Understanding Change: A Comparative Report on Coca-Cola and Pepsi

This report offers a comparative analysis of Coca-Cola and Pepsi's approaches to change management. It begins by comparing their operational strategies, highlighting how they adapt to market demands, and examining their competence and pricing strategies. The report then delves into the intrinsic and extrinsic drivers of change, assessing their impact on leadership, individuals, and teams within the organizations. Furthermore, it explores factors that mitigate the negative impacts of change, such as training and employee motivation. The report also identifies barriers to change in the decision-making process and discusses the application of leadership styles in an organizational context. Ultimately, the report emphasizes the importance of adapting to changes to stay competitive in the market.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparison between two different organisations and their operational strategies after
adopting changes....................................................................................................................1
P2. Measurement of intrinsic and extrinsic drivers of alterations on leadership, individual and
team........................................................................................................................................3
M1...........................................................................................................................................4
M2...........................................................................................................................................4
D1...........................................................................................................................................5
P3. Factors which minimize negative impacts of change in organisation..............................5
TASK 2............................................................................................................................................6
P4. Barriers which put impact on changes in decision making process.................................6
M3...........................................................................................................................................7
D2...........................................................................................................................................7
P5. Usage and application of leadership style in organisational context...............................8
M4...........................................................................................................................................9
D3...........................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
To run business successfully for a long term, it is important for organisations to keep on
changing operational activities. In today's world, new tools, techniques and technologies come
and go on daily basis. Hence, proper decision making process may aid in adapting these changes.
Leaders and managers keep on analysing the changes that their rivals are doing so that right
decision can be made at the correct time. This action may lead companies to give competition to
competitors and also, this ensures a safe future in the upcoming years. In this assignment,
comparison in between two enterprises i.e. Coca Cola and Pepsi. which deal in the same sector
that is beverages. It has been comprehended in the report about changes that they make (van der
Voet, Kuipers and Groeneveld, 2015). Apart from this, internal and external drivers occurrences
puts impact on leadership, staff members and teams in a corporation. This report also includes
actions which reduce the negativity in employees while company faces some changes. At last,
assessment is putting light on various barriers that put a direct impact on decision making at the
time of adapting changes.
TASK 1
P1. Comparison between two different organisations and their operational strategies after
adopting changes
The process of adapting changes is fundamental for organisations to resist in
marketplace. Modifications are dynamic in nature. Hence, it is important for firms to grab these
changes which may put positive impact on the business. Making profit is the main aim of firms.
Taste of consumers, demands and requirements keep on change time to time. Managers and
leaders of corporations keep on finding these changes and take proper decisions. This action can
easily take them where they maximise their profit. Coca Cola and Pepsi are two famous firms
which deal in the same sector and that is beverages (Yoder-Wise, 2014).
Coca Cola:
Company was found by John Pemberton in the year 1886. Coca Cola produces
concentrated soft drink and sell them all over the world. It has a unique taste which most of the
people like across world. Also, this organisation is continuously expanding its business in other
countries.
PEPSI:
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Enterprise was found in the year 1898 by Caleb Bradham. Pepsi also deals in beverages
and produces carbonated drinks which are soft in nature. They change taste according to
requirements of its consumers. This action is leading them to grow business in other countries.
Both of organisations have different strategies and policies and these are mentioned below:
Strategies Coca Cola Pepsi Co
Competence Firm, continuously analysing
the taste of its consumers. This
helps them in changing their
products perception as per the
requirements. A type of action
aid in giving hard competition
to others in marketplace.
Organisation, keep the taste
same and changes as per their
requirement only. They do not
make any modifications as per
the requirements of customers.
Pricing strategies Coca Cola enhances prices if
demand gets raise of its
products. But, this reduces the
profit margins of company.
Pepsi keeps the prices
according to market value.
This helps them in making
profit and give competition to
rivals. If prices gets increase
then they also increase cost of
its product.
Promotions and advertising
tactics
They keep this sector strong.
In few years, Advertisement
took place as a marketing
strategy. Hence, Coca Cola
adapted it and this enhanced
their profitability in a huge
amount (Thompson, 2016).
Pepsi likes continuous
improvement in both;
productivity and profitability.
Promotional activities like
different events, ads on TV,
etc. are the main sources that
they use.
Process Enterprise keeps on adapting
changes like new tools,
techniques and technologies
which may aid them in
Organisation also, have some
secret ingredients and do not
adapt changes. It is must for
them to keep on enhancing
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enhancing their profit. But,
they have secret ingredients
that they use in those changes
as well.
business as per the
requirements of consumers.
P2. Measurement of intrinsic and extrinsic drivers of alterations on leadership, individual and
team
Leadership: Some qualities like motivating, encouraging, leading, coordinating, directing and
etcetera a leader should have (Coghlan and Shani, 2015). All the activities that a supervisor does
is to lead Coco cola where it can earn profit for a long time. They show ways to employees so
that staff members can attain their goals and objectives in a set period of time. Apart from this,
leaders are also responsible to form teams which may help firms to resolve the issues that they
are facing. Proper guidance to individuals can easily motivate workers and improve their
working skills and knowledge. There are some intrinsic and extrinsic drivers which may put
impact on both decision making of the leader and operational activities of Coca Cola.
Internal Drivers:
 Goodwill and structure of capital of Coca Cola represents in front of society.
 Modifications with innovative ideas which may lead organisation to achieve goals in a
short period of time.
 Proper environment given to employees may enhance their productivity and improves
loyalty towards Coca Cola.
 Keep faith in staff members that changes are for betterment of their future (Tang, Lu and
Hallinger, 2014).
SWOT analysis conduct for internal examination:
Strengths: Coco Cola is having an effective market share which assist them to take benefits from
competitors at market place. whereas, Client base of Pespi is much effective which help them to
enhance their revenues.
Weakness: Both companies are working at global level. As technology is changing quickly
which will provide impact to their working activities either in an direct or indirect manner.
Opportunities: Company is having sufficient resources so that they will easily expand their
working operations to many locations. as a result, they will be able to improve their customer
base.
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Threats: There are many competitors of organisations at market; therefore, it is required for
them to formulate effective strategies so that they will compete with them effectually.
External Drivers:
 Government and politics put a huge impact on the business expansion of Coca Cola.
 Constant information of changes that their rivals are adapting and by this activity they
can take proper decisions.
 They should keep on looking at the modification in policies which government agencies
are making.
 Apart from this, stakeholders are also the main part here at the time of decision making as
they are the one who invest money in projects.
PEST analysis(External element): Political: Coca Cola and Pepsi should evaluate political factors which may put impact on
decisions that have been made by superiors. Modification in rules and regulations of
Government policies may create favourable conditions for individual, team and on
mentors as well. Economical: In United Kingdom, every single individual at workplace is important.
Coca Cola and Pepsi are majorly helping in economical growth of nation. Changes in
economical conditions may put adverse impact on behaviour of individuals and teams. Social: It is essential for both Coca Cola and Pepsi to keep on making changes so that
productivity and profitability may gets increases. This factor includes lifestyle of
consumers. Managers and leaders should keep on evaluating the taste of customers so
that better alteration can be made.
 Technological: In today's era, technology is rapidly changing. Hence, it is important for
both Coca Cola and Pepsi to adapt those alterations to sustain in marketplace. This helps
organisation in giving hard competition to rivals.
Linkage of leadership with drivers of changes:
Leaders should keep on improving the relationship with staff members. This helps staff
members in giving suggestions to supervisors so that they can take appropriate decisions for
Coca Cola. Motivation to employees may aid in improving their productivity. To make a proper
plan, these leaders should have proper knowledge of marketplace and of objectives as well.
Leadership goals and motive:
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A leader is the one who leads subordinates so that they can attain targets in a short period
of time. Some of the objectives are mentioned below:
Direction: One of main function of a supervisor is to show ways so that employees can
easily improve their productivity (Bin Taher, Krotov and Silva, 2015). A leader who have kind
behaviour may aid in making relations with subordinates.
Control: After forming a plan it is important for leaders to analyse if the plan is going
towards set objective or not. If not, then they should find the ways so that plan can again come
on track.
Authority: A leader has potency. This aid them in giving jobs to staff members according
to their capabilities.
Influence: Motivation is the main part. This quality help leaders in pushing subordinates
towards their limits. A motivated employee will perform best at workplace.
M1
Both internal and external driver may put impact on leaders decision making process. It is
important for management of Coco cola to keep on looking at these drivers from time to time.
This aid in taking decisions which are favourable in nature in context of company. Leaders
should keep in mind about employees government policies, stakeholders, culture, shareholders
and other persons who are related to operational activities. To keep on running business
successfully it is important for supervisors to an eye on every aspect which may affect Coca
Cola's productivity and profitability (Coghlan and Shani, 2015).
M2
Change management plays a vital role in every organisation. To expand business in other
countries Coca Cola needs to look at every situation which may put company to a loosing
position. For an example: Modifications like change in taste of soft drinks per requirement of the
consumer may help in enhancing sale of commodities and also help in earning high margin
profit. Also, Coca Cola can adapt Kotter's change concept, this aid in improvising performance
of employees. Apart from this, skills and knowledge can be increased which may aid in
enhancing production of subordinates at workplace and makes them efficient.
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D1
Some policies and strategies should be made by employer for employees. These actions
should be in favour of subordinates which aid in making staff members loyal for Coca Cola. At
the time of changes here, leaders and managers can give proper sort of training which help them
in understanding why modifications have been made. These training and development
programmes aid in grabbing changes in a short period of time. Another way management can
motivate employees by giving them bonuses or compensate them for the work that they have
done (Doppelt, 2017).
P3. Factors which minimize negative impacts of change in organisation
Main aim of organisation is to make profit at its maximum. But, for this objective as well
they have to make changes according to their requirement of consumers or because of
government. It highly essential for Coca Cola to grab the modifications that marketplace is
facing. Otherwise, companies who are its competitors may take advantage of this. Alterations
brings risk with it. This is the reason that leaders and managers should keep on making proper
decisions so that company may not face losses. Change management mostly bring opportunities
for Coca Cola to improve its productivity and profitability. This part, also help in giving
competition to rivals and enhance goodwill and brand image of firm.
For Coca Cola, it is important for decision takers which aid in bettering employee
relations, healthy environment and maximises profit. There are methodologies which reduces the
negativity among employees at the time when changes takes place are given as below:
Employee Resistance: When Coca Cola makes some changes in operational activities at
the time of this subordinates fears of their job. For an example: Company brought a new machine
which reduces the workload from manpower. Adaption of this may create conflicts and
demotivation among staff members. It is leaders and managers responsibility to resolve their
issues and help them in understanding how that machine works (Dreher, Clinton and Sperhac,
2014).
Expenditures related to operational activities: Coca Cola adapts changes this helps
them in achieving set goals in a specific time frame. But, these alterations require proper amount
of funds. Hence, it is important organisation to keep on developing faith with stakeholders. As,
they are the one who mostly provide finance for the objectives that Coca Cola wants to achieve.
This firm is one of the largest known enterprise all over the world thus, they do not face
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problems to raise funds. But, small business corporations faces these difficulties. Hence,
financial planning is essential for organisations. Managers are the one who fix the cost of every
operation and manages them in a continuous manner.
Deficiency of assistance and non achievements: To improve operational activities it is
important for management to have a proper knowledge and data related to goals and objectives at
the time of changing them. Failure under this may lead organisation to reduce its goodwill,
decreases brand image and also may put impact profitability of Coca Cola. Managers and leaders
should properly make decisions and follow them so company do not faces any kind of issues.
Training and development session regarding changes may aid in improvising employees
knowledge and skills which makes them efficient.
Positive Psychological state: Staff members are said to be asset for Coca Cola. It is
highly important for firm to have skilled and confident workers which may lead them to achieve
goals efficiently and effectively. Sometimes situations comes across where labour reduces its
morale and gets demotivated. For an example: Incompletion of tasks may demotivate workers.
To remove this it is necessary for managers and leaders to have a word with them (Feldman, Hart
and Milosevic, 2017).
In this context, executives can reduce negativity by giving proper information to
employees about changes so that they don't refuse from adapting those alterations. Apart from
this, Pepsi and Coca Cola's management keep in mind of investors at the time of making any sort
of changes as they are the one who provide funding to accomplish targets. Also, proper
knowledge should be given to staff members about changing related data. All these functions
may help management to make proper decisions by which Coca Cola can easily attain its targets.
TASK 2
P4. Barriers which put impact on changes in decision making process
It is fundamental for Coca Cola to adapt changes which they are facing in marketplace.
This aid in running business successfully. Managers and leader should form plans and policies
which accelerates the profit and creates a healthy environment of Coca Cola. To enhance morale
of employees supervisors should ask for their suggestions and feedbacks in meetings so that
proper decisions can be made (The Influence of Decision Making in Organizational Leadership
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and Management Activities, 2018). This action motivates them and make them even more
efficient than they were before.
There are some points of barriers of changes are as follow:
Lack of Communication: Employer should also communicate with employees about the
changes that they are facing. Failing in to this may give invitation to rumours in between staff
members (Fullan, 2014).
Lack of consensus: It is essential, for employers to keep on telling the changes that they
have made from top to bottom level of employees. This activity aid in reducing conflicts in
between staff member and also reduces stress level.
Employee Resistance: Labour likes to work in the same manner that they are following
from a long time. Changes that have been made by authorities of Coca Cola may upset
employees. Because, they have to learn the new things again and this part they do not like it at
all. Under this part, managers and leaders can give training to staff members according to their
needs per alterations that have been made. This can be done in meetings, training and
development sessions and etcetera.
Planning: This part, can be stated as the one which resolve issues easily. Without
planning managers and leaders cannot make perfect changes that aid in running business
successfully. Supervisors make changes and also it is essential for them to give tasks to every
individual according to their capabilities. This lead Coca Cola to achieve its targets easily
(Kuipers and et. al., 2014).
Force field analysis: This model is more effective for business organization which given
by Kurt lewin. It support the culture change but at the same time it increase problems against
overall framework. In this leader also face issues at the time of decision making process. In this
loss of employees overtime, impact of external surroundings are reason of creating barriers
within the organization.
M3
There are so many obstacles leaders and managers faces at the time of decision making
for changes that are required. Political factors, government policies, high cost of products,
negative environment and many aspects are there which can be stated as barriers. For an
example: Coca Cola wants to expand its business in Nigeria and introduced its commodities in
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the market of country. But, they did not liked the taste and also the prices of beverages were high
this lead them in making changes according to consumers needs.
D2
Most of the time, employees do not accept changes and love to work in a same manner
which they are following for a long time. But, alternations are also fundamental for firms hence,
they makes changes according to their purpose. Here, it is managers and leaders duty to make
subordinates understand that why these changes have been made and how it will put impact on
company (Lawrence, 2015). Also, these supervisors can give training and development sessions
to employees as per required needs.
P5. Usage and application of leadership style in organisational context
Every organisation, have leaders and these supervisors have different ways of style that
they uses in on daily basis. Coca Cola's uses different sorts of leadership style as per their
purpose to attain targets. This process help company to achieve goals even in difficult conditions
also. These superiors should have a unique intellectual sense so that proper decisions can be
made at a right time. Different type of leadership style as mentioned beneath: Autocratic : A type of leadership, where leaders do not take any feedbacks or suggestions
from employees or other staff members. Under this, supervisor directly implement
decisions that have been made by him/her only. Every individual in Coca Cola has to
follow the determinations. Democratic : This type of leadership, gives opportunity to everyone in Coca Cola. It also,
gives feasibility to every single staff member in organisation. This brings confidence in
employees and also helps in distributing work in staff members as per their abilities
(Mayfield, 2014) Transformational : Under this leadership style, superiors provide proper information to
its subordinates so that they can also be on the same path. Change management is
dynamic in nature. Hence, leaders should also give data to staff members. Under this part,
training and development part mostly aid in improvising skills and knowledge of Coca
Cola's labour.
 Transactional : Main reason of adapting this sort of style is to keep on improving
employee relations in between subordinates. To do this, managers and leaders both uses
different sorts of tools and techniques. Compensate staff members in terms of money for
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