MGMT1101: PepsiCo Management - SWOT, PESTEL, and Structure

This report provides a comprehensive analysis of PepsiCo's management strategies. It begins with a summary of PepsiCo's business operations, including its global presence and financial performance. A detailed SWOT analysis is presented, identifying PepsiCo's strengths, such as strong brand equity and customer loyalty, and weaknesses, including competition and product failures. Opportunities like product diversification and CSR initiatives are explored, along with threats like health concerns and competitor pressures. The report then delves into environmental constraints using a PESTEL analysis, examining political, economic, social, technological, legal, and environmental factors impacting PepsiCo. It identifies both internal and external stakeholders, outlining their roles and responsibilities. The organizational structure and design of PepsiCo are illustrated, followed by a discussion on employee motivation techniques. Finally, the report offers recommendations for improvement, including product diversity, healthier ingredients, and enhanced marketing, along with control and monitoring processes like impact monitoring and feedback control.

Running head: INTRODUCTION OF MANAGEMENT
PEPSI CO
Name of the Student
Name of the University
Author note

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Table of Contents
Summary..............................................................................................................................2
SWOT ANALYSIS.............................................................................................................2
Environment Constraints.....................................................................................................5
Stakeholders.........................................................................................................................6
Organizational Structure and Design...................................................................................6
Motivating Employees.........................................................................................................7
Recommendation.................................................................................................................7
Controls and Recommendation............................................................................................8
References............................................................................................................................9

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Summary
PepsiCo is an American multinational organization that manufactures food, snacks and
other beverages. The headquarters of PepsiCo is located in Harrison. The exact location is in the
hamlet of Purchase. The main aspect that is taken into consideration includes manufacturing and
marketing of the grain based snacks. PepsiCo was established in the year of 1965. PepsiCo has
been gaining high profit as per the generated retail sales. Since then PepsiCo has been spreading
over 200 countries. The annual net worth of the revenue is $ 43.3 billion. PepsiCo is considered
to be the second largest food and beverage manufacturing business. Ramn Laguarta is the chief
executive of PepsiCo from the year 2018.
The key theme of PepsiCo is to put in effort regarding muting the impact of the declining
use of carbon usage in the beverage products. A decrease in volume of carbon in the drinks are
one of the most important aspect.
According to me PepsiCo has been getting better as per the system analysis. This ensures
the fact that the management of the entire scenario of business management has been getting
better with time. The turnover of the business organization has been increasing. I feel that
PepsiCo has been gaining a wider audience base. This includes the fact that the management of
the entire scenario has been getting benefitted with increase in the innovations that are brought in
as the different new flavors are brought in and audience base has been expanding.
SWOT ANALYSIS
Strength

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The strength of PepsiCo includes better brand equity, strong leadership and high
customer loyalty. Having a great target audience are the major strengths of PepsiCo.
Brand equity has been very high for PepsiCo. It is stated that PepsiCo has been one of the
leading brands that affects the functioning of PepsiCo (Eades, Thornhill & Eades 2017). This
insists the fact that management of their business has been very high. This high brand equity
helps in better commencement of the business and hence selling and marketing of the products
gets easier.
Indra Nooyi has been leading PepsiCo in an efficient manner. This high efficiency in
leadership includes the fact that the management of the entire business organization gets
performed in a proper manner.
Customer Loyalty also acts as one of the main strengths of the PepsiCo. With the help of
the increased customer loyalty the main strength that is present is that the products that will be
manufactured will get high exposure (Church 2019). This is one of the major reason that
commencement of business will get performed in a better manner. Even if one of the product has
not been popular among the mass, other new products will also gain proper exposure.
Weakness
The weaknesses present in the PepsiCo includes high competition, failed products and
Brand Ambassadors.
High competition from Coca Cola and other beverage companies have been affecting the
entire sales process of PepsiCo (Dutta, Dutta & Sengupta 2016). This is one of the major reason
that there are high competition in between these beverage companies.

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Products, namely Crystal Pepsi and other products have been a fail. This leads to the fact
that customer loyalty might decrease.
Wrong actions of brand ambassador might affect the brand equity of PepsiCo.
Opportunities
The opportunities of PepsiCo includes Diversification of products, CSR, R & D.
The diversification in the flavors of the products of the PepsiCo has been affecting the
management of the entire system in a better manner. With increase in diversification of the
products the main advantage that is received includes better management of the system. This
leads to the fact that the global audience base will stay intact.
With the implementation of better CSR, removing of the negative remarks will be
performed. This might affect the functioning of the organizational processing.
With efficient research and development, PepsiCo has been implementation of innovation
in the process. This is one of the major reason that commencement of the project will get better.
Threats
The threats that are present in commencement of PepsiCo includes health factors and
Competitors.
With decrease in healthy ingredients the main threat that is present includes presence of
ingredients that are unhealthy in nature. This includes the fact that people consuming the
products will be suffering from Obesity (Rama, Han & Hessels 2018).
With the number of competitors increasing the main aspect that will be taken into
consideration includes high competition in between the competitive brands.

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Environment Constraints
PESTEL Analysis of PEPSI Co are as follows: -
P (Political): Political aspect of PepsiCo needs to be maintained in order to increase the goodwill
of the organization. PepsiCo faces political issues due to excess usage of soda. PepsiCo has been
losing existing consumers due to this issue.
E (Economic): PepsiCo is a well-established business organization. This constitutes the fact that
despite PepsiCo has faced a major loss of 0.4% in revenue due to recession, the functioning of
the company was not hampered.
S (Social): PepsiCo has a wide range of audience base. This leads to the fact that the sales of
their products are performed in a proper manner. The target audience of the business
organization is huge. Hence marketing of their products gets easier (Venkataraman, Summers &
Venkataraman 2017).
T (Technological Factor): PepsiCo is technically very sound in its functioning. Usage of digital
medium is done. With proper usage of digital platform the main advantage that is received
includes better reaching out to the global audience in a better manner.
L (Legal issues): Maintaining the legal aspects as per the government norms and rules are
important. This ensures that with following of norms of government maintaining goodwill will
be achieved.
E (Environment): Water Efficiency: Usage of water in excess rate has been one of the major
issue that is present in the functioning of the PepsiCo. Due to excess usage of water environment
constraints avail. Emission of greenhouse effect has been one of the major issue that is present in
the management of the product manufacturing

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Stakeholders
The stakeholders of PepsiCo are internal and external stakeholders. The internal
stakeholders are the stakeholders who are mainly concerned with the manufacturing of the
products (Rao & Purkayastha 2017). This section of internal stakeholders includes mangers, the
volunteers, board members, workers and the sponsors. The external stakeholder list includes
clients, community partner and the leaders of nonprofit organizations.
Internal stakeholders are responsible for completion of the projects. Managers are
responsible for proper monitoring of the project that will be in progress. This leads to the fact
that execution of the project gets performed in a proper manner. Board members are responsible
for taking decisions as per the requirement of the project. Sponsors will be responsible for
providing funds for completion of the project. Workers and laborers are the most important
stakeholders that are present in the system. The entire business processing is performed by the
workers and hence the efficiency of the project is directly related to the turnover of the business
organization.
In the list of External stakeholders, clients are considered as one of the most important
stakeholder in the business. This includes the fact that turnover of the business is completely
dependent on the clients of PepsiCo.
The board of directors must be in the highest section of the stakeholders.

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Organizational Structure and Design
Figure 1: Organizational Structure
(Created by: Srikanth, Donthireddy & Makkena 2018)
The sales manager of PepsiCo is responsible for handling of the different sectors, namely
the PepsiCo America Food section, PepsiCo America Beverage section and that of the PepsiCo
International section. The PepsiCo Americas Food is diversified in Frito Lay North America,
Quaker Food North America and Latin Americans Foods (Ramakrishna et al. 2016). The
PepsiCo Americas Beverage id again diverged in 2 halves, namely Pepsi Americas Bottling and
Pepsi Bottling Group. The PepsiCo International is again subdivided in United Kingdom and
Europe along with Middle East Africa and Asia.
Motivating Employees
Motivating employees have been one of the major reason that increase the work rate of
the employees. With the help of motivating employees the production of the employees are
ought to increase. This will lead to the fact that the management of the project will get performed

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in a better manner (Srikanth, Donthireddy & Makkena 2018). The methods that are used for
motivating the employees includes providing incentives on overshooting the target that is set to
them. In case incentives are provided to the employees they will be motivated in overshooting
the set target and hence increasing the production (Rama, Han & Hessels 2018). This will also
increase the overall turnover of the business organization. Providing health insurance to the
employees will also be acting as motivating aid in the process. The employees will be having a
goodwill for the business organization and hence the processing gets performed in an efficient
manner.
Recommendation
The recommendations that will be helpful in the process are as follows: -
 Increase product diversity
Increasing of product diversity is one of the major aspect that must be taken into
consideration. This insists the fact that the management of the clients of the PepsiCo brand will
be having a broad range of choice of the products that they will be getting (Hlatshwayo, Munapo
& Mavete 2017). With increase in diversity of the product attracts audience base.
 Increase in ingredients that are healthy in nature
Increase in inclusion of the healthy ingredients in the products helps in bettering the
quality of the product. The issues that are related to obesity will get resolved and the products
manufactured by PepsiCo can do proper business (Church 2019).
 Betterment of marketing of the products

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Betterment in the marketing aspect of the product will help in increasing the popularity of
the project. This insists the fact that the products will be having an individual client base (Eades,
Thornhill & Eades 2017).
Controls and Recommendation
The monitoring process that will be used is Impact monitoring. In this case the impact of
the project is taken into consideration. The decisions that are taken are as per the impact of the
project. This ensures the fact that proper management of the entire system will be dependent on
the impact that is created by the employees of the company.
Usage of feedback control process will be acknowledged. This process will help in
rectifying the project in a better manner. The employees will be rectified with the issues that are
present.
The control process that will be used includes establishing of performance standards,
Evaluating of the actual performance as compared to the standards. Taking correct actions after
proper evaluation will also be taken into consideration in this process
According to me SWOT analysis and PESTLE analysis helps in better analysis of a
project and hence better management will be performed.

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References
Church, A. H. (2019). Building an Integrated Architecture for Leadership Assessment and
Development at PepsiCo. In Evidence-Based Initiatives for Organizational Change and
Development (pp. 492-505). IGI Global.
Dutta, A., Dutta, A., & Sengupta, S. (2016). A Case Study of Pepsico Contract Farming For
Potatoes. IOSR Journal of Business and Management (IOSR-JBM), IES Management
College and Research Centre, pp-79.
Eades, K. M., Thornhill, D., & Eades, K. M. (2017). PepsiCo, Inc.: Cost Of Capital. Darden
Business Publishing Cases, 1-13.
Hlatshwayo, S., Munapo, E., & Mavetera, N. (2017). Inefficient Communication amongst the
Relevant Stakeholders in Manufacturing Operations: A Case of Simba Pepsico,
Johannesburg, South Africa. Journal of Communication, 8(2), 154-170.
Rama, Z., Han, H., & Hessels, E. (2018). When Brands Go Political: A PepsiCo Case. LBMG
Corporate Brand Management and Reputation-Masters Case Series.
Ramakrishna, A., Ramesh, B., Syed, A. A., Gupta, A., & Moskovkin, D. (2016). Market Plan:
Edible Water Bottle for Pepsico.
Rao, A. S., & Purkayastha, D. (2017). Sustainable development at PepsiCo. In Case Studies in
Sustainability Management (pp. 77-98). Routledge.
Srikanth, A., Donthireddy, C., & Makkena, K. D. (2018, October). Improvising Downtrend
Product Using Conjoint Analysis: A Special Analysis on Mirinda of Pepsico.

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In ICRTEMMS Conference Proceedings (Vol. 546, No. 549, pp. 546-549). Swarna
Bharathi lnstitute of Science and Technology.
Venkataraman, S., Summers, M., & Venkataraman, S. (2017). PepsiCo: The Challenge of
Growth through Innovation. Darden Business Publishing Cases, 1-22.