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HISTORY OF PEPSICO COLA

In 1893, Caleb Bradham, a young pharmacist from New Bern, North Carolina,
begins experimenting with many different soft drink concoctions. Like many
pharmacists at the turn of the century he had a soda fountain in his drugstore,
where he served his customers refreshing drinks, that he created himself. His
most popular beverage was something he called " Brad's Drink " made of
carbonated water, sugar, vanilla, rare oils, PepsiCo and cola nuts.

One of Caleb's formulations, known as " Brad's Drink ", created in the summer
of 1893, was later renamed PepsiCo Cola after the PepsiCon and cola nuts
used in the recipe. In 1898, Caleb Bradham wisely bought the trade name "Pep
Cola" for $100 from a competitor from New York, New Jersey that had gone
broke. The new name was trademarked on June 16th, 1903. Bradham's
neighbor, an artist designed the first PepsiCo logo and ninety-seven shares of
stock for Bradham's new company were issued.

1898 - One of Caleb's formulations, known as " Brad's Drink " a combination of
carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "PepsiCo-
Cola" on August 28, 1898. Pepsi Cola receives its first logo.

1902 - The instant popularity of this new drink leads Bradham to devote all of
his energy to developing Pepsi Cola into a full-fledged business. He applies for
a trademark with the U.S. Patent Office, Washington D.C., and forms the first
Pepsi Cola Company.

Additional information about PepsiCo World Headquarters

PepsiCo, Incorporated (NYSE: PEP) is a global American beverage and


snack company. The company manufactures markets and sells a variety
of carbonated and non-carbonated beverages as well as salty, sweet and
grain-based snacks, and other foods. Besides the Pepsi-Cola brands
(including Mountain Dew), the company manufactures Quaker Oats,
Gatorade, Frito-Lay, SoBe, and Tropicana. In many ways, PepsiCo differs
from its competitor The Coca-Cola Company, having almost three times

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as many employees and larger revenues (See comparison at Yahoo
Finance). The company formed for distribution and bottling is The Pepsi
Bottling Group (NYSE: PBG). PepsiCo is a SIC 2080 (beverage)
company.

PEPSICO IN PAKISTAN

PepsiCo, one of the worlds largest food and beverage companies, has offered
its products through independent bottlers in Pakistan for more than 40 years.
PepsiCo is offering lots of its brands in Pakistan now. Bottled water of
AquaFena is one the names which has started in Pakistan along with the
PepsiCo Cola, They have also launched ready snacks named KurKure,

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MISSION STATEMENT
Our mission is to be the world's premier consumer products company
focused on convenient foods and beverages. We seek to produce
financial rewards to investors as we provide opportunities for growth
and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive
for honesty, fairness and integrity.

VISION
"PepsiCo's responsibility is to continually improve all aspects of the world in
which we operate - environment, social, economic - creating a better tomorrow
than today."

Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder
value by making PepsiCo a truly sustainable company

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HR Introduction:

HR department follows the policies by the HR department of PEPSICO. At


PEPSICO, their belief is that "their people are their greatest asset. They take
great pride in acknowledging the contribution each one of them makes". They
focus on People Development and for that they ensure:

Staff PEPSICO with world class Professionals and ensure that the right
systems are in place to encourage them to develop to their full potential.

Create a collaborative and mutually supportive work environment that


encourages people to grow.

Build a team of professionals who deliver expertise by participating in


business decisions.

Develop Performance Management and reward systems underlying our


Business strategy.

HR Objectives:

To look out for the well being of all employees of the company.

Provide leadership and direction to employees of the company.

Career Development planning for all employees of the


company.

Ensure thorough training of nationwide employees.

To provide individual employees with orientation on the company at the


time of joining.

To provide employees with solutions to their problems.

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Maintaining data records of all employees of PEPSICO (Human
Resources information System).

To evaluate and retain those employees who are assets to the company.

HR Policies:

HR Policies are Friendly, conversant, flexible and congruent with


business environment.

Policies are legally compliant with clearly expressed processes for timely
revisions and a framework in place to foster employee adherence.

HR Information System

Development of interactive web-site aligned with all HR sub-functions to


facilitate communication between employee and organization through
dialogue boxes and speedy availability of information.

Enhancing overall perception of HR, as with the help of HRIS the


function of HR is changing direction and heading towards Relationship
Building, in this all the links are being recreated and employees are given
much more weight as compared to past.

HR PLANNING

HR plannings purpose is to determine what HRM requirements exist for current


& future supplies & demands of workers. The organization ensures that they
have the right number and kinds of people at the right place; this task is
accomplished by regular recruitment and selection, performance evaluation,
Promotions, Regular Training and development programs.

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JOB DESCRIPTION

Company Name: PEPSICO

Job Title: Assistant HR Manager

Job Code: 310-4

Salary: Rs.35000

Reporting Relationships:

Assistant HR manager reports to HR Manager, and then he reports to the HR


Secretary. Then all other HR people get information from the HR secretary.

Job Summary:

Manage the HR activities of the department. Plans and develops the systems
and procedures for recruiting. Supervises staff in accordance with companys
policies and procedures. Responsible for coaching and training.

Job Duties:

HR managers major duties include assisting the HR activities, for instance if


any recruiting procedure needs to be implemented then the HR manager is
responsible for it. HR manager in PEPSICO has to make some plans for
assigning duties to the employees

Recruiting and staffing logistics;

Performance management and improvement tracking systems;

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Employee orientation, development, and training logistics and
recordkeeping;

Assisting with employee relations;

Company-wide committee facilitation and participation;

Company employee communication;

Compensation and benefits administration and recordkeeping;

Employee safety, welfare, wellness, and health reporting; and

Employee services;

Maintaining employee files and the HR filing system;

Assisting with the day-to-day efficient operation of the HR office.

WORKING CONDTIONS:

Working conditions are normal for an office environment. Work may require
occasional weekend and/or evening work.

Performance Standards:

PEPSICO expects from its employees specific performance expectations for


each major duty and also expects certain behaviors like friendliness,
helpfulness, courtesy, and punctuality.

Job Specifications:

In PEPSICO the minimum job requirement for a HR Manager is Master degree


in HRM with relevant work experience,

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EMPLOYEE EMPOWERMENT

The company is giving more stress on employee empowerment by giving them


right to participate in decision making speacially those decision which directly
affect the employee themselves.

Also the company gives the subordinates the right to work on the behalf of its
supervisor in absence of him.

LABOUR RELATIONS

The company is paying more attention to strengthen the relationship among


employees by giving them equal opportunities to take advantage of the firms
incentives, because no biasness among employees is practiced in the firm
which affects the good relations among employees.

RECRUITMENT

PEPSICO employs through both formal and informal ways of recruitment.


Departments tell their need to HR department. And then recruitment is done on
the requirement by the project. All candidates send their CVs by post; they are
then short listed and called. So those candidates then report at the PEPSICO
from where they are sent to the Human Resource Department for further
interviews. But recently PEPSICO has devised a new way of recruitment i.e.
Online Applications. They give Ads in leading newspaper and use some other
mass media communication channels and then receive applications and CVs
online. In this way huge paper work is reduced and recruitment process is
improved in terms of efficiency and convenience with the use of technology.

Sources of Recruitment

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PEPSICO uses both Internal and External Recruitment. But the priority is given
to the internal if the employee has the capabilities, required by the management
for working on that post. In Internal recruitment they ask for employee referrals.
Any employee can refer any competent and potential person and if the referred
person comes up to their expectations and hired, then the one who referred is
rewarded with a bonus. In External environment the companys corporate
Image matters a lot in a way that not only new candidates are attracted but also
people who became a part of it in past.

Internal Methods

PEPSICO usually prefers Job Posting in which employees from with in the
organization are preferred but if the organization feels that the employee is not
competent enough then they go for external methods. Such announcements
are made through bulletin boards, memos and other internal sources.

External Methods

PEPSICO usually prefers advertising through newspapers and their official


website for their recruitment purposes. They give an open invitation to everyone
to apply, so people who are interested come and if they are capable enough
they are hired. They dont prefer any specific universities or colleges to get the
applicants, what matters are the potential talent and caliber of the person and
his commitment to work. Last year a scheme is started in which a team of HR
professionals visit different colleges and universities to recruit fresh and
passionate candidates.

Strategies for Recruitment

The recruitment process is likewise the same but minutely varies in the
organization depending upon the ranks. In recruitment PEPSICO keeps certain
things in front e.g.

What the person was getting (in terms of salary) prior to PepsiCos Job.

Whether the person is polished enough to adjust in their environment.

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Whether he or she has the required technical skills or the required
qualification for that specific job.

In PEPSICO they surely see qualifications but they prefer a person with
required skills, aptitudes, experience and capabilities.

SELECTION

In PEPSICO, selection Criteria is based on numerous factors such as


education, health, background and previous experience.

Selection process

1. The Application

The employment application is candidates first chance to present his


qualifications to the Organization. As such, it is extremely critical for his/her
continued participation in the examination process. Before beginning, one has
to review thoroughly what the Job Announcement specifies as the requirements
to qualify for the position. Candidate must meet these criteria to be considered
for the position; ensure that, otherwise candidate will be wasting his effort in
completing the application. Most entries on the form are self-explanatory, but a
few pointers on filling it out may help

2. Written Exams:

Written exams are usually obtained from one of several test construction firms
available to them. These tests are designed to determine level of technical
and/or analytical abilities associated with the particular position for which
candidate had applied. The test which is conducted in PEPSICO selection
purpose is TEST OF COGNITIVE ABLITIES. This test is mostly taken from
fresh graduates. Whereas, some people are selected on the basis of
experience.

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3. Performance Exams:

Performance exams test ability to accomplish specific job-related tasks by


providing the opportunity to actually perform them. These tests are scheduled
through the Human Resources Department office, with notification in writing of
the date, time, location and duration of the test. Instructions will be given on the
tasks to be completed and then asked to complete them. Individuals with
considerable relevant experience will conduct the evaluations. Safety, quality of
work, adaptability, performance under stress, etc. are evaluated.

4. Specialized Testing

Some positions will require specialized testing, such as technical skills, agility
and communication skills etc. These tests are scheduled just as like other tests.

5. The Panel Interview

The results of this component of the exam process will be used to determine if
candidate should be included on the List of Eligible Candidates forwarded to the
hiring authority for consideration for a departmental Selection Interview.

This portion of the examination is normally weighted 100% (or as indicated on


the Job Announcement). Typically, previous test results are used only to qualify
you for participation in the Panel Interview.

The Panel is comprised of qualified individuals, which may or may not be


employees of the City. Normally, the panel will consist of three evaluators.
These individuals will evaluate responses to a variety of job-related questions
over the scheduled time period.

6. The Selection Interview

Once the List of Eligible Candidates is established it is sent to the


Department(s) that is hiring to fill a current vacancy. The Department Head is
responsible for setting up Selection Interviews. He/she may interview anyone
on the list, since all persons referred to the department are qualified. The
Department Head will be looking for the candidate with the best qualifications

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for their particular position. The candidate selected to fill the vacancy will
undergo a medical examination, drug screen, background investigation, and a
probationary period before attaining permanent employment status.

TRAINING & DEVELOPMENT


PEPSICO has trained and developed many of its senior and fast track
managers and supervisors. For lower and technical staff the organization have
a complete training calendar for the year, if organization thinks and feel that an
employee requires training to update his knowledge about the field, he just
have to report the HR department and he will be listed for the next training
program.

On-the-job Training:

As compared to other competitive organizations the training program of


PEPSICO is quite different. It provides full opportunity to its employee to
develop themselves and also train them according to the requirements of their
job. In return they will be greatest asset for their organization. The employee is
being trained in many ways while they are on job.

External sources

These are formal training opportunities that PEPSICO offers to employees


either internally or externally. A trainer, facilitator and/or subject matter expert
are brought into the organization to provide the training session or an employee
are be sent to one of these learning opportunities during work time. These
training opportunities are provided in the form of seminars, classroom training
courses and workshops.

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PERFORMANCE APPRAISAL
The jobs are evaluated on yearly basis under 360o method; the competent
employees are rewarded in shape of promotions, bonus, increments and annual
holidays and promotion. The results of an appraisal can be used to identify
areas for further development of the employee.

The organization also uses different questionnaires, which consist of numerous


questions about the behavior of the employee, and then on the basis of these
answers personality of the employee is judged.

When evaluation is made the unsatisfactory performers are given warning. The
employee after warning is put under observation, for some period of time and if
the employees performance is still unsatisfied then are demoted or fired.

COMPENSATION & BENEFITS


Promotion

Promotion is direct shift only to the next level from the current grade, the
employees performance is evaluated and if his performance is above average
he is given promotion. PEPSICO promotes only those candidates who are
experienced and eligible for that particular vacancy.

Increments

The company decides at the end of the financial year, according to its financial
condition, whether increments should be given or not.

Free transport

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PEPSICO provide free transport to local employee.

Medical facility

PEPSICO provide free medical facility to workers depending upon the


position/rank of the employee.

House loans:

They give the facility of house loan only to deserving individual. The loan
approval depends upon the post of the employee.

Overtime payment:

Overtime payment is pay for only those workers who are working more than
their working hours mostly overtime payment is given to low level staff.

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SWOT ANALYSIS OF PEPSI IN PAKISTAN
A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and
Threats and is a simple and powerful way to analyze your company's present
marketing situation.

STRENTH

1. Company Image:

It also is a reputable org. and is well known all over the world. Perception of
producing a high quality product.

2. Quality Conscious:

They maintain a high quality as Pepsi Cola International collect sample from its
different production facilities and send them for lab test in Tokyo.

3. Good Relation with Franchise:

Throughout its history it has a good relation with franchisers working in different
areas of the world where they have the production facilities.

4. Production Capacity:

It has the highest production capacity i.e. 60,000 cases per day is not only in
Pakistan but also in South Asia.

5. Market Share:

It has a highest market share i.e. 62% in Pakistan and leading a far step head
from its competitors.

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6. Large No. of diversity businesses:

This is also its main strength as it ahs diversity in many businesses such as

i. Pepsi beverages

ii. Pepsi foods

iii. Pepsi Restaurants.

7. Knowledge:

Our competitors are retailers, pushing boxes. We know systems, networks,


connectivity, programming, all the VARs, and data management.

8. Relationship selling:

We get to know our customers, one by one. Our direct sales force maintains a
relationship.

9. History:

We've been in our town forever. We have loyalty of customers and vendors. We
are local.

10. High Tech Culture:

The whole culture and business operating environment at Pepsi-Cola-West Asia


has quick access to a centralized database an they use computers as business
tools for analysis and quick decision making.

11. Sponsorships:

They mainly use celebrities in their advertising campaigning like Imran Khan,
Wasim Akram, and Waqar Younas etc. Also sponsor social activates programs
like music etc.

WEAKNESS
1. Decline in taste:

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During the last years, it was published in Financial post that there has been big
complaints from the customers with regard to the bad taste that they
experienced during the span of six months.

2. Political Franchises:

Such as in Pakistan, Hamayun Ahkhtar is its franchisee who has a strong


political support from a political party which is in opposition. In; their era in
government less taxes are imposed on them but relation increases as they
come in opposition. So the selection is not appropriate as this thing is harmful
to their image as well as the strategies.

3. Short term Approach:

They have a lack of emphasis on this in their advertising such as currently


when they losses the bid for official drink in the 96 cricket world cup. They
started a campaign in which they highlight the factor such as nothing official
about it.

4. Weak Distribution:

They lack behind in catering the rural areas and just concentrating in the urban
areas.

5. Low consumer knowledge:

Unable to maximize local consumer knowledge.

6. Lack of soft drink:

Lack of soft drink know-how as a result of diversified business units and


generalist managers

7. Costs

The chain stores have better economics. Their per-unit costs of selling are quite
low. They aren't offering what we offer in terms of knowledgeable selling, but
their cost per square foot and per dollar of sales are much lower.

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8. Price and volume

The major stores pushing boxes can afford to sell for less. Their component
costs are less and they have volume buying with the main vendors.

9. Brand power

Take one look at their full page advertising, in color, in the Sunday paper. We
can't match that. We don't have the national name that flows into national
advertising.

OPPORTUNITIES
1. Increase Population:

As almost in all over the world growth rate is increasing which in turn increases
the demand of products and necessities and especially in Asia the market is
growing at a faster rate as compare to other continents. So they have to attract
new entrants.

2. Changing social trend:

As in all over the world people are rushing towards fast food and beverage
because of life which has become much faster, it provide the company a favor
to capture this fast moving market with its take away product.

3. Diversification:

They may enter in garments business in order to promote their brand mane, by
making sports cloths fro players which represent their name by wearing their
clothes.

4. Distribution of snack foods:

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Opportunity to distribute Pepsi snack foods in the future.

THREATS
1. Imitators:

They also have a problem of imitators as receives complaints from customers


that they find take product in disguised of Pepsis product.

2. Government Regulation:

They face problem if government employ taxes on them which force them to
raise the price of their product.

3. Corporations shortage problem:

Again this is also a serious threat from it suppliers as if supplier is unhappy with
the company. He may reduce the supply and exploit the company. This action
will surely affect the production process.

4. Non-carbonated substitutes:

Non-carbonated substitutes, such as juices and tea brands are maintaining a


strong foothold in the market.

5. Political instability:

The big threat to Pepsi in Pakistan is Political instability and civil unrest.

6. Threat of labor strikes:

External threat of labor strikes and power outages in Pakistan.

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CONCLUSION

PepsiCo a name of standard and quality product. PepsiCo is stressing more on


its short term planning strategies to make its image good enough in the world
community. And is stressing more on the customer services and health and
nutrition factors. It has a strong management to keep the PepsiCo on the height
of professionalism and commitment to quality. Management functions have a
strong impact in the PepsiCo. The management of the PepsiCo does not
compromise on the quality and the values to be followed. This way the
company is prospering by accelerating its functions in a well mannered way.

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