Impact of Change and Leadership Strategies: Coca-Cola and Pepsi Report

This report delves into the critical aspects of change management within the context of two major industry players: Coca-Cola and Pepsi. The analysis begins by examining the impact of change on the strategies and operations of both companies, highlighting how they adapt to market dynamics, custo...Read More

Understanding and Leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Impact of change on strategy and operations of Coca cola and Pepsi..................................3
P2. Effect of internal and external drivers of change on leadership, team and individual
behaviour.....................................................................................................................................6
P3 Measures taken to reduce the negative impact of change on organisational behaviour........7
TASK 2............................................................................................................................................9
P4 Different barriers of change and their influence on leadership decision making..................9
TASK 3..........................................................................................................................................10
P5 Different leadership approaches to deal with the changes in organisation..........................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Change is important for the growth of organisation. It is important for company to
understand the changes and accept in their business activities. This helps the firm to improve
their methods and process in completion of tasks. Business environment is unpredictable and
many changes happen in external environment which affects the decision making power of
management. Acceptance of changes helps in creation of innovation among employees and
making strategies to lower risk of uncertainties. In the present report, it is important to promote
leadership to accept the changes and implement various approaches which increase their
competency to deal with such situations. This will increase the capability of organisation to
identify and respond to the change drivers. In this report, importance of change management and
application of leadership approaches to Coca cola and Pepsi will also be explained (Davis and
Marshall, 2014).
TASK 1
P1. Impact of change on strategy and operations of Coca cola and Pepsi
Change: This includes the changes happen in organisational structure and strategies due
to modification in business environment. The factors which are present in business environment
are main drivers for happening of change. This includes competitors, technology, culture, market
tactics and preferences of customers, etc. All these factors have a huge impact on the business

activities of both companies and they are required to take care of such different aspects for their
sustainable development. Acceptance of change provides a lot of opportunities to capture a large
market share and make long term relations with their customers. So, it is important for both;
Coca cola and Pepsi to identify the changes and make strategies.
The reasons which forced both organisations to make changes in their organisational
strategies and operations are mentioned as below:
 To understand the drivers of change and accept them to retain their position in market to
attain competitive advantage.
 To improve the performance of different departments of company and promote creativity
and innovation among employees.
 To satisfy the different needs of customers.
 To adopt the best practices in organisation for performance of their functions and
maintenance of quality of their products (Drover and Ariel, 2015).
The two organisations i.e. Coca cola and Pepsi are operating their business activities
worldwide which is given as below:
Coca cola: It is the soft drink company which provides variety of products like diet coke,
Caffeine free Coca cola, Coca cola Zero etc. This company products are sold in more than 200
countries and more than 1.8 billion soft drink are consumed by customers every day in all over
the world. This is the largest company which have large brand value equal to Apple and Google.
The main competitor of this company is Pepsi which force management to think about to make
changes in their strategies and operations.
Pepsi: Company also manufactures carbonated soft drinks. After 1961, this company is
called as Pepsi. Large number of variants are provide by this company which includes diet Pepsi,
Crystal Pepsi, Pepsi vanilla, Pepsi Zero sugar etc. To compete with Coca cola and capture large
market they have to make changes and accept new strategies.
So, to accept the changes and improve their position, both companies introduce new
policies and strategies to accelerate their business.
Strategies Coca-Cola Pepsi
Pricing strategies Coca cola is a big brand
having operations at a large
scale worldwide. Its main aim
Pepsi is also a soft drink
company and the largest
competitor of Coca cola in

is to maintain the quality of
their soft drinks and provide
different kinds of drinks as per
their needs. Pricing is the most
important thing which affects
sales of products of company.
For this purpose, they have to
understand the willingness of
consumers to pay for their soft
drinks and decide as per their
interest. They adopt the pricing
policy from higher too low for
different types of products as
per their demand. This helps to
retain their position and attain
competitive advantage in the
market (Fragouli and Ibidapo,
2015).
market. To capture the market
and attract customers towards
their drink, they also need to
make change in their pricing
strategy. They decide to
pricing their products as per
the price of soft drinks of
competitors in market. This
enables to understand their
strategies and capture their
customers.
Marketing strategies This is an important strategy
which helps in increasing the
sales and profitability of
company. The main
promotional tools which are
used by the management of
company are social media and
newspaper. Use of social
media helps to attract young
generation saves their cost.
The main promotional tools
are used by management of
Pepsi to capture market like
electronic media, magazines,
articles etc. This will help to
expand their reach worldwide
to attract different customers
of different regions.
Process Coca cola has their business
activities in more than 200
Pepsi still followed the same
process of providing their

countries. Large number of
stores are operating to conduct
their business activities. To
improve their business, they
adopt online technology to
save the time of customers and
staff members.
products through their
different stores. This will have
their own importance due to
face to face interaction as well
as it helps to influence
behaviour in making choice of
products.
P2. Effect of internal and external drivers of change on leadership, team and individual
behaviour
Internal and external drivers have positive and negative impact on the leadership
behaviour, teams and employees of both organisation. It is the duty of the management of both
Coca cola and Pepsi to analyse internal and external factors which affects the ability if
employees and teams to effectively perform their functions and achieve their targets within
stipulated time. Internal drivers are those factors which are includes within both organisations
and management have some amount control on them. This includes technological capacity,
organisational culture, employee morale etc. External drivers are those which are present in
business environment affects the ability of both the organisation delivering their functions. This
includes political, economical, social, technological etc. These factors are not under the control
of both Coca cola and Pepsi (Goldstein, Sauer and O'Donnell, 2014).
Impact of internal drivers on leadership behaviours, teams and employees of Coca cola and
Pepsi
There are many internal drivers and their impact is define below on both organisations.
 Technological capacity: This includes about the capabilities of both organisation to
accept the new technologies, methods and process in performance of functions. This is
the important which helps to take long term benefits. This will affects the teams
behaviour as they are not ready to accept the changes and change their methods of
working. This will also affects employees to work on new techniques.
 Organisational culture: This includes about the process of study of behaviour of
employees and teams of both the organisation. This helps in determination of the

difference in culture and adopt the policies regarding that. This will affects in
maintenance of good teams and creation of innovation among employees.
 Financial management: Money is the important factor which motivates employees to
work hard with passion. If they not get remuneration as per their performance, de
motivates them in organisation.
External factors which affects leadership, team and individual behaviour in Coca cola and
Pepsi
 Political factors: This includes about government policies, political stability, tax policies
etc. This will have huge impact on working of both organisation. The major
concentration is given on the such factors affects leadership and motivation quality of
manager which hinder in the growth of teams and individual.
 Economical factors: Economic condition of country and business functions are
interrelated to each other. As business activities are depends upon economic
environment. This will reduce the capability of companies preparation of effective teams
and motivates their employees to stay long with them (Groppel, 2011).
 Social factors: This includes about the CSR activities of company which helps the
company to attract the fresh talented employees in company. This also helps to build the
morale of teams that they working for benefit of society.
 Technological factor: This includes the factors related to inventions, discoveries, better
techniques, advancement of technologies. This will reduce the ability of employees and
teams to perform their functions because they are not ready to learn new concepts and
development of skills. This will happen because they are familiar with old technologies
and not want to change their routines and procedures.
P3 Measures taken to reduce the negative impact of change on organisational behaviour
There are many measures are taken by the management of both the companies to reduce
the negative impact of change on the organisational behaviour. There are many theories and new
concepts are adopt in this regard by companies. This helps the company to identify the
consequences of such changes in future and provide mitigating measures to reduce their adverse
impact on the performance of organisation and the behaviour of teams and employees. Different
theories which are applied in this regard are define below:

 System theory: This is the effective leadership approach which is used by both the
companies for development of the performance of company in complicated and
uncertainty situation. This theory not consider the reasons which are provide the folowers
to the leader and treat the organisation as supra system and on other hand the key factors
reflect the organisation as system and its environment as supra system. The advance
model is implemented in Coca cola. Under this theory Coca cola is known as supra
system, leader which is working for the organisation is recognises as system, team which
are working in organisation is assumed as subsystem and the leader with followers are
known as component of system.
 Continuous improvement model: This model is based on the continuous improvement
of organisation on the basis improving the products and services of organisation.
Implementation of this model by Coca cola and Pepsi helps in attainment of
predetermined objectives and targets in effective manner within stipulated period of time.
For successful implementation of this model there is need to follow this cycle which is
mentioned below (McLoughlin, 2011).
PDCA cycle: It is used by both companies for making their performance better application of
different methods which are given in this cycle.
- Plan: This includes the process related to determination of opportunities and preparation of
plan for make changes.
- Do: This step includes about the process of application of the changes on small scale in
organisation.
- Check: This step includes the process of identification of outcomes which are emerged due to
acceptance of changes and find out the differences which are happen because application of such
changes.
- Act: If the change is successful implemented and help in growth of business then it can be
applied on the large scale in company and identify their results. If these changes are not work,
then it is the duty of the management to introduce the cycle with the help of many other
approaches and reduce the impact of change on the behaviour of individual and teams and
overall organisation.
 Bohner and Arnold change impact analysis theory: This theory is applied by both
companies to reduce the negative impact of change on the organisational behaviour. This

theory helps the management in identification of consequences of change and provide the
mitigating measures to effectively accomplish implementation of changes to achieve their
desired results and objectives. This helps the company in preparation of the strategies
which guides the employees to accept the changes reduce their negative impact ion
performance. This evaluation helps in identification of risks associated with the change
including its effect on resources, effort and schedule. This can be classified into three
types Trace, Dependency, Experimental.
TASK 2
P4 Different barriers of change and their influence on leadership decision making
Force field analysis: This helps in evaluation of the pressure which can be faced by the
organisation during acceptance of change. This analysis shows the equilibrium between force
which drive change and others that resist change (NHS England, 2016).
Step 1: Proposal for change
This includes the process of fixing of goal and objective behind the acceptance of change
in organisation.
Step 2: Determination of forces for change
This includes the process of identification of the forces which are become the reason for
making changes. This includes internal and external drivers:
 Outdated machinery
 Low morale of employees
Step 3: Identification of their forces against change
This includes the factors which restrict to make changes. Internal resistors includes:
 Fear of unknown
 Organisational structures
Step 4: Assigning of scores
This include the process of scoring of every factor from 1 to 5 on the basis of their
weaknesses and strengths. This helps in identification of the force which have huge impact on
change.
Step 5: Evaluate and application

This includes the process of evaluation of the different forces and their impacts on
organisation. This helps the company in implementation of the change in organisation effectively
and achieve their desired results.
Different barriers of change and their impact on leadership decision making
There are many barriers which are present in Coca cola which restrict the acceptance of
change and influence the decision making of leaders. The main barriers which affect the
acceptability of change includes employees, government, environment etc. This will also reduce
the ability to improve their existing performance and expand their business activities. This will
also reduces their capabilities in attainment of competitive advantage. Some other barriers and
their impact are define below:
 Employees: This is the largest barrier which is faced by Coca cola in acceptance of the
changes. Employees are not ready to change their fixed routines and development of their
knowledges. This will reduce the ability of manager to make their decisions regarding
different important functions (Pelling, 2010).
 Government: There are many regulation which are provide by the government and
adhered by the company in performance of their functions. Sometimes these regulation
are not allowed to make changes in the company regarding the process or in
organisational structure which affects the quality of their products and anything which is
not allowed by government in country.
 Environment: This includes that change which is going to happen in organisation has
the reason to increase pollution. Then this will also be barrier and effect the decision
making of leaders.
TASK 3
P5 Different leadership approaches to deal with the changes in organisation
There are several approaches of leadership that can be utilised by management of Pepsi
and Coca-Cola in order to enhance performance of their employer or leaders as well as
encourage their skills of dealing with changes in effective way. Such approaches of leadership
are optimised for controlling and effective administration of situations in context of modification
in technology, employee behaviour later nation and competitive pressures. The approaches of
leadership that can be implemented through management of enterprise are motioned as below:

 Approach of Situational Leadership: This is one of major concept of leadership that
claim that the style or strategies of leadership should changes according t vary of
situation and conditions. According to this theory, the follower is not need to manage the
changes in themselves. Under this leadership theory, according to follower level, leader
changes the style of leadership for proper leading and guidance to make functions more
effective. This states that strategies should changes constantly in order to attain the
employee expectation and requirements in a company with various situation emerged in
an organisation like Pepsi and Coca-Cola. Approach of Transactional Leadership: The major approach of this theory of leadership
is to control the functions flow in a organisation to meet the effective outcome of
activities in efficient way. This is also known as Ship Float cause of its characteristics.
The leaders who utilised the transactional theory of leadership for stimulation worker can
enhance their performance in best ways. For it, rewarding and compensation process is
being managed by worker in order to enlarge their courage and dedication toward work. Transformational Leadership Approach: These leader have to work on great operations
and activities in order to stimulate their employee in an organisation. This theory refer to
a style in which leader perform with subordinate to recognise required changes to guide
by creating vision or purpose by motivating and implementing changes among employee
or members. This is used for motivating, building and enhancing performance of worker
at different changes level for accepting the modification (Reiman and Pietikäinen, 2012).
Application of approaches of Leadership in Coco-Cola
There are various type of alternation that Pepsi and Coca-cola have adopted for dealing
with pressure of competitive changes in structure and technology as well as its management.
These issues affect the performance ability and skills of functions. In order to adapt these
alternation or modification, Coca-cola can adopt these two approaches of leadership which have
been mentioned under: Situational Leadership Approach: This support the workplace flexibility to worker as
well as leader in regard of using their plan or strategies according incurring of enterprise.
The company have faced majorly technology advancements changes in their system. This
is fundamental to introduce worker with new technology for which leaders have to
organise training and development session for worker to enhance their knowledge.

 Transformational approach of Leadership: In this theory, leaders have to focus over
employee relations, stimulation, team performance and coordination etc. This contributes
in creating effective teams as well as avoiding the changes management negative impact
from enterprise. Coca-Cola need to manage their employee relation among their worker
for better functioning and coordination of operations (Thomas and et. al., 2013).
CONCLUSION
It has been concluded from the above report that, changes are important for sustainable
development of Coca cola and Pepsi. It is important for both the companies to accept the changes
and improves their performance in market. There are large number of benefits are derived from
changes which are competitive advantage, increase profitability, helps in capture large market
share etc. But this will also affect the leadership behaviour and behaviour of employees of
company. There are many barriers which restrict to accept these changes and affects the decision
making power of leaders. To effectively accept this need to application various leadership
theories and other important approaches.

REFERENCES
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