The report explores how two prominent companies, PepsiCo and Coca-Cola, utilize distinct approaches to managing change within their organizations. It delves into the various internal and external factors influencing team dynamics and individual working environments, providing insights into effective leadership for organizational change.
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Understanding and Leading Change
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Different organisations and impact of change on their business strategy and operations....1 P2. Internal and external drivers of changes that affect leadership, team and individual behaviour.....................................................................................................................................3 P3 Measures for minimise negative impacts of changes on organisational behaviour...............5 Task 2...............................................................................................................................................6 P4 Barriers for change and their influence on decision-making of leadership...........................6 Task 3...............................................................................................................................................7 P5 Different leadership approaches for dealing with change in organisational context.............7 CONCLUSION................................................................................................................................8 REFERENCES...............................................................................................................................9
INTRODUCTION In the context of an organisation, it is needed to make different changes in the company in accordance of their business environment. All the elements of business environment makes direct effecton operational and functional activities of the firm. For the company several changes helps them to get lead in high competitive market and have different types of advantages in easy way. This report project is based on tow different kinds of firms and several patterns that they opt to creates changes in their strategies of business in effective manner. The project report is based on Pepsico and Coca cola. These both firm are multinational beverage organisation and deals in soft drinks. The report project is detailing various elements that are able to bring change and also affect the work environment of the company. It will analyses the measures that helps in reducing negative impact of the change for organisational behaviour. There are several roadblock orhurdlesforchangethatmayinfluencedecisionmakingprocess.Someofleadership approaches are explained in order to dealing with change for sound organisation. TASK 1 P1. Different organisations and impact of change on their business strategy and operations Thechangeincompanyreferstodifferentbusinesschangesinaccordanceof environment that involves some aspects like procedure, policies and techniques which may affected by the variation of market. Firm are generally facing their kinds of challenges at time of running a company hence they will concentrated on creating suitable strategies and have actions in order to survive in these situation or challenges. Change needs to be there cause it provide helps for having success for opting different strategies among competitors. Some effects on company are there which are detailed as- PepsiCo This firm is an American multinational food, beverage and snack industry. This firm was framed in the year of around 1965 with the merger of Pepsi-cola in purchase, New York. The company is generally interested in different types of exercises like marketing, manufacturing along with grain based food items, selling of beverages, snacks and other various products.In reference to recent data, company's retail sales are nearly $ 1 billion apiece. The key person of the company is Indra Nooyi who is a chairman and CEO. And Ramon Laguarta (president). Firm has around 264,000 workers performing and it bring the revenue around of US$ 62,799 billion. 1
All rage of product they are offering in approx. higher them 200 nations. PepsiCo. Is the known as the second biggest food and beverage company in entire world. Coca-Cola This is an American multinational beverage corporation and their headquarter is located on Atlanta, Grogia. The firm was framed in the year of 1886 by John Stith in Columbus. As the firm is generally interested in retailing, marketing and beverage manufacturing along with Syrups. The stock of company of Cola cola has been listed in NYSE that is a part of DJIS. This firm is public limited company and their prominent persons are Muhtar Kent (chairman) and James Quincey (president and CEO). Both firm are having different types of policies and strategies for effective business and they are offering harder competition to each one along with their other competitors in the market area. Here, major difference is explained such as- StrategiesPepsiCoCoca-Cola Competency strategiesThecompanyPepsiCois majorly concentrated on tastes andpreferenceoftheir customers along with it they frame their strategy in order to satisfy buyer's needs and wants withvariousandunique tastes.Thiscompanyis consumer oriented. The firm Coca cola is not so fucusedoftheirbuyer's demands and needs along with it, they are keeping their eyes on advertising and pricingas well as promotional strategy. They brings new thought s and ideas in order to selling their stuffandattractsmore customers. Pricing strategiesThe firm tries to frame new strategiesofpricingin accordance o0f the demand of the stuff or product as well as it is based on the production cost.Attimes,theseall strategiesreducessalesratio Thisfirmgenerallyopts processeffectiveand competitionbasedstrategies hencethebuyerswillbe attracted to it.(Fagerström and Salmela,2010)onthe differenthand,thecompany 2
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causehigherpricesofthe products and customers goes to other products. willchargehighercostfor theirproductsandservices that will effects on the buyers innegativeway.(Doppelt, 2017). Promotionalandadvertising tactics Thecompanyisfocusedon higherlevelofpromotion hencetheyarehaving promotional strategies in order tomakingmoreawareness between customers and build soundornewimageinthe mind of customers in respect totheirbrand.Theymake moreinvestmentfortheir advertisementandhireswell knownfacesandcelebrities that helps in making effective marketing among competitors. The firm Coca cola generally concentrate on simple type of advertisement and they invest more funds in the opting of promotional tool and methods. (Malenfant, 2010). Other firm it, they also had different types of strategiesin order to frame theirfuturecustomersand spreadingawarenessinthe markethence they will have higher market share. P2. Internal and external drivers of changes that affect leadership, team and individual behaviour Leaders are those individuals who provides guidance as well as offers path for leads of groupor individualson the right direction hence with the helps of this they will be able to get their firm's objective and goals. They has responsibility to framing mission, vision and make path objective for their workers along with they achieve all these in the future in prescribe time duration (Parsons and Cornett, 2011).Leaders provides supports to their employees for performing better and with it they motivate them for giving effective work that will contribute in boosting the productivity and grab determine target in sound manner. Hence, styles and theories of leadership required in the firm for face any task in effective way. It helps in minimising the chances of problems and creates a sound working environment. 3
Here are some external and internal force that can affects on leadership, individual and team behaviours. These are follows- INTERNAL FACTORS: These all factors are able to make direct effects on the operation s of business from inside of the company as leader and manager needs to creates sound strategies in the case of inherent factors (Parsons and Cornett, 2011).All these elements can be controllable as they are controlled by the top or higher authority of the management. The process of decision making is affected through various types of changes cause it make influence on entire firm as well as its activity and operations. Firm needs to be concentrated on these all forces with the helps of it they can be able opt sound and best strategy that helps in surviving at the time of these issues and build firm effectively. Manager and leaders are needed to make corrective actionfor effective working environment. There are some internal factors which makes impact in the business such as- Technological capacity:it is an essential factor cause firm needs to maintain their efficiency and capacity of the technology. It should be changed in accordance of the environment or may be change for sound production process so the Morden technology needs to be opted in order to running the business. Organisational culture:it can be known as the study of attitude and behaviour of an individual and group in the firm. Culture is a important part of the organisation cause it provides helps in facing competitive business, turnover and make coordination among workers etc. Employee morale:they are the prominent people of the firm as their level of strengths and confidence are required hence the company needs to focus on the satisfaction of the employee that will made a positive energy and sound condition of working for both the firm and jobs. EXTERNAL FACTORS: These elements affects to functions of organisation and their operation from out side. Hence it involves those such things as events and situations which can arose form out side of the company (Salmela, Eriksson and Fagerström, 2012). They are not be controlled but some time they can be managed . Leaders and managers has the responsibility for creating effective decision in the reference of an organisation hence they can survive of having external driving forces like- 4
Economy:it is the most signify factor that generally effects on the business operations. This can be stated that entire performance of business is based on the economic factors (Brown, 2012). like financial fluctuation such as deflations as well as inflations directly effects the working and age of the business. Political influences:this factors is refers to functions of business as they are facing at the time of performance hence this factor creates influences on decision making of the leadership along with their employee's behaviours too. In this involves government policies, tax policy parties, stability and so on (Brown, 2012). New competitors:it is also know as the major factorcause new competitors launched their new ideas, technology, innovation and satisfied buyers hence the firm needs to undertakes these elements of effective firm and garb their competitive advantages with suitable strategies. P3 Measures for minimise negative impacts of changes on organisational behaviour. It is the main and hard task for each and every organisation in order to reduce negative effects and all firms are concertinaing on the different types of measures that provides supports in respect to removing the several kinds of impact on the operations of business and creates sound or effective working environment.Pepsi-Cola organisation also tries to minimise those effects in suitable manner. Such types of effects can keep down the firm and this will directly effects on the goal of firm and their objective in sufficient manner. Firm needed to opt the best and appropriate strategies in order to avoid negative impact. These kinds of situation as well as decision which can be effected through external forces. Here are some measures that provides helps order to minimise the negative effects such as- Training:it is the signify techniques that provides supports in order to accepting all kinds of changes in the business environment. different types of firm considered this method as pepsi cola also undertakes training in order to reduce all negativity and boost up the skills and knowledge of their employees with the helps of it they can garb their pre determine objective and target (Suchman, 2011). It is a effective strategies that needs to be opted by the Pepsi cola organisation to survive form each other competitors that supports in keeping motivations sand confidence in more critical situation or environment. Healthy relations with employees:this must be necessary to creates sound relations with the members of team or entire force of employees hence it can be possible with the helps of effective communication cause it provides help in respect to interact in proper manner with each 5
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and every person. Management needs to make communications with their employees in regards to their new strategies and technology option in order to manufacturing innovative product and stuffs to meet with the expectation of the buyers and their demands. Research:It is a helpful technique that provides support in order to examine the the needs,. Demands and wants of the customers. Many of the organisation conduct research of survey in order to have knowledge about future customers, their needs and preference, taste and sound competitors , market trends and many more things through which they canbe able to make sound decision in regards on adoption of different types of strategies (Branson, 2010). hence research is very helpful and essential tool that facilitates helps in order to collect information and data that needs in building a firm more successful. Technology:this is a part of external environment as some technical changes affects the operation of business hence the company should concentrate on this elements and undertakes the change system in order to make effective organisation. Pespi cola is the largest company and second largest firms in the entire world therefore they are needed to have new techniques as well as adoption of it for effective producing the different types of cola taste or any soft drink (Thomas, 2013). changes in environment brings new thoughts and idea or innovation in order to manufacturing sound and good taste and fresh drinks cause foods firms also needs to have new and innovative technology. Firm can reduce their cost and time through accepting technology and minimise the wastage by recycling and take optimum use their resource in effective manner. Task 2 P4 Barriers for change and their influence on decision-making of leadership Change can be considered as the system that needs to coped with the firm as it will be everything that are able to bring effectiveness in the environment of working as well as their criteria (Thomas, 2013). Roadblocks are the major factors that builds conflicts and creates entity in order to getting stuck some where in the work. It will be make complex condition for the firm as many hurdle and issues can be happen hence they needs to wind up their business. Papsi cola firm are concentrating on creating effective environment of working and motivates their employees in order to perform best project or job to garb organisational desired objective and goal. Best working is helpful in order to reducing all types of risks in effective manner. Lack of proper communications:It is essential factor that can be able to affect on the relation of workers and managements cause this element is related to interaction among 6
employees and top level management. It is negative factor which are able to make impact on direct bases on the business organisation as they will communicateabout the change that can take place in the firm and workers are needed to creates any types of adjustment as well as make them for opting changes in effective environment of working. Hence, it lights to lack of communication. It is the responsibility or duty of the firm in order to provide data, information and make communication with their workers in regards of change option (Thomas, 2013). Organisational culture planning:systematic and effective culture is necessary for the sound working environment in the organisation. Team workforce focused on creating effective policies, responsibilities and areas of job which can be able to make effects on functions of organisation. Lack of employees involvement:it is a general but biggest mistake form some of the firms that they are not included or provide chances to their workers in working decision and any actions that are going to take for the firm.Employees basically are not wishes any of changes hence they have fear of various changes if they are not selects in the process of change of the company. So employees inclusion is required as the company needs to provide them a chance in order to share their views and opinion in regards of change and their strategies for option which will provide support in respect to developing company in very effective manner. Complexities:it is an other elements that needs to be undertakes that is known as the complexities (Bingham and Main, 2010).As every firm needs to concentrate on these forces at time of making decision process hence it will creates roadblock because of the changing culture and environment. It will be become very hard for every individual as workers or members of team in order to understand the entire system of change. Hence Pespi cola firm have to optthe best strategy to reduce such types of problems and grab desired expectation. Ti provides their contribution in growing faster for the development of the business. Task 3 P5 Different leadership approaches for dealing with change in organisational context Styles and approaches of the leadership is very helpful techniques that facilitates supports in order to dealing with various types of changes in the firm (Anderson and Anderson, 2010). leadership helps to boost and influence the behaviour of employees for performing sound task and grab their objective. Styles of leadership helps in opting different types of changes in sufficient manner hence business can be able to develop their planning in easiest way. They will 7
inspire and influence to their workers for using the new techniques, innovations and ideas that provides supports in order to building performance in effective manner. Some of the leadership styles are detailed as- Autocratic:this types of leaders are straight forward and they will took their decision by their own. They do not allows any person to keep interference in their decision making process. This king of leadership can be appropriate in tough and critical situations. Democratic:It is very helpful for promotion and leading an organisation. It will facilitates their participationand supports for their workers so that employees will be motivated in order to perform their new job or task. The pepsi cola in concentrating on facilitating a platform along with chances to the workers so that they will be able to boost their knowledge and skills or abilities for future development in the firm (Thomas, 2013). Laissez Fair:here in, they will have different types of fundamentals which are applied on the persons. There are some of particular rights which are provided to the workers so that they can make their decision and have actions in any conditions. It provides help in appropriate balancing and the sound operations that needs to be done in effective manner. CONCLUSION From the about report it has been concluded that, the changes are able to affect organisation in both manners as internal and external environment, therefore the firm needed to creates effective strategies that will provides supports in order to having their particular objective. The report is based onPepsiCo and Coca-Cola both the companies are using their different strategies to dealing with various market change. Some of internal and external factor are explained as it effects on team and individual working environment in the organisation. 8
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