Leadership and Change Management: Coca-Cola vs. Pepsi Strategies

This report provides a comprehensive analysis of change management, focusing on the strategies employed by Coca-Cola and Pepsi. It begins with an introduction to the importance of adapting to changes in the business environment, including social, technological, political, economic, and legal factors. The report compares the operational strategies of both companies, highlighting their responses to market trends and consumer demands. It then evaluates internal and external factors influencing leadership, team behavior, and individual performance within these organizations. Furthermore, the report assesses measures to mitigate the negative impacts of organizational changes, such as employee resistance and financial considerations. The analysis extends to examining barriers to change and their influence on leadership decisions, as well as different leadership approaches used to manage changes effectively. Overall, the report offers insights into how these two major beverage companies navigate and lead through various challenges, ultimately aiming for improved performance and long-term growth.

Understanding and leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparison between firm's operational strategies after adopting changes.......................3
P2 Evaluate internal and external factors which affect leadership,team and individual
behaviour................................................................................................................................5
................................................................................................................................................6
P3Assess measures to minimize negative impact on changes of organization......................6
TASK 2............................................................................................................................................8
P4Barriers which influences change and leadership decisions .............................................8
TASK 3..........................................................................................................................................10
P5Different leadership approaches to deal with changes in organization............................10
CONCLUSION ............................................................................................................................11
REFERENCES .............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Changes are there in every organization. It depends on the companies capabilities and
skills to manage and adopt them. There are various new trends in business environment. These
can be social, technological, political, economic and legal changes (Anderson and Anderson,
2010). Companies have to make new strategies and plans by adopting these various factors.
These are important for efficient and effective functioning of firm. Through this organization
can earn more profits,capture more customers. It also helps company to become a strong leader
in the industry and thus they give tough competition to others in the industry. Firm can also
become flexible as they can make changes in processes and functions by evaluating recent
changes.
This report discusses about the comparison of two companies Coca- Cola and Pepsi to
make new strategies and policies after adopting new trends. Assignment also talks about the
changes in individual, team behaviour and leadership methods which affect both firms. It also
discusses the measures to reduce the negative impact on the organizations. This helps also
companies for improving the performance and for long term growth. Project also describes the
barriers of change and their influence on leadership decisions (Emira, 2010). It also discusses
about the various leadership approaches applied in companies through which organization can
run successfully. This helps both companies in expanding their businesses and can maintain a
unique position in market.
TASK 1
P1 Comparison between firm's operational strategies after adopting changes
Companies changes are important in running the activities, operations and various tasks
in the business. Organization has to continuously scan various trends such as political,economic,
legal, technological, social, demographic etc. They had to make new plans and policies
according to these various changes. It helps the firm in effective and efficient functioning of
departments. Companies can also adopt new opportunities and make innovation in their products.
Thus they can provide good quality of commodities to customers. So thus organization can
maintain brand loyalty and have a strong relationship with people. There are two firms Coca –
Cola and Pepsi which works in beverage sector in various states and countries.
Coca – Cola-

Coca – Cola was created in 1886 in Atlanta Georgia and invented by Dr John S
Pemberton. It is a popular and famous drink all over the countries and states. After few years
company has begin franchising in U.S and it expand bottles operations in various international
countries. So due to this organization is not working in a nation but it is famous all over the
world. It is a biggest soft drink and a recognized brand (Foltin and Keller, 2012). Many
customers prefer it and they others also. Through it company can earn more profits and maintains
a unique position in market.
Pepsi-
Company has started its operations in 1965. It is a international leader of beverage. Firm
has various portfolio of brands such as Tropicana, Frito-lay etc. Organization has various
operations, manufacturers which make variety of products and distribute them in various states
and countries. Main objective is to increase the sales through providing of good quality products
with minimum utilization of resources. This helps the firm in raising the standard in front of
customers . So it can captures large customers from all over the world. Thus it become very
popular brand in all countries.
Different strategies adopted by Coca – Cola and Pepsi are -
Coca - cola-
Initially Coca – cola has made products of standard raw materials, low price and has good
features. But due to legal changes and government policies company has to make variation in
different strategies. They have to provide more high quality products at higher price. This helps
in giving various benefits to customers. Firm has to put more efforts on advertising and
promotional activities to distribute the products worldwide. Secondly company has earlier
adopted word of mouth advertising in which it has various slogans, posters and decoration
customers in various retail stores. Due to the social changes such as increase in population and
demand of customers firm has changed its strategy. Now organization uses online promotion for
its various products and brands (Fullan, 2014).It is done to capture more customers worldwide.
Company has created many unique and innovative websites which give details and benefits to
the brand. So through this firm can reach to many people. Thus it results in increasing profits and
firm can expand their business.
Pepsi -

Company has initially done the merger with another firm to increase the profits and the
business. But due to competitive activities gradually the firm profits declined. So organization
has to change the operational strategy for competing with others. Company now broken alliance
so that it can focus on various products (Lee and Byun, 2012). It has to focus on quality and
price of brands so that more customers can be attracted and it can increase the market share.
Secondly Pepsi had used mass marketing strategy in which it targets to whole population and
not a particular section of group to increase the profits. There are various social trends in the
environment. So due to it one segments needs and wants are not fulfilled in a proper manner.
They are demanding more from firm. So to cover the market firm has started uses target
strategy .In this method organization create products according to requirement of a particular
group. Through this it satisfies people and can maintain the brand loyalty.
P2 Evaluate internal and external factors which affect leadership,team and individual behaviour
Leadership is a method in which leader influences and motivates the employees to work
better. He sets vision, mission and goals of team and encourage staff members to accomplish it.
Through it members can perform efficiently and effectively. Thus all functions and activities run
smoothly and successfully.
There are various problems and challenges which affects leadership, individual and team
behaviour of Coca – Cola and Pepsi are -
1. Internal changes – There are various changes in the organization which affects the
individual, leadership and team behaviour. They are -
 Brand image – It means the picture of company which is in minds of customers and
competitors. Leader has to recruit educated and qualified employees so that they can
perform efficiently and effectively. This leads to good functioning of processes and
activities. Thus quality products are produced. So it can capture more customers and can
maintain a unique and different position in minds of consumers. So it can capture more
customers and can maintain a unique and different position in minds of consumers.
The images of the brand plays a significant role in order to attract large number of
customer. This helps to influences the employee working in the organisation the sales of
the different products increases then employee working in the organisation perform their
work in proper maner and they will more loyalty from the organisation it helps to
increase the overall performance of employee as well as organisation.

 Improvements and innovation – Company has to make unique and innovative products
to maintain different position in the market. So leaders have taken decision to guide and
motivate the team to make creative brands (Parsons and Cornett, 2011). All members of
group have to perform efficiently and effectively for smooth functions of different
activities. Through this they can create innovative products which increases profits of
company .It results in growth of firm. There are different approaches of leadership which
is implemented by the organisation in order to accomplish different types of work in
proper manner. It leads to attain goals and objectives of the company. The different
approaches of leadership implemented by the organisation to handle the situation in
proper maner
 Culture of organization - Organization has make various rules,regulations for the
employees. So leaders explains all principles to staff members through which they can
become punctual and disciplined. Thus they can perform better. Employees can also
understand views and opinions of each other (Thomas and et. al., 2013). This results in
creation of friendly environment which gives positive impact on the organization. Culture
of the organisation should define to the employee working in the organisation. It leads to
achieve the goals and objectives of the organisation. The employee have to performs as
per the culture of the organisation.
2. External changes – There are various external changes which affects the individual,
team and leadership decisions (External Factors Affecting Leadership, 2018).They are described
below -
 Customers - They are the backbone of the organization. Leaders motivate and
encourage the team so that they can create products according to needs and wants of
consumers. Group members made many creative and unique products according to their
requirement. They perform efficiently to give good quality of products to consumers.
Customers are happy and satisfied as they get products of their choices and preferences.
Organisation needs to determine the customer in the marketplace. It helps to determine
the demand and want of the customer in proper manner.
 Competitors – Company evaluates the activities of competitive firms. Accordingly both
forms make changes in the plans,policies and promotional strategy to satisfy the

customers. Leaders follow various methods to encourage their team to make good
quality products at lower cost. Group members perform their roles very efficiently and
this results in increasing of the productivity. The company needs to determine the trends
which are used by the various rivals present in the marketplace. Company implement
different types of the new and innovative trends to compete different rivals present in the
marketplace.
 Technological - Various advanced technologies are there in the market. Leaders make
plan and policies to adopt various latest machines through which there is growth of
company. They give training to individual team member so that they can learn methods
to use these technologies. Thus employee can gain knowledge and creates unique and
innovative products. It increases the profits and market share which results in
maintaining a strong position in the industry. It increases the profits and market share
which results in maintaining a strong position in the industry. Implementation of new and
innovative technology leads to accomplish different types of activities in proper manner.
The manager of the company leads to perform different type of technology to accomplish
different types of company.
P3 Assess measures to minimize negative impact on changes of organization
Modifications in the organization is very crucial to reduce the risk which can affect
culture and behaviour. Committee and seminars can be done to reduce the negative effect of
these alterations on the firm (Brundrett and Duncan, 2011). This helps firm to increase the
market share and to become leader. Through this staff members can perform better and firm can
increase their revenues. Below are the measures to reduce the negative affect on both companies-
Pepsi and Coco- cola -
1.Employee resistance - Modifications can affect the firm's culture, belief and behaviour
of staff members. They follow their own policies, methods and other steps to So Coca-cola and
Pepsi both firms can give training to learn various procedures in completing their activities in
less time. This increases the zeal and enthusiasm level of workers to work better and they can
adopt the changes.

(Source: 'Where Do Your Employees Fit On the Engagement Resistance Curve', 2018)
2. Expenses – This include the expenses in investment and finance requirements from
different sources. Coco-cola and Pepsi are two firms which have huge capital (Feldman,
Hart and Milosevic, 2017). Both companies have to monitor the financial needs and then
accordingly they can put their money in their products. This helps them in reducing the
unnecessary expenses in the product which can decreases the per unit cost and ultimately
enhances revenues and market share.3. Lack of support and failure – There is lack of interaction between the staff members
who hampers the work of companies. This is due to lack of support to employees. So
managers and leaders of Coco-cola and Pepsi can motivate staff members by explaining
the benefits of these modifications. They are told that their rights and position do not
changed due to alterations of the policies and plans. Thus workers energy and zeal
increases and they can perform better. This results in improving the performance.4. Morale – Due to the alterations adopted in firm, workers can loose their zeal and to work
better. So they can be motivated so that they can give good results. Thus workers can
achieve their goals, visions and targets to achieve a particular tasks. This helps them in
increasing confidence level of workers which ultimately increases their efficiency level.
Illustration 1: Where Do Your Employees Fit On the Engagement Resistance
Curve

Thus it results in improving performance . So organisation can earn more revenues and
can maintain a competitive edge on other firms.5. Communication – There are situations in which staff members left firm due to personal
reasons. So manager can treat with full respect so that they do not face any issue.
Remaining staff members are to be told about changes in other personnel. Managers of
both firms have to communicate the roles and responsibilities to staff members (Hallinger
and Bryant, 2013). So they can give good results. Thus as a result they can
6. Conflict resolution training - Both companies Pepsi and Co-cola can provide training to
workers to solve the disputes and conflicts in the organizations. This help staff members
to understand each others opinions and their views which reduces the problems between
them. Workers can perform their work more efficiently which enhances the performance
of firm.
Lewin's change management model: Through this model there can be change in
structure of organization. There are 3 steps through which negative changes can be reduced.
Unfreeze: in this step preparing employees so that they do not resist changes. Managers can
explain about employees need of changes so that employees do not resist changes. By having
knowledge of benefits and requirement of changes employees do not resist changes .
Change: In this changes actually take place in firm. Manager can properly interact with staff
members so that their all problems can be solved. Due to this there are no conflicts in firm. So t
can reduce negative change in firm.
Refreeze: In this changes are executed by both firms. Manager assures that changes are always
implemented after accomplishing of goals. Hence employees can remain cool and confident in
various situations. Hence they do not resist changes.
TASK 2
P4Barriers which influences change and leadership decisions
There are various barriers and hindrances in firm which can affect behaviour and
leadership decisions (Harding, 2012). So every organization can make goals, vision and mission
for good performance of business. Managers and leaders can create plans, policies and strategies

for achieving targets and for smooth functioning of firm. It helps organization to take various
decisions. Various issues of Coco-cola and Pepsi which can affect leadership decisions are - Past experiences - Sometimes leaders who have different experience can create various
strategies and objectives for firms. They do not create policies and procedures according
to the situation. They apply the knowledge and skills from previous occupation. So this
leads to ineffective management of functions of different divisions. Thus workers of
every division cannot perform better and cannot achieve their goals and which reduces
their efficiency in firm's. Lack of Knowledge and information - Managers and leaders both have complete
knowledge of activities and tasks in firm's. They tries to get information about efficient
and trained employees who can achieve targets, goals of firm and can perform better.
This helps them in making decisions related to plans and policies through which activities
and tasks can run successfully which leads to increasing of productivity. If leaders do not
have knowledge of talented staff members, activities and functions of divisions then they
cannot take relevant decisions regarding firm in accomplishment targets and for efficient
performance of firm. Costs and budgets - Leaders needs to have knowledge about the expenses and profits in
budget. This helps them in judging the expenses and profits in different tasks.. Managers
have organized training programmes for all employees. (Krahmann, 2013). This helps
workers to perform various activities and tasks in effective manner with decreasing of
cost of products. Thus they perform better which enhances the profits of companies. This
helps the firms in enhancing the market share of firm and improves growth. Hence firm
can maintain strong position in market and give competition to other companies. Lack of employee involvement - Sometimes workers resist modifications in the firm.
They cannot easily adjust to new plans and strategies due to fear of loosing their jobs and
positions. So staff members do not perform activities properly which decreases the
productivity in company (MacKian and Simons, 2013). So thus leaders have to tell
employees to adopt those changes and benefits of new plans so that staff members can
work accordingly. Thus staff members can achieve their targets and can perform better.
This leads to increasing of profits and growth of organization.

 Lack of communication strategy – Sometimes managers and leaders do not properly
communicate the plans methods and strategies. So staff members cannot understand the
methods of working in various activities in their respected jobs. Staff members cannot
perform efficiently and effectively which leads to low performance of workers. It leads to
lower revenues. So leaders can properly tell about objectives and methods of completing
a particular activity which help staff members in achieving their short term goals and they
can perform better with their full effectiveness. So hence firm can run successfully.
 Organization complexity - Sometimes firm adopt complex procedures,tasks to give best
outcomes with least costs. All staff members cannot perform well as they do not have
knowledge of performing different tasks. So firm can employ competent and trained
employees to increase efficiency and growth in firm. Thus it helps in enhancing of
revenues and improving the performance of organizations.
Both companies can use force field analysis by Kurt Lewin. Through this company can
create plans and policies so that it can deal with changes. Second step is to identify internal and
external factors which can affect changes. Internal factors include motivating all staff members
so that they can easily adopt changes. External includes through use of advanced technologies
company can make changes. Third is to identify factors which can resist changes such fear and
existing structure of firm. Forth is assigning of scores meaninglessness highest to those change
which can have huge impact and give less number to those change which has less impact on
firm's activities.
TASK 3
P5Different leadership approaches to deal with changes in organization
Various leadership styles are there in each business. Pepsi and Coco-Cola change and
adopt different approaches to accomplish goals and objectives. Through this there is better
management of staff members and their tasks. Thus employees can perform efficiently and
effectively and can accomplish their goals. It enhances output in the firms. So leadership
approaches used in Coco-Cola and Pepsi are-
1. Democratic leadership – In this leadership approach leaders and managers give rights
and responsibilities to employees and for making decisions in various plans, policies and

methods of working in the job. This helps staff members to earn revenues.(Whitney and
Cooperrider, 2011). Staff members can give feedback and suggestions related to various
activities and tasks in the organizations. So thus firm's can make various modification's in
their plans and policies. This help firm's to give superior results.
2. Laissez leadership – In this leadership approach individual are treated as base in firm.
Every staff member can choose procedure of working and tactics in both companies to
accomplish their targets. This helps firms to build a self structured approach. As
employees can take their own decisions and they can select their way of completing
activities. Thus as a result they can easily achieve objectives.
3. Transformational leadership – In this leadership leader uses different skills to monitor
changes and makes goals, objectives and vision. Leaders motivates the staff members and
subordinates to perform better through different ideas. So hence employees can perform
better as they know the way of achieving their tasks. Thus staff members can perform
their activities in minimum time. Thus it leads to good performance of workers and there
is strong relationship among all employees with leader. It leads to firm's success and
growth.
4. Transactional leadership - This leadership approach emphasis on performance of staff
members. Firm gives rewards and recognition to employees for their good results.
Seminars are organized to appreciate them. It enhances the motivation, energy level and
enthusiasm of staff members to perform better. Thus they with full efficiency to achieve
their targets. It increases employee's efficiency and effectiveness level in completing
tasks and all functions runs successfully. This leads to development of organizations.
5. Coaching leadership – This kind of leadership involves a coacher who give guidance and
instruction to the employees. This results in enhancing of skills and knowledge of
employees to perform better. Thus there is rise in zeal and enthusiasm level which
enhances their performance. It leads to success of firm.
Through application of leadership approaches company can easily helps in improving
performance of employees. They can deals with changes through use of these approaches.
Through this staff members can easily accomplish their objectives and it leads to success and
growth of firm in long run. Thus they can deal with any changes by applying the approaches.