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Management Theory and Prictices

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Added on  2020-03-01

Management Theory and Prictices

   Added on 2020-03-01

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qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasMANAGEMENT THEORY ANDPRACTICES[Pick the date]STUDENT NAME
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MANAGEMENT THEORY AND PRACTICES 2INTRODUCTIONAmong few organisations being in the news during the last two years is PepsiCo which is a multinational company dealing in food and beverage.[ CITATION Ada17 \l 1033 ] It is one of the most popular American MNC whose headquarters is situated in Purchase in New York. Sinceits foundation in 1903, it has grown enormously gaining much reputation with strong market portfolio[ CITATION Sha14 \l 1033 ]. It supplies food, snacks, fruit juices and beverages to more than 200 countries. The history of PepsiCo began in New Bern, North Carolina, in 1896.Caleb Bradham was a pharmacist and industrialist who founded the recipe of famous Pepsi and under its namesake was able to expand its venture across the globe. The company had made many acquisitions and mergers one of which was famous and was all over the news in 1965 when it merged with Frito Lay and named the soft drink Pepsi-Cola. Again in 1998 another successful purchase was made by the company, Tropicana, following with another merger of Quaker Oats in 2001[ CITATION Pep171 \l 1033 ]. Holding the second position worldwide in food and beverage business, the company is owner of chief brands like KFC, California Pizza Chicken, Taco Bell, Wilson Sporting Goods, Pizza Hut, etc. Under the management of Indra Krishnamurthy Nooyi, CEO of the company, the organisation has reached to new highs and is successful in employing more than two hundred and seventy fourthousand satisfied people globally[ CITATION Pep17 \l 1033 ]. Though there are many challenges met by the company, but with strategic management and proper analysis, PepsiCo is able to overcome them with ease and have been able to survive in the market with reputation. The vision PepsiCo declare is to become world’s top company dealing in food andbeverage. To achieve the goal of becoming first in position, the company follows a strategy to provide value to customers through product diversification and for that constant mergers and acquisitions is been made by the company in order to make a wide range of product portfolio. The corporate strategy provides customers with different quality products
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MANAGEMENT THEORY AND PRACTICES 3according to their preferences which have made PepsiCo recognised as a strong brand and thepattern company follows to come up with new products, helps in maintaining their competitive advantage. [ CITATION Jan10 \l 1033 ]THEORITICAL CONCEPTS OF STRATEGIC MANAGEMENTThe concept of strategic management has developed gradually, and the role of intellectual management with practical reasoning has helped in concluding with carving out its own role by means of theoretical concepts in business.[ CITATION Bra02 \l 1033 ] Management uses several concepts and theories to associate the performance of employees with those of organisation’s management. Selecting theoretical concepts to strategic management is a major task as in a competitive and unstable market, the objective of strategy engages to prepare the organisation to tackle the unreceptive environment and to sustain the same requires appropriate management operations.[ CITATION Eme \l 1033 ] It also allows the management to perform systematically and helps in attaining the core object to organise the skills, recommendations, and internal resources of the company. In order to apply theoretical concepts to strategic management, the theory is needed to be examined so that it can be applied to the organisation to provide assistance in gaining sustainability and growth. In orderto evaluate the strategy PepsiCo follows, theories like SWOT analysis, PESTLE analysis , and Porter’s five force analysis is been used which will help in understanding the policies andframework of the company with which it has made the company an example of sound strategic management in planning and organising.[ CITATION RIC14 \l 1033 ]SWOT ANALYSIS THEORY IN STRATEGIC MANAGEMENTSWOT analysis is a framework which allows the managers to amalgamate internal resources of the company. Strengths and weakness in them forms a basis for analysis of threats and opportunities of external sources. It is an initial method followed by managers in which
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MANAGEMENT THEORY AND PRACTICES 4collection and evaluation of information about external and internal data is made. [ CITATION Str17 \l 1033 ]It is one of the most important parts of strategic management planning process as great number of issues in the internal and external part is found and leads way in which it can be sorted[ CITATION Jof11 \l 1033 ]. Internal strengths and weakness of the company can bemanaged by organisations, while external threats and opportunities are only reactions of anticipation or regression due to them. The major benefits of SWOT are that it is simple to use and has practical nature which makes it clearly understandable which is why used in mostof the organisations. It focuses on internal and external factors which affects the company directly or indirectly and thus helps in identifying goals. Threats and opportunities are uncontrollable factors which usually arise due to variation in the macro environment or competitor’s actions. While opportunities represent external conditions that bring competitiveadvantage if recognised properly, threats may harm the company if not avoided or defended appropriately. This SWOT analysis illustrates PepsiCo’s position which has grown and reached top position in global market. Also this framework will provide PepsiCo to analyse issues and ways to minimise obstacles in its performance.[ CITATION Str17 \l 1033 ]PepsiCo attains one of the major brands in the global market and has achieved in gaining attention of the customers by launching new and innovative products. Few examples of its successful brands are Quaker Products, Pepsi Products and Frito Lay Products, which have been able to capture the entire food market with prominence. The strength of the company lays in effective and advanced global production and supply chain which has made PepsiCo an example of well established company in managing international growth and expansion strategy. Since large number of its operation is limited to the area of its main hub i.e. North America and South America, out of its total revenue 70% is observed from it and thus shows its weakness in internal strategic management. It shows that the company is not been able to recognise and yield maximum possible revenues out of American region, and if any
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