Assignment on Benchmarking - Pepsico
Added on 2021-04-17
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Running Head: Benchmarking PEPSICO.Organizational best practice
Benchmarking 1IntroductionBenchmarking is a process which is used for comparing one business’ processes andperformances on the basis of standards set up by the industry with the other companies. Projectmanagement uses benchmarking in terms of planning, selection and delivery of projects. Mainlybenchmarking is done on the basis of quality of products, time taken and cost incurred.Outcomes are originated on the basis of comparison made amongst the other companies of thesame industry. In this report, PepsiCo’s benchmarking process will be discussed in relation withidentification of their market position. Its primary competitor is Coca-Cola and process of bestpractice benchmarking is done by analysing best firm’s processes and performances from thesame industry and from other industries under which same sort of companies exists andcompares the result obtained with the selected company. PepsiCo Inc. is beverage, food andsnack manufacturing company. Its headquarters are situated in Purchase, New York.Benchmarking is done for evaluating the position of the company in the industry in comparisonwith the best firms of the industry (Cooper, Silberstein, Tam, Ramakrishnan & Sears, 2010).It has been observed that PepsiCo Inc. has developed its effective position in its home countrybut apart from this, they do not have attained much success and growth in other parts ascompared to its primary competitor. In this terms, benchmark measures, analysis ofbenchmarking for PepsiCo, benefits for setting benchmarks, etc. will be conducted in this report.In the last part of the report, recommendations will be given with relevance with improving theprocess of benchmarking adopted by the organization so as to attain better and expectedoutcomes.
Benchmarking 2Selection of Benchmarks Benchmark is the criteria on which performance of organizations are being measured bycomparing its performance with other companies of the same industry. Best practicebenchmarking and process benchmarking are processes which are used by management whichshowcases the VEMR strategic management. Under this process, one company’s performancesare being compared with the best practice companies’ processes. Primary purpose of performingthis functionality is to evaluate the difference amongst the companies on various basis set up bythe management. With the help of this procedure, organization determines the areas in whichscope of improvement exists. Organization could adapt best practices in terms of improving itsperformance as well as to make the organizational performance as per the criteria and standardsset up in the industry on the basis of best practices. This process seems one-off event but forcontinuous improvements in the organization, it is necessary to conduct benchmarking processon rapid basis. PepsiCo Inc. has also adopted the benchmarking strategy in order to improve theirpractices so that they can beat its primary competitor in the international market (Zhu, 2014).PepsiCo Inc. is a multinational beverage and fast food item manufacturing company. Their majorareas of interests are manufacturing, distribution and promotion of their products in theinternational market as well as marketing under which market research and other types ofactivities are being executed (McCrory, Jung, Peters & Jaramillo, 2013). From this perceptive, itcan be evaluated that PepsiCo Inc. needs to follow benchmarks in every area with the objectiveof maintaining and improving its market image. Thus, the criteria for selection of benchmarks forevery department are unique and different. In terms of PepsiCo, criteria chosen for selecting theappropriate benchmarks are quality of their products; best practices defined and set up by thewhole industry, customer satisfaction, prices of the product, etc. (Gaieski, Edwards, Kallan &
Benchmarking 3Carr, 2013). This will help the organization to enhance its brand value as well as customersatisfaction which will ultimately affect their overall performance and position in theinternational market. While selecting the benchmarks, appropriate methodology is required to befollowed as below:Identification of problem areas: As benchmarking could be applied in any area or inany business process, thus, it is required to apply appropriate research technique in orderto determine the problems which need to be overcome. These techniques could be formalor informal communication methods with employees, customers, suppliers, etc. This willprovide an idea to the company in relation with the scope of improvement is required tocope up with the benchmarks (Sharma, Teret & Brownell, 2010).Identify the competitor’s processes: Primary competitor for PepsiCo Inc. is Coca-Cola,thus, it is necessary to analyse the difference between the processes of Coca-Cola andPepsiCo so that gap could be analysed. This could be done through consulting customers,employees, suppliers, etc. (Saygin, Worrell, Patel & Gielen, 2011).Survey: This is another crucial and effective technique which will help the PepsiCo todetermine their tastes, preferences, etc. Difference between the expectations of customersand the expectations fulfilled by the company will also be identified with this technique(Ronit & Jensen, 2014).Implementation of advanced business practices: From the above analysis andidentification techniques, organization will be able to determine all the gaps betweentheir practices in comparison with the competitors’ practices as well as with thecustomer’s excitations. Hence, it will be an easy task for PepsiCo to develop andimplement new and advanced measures so that benchmarks set up the management in
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