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Strategic implementation Student’s name Professor’s name Institution Course Date
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Organization’s vision statement, current goals and objectives In any organization, there are various activities that contribute to execution of its strategic plans. PepsiCo Company describes this well. Being one of the largest beverage and food companies globally, PepsiCo is guided by a vision known as, Purposeful Performance (Wit & Meyer, 2010). Its aim is to deliver top performance financially in a long term by applying integration into the business strategy, leaving an imprint that is positive on environment and the society. This vision requires creation of products that meets the standard requirements of the consumers and that the employees can proudly sell. This starts with what the company makes that range from variety of beverages and foods that are indulgent and more nutritious. It goals is to extend how the products are made taking into consideration need for conservation of natural resources and being responsible environmentally in and past its operations (Davis,2010). It considers those making them by trying to support communities surrounding it and development of careers for talented PepsiCo employees.
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Organization's current status PepsiCo is headed by Indra Nooyi who is the CEO as well as the chairperson of the company. She is among the world’s top executive. This is because PepsiCo is the second- largest beverage and food enterprise in the world in a time of unusual change (González & Harris, 2013). The company has presidents, vice presidents and executive officers leading several sections and regions of the company. These sections include communication, nutrition, finance, human resource, global supply operations, talent training, management and development, global development and research and global franchise and categories management. The affairs and strategies of the business are overseen by board of directors comprising of single executive director and fourteen independent directors. The independent directors are the only ones who make up the existing board committees of the organization. These are Corporate and Nominating Governance, Compensation and Audit (Wit & Meyer, 2010).
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To ensure effective management of the company, PepsiCo has been organized into market divisions, global hierarchy and functional corporate offices/ groups. Market divisions are the most prominent characteristic of the organizational structure of the company. These divisions are centered on two variables: geography and business. In regards to business, PepsiCo’s upholds one universal division designed for Quaker foods and another for Frito-Lay. In regards to geography, the company contains divisions for Europe, Americas and other regions. T he organizational structure of PepsiCo has the following market divisions; Frito-Lay, Pepsi Company Americas Beverages, Foods of Latin America, Quaker Foods, PepsiCo Europe, Middle East, Asia and Africa (Davis, 2010).
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Functional Corporate Offices/ Groups as a characteristic of the organizational structure of PepsiCo refer to basic functions of the business. The company has corporate or global offices for these roles. PepsiCo’s aim in having these functional offices is to ensure rapid implementation of strategies and policies as well as corporate control. These offices are headed by Vice President. The main functional offices or groups at PepsiCo are, Global Operations and Categories, Global Development and Research, Human Resources, Government Legal and Affairs, Finance, Communications and Talent Training, Management and Development (Wit & Meyer, 2010).
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The organizational structure of PepsiCo similarly features a hierarchy spanning the global organization. This hierarchy mainly supports control, monitoring and governance at the corporate or global level. Considerable hierarchy has been maintained by PepsiCo for top-down monitoring, control and communications. This organizational structure feature also provides a way through which the company minimizes deviances from its strategies and policies. The company has about 274000 employees working in different regions of the company. These include all contract employees and anyone whose roles and duties are recognized by the organization (Cummings & Worley, 2009).
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SWOTT analysis SWOT analysis of PepsiCo indicates that, currently, it is the second biggest company in global beverage and food market. This is based on the company’s ability to employ its strength to continuously grow despite levels of increased market saturation. This analysis shows that, PepsiCo has the ability to continually grow and reach the highest position in global beverage and food industry. The analysis framework pinpoints the opportunities and strengths that the company can tap to tackle its business threats and weaknesses. As a global organization, PepsiCo must consider the issues addressed in SWOT analysis to reduce barriers to its performance globally (Davis, 2010).
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Most recent financial results The latest financial results of PepsiCo firm shown in the annual statement indicates gross profit to be $ 34,672,000, revenue as $28,384,000 and the total revenue of $ 63, 056,000. The dividends adjusted and reinvested for stock splits recently are $43,000 and $8.7 billion was returned to shareholders in the form of share repurchases and dividends. In productivity savings, $ 1 billion was delivered (Wit & Meyer, 2010). Competitor benchmarking PepsiCo’s greatest competitor is Coca-Cola Company. This Company has recently seemed to be unable to defend its position in the market against PepsiCo’s attacks even if it highly depends on the beverage market. This has been highly contributed by PepsiCo’s moves of introducing new market products. PepsiCo is highly gaining and earning a lot of profits while the Coca-Cola Company’s profits are falling as well as its fortunes. The Coke’s company is trying to curb the challenge through heavy advertisement aimed at supporting existing brands and by the introduction of also new products.
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Strategic recommendations to the board of directors As one of the strategy to improve the performance of the company, the board of directors should be always made aware of the company’s vision which is, ‘Purposeful Performance’. This means that the directors should ensure that the company provides variety of beverages and foods that meets the healthy standards of the consumers. They should be also find the innovative ways aimed at minimizing the impacts of the company’s operations to the environment while reducing operation costs. The directors should also ensure that, the employees are provided with inclusive and safe workplace for the personnel globally. Moreover, they should ensure that there is support and investment for the local communities (Cummings, & Worley, 2009)
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The directors should aim at building a company that will continue thriving and growing in the future. They should ensure that brands continue generating billions of retail sales annually. The board should ensure that, there is high constructive engagement between them and the employees so as to discuss the company’s strategic priority. This includes more improvement and production of quality products in the company that will take it to the top position globally in production of beverages and foods (Cummings & Worley, 2009). The current CEO of PepsiCo is Indra Nooyi. She was born in India in 1955 but she is a naturalized American. She is well known for Pepsi soft beverages. She is leading this global largest beverage and food Company. She is among the top executives in U.S that are female. Indra studied at Madras College in India where she graduated with a degree in physics, chemistry and math. She did her masters in Indian Management Institute and graduated with M.B.A (González & Harris, 2013).
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Indra’s first job after graduation was working in a textile company that belonged to British. After that, Indra worked as brand director Johnson’s Bombay offices, individual-care products. From her determination to study in U.S she applied and she was accepted in Yale University in New Haven where she studied her second master in private and public management. After completing in 1980, she worked in a consultation firm in Boston for six years when she moved to Motorola in 1986 as senior executive and worked for four years. In 1990, she moved to Asea Boveri Inc. and worked for four years. In 1994, she was offered a job as chief strategist of PepsiCo. In this company she managed to advise PepsiCo to change the assets and identity of its brand and also influenced various decisions.
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At PepsiCo, Indra has been the greatest chief dealmaker. She led the company to be the largest food deals in history and introduced a huge range of products in the company. Moreover, she took part in deals that beat her Coca-Cola competitor. Her remarkable deal making talents earned a promotion to financial officer at PepsiCo in 2000. A year later she became the president and financial officer in the company and contributed to the company’s sale of variety of beverage and food products (González & Harris, 2013). In 2006, Indra became PepsiCo’s CEO, a post that perfectly suited her. This is because she led the company into being second largest beverage and food enterprise in the world. She has always worked towards ensuring that the company produces drinks and snacks by being health conscious. She is possesses qualities such as being bold and perfectionist (Ackenzie, & Rosenberg, 2007). These have enabled her to confidently make the right decisions for the company.
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Furthermore, Indra’s vision was to take PepsiCo to the level of being the largest beverage and food Company globally. She also intended to make the company produce products that met the desired health standards of individuals. Moreover the CEO has made innovative accomplishment in the company in that, she has invested greatly in research as well as development. For instance Pepsi is developing a potato chip that is 3-D. The chip is designed in such a manner that, it is more efficient to use as it aims at producing quality products in a timely manner. In addition, the design, cutter and the mouth of the potato chip form the several layers of IP hence meeting technological standard of its use (Cummings & Worley, 2009). This is a great boost to the company as it enables it to produce products that are of high quality as well as meeting the health standard of the consumers.
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References Ackenzie, M. L., & Rosenberg, S. L. (2007). Emerging business theories for educators and practitioners. Newcastle: Cambridge Scholars Pub. Cummings, T. G., & Worley, C. G. (2009). Organization development & change. Australia: South-Western/Cengage Learning. Davis, J. (2010). Competitive success: How branding adds value. Chichester, West Sussex, U.K: John Wiley González, A., & Harris, T. M. (2013). Mediating cultures: Parenting in intercultural contexts. Lanham, Md: Lexington Books. Wit, B.., & Meyer, R. (2010). Strategy: Process, content, context ; an international perspective. Andover, Hampshire: Cengage Learning.
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