How Does Pepsico Change Organizational Change

The two (2) segments chosen for the general environment that would rank the highest in the influence of PepsiCo Inc. are demographic segment and technological segments. First of all, general environment as defined by the text “is composed of dimensions in the broader society that influence an industry and the firms within it” (Hitt,2013). The demographic segment is concerned with a population’s size, age structure, geographic distribution, ethnic mix, and income distribution. It is commonly analyzed on a global basis because of their potential effects across countries’ borders and because many firms compete in global markets. PepsiCo Inc.

PepsiCo is one of the largest U.S based food and beverage companies. With a strong heritage. What is now, PepsiCo was first established in the late 1800’s. What started as a small one-man operation has grown into a food and beverage megabrand, with strong competition from both sectors of the food and beverage industry. With fierce competition from companies such as Coca-Cola, Kraft foods and ConAgra, PepsiCo must continue to innovate while providing customers with quality products that are priced competitively to remain relevant.

What I find to be the biggest indicator of concern is that PepsiCo’s profitability is currently declining, despite its ever-increasing sales figures. It has lost 2% on both its profit margin, and return on assets. The return on common stockholder’s equity, has dipped by 4%, and they lost $.02 over every dollar invested in assets in 2005. This goes back to my assessment of their sales and net income figures. Here again, I see indications that their spending has increased dramatically, which is having a negative impact on profitability. Since the soft drink industry is a high-volume, low-overhead industry, controlling and minimizing expenses is of paramount importance. I find this trend to be very troubling, considering PepsiCo’s sales haven’t stopped climbing, yet they are starting to lose their profitability. Should their sales dip, they will be very hard put to maintain themselves.

My company needs serious organizational change in two areas. First is improving our vendor payment processes. We have been having problems getting the funds to our vendors on time and sometimes paid them the wrong amounts due to our current process. This problem must be fixed for the future of our relationships with our vendors, suppliers, and contractor agencies. We must establish a change that will help repair and build the relationships and ensure the we also receive our merchandise in a timely fashion. The other area that needs to be improved is our company culture by means of employee evaluation. Currently, our employee evaluations are based on a numerical scale, measuring performance in a 1 to 5 basis. This leaves almost no room for improvement

John Everet will act as the playboy by displaying a lack of involvement through his

The net profit was $6,320 million in FY2010, an increase of 6.3% over 2009 ($5,946). As stated in the mission statement, they seek to produce financial rewards. With the numbers previously mentioned, we can see they have succeeded. This significant financial performance gives them the resources they need to provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate and to invest in the four key areas (performance, human sustainability, environmental sustainability and talent sustainability) so they can reach their goals. (Yahoo Finance, 2011) 4. Conduct a competitive and marketing analysis of the organization to determine strengths and opportunities. PepsiCo is the largest snack and non-alcoholic drink producer in the United States, with 39% and 25% of the respective market shares. PepsiCo operates in over 200 countries, with its largest markets in North America and the United Kingdom. PepsiCo has three direct competitors, the Coca-Cola Company, Dr. Pepper Snapple Group, and Kraft Foods. Unlike its major competitor, Coca-Cola, the majority of PepsiCo 's revenues do not come from carbonated soft drinks. In fact, beverages account for less than 50% of total revenue. Additionally, over 60% of PepsiCo 's beverage sales come from its key noncarbonated brands like Gatorade and Tropicana. PepsiCo 's revenues

Nooyi is an unconventional leader of high caliber. She revolutionized and maneuvered PepsiCo’ portfolio, increasing the company’s worth and market value. She is a smart risk-taker and a change agent. Early in her career, she restructured the company by making bold decisions. In 1997, she made a dramatic move to sell PepsiCo’s restaurant business and bottling division. She is a forward-looking leader who saw the change in consumer habits. She led the acquisition of healthy brands such as Tropicana, Gatorade, Quaker Oats and Naked Juice.[6] Nooyi entered corporate America at a time when strategic acuity was a commodity. She considers her strategic skill an asset and used it to capitalize on the economic downturn. During the recession, PepsiCo continued to reinvest and bought back its previous bottling divisions. By the end of the year, the company is estimated to gain $60 billion in revenues with over 300,000 employees worldwide.[7] Nooyi’s leadership helped improve PepsiCo’s corporate position today. PepsiCo currently ranks number

In 2000, PepsiAmericas merged with Whiteman Corporation and together they served 17 states in USA, 4 countries in Central Europe and several in Caribbean, which grew significantly by 2009. Its revenue too grew despite the economic challenges. They were in a good position technologically and financially. However, reaching there was not easy. Starting from 2001, PepsiAmericas started a process of significant IT enabled change initiatives in the organization at the same time building strong IT Business relationship. These changes led to the evolution of PepsiAmericas from a low tech regional business that shipped just drinks to customers, to an information savvy enterprise that delivered hundreds of SKU’s as required by the

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes twenty-two brands that generate more than $1 billion each in annual retail sales. PepsiCo’s main businesses - Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola - make hundreds of foods and beverages that are consumed throughout the world. It currently holds 36 percent of the total snack-food market share in the U.S. and 25 percent of the market share of the refreshment beverage industry. The products are classified under three main categories are “Good for You”, “Better for You” and “Fun for You”. “Good for You” category includes brands like Aquafina, Trop 50, Quaker Oats, Naked Juice, etc. “Good For You”

PepsiCo’s top four issues that they are hoping to influence are the food industry, agriculture, taxes and heath issues. I believe that they are interested in the food industry because they are a leading brand in the food and beverage industry, so it would only make sense that they put a lot of money towards this. Since they are a leader in the food industry they also care about the agricultural issues. They need corn, wheat, beans and other crops to make their products. They would want to have an influence on the rules and regulations that would be applied to their products. PepsiCo also cares about taxes. This one would be affecting the corporate tax that the company would have. These taxes could be quite high since they are such a large company. Lastly they tried to influence health issues, this is probably

In today?s business world, whether it be a local or global organization there must be change in women?s leadership. The change in women?s leadership at PepsiCo is a positive initiative. Strategic management suggested that change in any organization is expected, change is consideration based on the internal and external environment. The internal environment at PepsiCo with women?s leadership is present, but should be stronger. The women?s leadership initiative is vital and can be revolution to many other

Organizational Change Management is “all of the actions required for an organization to understand, prepare for, implement and take full advantage of significant change”.

Partially due to decreasing interest in colas by consumers, PepsiCo faces increased competition in the fight for market share in the cola industry. Pepsi and Coke have gone head to head for years, with Dr Pepper and other smaller brands running a distant third, but with a shrinking consumer base, companies are left to fight over the remaining consumers. PepsiCo has usually played a close second throughout the years, but continuing to invest in a dwindling industry is no way to achieve sustainable profitability. Increased investment would be a wasted effort mainly because of the brand recognition and loyalty that Coca-Cola enjoys. While Pepsi does have its own brand recognition and loyal customers, it is not to the same degree that it is for Coke. In the fight for the remaining cola consumers, it is not likely that Pepsi will win out after being in second

PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack

Many companies emphasize a culture of continuous improvement. While never being satisfied with the status quo can drive