Assignment on PepsiCo PDF

INTRODUCTION
PepsiCo is a large company dealing with food, snacks and beverages; it is approximated to be
worth $39 billion and has employed 185, 000 employees. The company comprise of three main
divisions located in Latin America, North America and its international subsidiaries.. The
management and operation assignment will discuss the roles and responsibilities of managers
and leaders in product development and productivity of the company. Tasks include research on
Apple, the manager's function, and the factors that affect the business environment.
The key approaches to operations management and the role that leaders and managers
play
●Design of Goods and Services: This function is to manage activities to match food and
beverage services, consider organizational capacity, needs and preferences of the market.
Managing sales and marketing must be through market research and product innovation.
Such as consumer lifestyles, these steps are intended to define the future direction of
PepsiCo.
●Quality Management: This function helps to optimize quality based on business
expectations. Managers must be responsible for providing the highest quality products
with the company's "sustainable human development" criteria. So new products are often
improved, like low-calorie Pepsi or low-salt food products the activities of the sales and
marketing director, such as market research on modern trends. And these are intended to
determine the future direction of PepsiCo products.
●Process and Capacity Design: They aim to maximize the productivity rate of the
operations management process. The production facility is designed in a high-volume
assembly line. and many processes are also automated for optimization.
●Location Strategy: The company has multiple company-owned and partner-owned
facilities, the way it is managed to operate in such a way as to maximize the reach of the
target markets. Managers must distribute retailers evenly throughout the region, and pay
special attention to areas with high volume of sales.
●Job Design and Human Resources: Manage their human resources through a combination
of the global corporate HR management approach and the HR department approach to
ensure workforce adequacy for the organization.
● Supply Chain Management: This field belongs to the Production Department Manager,
they optimize the supply chain to meet the demand for raw materials and intermediate
products. With that approach they diversify and distribute their supply chains to each
market.

●Scheduling: Facilities and human resource schedules are a primary concern in the
strategic decision-making field of operations management.
●Maintenance: PepsiCo's maintenance process is varied, as it is based on many of the
company's marketed products. This area of operations management determines the
strategic focus of the workforce and other resources that grow with the business.
The key operational approaches to operations management and their value.
•Total Quality Management (TQM): This is a system that shows that all employees of the
company are committed to maintaining high standards in the activities of the
organization.
• Just-In-Time (JIT): This strategy is applied by PepsiCo to inventory. It helps the
company increase revenue efficiency and reduce product waste by receiving only the
goods needed for the production process.
• Continuous Improvement (Kaizen): For the food industry like PepsiCo in particular, they
need to make continuous improvements such as products, costs, packaging, and sales
strategies to keep up with the trends.
•Six Sigma: Six Sigma emphasizes on cycle time improvement and reducing the
manufacturing defects.
•Lean Production: Lean Production is about doing more with less by employing lean on
thinking.
The role that leaders play in operations management:
●The operations of the food production process are always rigorous so a person in charge
must not only boost the productivity of workers in keeping the hygiene, but they must
also check carefully.
●Leaders always give employees a best goal to work towards the standard of the product
they are doing.
●A smart leader will always encourage and create opportunities for employees to support
them in the process of achieving company goals.
The role that managers play in operations management:
●The main function of operations managers is to specifically plan and supervise for
employees.
●They operate the process of production, acquisition, development and supply of goods
according

to customer needs and products that are suitable for the company's capabilities.
The company’s external business environment factors
Pepsi is a well-known company. It has distributor all around the world. Are there any factors that
make Pepsi successful? First, we will discuss the external environment of Pepsi. Then, we will
discuss how the factors of general environment and specific environment influence each other.
External environment is divided into general environment and specific environment. General
environment includes economic, socio-cultural, technological, and political, customers,
competitors and suppliers.
There are many external factors that can be seen, but we will only focus on the special factors
that make PepsiCo difficult.
•Socio-cultural factors: It have influenced customers and competitors. In terms of health,
drinking soft drinks is very harmful and causes many diseases such as obesity, heart
disease. So following the needs of customers, the company produced "Diet Pepsi" with 0
calories, which attracted a lot of customers. To compete with Pepsi, Coke also launched
such a product, but Pepsi has partly contributed to promoting this social and cultural
development such as sponsoring the US National Football League since 2005. 2002 to
2011. In addition, Pepsi also invited David Beckham and Lionel Messi to advertise their
products. After customers recognize Pepsis' contributions, they will have a good
impression of Pepsi and continue to support the company.
•Technological factors :Next is the technology factor that has influenced its suppliers.
Due to the growing beverage market, the company had to maximize the number of
products. They decided to install 4 new lines, which can fit 1200 bottles per minute faster
than the old equipment. Due to the development of changing technology, Pepsi's
suppliers are more satisfied when providing more ingredients.
•Economic factor: Due to the business cycle, inflation changes in product demand. In
1931, during the Great Depression, the high price of sugar caused Pepsi to suffer huge
financial losses and go into bankruptcy. As a result, they lowered the price of the product,
resulting in increased demand for Pepsi and expanding the market. The Great Recession
changed Pepsi's customer type, the discount being cheaper than Coca-Cola made people
in difficult times more inclined to go for Pepsi because it was cheaper.
•Political factor: Undoubtedly such unhealthy and sugary drinks are very influential to
the regulatory authorities. As a result, the government has established numerous laws to
monitor the composition of all beverages, and to standardize a maximum of 5 ppb of
benzene levels for all beverages (Ahmed, 2007). Pepsi had to remove some of its
products from stores and refund customers. Therefore, the company has lost faith in
customers, especially nowadays, the adults are also more conscious of their health.