4.

Decision Criteria and Alternative Solution

a.

Design of Goods and Services. The objective in this strategic decision

area of operations management is to match goods and services, organizational

capacity and market demand and preferences.
For example, PepsiCo to offering a broad array of choices for healthy,
convenient, and fun nourishment, reducing our environmental impact, and
fostering a diverse and inclusive workplace culture with a new approach to
segmenting its product line: fun-for-you products such as Pepsi, Doritos, and
Mountain Dew; better-for-you products such as Baked Lays and Propel water,
with levels of fat, sodium, and sugar in line with dietary-intake recommendations;
and good-for-you products such as Gatorade, Quaker oatmeal.
The decision criteria should be measurable and should be within scope of the
problem you are trying to solve. For this solution, the criteria are as follow:
1.
2.
3.
4.

Employee morale
Cost
Return of investment
Risk Level

Evaluate the Pros and Cons.

1.

Pros
(a)
(b)
(c)

2.

High morale of employee

Increase customer satisfaction
Variety product

Cons
(a)
(b)

Increasing cost in develop new product

Customer perception of new product. Good/bad?

b.

Product and Service Quality. This strategic decision area has the

objective of optimizing quality based on business and consumer expectations.

PepsiCos operations management aims to provide the highest quality products
under the companys Performance with Purpose goals.
For example, new PepsiCo products are usually improved variants, such as lowcalorie Pepsi products and less-salt Frito-Lay products.
The decision criteria should be measurable and should be within scope of the
problem you are trying to solve. For this solution, the criteria are as follow:
1.

Increase in customer satisfaction

2.

Similarity to existing organization products

3.

Flexibility

Evaluate the Pros and Cons.

1.

2.

c.

Pros
(a)

Increase profit

(b)

Increase customer

Cons
(a)

High cost in advertising

(b)

Customer perception of new product. Good/bad?

(c)

Challenges to influence the new customers

Attracting and Retaining Customers. Companies are seeking to expand

profits and sales by invest in time and resources searching for new customers.

To generate leads, PepsiCo advertise in media that will reach new prospects
(Millennial).
For example, campaign website went live on January 13, 2010. It was the theme
that united all the activities of the brandone voice, one project.
The decision criteria should be measurable and should be within scope of the
problem you are trying to solve. For this solution, the criteria are as follow:
1.
2.
3.

Increase in sales or market share

Cost saving
Target group. Urban/rural.

Evaluate the Pros and Cons.

1.

Pros
(a)
(b)
(c)

2.

Increase profit
Increase customer
Customer loyalty

Cons
(a)
(b)
(d)

High cost in advertising

Customer perception of new product. Good/bad?
Challenges to influence the new customers