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
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