Leadership and Change: Pepsi and Coca-Cola Analysis Report

This report provides a comprehensive analysis of change management and leadership within the context of two major beverage companies, Pepsi and Coca-Cola. It begins by comparing the impact of change on the strategies and operations of both organizations, highlighting their differences in pricing, process, and marketing strategies. The report then examines the effects of internal and external factors on leadership changes, team dynamics, and individual behavior within these companies, utilizing a PESTEL analysis to assess the influence of political, economic, social, environmental, and legal factors. Furthermore, it evaluates various measures that can be taken to mitigate the negative impacts of change on organizational behavior, such as effective communication, addressing employee resistance, and managing financial implications, lack of coordination and conflicts. The report concludes by exploring different leadership styles suitable for navigating organizational changes and offers insights into the practical application of these concepts in a real-world business setting.

Understanding And
leading Change
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Comparison between two organisation according to impact of change on strategy and
operations...............................................................................................................................3
P2. Effects of internal and external elements on leadership changes, team and individual
behaviour................................................................................................................................5
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour........................................................................................................7
TASK 2............................................................................................................................................8
P4 Explain different barriers and their influence on leadership decision making..................8
TASK 3..........................................................................................................................................10
P5 Different Leadership styles in order to deal with organisational changes......................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
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INTRODUCTION
Every business have to operate in the environment which keeps on changing with time. It
is very crucial for management of company to perform environment scanning in effective and
efficient way. There are number of external and internal factors which influence in different
mode. It is interpreted that adopting in accordance with modifying situation. This report point
cases of most important and popular beverage company that is Pepsi and Coca Cola. Both these
organisations are different in number of ways in process and structure. Under this assignment,
changes that can be negative and positive have influence in distinct and variant manner is
included. There are diverse elements in the form of teams, management and structure that
purposely have to be managed. Both these company operates in similar environment and
industry. The competition is tuff for these organisations. All these aspects are discussed under
this assignment.
TASK 1
P1 Comparison between two organisation according to impact of change on strategy and
operations
Changes are something which involves modification in policies, rules, regulations in
accordance with the business environment. Changes are performed in strategies and organisation
culture which is moulded in accordance with that. Every company have to consider these
alterations in order to excel in their fields (Yoder-Wise, 2014). There are number of impacts on
business operations in variant way. In order to full fill the ultimate objectives and goals in given
time frame, they have to follow the change model effectively and properly. Sustainable
development is very essential in every industry as it helps in sustaining in cut throat competitive
environment. There are number of activities that are performed by each company (Doppelt,
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2017). They have to execute different policies, cultures, ways through which they can compete
strongly with each other.
The brief introduction about both the selected organisations in mentioned below:
Coca Cola: It deals in beverage industry which provide variety of soft drinks to their customers
like, diet coke, coca cola diet etc. It operates in more than 200 countries all over the nation. Its
market share is very large. It supplies lots of competition to other brands.
Pepsi: It also operates in same industry and offers number of products to their prospective
buyers. There are number of products like diet Pepsi, crystal Pepsi, Pepsi vanilla etc. These
companies have to operate in different changing scenario.
Basis of Difference Pepsi Coca Cola
Pricing Strategy It is a largest beverage
company having larger market
share in the market. Pricing
strategy plays a very important
role in any organisation, as
company have to establish
larger market share they have
to attract more and more
customers by supplying their
products in affordable price.
Coca Cola carry out their
operation in major part of the
country. They focus on
maintaining their quality and
quantity. It is the responsibility
of organisation to capture the
needs and wants of individual
in such a manner so that they
can make them happy. Every
organisation works for gaining
maximum profit and outcomes
in future time.
Process Strategy They operate in different style
by interacting with customers
face to face. They know when
to increase their sales in
market. They contribute in
enjoying large number of loyal
Coca cola operates in about
200 countries. They always
make efforts to improve their
strategy related to process.
They keep on scanning the
environment and competitor's
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customers in market area.
Company have to operate in
different styles and adopt
variant kind of process.
strategy to change their own, if
necessary.
Marketing Strategy Every company have its own
marketing strategy in order to
deal with their buyers or
consumers. Pepsi uses
marketing elements like
newspapers, print media,
electronic media. These helps
in covering large percentage of
customers focusing on large
part of nation. In today's world
of technology advancement
there are number of marketing
tools which are modern in
nature and can be used by the
organisation.
On the other hand, Coca Cola
focuses on increasing their
sales and market share. They
have different style of
marketing tools like social
media, newspaper. Their main
focus is on Pulling young
people towards them. They
keep on changing their strategy
with the need of time and
wants. Coca cola have to keep
in pace with the other
competitors.
P2. Effects of internal and external elements on leadership changes, team and individual
behaviour.
Every business have to face changes that can be negative and positive in accordance to their
acceptance. Changes are part and parcel of business life (Suchman, 2011). In order to maintain
their competitive advantage in the market place, they have to accept the changes. These elements
have major influence on the actions of leaders, team and employees. There are basically two
types of forces which have impact on the organisation working. Internal forces and External
forces which are around the business environment. Internal elements exits inside the structure of
management like management operation, culture, mission, vision, value system etc. On the other
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hand, External forces involves those aspects which are out of control for the system (Johnson,
2016). These may include political changes, technology factors, social and environmental
occurrence etc. Pepsi and Coca cola have to work in taking measures related to these factors.
These elements are out of control of both the selected companies.
Impact on behaviour of leadership, employees related to internal drivers of Pepsi and Coca
cola
Internal factors and their influences are discussed below:
 Organisational Factors: In this process, behaviour and attitude of worker and individuals
are evaluated and examined. It is believed that health and conducive organisation system
help in attracting more and more prospective candidates into the company.
 Technology changes: It becomes important to adopt advanced and modern technology in
order to keep in pace with the changing time. Company gets affected with the
modifications that may occur under this factor. It is directly linked with the performance
of company (Whitney, 2011).
 Finance Structure: Finance is considered essential element of all business organisation. It
may include all those factors related to salary given to employees, purchase,
manufacturing etc.
Impact on individual, leadership, team through external factors in Pepsi and coca cola
External factors are considered those which are beyond the control of any organisation.
They have direct impact on various aspects of company in various and distinct ways. Every
institution have to choose these modifications and alterations to survive in market which is full
of competition. PESTEL analysis is performed.
 Political Influences: These include policies, rules and regulations framed by government.
Every company have to operate by following these constituents. These could not be
controlled by any company. Hence, political influences are hinders performance of
company in various different manner.
 Economic Influences: Business have to operate in changing economic conditions. Every
country is classified under different types of economy. It becomes important for the
business to carry out their operations in proper way.
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 Social Influences: It is mandatory for every company to contribute something for the
society. This is known as CSR activities. It helps in increasing the motivation of
personnel in right manner so that they can perform in accordance to the mission and
vision of company.
 Environmental Influences: Environment is something which exists outside the system and
if there is any disturbances it will directly impact the structure. Hence, it becomes
essential that they take into account any environmental issues to be addressed(Hayes,
2014).
 Legal Influences: This aspect includes all policies, rules, laws, regulations that have to be
followed by organisation in order to run their business. It is the responsibility of every
institution to carry out the process in compliance of legal issues. If these are not met with
the system it may pose a difficulty for them.
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
If changes are not applied in proper manner it may create hindrances and can cause major
impacts on organisation behaviour and culture. But if changes are applied in proper and correct
manner it may lead to achievement of final targets and goals. It also helps in increasing the
market share and growth in positive manner (Salmela, 2012). If impacts are negative it possess
pressure on company management to improve their lacking areas. Company have to adopt
certain measures and concepts to decrease the negative impacts. Some elements are discussed
below to minimize the negative effects on Coca cola and Pepsi Effective Communication: It is a common problem faced by workers in working system
that there is lack of effective communication system. Hence, organisational system have
to establish proper method through which proper treatment can be given to each and
every employee. If there is any changes it should be known by personnel as they will
implement the changes. It is consider responsibility of mangers to communicate all the
necessary details to their subordinates. Problem due to resistance from employees: It is a human nature that employees defy
changes which are introduced in the system. Changes affect company's culture, beliefs
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and behaviour of personnel hence, they do not accept those changes at first time. In
facing such situation coca cola or Pepsi introduce some measure to train their workers in
order to accept such occurrence. It will help in increasing the motivational level of
workers (Stanleigh, 2013). Different type of expenses incurred: Every company carry out their operations with the
usage of finances in different types of activities. Capital is also a important element of
resources of any company. Coca Cola and Pepsi have to make proper decision regarding
proper finance system. This is basic aim of any company to achieve productivity and
reduce cost to significant level. It also helps in cutting down unnecessary expenditure of
products. Lack of Coordination: This may pose a problem as activities are less coordinated in
business system. It may arise due to several reasons like implementation of improper
strategy, lack of support from superior towards their sub ordinates. There may be cases
that messages are misinterpreted by individual in company, due to miscommunication.
For increasing the productivity and efficiency of each individual it is considered
important to enhance the performance in positive manner (Clarke, 2011). To Solve the conflicts: There is a possibility of increasing chances of conflicts between
employees in working place. Hence, it becomes crucial for coca cola and Pepsi should
execute such system in organisation to reduce chances of conflicts. This assist in reducing
the situation of clashes that may arise in contradiction of behaviour of different
employees. Each person is different from each other that causes differences in thoughts,
attitudes and lead to generation of situation of conflicts. Company create proper system in
their culture to reduce conflicts as much as possible (Nkomo, 2011). Lack of Energy in employees: As changes are introduced in organisation structure,
employees become less enthusiastic and do not become ready to work accordingly.
Hence, it is the duty of leaders to face such situation to increase their morale in effective
manner. Their basic aim and outcome should be attained.
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TASK 2
P4 Explain different barriers and their influence on leadership decision making
Their number of barriers and obstacles in every company system which have great
influence on leadership judgement and behaviour. Each company have vision and mission that
has particular goals that need to attained in given time frame (Bin Taher, 2015). It is the duty of
superior to introduce plans and policies in effective manner to remove such barriers. Proper
department should be set up to keep a check on such disturbances and proper ways must be
identified to overcome it. Few barriers of Coca cola and Pepsi that have direct impact on culture: Organisational complex structure: It can be possible some times that company adopts
difficult and complex structure that have to be applied in system. Business have to train
their people in such a manner to adopt such changes in positive way. Lack of skills: It is very much necessary that managers should have complete
information and different styles of skills. Than only they can able to inculcate different
kinds of skills to their team members. If they possess complete information about the
system, policies, skills they could able to teach other persons and make them work
according to their plans (Peters, 2012 ). Learning from previous experience: Failures are part and parcel of any business. It can
be useful if they can learn from these mistakes and do not repeat in current situation.
Methods and procedures are applied keeping in mind experiences from past situation.
Skills and performance are simply influenced by results from tasks performed in past
days. Barriers related to cost system: Cost is known as important area in any organisation to be
focused upon. It helps in making policies in such a manner that aim in reducing cost and
increase in productivity or profits in significant manner. Budgets are also included under
this aspect. It helps in forecasting for future activities. Problem in Employee Engagement: As workers resist changes and do not want to accept
such actions. Employees do not adopt such changes and align themselves according to
methods and policies. Hence, leaders have to guide their team members and give them
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chance to contribute in decision making process. This helps in increasing the motivation
as they feel to be a essential part of organisation system (Hallinger, 2013). Improper channel of communication: There can be cases when proper message, plans,
policies are not transferred to employees. This pose problems in understanding some
parts that should be properly communicated. So managers have to guide them with proper
path to be followed. There fore, organisation can work successfully and achieve se6t
targets very smoothly.
 Tuff Competition: It become very much necessary that company should look after the
strategies of other competitor's company. They have to mould their policies in accordance
with them. This can be term as barrier for them as they have to make changes in their
policy and procedures. Competition helps to build the strong structure for themselves that
will provide them base in accepting changes.
TASK 3
P5 Different Leadership styles in order to deal with organisational changes
There are several kinds of approaches regarding leadership which can be used to direct
the changes in correct direction and control impacts of modifications. It is necessary to consider
leadership having such potential for shaping the workers in such a way to successfully
implementation of modifications to achieve desired output. This is the fact that employees of an
enterprise have to accept changes willingly because they need to work on modifications to attain
more profits as well as maintain strong position in market competition. Coca-cola and Pepsi need
to apply certain approaches to implement changes more successfully in correct direction by
convince workers. These aspects are very beneficial to the organisations for managing effective
and efficient working through applying the changes. It will helps in improving productivity as
well as profitability of firms. Some of the approaches are given below:
Democratic leadership: This kind of approach considers decentralisation of power or
responsibilities to make decisions of certain plans and procedures of executing or
performing tasks or activities in working hours. This benefits to the employees for learning
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about to fulfil responsibilities of higher designation as well as to make working quickly.
Coca-cola and Pepsi have to adopt this criteria by which their employees feel valuable in
company and they have an opportunity to learn about roles of higher authority. It facilitates
easy and right transfers or promotions in enterprise as per future requirement(Dreher, 2014).
Rights to share opinions or ideas should be provided to staff members so that they can
render more useful thoughts to the superior for better modifications of policies or strategies
in an organisation.
Laissez leadership: This policy can be defined as to consider each and every employee as
backbone of company and provide them freedom to identify their own style of working
methods to complete the given targets on time (Goldstein, 2014). The firms never prefer to
bound their staff members so that it affects their working or daily outputs as they think that a
person can perform more efficiently when they feel comfort. Coca-cola and Pepsi can
implement this approach to attain better performance of daily outputs so that workers will
feel less foundation and enjoy working to produce better profitability.
Transformational leadership: This method is stated as to implement new and innovative tools or
techniques to fulfil goals and objectives successfully. It will done through unique skills or
abilities of leaders to identify requirement of changes. It is essential to motivate employees
or workers to adopt modifications an d work on them to attain better profits. Coca-Cola and
Pepsi have to accept this aspect to achieve the desired targets on time. This facilitates the
maintenance of image of brand in competition of market(Sarra, 2012).
Transactional leadership: This approach includes focus on working of employees and generated
output as per criteria. It describes to render rewards, bonus, incentives etc. to those staff
members who perform more efficiently to attain targets on time and provide better outputs
to the firm. Coca-cola and Pepsi can adopt this approach to modify its rules for workers to
attain better productivity and profitability which facilitates the enterprise to better growth
and success in business.
Coaching leadership: This criteria can be considered as to appoint a coach for rendering
guidance or motivation to staff members so that they can improve their skill, knowledge,
abilities etc. for performing better in company by fulfilling assigned targets as well(Saha,
2013).
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CONCLUSION
We can conclude from above report that changes are necessary for organisational system.
Modifications are considered to make improvements in company structure. In case of coca cola
and Pepsi both have to accept these challenges in positive manner. There are number of internal
and external factors that have major influence on structure. It is the duty of management to
consider these changes and apply them to employees so that final goals can be achieved in
effective and efficient manner. It is the world full of challenges,innovation,technology
advancement which is directly linked to working culture of company. Pepsi, coca cola have to
execute such changes in their system in accordance with the strategy and operations.
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REFERENCES
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