HS3021 Strategic IS Management: Social Media at PepsiCo Russia

This report examines PepsiCo Russia's strategic use of social networking to enhance internal collaboration and external marketing. It analyzes the company's background, organizational environment (both micro and macro), and key factors influencing its social media strategy. The report includes SWOT, Lewis Kurt Force Field, and Value Chain analyses, along with a PESTLE analysis of the macro environment. It reviews the strategic information systems and disruptive technologies employed by PepsiCo Russia, highlighting drivers and barriers to implementation. The report also discusses strategic planning, project management, and change management approaches, concluding with an evaluation of the company's business IT/IS and IS/IM alignment. The analysis emphasizes the importance of social networking in improving employee collaboration, promoting new products, and ultimately driving business growth for PepsiCo Russia.

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Abstract
Information system (IS) is a base of most organizations in the present era. In addition, social media is helpful in
marketing and advertisement of any business. Most of the organization are having their group on social media
platform in which all their employees connect with each other and share their issues and information in that
group. It can also use for the marketing of new products and services.
This report will explain about background of PepsiCo Russia and analyze its strategies to connect all the
employees through social media. It will also describe the role of social media in business of PepsiCo Russia and
different consequences of social media on the company.
This report will describe the key drivers for the company and barriers of the company and its strategic planning,
implementation, evaluation, and alignment in the later sections.

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Table of Contents
Abstract.................................................................................................................................................................... 1
Introduction..............................................................................................................................................................3
Background..............................................................................................................................................................3
Analysis and Discussion...........................................................................................................................................3
Organizational analysis (External and internal environments)..............................................................................3
Micro Environment:.........................................................................................................................................3
SWOT analysis.....................................................................................................................................................5
Lewis Kurt Force Field Analysis:.........................................................................................................................5
Value chain analysis.............................................................................................................................................6
Macro Environment:.........................................................................................................................................6
PESTLE analysis..................................................................................................................................................7
Strategic information system / Disruptive technology review..............................................................................8
Drivers and barriers..............................................................................................................................................9
Strategic planning, project management, and implementation approach including change management:............9
Strategy Evaluation, Business IT/IS and IS/IM alignment.................................................................................10
Conclusion..............................................................................................................................................................11
References..............................................................................................................................................................12

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Introduction
PepsiCo is a well-known company in the world and it provides the best products and services to its customers. It
has many latest technologies to manage their work. Information system (IS) is having an important role in the
growth and success of an organization. In the present era, social networking sites have used for advertising,
marketing, and other business purposes. Therefore, it is necessary for pages, group, and social account on social
media, which provides many benefits to the company (Newberry, 2018).
PepsiCo Russia is already using Microsoft SharePoint for collaboration of all the employees and manages all the
documents properly. The company has more than 18000 employees. Therefore, it is necessary to make
collaboration between all the employees, which makes an impact on the profit, performance, and growth of the
company.
Background
PepsiCo Russia is the largest food and beverage business in the Soviet Union’s different countries including
Russia. The company has many employees groups that have no shared history. It is a huge challenge in front of
the company to make them at the same place to manage in a better way. The company has decided to put all the
groups in a single group using social media sites, such as Facebook, Google+, VK, LinkedIn, and many others.
PepsiCo has used Microsoft SharePoint to provide collaboration between all the employees and the company. It is
used to integrate all the employees, such as social networking concept. Now, SharePoint creates a new feature,
which is social networking. That feature has many options as all social networking sites provides to their users,
such as tag, access other groups, rate content, consolidated views, and many others. Users can provide their
feedback on the portal.
The company had already developed a general-purpose portal, which is called WSS. It is an internal process and
server provides a fast response of queries. It has many options for the company as well as for users. The company
wants to publish their new products and service through social networking sites, such as caviar, potato chip of
crab-flavored, homemade Russian breadcrumb snacks.
The company wants different features for new products launching and feedback, such as document management,
a new enterprise portal, and social media utilities.
Analysis and Discussion
The analysis is a required phase of any process. It provides help to make the successful implementation of a
process. PepsiCo Russia requires an analysis for the implementation of a new enterprise portal and document
management system.
Organizational analysis (External and internal environments)
There are many internal and external environmental factors, which makes a huge impact on the company. Every
organization is having a different business environment. It is divided into two categories, which are micro and
macro environments. Beside it, microenvironment has a direct impact on various functions of the company, the
macro environment influences all business group at large scale, and it is a general business environment.
Micro Environment:
Microenvironment makes a direct impact on the business activities of the company. It includes six things majorly,
which areas:

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Source: (Surbhi, 2015)
Customers:
Customers are the most important part of a business because they provide huge benefits to the company. PepsiCo
Russia has always provided better products in the food industry and it makes a good image in the customer’s
mindset. The company should consider their customers in strategies to manage all the things. Facebook is having
a maximum number of users in case of social networking sites. The company should consider that factor and
manage all marketing and advertising through Facebook to enhance their business (Lua, 2019).
Media:
The company uses different media for marketing and advertising. From the last two decades, social networking
sites are highly used for business purposes (business.gov.au, 2018). Those sites have a business model to provide
huge profit to their clients using advanced technologies, such as artificial intelligence, machine learning, and
many others (Castelluccio, 2017).
Shareholders:
Shareholders make a huge impact on the company. It is necessary to consider shareholders in designing new
strategies. There are many shareholders of the company and social media will provide a better profit to their
shareholders in terms of cost and time.
Employees:
Employees are the assets of an organization. PepsiCo Russia is having 18000 employees, which is a big number.
Therefore, the company should manage its employees properly through intrinsic and extrinsic benefits. Social
networking sites make them all employees at the same platform to share their views about new products of the
company for improvement.
Suppliers:
Suppliers play an important role in the growth and success of the company, as suppliers provide raw materials for
different things. Therefore, it is necessary for the company to manage its suppliers to increase the profit and
performance of the company.

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Competitors:
In the present era, most of the businesses have many competitors in the market. The company has many
competitors in the market, such as Coca-Cola, Nestle, MARS, Mondelez, Hershey, and many others (Barney &
Hesterly, 2012).
SWOT analysis
Strengths Weaknesses
Internal Factors
 Have a good image in the
market
 Better products
 Quality services
 High collaboration between
employees
 Weak IT infrastructure
 Marketing and advertisement
issues
 Less collaboration
Opportunities Threats
External Factors
 Use of Social networking sites
for collaboration
 Launch new products in the
market
 New companies in the food
industry
 Lack of collaboration
Lewis Kurt Force Field Analysis:
It is used to identify different forces for the company using driving forces and restraining forces.
Source (Connelly, 2017)

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Value chain analysis
Source: (business-to-you.com, 2018)
The above diagram is showing value chain linkage between different things of an organization. In addition, the
company should manage their processes based on technical innovations to get high margin from different
services.
Source: (business-to-you.com, 2018)
Macro Environment:
Macro environment makes indirect effects on the company, as it is at a large level. There are five main factors,
which makes a huge impact on the profit of the company.

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PESTLE analysis
Political environment Political conditions are making an impact on the performance and profit as
taxes are applied to the products and service by the government. In the
case of international business, it affected at a high level.
Economic Environment: This environment factor makes huge changes in the growth of the
company. The economy of a country provides many benefits to the
company, as fewer taxes make a huge profit for the company. The
economic crisis makes a huge impact on the growth of the company.
Social Environment: In multinational companies, different types of employees working belong
from different cultures as well. Therefore, it is necessary to manage the
cultural difference between employees and provide them health and good
environment for work, which will provide high profit and high
performance to the company.
Technological Environment: Technologies make different impacts on the business activities of the
company in the present era. Disruptive innovations are making a huge
impact on the growth of the company (Bhushan, 2014). Social networking
sites are highly useful for the marketing and business of the company.
PepsiCo Russia is already used SharePoint to collaborate all employees
and document management.
Environmental factors: Environment conditions make an impact on the revenue, success, and
performance of PepsiCo Russia. Because of bad weather conditions,
employees are not able to do their work properly. In the case of the Soviet
Union, there are many issues regarding weather conditions. Especially in
Russia, weather conditions are frequently changed because of climate
change and global warming.
Legal environment: Legal actions make an impact on the growth and profit of the company as
well. Intellectual properties are used to secure innovations of the company.
In addition, users are increasing on social networking sites every year according to many surveys. Facebook is a
highly famous and popular social networking site, which is having more than 2 billion users based on the latest
survey in 2019.

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Source: (Barker, 2018)
In the above diagram, between the years 2010 to 2021, the number of users is increased by 2 billion on social
networks. The company can take advantage of this in their business activities, such as the promotion of new
products and services.
Source: (Barker, 2018)
Strategic information system / Disruptive technology review
PepsiCo Russia has its own information system to manage their business operations and provide collaboration
between different employees groups. It is necessary to manage security and privacy as well. An information
system can manage different things of the company, such as sales, marketing, accounting, finance, purchase,
supply chain, human resources, customer relationship, and many others (Christensen, et al., 2015).

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Source: (erpinnews.com, 2019)
An information system is highly required to manage different business functions of the company, as shown in the
above diagram.
Drivers and barriers
There are many key drivers to enhance the efficiency of workers and the growth of PepsiCo Russia. It is
necessary to manage those drivers using technologies. Technological changes make a high profit for the company.
There are many technologies in the present era, which can be used to optimize different business processes of the
company, such as ERP, CRM, HRM, and many others.
Innovations are playing a huge role in the growth of the company. In the food industry, new products are
increasing the number of customers as well.
There are some barriers, which make a huge impact on the performance of employees, such as collaboration
between them. Social networking site can be useful to prevent the company from such types of impacts on profit.
Strategic planning, project management, and implementation approach including
change management:
PepsiCo Russia is using SharePoint for document management and collaboration in different business processes
and employees (Goodman & Dingli, 2017). There are many advantages of SharePoint, such as satisfies
regulatory, manage and reuse content, simplify business access, security, fast speed, and many others. It provides
many better services to the company (Anderson, et al., 2015).
Facebook and other social networking sites are also having all those facilities to manage their business and
collaboration between employees. It is necessary to use suitable social networking sites for business (GEOVIA,
2017). There are few businesses, which can fulfill their business needs from SharePoint, LinkedIn, Google +, and
others (Barney, 1991).
PepsiCo Russia should go for Facebook to manage their business activities, such as project management, and
implementation of new business processes. It makes a huge impact on the profit of the company (Bharadwaj, et
al., 2013). In addition, change management is necessary to provide knowledge about the technologies and
innovation role in the growth of the company (GRATTON, 2017). Employees should aware of the changes in the
company and they must know the advantages of the change and its impact on the performance and growth of the
company (rasahmi, 2012).

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Strategy Evaluation, Business IT/IS and IS/IM alignment
The company should evaluate its strategy for the development and implementation of new technologies in their
business. Information Technology makes huge impacts on the growth and success of the company (Henderson &
Venkatraman, 1999).
Source: (businessenergizers.net, 2019)
Strategic alignment is necessary to manage all the things properly to avoid different issues. There are many
examples of failure in the implementation of information systems ( Franken, 2014).
Source: (Group, 2011)
In addition, the company should use Facebook for the social marketing of their new products and services, such as
caviar, potato chips, and many others ( Garfinkel, 2018).

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Conclusion
In conclusion, the social networking site is playing a key role in the success of new products and services of a
company. Therefore, it is necessary to create an enterprise portal on social networking sites to manage different
documents and provide knowledge about new products and services of the company. It provides better results and
provides many benefits.
The company had an enterprise portal based on SharePoint, which is WSS. It provides many facilities to the
company to collaboration between different employees and document sharing and management. WSS is better to
manage all the requirements of the company but there is the main issue, which is outside users. Actual customers
are having their account on other social networking websites, such as Facebook, Google +, VK, LinkedIn, and
many others.
It is necessary to use a social networking site for a new enterprise portal, document management, collaboration,
social networking features, which provide help in the launch of new products. The company should for Facebook,
as it is having more than 2 billion users. This report has provided internal and external factors for the company
through SWOT, value chain analysis and PESTLE analysis.
Finally, the company should go for Facebook, which has the largest number of the user. It will provide global
exposure to their products and services. There are many benefits of Facebook in business and it will increase the
revenue, and performance of the company.

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