GOOD afternoon

A CASE STUDY
ON

PRESENTED BY :
SaHNAZ YASMIN KHAN MOONMOON CHAKRABORTY RUBI DAS GARIMA adhikary RAKIBUDDIN AHMED

INTRODUCTION
Change is inevitable and continous process. Change is of 2 types, one planned and the other unplanned. Technological forces , Economic forces, regulations and stakeholders needs are may the reasons for change in an organization..

To sustain in the industry PepsiCo too had to implement certain changes.

 Pepsi, an American Company, is based in New York It manufactures snack food, beverages and other products. The company was established in 1965.

 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 in the world in terms of revenue. The company generated over $1 billion in 2009 from each of the 19 product line. In total the company generated revenue of $43.3 billion

The company has not been able to meet the needs of its stakeholders (i.e. customers and employees

A. CUSTOMER RELATED PROBLEM

> CUSTOMER HEALTH

B. EMPLOYEE RELATED PROBLEMS

ii). EMPLOYEE RECRUITMENT AND PROMOTION ISSUES

i). DIVERSITY ISSUES

PROBLEM 1: a. customer related problem

HEALTH 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 their customers. 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.

PEPSICO SOLUTION UNSUCCESSFUL :

1. The company has modified its products. 2. 3. 4. Examples - Diet Pepsi, Pepsi max. The products are different from Pepsi. Though the company has managed to change its products, it does not meet the needs of all its customers.

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 to manage the workers well.

PEPSICO SOLUTION UNSUCCESSFUL :

1. The company has a DIVERSITY TRAINING PROGRAM 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 to create 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.

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 longer acknowledge cultural beliefs and values displayed by other people.

PROBLEM 3: b. EMPLOYEE RELATED PROBLEMS:

ii. Recruitment and promotion problem :
1. The recruitment and promotion of employees in the 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).

The problems identified above might impact the success of the company in future. The problems of the company will not only make it suffer in terms of consumers but will also affect its shares and sales in the market.

What would have you done , had you been the manager of PepsiCo?

There are various methods to overcome the problems and attain its goals: ( i.e. Organisational and Structural changes)

1. Changing Organizational culture.

2. Changing Human resource policies 3. Improving the product offered.

1. The organization should change its culture. 2. There are different kinds of organizational culture like weak culture and strong culture.

STRONG CULTURE 1. 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 because employees 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.

WEAK CULTURE 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 other employees.

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 diversity if it has a strong culture (Green &Cameron, 2004).

Change the human resource practices and policies in the organization.

Human resource managers are also responsible for development of the workers and maintenance of diversity in the workplace as they are responsible for hiring and promotion. Every applicant in the organization should be able to get an opportunity regardless of the origin of the person or his color and race.

1.

The organization should change the products it offers to customers.

2.

Different customers in the company have different needs. The company should identify its market segments well to develop products that meet the needs of clients in that particular segment. The company should ensure the amount of sugar and salt in the foods and beverages are moderated.

3.

4.The company should give customer health a priority and develop products that are inline with their needs.

5. Also, changing the products will give the company a competitive advantage and make it easy to compete with various competitors in the industry.

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

Step 3 : Managers should identify a clear vision that anyone can understand.

Step 4 : They should communicate the vision to the employees. This will make 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 the implementation 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.

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 early and 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.

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 in implementing change .

The leaders should develop clear visions that employees can understand so as to implement change .

The leaders should have good communication skills .

The leaders should inspire other people including employees and other stakeholders . The leaders should involve other people in the change process so as to motivate them and thus implement the change . The leaders should have good problem solving skills to be able to identify problems and develop solutions .

Apart from having the skills listed above, leaders should use the right style when implementing change .

PepsiCo faces various issues that have affected profitability and productivity in the company. The issues have also influenced its market share and competition. Example of the issues in the organization are diversity issues, hiring and recruitment problems and not meeting customer needs as expected. The company should change its organizational culture by embracing a strong culture so as to overcome the issues. It should also change the products 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 the employees and other stakeholders in bring change so as to implement change effectively and maintain it (McGuire &Leonard, 2007).

THANK YOU