made, if necessary. Then the syrup is transported to the pre-mixer by means of a pump. There the beverage is de-aerated, dosed, cooled and carbonated.

In a vacuum tank the treated water is de-aerated and cooled down in a multiple stage plate cooler to approximately 8oC in a first step, and then conveyed to the jet apparatus, where, according to the Venturi-principle, syrup and water are mixed. In the carbonating department Carbon dioxide is added to the mixed drink by means of a jetting apparatus, and thereafter the product is conveyed to the storage tank. From this tank a discharge is made out for further cooling in the second stage of the plate cooler at approximately 3oC- 4oC. Without mechanical help the product is conveyed to the filling machine.

The filling and sealing unit works according to the single-chamber counter-pressure principle and guarantees a quality-preserving bottling of drinks with highest microbiological security. 4. 8. Schedule of realization of the project I hope that the plant will be built in 2012, and producing will be started in 2013, so the first profit I will get in the end of 2013 and beginning of the 2014. During the 2013 we will try to produce 15 tastes of the “BUBBLES”, and we will see which of them successful, and which of them we need to replace. 4. 9. Packing.

The main purpose of soft drinks packaging is to protect the product, maintain the convenience of use for the consumer and to reduce waste. All soft drinks packaging can be recycled and/or re-used to make other useful products. For example: • aluminium cans are recycled and used with raw material to produce new batches of cans; • plastic bottles can be used to make fleece textile products, fibre filling and street furniture; • glass bottles can be reused or recycled to use in the production of new glass; and • paper and board is recycled to produce tissue, paper bags, chip board, briefcases and office furniture.

The reduction of packaging waste has always been a primary concern of the soft drinks industry. Therefore, the industry has consistently been at the forefront of packaging innovations and is constantly looking at ways to reduce the amount of raw materials used in various types of packaging. Types of packaging The main forms of packaging used by the soft drinks industry are: • glass bottles • plastic including PET (Polyethylene terephthalate), PVC (Polyvinyl chloride), HDPE (High density polyethylene), cups (made from polystyrene and polyethylene), pouches (low density polyethylene) • cans including aluminium and steel.

• paper such as cartons When manufacturers are considering packaging for a soft drink they need to consider the functions of packaging to ensure that the products reach the consumer in the best possible condition. The functions of packaging are to contain, protect, identify and sell the product while keeping in mind the impact upon the environment and the costs involved. Certain packaging is more suitable for certain types of product than others when you consider the above criteria.

In my company we will use all types of packaging to encourage consumers. So everyone can chose the type of bottle he or she likes, from o,2 to 2,5 liters, that are more comfortable for them. 5. Personnel 1. Highest level of managers, education, and experience; 1) Executive Vice President Received an industrial engineering degree from Los Andes University in 1978 and graduated from the Stanford University Executive Program in 1992.

He also taught marketing, operational research, and advertising during his career with Coca-Cola de Colombia and has served as a director of several public bottling companies during his career with the Company. 2) Executive Vice President Prior to joining the Company, worked for S. C. Johnson Wax in marketing and sales and for Banco Santander in corporate finance and investor relations, has a degree in business administration and law from ICADE University in Madrid. 3) Senior Vice President, Global Business and Technology.

Services Prior to joining the Company, served as Executive Vice President, Finance and Operations, Turner Entertainment Group; Executive Vice President, Finance and Administration, Turner Sales and Distribution Group; and Vice President and Group Controller, Turner Sales and Distribution Group. Before joining Turner Broadcasting, Inc. , He was with Price Waterhouse in Audit and Accounting Services, has a Bachelor’s of Science degree in accounting from the University of Alabama.

He also serves as a board member of the PATH Foundation and Atlanta Downtown Improvement District. 4) Vice President and Chief Scientific and Regulatory Officer Prior to her appointment at The Coca-Cola Company, She was Executive Vice President and Chief Science Officer for the National Food Processors Association (NFPA) where she was responsible for the overall direction of NFPA’s three laboratory centers; scientific, regulatory and international policy (including NFPA-Asia in Bangkok, Thailand); the Office of Food Safety Programs; and NFPA’s Research Foundation.

She served as NFPA’s scientific spokesperson on nutrition and health, food safety, biotechnology and food protection. She previously held leadership positions with the Distilled Spirits Council of the United States, the Chocolate Manufacturers Association, the American Cocoa Research Institute and the National Confectioners Association. She received her B. A. from Wilson College in history and biology, her M. S. in nutrition and food science from Drexel University and her Ph.

D. in food microbiology and food safety from the University of Wisconsin. She has authored/co-authored numerous scientific publications and has presented at many national and international scientific and regulatory meetings. 5) Senior Vice President and Chief People Officer She has served as Advisor to the Board, Ronald McDonald House Charities, board member for Habitat for Humanity, ongoing Coca-Cola mentor and a past mentor in the Georgia Executive Women’s Leadership program.

Ceree currently serves on the Board of Trustees, Oglethorpe University in Atlanta, and is a member of HR50, a group of the most senior Human Resources leaders from around the globe. She has a bachelor of arts degree in biology from the University of Tennessee. 2. Workers 5. President an

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated…

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual consumption of more than 34 billion gallons. Soft drinks rank as America’s favorite beverage segment, representing 25% of the total beverage market. In the early 1990s per capita consumption of soft drinks in the U. S. was 49 gallons, 15 gallons more than the next most popular beverage, water. The roots of soft drinks extend to ancient times.

Two thousand years ago Greeks and Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a practice that continues to the present. In the late 1700s Europeans and Americans began drinking the sparkling mineral water for its reputed therapeutic benefits. The first imitation mineral water in the U. S. was patented in 1809. It was called “soda water” and consisted of water and sodium bicarbonate mixed with acid to add effervescence. Pharmacists in America and Europe experimented with myriad ingredients in the hope of finding new remedies for various ailments.

Already the flavored soda waters were hailed as brain tonics for curing headaches, hangovers, and nervous afflictions. Pharmacies equipped with “soda fountains” featuring the medicinal soda water soon developed into regular meeting places for local populations. Flavored soda water gained popularity not only for medicinal benefits but for the refreshing taste as well. The market expanded in the 1830s when soda water was first sold in glass bottles. As soft drinks are so popular over the world in our days and I like them too much, I have decided to know more about them.

So the aims of my work is 1. To get acquainted with soft drinks businesses 2. To get acquainted with the newest technology in soft drinks structure 3. To get acquainted with the equipment and technique which are used in making soft drinks 4. To get acquainted of the company`s organization 2. Products 2. 1. Description of your intentions, future products. The “BUBBLES” will be a non alcohol soft drink with vitamins. I hope that it will be sold all over the world in restaurants, petrol stations, markets, stores, vending machines and so on.

It will be sold and in plastic, glass bottles, cans including aluminum and steel and also in paper such as cartons. All that packing will be recycling to not damage environment. [pic] [pic] [pic] 2. 2. Motivation for the production Why I have chosen soft drink? Because all people like it. It is a big market of soft drinks, with large competition. But I have decided to make a new top product with vitamins, because such drinks like coca cola and Pepsi a very unhealthy. My company will start to grow in Lithuania. Were aren`t so big competitions. And it is good place because it will be easy to find workers for not a huge salary.

And in Lithuania is very comfortable place to transports my soft drink “BUBBLES”, because you can transport them not only by land (by Lorries) but also by sea. The analyses show that soft drinks can replace coffee, alcoholic drinks and it is very important for our environment, because people will be healthier. And in Lithuania that fact very profitable, because after 22:00 you can`t by alcohols drinks, so people will buy soft drink. 3. Markets 3. 1. Overview of markets and tendency of expansion The “Soft Drinks & Juices Market in Europe” covers 16 countries and puts direct human consumption at Euros 72.

9 billion in 2009, or 6. 6% of the all food and drink market of Euros 1111 billion. This Soft Drinks & Juices market is forecast to decline at an average annual real -1. 16% during the 2009 – 2012 period, compared to 0. 51% for the total food and drink market. More than 784 companies are involved in Soft Drinks & Juices products across Europe, with the Top-10 companies supplying 49. 6% of the market. Current major players are Coca-Cola with a market share of 21. 5%, followed by PepsiCo (7. 9%) and Nestle (4. 8%). FFT’s online database tracks and incorporates M&A activity on a continuous basis.

Seven product markets are covered – Mineral water, Soft drinks, Fruit juices, Fruit drinks, Squashes & concentrates, Health & sports drinks, Ice tea – in the 16 countries covered by the survey. Thus the study covers 112 country and product markets, with Coca-Cola have a leading presence, being present in 57 markets. Country Markets [pic] The largest country market, Germany, makes up 29% of the total 2009 West European soft drinks market, worth Euros 72. 9 billion (for 20% of the total population), the 3 largest West European country markets, including the U. K.

And Italy, make up 61% of the total West European soft drinks market (for 50% of the total population) and the 5 largest country markets, including France and Spain, make up 76% of the West European market (for 77% of the total population). The best 3 countries market performances based on annual real % growth (2004-2009) are Denmark (+3%), Germany (+2%) and Sweden (+1. 7). Product Markets [pic] The largest product market (among the 7 products currently selected) is Soft Drinks, which makes up 45% of the total 2009 West European soft drinks market worth Euros 72.

9 billion, or Euros 32. 6 billion. The next largest product market, Mineral Water, makes up 21% of the total market, or Euros 15. 3 billion. The three largest West European product markets, adding Fruit Juices to Soft Drinks and Mineral Water, make up 83% of the total market, or Euros 60. 6 billion. The best 3 product market performances based on annual real % growth (2004-2009) are Health & sports drinks with 4. 1%, followed by Ice tea with and Soft drinks with 1. 9% and 0. 8% respectively. Foodservice `The total foodservice market is worth 20. 4% or Euros 14.

9 billion, and the retail market worth 79. 6% with a Euros 58. 1 billion. Own Label In the total market by value, distributors’ own label products now make up 17%, with manufacturers’ branded products making up 83% of the total market. Retail distributors’ own label products continue to make inroads into manufacturers’ branded products in many food and drink markets. Artisanal products (own-produced for own sale) and unbranded products (important in say fresh fruit and vegetable markets) make up the rest of distribution. 3. 2. Description of customers.

The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers. Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power.

Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers.

The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel “paid sampling. ” This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets.

As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high.

The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers’ profits were relatively high, at $0. 40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets.

Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power. 3. 3. Description of competitors My Company competes in the nonalcoholic beverages segment of the commercial beverages industry. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of numerous companies.

These include companies that, like our Company, compete in multiple geographic areas, as well as firms that are primarily regional or local in operation. Competitive products include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages.

These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form. In many of the countries in which we do business, including the United States, PepsiCo, Inc. , is one of our primary competitors. Other significant competitors include, but are not limited to, Nestle, Dr Pepper Snapple Group, Inc. , Groupe Danone, Kraft Foods Inc. and Unilever. In certain markets, our competition includes beer companies. We also compete against numerous regional and local companies and, in some markets, against retailers that have developed their own store or private label beverage brands.

Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection. My competitive strengths include leading brands with a high level of consumer acceptance; a worldwide network of bottlers and distributors of Company products; sophisticated marketing capabilities; and a talented group of dedicated associates.

My competitive challenges include strong competition in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage supplier Product Markets. 4. Production 4. 1. Technology of production Most soft drinks are made at local bottling and canning companies. Brand name franchise companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures.

Clarifying the water * 1 The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters.

During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Filtering, sterilizing, and dechlorinating the water * 2 The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. * 3 Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water’s taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.

The chlorinated water remains in the storage tank for about two hours until the reaction is complete. [pic] • 4 Next, an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients • 5 The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration.

The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. • 6 The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage • 7 Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage.

The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine.

Filling and packaging • 8 The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs. • 9 Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them.

Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally pre-printed with product information before the filling stage. • 10 Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. [pic] 4. 2. Production planning, Quantities In my companies plans to become in near future in the tops selling’s of the soft drinks in Lithuania, later in Europe and the all over the world.

Because of that in the first year we will produced a 15 types of “BUBBLES” for example diet, energetic, cola, orange, mineral water and so on. 4. 3. Locating and building the new plant The “BUBBLES” company took the decision to build the first “BUBBLES” plant near the Kedaniai city. It is like in the Lithuanian centre. It has first-class connections to the motorway, the airport and the railway system. [pic] Approximately 2,000 new jobs will be created. Production will start in the year 2013. Following a ramp-up phase, a capacity of 650 units a day will be reached.

The most important criteria to be considered were as follows: 1. The economic viability and flexibility. 2. The features and the location of the future plant area. 3. The availability of qualified manpower. 4. The use of existing structures in terms of plants, suppliers and logistics. 5. The infrastructure for transport, supplies and waste management. 6. The connection to the sales and distribution network. 7. The process of implementation. Also a new recycling factory will be needed; it is easier to recycle bottles, plastic, steel, paper than produce new packaging.

But also there will be sector of production packaging. 4. 4. Inside plant-layout procedure Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. So I have some criteria’s, principals that I’m regarding, and about what I will talk with architecture. 1. Integration:

Integration of people, money, materials and machines and support services in order to get the optimum output of resources. 2. Cubic space utilization: Utilization of both horizontal and vertical spaces and height is very important to use the space as much as possible. 3. Minimum distance: Minimum travel of people and material should be implemented means; the total distance travel by the people and material should be minimized as much as possible. Further straight line movements should be promoted. 3. Floor: Arranging the floor to move the material/finished products in forward direction towards the final stage.

4. Maximizing coordination: Entry into and disposal from any department should be in such manner that it is most convenient to the issuing or receiving departments. The layout should be consider as a whole. 5. Minimum flexibility: The layout should be able to modify when necessary. 6. Maximum accessibility: All servicing and maintenance points should be readily accessible. For example;equipment should not be placed against a wall because necessary servicing or maintenance cannot be carried out easily. Further; equipments or other necessary unitskeep in front of a fuse box will impede the work of the electrician.

7. Safety security: Due consideration to industrial safety methods is necessary. Care must be taken notonly of the persons operating the equipment, but also of the passes-by, who may berequired to go behind equipment as the back of which may be unsafe. 8. Minimum handling: Reduce the material handling to the minimum. Material being worked on should be keptat working height and never have to be placed on the floor if it is to be lifted later. The following principles also can be taken in to account when planning for a good plantlayout; •The geographical limitations of the site;

•Interaction with existing or planned facilities on site such as existing roadways,drainage and utilities routings; •Interaction with other plants on site; •The need for plant operability and maintainability; •The need to locate hazardous materials facilities as far as possible from siteboundaries and people living in the local neighborhood; •The need to prevent confinement where release of flammable substances mayoccur; •The need to provide access for emergency services; •The need to provide emergency escape routes for on-site personnel; •The need to provide acceptable working conditions for operators.

4. 5. Equipment selection Syrup Batch tank – Stainless steel tanks ranging is size from 500 liters to 20,000 liters. The syrup is prepared (“mixed” or “batched”) and or stored in these tanks. Syrup Transfer Line – A stainless steel line through which the syrup is pumped to the filling area. Proportioner – Equipment which prepares the final soft drink by blending the syrup and treated water at a specific ratio. (i. e. 1 part syrup to 5 parts treated water; 1:5) Carbo-cooler – Equipment which carbonates and cools the soft drink (2-5 ?C) just prior to filling Filler room – The enclosed area of bottling line which contains the filler, capper.

Proportioner, and carbo-cooler. Packaging area – The area of bottling line which consist of all equipment other than that which is contained in the filler room. Bottle Warmer (Can warmer) – Equipment on a bottling line containing sets of warm water sprays. The individual containers (bottles or cans) pass through the warmer after filling for the purpose of bringing them to room temperature. Bottle washer – (“soaker”) – A large machine located just prior o the filler on a bottling line containing a hot alkaline (caustic) solution.

Returnable bottles pass through, soaking in this solution for the purpose of being thoroughly cleaned. Prior to their exit from the bottle washer the bottles are completely rinsed with water to remove any residual caustic. 4. 6. Materials handling Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and bites to the beverage and also acts as a mild preservative. Carbon dioxide is an uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively inexpensive and easy to liquefy. The second main ingredient is sugar, which makes up 7-12% of a soft drink.

Used in either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the “mouth-feel,” an important component for consumer enjoyment of a soft drink. Sugar also balances flavors and acids. Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes were introduced more successfully, notably aspartame, or Nutra-Sweet, which was widely used throughout the 1980s and 1990s for diet soft drinks.

Because some high-intensity sweeteners do not provide the desired mouth-feel and aftertaste of sugar, they often are combined with sugar and other sweeteners and flavors to improve the beverage. The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness, and acidity (pH). Acids add sharpness to the background taste and enhance the thirst-quenching experience by stimulating saliva flow. The most common acid in soft drinks is citric acid, which has a lemony flavor. Acids also reduce pH levels, mildly preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavorings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance “eye appeal” by serving as clouding agents. Emulsions are mixtures of liquids that are generally incompatible. They consist of water-based elements, such as gums, pectins, and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents.

Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, maintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives in response to increasing health concerns of the public. Impurities in the water are removed through a process of coagulation, filtration, and chlorination. Coagulation involves mixing flock into the water to absorb suspended particles.

The water is then poured through a sand filter to remove fine particles of Roc. To sterilize the water, small amounts of chlorine are added to the water and filtered out. 4. 7. Example of flow process, operation chart [pic] The major raw materials required for production of carbonated beverage are sugar, concentrates, carbon dioxide and water. Sugar is delivered either in hopper cars with pneumatic discharge or in bags. For reasons of micro-biological stabilization, the sugar syrup is produced in a hot dissolving process. The sugar is admixed by means of conveying elevators.

In case the sugar is dirty or slightly brown, the application of active carbon is indispensable. For heating purposes and for maintaining a constant dissolving temperature of 85oC, the sugar dissolving tanks have either a heating jacket or are equipped with an interior heating spiral. Exact weighing is essential in this process. It is done by a pressure gauge with a large-scale reading instrument. The entire dissolving process takes about one hour. After that the mixture is filtered, cooled by the plate cooler, and from there the product flows directly into the mixing and storing vessels.

The raw materials and essences are stored in a cool-room at approx. 4oC. They are either pumped into the concentrate preparing vessel by a barrel pump or they are manually added. Citric acid is dissolved in a separate vessel. In order to obtain homogeneous final syrup, the mixture should be stirred for another15 minutes in the mixing vessel. During this time the measuring of Brix content should be done that correction can be made, if necessary. Then the syrup is transported to the pre-mixer by means of a pump. There the beverage is de-aerated, dosed, cooled and carbonated.

In a vacuum tank the treated water is de-aerated and cooled down in a multiple stage plate cooler to approximately 8oC in a first step, and then conveyed to the jet apparatus, where, according to the Venturi-principle, syrup and water are mixed. In the carbonating department Carbon dioxide is added to the mixed drink by means of a jetting apparatus, and thereafter the product is conveyed to the storage tank. From this tank a discharge is made out for further cooling in the second stage of the plate cooler at approximately 3oC- 4oC. Without mechanical help the product is conveyed to the filling machine.

The filling and sealing unit works according to the single-chamber counter-pressure principle and guarantees a quality-preserving bottling of drinks with highest microbiological security. 4. 8. Schedule of realization of the project I hope that the plant will be built in 2012, and producing will be started in 2013, so the first profit I will get in the end of 2013 and beginning of the 2014. During the 2013 we will try to produce 15 tastes of the “BUBBLES”, and we will see which of them successful, and which of them we need to replace. 4. 9. Packing.

The main purpose of soft drinks packaging is to protect the product, maintain the convenience of use for the consumer and to reduce waste. All soft drinks packaging can be recycled and/or re-used to make other useful products. For example: • aluminium cans are recycled and used with raw material to produce new batches of cans; • plastic bottles can be used to make fleece textile products, fibre filling and street furniture; • glass bottles can be reused or recycled to use in the production of new glass; and • paper and board is recycled to produce tissue, paper bags, chip board, briefcases and office furniture.

The reduction of packaging waste has always been a primary concern of the soft drinks industry. Therefore, the industry has consistently been at the forefront of packaging innovations and is constantly looking at ways to reduce the amount of raw materials used in various types of packaging. Types of packaging The main forms of packaging used by the soft drinks industry are: • glass bottles • plastic including PET (Polyethylene terephthalate), PVC (Polyvinyl chloride), HDPE (High density polyethylene), cups (made from polystyrene and polyethylene), pouches (low density polyethylene) • cans including aluminium and steel.

• paper such as cartons When manufacturers are considering packaging for a soft drink they need to consider the functions of packaging to ensure that the products reach the consumer in the best possible condition. The functions of packaging are to contain, protect, identify and sell the product while keeping in mind the impact upon the environment and the costs involved. Certain packaging is more suitable for certain types of product than others when you consider the above criteria.

In my company we will use all types of packaging to encourage consumers. So everyone can chose the type of bottle he or she likes, from o,2 to 2,5 liters, that are more comfortable for them. 5. Personnel 1. Highest level of managers, education, and experience; 1) Executive Vice President Received an industrial engineering degree from Los Andes University in 1978 and graduated from the Stanford University Executive Program in 1992.

He also taught marketing, operational research, and advertising during his career with Coca-Cola de Colombia and has served as a director of several public bottling companies during his career with the Company. 2) Executive Vice President Prior to joining the Company, worked for S. C. Johnson Wax in marketing and sales and for Banco Santander in corporate finance and investor relations, has a degree in business administration and law from ICADE University in Madrid. 3) Senior Vice President, Global Business and Technology.

Services Prior to joining the Company, served as Executive Vice President, Finance and Operations, Turner Entertainment Group; Executive Vice President, Finance and Administration, Turner Sales and Distribution Group; and Vice President and Group Controller, Turner Sales and Distribution Group. Before joining Turner Broadcasting, Inc. , He was with Price Waterhouse in Audit and Accounting Services, has a Bachelor’s of Science degree in accounting from the University of Alabama.

He also serves as a board member of the PATH Foundation and Atlanta Downtown Improvement District. 4) Vice President and Chief Scientific and Regulatory Officer Prior to her appointment at The Coca-Cola Company, She was Executive Vice President and Chief Science Officer for the National Food Processors Association (NFPA) where she was responsible for the overall direction of NFPA’s three laboratory centers; scientific, regulatory and international policy (including NFPA-Asia in Bangkok, Thailand); the Office of Food Safety Programs; and NFPA’s Research Foundation.

She served as NFPA’s scientific spokesperson on nutrition and health, food safety, biotechnology and food protection. She previously held leadership positions with the Distilled Spirits Council of the United States, the Chocolate Manufacturers Association, the American Cocoa Research Institute and the National Confectioners Association. She received her B. A. from Wilson College in history and biology, her M. S. in nutrition and food science from Drexel University and her Ph.

D. in food microbiology and food safety from the University of Wisconsin. She has authored/co-authored numerous scientific publications and has presented at many national and international scientific and regulatory meetings. 5) Senior Vice President and Chief People Officer She has served as Advisor to the Board, Ronald McDonald House Charities, board member for Habitat for Humanity, ongoing Coca-Cola mentor and a past mentor in the Georgia Executive Women’s Leadership program.

Ceree currently serves on the Board of Trustees, Oglethorpe University in Atlanta, and is a member of HR50, a group of the most senior Human Resources leaders from around the globe. She has a bachelor of arts degree in biology from the University of Tennessee. 2. Workers 5. President an

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated…

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual consumption of more than 34 billion gallons. Soft drinks rank as America’s favorite beverage segment, representing 25% of the total beverage market. In the early 1990s per capita consumption of soft drinks in the U. S. was 49 gallons, 15 gallons more than the next most popular beverage, water. The roots of soft drinks extend to ancient times.

Two thousand years ago Greeks and Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a practice that continues to the present. In the late 1700s Europeans and Americans began drinking the sparkling mineral water for its reputed therapeutic benefits. The first imitation mineral water in the U. S. was patented in 1809. It was called “soda water” and consisted of water and sodium bicarbonate mixed with acid to add effervescence. Pharmacists in America and Europe experimented with myriad ingredients in the hope of finding new remedies for various ailments.

Already the flavored soda waters were hailed as brain tonics for curing headaches, hangovers, and nervous afflictions. Pharmacies equipped with “soda fountains” featuring the medicinal soda water soon developed into regular meeting places for local populations. Flavored soda water gained popularity not only for medicinal benefits but for the refreshing taste as well. The market expanded in the 1830s when soda water was first sold in glass bottles. As soft drinks are so popular over the world in our days and I like them too much, I have decided to know more about them.

So the aims of my work is 1. To get acquainted with soft drinks businesses 2. To get acquainted with the newest technology in soft drinks structure 3. To get acquainted with the equipment and technique which are used in making soft drinks 4. To get acquainted of the company`s organization 2. Products 2. 1. Description of your intentions, future products. The “BUBBLES” will be a non alcohol soft drink with vitamins. I hope that it will be sold all over the world in restaurants, petrol stations, markets, stores, vending machines and so on.

It will be sold and in plastic, glass bottles, cans including aluminum and steel and also in paper such as cartons. All that packing will be recycling to not damage environment. [pic] [pic] [pic] 2. 2. Motivation for the production Why I have chosen soft drink? Because all people like it. It is a big market of soft drinks, with large competition. But I have decided to make a new top product with vitamins, because such drinks like coca cola and Pepsi a very unhealthy. My company will start to grow in Lithuania. Were aren`t so big competitions. And it is good place because it will be easy to find workers for not a huge salary.

And in Lithuania is very comfortable place to transports my soft drink “BUBBLES”, because you can transport them not only by land (by Lorries) but also by sea. The analyses show that soft drinks can replace coffee, alcoholic drinks and it is very important for our environment, because people will be healthier. And in Lithuania that fact very profitable, because after 22:00 you can`t by alcohols drinks, so people will buy soft drink. 3. Markets 3. 1. Overview of markets and tendency of expansion The “Soft Drinks & Juices Market in Europe” covers 16 countries and puts direct human consumption at Euros 72.

9 billion in 2009, or 6. 6% of the all food and drink market of Euros 1111 billion. This Soft Drinks & Juices market is forecast to decline at an average annual real -1. 16% during the 2009 – 2012 period, compared to 0. 51% for the total food and drink market. More than 784 companies are involved in Soft Drinks & Juices products across Europe, with the Top-10 companies supplying 49. 6% of the market. Current major players are Coca-Cola with a market share of 21. 5%, followed by PepsiCo (7. 9%) and Nestle (4. 8%). FFT’s online database tracks and incorporates M&A activity on a continuous basis.

Seven product markets are covered – Mineral water, Soft drinks, Fruit juices, Fruit drinks, Squashes & concentrates, Health & sports drinks, Ice tea – in the 16 countries covered by the survey. Thus the study covers 112 country and product markets, with Coca-Cola have a leading presence, being present in 57 markets. Country Markets [pic] The largest country market, Germany, makes up 29% of the total 2009 West European soft drinks market, worth Euros 72. 9 billion (for 20% of the total population), the 3 largest West European country markets, including the U. K.

And Italy, make up 61% of the total West European soft drinks market (for 50% of the total population) and the 5 largest country markets, including France and Spain, make up 76% of the West European market (for 77% of the total population). The best 3 countries market performances based on annual real % growth (2004-2009) are Denmark (+3%), Germany (+2%) and Sweden (+1. 7). Product Markets [pic] The largest product market (among the 7 products currently selected) is Soft Drinks, which makes up 45% of the total 2009 West European soft drinks market worth Euros 72.

9 billion, or Euros 32. 6 billion. The next largest product market, Mineral Water, makes up 21% of the total market, or Euros 15. 3 billion. The three largest West European product markets, adding Fruit Juices to Soft Drinks and Mineral Water, make up 83% of the total market, or Euros 60. 6 billion. The best 3 product market performances based on annual real % growth (2004-2009) are Health & sports drinks with 4. 1%, followed by Ice tea with and Soft drinks with 1. 9% and 0. 8% respectively. Foodservice `The total foodservice market is worth 20. 4% or Euros 14.

9 billion, and the retail market worth 79. 6% with a Euros 58. 1 billion. Own Label In the total market by value, distributors’ own label products now make up 17%, with manufacturers’ branded products making up 83% of the total market. Retail distributors’ own label products continue to make inroads into manufacturers’ branded products in many food and drink markets. Artisanal products (own-produced for own sale) and unbranded products (important in say fresh fruit and vegetable markets) make up the rest of distribution. 3. 2. Description of customers.

The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers. Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power.

Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers.

The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel “paid sampling. ” This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets.

As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high.

The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers’ profits were relatively high, at $0. 40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets.

Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power. 3. 3. Description of competitors My Company competes in the nonalcoholic beverages segment of the commercial beverages industry. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of numerous companies.

These include companies that, like our Company, compete in multiple geographic areas, as well as firms that are primarily regional or local in operation. Competitive products include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages.

These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form. In many of the countries in which we do business, including the United States, PepsiCo, Inc. , is one of our primary competitors. Other significant competitors include, but are not limited to, Nestle, Dr Pepper Snapple Group, Inc. , Groupe Danone, Kraft Foods Inc. and Unilever. In certain markets, our competition includes beer companies. We also compete against numerous regional and local companies and, in some markets, against retailers that have developed their own store or private label beverage brands.

Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection. My competitive strengths include leading brands with a high level of consumer acceptance; a worldwide network of bottlers and distributors of Company products; sophisticated marketing capabilities; and a talented group of dedicated associates.

My competitive challenges include strong competition in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage supplier Product Markets. 4. Production 4. 1. Technology of production Most soft drinks are made at local bottling and canning companies. Brand name franchise companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures.

Clarifying the water * 1 The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters.

During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Filtering, sterilizing, and dechlorinating the water * 2 The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. * 3 Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water’s taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.

The chlorinated water remains in the storage tank for about two hours until the reaction is complete. [pic] • 4 Next, an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients • 5 The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration.

The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. • 6 The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage • 7 Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage.

The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine.

Filling and packaging • 8 The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs. • 9 Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them.

Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally pre-printed with product information before the filling stage. • 10 Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. [pic] 4. 2. Production planning, Quantities In my companies plans to become in near future in the tops selling’s of the soft drinks in Lithuania, later in Europe and the all over the world.

Because of that in the first year we will produced a 15 types of “BUBBLES” for example diet, energetic, cola, orange, mineral water and so on. 4. 3. Locating and building the new plant The “BUBBLES” company took the decision to build the first “BUBBLES” plant near the Kedaniai city. It is like in the Lithuanian centre. It has first-class connections to the motorway, the airport and the railway system. [pic] Approximately 2,000 new jobs will be created. Production will start in the year 2013. Following a ramp-up phase, a capacity of 650 units a day will be reached.

The most important criteria to be considered were as follows: 1. The economic viability and flexibility. 2. The features and the location of the future plant area. 3. The availability of qualified manpower. 4. The use of existing structures in terms of plants, suppliers and logistics. 5. The infrastructure for transport, supplies and waste management. 6. The connection to the sales and distribution network. 7. The process of implementation. Also a new recycling factory will be needed; it is easier to recycle bottles, plastic, steel, paper than produce new packaging.

But also there will be sector of production packaging. 4. 4. Inside plant-layout procedure Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. So I have some criteria’s, principals that I’m regarding, and about what I will talk with architecture. 1. Integration:

Integration of people, money, materials and machines and support services in order to get the optimum output of resources. 2. Cubic space utilization: Utilization of both horizontal and vertical spaces and height is very important to use the space as much as possible. 3. Minimum distance: Minimum travel of people and material should be implemented means; the total distance travel by the people and material should be minimized as much as possible. Further straight line movements should be promoted. 3. Floor: Arranging the floor to move the material/finished products in forward direction towards the final stage.

4. Maximizing coordination: Entry into and disposal from any department should be in such manner that it is most convenient to the issuing or receiving departments. The layout should be consider as a whole. 5. Minimum flexibility: The layout should be able to modify when necessary. 6. Maximum accessibility: All servicing and maintenance points should be readily accessible. For example;equipment should not be placed against a wall because necessary servicing or maintenance cannot be carried out easily. Further; equipments or other necessary unitskeep in front of a fuse box will impede the work of the electrician.

7. Safety security: Due consideration to industrial safety methods is necessary. Care must be taken notonly of the persons operating the equipment, but also of the passes-by, who may berequired to go behind equipment as the back of which may be unsafe. 8. Minimum handling: Reduce the material handling to the minimum. Material being worked on should be keptat working height and never have to be placed on the floor if it is to be lifted later. The following principles also can be taken in to account when planning for a good plantlayout; •The geographical limitations of the site;

•Interaction with existing or planned facilities on site such as existing roadways,drainage and utilities routings; •Interaction with other plants on site; •The need for plant operability and maintainability; •The need to locate hazardous materials facilities as far as possible from siteboundaries and people living in the local neighborhood; •The need to prevent confinement where release of flammable substances mayoccur; •The need to provide access for emergency services; •The need to provide emergency escape routes for on-site personnel; •The need to provide acceptable working conditions for operators.

4. 5. Equipment selection Syrup Batch tank – Stainless steel tanks ranging is size from 500 liters to 20,000 liters. The syrup is prepared (“mixed” or “batched”) and or stored in these tanks. Syrup Transfer Line – A stainless steel line through which the syrup is pumped to the filling area. Proportioner – Equipment which prepares the final soft drink by blending the syrup and treated water at a specific ratio. (i. e. 1 part syrup to 5 parts treated water; 1:5) Carbo-cooler – Equipment which carbonates and cools the soft drink (2-5 ?C) just prior to filling Filler room – The enclosed area of bottling line which contains the filler, capper.

Proportioner, and carbo-cooler. Packaging area – The area of bottling line which consist of all equipment other than that which is contained in the filler room. Bottle Warmer (Can warmer) – Equipment on a bottling line containing sets of warm water sprays. The individual containers (bottles or cans) pass through the warmer after filling for the purpose of bringing them to room temperature. Bottle washer – (“soaker”) – A large machine located just prior o the filler on a bottling line containing a hot alkaline (caustic) solution.

Returnable bottles pass through, soaking in this solution for the purpose of being thoroughly cleaned. Prior to their exit from the bottle washer the bottles are completely rinsed with water to remove any residual caustic. 4. 6. Materials handling Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and bites to the beverage and also acts as a mild preservative. Carbon dioxide is an uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively inexpensive and easy to liquefy. The second main ingredient is sugar, which makes up 7-12% of a soft drink.

Used in either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the “mouth-feel,” an important component for consumer enjoyment of a soft drink. Sugar also balances flavors and acids. Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes were introduced more successfully, notably aspartame, or Nutra-Sweet, which was widely used throughout the 1980s and 1990s for diet soft drinks.

Because some high-intensity sweeteners do not provide the desired mouth-feel and aftertaste of sugar, they often are combined with sugar and other sweeteners and flavors to improve the beverage. The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness, and acidity (pH). Acids add sharpness to the background taste and enhance the thirst-quenching experience by stimulating saliva flow. The most common acid in soft drinks is citric acid, which has a lemony flavor. Acids also reduce pH levels, mildly preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavorings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance “eye appeal” by serving as clouding agents. Emulsions are mixtures of liquids that are generally incompatible. They consist of water-based elements, such as gums, pectins, and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents.

Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, maintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives in response to increasing health concerns of the public. Impurities in the water are removed through a process of coagulation, filtration, and chlorination. Coagulation involves mixing flock into the water to absorb suspended particles.

The water is then poured through a sand filter to remove fine particles of Roc. To sterilize the water, small amounts of chlorine are added to the water and filtered out. 4. 7. Example of flow process, operation chart [pic] The major raw materials required for production of carbonated beverage are sugar, concentrates, carbon dioxide and water. Sugar is delivered either in hopper cars with pneumatic discharge or in bags. For reasons of micro-biological stabilization, the sugar syrup is produced in a hot dissolving process. The sugar is admixed by means of conveying elevators.

In case the sugar is dirty or slightly brown, the application of active carbon is indispensable. For heating purposes and for maintaining a constant dissolving temperature of 85oC, the sugar dissolving tanks have either a heating jacket or are equipped with an interior heating spiral. Exact weighing is essential in this process. It is done by a pressure gauge with a large-scale reading instrument. The entire dissolving process takes about one hour. After that the mixture is filtered, cooled by the plate cooler, and from there the product flows directly into the mixing and storing vessels.

The raw materials and essences are stored in a cool-room at approx. 4oC. They are either pumped into the concentrate preparing vessel by a barrel pump or they are manually added. Citric acid is dissolved in a separate vessel. In order to obtain homogeneous final syrup, the mixture should be stirred for another15 minutes in the mixing vessel. During this time the measuring of Brix content should be done that correction can be made, if necessary. Then the syrup is transported to the pre-mixer by means of a pump. There the beverage is de-aerated, dosed, cooled and carbonated.

In a vacuum tank the treated water is de-aerated and cooled down in a multiple stage plate cooler to approximately 8oC in a first step, and then conveyed to the jet apparatus, where, according to the Venturi-principle, syrup and water are mixed. In the carbonating department Carbon dioxide is added to the mixed drink by means of a jetting apparatus, and thereafter the product is conveyed to the storage tank. From this tank a discharge is made out for further cooling in the second stage of the plate cooler at approximately 3oC- 4oC. Without mechanical help the product is conveyed to the filling machine.

The filling and sealing unit works according to the single-chamber counter-pressure principle and guarantees a quality-preserving bottling of drinks with highest microbiological security. 4. 8. Schedule of realization of the project I hope that the plant will be built in 2012, and producing will be started in 2013, so the first profit I will get in the end of 2013 and beginning of the 2014. During the 2013 we will try to produce 15 tastes of the “BUBBLES”, and we will see which of them successful, and which of them we need to replace. 4. 9. Packing.

The main purpose of soft drinks packaging is to protect the product, maintain the convenience of use for the consumer and to reduce waste. All soft drinks packaging can be recycled and/or re-used to make other useful products. For example: • aluminium cans are recycled and used with raw material to produce new batches of cans; • plastic bottles can be used to make fleece textile products, fibre filling and street furniture; • glass bottles can be reused or recycled to use in the production of new glass; and • paper and board is recycled to produce tissue, paper bags, chip board, briefcases and office furniture.

The reduction of packaging waste has always been a primary concern of the soft drinks industry. Therefore, the industry has consistently been at the forefront of packaging innovations and is constantly looking at ways to reduce the amount of raw materials used in various types of packaging. Types of packaging The main forms of packaging used by the soft drinks industry are: • glass bottles • plastic including PET (Polyethylene terephthalate), PVC (Polyvinyl chloride), HDPE (High density polyethylene), cups (made from polystyrene and polyethylene), pouches (low density polyethylene) • cans including aluminium and steel.

• paper such as cartons When manufacturers are considering packaging for a soft drink they need to consider the functions of packaging to ensure that the products reach the consumer in the best possible condition. The functions of packaging are to contain, protect, identify and sell the product while keeping in mind the impact upon the environment and the costs involved. Certain packaging is more suitable for certain types of product than others when you consider the above criteria.

In my company we will use all types of packaging to encourage consumers. So everyone can chose the type of bottle he or she likes, from o,2 to 2,5 liters, that are more comfortable for them. 5. Personnel 1. Highest level of managers, education, and experience; 1) Executive Vice President Received an industrial engineering degree from Los Andes University in 1978 and graduated from the Stanford University Executive Program in 1992.

He also taught marketing, operational research, and advertising during his career with Coca-Cola de Colombia and has served as a director of several public bottling companies during his career with the Company. 2) Executive Vice President Prior to joining the Company, worked for S. C. Johnson Wax in marketing and sales and for Banco Santander in corporate finance and investor relations, has a degree in business administration and law from ICADE University in Madrid. 3) Senior Vice President, Global Business and Technology.

Services Prior to joining the Company, served as Executive Vice President, Finance and Operations, Turner Entertainment Group; Executive Vice President, Finance and Administration, Turner Sales and Distribution Group; and Vice President and Group Controller, Turner Sales and Distribution Group. Before joining Turner Broadcasting, Inc. , He was with Price Waterhouse in Audit and Accounting Services, has a Bachelor’s of Science degree in accounting from the University of Alabama.

He also serves as a board member of the PATH Foundation and Atlanta Downtown Improvement District. 4) Vice President and Chief Scientific and Regulatory Officer Prior to her appointment at The Coca-Cola Company, She was Executive Vice President and Chief Science Officer for the National Food Processors Association (NFPA) where she was responsible for the overall direction of NFPA’s three laboratory centers; scientific, regulatory and international policy (including NFPA-Asia in Bangkok, Thailand); the Office of Food Safety Programs; and NFPA’s Research Foundation.

She served as NFPA’s scientific spokesperson on nutrition and health, food safety, biotechnology and food protection. She previously held leadership positions with the Distilled Spirits Council of the United States, the Chocolate Manufacturers Association, the American Cocoa Research Institute and the National Confectioners Association. She received her B. A. from Wilson College in history and biology, her M. S. in nutrition and food science from Drexel University and her Ph.

D. in food microbiology and food safety from the University of Wisconsin. She has authored/co-authored numerous scientific publications and has presented at many national and international scientific and regulatory meetings. 5) Senior Vice President and Chief People Officer She has served as Advisor to the Board, Ronald McDonald House Charities, board member for Habitat for Humanity, ongoing Coca-Cola mentor and a past mentor in the Georgia Executive Women’s Leadership program.

Ceree currently serves on the Board of Trustees, Oglethorpe University in Atlanta, and is a member of HR50, a group of the most senior Human Resources leaders from around the globe. She has a bachelor of arts degree in biology from the University of Tennessee. 2. Workers 5. President an

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated…

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual consumption of more than 34 billion gallons. Soft drinks rank as America’s favorite beverage segment, representing 25% of the total beverage market. In the early 1990s per capita consumption of soft drinks in the U. S. was 49 gallons, 15 gallons more than the next most popular beverage, water. The roots of soft drinks extend to ancient times.

Two thousand years ago Greeks and Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a practice that continues to the present. In the late 1700s Europeans and Americans began drinking the sparkling mineral water for its reputed therapeutic benefits. The first imitation mineral water in the U. S. was patented in 1809. It was called “soda water” and consisted of water and sodium bicarbonate mixed with acid to add effervescence. Pharmacists in America and Europe experimented with myriad ingredients in the hope of finding new remedies for various ailments.

Already the flavored soda waters were hailed as brain tonics for curing headaches, hangovers, and nervous afflictions. Pharmacies equipped with “soda fountains” featuring the medicinal soda water soon developed into regular meeting places for local populations. Flavored soda water gained popularity not only for medicinal benefits but for the refreshing taste as well. The market expanded in the 1830s when soda water was first sold in glass bottles. As soft drinks are so popular over the world in our days and I like them too much, I have decided to know more about them.

So the aims of my work is 1. To get acquainted with soft drinks businesses 2. To get acquainted with the newest technology in soft drinks structure 3. To get acquainted with the equipment and technique which are used in making soft drinks 4. To get acquainted of the company`s organization 2. Products 2. 1. Description of your intentions, future products. The “BUBBLES” will be a non alcohol soft drink with vitamins. I hope that it will be sold all over the world in restaurants, petrol stations, markets, stores, vending machines and so on.

It will be sold and in plastic, glass bottles, cans including aluminum and steel and also in paper such as cartons. All that packing will be recycling to not damage environment. [pic] [pic] [pic] 2. 2. Motivation for the production Why I have chosen soft drink? Because all people like it. It is a big market of soft drinks, with large competition. But I have decided to make a new top product with vitamins, because such drinks like coca cola and Pepsi a very unhealthy. My company will start to grow in Lithuania. Were aren`t so big competitions. And it is good place because it will be easy to find workers for not a huge salary.

And in Lithuania is very comfortable place to transports my soft drink “BUBBLES”, because you can transport them not only by land (by Lorries) but also by sea. The analyses show that soft drinks can replace coffee, alcoholic drinks and it is very important for our environment, because people will be healthier. And in Lithuania that fact very profitable, because after 22:00 you can`t by alcohols drinks, so people will buy soft drink. 3. Markets 3. 1. Overview of markets and tendency of expansion The “Soft Drinks & Juices Market in Europe” covers 16 countries and puts direct human consumption at Euros 72.

9 billion in 2009, or 6. 6% of the all food and drink market of Euros 1111 billion. This Soft Drinks & Juices market is forecast to decline at an average annual real -1. 16% during the 2009 – 2012 period, compared to 0. 51% for the total food and drink market. More than 784 companies are involved in Soft Drinks & Juices products across Europe, with the Top-10 companies supplying 49. 6% of the market. Current major players are Coca-Cola with a market share of 21. 5%, followed by PepsiCo (7. 9%) and Nestle (4. 8%). FFT’s online database tracks and incorporates M&A activity on a continuous basis.

Seven product markets are covered – Mineral water, Soft drinks, Fruit juices, Fruit drinks, Squashes & concentrates, Health & sports drinks, Ice tea – in the 16 countries covered by the survey. Thus the study covers 112 country and product markets, with Coca-Cola have a leading presence, being present in 57 markets. Country Markets [pic] The largest country market, Germany, makes up 29% of the total 2009 West European soft drinks market, worth Euros 72. 9 billion (for 20% of the total population), the 3 largest West European country markets, including the U. K.

And Italy, make up 61% of the total West European soft drinks market (for 50% of the total population) and the 5 largest country markets, including France and Spain, make up 76% of the West European market (for 77% of the total population). The best 3 countries market performances based on annual real % growth (2004-2009) are Denmark (+3%), Germany (+2%) and Sweden (+1. 7). Product Markets [pic] The largest product market (among the 7 products currently selected) is Soft Drinks, which makes up 45% of the total 2009 West European soft drinks market worth Euros 72.

9 billion, or Euros 32. 6 billion. The next largest product market, Mineral Water, makes up 21% of the total market, or Euros 15. 3 billion. The three largest West European product markets, adding Fruit Juices to Soft Drinks and Mineral Water, make up 83% of the total market, or Euros 60. 6 billion. The best 3 product market performances based on annual real % growth (2004-2009) are Health & sports drinks with 4. 1%, followed by Ice tea with and Soft drinks with 1. 9% and 0. 8% respectively. Foodservice `The total foodservice market is worth 20. 4% or Euros 14.

9 billion, and the retail market worth 79. 6% with a Euros 58. 1 billion. Own Label In the total market by value, distributors’ own label products now make up 17%, with manufacturers’ branded products making up 83% of the total market. Retail distributors’ own label products continue to make inroads into manufacturers’ branded products in many food and drink markets. Artisanal products (own-produced for own sale) and unbranded products (important in say fresh fruit and vegetable markets) make up the rest of distribution. 3. 2. Description of customers.

The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers. Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power.

Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers.

The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel “paid sampling. ” This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets.

As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high.

The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers’ profits were relatively high, at $0. 40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets.

Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power. 3. 3. Description of competitors My Company competes in the nonalcoholic beverages segment of the commercial beverages industry. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of numerous companies.

These include companies that, like our Company, compete in multiple geographic areas, as well as firms that are primarily regional or local in operation. Competitive products include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages.

These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form. In many of the countries in which we do business, including the United States, PepsiCo, Inc. , is one of our primary competitors. Other significant competitors include, but are not limited to, Nestle, Dr Pepper Snapple Group, Inc. , Groupe Danone, Kraft Foods Inc. and Unilever. In certain markets, our competition includes beer companies. We also compete against numerous regional and local companies and, in some markets, against retailers that have developed their own store or private label beverage brands.

Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection. My competitive strengths include leading brands with a high level of consumer acceptance; a worldwide network of bottlers and distributors of Company products; sophisticated marketing capabilities; and a talented group of dedicated associates.

My competitive challenges include strong competition in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage supplier Product Markets. 4. Production 4. 1. Technology of production Most soft drinks are made at local bottling and canning companies. Brand name franchise companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures.

Clarifying the water * 1 The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters.

During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Filtering, sterilizing, and dechlorinating the water * 2 The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. * 3 Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water’s taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.

The chlorinated water remains in the storage tank for about two hours until the reaction is complete. [pic] • 4 Next, an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients • 5 The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration.

The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. • 6 The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage • 7 Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage.

The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine.

Filling and packaging • 8 The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs. • 9 Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them.

Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally pre-printed with product information before the filling stage. • 10 Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. [pic] 4. 2. Production planning, Quantities In my companies plans to become in near future in the tops selling’s of the soft drinks in Lithuania, later in Europe and the all over the world.

Because of that in the first year we will produced a 15 types of “BUBBLES” for example diet, energetic, cola, orange, mineral water and so on. 4. 3. Locating and building the new plant The “BUBBLES” company took the decision to build the first “BUBBLES” plant near the Kedaniai city. It is like in the Lithuanian centre. It has first-class connections to the motorway, the airport and the railway system. [pic] Approximately 2,000 new jobs will be created. Production will start in the year 2013. Following a ramp-up phase, a capacity of 650 units a day will be reached.

The most important criteria to be considered were as follows: 1. The economic viability and flexibility. 2. The features and the location of the future plant area. 3. The availability of qualified manpower. 4. The use of existing structures in terms of plants, suppliers and logistics. 5. The infrastructure for transport, supplies and waste management. 6. The connection to the sales and distribution network. 7. The process of implementation. Also a new recycling factory will be needed; it is easier to recycle bottles, plastic, steel, paper than produce new packaging.

But also there will be sector of production packaging. 4. 4. Inside plant-layout procedure Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. So I have some criteria’s, principals that I’m regarding, and about what I will talk with architecture. 1. Integration:

Integration of people, money, materials and machines and support services in order to get the optimum output of resources. 2. Cubic space utilization: Utilization of both horizontal and vertical spaces and height is very important to use the space as much as possible. 3. Minimum distance: Minimum travel of people and material should be implemented means; the total distance travel by the people and material should be minimized as much as possible. Further straight line movements should be promoted. 3. Floor: Arranging the floor to move the material/finished products in forward direction towards the final stage.

4. Maximizing coordination: Entry into and disposal from any department should be in such manner that it is most convenient to the issuing or receiving departments. The layout should be consider as a whole. 5. Minimum flexibility: The layout should be able to modify when necessary. 6. Maximum accessibility: All servicing and maintenance points should be readily accessible. For example;equipment should not be placed against a wall because necessary servicing or maintenance cannot be carried out easily. Further; equipments or other necessary unitskeep in front of a fuse box will impede the work of the electrician.

7. Safety security: Due consideration to industrial safety methods is necessary. Care must be taken notonly of the persons operating the equipment, but also of the passes-by, who may berequired to go behind equipment as the back of which may be unsafe. 8. Minimum handling: Reduce the material handling to the minimum. Material being worked on should be keptat working height and never have to be placed on the floor if it is to be lifted later. The following principles also can be taken in to account when planning for a good plantlayout; •The geographical limitations of the site;

•Interaction with existing or planned facilities on site such as existing roadways,drainage and utilities routings; •Interaction with other plants on site; •The need for plant operability and maintainability; •The need to locate hazardous materials facilities as far as possible from siteboundaries and people living in the local neighborhood; •The need to prevent confinement where release of flammable substances mayoccur; •The need to provide access for emergency services; •The need to provide emergency escape routes for on-site personnel; •The need to provide acceptable working conditions for operators.

4. 5. Equipment selection Syrup Batch tank – Stainless steel tanks ranging is size from 500 liters to 20,000 liters. The syrup is prepared (“mixed” or “batched”) and or stored in these tanks. Syrup Transfer Line – A stainless steel line through which the syrup is pumped to the filling area. Proportioner – Equipment which prepares the final soft drink by blending the syrup and treated water at a specific ratio. (i. e. 1 part syrup to 5 parts treated water; 1:5) Carbo-cooler – Equipment which carbonates and cools the soft drink (2-5 ?C) just prior to filling Filler room – The enclosed area of bottling line which contains the filler, capper.

Proportioner, and carbo-cooler. Packaging area – The area of bottling line which consist of all equipment other than that which is contained in the filler room. Bottle Warmer (Can warmer) – Equipment on a bottling line containing sets of warm water sprays. The individual containers (bottles or cans) pass through the warmer after filling for the purpose of bringing them to room temperature. Bottle washer – (“soaker”) – A large machine located just prior o the filler on a bottling line containing a hot alkaline (caustic) solution.

Returnable bottles pass through, soaking in this solution for the purpose of being thoroughly cleaned. Prior to their exit from the bottle washer the bottles are completely rinsed with water to remove any residual caustic. 4. 6. Materials handling Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and bites to the beverage and also acts as a mild preservative. Carbon dioxide is an uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively inexpensive and easy to liquefy. The second main ingredient is sugar, which makes up 7-12% of a soft drink.

Used in either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the “mouth-feel,” an important component for consumer enjoyment of a soft drink. Sugar also balances flavors and acids. Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes were introduced more successfully, notably aspartame, or Nutra-Sweet, which was widely used throughout the 1980s and 1990s for diet soft drinks.

Because some high-intensity sweeteners do not provide the desired mouth-feel and aftertaste of sugar, they often are combined with sugar and other sweeteners and flavors to improve the beverage. The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness, and acidity (pH). Acids add sharpness to the background taste and enhance the thirst-quenching experience by stimulating saliva flow. The most common acid in soft drinks is citric acid, which has a lemony flavor. Acids also reduce pH levels, mildly preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavorings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance “eye appeal” by serving as clouding agents. Emulsions are mixtures of liquids that are generally incompatible. They consist of water-based elements, such as gums, pectins, and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents.

Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, maintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives in response to increasing health concerns of the public. Impurities in the water are removed through a process of coagulation, filtration, and chlorination. Coagulation involves mixing flock into the water to absorb suspended particles.

The water is then poured through a sand filter to remove fine particles of Roc. To sterilize the water, small amounts of chlorine are added to the water and filtered out. 4. 7. Example of flow process, operation chart [pic] The major raw materials required for production of carbonated beverage are sugar, concentrates, carbon dioxide and water. Sugar is delivered either in hopper cars with pneumatic discharge or in bags. For reasons of micro-biological stabilization, the sugar syrup is produced in a hot dissolving process. The sugar is admixed by means of conveying elevators.

In case the sugar is dirty or slightly brown, the application of active carbon is indispensable. For heating purposes and for maintaining a constant dissolving temperature of 85oC, the sugar dissolving tanks have either a heating jacket or are equipped with an interior heating spiral. Exact weighing is essential in this process. It is done by a pressure gauge with a large-scale reading instrument. The entire dissolving process takes about one hour. After that the mixture is filtered, cooled by the plate cooler, and from there the product flows directly into the mixing and storing vessels.

The raw materials and essences are stored in a cool-room at approx. 4oC. They are either pumped into the concentrate preparing vessel by a barrel pump or they are manually added. Citric acid is dissolved in a separate vessel. In order to obtain homogeneous final syrup, the mixture should be stirred for another15 minutes in the mixing vessel. During this time the measuring of Brix content should be done that correction can be made, if necessary. Then the syrup is transported to the pre-mixer by means of a pump. There the beverage is de-aerated, dosed, cooled and carbonated.

In a vacuum tank the treated water is de-aerated and cooled down in a multiple stage plate cooler to approximately 8oC in a first step, and then conveyed to the jet apparatus, where, according to the Venturi-principle, syrup and water are mixed. In the carbonating department Carbon dioxide is added to the mixed drink by means of a jetting apparatus, and thereafter the product is conveyed to the storage tank. From this tank a discharge is made out for further cooling in the second stage of the plate cooler at approximately 3oC- 4oC. Without mechanical help the product is conveyed to the filling machine.

The filling and sealing unit works according to the single-chamber counter-pressure principle and guarantees a quality-preserving bottling of drinks with highest microbiological security. 4. 8. Schedule of realization of the project I hope that the plant will be built in 2012, and producing will be started in 2013, so the first profit I will get in the end of 2013 and beginning of the 2014. During the 2013 we will try to produce 15 tastes of the “BUBBLES”, and we will see which of them successful, and which of them we need to replace. 4. 9. Packing.

The main purpose of soft drinks packaging is to protect the product, maintain the convenience of use for the consumer and to reduce waste. All soft drinks packaging can be recycled and/or re-used to make other useful products. For example: • aluminium cans are recycled and used with raw material to produce new batches of cans; • plastic bottles can be used to make fleece textile products, fibre filling and street furniture; • glass bottles can be reused or recycled to use in the production of new glass; and • paper and board is recycled to produce tissue, paper bags, chip board, briefcases and office furniture.

The reduction of packaging waste has always been a primary concern of the soft drinks industry. Therefore, the industry has consistently been at the forefront of packaging innovations and is constantly looking at ways to reduce the amount of raw materials used in various types of packaging. Types of packaging The main forms of packaging used by the soft drinks industry are: • glass bottles • plastic including PET (Polyethylene terephthalate), PVC (Polyvinyl chloride), HDPE (High density polyethylene), cups (made from polystyrene and polyethylene), pouches (low density polyethylene) • cans including aluminium and steel.

• paper such as cartons When manufacturers are considering packaging for a soft drink they need to consider the functions of packaging to ensure that the products reach the consumer in the best possible condition. The functions of packaging are to contain, protect, identify and sell the product while keeping in mind the impact upon the environment and the costs involved. Certain packaging is more suitable for certain types of product than others when you consider the above criteria.

In my company we will use all types of packaging to encourage consumers. So everyone can chose the type of bottle he or she likes, from o,2 to 2,5 liters, that are more comfortable for them. 5. Personnel 1. Highest level of managers, education, and experience; 1) Executive Vice President Received an industrial engineering degree from Los Andes University in 1978 and graduated from the Stanford University Executive Program in 1992.

He also taught marketing, operational research, and advertising during his career with Coca-Cola de Colombia and has served as a director of several public bottling companies during his career with the Company. 2) Executive Vice President Prior to joining the Company, worked for S. C. Johnson Wax in marketing and sales and for Banco Santander in corporate finance and investor relations, has a degree in business administration and law from ICADE University in Madrid. 3) Senior Vice President, Global Business and Technology.

Services Prior to joining the Company, served as Executive Vice President, Finance and Operations, Turner Entertainment Group; Executive Vice President, Finance and Administration, Turner Sales and Distribution Group; and Vice President and Group Controller, Turner Sales and Distribution Group. Before joining Turner Broadcasting, Inc. , He was with Price Waterhouse in Audit and Accounting Services, has a Bachelor’s of Science degree in accounting from the University of Alabama.

He also serves as a board member of the PATH Foundation and Atlanta Downtown Improvement District. 4) Vice President and Chief Scientific and Regulatory Officer Prior to her appointment at The Coca-Cola Company, She was Executive Vice President and Chief Science Officer for the National Food Processors Association (NFPA) where she was responsible for the overall direction of NFPA’s three laboratory centers; scientific, regulatory and international policy (including NFPA-Asia in Bangkok, Thailand); the Office of Food Safety Programs; and NFPA’s Research Foundation.

She served as NFPA’s scientific spokesperson on nutrition and health, food safety, biotechnology and food protection. She previously held leadership positions with the Distilled Spirits Council of the United States, the Chocolate Manufacturers Association, the American Cocoa Research Institute and the National Confectioners Association. She received her B. A. from Wilson College in history and biology, her M. S. in nutrition and food science from Drexel University and her Ph.

D. in food microbiology and food safety from the University of Wisconsin. She has authored/co-authored numerous scientific publications and has presented at many national and international scientific and regulatory meetings. 5) Senior Vice President and Chief People Officer She has served as Advisor to the Board, Ronald McDonald House Charities, board member for Habitat for Humanity, ongoing Coca-Cola mentor and a past mentor in the Georgia Executive Women’s Leadership program.

Ceree currently serves on the Board of Trustees, Oglethorpe University in Atlanta, and is a member of HR50, a group of the most senior Human Resources leaders from around the globe. She has a bachelor of arts degree in biology from the University of Tennessee. 2. Workers 5. President an

7BUSS008W Module Handbook Semester 2 January 2019 Module at a Glance Week Lecture Topic Date 1…

7BUSS008W

Module Handbook

Semester 2

January 2019

Module    at a Glance

Week

Lecture                             Topic

Date

1

Introduction                              to the Module.

Jan                           21 st ,                                2019

2

Emerging                          Issues & Trend Analysis :                               Global & Regional Analysis.

Jan                           28 th ,                                2019

3

Competitive                              landscape Analysis                            Industry                            KSF’s.

Feb                           4 th ,                          2019

4

Internal                              Organisation Scrutiny & Success Factors: RBV                              & Value Chain.

Feb                           11 th ,                                2019

5

Assessing                          Resources & Capabilities: VIRO                              Analysis KPI                                 analysis.

Feb                           18 th ,                                2019

6

Corporate                         & Business strategy.

Feb                           25 th ,                                2019

7

Disruptive                         Technology & Blue Ocean Opportunities.

Mar                          4 th ,                          2019

8

Organisation                             Culture, CSR & Brand equity: Stakeholder                           engagement & reputation management.

Mar                          11 th ,                                2019

9

Strategic                           leadership: Psychology                                 & Disruptive entrepreneurship.

Mar                          18 th ,                                2019

10

International                             Strategies: Organic                             Vs Inorganics Growth Strategies.

Mar                          25 th ,                                2019

11

Strategic                           Options & Recommendations.

April                         1 st ,                          2019

12

Reprise                             of Module: Preparation                                 for exam.

April                          8 th ,                          2019

Module    Assessment at a Glance

Assessment

Weighting                                (%)

Date(s)

Practical                            (Group)

30%

Weekly                             Business Simulation (Glo-Bus): From February 7 th to April 11 th

Report                              (Individual)

20%

March                               28 th : before 12.59pm.

Exam (Closed                             Book)

50%

May 2019 (Exact date to be confirmed by WBS Registry)

The Module Aims &         Learning Outcomes

Summary         of Module Content:

This module involves strategic thinking that draws together all aspects of business & management and applies them to the context of the international business environment. The module content links strategic analysis to the critical appraisal of international business scenarios and cases. Students will learn how to develop sustainable business models and solutions in a complex and changing world and to think like business analysts, management consultants & executive decision-makers.

Module            Aims

To develop        the analytical skills to identify strategic issues in organisations         and their external environments on a regional and global scale.

To develop        an understanding of the most important strategic issues confronting       the international manager.

To    synthesise learning from other modules and provide a means of setting their principles and practices in the overall organizational    context; the module thus draws on builds upon theoretical and practical information covered earlier in the course, adding to     knowledge concerning strategies, governance, ethics and the drivers of the international political economy.

Learning          Outcomes

On successful completion of the module, students will be able to:

Critically    assess the external drivers and emerging issues that influence         industry and firm-based decision-making

Evaluate    the strategic situations of firms including their internal value         chain ecosystems, financial resources, organisational structure and         cultural typologies.

Use   relevant strategic concepts and frameworks to analyse internal &         external strategic issues that are important to manager in         internationalising and globalising firms.

Provide     appropriate strategic options as possible solutions for smaller         internationalising firms as well as established international and    global companies.

Critically    appraise and debate major contemporary strategic issues that will be         potentially disruptive in industries of the future including topics   such as 3D Printing, Internet of Everything, Digitalisation &      alternative energy

Indicative                 Syllabus Content

The indicative syllabus areas that you will be covering are:

Contemporary   emerging issues in the international & global business         environment

Strategic   frameworks for environmental scanning

Joint ventures, strategic alliances and networks and other recent developments in international and global business strategy

Strategic   concepts, theories and framework for critically analysing         organisations and their ecosystems

Critical      appraisal of resources and capabilities and international competitor         analysis

Understanding and critically assessing organisational structure, culture and         architecture in globalising industries

International     knowledge management and strategy

CSR and    strategic stakeholder engagement in the international context

Strategic   options frameworks and evaluation

Teaching          and Learning Methods

Activity                             type

Category

Student                             Learning & Teaching Hours

Lecture

Scheduled

12

Seminars

Scheduled

24

Independent                             Study

Independent

156

Assessment on the Module

Assessment Rationale

There are three assessments:

A group project involves examining the strategic choices facing an               internationally active organisation and its executive board in a             business simulation that takes place over a number of years.

The second assessment is an individual critical essay of 2000 words              on aspects of strategic theory and practice.

The end-of-module examination will involve a 3 hour closed-book               exam based on a pre-seen case study

Assessment Criteria

Students will be assessed on:

Their ability to relate the underpinning current theory and practice       in strategic management to specific real life contexts

Their capacity to synthesise different theoretical approaches and identify challenges facing both international and global business     managers.

Their capacity to critically evaluate traditional and contemporary strategic management theory and its relevance and usefulness to      management practice in complex and often disruptive international environments.

Their ability to develop clearly and concise strategic options with evidence based argument and to critically argue what are the best     solutions going forward in applied various international business         cases and scenarios.

Assessment Methods and                Weightings Assessment                                           Name Weighting Pass                                              Mark Retake                                             mark Assessment                                             Type Group                                              Practical                                                                                                                            30                                                                                                                             50                                                                                                                             40                                                                                                                             Glo-Bus                                             Business Simulation.                                                                                                                                                                                                                                                Report                                                                                                                              20                                                                                                                             50                                                                                                                              40                                                                                                                             Individual                                          Critical Report                                                                                                                                                                                            Examination-                                             Closed Book                                                                                                                              50                                                                                                                             50                                                                                                                             40                                                                                                                              A                                              3 Hour Closed Book Exam

What happens if you                submit your coursework after the deadline?

If you hand your coursework in after the official deadline, you will be subject to penalties. Please read the following extract from the Course Handbook.

Penalties for late submission of coursework

The University operates a two-tier penalty system for late submission of coursework and in-module assessment. This regulation applies to all students registered for an award irrespective of their level of study.

All University coursework deadlines are scheduled between Monday and Thursday inclusive. Where possible, the submission day will coincide with the day the module classes are normally taught. However, the University does not allow submission deadlines to be set for Fridays.

If you submit your coursework late but within 24 hours of the specified deadline, 10% of the overall marks available for that element of assessment (i.e. 10%) will be deducted, as a penalty for late submission, except for work which obtains a mark in the range 50 – 59%, in which case the mark will be capped at the pass mark (50%).

If you submit your coursework more than 24 hours after the specified deadline, you will be given a mark of zero for the work in question.

Late work and any claim of Mitigating Circumstances relating to coursework must be submitted at the earliest opportunity to ensure as far as possible that the work can still be marked.

You will normally have the right to submit coursework 5 working days after the original deadline. Once the work of other students has been marked and returned, late submissions of that same piece of work cannot be assessed

Reading & Engaging        with the Module

Required and           recommended reading

As master students you will be expected to read beyond the set text.  I will refer to recommended reading in lectures and seminars. You will also find it worthwhile to stay a

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated…

1. Introduction Soft drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual consumption of more than 34 billion gallons. Soft drinks rank as America’s favorite beverage segment, representing 25% of the total beverage market. In the early 1990s per capita consumption of soft drinks in the U. S. was 49 gallons, 15 gallons more than the next most popular beverage, water. The roots of soft drinks extend to ancient times.

Two thousand years ago Greeks and Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a practice that continues to the present. In the late 1700s Europeans and Americans began drinking the sparkling mineral water for its reputed therapeutic benefits. The first imitation mineral water in the U. S. was patented in 1809. It was called “soda water” and consisted of water and sodium bicarbonate mixed with acid to add effervescence. Pharmacists in America and Europe experimented with myriad ingredients in the hope of finding new remedies for various ailments.

Already the flavored soda waters were hailed as brain tonics for curing headaches, hangovers, and nervous afflictions. Pharmacies equipped with “soda fountains” featuring the medicinal soda water soon developed into regular meeting places for local populations. Flavored soda water gained popularity not only for medicinal benefits but for the refreshing taste as well. The market expanded in the 1830s when soda water was first sold in glass bottles. As soft drinks are so popular over the world in our days and I like them too much, I have decided to know more about them.

So the aims of my work is 1. To get acquainted with soft drinks businesses 2. To get acquainted with the newest technology in soft drinks structure 3. To get acquainted with the equipment and technique which are used in making soft drinks 4. To get acquainted of the company`s organization 2. Products 2. 1. Description of your intentions, future products. The “BUBBLES” will be a non alcohol soft drink with vitamins. I hope that it will be sold all over the world in restaurants, petrol stations, markets, stores, vending machines and so on.

It will be sold and in plastic, glass bottles, cans including aluminum and steel and also in paper such as cartons. All that packing will be recycling to not damage environment. [pic] [pic] [pic] 2. 2. Motivation for the production Why I have chosen soft drink? Because all people like it. It is a big market of soft drinks, with large competition. But I have decided to make a new top product with vitamins, because such drinks like coca cola and Pepsi a very unhealthy. My company will start to grow in Lithuania. Were aren`t so big competitions. And it is good place because it will be easy to find workers for not a huge salary.

And in Lithuania is very comfortable place to transports my soft drink “BUBBLES”, because you can transport them not only by land (by Lorries) but also by sea. The analyses show that soft drinks can replace coffee, alcoholic drinks and it is very important for our environment, because people will be healthier. And in Lithuania that fact very profitable, because after 22:00 you can`t by alcohols drinks, so people will buy soft drink. 3. Markets 3. 1. Overview of markets and tendency of expansion The “Soft Drinks & Juices Market in Europe” covers 16 countries and puts direct human consumption at Euros 72.

9 billion in 2009, or 6. 6% of the all food and drink market of Euros 1111 billion. This Soft Drinks & Juices market is forecast to decline at an average annual real -1. 16% during the 2009 – 2012 period, compared to 0. 51% for the total food and drink market. More than 784 companies are involved in Soft Drinks & Juices products across Europe, with the Top-10 companies supplying 49. 6% of the market. Current major players are Coca-Cola with a market share of 21. 5%, followed by PepsiCo (7. 9%) and Nestle (4. 8%). FFT’s online database tracks and incorporates M&A activity on a continuous basis.

Seven product markets are covered – Mineral water, Soft drinks, Fruit juices, Fruit drinks, Squashes & concentrates, Health & sports drinks, Ice tea – in the 16 countries covered by the survey. Thus the study covers 112 country and product markets, with Coca-Cola have a leading presence, being present in 57 markets. Country Markets [pic] The largest country market, Germany, makes up 29% of the total 2009 West European soft drinks market, worth Euros 72. 9 billion (for 20% of the total population), the 3 largest West European country markets, including the U. K.

And Italy, make up 61% of the total West European soft drinks market (for 50% of the total population) and the 5 largest country markets, including France and Spain, make up 76% of the West European market (for 77% of the total population). The best 3 countries market performances based on annual real % growth (2004-2009) are Denmark (+3%), Germany (+2%) and Sweden (+1. 7). Product Markets [pic] The largest product market (among the 7 products currently selected) is Soft Drinks, which makes up 45% of the total 2009 West European soft drinks market worth Euros 72.

9 billion, or Euros 32. 6 billion. The next largest product market, Mineral Water, makes up 21% of the total market, or Euros 15. 3 billion. The three largest West European product markets, adding Fruit Juices to Soft Drinks and Mineral Water, make up 83% of the total market, or Euros 60. 6 billion. The best 3 product market performances based on annual real % growth (2004-2009) are Health & sports drinks with 4. 1%, followed by Ice tea with and Soft drinks with 1. 9% and 0. 8% respectively. Foodservice `The total foodservice market is worth 20. 4% or Euros 14.

9 billion, and the retail market worth 79. 6% with a Euros 58. 1 billion. Own Label In the total market by value, distributors’ own label products now make up 17%, with manufacturers’ branded products making up 83% of the total market. Retail distributors’ own label products continue to make inroads into manufacturers’ branded products in many food and drink markets. Artisanal products (own-produced for own sale) and unbranded products (important in say fresh fruit and vegetable markets) make up the rest of distribution. 3. 2. Description of customers.

The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers. Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power.

Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers.

The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel “paid sampling. ” This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets.

As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high.

The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers’ profits were relatively high, at $0. 40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets.

Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power. 3. 3. Description of competitors My Company competes in the nonalcoholic beverages segment of the commercial beverages industry. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of numerous companies.

These include companies that, like our Company, compete in multiple geographic areas, as well as firms that are primarily regional or local in operation. Competitive products include numerous nonalcoholic sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other nonalcoholic beverages.

These competitive beverages are sold to consumers in both ready-to-drink and other than ready-to-drink form. In many of the countries in which we do business, including the United States, PepsiCo, Inc. , is one of our primary competitors. Other significant competitors include, but are not limited to, Nestle, Dr Pepper Snapple Group, Inc. , Groupe Danone, Kraft Foods Inc. and Unilever. In certain markets, our competition includes beer companies. We also compete against numerous regional and local companies and, in some markets, against retailers that have developed their own store or private label beverage brands.

Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in production techniques, the introduction of new packaging, new vending and dispensing equipment, and brand and trademark development and protection. My competitive strengths include leading brands with a high level of consumer acceptance; a worldwide network of bottlers and distributors of Company products; sophisticated marketing capabilities; and a talented group of dedicated associates.

My competitive challenges include strong competition in all geographic regions and, in many countries, a concentrated retail sector with powerful buyers able to freely choose among Company products, products of competitive beverage supplier Product Markets. 4. Production 4. 1. Technology of production Most soft drinks are made at local bottling and canning companies. Brand name franchise companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret formulas and their required manufacturing procedures.

Clarifying the water * 1 The quality of water is crucial to the success of a soft drink. Impurities, such as suspended particles, organic matter, and bacteria, may degrade taste and color. They are generally removed through the traditional process of a series of coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc absorbs suspended particles, making them larger and more easily trapped by filters.

During the clarification process, alkalinity must be adjusted with an addition of lime to reach the desired pH level. Filtering, sterilizing, and dechlorinating the water * 2 The clarified water is poured through a sand filter to remove fine particles of floc. The water passes through a layer of sand and courser beds of gravel to capture the particles. * 3 Sterilization is necessary to destroy bacteria and organic compounds that might spoil the water’s taste or color. The water is pumped into a storage tank and is dosed with a small amount of free chlorine.

The chlorinated water remains in the storage tank for about two hours until the reaction is complete. [pic] • 4 Next, an activated carbon filter dechlorinates the water and removes residual organic matter, much like the sand filter. A vacuum pump de-aerates the water before it passes into a dosing station. Mixing the ingredients • 5 The dissolved sugar and flavor concentrates are pumped into the dosing station in a predetermined sequence according to their compatibility. The ingredients are conveyed into batch tanks where they are carefully mixed; too much agitation can cause unwanted aeration.

The syrup may be sterilized while in the tanks, using ultraviolet radiation or flash pasteurization, which involves quickly heating and cooling the mixture. Fruit based syrups generally must be pasteurized. • 6 The water and syrup are carefully combined by sophisticated machines, called proportioners, which regulate the flow rates and ratios of the liquids. The vessels are pressurized with carbon dioxide to prevent aeration of the mixture. Carbonating the beverage • 7 Carbonation is generally added to the finished product, though it may be mixed into the water at an earlier stage.

The temperature of the liquid must be carefully controlled since carbon dioxide solubility increases as the liquid temperature decreases. Many carbonators are equipped with their own cooling systems. The amount of carbon dioxide pressure used depends on the type of soft drink. For instance, fruit drinks require far less carbonation than mixer drinks, such as tonics, which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks and ultimately to the filler machine.

Filling and packaging • 8 The finished product is transferred into bottles or cans at extremely high flow rates. The containers are immediately sealed with pressure-resistant closures, either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs. • 9 Because soft drinks are generally cooled during the manufacturing process, they must be brought to room temperature before labeling to prevent condensation from ruining the labels. This is usually achieved by spraying the containers with warm water and drying them.

Labels are then affixed to bottles to provide information about the brand, ingredients, shelf life, and safe use of the product. Most labels are made of paper though some are made of a plastic film. Cans are generally pre-printed with product information before the filling stage. • 10 Finally, containers are packed into cartons or trays which are then shipped in larger pallets or crates to distributors. [pic] 4. 2. Production planning, Quantities In my companies plans to become in near future in the tops selling’s of the soft drinks in Lithuania, later in Europe and the all over the world.

Because of that in the first year we will produced a 15 types of “BUBBLES” for example diet, energetic, cola, orange, mineral water and so on. 4. 3. Locating and building the new plant The “BUBBLES” company took the decision to build the first “BUBBLES” plant near the Kedaniai city. It is like in the Lithuanian centre. It has first-class connections to the motorway, the airport and the railway system. [pic] Approximately 2,000 new jobs will be created. Production will start in the year 2013. Following a ramp-up phase, a capacity of 650 units a day will be reached.

The most important criteria to be considered were as follows: 1. The economic viability and flexibility. 2. The features and the location of the future plant area. 3. The availability of qualified manpower. 4. The use of existing structures in terms of plants, suppliers and logistics. 5. The infrastructure for transport, supplies and waste management. 6. The connection to the sales and distribution network. 7. The process of implementation. Also a new recycling factory will be needed; it is easier to recycle bottles, plastic, steel, paper than produce new packaging.

But also there will be sector of production packaging. 4. 4. Inside plant-layout procedure Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. So I have some criteria’s, principals that I’m regarding, and about what I will talk with architecture. 1. Integration:

Integration of people, money, materials and machines and support services in order to get the optimum output of resources. 2. Cubic space utilization: Utilization of both horizontal and vertical spaces and height is very important to use the space as much as possible. 3. Minimum distance: Minimum travel of people and material should be implemented means; the total distance travel by the people and material should be minimized as much as possible. Further straight line movements should be promoted. 3. Floor: Arranging the floor to move the material/finished products in forward direction towards the final stage.

4. Maximizing coordination: Entry into and disposal from any department should be in such manner that it is most convenient to the issuing or receiving departments. The layout should be consider as a whole. 5. Minimum flexibility: The layout should be able to modify when necessary. 6. Maximum accessibility: All servicing and maintenance points should be readily accessible. For example;equipment should not be placed against a wall because necessary servicing or maintenance cannot be carried out easily. Further; equipments or other necessary unitskeep in front of a fuse box will impede the work of the electrician.

7. Safety security: Due consideration to industrial safety methods is necessary. Care must be taken notonly of the persons operating the equipment, but also of the passes-by, who may berequired to go behind equipment as the back of which may be unsafe. 8. Minimum handling: Reduce the material handling to the minimum. Material being worked on should be keptat working height and never have to be placed on the floor if it is to be lifted later. The following principles also can be taken in to account when planning for a good plantlayout; •The geographical limitations of the site;

•Interaction with existing or planned facilities on site such as existing roadways,drainage and utilities routings; •Interaction with other plants on site; •The need for plant operability and maintainability; •The need to locate hazardous materials facilities as far as possible from siteboundaries and people living in the local neighborhood; •The need to prevent confinement where release of flammable substances mayoccur; •The need to provide access for emergency services; •The need to provide emergency escape routes for on-site personnel; •The need to provide acceptable working conditions for operators.

4. 5. Equipment selection Syrup Batch tank – Stainless steel tanks ranging is size from 500 liters to 20,000 liters. The syrup is prepared (“mixed” or “batched”) and or stored in these tanks. Syrup Transfer Line – A stainless steel line through which the syrup is pumped to the filling area. Proportioner – Equipment which prepares the final soft drink by blending the syrup and treated water at a specific ratio. (i. e. 1 part syrup to 5 parts treated water; 1:5) Carbo-cooler – Equipment which carbonates and cools the soft drink (2-5 ?C) just prior to filling Filler room – The enclosed area of bottling line which contains the filler, capper.

Proportioner, and carbo-cooler. Packaging area – The area of bottling line which consist of all equipment other than that which is contained in the filler room. Bottle Warmer (Can warmer) – Equipment on a bottling line containing sets of warm water sprays. The individual containers (bottles or cans) pass through the warmer after filling for the purpose of bringing them to room temperature. Bottle washer – (“soaker”) – A large machine located just prior o the filler on a bottling line containing a hot alkaline (caustic) solution.

Returnable bottles pass through, soaking in this solution for the purpose of being thoroughly cleaned. Prior to their exit from the bottle washer the bottles are completely rinsed with water to remove any residual caustic. 4. 6. Materials handling Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special sparkle and bites to the beverage and also acts as a mild preservative. Carbon dioxide is an uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively inexpensive and easy to liquefy. The second main ingredient is sugar, which makes up 7-12% of a soft drink.

Used in either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the “mouth-feel,” an important component for consumer enjoyment of a soft drink. Sugar also balances flavors and acids. Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes were introduced more successfully, notably aspartame, or Nutra-Sweet, which was widely used throughout the 1980s and 1990s for diet soft drinks.

Because some high-intensity sweeteners do not provide the desired mouth-feel and aftertaste of sugar, they often are combined with sugar and other sweeteners and flavors to improve the beverage. The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness, and acidity (pH). Acids add sharpness to the background taste and enhance the thirst-quenching experience by stimulating saliva flow. The most common acid in soft drinks is citric acid, which has a lemony flavor. Acids also reduce pH levels, mildly preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance of the beverage. There is an endless range of flavorings; they may be natural, natural identical (chemically synthesized imitations), or artificial (chemically unrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance “eye appeal” by serving as clouding agents. Emulsions are mixtures of liquids that are generally incompatible. They consist of water-based elements, such as gums, pectins, and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents.

Saponins enhance the foamy head of certain soft drinks, like cream soda and ginger beer. To impede the growth of microorganisms and prevent deterioration, preservatives are added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, maintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives in response to increasing health concerns of the public. Impurities in the water are removed through a process of coagulation, filtration, and chlorination. Coagulation involves mixing flock into the water to absorb suspended particles.

The water is then poured through a sand filter to remove fine particles of Roc. To sterilize the water, small amounts of chlorine are added to the water and filtered out. 4. 7. Example of flow process, operation chart [pic] The major raw materials required for production of carbonated beverage are sugar, concentrates, carbon dioxide and water. Sugar is delivered either in hopper cars with pneumatic discharge or in bags. For reasons of micro-biological stabilization, the sugar syrup is produced in a hot dissolving process. The sugar is admixed by means of conveying elevators.

In case the sugar is dirty or slightly brown, the application of active carbon is indispensable. For heating purposes and for maintaining a constant dissolving temperature of 85oC, the sugar dissolving tanks have either a heating jacket or are equipped with an interior heating spiral. Exact weighing is essential in this process. It is done by a pressure gauge with a large-scale reading instrument. The entire dissolving process takes about one hour. After that the mixture is filtered, cooled by the plate cooler, and from there the product flows directly into the mixing and storing vessels.

The raw materials and essences are stored in a cool-room at approx. 4oC. They are either pumped into the concentrate preparing vessel by a barrel pump or they are manually added. Citric acid is dissolved in a separate vessel. In order to obtain homogeneous final syrup, the mixture should be stirred for another15 minutes in the mixing vessel. During this time the measuring of Brix content should be done that correction can be made, if necessary. Then the syrup is transported to the pre-mixer by means of a pump. There the beverage is de-aerated, dosed, cooled and carbonated.

In a vacuum tank the treated water is de-aerated and cooled down in a multiple stage plate cooler to approximately 8oC in a first step, and then conveyed to the jet apparatus, where, according to the Venturi-principle, syrup and water are mixed. In the carbonating department Carbon dioxide is added to the mixed drink by means of a jetting apparatus, and thereafter the product is conveyed to the storage tank. From this tank a discharge is made out for further cooling in the second stage of the plate cooler at approximately 3oC- 4oC. Without mechanical help the product is conveyed to the filling machine.

The filling and sealing unit works according to the single-chamber counter-pressure principle and guarantees a quality-preserving bottling of drinks with highest microbiological security. 4. 8. Schedule of realization of the project I hope that the plant will be built in 2012, and producing will be started in 2013, so the first profit I will get in the end of 2013 and beginning of the 2014. During the 2013 we will try to produce 15 tastes of the “BUBBLES”, and we will see which of them successful, and which of them we need to replace. 4. 9. Packing.

The main purpose of soft drinks packaging is to protect the product, maintain the convenience of use for the consumer and to reduce waste. All soft drinks packaging can be recycled and/or re-used to make other useful products. For example: • aluminium cans are recycled and used with raw material to produce new batches of cans; • plastic bottles can be used to make fleece textile products, fibre filling and street furniture; • glass bottles can be reused or recycled to use in the production of new glass; and • paper and board is recycled to produce tissue, paper bags, chip board, briefcases and office furniture.

The reduction of packaging waste has always been a primary concern of the soft drinks industry. Therefore, the industry has consistently been at the forefront of packaging innovations and is constantly looking at ways to reduce the amount of raw materials used in various types of packaging. Types of packaging The main forms of packaging used by the soft drinks industry are: • glass bottles • plastic including PET (Polyethylene terephthalate), PVC (Polyvinyl chloride), HDPE (High density polyethylene), cups (made from polystyrene and polyethylene), pouches (low density polyethylene) • cans including aluminium and steel.

• paper such as cartons When manufacturers are considering packaging for a soft drink they need to consider the functions of packaging to ensure that the products reach the consumer in the best possible condition. The functions of packaging are to contain, protect, identify and sell the product while keeping in mind the impact upon the environment and the costs involved. Certain packaging is more suitable for certain types of product than others when you consider the above criteria.

In my company we will use all types of packaging to encourage consumers. So everyone can chose the type of bottle he or she likes, from o,2 to 2,5 liters, that are more comfortable for them. 5. Personnel 1. Highest level of managers, education, and experience; 1) Executive Vice President Received an industrial engineering degree from Los Andes University in 1978 and graduated from the Stanford University Executive Program in 1992.

He also taught marketing, operational research, and advertising during his career with Coca-Cola de Colombia and has served as a director of several public bottling companies during his career with the Company. 2) Executive Vice President Prior to joining the Company, worked for S. C. Johnson Wax in marketing and sales and for Banco Santander in corporate finance and investor relations, has a degree in business administration and law from ICADE University in Madrid. 3) Senior Vice President, Global Business and Technology.

Services Prior to joining the Company, served as Executive Vice President, Finance and Operations, Turner Entertainment Group; Executive Vice President, Finance and Administration, Turner Sales and Distribution Group; and Vice President and Group Controller, Turner Sales and Distribution Group. Before joining Turner Broadcasting, Inc. , He was with Price Waterhouse in Audit and Accounting Services, has a Bachelor’s of Science degree in accounting from the University of Alabama.

He also serves as a board member of the PATH Foundation and Atlanta Downtown Improvement District. 4) Vice President and Chief Scientific and Regulatory Officer Prior to her appointment at The Coca-Cola Company, She was Executive Vice President and Chief Science Officer for the National Food Processors Association (NFPA) where she was responsible for the overall direction of NFPA’s three laboratory centers; scientific, regulatory and international policy (including NFPA-Asia in Bangkok, Thailand); the Office of Food Safety Programs; and NFPA’s Research Foundation.

She served as NFPA’s scientific spokesperson on nutrition and health, food safety, biotechnology and food protection. She previously held leadership positions with the Distilled Spirits Council of the United States, the Chocolate Manufacturers Association, the American Cocoa Research Institute and the National Confectioners Association. She received her B. A. from Wilson College in history and biology, her M. S. in nutrition and food science from Drexel University and her Ph.

D. in food microbiology and food safety from the University of Wisconsin. She has authored/co-authored numerous scientific publications and has presented at many national and international scientific and regulatory meetings. 5) Senior Vice President and Chief People Officer She has served as Advisor to the Board, Ronald McDonald House Charities, board member for Habitat for Humanity, ongoing Coca-Cola mentor and a past mentor in the Georgia Executive Women’s Leadership program.

Ceree currently serves on the Board of Trustees, Oglethorpe University in Atlanta, and is a member of HR50, a group of the most senior Human Resources leaders from around the globe. She has a bachelor of arts degree in biology from the University of Tennessee. 2. Workers 5. President an

7BUSS008W Module Handbook Semester 2 January 2019 Module at a Glance Week Lecture Topic Date 1…

7BUSS008W

Module Handbook

Semester 2

January 2019

Module    at a Glance

Week

Lecture                             Topic

Date

1

Introduction                              to the Module.

Jan                           21 st ,                                2019

2

Emerging                          Issues & Trend Analysis :                               Global & Regional Analysis.

Jan                           28 th ,                                2019

3

Competitive                              landscape Analysis                            Industry                            KSF’s.

Feb                           4 th ,                          2019

4

Internal                              Organisation Scrutiny & Success Factors: RBV                              & Value Chain.

Feb                           11 th ,                                2019

5

Assessing                          Resources & Capabilities: VIRO                              Analysis KPI                                 analysis.

Feb                           18 th ,                                2019

6

Corporate                         & Business strategy.

Feb                           25 th ,                                2019

7

Disruptive                         Technology & Blue Ocean Opportunities.

Mar                          4 th ,                          2019

8

Organisation                             Culture, CSR & Brand equity: Stakeholder                           engagement & reputation management.

Mar                          11 th ,                                2019

9

Strategic                           leadership: Psychology                                 & Disruptive entrepreneurship.

Mar                          18 th ,                                2019

10

International                             Strategies: Organic                             Vs Inorganics Growth Strategies.

Mar                          25 th ,                                2019

11

Strategic                           Options & Recommendations.

April                         1 st ,                          2019

12

Reprise                             of Module: Preparation                                 for exam.

April                          8 th ,                          2019

Module    Assessment at a Glance

Assessment

Weighting                                (%)

Date(s)

Practical                            (Group)

30%

Weekly                             Business Simulation (Glo-Bus): From February 7 th to April 11 th

Report                              (Individual)

20%

March                               28 th : before 12.59pm.

Exam (Closed                             Book)

50%

May 2019 (Exact date to be confirmed by WBS Registry)

The Module Aims &         Learning Outcomes

Summary         of Module Content:

This module involves strategic thinking that draws together all aspects of business & management and applies them to the context of the international business environment. The module content links strategic analysis to the critical appraisal of international business scenarios and cases. Students will learn how to develop sustainable business models and solutions in a complex and changing world and to think like business analysts, management consultants & executive decision-makers.

Module            Aims

To develop        the analytical skills to identify strategic issues in organisations         and their external environments on a regional and global scale.

To develop        an understanding of the most important strategic issues confronting       the international manager.

To    synthesise learning from other modules and provide a means of setting their principles and practices in the overall organizational    context; the module thus draws on builds upon theoretical and practical information covered earlier in the course, adding to     knowledge concerning strategies, governance, ethics and the drivers of the international political economy.

Learning          Outcomes

On successful completion of the module, students will be able to:

Critically    assess the external drivers and emerging issues that influence         industry and firm-based decision-making

Evaluate    the strategic situations of firms including their internal value         chain ecosystems, financial resources, organisational structure and         cultural typologies.

Use   relevant strategic concepts and frameworks to analyse internal &         external strategic issues that are important to manager in         internationalising and globalising firms.

Provide     appropriate strategic options as possible solutions for smaller         internationalising firms as well as established international and    global companies.

Critically    appraise and debate major contemporary strategic issues that will be         potentially disruptive in industries of the future including topics   such as 3D Printing, Internet of Everything, Digitalisation &      alternative energy

Indicative                 Syllabus Content

The indicative syllabus areas that you will be covering are:

Contemporary   emerging issues in the international & global business         environment

Strategic   frameworks for environmental scanning

Joint ventures, strategic alliances and networks and other recent developments in international and global business strategy

Strategic   concepts, theories and framework for critically analysing         organisations and their ecosystems

Critical      appraisal of resources and capabilities and international competitor         analysis

Understanding and critically assessing organisational structure, culture and         architecture in globalising industries

International     knowledge management and strategy

CSR and    strategic stakeholder engagement in the international context

Strategic   options frameworks and evaluation

Teaching          and Learning Methods

Activity                             type

Category

Student                             Learning & Teaching Hours

Lecture

Scheduled

12

Seminars

Scheduled

24

Independent                             Study

Independent

156

Assessment on the Module

Assessment Rationale

There are three assessments:

A group project involves examining the strategic choices facing an               internationally active organisation and its executive board in a             business simulation that takes place over a number of years.

The second assessment is an individual critical essay of 2000 words              on aspects of strategic theory and practice.

The end-of-module examination will involve a 3 hour closed-book               exam based on a pre-seen case study

Assessment Criteria

Students will be assessed on:

Their ability to relate the underpinning current theory and practice       in strategic management to specific real life contexts

Their capacity to synthesise different theoretical approaches and identify challenges facing both international and global business     managers.

Their capacity to critically evaluate traditional and contemporary strategic management theory and its relevance and usefulness to      management practice in complex and often disruptive international environments.

Their ability to develop clearly and concise strategic options with evidence based argument and to critically argue what are the best     solutions going forward in applied various international business         cases and scenarios.

Assessment Methods and                Weightings Assessment                                           Name Weighting Pass                                              Mark Retake                                             mark Assessment                                             Type Group                                              Practical                                                                                                                            30                                                                                                                             50                                                                                                                             40                                                                                                                             Glo-Bus                                             Business Simulation.                                                                                                                                                                                                                                                Report                                                                                                                              20                                                                                                                             50                                                                                                                              40                                                                                                                             Individual                                          Critical Report                                                                                                                                                                                            Examination-                                             Closed Book                                                                                                                              50                                                                                                                             50                                                                                                                             40                                                                                                                              A                                              3 Hour Closed Book Exam

What happens if you                submit your coursework after the deadline?

If you hand your coursework in after the official deadline, you will be subject to penalties. Please read the following extract from the Course Handbook.

Penalties for late submission of coursework

The University operates a two-tier penalty system for late submission of coursework and in-module assessment. This regulation applies to all students registered for an award irrespective of their level of study.

All University coursework deadlines are scheduled between Monday and Thursday inclusive. Where possible, the submission day will coincide with the day the module classes are normally taught. However, the University does not allow submission deadlines to be set for Fridays.

If you submit your coursework late but within 24 hours of the specified deadline, 10% of the overall marks available for that element of assessment (i.e. 10%) will be deducted, as a penalty for late submission, except for work which obtains a mark in the range 50 – 59%, in which case the mark will be capped at the pass mark (50%).

If you submit your coursework more than 24 hours after the specified deadline, you will be given a mark of zero for the work in question.

Late work and any claim of Mitigating Circumstances relating to coursework must be submitted at the earliest opportunity to ensure as far as possible that the work can still be marked.

You will normally have the right to submit coursework 5 working days after the original deadline. Once the work of other students has been marked and returned, late submissions of that same piece of work cannot be assessed

Reading & Engaging        with the Module

Required and           recommended reading

As master students you will be expected to read beyond the set text.  I will refer to recommended reading in lectures and seminars. You will also find it worthwhile to stay a

Once completed the original examination shall be placed in an envelope with the following informatio

Once completed the original examination shall be placed in an envelope with the following information written on the front of the envelope “Completed Final Examination HRTM Fall 2013-Joseph Dworak.” The envelope shall be returned on the scheduled date for the Final Examination Thursday, December 12, 2013 at 5:00 p.m., SPX 209. PART ONE [Performance Evaluation] Instructions This examination is a fill-in examination. You are required to read the Factual Pattern. After you read the Factual Pattern, proceed to the Report. You will note that there are numbers throughout the Report. A word or phrase has to be used in place of each number to make the sentence correct. Utilizing the words listed at the end of the Examination, choose the word or phrase which best fits. Write that word next to the appropriate number on the list which appears at the end of the Examination. Do not write numbers. Factual Pattern The annual sales meeting of Happy World Hotel (“Happy World”) is this afternoon. You are the legal advisor assigned to the sales department of Happy World. At the sales meeting, the Vice President of Sales must report on all outstanding material legal issues involving contracts. The Vice President, with the help of others, has prepared a draft report. The draft report is missing a number of legal terms and phrases which are necessary to identify and explain the various legal issues. You are to replace the numbers with the pertinent legal terms and you have two hours to do so. REPORT Over the last year, Happy World has been involved in several unique contract disputes. Hotel operations have changed, and the transition has not been without problems. Happy World also has had disputes with former employees and others who were previously employed by Happy World. Happy World is also working with the United States Attorney General. The first legal issue deals with a dispute that Happy World had with its former employee, John Smart. Mr. Smart conceived for Happy World a new and innovative machine used to more effectively clean and sanitize hotel rooms (especially against viral diseases such as the swine flu), which utilized cutting edge technology that had not yet been used by anyone in the industry. Happy World believes it owns all rights to this technology. Happy World filed all the applicable documents to obtain the exclusive right to use this technology. Happy World did so by filing a (1) application. Mr. Smart left the employment of Happy World and started a company to manufacture the machine using Happy World’s technology to sell to the larger hospitality industry using non public information, which over the years Happy World had not disclosed and which gave Happy World an advantage over its competitors. Happy World considered this information a (2). Over the years, Happy World has also developed the unique names and processes for making hotels easier to clean and the names have become so well known that they are subject to (3) protection. Happy World sued Mr. Smart because Happy World believed that its intellectual property rights were being infringed. The case against Mr. Smart was settled because Happy World was able to enlist the help of the U.S. Attorney General. Happy World requested the filing of a criminal complaint in addition to its own civil complaint. Happy World contended that the property that Mr. Smart was using was, in effect, stolen from Happy World. Through civil discovery procedures, Happy World received the relevant information regarding what Mr. Smart was doing. This information was turned over to the U.S. Attorney, and the U.S. Attorney determined that there was (4) to allow the U.S. Attorney to conduct a raid and seize documents and other material from Mr. Smart consistent with the protections afforded Mr. Smart by the (5). Once this information was obtained, Mr. Smart did not have the basis or the incentive to contest the civil complaint. Thereafter, the matter was settled by Mr. Smart paying Happy World a substantial amount of money. However, in exchange for the payment, Mr. Smart wanted assurances from Happy World that it would not pursue him any further. In other words, he wanted a signed settlement agreement. However, Happy World did not want to give him a (6), which typically would have included a provision pursuant to California Civil Code Section 1542 of a (7). For this reason, Happy World agreed to a (8). In the settlement agreement Happy World included a confidentiality provision. Happy World recognized that should Mr. Smart breach the confidentiality provision, the monetary injury would be difficult to ascertain. For this reason Happy World included a (9). Happy World was careful on how this part of the settlement agreement was drafted because Happy World recognized that if the court considered this part of the contract to be a (10), the courts would not enforce it. The matter with Mr. Smart has been successfully resolved and Happy World does not anticipate having any further problems with him. Happy World did, however, have problems with their original manufacturer who was responsible for making the cleaning machines for Happy World. Apparently, the original manufacturer became concerned that Happy World did not have the rights to use the technology for the manufacturing of the cleaning machines. The original manufacturer sought to take advantage of the issues raised by Mr. Smart. Happy World believed that the manufacturer was trying to get out of the contract it had with Happy World by claiming that they would be sued if they manufactured the cleaning machine because, at least according to the argument raised by Happy World’s original manufacturer, Mr. Smart and not Happy World owed the intellectual property rights to what is being manufactured. Happy World believed that the manufacturer wanted out of the contract because it simply had negotiated a bad deal and was trying to raise legal issues as to why it should not perform. Happy World believes that the issues raised by the original manufacturer were motivated, in part, because it, the original manufacturer, had agreed to allow Happy World to extend the contract for a period of two years for which Happy World gave independent consideration. Basically, Happy World had an (11). Apparently, the manufacturer was claiming that because Happy World allegedly did not have the rights to the technology or the other intellectual property rights to the cleaning machine that Happy World had manufactured that the manufacturer should be excused from further performance under the concept of (12). Happy World, of course, established that the technology was legally owned by Happy World, and when the manufacturer refused to manufacture what Happy World was going to order but had not yet ordered, the manufacturer’s action was an (13) of the contract. As a result, Happy World covered and attempted to recover its losses by obtaining a substitute manufacturer. Typically, a non breaching party in the position of Happy World would be able to collect any additional costs it had to pay for the items manufactured elsewhere. These damages are generally referred to as (14). Happy World would not be able to recover the losses it occurred because of its inability to launch an entirely different product line of “green” cleaning technology products which was going to be financed by the profits from the sales that Happy World anticipated making from the existing product line. Happy World would not be able to recover these types of damages which are considered to be (15) because this type of loss was not in contemplation of either Happy World or the original manufacturer when the contract was first entered into. Odd as it may be, it turned out that the purchasing department of Happy World quickly found a new supplier which was motivated to do business with Happy World. The new supplier agreed to manufacture at a lower cost the products needed by Happy World. Under these circumstances, all that Happy World would be entitled to recover from the original manufacturer would be (16). It would not make economic sense for Happy World to file a lawsuit to recover this type of loss unless the contract with the original manufacturer included a (17). Unfortunately, the contract with the original manufacturer contained no such provision, and to pursue litigation would merely be an expensive as well as a time consuming endeavor without the ability to recover any substantial award or the cost of pursuing such a case. Although Happy World was able to find a new supplier or manufacturer, the circumstances surrounding how that arrangement was reached had its own unique problems. Originally, the manufacturer was contacted by telephone, and the contract was entered into over the telephone. This presented a problem because both Happy World and the new manufacturer are merchants and the agreement because it (18) was covered by the (19). This meant, of course, that the agreement had to be in writing, and if not, the telephone agreement could be (20) by the new manufacturer. If this happened, Happy World would still have to pay for the reasonable value of goods received. The legal arrangement would be considered to be a (21), and the amount Happy World would be required to pay for the goods received would be determined by the legal concept of (22) because if it did not pay that amount, it would be (23). Because the contract with the new manufacturer is such a good deal for Happy World, we are concerned that at some point the new manufacturer will try to raise legal argument to (24) or get out of the contract. Happy World should evaluate these various legal theories the new manufacturer might raise and determine whether these theories are available to the new manufacturer. The contract would not be considered a (25) because it was negotiated and made at arms’ length. In particular, Happy World first made an offer which at common law under the (26) meant that the (27) had to be in the same manner as presented. It was not. Rather, the new manufacturer rejected the original offer and the new manufacturer changed the terms of the offer and made a (28). It was not (29) before Happy World agreed to it which meant that Happy World still had the (30) which we exercised. Because our mutual intent at all times was manifested by our oral communications, the contract is not an (31). Nor would the new manufacturer have any basis to claim that the manufacturer’s assent to the contract was obtained involuntarily by some action on our part which put their business at peril, which defense is typically referred to as (32). Even if the new manufacturer would have liked to have had better terms, there is nothing procedurally wrong with how the contract was entered into, nor was there anything substantially onerous about any of the provisions of the contract to allow the new manufacturer to claim that the agreement was an (33). At this point, Happy World should be careful to outline all the terms in a written agreement to be presented to the new manufacturer. If a written document is signed and Happy World has a dispute about what was agreed to with the new manufacturer, it is likely that the court would find that the agreement is an (34) such that the court would not need to require the introduction of any evidence extrinsic or external to the four corners of the document. Rather, the court would look at the words written to ascertain the respective rights and obligations of Happy World and the manufacture based upon the (35). Due to the change in manufacturing, Happy World also decided to make a product change. This meant that the new products will be slightly different from our original products. The sales department has determined that there is no market for these older products once the new products have been announced to the marketplace. For this reason, Happy World has determined that the old products would be sold by auction. Happy World has to determine, however, what type of auction to conduct. If Happy World wants a minimum price that the goods will sell for, then the auction should be (36). On the other hand, if we simply want the product sold to the highest bidder, then the auction should be an auction (37). Another issue to be addressed is the desire of the new manufacturer to assign the rights to manufacturer the products sold to Happy World to another entity. Happy World would not like this to happen, and the contract protected Happy World by a prohibition against the assignment which is typically referred to as a (38). At this point, it is not clear that the prohibition will work. If it doesn’t and the assignment goes through, this does not mean that Happy World would have no rights. To the contrary, Happy World would have the additional right to sue this new party even though Happy World is not in privity of contract with that new party. Happy World would be considered the (39) of the agreement between the new manufacturer and the person with whom the new manufacturer contracted with to actually do the manufacturing of the goods that Happy World is purchasing from the new manufacturer. However, if under the circumstances Happy World is considered merely an (40), then Happy World would only be able to sue the new manufacturer and not the person or entity which was assigned the manufacturing contract. Happy World is in the hospitality business, and although the cleaning machine is used to clean hotels, Happy World should “spin off” this technology and sell it through another related but different business. The machine is likely to be a market success, and if it is sold through a separate entity, that entity has to afford more protection than one person starting and running the business which is a (41). Management responsibilities and additional capital will be needed. Others can share in the ownership and management and a (42) can be used. Alternatively, if Happy World wants to keep all management responsibility, and only needs capital investment, it could become a (43). In both these forms of organization the owners have unlimited liability. Also any profits will ultimately be reported on the individuals’ personal tax return which, of course, is a (44). These types of entities are not tax paying entities, but rather tax reporting entities and the income is reported to the individuals by a (45). If they want to protect against having unlimited liability to their creditors but want a consolidated and simplified management decision making process, they may elect to be a (46). Yet, this form also limits growth because the amount of capital depends upon the number of the members. The likely form of organization is one which has more structured management as well as protection against liability to the creditors of the business. The question is how large the company will become. If the goal is to be a company whose stock is listed on a national stock exchange, the company must follow the process to sell its stock, which process is commonly called an (47). Once this approval is obtained the company’s stock can be sold on a stock exchange, and once the company is commonly referred to as a (48). If this route is followed, the most likely code of the state of incorporation will be the (49) because it is much more management friendly than the (50). In either case, under the rules of the Internal Revenue Code for tax purposes, the corporation will likely be a (51) as opposed to a (52). Often shareholders who make decisions focusing on tax issues also seem to run into problems on how they run the business. A corporation is a separate legal entity and should be treated as such. If the shareholders fail to do so, they may become the (53) of the corporation and lose their protection of limited liability under the equitable concept of (54). The second of these two tax code provisions will mean that any taxable income of the corporation will not be shown on the shareholder’s tax return, but the corporation will file its return. The typical way for profits to be given to the shareholders or owners of the corporation is by the declaration of a (55), which results in the problem commonly referred to as (56), which basically means income is reported and paid both at the corporate level and individual corporate level. Lastly, this report also addresses the legal issues surrounding the injury that occurred at the Happy World facility in Vermont and what the company should expect to happen based upon recent events. To summarize, a child in Vermont was using a complimentary bicycle that we make available to our guests and the forks allegedly failed, causing a serious accident. The child broke his neck and is a quadriplegic. This is the first claim of its kind raised against Happy World. This report will address the rules regarding the process to be followed, which are typically referred to as (57), and in the later section of this memorandum I will address the (58) which deal with the respective rights and obligations of the parties. The first question that comes to mind is where will we be sued? The headquarters of Happy World are located in California, but the injury occurred in Vermont. Hence, the first question is whether Vermont has (59), and that will be determined upon whether Vermont has a (60). If it does, then the company may be sued in the state court of Vermont. If we are sued there, we will need to be concerned about whether a Vermont State Court would be unduly sympathetic to a citizen of their state. For that reason, we should determine whether we can have a federal court hear the claim based upon the fact that we are an out of state company and (61) exists. If both the state of Vermont and the federal court located in Vermont have the power to hear this case, then (62) is said to exist. If the matter can only be heard in the Federal court because it exclusively legislated in this area, then (63) exists. Another question we need to determine is who will actually be the person filing the lawsuit. This person is referred to as a (64). Will it be the injured child or his parents? Typically, the parents, as guardians, will sue on behalf of the child. Since we are being sued, we will be the (65). Regardless of the technical issue of who is the proper person to sue, this is a relatively sympathetic case and we may have considerable exposure although we may have no legal culpability. Therefore, before proceeding to litigation, we should consider whether any type of (66) procedures are available. If so, I recommend (67), because this will afford us the opportunity to see if the matter can be settled with the help of a (68) without having an adverse determination on the merits of the lawsuit. Alternatively, if we want to hear the dispute outside of the court system, we may want to consider (69). This can either be (70), where the case is heard and decided by an arbitrator and the decision is a final decision enforceable by the court. On the other hand, we might have (71), whereby if either side is unhappy with the resolution they can still seek to have the case heard in court. There are two types of service providers who can provide this service. I have checked and the (72) which is the service provider that has a longer history has offices in Vermont. However, we might want to hire a retired judge from (73). If we are not able to agree to keep this matter out of the court system at some point a lawsuit will be filed. A lawsuit will be initiated by the filing of a (74). After it is filed, we will have to be given formal notice of that occurrence, which is typically referred to as (75). When that happens, we will receive a copy of another document that notifies us of our obligation to respond, which is typically referred to as a (76). Because the child who was injured presents a sympathetic case, if this matter is heard by a jury the award may be quite large. Hence, I have looked at whether it must be heard by a jury. I have determined that the right to jury is guaranteed by the (77). Recognizing that we may be stuck with a jury, we need to spend much time making sure that the jury selected has no particular biases. I would suggest we start thinking about those questions that we give to the lawyer during the process of (78). Obviously, much more will need to be done before we get to that stage of the litigation, including the items I will mention next. We should immediately begin to think about what information might help us defend against the lawsuit and what we need from the other side and what information the other side will need from us. This is typically referred to as (79). The tools available to us will be the ability to get documents or other relevant information, generally referred to a (80). Additionally, we will be able to interview the child and parents and other witnesses under oath in front of a court reporter, typically referred to as a (81). One of the things we may be concerned about is whether there is some prior injury to the child which exacerbated the injuries the child suffered while riding Happy World’s bicycle. If so, we may want to get from the child or his parents information about his medical history through the sending of written questions typically referred to as (82). If they are unable to provide that information, then we may need to obtain that information from his doctors and we will need to prepare a (83). Whether we will get this medical information depends upon whether those medical records are protected from being disclosed or deemed to be (84) documents. One of the issues that we may want to address to resolve the case without the necessity of trial is the legal consequence of the fact that we have been told that the child modified the bicycle by changing the handle bars and the seat. Although we need to research the issue under Vermont law, misuse of the product, if it can be proved may be a defense. If there is no disputed issue of fact that the bicycle was modified and misused and Vermont law acknowledges the defense, we might be able to win the case on a (85). We have also learned that the injured child’s parents have been very aggressive about commenting upon Happy World. They have raised questions about the safety of our facilities and we are beginning to lose sales. We would like to see these statements stopped. To stop these comments, if at all, we would need to ask the court for an (86). If we can establish that what they are telling people is untrue that is (87). On the other hand, if the defamatory information is written, then we would have to sue for (88). However, one of the things that we are going to come up against is whether the (89) of the United States Constitution allows them to speak their minds within impunity. An option that we have is not to answer the lawsuit filed in Vermont based on the grounds that we do not think it has the legal power to hear the case. If that occurs, then a (90) will be entered against us once a court form entitled (91) is prepared and filed with the court if the procedures in Vermont are similar to those in California. When the court in Vermont awards money to the plaintiff because we failed to respond, the award will be referred as a (92), and will then be brought to California to determine whether it can be enforced. This will occur only after we have been afforded our rights of (93) which at a minimum will require the plaintiff to schedule a hearing on the Courts (94). The question of whether California has to recognize the Vermont judgment will depend upon the application of the (95) clause of the United States Constitution. Another issue that we should explore is the recent legislation that has been enacted by the United States Congress governing the protection of children who are injured by bicycles sold in interstate commerce. We will need to look at this statute to determine whether it exclusively regulates the area and has (96) this area of law. If it has, then we will only need to be concerned about federal law as opposed to state law based upon the (97) of the United States Constitution. We should also look to see if we have insurance coverage. The policy will typically be a (98) policy. We should (99) the claim to see if the claim is accepted. If so, then the insurance company will have recognized its (100) and will have coverage for the claim. If not, we should expect to receive a (101) letter. If the insurance company sends us this type of missive, then it will have only acknowledged its (102). If the insurance company fails to recognize any coverage and does so wrongfully and we are on our own to defend our case, we can later sue the insurance company for (103), rather than (104) which if it applies is a claim the defendant has against our insurance company. If we have to sue, we will sue the insurance company and seek to recover (105) in addition to any other losses we have suffered. Such a recovery is permissible to make an example out of the insurance company and to deter other insurance companies from acting in a similar manner. If we do not get full coverage but only a defense, and we think the lawyer hired by the insurance company has a conflict, we should think about asking the court to appoint (106) who we can be assured will be looking out for our best interests. Now that I have covered the major issues regarding the methods of enforcing these various rights, I will, as I mentioned earlier, review the (107) law issues, which consists of those laws that create the applicable legal obligations. I have conducted some preliminary research and found that the Legislature in Vermont has not enacted any laws in this area typically referred to as (108). Since the Legislature hasn’t spoken, I then conducted legal research and looked at the case law, typically referred to as (109). The area of law that covers this is generally referred to as (110) law because we do not have a contract with the inured child. The claim that most likely will be brought is the unintentional tort of (111) because it is claimed that we fell below the applicable standard of care. In looking at this area of law, it seems to me that the injured child or his parents need to show that we owed the child a (112) of care and that we (113) that duty and that the child suffered (114) and that those were (115) by us. As far as I know, we are aware of the incident, but no lawsuit is filed. It must be filed within two years. Under the (116) if a lawsuit is not filed within that time, it will be barred. I do not think we will be lucky enough to avoid being sued. In fact, we fully expect to be sued, and I should explain how the matter should be prepared for trial. Typically the lawyers will be doing a variety of things once all relevant information has been exchanged. The lawyers will be preparing documents in anticipation of trial which are given to the Judge prior to the trial. These include documents outlining what law will be told to the jurors by the judge and are generally referred to as (117). Also, sometimes there are issues that come up during the litigation that are not relevant to the dispute and only have a tendency to distract the trier of fact. Other times, information is revealed during the course of the exchange of information which one party or the other would not like to have considered by the trier of fact. Under these circumstances the lawyer, prior to trial, will prepare pleadings and other documents generally referred to as (118). These documents are usually given to the judge the first day of trial and there is a meeting with the judge prior to the beginning of the trial to discuss the issues raised. Once this preliminary meeting is concluded, the Judge will ask the clerk to call potential jurors from the jury room. At this particular time, generally 12 jurors and 2 alternative jurors are selected and the lawyers are given the opportunity to ask the jurors questions. This procedure I have already mentioned, but did not explain. I will now. One of the things the lawyers are trying to ascertain during this questioning is whether the jurors are biased. In addition, the lawyers are trying to determine whether they feel, for whatever reason; the jurors will be good jurors or not so good jurors in light of the unique facts of the case. If, during this questioning the lawyers discover that one or more of the jurors either knows the parties or expresses some bias, then the juror may be excused by a (119). On the other hand, there are some jurors who, for whatever reason, a particular lawyer may not think will be in his or her client’s best interest. Although there are a limited number of these, the lawyer can excuse these jurors by exercising what is generally referred to as a (120). Once a jury is selected, the case begins and it typically begins with the lawyer who represents the plaintiff who gives an (121). Thereafter, witnesses are called. The lawyer who calls the witnesses conducts what is referred to as (122). The lawyer who does not call the witness then is afforded the opportunity to engage in (123). Once a plaintiff has finished his case, then we as a defendant can either put on evidence regarding any defense that we have to the complaint or put on evidence regarding our (124) if we responded to the complaint by filing its own responsive lawsuit. For example, if we sued the child’s parents for negligence because they allowed the child to modify our product we will have to prove that case or set of facts. After the case is concluded, the jury renders its decision, which is typically referred to as a (125). Thereafter, the losing party may challenge the jury’s decision on a number of grounds, including one procedure referred to as (126). If that is not successful, then a judgment will be entered. At that time, one of two things will happen. Either the case is appealed or it is not. If the case is appealed, two types of documents among others need to be prepared and sent to the reviewing court. One concerns what was said during the course of the trial, which is generally referred to as the (127). The other is copies of all documents that were presented during the trial, which is generally referred to as the (128). If there has been a money judgment awarded by the court, then to stop the enforcement of that judgment a bond has to be posted. If a bond is not posted, then the person in whose favor the judgment is entered has the ability to engage in efforts to collect the money. Typically the procedures to collect the money involve the recordation of documents with the various county recorders’ office that are referred to as (129). These documents, once recorded, become liens on any of the real property owned by the person who owes the money pursuant to the judgment. In addition, if there are assets other than real property, the person who is owed the money based upon the judgment may also file with the Secretary of State a document generally referred to as a (130). Also, the person who is owned money may engage in efforts to determine the nature, extent and location of the various assets owned by the person who owes the money. This is typically done through a court proceeding referred to as a (131). If after undertaking this proceeding information is obtained about the nature, extent and location of the assets, then the person who is owed the money can obtain from the court documents which will allow the money to be retrieved. For example, if the person who is owed the money learns that the person who owes the money has a bank account, then documents may be issued on the bank to take that money and these documents are referred to as (132). PART TWO [Additional Factors for Evaluation] This section is optional. You are not required to write anything or provide any additional information. If you have done well on the tests and are satisfied that your final grade will be based on your test results you may wish to ignore this section. On the other hand, if you feel there are other factors which you feel should be considered in the evaluation of your final grade then this section affords you the opportunity to provide any relevant information such as the depth and scope of your class participation if any, how you enhanced, if at all, the learning experience of all students, or any other in

7BUSS008W Module Handbook Semester 2 January 2019 Module at a Glance Week Lecture Topic Date 1…

7BUSS008W

Module Handbook

Semester 2

January 2019

Module    at a Glance

Week

Lecture                             Topic

Date

1

Introduction                              to the Module.

Jan                           21 st ,                                2019

2

Emerging                          Issues & Trend Analysis :                               Global & Regional Analysis.

Jan                           28 th ,                                2019

3

Competitive                              landscape Analysis                            Industry                            KSF’s.

Feb                           4 th ,                          2019

4

Internal                              Organisation Scrutiny & Success Factors: RBV                              & Value Chain.

Feb                           11 th ,                                2019

5

Assessing                          Resources & Capabilities: VIRO                              Analysis KPI                                 analysis.

Feb                           18 th ,                                2019

6

Corporate                         & Business strategy.

Feb                           25 th ,                                2019

7

Disruptive                         Technology & Blue Ocean Opportunities.

Mar                          4 th ,                          2019

8

Organisation                             Culture, CSR & Brand equity: Stakeholder                           engagement & reputation management.

Mar                          11 th ,                                2019

9

Strategic                           leadership: Psychology                                 & Disruptive entrepreneurship.

Mar                          18 th ,                                2019

10

International                             Strategies: Organic                             Vs Inorganics Growth Strategies.

Mar                          25 th ,                                2019

11

Strategic                           Options & Recommendations.

April                         1 st ,                          2019

12

Reprise                             of Module: Preparation                                 for exam.

April                          8 th ,                          2019

Module    Assessment at a Glance

Assessment

Weighting                                (%)

Date(s)

Practical                            (Group)

30%

Weekly                             Business Simulation (Glo-Bus): From February 7 th to April 11 th

Report                              (Individual)

20%

March                               28 th : before 12.59pm.

Exam (Closed                             Book)

50%

May 2019 (Exact date to be confirmed by WBS Registry)

The Module Aims &         Learning Outcomes

Summary         of Module Content:

This module involves strategic thinking that draws together all aspects of business & management and applies them to the context of the international business environment. The module content links strategic analysis to the critical appraisal of international business scenarios and cases. Students will learn how to develop sustainable business models and solutions in a complex and changing world and to think like business analysts, management consultants & executive decision-makers.

Module            Aims

To develop        the analytical skills to identify strategic issues in organisations         and their external environments on a regional and global scale.

To develop        an understanding of the most important strategic issues confronting       the international manager.

To    synthesise learning from other modules and provide a means of setting their principles and practices in the overall organizational    context; the module thus draws on builds upon theoretical and practical information covered earlier in the course, adding to     knowledge concerning strategies, governance, ethics and the drivers of the international political economy.

Learning          Outcomes

On successful completion of the module, students will be able to:

Critically    assess the external drivers and emerging issues that influence         industry and firm-based decision-making

Evaluate    the strategic situations of firms including their internal value         chain ecosystems, financial resources, organisational structure and         cultural typologies.

Use   relevant strategic concepts and frameworks to analyse internal &         external strategic issues that are important to manager in         internationalising and globalising firms.

Provide     appropriate strategic options as possible solutions for smaller         internationalising firms as well as established international and    global companies.

Critically    appraise and debate major contemporary strategic issues that will be         potentially disruptive in industries of the future including topics   such as 3D Printing, Internet of Everything, Digitalisation &      alternative energy

Indicative                 Syllabus Content

The indicative syllabus areas that you will be covering are:

Contemporary   emerging issues in the international & global business         environment

Strategic   frameworks for environmental scanning

Joint ventures, strategic alliances and networks and other recent developments in international and global business strategy

Strategic   concepts, theories and framework for critically analysing         organisations and their ecosystems

Critical      appraisal of resources and capabilities and international competitor         analysis

Understanding and critically assessing organisational structure, culture and         architecture in globalising industries

International     knowledge management and strategy

CSR and    strategic stakeholder engagement in the international context

Strategic   options frameworks and evaluation

Teaching          and Learning Methods

Activity                             type

Category

Student                             Learning & Teaching Hours

Lecture

Scheduled

12

Seminars

Scheduled

24

Independent                             Study

Independent

156

Assessment on the Module

Assessment Rationale

There are three assessments:

A group project involves examining the strategic choices facing an               internationally active organisation and its executive board in a             business simulation that takes place over a number of years.

The second assessment is an individual critical essay of 2000 words              on aspects of strategic theory and practice.

The end-of-module examination will involve a 3 hour closed-book               exam based on a pre-seen case study

Assessment Criteria

Students will be assessed on:

Their ability to relate the underpinning current theory and practice       in strategic management to specific real life contexts

Their capacity to synthesise different theoretical approaches and identify challenges facing both international and global business     managers.

Their capacity to critically evaluate traditional and contemporary strategic management theory and its relevance and usefulness to      management practice in complex and often disruptive international environments.

Their ability to develop clearly and concise strategic options with evidence based argument and to critically argue what are the best     solutions going forward in applied various international business         cases and scenarios.

Assessment Methods and                Weightings Assessment                                           Name Weighting Pass                                              Mark Retake                                             mark Assessment                                             Type Group                                              Practical                                                                                                                            30                                                                                                                             50                                                                                                                             40                                                                                                                             Glo-Bus                                             Business Simulation.                                                                                                                                                                                                                                                Report                                                                                                                              20                                                                                                                             50                                                                                                                              40                                                                                                                             Individual                                          Critical Report                                                                                                                                                                                            Examination-                                             Closed Book                                                                                                                              50                                                                                                                             50                                                                                                                             40                                                                                                                              A                                              3 Hour Closed Book Exam

What happens if you                submit your coursework after the deadline?

If you hand your coursework in after the official deadline, you will be subject to penalties. Please read the following extract from the Course Handbook.

Penalties for late submission of coursework

The University operates a two-tier penalty system for late submission of coursework and in-module assessment. This regulation applies to all students registered for an award irrespective of their level of study.

All University coursework deadlines are scheduled between Monday and Thursday inclusive. Where possible, the submission day will coincide with the day the module classes are normally taught. However, the University does not allow submission deadlines to be set for Fridays.

If you submit your coursework late but within 24 hours of the specified deadline, 10% of the overall marks available for that element of assessment (i.e. 10%) will be deducted, as a penalty for late submission, except for work which obtains a mark in the range 50 – 59%, in which case the mark will be capped at the pass mark (50%).

If you submit your coursework more than 24 hours after the specified deadline, you will be given a mark of zero for the work in question.

Late work and any claim of Mitigating Circumstances relating to coursework must be submitted at the earliest opportunity to ensure as far as possible that the work can still be marked.

You will normally have the right to submit coursework 5 working days after the original deadline. Once the work of other students has been marked and returned, late submissions of that same piece of work cannot be assessed

Reading & Engaging        with the Module

Required and           recommended reading

As master students you will be expected to read beyond the set text.  I will refer to recommended reading in lectures and seminars. You will also find it worthwhile to stay a