Pepsi and Coca Cola Change Management

This assignment examines the approach to change management employed by Pepsi and Coca-Cola in pursuit of sustainable development. It delves into the influence of leadership styles, employee behavior, and external market factors on both companies' adaptation strategies. The analysis considers the benefits and challenges associated with implementing change within these global corporations.

Understanding And
Leading Change

INTRODUCTION
Understanding and leading change make participates meet their problems that come from
implementing and initiating change. They will examine a change processes and a political,
psychological and issues of organisation generate. Categorizing a different challenges and
specific problems are identify for initiators, recipients of change and implementers. Understand
why initiatives changes are failed and dealing with resistance as well as finding factors of
successful change. Company Pepsi and coca cola are a two premier global brands of consumers.
Both are a most popular beverages of carbonated in the world (Doppelt, 2017). Companies are a
spite of winning a wars taste of blind. Companies are targeting a same marketers. These both
companies intended to serve as a again creating drinks for fun, entertainment and parties. Both
having a little way of difference between a Pepsi and coke. They will discuss a managing a
impact of change, decision making of leadership and leading change.
TASK 1
P1. Impact on operations and strategy changes of Pepsi and coca cola
Change: Changes happen in strategies and structure of organisation due to a environment
changes of business. Present factors of environment of business are important drivers for changes
happen. It includes market tactics, competitors, culture, preferences of customers and
technology, etc. There is a big impact of all these factors on a business activities on both
companies. They require to take care of different aspects of their sustainable development.
Changes are accepted and they provide us a lots of opportunity to capture a larger share of
market and relations with customers for a long time. So, it is necessary for both the companies to
find out a strategies and changes.
Two companies i.e. Pepsi and coca cola are operating their action of a business on a
worldwide which is given as below:
Pepsi: After 1961, organisation called as Pepsi. Organisation also manufacture a carbonated soft
drinks. Many of varieties are provide by a organisation such as Pepsi zero sugar, diet Pepsi,
Pepsi vanilla, crystal Pepsi etc. for competing with a coca cola and for capturing a large market
they have make a new strategies and changes (Fullan, 2014).

Coca cola: It is a soft drink of a organisation which gives them a variety of products such as
coca cola diet, caffeine free coca cola, diet coke etc. Organisation products sold in 200 countries
or more than that and daily 1.8 billions soft drinks are consumed by consumers on daily basis all
over a world. It is a largest organisation which is having a largest value of brand equal to google
and apple. Main competitors of a organisation is Pepsi which make coca cola think about the
changes and new operations and strategies.
So, accept their changes and improve positions of both companies for introducing new strategies
and policies to increase their business.
Strategies Pepsi Coca cola
Strategies of pricing Pepsi is a soft drink
organisation and having a
largest competitors of coca
cola in a market. To attract and
capture a consumers towards
their product they also need to
do the changes in a pricing
policy. Decision of price is
decide through a products
price as per competitors soft
drink in a market. It enables to
understand their capture of
consumers and strategies
(Hallinger and Bryant, 2013).
Coca cola is a large brand
having operations at a largest
worldwide scale. Main aim is
to maintain a quality of a
product and giving them a
different kind of product as per
consumers needs. Pricing is a
main thing which effect sales
of product of a organisation.
Understand what consumers
having their needs and what
they are ready to pay for their
products according to their
interest of customers. It help in
making a position and be with
competition.
Marketing strategies Its main promotional tools
used by management of Pepsi
for capturing market like
articles, magazines and
electronic media etc. this help
It help in increasing of sales
and profit of organisation.
Promotion tools of
management is newspaper and
social media. It help in

to reach a worldwide to attract
consumers of different regions.
attracting youngster and save a
cost.
Process It still processing a same
process provide products
through the stores. Having
own importance due to having
a face to face interactions with
consumers as well it help in
influence behaviour in product
choices.
More than 200 countries coca
cola is having their business.
For improving they adopt a
online technology for saving
time of staff and consumers.
Change Impact on Operations and Strategy: The changes whether large or small are affecting
the operations and strategies which are formulated by business organisations. The firms which
are utilising their services in effectual and planned ways are evaluated below as
Coca-Cola Pepsi
Change drivers High competition Innovative products
Strategy They are executing business
strategy
They are implementing
corporate strategy
Operations The operations of business are
changing very frequently and
there main focus is on
operations in order to retain
customers and earn
profitability.
The operations of Pepsi are
based on different types of
online services and they are
earning high profitability from
their online operations thus
established a position of largest
retailer in the market.

P2. Effect of external and internal drivers on leadership changes, individual behaviour and team
Internal and External drivers having a negative and positive impact on the behaviour of
leadership, employees of both companies and teams (Jones and Harris, 2014). Management
having duty that Pepsi and coca cola have to analyse both factors internal and external which
effect ability of teams and employees for effectively performance of a functions and targets with
in a stimulated time period. Internal drivers are the factors which contains both management and
company have control on them. It includes such as employee morale, organisation culture,
technological capacity etc. external drivers are which present from the environment of business
which affect ability of both company deliver their functions. It includes such as technological,
social, political, economical etc. These all factors are not in control of both companies Pepsi and
coca cola.
Impact on leadership behaviour, employees and terms internal drivers of coca cola and
Pepsi
Internal drivers and their impact define of both companies: Capacity of technology: Both companies capabilities accept a new technology, process
and methods in performing of functions ( Suchman, Sluyter and Williamson, 2011). It
help for a long term benefits. It effect behaviour of teams as they are not ready to accept
change and their ways of working. Affect employees for working with a new technology. Culture of organisation: It includes a study process of behaviour of teams and employees
of both companies. Affects in maintaining a good terms and create innovation among all
employees. Determine the differences of culture and adopting of policies regarding them.
 Financial management : Finance is a most important for motivating employees to work
hard. They not get salary according to their performance also demotivate them in
company.
Impact on leadership, individual behaviour and team through external factors in Pepsi and
coca cola Political factors: political factors include tax policies, political stability, government
policies etc. put an huge impact on both companies. Concentration given on major factors
such as quality motivation of manager and factor which affect leadership which stop in a
growth of individual and teams.

 Economic factors: business functions and economic conditions of a country are
interrelated functions with one other. Activities of business is based upon economic
environment. Reduce capability of organisation preparation of effective motivators and
teams employee for staying for a long time ( Kotb and Roberts, 2011) Social factors: CSR activities are included by a company which help in attracting a fresh
talent employees towards their company. It helps in building a morale of teams they work
for society benefits.
 Technology factors: factors include discoveries, inventions, advancement of
technologies, better techniques. It reduces a employees ability and performs of teams
their functions because they are not ready for developing skills and learning new
concepts. Because they are familiar with a old technologies and not want to accept their
changes in procedure and routine ( Peters, 2012).
From the above it is analysed that changes are important in order to manufacture products
according to needs and wants of customers. The firms should analyse all its internal and external
factors so that employees can carry out their working in effective manner and this results in
satisfying needs of customers. Internal drivers are the factors which includes both management
and company have some control on them. It includes such as employee morale, organisation
culture, technological capacity etc. external drivers are which present from the environment of
business which affect ability of both company deliver their functions. It includes such as
technological, social, political, economical etc. These all factors are not in control of both
companies Pepsi and coca cola.
P3. Measures to minimize the negative impact of changes on organization
Changes in the organization is essential to minimize the risk which can influence culture
and behaviour. Committees can be organized to minimize the negative influence of changes in
company. This helps organization to increase the market share and to become market leader.
Through this, workers can perform better and company can increase the revenues. The steps
which reduce negative influence of changes on organization's i.e. Pepsi and Coco-cola are-
 Employee resistance – Changes can influence the beliefs and behaviour of various staff
members. Both companies have to create new policies and rules. They have explain to
staff members regarding adjustment of changes and tell them that they will not loose their

positions. Firm can also explain benefits of adopting the changes so that their enthusiasm
level increases and they can easily adopt new changes in organization.
(Source: 'Where Do Your Employees Fit On the Engagement Resistance Curve', 2018)
 Expenses – These include the expenses in investment in various sources. Coca-Cola and
Pepsi are two big organisations that have large amount of assets. These companies have
to assess the financial need and then accordingly, they can spend in their goods. This
helps them in reduction of unnecessary spending in product which can minimize per unit
cost and will ultimately increase the income and market share. Lack of support and failure – There is no proper communication between all employees.
Manager of both companies motivates all employees so that they can perform better.
They needs to be explained that they will not loose their jobs and they can earn more
revenues. Thus it increases the enthusiasm level of staff members, they can easily achieve
the objectives and goals. It leads to enhancing performance. Morale – Due to the changes adopted in organisation, workers can lose their zeal and
spirit to perform better. So, employees are needed to be supported so that they can
perform better. Thus, members can achieve their goals and objectives to complete a
particular project. This helps them in accelerating the confidence level of workers which
Illustration 1: Where Do Your Employees Fit On the Engagement Resistance Curve

ultimately enhances their skills. Thus, it results in enhances performance. So, company
can earn more revenues and give strong competition to others. Communication – Managers have to properly interact with all employees. They can
delegate different roles and responsibility to staff members. They needs to explain about
their duties and all problems and issues are needs to be solved. Through this they are
motivated and they can perform better. Thus they can easily achieve their goals and give
good results. Hence it increase the productivity of all workers.
 Conflict resolution training - Both organization's Coca - Cola and Pepsi can provide
training to workers to solve the conflicts and issues in the firm. This helps the staff
members to understand each other’s action and their opinions which minimize the
problems between them. Employees can work better which raises performance of
company.
 Burke Litwin change model – It includes various dimensions which includes the
internal and external environment. This impacts the individual, leadership decisions and
behaviour. There are 12 dimensions are-
External environment – It includes the changes in the firm. Firm adapts the innovative
technologies so that creative and unique products can be produced. Thus it improves the quality
of the product.
Mission and strategies – Coco-Cola has to make clear mission and strategies for creating the
products. Thus employees do not have any confusion regarding the goals and they can make
plans and policies to achieve them. Through this employees can work efficiently and effectively.
Leadership – Coco-Cola has to follow the structure in which there is a leader and employees.
Through this structure authorities and responsibilities can be easily be established. Thus it
reducers the conflicts and disputes.
Organization culture – All employees have to follow the rules and regulations of the
organization. Through this employees can become more disciplined and punctual. They can
complete their work in time.

Structure – Organization can follow the structure in which there is a manager and employees.
Manager can delegate responsibility to employees. Through this all staff members can become
responsible and can work efficiently and effectively. Thus they can achieve their targets.
Management practices – Organization can make plans and policies so that manager can
supervise the employees. This helps in reducing the conflicts and disputes in the firm.
Work unit climate – Organization tries to maintain friendly environment among all employees.
Thus employees can understand each other and there are no disputes among them. It also results
in increasing of productivity.
Tasks and skills – Manager selects the employees according to their abilities. They are given that
job in which staff members can perform well. It helps in improving the quality of work and
increases the productivity.
Individual needs - Manager take views from the employees and implements them in creation of
plans. Through this all staff members are motivated to perform better. Thus it improves the
performance of employees.
Motivation – Employees are to be motivated so that they can perform better. This reduces the
tension and stress of staff members. They give good results.
Individual and overall performance – If individual performs well and achieve their targets it
directly improves the organization performance. It results in growth and success of the firm.
System – Organization can follow a proper system including input,process,output and feedback.
Through it there is no confusion and disputes. It results in smooth functioning of firm.
Conclusion – Through following the Burke Litwin Model employees can work efficiently and
effectively. It results in good functioning of the activities and tasks. This leads to increasing of
the productivity. Thus it leads to growth, success of the company and firm can maintain unique
position in the industry.

TASK 2
P4Barriers which impact change and leadership decisions -
There are various barriers in the company which can influence leadership behaviour and
decisions. So, every organization has to fix some goals,create mission for efficient functioning of
different departments. Administrator and leaders can make plans and strategies for
accomplishing the objectives and for smooth running of the company. It helps the company to
take different judgements. Various barriers of Coca-Cola and Pepsi which can influences change
and leadership decisions are - Past experiences – Experienced manager can apply their own knowledge and skills in
setting of plans and strategies. They follow their own skills of past jobs in new
professions. Administrators do not evaluate recent trends and apply their knowledge thus
all activities cannot perform efficiently. Leaders cannot take decisions regarding setting
of plans and policies. Thus they cannot guide all employees and as a result all staff
members cannot perform well. Lack of Knowledge and information - Managers and leaders both have complete
knowledge of the tasks and activities in companies. They try to get data about competent
and disciplined employees who can accomplish objectives of the firm and can work
better. This helps them in making decisions related to ideas and policies through which
all operations can run successfully which leads to growth of company. If leaders do not
have proper knowledge of skilled staff members, activities and tasks of departments then
they cannot take correct decisions about company and enhance performance of the
organization. Costs and budgets - Leaders have to gather data regrading budgets of company. It help
the leaders to know the areas in which they have to invest and earn more profits. If
managers do not have full knowledge of budget then they cannot take decisions regarding
investment in activity which increase the revenues and productivity. It directly results in
less revenues and low growth of firm. It also results in declining performance of
companies.

 Lack of employee involvement – Sometimes, employees resist changes in the company.
They cannot easily adjust to new plans and processes as they have of losing their
occupations and positions. So, workers do not perform activities and operations properly
which reduces the productivity in company. Thus, leaders have to explain staff members
to adopt those changes and advantages of new policies so that workers can perform
accordingly. Thus, staff members can achieve their objectives and perform better. This
leads to increment in revenues and growth of the company. Lack of communication strategy – Sometimes leaders do not properly interact with all
staff members regarding objectives, plans and policies of firm. Hence all workers cannot
have knowledge of processes and task of various operations and tasks. Thus they cannot
perform better and do not give good outcomes. If leaders do not properly communicate
with all employees thus they cannot take decisions regarding employees roles and
responsibilities. Due to this they cannot guide and supervise all staff members regarding
their duties which negatively impacts worker's performance.
 Organization complexity - Sometimes, company adopt complex process, operations and
activities to give the best outcomes with minimising expenses. All workers cannot
perform with effectively as they do not have knowledge of performing the tasks
Therefore, company can employ trained, competent and skilled members to increase the
efficiency in organization. Thus, it helps in increasing the revenues and enhancing
performance of firms.
 Systematic theory – It is the group of all factors so that organization can achieve the
objectives and goals. Through this employees perform well in the firm. This theory
consists of four components-
Input – Input includes the internal components in the company. Leader have to provide salary
and recognize them through promotion. Through this employees cannot feel demotivated and try
to achieve their targets and goals.
Process – It includes various factors which affect the firm. Internal includes the employee
satisfaction and motivation. So leader supports and motivates employees so that they can achieve
their goals. Through this employees do not feel demotivated. External includes the competitors

activities. So leader makes strategies to beat the competitors. So firm can earn more revenues.
Thus It prevents low performance of the company.
Output – Through promotion and incentives given by the leader, employees give good results.
Thus it increases the productivity of the firm. This helps in preventing low profits of the firm.
Thus company can maintain unique position in the market.
 Force field analysis-It is method through which company can improve the decision
making and thus results in growth and success of the firm. It includes 5 steps-
Describe the plans – Organization creates new plans and policies so that change can be occurred
in the firm. Leaders make strategies to implement the changes in the firm.
Identify forces for change – It includes the internal and external factors for changes in the
organization. Leaders can motivate employees so that they can perform well in the firm.
Through this employees can perform well in the firm. It leads to increasing of the profits.
Leaders make strategies so that firm can adopt the effective technologies so that good products
can be created. This results in capturing more customers. It helps in increasing of the
productivity and market share.
Identify forces against change – Company has to identify the internal and external changes such
as employee fear and government rules. Leaders tries to explain the benefits of adopting changes
to employees so that they do not resist the changes. Leaders tries to implement the rules and
regulations of government and create products according to needs of customers. Thus it leads to
customer satisfaction.
Assign scores – Give scores to each change according to the impact of changes on the plans.
Then make total of both sides that is for and against. Leaders analyse both sides of the changes.
Analyse and apply – Then lastly company can decide that which change can be forwarded in the
organization. Leaders can take decisions such as supporting forces can be carried forward and
try to reduce the restrictive forces. Through this company can reduce the negative impact of the
changes. Thus firm can run successfully and smoothly.

TASK 3
P5Various leadership approaches to deal with changes in company-
Various leadership styles are there in every business. Pepsi and Coco – cola adopt
various approaches to accomplish the company's goals and objectives. This helps them in
handling the workers and tasks in the company. Thus employees can perform effectively and
can achieve their objectives. It enhances the productivity in the firm's. Leadership approaches
adopted by both organization's are- Democratic leadership – In this leadership approach, all staff members can take their
own decisions regarding the strategies, objectives,tasks in the company as manager can
give full rights to them. All employees can give their own suggestions and views
regrading any activity or matter related to company to manager of firm. This results in
increasing of productivity and growth of all employees. It leads to increasing of revenues
of company. Laissez leadership – Under this approach staff members are treated as base in the
company. Every employee can select the process of working and strategies in both
companies to achieve their goals. This helps the companies to build a self structured
approach .As employees follow their own plans and processes they can do perform their
more efficiently and with full potential. Thus activities and tasks can run successfully. It
leads to enhancing of revenues and thus firms can achieve their targets. Transformational leadership – In this leader creates objectives and goals of company.
They motivate all staff members so that they can understand the targets and can perform
accordingly. This helps in increasing the enthusiasm of workers and they give good
outcomes in less time. This results in increasing productivity and profits of firm. It leads
to increasing of market share and growth of company. Transactional leadership - This leadership only emphasis on the performance of
workers. Organization can various rewards and recognize staff members for their good
performance. Seminars and conferences are organized to motivate them. It increases the
status,energy level and enthusiasm of workers to work better. Thus they perform more to
achieve their goals. It increases the workers efficiency level in achieving an activity and
all functions runs smoothly. This leads to development and growth of firm.

 Coaching leadership –In this leadership leader supervises and guides all employees.
This helps in enhancing knowledge and efficiency of all staff members. Thus they give
good results and it leads to increasing of productivity. It leads to long term success of
company.
Kottler's 8 step model- This model consists of various steps which can develop changes in
company. Initially it creates necessity which means requirement of the changes in the
organization. Secondly convincing people to adopt the changes so that workers do not resist the
changes and can work efficiently and effectively. Thirdly creating a vision and mission of the
firm. Manager can make plans to accomplish them .Fourthly it explains all plans and strategies to
the employees. Fifthly it reduces the problems and conflicts which can give negative impact on
the organization. Sixthly firms creates goals and accomplish them. Seventhly step is to identify
of the failures after achieving of the targets. Lastly company emphasis that changes can be
applied in the firm and there are no negative changes in organization.
Lewin change model - According to this model changes can be made easily in the firm. It
includes 3 steps- Unfreezing – In includes the awareness of the change. Organization checks the
behaviour,process and thinking of the employees and then communicates the changes in
the firm. Manager explains the benefits of adopting the changes and motivate all
employees so that they can easily adopt the changes. Organization also communicates
that through implementing these changes firm can earn more revenues and can maintain
competitive advantage over others. Changing – In this step manager tries to implement the changes. For this manager
explains the employees that they do not loose the positions and roles. They try to reduce
the fear within the employees. Organization explains staff members the reasons of
change and benefits to employees after adopting them. Thus employees easily adopt the
changes. Finally company can implement the changes.
 Refreezing – In this step company monitors that changes made in organization
policies,plans,employees action are easily implemented in the organization. Firm
evaluates that employees do not think in old ways as they thought before implementing
the changes. Firm evaluates that changes are properly implemented in the organization.
Rewards are given to employees as they had adopted the changes.

In this way firm can reduce the negative changes.
CONCLUSION
Concluding from a above project report that, for sustainable development changes are
important on a companies Pepsi and coca cola. It is necessary for both organisation to accept
improves performance and accept changes in a whole market. Large numbers of benefits are
their from competitive advantages of changes, capturing large market share, increases
profitability etc. It will effect the behaviour of leadership and behaviour of company employees
too. Their are some of barriers of technology which resist to change and it effect decision making
of leadership. Accept the need effectively application of various theories of leadership and other
approaches. Internal and external drivers also effect on the leadership behaviour, individual
behaviour and teams to both the companies. These internal and externals factors are not in a
control of both organisations. Companies have to accept changes to be in a market position and
retain a competitive advantages. As companies improve their department of organisation and
promote creativity and innovation among the employees of an both organisation. Organisation
have to satisfy their needs of a consumers and accordingly they have to bring a new operations
and strategies in a market. Pepsi and coca cola do their promotion for promoting their product in
all over the world. They target youngster for selling their products.

Online
Where Do Your Employees Fit On the Engagement Resistance Curve. 2018. [Online]. Available
Through: <https://www.tlnt.com/where-do-your-employees-fit-on-the-engagement-resistance-
curve/>