Case Study: Change Management and Leadership at PepsiCo

This case study examines the change management strategies implemented by PepsiCo. It highlights the importance of effective change management in meeting industry requirements and customer demands. The analysis focuses on the application of Kotter's eight-step change model, emphasizing the need for creating urgency, developing a strong team, establishing a clear vision, and removing barriers. The study also explores the critical role of leadership in guiding employees and facilitating the change process, emphasizing the company's focus on employee development and leadership training. The case study references various sources to support the analysis, providing a comprehensive overview of PepsiCo's approach to organizational change and leadership.

Change Management
A case study of PepsiCo
Student Details
1-1-2020

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Table of Contents
Change Management at PepsiCo...............................................................................................2
Leadership and Change Management........................................................................................2
Reference....................................................................................................................................4

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Change Management at PepsiCo
PepsiCo effectively focuses on improving its business operation so that it can meet the
industry requirements. Adopting effective change management within the organisation helps
the organisation in developing policies so that the effectiveness of the change management
process can be ensured within the organisation. To meet the customer requirements, PepsiCo
is required to implement changes within the organisation Kotter has effectively defined eight
steps which are required to be ensured during the change management process. The step one
is to create urgency within the organisation, PepsiCo, should focus on ensuring that the
change required is effectively communicated within the organisation1.
The next step within the organisation is to develop an effective team, PepsiCo has various
departments and levels, therefore, it is required that it focuses on effectively establishing a
network through which it will be able is to communicate change within the organisation. To
ensure the change management, PepsiCo is required to focus on creating a specific vision or
objective so that the activities within the organisation can be effectively developed along with
developing it is required that the members of the organisation effectively focus on the
communicating the vision within the organisation 2.
After that PepsiCo is required to focus on analysing the environment and remove any barriers
within the change management process, and develop short term-policies so that the change
can be effectively implemented within the organisation. The management is required to focus
on to effectively implement the changes and ensure that the changes are being managed with
the organisation.
Leadership and Change Management
Leadership within the organisation plays an important role in change management. As the
employees are required to be guided and motivated so that they work towards the
organisation goals and objectives. Therefore, developing effective leadership is required to
ensure that the strategies developed within the organisation are being effectively followed
and the employees are contributing towards the change management. PepsiCo is considered
1 DK. Wentworth, SJ. Behson & CL. Kelley, ‘Implementing a new student evaluation of
teaching system using the Kotter change Model’, (2018), 45 SHE, 511
2 JP. Kotter, Leading Change (HBP,2012)

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as an organisation with an effective and efficient human resource available and an effective
leadership team within the industry3.
The leadership team at PepsiCo effectively focuses on employee development and
developing strategies through which the change can be implemented and managed. Also, the
leaders are required so that they can effectively communicate with the employees and can act
as a link between the superior and subordinate level within the organisation, and can ensure
that the rules and regulations by the top management are being applied throughout the
organisation. PepsiCo along with organisational change also focus on developing the skills
and competencies of its leadership team within the organisation and developing successful
leaders within the industry responsible for successful implementation of the change or the
innovative measures4.
3 M. Sotarauta, I. Horlings, J. Lindle, Leadership and Change in Sustainable Regional
Development (RP, 2012)
4 G Llopis, ‘PepsiCo Adding Breadth to Talent Depth with Critical Experiences’ (Forbes, 23
February, 2015) < https://www.forbes.com/sites/glennllopis/2015/02/23/pepsico-adding-
breadth-to-talent-depth-with-critical-experiences/#5b7e509e6f15> accessed 20 March 2020

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Reference
DK. Wentworth, SJ. Behson & CL. Kelley, ‘Implementing a new student evaluation of
teaching system using the Kotter change Model’, (2018), 45 SHE, 511
JP. Kotter, Leading Change (HBP,2012).
G Llopis, ‘PepsiCo Adding Breadth to Talent Depth with Critical Experiences’ (Forbes, 23
February 2015) < https://www.forbes.com/sites/glennllopis/2015/02/23/pepsico-adding-
breadth-to-talent-depth-with-critical-experiences/#5b7e509e6f15> accessed 20 March 2020
M. Sotarauta, I. Horlings, J. Lindle, Leadership and Change in Sustainable Regional
Development (RP, 2012)