Understanding and Leading Change: PepsiCo and Coca-Cola Analysis

This report examines change management within PepsiCo and Coca-Cola, focusing on how these multinational beverage companies adapt to internal and external pressures. It analyzes the impact of change on their business strategies and operations, exploring factors like market variations, competition, and consumer preferences. The report delves into internal and external drivers affecting leadership, team dynamics, and individual behavior, highlighting the role of technology, organizational culture, employee morale, economic fluctuations, political influences, and new competitors. It then evaluates measures to minimize negative impacts on organizational behavior, such as training, fostering healthy employee relations, conducting market research, and adopting new technologies. Furthermore, the report identifies barriers to change and their influence on leadership decision-making. Finally, it explores various leadership approaches for effectively dealing with change within an organizational context, providing a comprehensive overview of how these companies navigate and manage change.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different organisations and impact of change on their business strategy and operations....1
P2. Internal and external drivers of changes that affect leadership, team and individual
behaviour.....................................................................................................................................3
P3 Measures for minimise negative impacts of changes on organisational behaviour...............4
Task 2...............................................................................................................................................6
P4 Barriers for change and their influence on decision-making of leadership...........................6
Task 3...............................................................................................................................................7
P5 Different leadership approaches for dealing with change in organisational context.............7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Change management is considered as the discipline which helps in providing guidelines
that how an individual and group prepare, equip and support for successful adoption of changes
in order to achieve business goals and outcomes. In other words, it is a system for stimulating the
resistance which included changes of people's habits, beliefs and values (Hallinger and Heck,
2011). Change is essentially required for making organisation successful as it adopts several
tools or techniques for effective utilisation of available resources. This assignment is based on
two big organisations which are Pepsico and Coca Cola. These are multinational beverage
companies or deals in carbonate soft drinks. This report will explain many factors that bring
changes and also affect the working environment within firm. It will evaluate the measures
which support in minimising negative impacts of change for organisational behaviour. There are
different barriers for change which can influence decision-making process. Some leadership
approaches are applied for dealing with change for effective organisation.
TASK 1
P1. Different organisations and impact of change on their business strategy and operations
Organisation change refers to several business changes according to environment which
includes some aspects such as policy, procedure and methods that are being affected by market
variations. Companies have to face these types of challenges while running an organisation so
that they will focus on making appropriate strategies and take actions for surviving from these
situations or challenges. Change should be there because it helps in getting success from
adopting or accepting various strategies among the competitors. Some effects on organisations
are there like:
PepsiCo
It is an American multinational food, snack and beverage corporation. This company was
formed in the year 1965 with merger of Pepsi-Cola in Purchase, New York. Company is
interested in many activities such as manufacturing, marketing as well as distribution of
beverages, grain based foods, snacks and other products (Fullan, 2014). According to recent data,
its retail sales approx. $ 1 billion apiece. The key people of PespsiCo are Indra Nooyi (chairman
and CEO) and Ramon Laguarta (president). There are around 264,000 employees working and
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its generated revenue is US$ 62,799 billion. Its products were distributed in approx. more than
200 countries. PepsiCo is the second largest food and beverage company in world.
Coca-Cola
It is an American multinational beverage corporation with having headquartering in
Atlanta, Georgia. It was invented in 1886 by John Stith in Columbus. They were interested in
marketing, retailing and manufacturing of beverages as well as syrups. Coca-Cola’s stock is also
listed in NYSE which is a part of DJIS. It is a public limited organisation. Key people of this
company are Muhtar Kent (chairman) and James Quincey (president and CEO). According to the
recent data or information, this company generated revenues approx. US$ 41.863 billion and
there are around 123,200 workers working across the world.
Both companies adopted various policies and strategies for successful business and they
are giving tough competition to each other as well as to other competitors in the market place.
Here are some differences between two organisations such as:
Strategies PepsiCo Coca-Cola
Competency
strategies
This company generally focuses on
customer's tastes and preferences as
well as they make strategies for
satisfying their needs and wants with
different and unique tastes
(Fagerström and Salmela, 2010).
They are customer oriented.
In this, company does not focus on
consumer's demand and needs as
well as they just concentrate on
pricing and advertising as well as
promotional strategy. They bring
new ideas for selling their products
and create more customers.
Pricing strategies Company is trying to make new
pricing strategies according to
demand of products and services as
well as on the cost of production.
Sometimes, these strategies decrease
sales due to high price of products
and customers go for another
product.
They generally adopt cost effective
and competition based strategies so
that customers can be attract. On the
other hand, they charge high price
for their products and services
which will effects on the customers
in negative manner (Doppelt, 2017).
Promotional and This company is concentrated on Coca-Cola usually prefers simple
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advertising tactics high level of promotion so that they
adopted promotional strategies for
creating more awareness among
customers and make a new position
in their mind regarding the brand
(Malenfant, 2010). They invest more
funds for advertisement and hire
known faces and celebrities for
effective marketing among
competitors.
form of advertisement and they
spend less amount in the adoption of
promotional tools or techniques.
Apart from these, they also adopted
various strategies for creating
potential customers and spreading
market awareness so that they can
obtain higher market shares.
P2. Internal and external drivers of changes that affect leadership, team and individual behaviour
Leaders are the persons who guide as well as lead group or an individual on right path so
that they can achieve company's goals and objectives. They are responsible in creating mission,
vision and set path goals for employees as well as attain all these in the future within set time
period. Leaders support followers for doing better work as well as motivate them for rendering
effective performance which will contribute in increasing the productivity and accomplishing
defined targets or objectives in an appropriate manner (Parsons and Cornett, 2011). So,
leadership styles and theories must be required for completing any task in an effective way. It
supports in reducing or minimising chances of redundancy and make a better working
environment.
Here are some internal and external forces which can affects on the leadership, team and
individual behaviours. These are as follows:
INTERNAL FACTORS:
These factors directly affects on the business operations from inside as leaders and
managers have to make better strategies in the case of internal forces. This factor if controllable
as it can be control by the top management (Carrington, Deppeler and Moss, 2010). Decision
making process can be affected from several changes because it influence entire organisation as
well as its activities and operations. Company should focus on these forces so that they can adopt
best strategies for surviving from these issues and make organisation effectively. Leaders or
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managers are required to take corrective actions for better working environment. There are
internal factors that can be impact on business such as:
Technological capacity: this the important factor because company requires to maintain
its capacity of technology and it must be change according to environment or changes for
effective production process so modern technology should be adopted for running the business.
Organisational culture: It consider the study of behaviour and attitude of individual and
group within the organisation. Culture is essential part of an organisation because it helps in
fighting the competitive business world, turnover and co-ordination among employees etc.
Employee morale: They are the key person of the company as their level of confidence
and strengths are must be required so firm focus on employee satisfaction which will make a
positive energy and effective working conditions for both company and job.
EXTERNAL FACTORS:
these factors affects on the organisational functions and its operations from outside. So in
this includes those things such as situations or events that can be occurred from outside of he
firm (Salmela, Eriksson and Fagerström, 2012). They cannot be control but can be manage.
Managers and leaders are responsible for making effective decisions in the favour of an
organisation so that they can survive of face external driving forces such as:
Economy: It is most important factor that generally impact on the business operations. It
can be said that overall business performance is depends on the economic factor (Brown, 2012).
Financial fluctuations such as inflations as well as deflations directly affect the running business.
Political influences: These forces related with business functions as they are bearing on
the functioning so this factor influence the decision-making of leadership as well as employees
behaviour too. In this includes parties, Government policies, stability and tax policy etc.
New competitors: They are also a big factor because new competitors introduce new
ideas, technology, innovation and satisfied customers so company should undertake these factors
for effective organisation and achieve competitive advantages with appropriate strategies.
P3 Measures for minimise negative impacts of changes on organisational behaviour.
This is the difficult task for every firm to minimise negative impact and all companies
focus on various measures that support in removing the various kinds of effects on the business
operations and make good working environment. Pepsi-Cola company also try to reduce those
effects in appropriate manner. Such kinds of impacts can bring down the company and it will
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directly affect on the company's goals and objectives in better way. Company requires to adopt
best and suitable strategies for avoiding negative effects. These types of situations as well as
decisions that can be affected by external forces. Here are some measure which helps in
reductions of negative impacts such as:
Training: This is most suitable method which support in accepting all types of changes in
the business environment. Various companies undertake this technique as Pepsi-Cola also
consider training for overcoming all negativity and enhance employees skills or knowledge so
that they can attain predetermined targets and objectives. This is the effective strategies that must
be adopted by he Pepsi-Cola company to survive from another competitors in effectively and
efficiently (Suchman, 2011). Training is the key components which support in bringing
confidence and motivations in many critical situations or environment.
Healthy relations with employees: It must be necessary to make good relations with team
members or entire work force so it can be possible through effective communications because it
helps in interacting properly with every or each person. Management should communicate with
workers regarding any new strategies and technology adoptions for manufacturing innovative
products in order to meet with customers expectations or demand.
Research: It is helpful tool that support in analysing the demand, needs and wants of the
customers. Many of firm conducts research or survey to know about recent market trends,
potential customers, their preferences, taste and strong competitors and many more things so that
they can make better decisions regarding adoptions of various strategies (Branson, 2010).
Research is very useful tool that helps in gathering data or information which is must be required
in making organisation successful.
Technology: It is the part of external environment as technological changes affects the
business operations so company should focus on this forces and consider the change system for
effective organisation. Pepsi-Cola is biggest company and second largest firm in this world so
they requires new technologies as well as adoptions of those for producing the variety of cola
taste or any soft drinks (Thomas, 2013). Changing environment bring new ideas, innovations for
manufacturing good taste and fresh drinks because beverages companies also required new
technologies. Company can minimise its cost and time by adopting technology and reduce
maximum wastage by optimising available resources in effective manner.
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Task 2
P4 Barriers for change and their influence on decision-making of leadership
Change is defined as the system which must be cope up with an organisation as it can be
everything that brings effectiveness in the working environment as well as its criteria. Barriers
are biggest factor that create conflicts and make entity for getting stuck somewhere in work. It
can be create complex situations for the organisation as many problems or issues can occur so
they have to wind up their business. Pepsi-Cola company focus on making effective working
environment and motivate to employee for performing best tasks or job to achieve organisational
desired goals and objectives. Best performance is helpful in overcoming all types of risks in easy
way.
Lack of proper communications: This is very important factor which can affect on the
relations of employees and management because this factor is related to interaction among
workers and top level management. It is negative factor that directly impact on business
organisation as they communicate about changes that will take place in the company and
employees are required to make any kinds of adjustments as well as prepare them for adopting
changes in effective working environment, so it leads of lack of communication. It is the duty or
responsibility of the organisation to provide informations and communicate with their employees
regarding changes adaptations.
Organisational culture planning: Proper and systematic culture is must necessary for
best working environment as it directly effect on the employees behaviours and their
performance within the organisation (Bingham and Main, 2010). Team workforce concentrate on
making effective policies, areas and responsibilities of job that can be affects on organisation
functions.
Lack of employees involvement: It is general but major mistake of some of the
companies that they do not involve or give chances to their employees in working decisions and
any actions which are going to take for organisation. Workers generally do not wants any of
changes so they have fear of several changes if they are not chosen in change process of
company. So workers involvement is must be requires as firm should give them chance to share
their opinion and views regarding the changes and its strategies for adoptions that will support in
developing organisation in effective manner.
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Complexities: Another factor which must be consider, that is complexities. As every
organisation required to focus these forces while making decisions because problems or any
critical situations can be arise in planning as well as decision-making process so it will create
conflicts because of changing culture or environment. It has become very complex for every
person as employees or team members to understand entire change system. Therefore, Pepsi-
Cola company have to adopt best strategies to overcome such kinds of complexities and achieve
desired expectation. It contributes in growing fast in the development of business.
There are some barriers which must be consider because these all affects on the decision-
making process of leadership with an organisation. It can be said that lack of employees
involvement can be create a big problem in adoption of new ideas as well as technologies
because it is must to communicate with each or every person in effective manner, they have
rights to know about every things regarding the company and get involvement of their in taking
actions because they are part of an organisation and also responsible for achieving particular
goals and objectives. Pepsi-Cola company focus on making various kinds of strategies for
continuously improvement of employees and organisation performance by increasing sales
volume and obtain competitive advantages.
Task 3
P5 Different leadership approaches for dealing with change in organisational context
Leadership styles and approaches is very useful tools that support in dealing with several
kinds of changes within the firm. They support in managing the entire working environment as
well as team workforce for better outcomes (Anderson and Anderson, 2010). Leaders encourage
and influence employee's behaviours for performing effective task and achieve objectives.
Leadership styles helps in adopting any kind of changes in an effective manner so that business
can develop its strategies in easy way. They inspire and influence to employees for using the new
technologies and adoptions of ideas or innovations which will support in making work
significant manner. This will support in reducing their hard work as well as attain predetermined
goals and objectives. On the other hand, leadership theories and styles are being applied
according to nature of business. Pepsi-Cola company has adopted several types of tools &
techniques with various styles of leadership because it is beverage corporation and they lead
effective management for obtaining particular goals and objectives.
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 Autocratic: This approach considered that leadership can be performed by gathering
feedbacks as well as various surveys from the employees and other team workers within
the firm. This leadership can be suitable in critical conditions or situations. Democratic: It is very useful for leading as well as promoting an organisation. It provide
participation scope and the feasibility for employees so that they can be motivated for
doing special job. Pepsi-Cola focus on providing platform as well as opportunities to the
employees so that they can enhance their skills and knowledge or abilities for future
development in an organisation. Laissez Fair: In this described various fundamentals that can be applied on an individual.
There are certain rights provided to the employees so that they can make decisions and
take actions in any situations, therefore several tactics may be use for effective
methodologies. It will helps in proper balancing and the effective operations which are
being done in smooth manner. Transformational: These leadership styles are helpful in daily based transaction of the
business operations. In this, leader ensure about every members that they are participating
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Illustration 1: Leadership style
Source: Different leadership styles 2016

in several activities as well as performing their job to achieve predetermined task and
objectives. Leaders motivate to workers for completing entire work in set time period as
well as cope up with the change system in appropriate manner (Alkahtani, 2011).
Transformational leadership style is very helpful in managing day to day business
activities which contributes their goals and objectives in better way.
 Transactional: In such types of leadership style, they focus on managing good relations
with employees and management. Specific techniques can be used for making policies
and strategies such as awards, rewards, appreciation, promotions and many more.
Management and leadership skills are must be required for making successful business as
they both are the perfect combination.
These approaches of leadership styles are very effective because it support to deal with many
changes and leaders play vital role in transforming workers so that they will get ready for
accepting any changes in business environment.
CONCLUSION
From above this report, it has been concluded that changes can be affect on the business
organisation in both internal or external environment, so company requires to make effective
strategies that will support in achieving particular goals and objectives. This report is based on
PepsiCo and Coca-Cola that they both are using different strategies for dealing with environment
changes in the market. In this assignment, some internals and externals factors are defined that
affects on the individuals and team in working environment within an organisation. Measures are
helpful in reducing such factor and make organisation effective. Some barriers are there that can
influenced on leadership decision. Changes is must be requires to survive from internal and
external factors and achieve competitive advantage.
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REFERENCES
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Online
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