Understanding and Leading Change: Pepsi and Coca-Cola Strategies

This report examines change management strategies, leadership, and their impact on Pepsi and Coca-Cola. The analysis begins with an introduction to change management, followed by an examination of the impact of change on operations and strategies, highlighting the influence of market tactics, competitors, and customer preferences. The report then delves into the effects of internal and external drivers on leadership behavior, individual performance, and team dynamics within both companies, including technology, organizational culture, political factors, and economic conditions. Finally, it discusses measures to mitigate the negative impacts of change, such as employee resistance, expenses, and morale, and emphasizes the importance of effective communication and support systems to ensure successful adaptation and maintain a competitive edge in the beverage market. The report concludes by emphasizing the importance of adaptability and strategic planning in navigating the complexities of the business environment.

Understanding And
Leading Change

INTRODUCTION
Understanding and leading change make participates meet their problems that come from
implementing and initiating change. They will examine a change processes and a political,
psychological and issues of organisation generate. Categorizing a different challenges and
specific problems are identify for initiators, recipients of change and implementers. Understand
why initiatives changes are failed and dealing with resistance as well as finding factors of
successful change. Company Pepsi and coca cola are a two premier global brands of consumers.
Both are a most popular beverages of carbonated in the world (Doppelt, 2017). Companies are a
spite of winning a wars taste of blind. Companies are targeting a same marketers. These both
companies intended to serve as a again creating drinks for fun, entertainment and parties. Both
having a little way of difference between a Pepsi and coke. They will discuss a managing a
impact of change, decision making of leadership and leading change.
TASK 1
P1. Impact on operations and strategy changes of Pepsi and coca cola
Change: Changes happen in strategies and structure of organisation due to a environment
changes of business. Present factors of environment of business are important drivers for changes
happen. It includes market tactics, competitors, culture, preferences of customers and
technology, etc. There is a big impact of all these factors on a business activities on both
companies. They require to take care of different aspects of their sustainable development.
Changes are accepted and they provide us a lots of opportunity to capture a larger share of
market and relations with customers for a long time. So, it is necessary for both the companies to
find out a strategies and changes.
Two companies i.e. Pepsi and coca cola are operating their action of a business on a
worldwide which is given as below:
Pepsi: After 1961, organisation called as Pepsi. Organisation also manufacture a carbonated soft
drinks. Many of varieties are provide by a organisation such as Pepsi zero sugar, diet Pepsi,
Pepsi vanilla, crystal Pepsi etc. for competing with a coca cola and for capturing a large market
they have make a new strategies and changes (Fullan, 2014).

Coca cola: It is a soft drink of a organisation which gives them a variety of products such as
coca cola diet, caffeine free coca cola, diet coke etc. Organisation products sold in 200 countries
or more than that and daily 1.8 billions soft drinks are consumed by consumers on daily basis all
over a world. It is a largest organisation which is having a largest value of brand equal to google
and apple. Main competitors of a organisation is Pepsi which make coca cola think about the
changes and new operations and strategies.
So, accept their changes and improve positions of both companies for introducing new strategies
and policies to increase their business.
Strategies Pepsi Coca cola
Strategies of pricing Pepsi is a soft drink
organisation and having a
largest competitors of coca
cola in a market. To attract and
capture a consumers towards
their product they also need to
do the changes in a pricing
policy. Decision of price is
decide through a products
price as per competitors soft
drink in a market. It enables to
understand their capture of
consumers and strategies
(Hallinger and Bryant, 2013).
Coca cola is a large brand
having operations at a largest
worldwide scale. Main aim is
to maintain a quality of a
product and giving them a
different kind of product as per
consumers needs. Pricing is a
main thing which effect sales
of product of a organisation.
Understand what consumers
having their needs and what
they are ready to pay for their
products according to their
interest of customers. It help in
making a position and be with
competition.
Marketing strategies Its main promotional tools
used by management of Pepsi
for capturing market like
articles, magazines and
electronic media etc. this help
It help in increasing of sales
and profit of organisation.
Promotion tools of
management is newspaper and
social media. It help in

to reach a worldwide to attract
consumers of different regions.
attracting youngster and save a
cost.
Process It still processing a same
process provide products
through the stores. Having
own importance due to having
a face to face interactions with
consumers as well it help in
influence behaviour in product
choices.
More than 200 countries coca
cola is having their business.
For improving they adopt a
online technology for saving
time of staff and consumers.
Change Impact on Operations and Strategy: The changes whether large or small are affecting
the operations and strategies which are formulated by business organisations. The firms which
are utilising their services in effectual and planned ways are evaluated below as
Coca-Cola Pepsi
Change drivers High competition Innovative products
Strategy They are executing business
strategy
They are implementing
corporate strategy
Operations The operations of business are
changing very frequently and
there main focus is on
operations in order to retain
customers and earn
profitability.
The operations of Pepsi are
based on different types of
online services and they are
earning high profitability from
their online operations thus
established a position of largest
retailer in the market.

P2. Effect of external and internal drivers on leadership changes, individual behaviour and team
Internal and External drivers having a negative and positive impact on the behaviour of
leadership, employees of both companies and teams (Jones and Harris, 2014). Management
having duty that Pepsi and coca cola have to analyse both factors internal and external which
effect ability of teams and employees for effectively performance of a functions and targets with
in a stimulated time period. Internal drivers are the factors which contains both management and
company have control on them. It includes such as employee morale, organisation culture,
technological capacity etc. external drivers are which present from the environment of business
which affect ability of both company deliver their functions. It includes such as technological,
social, political, economical etc. These all factors are not in control of both companies Pepsi and
coca cola.
Impact on leadership behaviour, employees and terms internal drivers of coca cola and
Pepsi
Internal drivers and their impact define of both companies: Capacity of technology: Both companies capabilities accept a new technology, process
and methods in performing of functions ( Suchman, Sluyter and Williamson, 2011). It
help for a long term benefits. It effect behaviour of teams as they are not ready to accept
change and their ways of working. Affect employees for working with a new technology. Culture of organisation: It includes a study process of behaviour of teams and employees
of both companies. Affects in maintaining a good terms and create innovation among all
employees. Determine the differences of culture and adopting of policies regarding them.
 Financial management : Finance is a most important for motivating employees to work
hard. They not get salary according to their performance also demotivate them in
company.
Impact on leadership, individual behaviour and team through external factors in Pepsi and
coca cola Political factors: political factors include tax policies, political stability, government
policies etc. put an huge impact on both companies. Concentration given on major factors
such as quality motivation of manager and factor which affect leadership which stop in a
growth of individual and teams.

 Economic factors: business functions and economic conditions of a country are
interrelated functions with one other. Activities of business is based upon economic
environment. Reduce capability of organisation preparation of effective motivators and
teams employee for staying for a long time ( Kotb and Roberts, 2011) Social factors: CSR activities are included by a company which help in attracting a fresh
talent employees towards their company. It helps in building a morale of teams they work
for society benefits.
 Technology factors: factors include discoveries, inventions, advancement of
technologies, better techniques. It reduces a employees ability and performs of teams
their functions because they are not ready for developing skills and learning new
concepts. Because they are familiar with a old technologies and not want to accept their
changes in procedure and routine ( Peters, 2012).
From the above it is analysed that changes are important in order to manufacture products
according to needs and wants of customers. The firms should analyse all its internal and external
factors so that employees can carry out their working in effective manner and this results in
satisfying needs of customers. Internal drivers are the factors which includes both management
and company have some control on them. It includes such as employee morale, organisation
culture, technological capacity etc. external drivers are which present from the environment of
business which affect ability of both company deliver their functions. It includes such as
technological, social, political, economical etc. These all factors are not in control of both
companies Pepsi and coca cola.
P3. Measures to minimize the negative impact of changes on organization
Changes in the organization is essential to minimize the risk which can influence culture
and behaviour. Committees can be organized to minimize the negative influence of changes in
company. This helps organization to increase the market share and to become market leader.
Through this, workers can perform better and company can increase the revenues. The steps
which reduce negative influence of changes on organization's i.e. Pepsi and Coco-cola are-
 Employee resistance – Changes can influence the beliefs and behaviour of various staff
members. Both companies have to create new policies and rules. They have explain to
staff members regarding adjustment of changes and tell them that they will not loose their

positions. Firm can also explain benefits of adopting the changes so that their enthusiasm
level increases and they can easily adopt new changes in organization.
(Source: 'Where Do Your Employees Fit On the Engagement Resistance Curve', 2018)
 Expenses – These include the expenses in investment in various sources. Coca-Cola and
Pepsi are two big organisations that have large amount of assets. These companies have
to assess the financial need and then accordingly, they can spend in their goods. This
helps them in reduction of unnecessary spending in product which can minimize per unit
cost and will ultimately increase the income and market share. Lack of support and failure – There is no proper communication between all employees.
Manager of both companies motivates all employees so that they can perform better.
They needs to be explained that they will not loose their jobs and they can earn more
revenues. Thus it increases the enthusiasm level of staff members, they can easily achieve
the objectives and goals. It leads to enhancing performance. Morale – Due to the changes adopted in organisation, workers can lose their zeal and
spirit to perform better. So, employees are needed to be supported so that they can
perform better. Thus, members can achieve their goals and objectives to complete a
particular project. This helps them in accelerating the confidence level of workers which
Illustration 1: Where Do Your Employees Fit On the Engagement Resistance Curve

ultimately enhances their skills. Thus, it results in enhances performance. So, company
can earn more revenues and give strong competition to others. Communication – Managers have to properly interact with all employees. They can
delegate different roles and responsibility to staff members. They needs to explain about
their duties and all problems and issues are needs to be solved. Through this they are
motivated and they can perform better. Thus they can easily achieve their goals and give
good results. Hence it increase the productivity of all workers.
 Conflict resolution training - Both organization's Coca - Cola and Pepsi can provide
training to workers to solve the conflicts and issues in the firm. This helps the staff
members to understand each other’s action and their opinions which minimize the
problems between them. Employees can work better which raises performance of
company.
 Burke Litwin change model – It includes various dimensions which includes the
internal and external environment. This impacts the individual, leadership decisions and
behaviour. There are 12 dimensions are-
External environment – It includes the changes in the firm. Firm adapts the innovative
technologies so that creative and unique products can be produced. Thus it improves the quality
of the product.
Mission and strategies – Coco-Cola has to make clear mission and strategies for creating the
products. Thus employees do not have any confusion regarding the goals and they can make
plans and policies to achieve them. Through this employees can work efficiently and effectively.
Leadership – Coco-Cola has to follow the structure in which there is a leader and employees.
Through this structure authorities and responsibilities can be easily be established. Thus it
reducers the conflicts and disputes.
Organization culture – All employees have to follow the rules and regulations of the
organization. Through this employees can become more disciplined and punctual. They can
complete their work in time.

Structure – Organization can follow the structure in which there is a manager and employees.
Manager can delegate responsibility to employees. Through this all staff members can become
responsible and can work efficiently and effectively. Thus they can achieve their targets.
Management practices – Organization can make plans and policies so that manager can
supervise the employees. This helps in reducing the conflicts and disputes in the firm.
Work unit climate – Organization tries to maintain friendly environment among all employees.
Thus employees can understand each other and there are no disputes among them. It also results
in increasing of productivity.
Tasks and skills – Manager selects the employees according to their abilities. They are given that
job in which staff members can perform well. It helps in improving the quality of work and
increases the productivity.
Individual needs - Manager take views from the employees and implements them in creation of
plans. Through this all staff members are motivated to perform better. Thus it improves the
performance of employees.
Motivation – Employees are to be motivated so that they can perform better. This reduces the
tension and stress of staff members. They give good results.
Individual and overall performance – If individual performs well and achieve their targets it
directly improves the organization performance. It results in growth and success of the firm.
System – Organization can follow a proper system including input,process,output and feedback.
Through it there is no confusion and disputes. It results in smooth functioning of firm.
Conclusion – Through following the Burke Litwin Model employees can work efficiently and
effectively. It results in good functioning of the activities and tasks. This leads to increasing of
the productivity. Thus it leads to growth, success of the company and firm can maintain unique
position in the industry.

TASK 2
P4Barriers which impact change and leadership decisions -
There are various barriers in the company which can influence leadership behaviour and
decisions. So, every organization has to fix some goals,create mission for efficient functioning of
different departments. Administrator and leaders can make plans and strategies for
accomplishing the objectives and for smooth running of the company. It helps the company to
take different judgements. Various barriers of Coca-Cola and Pepsi which can influences change
and leadership decisions are - Past experiences – Experienced manager can apply their own knowledge and skills in
setting of plans and strategies. They follow their own skills of past jobs in new
professions. Administrators do not evaluate recent trends and apply their knowledge thus
all activities cannot perform efficiently. Leaders cannot take decisions regarding setting
of plans and policies. Thus they cannot guide all employees and as a result all staff
members cannot perform well. Lack of Knowledge and information - Managers and leaders both have complete
knowledge of the tasks and activities in companies. They try to get data about competent
and disciplined employees who can accomplish objectives of the firm and can work
better. This helps them in making decisions related to ideas and policies through which
all operations can run successfully which leads to growth of company. If leaders do not
have proper knowledge of skilled staff members, activities and tasks of departments then
they cannot take correct decisions about company and enhance performance of the
organization. Costs and budgets - Leaders have to gather data regrading budgets of company. It help
the leaders to know the areas in which they have to invest and earn more profits. If
managers do not have full knowledge of budget then they cannot take decisions regarding
investment in activity which increase the revenues and productivity. It directly results in
less revenues and low growth of firm. It also results in declining performance of
companies.

 Lack of employee involvement – Sometimes, employees resist changes in the company.
They cannot easily adjust to new plans and processes as they have of losing their
occupations and positions. So, workers do not perform activities and operations properly
which reduces the productivity in company. Thus, leaders have to explain staff members
to adopt those changes and advantages of new policies so that workers can perform
accordingly. Thus, staff members can achieve their objectives and perform better. This
leads to increment in revenues and growth of the company. Lack of communication strategy – Sometimes leaders do not properly interact with all
staff members regarding objectives, plans and policies of firm. Hence all workers cannot
have knowledge of processes and task of various operations and tasks. Thus they cannot
perform better and do not give good outcomes. If leaders do not properly communicate
with all employees thus they cannot take decisions regarding employees roles and
responsibilities. Due to this they cannot guide and supervise all staff members regarding
their duties which negatively impacts worker's performance.
 Organization complexity - Sometimes, company adopt complex process, operations and
activities to give the best outcomes with minimising expenses. All workers cannot
perform with effectively as they do not have knowledge of performing the tasks
Therefore, company can employ trained, competent and skilled members to increase the
efficiency in organization. Thus, it helps in increasing the revenues and enhancing
performance of firms.
 Systematic theory – It is the group of all factors so that organization can achieve the
objectives and goals. Through this employees perform well in the firm. This theory
consists of four components-
Input – Input includes the internal components in the company. Leader have to provide salary
and recognize them through promotion. Through this employees cannot feel demotivated and try
to achieve their targets and goals.
Process – It includes various factors which affect the firm. Internal includes the employee
satisfaction and motivation. So leader supports and motivates employees so that they can achieve
their goals. Through this employees do not feel demotivated. External includes the competitors