Case Study on Pepsico

8/2/2019 Case Study on Pepsico

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GOODafternoon


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A CASE STUDY

ON

PRESENTED BY :

SaHNAZ YASMIN KHAN

MOONMOON CHAKRABORTY

RUBI DAS

GARIMA adhikary

RAKIBUDDIN AHMED


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INTRODUCTION

Change is inevitable and continous process.

Change is of 2 types, one planned and the other

unplanned.

Technological forces , Economic forces, regulations andstakeholders needs are may the reasons for change inan organization..

To sustain in the industry PepsiCo too had to implementcertain changes.


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Pepsi, an American Company, is based in NewYork

It manufactures snack food, beverages and

other products.

The company was established in 1965.


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The company acquired Tropicana in 1998 and merge with Quaker

Oats in 2001.

PepsiCo has recorded high retail sales since it was established.

Pepsi Co is considered the largest food and beverage company inthe world in terms of revenue.

The company generated over $1 billion in 2009 from each of the 19product line. In total the company generated revenue of $43.3

billion


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A. CUSTOMER RELATED PROBLEM

> CUSTOMER HEALTH

B. EMPLOYEE RELATED PROBLEMS

i). DIVERSITY ISSUESii). EMPLOYEE RECRUITMENT

AND PROMOTION ISSUES

The company has not been able to meet the needs of its stakeholders(i.e. customers and employees


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PROBLEM 1: a. customer related problem

1. Not able to meet the customer needs.

2. Most of the products offered by the

company are carbonated, contain a lot

of sugar and fats.

3. Not good for the health of theircustomers.

4. May cause chronic diseases obesity,

diabetes and other chronic diseases.

5. The advocates argue that the

company should not offer foods and

beverages that have high sugar

content, salt and fats.

HEALTH

PROBLEM


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1. The company has modified its products.

2. Examples - Diet Pepsi, Pepsi max.

3. The products are different from Pepsi.

4. Though the company has managed to

change its products, it does not meet the

needs of all its customers.

PEPSICO SOLUTION UNSUCCESSFUL :


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PROBLEM 2: b. EMPLOYEE RELATED PROBLEMS:

i. DIVERSITY ISSUES

1. Diversity is a major

problem in the

organization.

1. Though the company

has various workers,

it is not able tomanage the workers

well.


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PEPSICO SOLUTION UNSUCCESSFUL :

1. The company has a DIVERSITY TRAININGPROGRAM to train its employees on diversity

issues.

2. It also has DIVERSITY INITIATIVES in different

parts of the world to inform employees about

cultural differences in the organization so as tocreate a good working environment for its

employees.

3. Though, the company has established diversity

training programs and diversity initiatives in

different parts of the world, most people do

not make use of the programs.


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4. In addition, employees who attend diversity training

programs and the initiatives are not able to apply what they

learned.

5. This has influenced diversity in the organization and its

benefits (Draft &Marcis, 2005).

5. This is because employees in the organization no longeracknowledge cultural beliefs and values displayed by otherpeople.


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PROBLEM 3: b. EMPLOYEE RELATED PROBLEMS:

ii. Recruitment and promotion problem :

1. The recruitment and promotion of employees inthe organization has not been fair and non

discriminatory.

2. Some of the employees in the organization have

not been promoted because of discrimination.

3. Some of the employees are denied promotion on

the basis of color,race, sex and even nationality.

4. This has also been evidenced in the recruitment

of employees in the organization.

5. The discrimination of employees in the

organization has affected diversity (Commerce

clearing house, 2000).


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The problems identified above might impact thesuccess of the company in future.

The problems of the company will not only make itsuffer in terms of consumers but will also affect its

shares and sales in the market.


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What would haveyou done , hadyou been themanager ofPepsiCo?


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There are variousmethods to overcome theproblems and attain its goals:( i.e. Organisational andStructural changes)1. Changing Organizationalculture.

2. Changing Human resourcepolicies3. Improving the productoffered.


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1. The organization should change its culture.

2. There are different kinds of organizational culture like

weak culture and strong culture.


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STRONG CULTURE WEAK CULTURE1. Organizations have strong cultures have

managed well compared to weak cultures.

2. Have clear values that motivate employees

to embrace culture.3. Employees respond to stimulus because

they are aligned to organizational values.

4. Align the company towards attaining its

vision and mission.

5. Promotes strong interpersonal relationship

in the organization. This is becauseemployees are able to interact with their

workmates.

6. Leads to team cohesiveness in the

organization as different departments and

divisions in the organization are able to work

together.

7. Lead to diversity in the organization as

employees is able to accept other employees

and their cultural differences.

1. Find it hard to align their

organizations with organizational

values and control.

2. The organizations have extensive

procedures and bureaucracy.

3. Employees arenot able to promote

diversity.

4.. Because employees in the

organization do not encourage

team work and do not have

positive interpersonal

relationships. This in turn affects

minority employees and otheremployees.


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1. The organization should embrace a strong

organizational culture to be able to solve diversity

issues.

2. Having a strong organizational culture will make it

easy for employees to embrace the culture and also

values and beliefs in the organization.

3. This will in turn encourage diversity as the employees

will be able to accept other cultures.

4. Employees recognize an organization to have diversityif it has a strong culture (Green &Cameron, 2004).


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Change the human resource practices and policiesin the organization.Human resource managers are also responsible fordevelopment of the workers and maintenance of

diversity in the workplace as they are responsible forhiring and promotion.

Every applicant in the organization should be able to getan opportunity regardless of the origin of the person or

his color and race.


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1. The organization should change the products it offers to customers.

2. Different customers in the company have different needs. Thecompany should identify itsmarket segments well to develop products that meet the needs ofclients in that particular segment.

3. The company should ensure the amount of sugar and salt in the foods andbeverages are moderated.

4.The company should give customer health a priority and develop productsthat are inline with their needs.

5. Also, changing the products will give the company a competitive advantageand make it easy to compete with various competitors in the industry.


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OTHER SOLUTION

Kotlers 8 step change model :The model consists of 8 steps that leaders in the organization

should follow carefully so as to implement change.

1st step : Creating urgency

2nd step : Leaders should develop a strong coalition


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Step 3 : Managers should identify a clear vision that anyone can

understand.

Step 4 : They should communicate the vision to the employees. This willmake it easy for employees to accept change.

Step 5 : The manages should communicate the

vision regularly and powerfully and also embed it within their

activities.

Step 6 : The leaders should lead by example to enable employees to

accept change.

Step 7 : Managers should eliminate obstacles that affect theimplementation of change. Most of the leaders are not able to

implement change due to resistance.

Step 8 : Managers should try to test the success of the change process.


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Step 8 : continued

This motivates the employees to work towards attaining the goals

identified and thus ensures change is implemented well.

Leaders should develop short term goals and long term goal to assess the

success of the process.

Most of the projects fail because the organization declares victory earlyand fails to build change.

Lastly, the leaders should incorporate change into the corporate culture.

They should make the change part of the core activities in the

organization.


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The leaders in the organization should be

able to bring change in the organization

and also manage it .

The leaders should communicate change and guide inimplementing change .

The leadersshould develop clear visions that employees can understandso as to implement change .

The leaders should have good communication skills .


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The leaders should inspire otherpeople including employees

and other stakeholders .

The leaders should involve other

people in the change process so as tomotivate them and thus implement the change .

The leaders should have good problem solving skills to be able toidentify problems and develop solutions .

Apart from having the skills listed above, leaders should use theright style when implementing change .


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PepsiCo faces various issues that have affected profitabilityand productivity in the company. The issues have alsoinfluenced its market share and competition. Example ofthe issues in the organization are diversityissues, hiring and recruitment problems and not

meeting customer needs as expected. The company shouldchange its organizational culture by embracing a strongculture so as to overcome the issues. It should also change theproducts offered to customers and include health products.Moreover, it should change the HR practices and policies.

Leaders in the organization should be able to lead theemployees and other stakeholders in bring change so as toimplement change effectively and maintain it (McGuire&Leonard, 2007).


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THANK YOU

Case Study on Pepsico

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