HRM Strategies of PepsiCo: SWOT and PESTLE Analysis

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PEPSICO
HUMAN RESOURCE MANAGEMENT
INSTITUTIONAL AFFILIATION(S)
STUDENT NAME

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Table of Contents
Introduction................................................................................................................................3
Strategic Analysis of PepsiCo....................................................................................................3
SWOT Analysis.........................................................................................................................4
PESTLE Analysis.......................................................................................................................5
HR functions performed by PepsiCo.........................................................................................6
Challenges in HR system...........................................................................................................7
HRM plan...................................................................................................................................8
Conclusion..................................................................................................................................9
References:...............................................................................................................................10

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Introduction
This report will analyse HRM strategies of one of the most reputed companies dealing
in food and beverages, PepsiCo. The headquarters of the firm is situated in Purchase, New
York and the present CEO of the company is Indra Krishnamurthy Nooyi. While supplying
with major brands like KFC, Frito Lay, Tropicana, Taco Bell, Quaker Oats, etc. the company
has gained a superior reputation globally (PepsiCo Inc. Success Story, 2017). The company
has been doing many acquisitions and mergers to keep expanding their business globally.
Presently the company deals in more than 100 countries and employees more than 274,000
satisfied workers. Although many challenges came in the growth path of the company, but
with its strategic management and sound HR practices, PepsiCo has been able to overcome
those successfully. The mission of the company is to reach the top position in world in food
and beverage industry. The strategy company follows allows it to fulfil its mission and helps
in formulating company’s vision to serve its customers with best products. PepsiCo believe in
delivering “Performance with Purpose” and thus provides safe and inclusive workplace to its
employees along with taking measures to safeguard environment (Bailey, 2014).
Strategic Analysis of PepsiCo
Organisations have to face many challenges in the form of legal, social, technological
and economical where human resource practices have a strong influence and consequence on
those challenges. Strategic HR models and practice provides overview to organisation’s HR
teams to plan, develop and implement HR strategies in fulfilling the desired goals. In order to
evaluate PepsiCo’s requirement for HR model, SWOT and PESTLE analysis will be made
that can help in gaining information about challenges faced by it.

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SWOT Analysis
Source: (Minnesota)
The production and distribution system of the company realises an annual growth of
5% each year. The internal analysis of PepsiCo shows the strength of the company that lies in
its maintenance of staff by balancing personnel and work life. They provide flexibility in
work culture which is also anticipated by employees. Whereas weakness in this strategy
shows that errant workers may not like flexibility in work. Others may neglect their work that
may result in inefficiency. Opportunity PepsiCo’s work practice shows creation of healthy
lifestyle by creating friendly atmosphere in workplace. Employees feel less strained along
with getting motivated to work more. Moreover valuable employees are retained by the
company through this process. Threats associated are dealing with errant employees who
abuse the work systems. This might create low productivity for which the company has to
suffer (Young, 2017).