BUS301: Leading Change - PepsiCo and Coca-Cola Report Analysis

This report delves into the critical aspects of leading change within organizations, using PepsiCo and Coca-Cola as case studies. It begins by defining organizational change and its impact on business strategy and operations, highlighting the importance of adapting to market dynamics. The report then explores both internal and external drivers of change, examining how these factors influence leadership styles, team dynamics, and individual behavior. It further investigates measures to mitigate the negative impacts of change on organizational behavior, emphasizing training and employee relations. Additionally, the report analyzes barriers to change and their influence on leadership decision-making. Finally, it presents various leadership approaches suitable for navigating change within an organizational context, providing a comprehensive overview of effective change management strategies. The report covers key topics like competency and pricing strategies, promotional tactics, and the importance of healthy employee relations to ensure success.

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...............5
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................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
In the context of an organisation, it is needed to make different changes in the company
in accordance of their business environment. All the elements of business environment makes
direct effect on operational and functional activities of the firm. For the company several
changes helps them to get lead in high competitive market and have different types of advantages
in easy way. This report project is based on tow different kinds of firms and several patterns that
they opt to creates changes in their strategies of business in effective manner. The project report
is based on Pepsico and Coca cola. These both firm are multinational beverage organisation and
deals in soft drinks. The report project is detailing various elements that are able to bring change
and also affect the work environment of the company. It will analyses the measures that helps in
reducing negative impact of the change for organisational behaviour. There are several roadblock
or hurdles for change that may influence decision making process. Some of leadership
approaches are explained in order to dealing with change for sound organisation.
TASK 1
P1. Different organisations and impact of change on their business strategy and operations
The change in company refers to different business changes in accordance of
environment that involves some aspects like procedure, policies and techniques which may
affected by the variation of market. Firm are generally facing their kinds of challenges at time of
running a company hence they will concentrated on creating suitable strategies and have actions
in order to survive in these situation or challenges. Change needs to be there cause it provide
helps for having success for opting different strategies among competitors. Some effects on
company are there which are detailed as-
PepsiCo
This firm is an American multinational food, beverage and snack industry. This firm was
framed in the year of around 1965 with the merger of Pepsi-cola in purchase, New York. The
company is generally interested in different types of exercises like marketing, manufacturing
along with grain based food items, selling of beverages, snacks and other various products. In
reference to recent data, company's retail sales are nearly $ 1 billion apiece. The key person of
the company is Indra Nooyi who is a chairman and CEO. And Ramon Laguarta (president). Firm
has around 264,000 workers performing and it bring the revenue around of US$ 62,799 billion.
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All rage of product they are offering in approx. higher them 200 nations. PepsiCo. Is the known
as the second biggest food and beverage company in entire world.
Coca-Cola
This is an American multinational beverage corporation and their headquarter is located
on Atlanta, Grogia. The firm was framed in the year of 1886 by John Stith in Columbus. As the
firm is generally interested in retailing, marketing and beverage manufacturing along with
Syrups. The stock of company of Cola cola has been listed in NYSE that is a part of DJIS. This
firm is public limited company and their prominent persons are Muhtar Kent (chairman) and
James Quincey (president and CEO).
Both firm are having different types of policies and strategies for effective business and
they are offering harder competition to each one along with their other competitors in the market
area. Here, major difference is explained such as-
Strategies PepsiCo Coca-Cola
Competency strategies The company PepsiCo is
majorly concentrated on tastes
and preference of their
customers along with it they
frame their strategy in order to
satisfy buyer's needs and wants
with various and unique
tastes. This company is
consumer oriented.
The firm Coca cola is not so
fucused of their buyer's
demands and needs along with
it, they are keeping their eyes
on advertising and pricing as
well as promotional strategy.
They brings new thought s and
ideas in order to selling their
stuff and attracts more
customers.
Pricing strategies The firm tries to frame new
strategies of pricing in
accordance o0f the demand of
the stuff or product as well as
it is based on the production
cost. At times, these all
strategies reduces sales ratio
This firm generally opts
process effective and
competition based strategies
hence the buyers will be
attracted to it. (Fagerström and
Salmela, 2010) on the
different hand, the company
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cause higher prices of the
products and customers goes
to other products.
will charge higher cost for
their products and services
that will effects on the buyers
in negative way. (Doppelt,
2017).
Promotional and advertising
tactics
The company is focused on
higher level of promotion
hence they are having
promotional strategies in order
to making more awareness
between customers and build
sound or new image in the
mind of customers in respect
to their brand. They make
more investment for their
advertisement and hires well
known faces and celebrities
that helps in making effective
marketing among competitors.
The firm Coca cola generally
concentrate on simple type of
advertisement and they invest
more funds in the opting of
promotional tool and methods.
(Malenfant, 2010). Other firm
it, they also had different types
of strategies in order to frame
their future customers and
spreading awareness in the
market hence they will have
higher market share.
P2. Internal and external drivers of changes that affect leadership, team and individual behaviour
Leaders are those individuals who provides guidance as well as offers path for leads of
group or individuals on the right direction hence with the helps of this they will be able to get
their firm's objective and goals. They has responsibility to framing mission, vision and make
path objective for their workers along with they achieve all these in the future in prescribe time
duration (Parsons and Cornett, 2011). Leaders provides supports to their employees for
performing better and with it they motivate them for giving effective work that will contribute in
boosting the productivity and grab determine target in sound manner. Hence, styles and theories
of leadership required in the firm for face any task in effective way. It helps in minimising the
chances of problems and creates a sound working environment.
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Here are some external and internal force that can affects on leadership, individual and
team behaviours. These are follows-
INTERNAL FACTORS:
These all factors are able to make direct effects on the operation s of business from inside
of the company as leader and manager needs to creates sound strategies in the case of inherent
factors (Parsons and Cornett, 2011).All these elements can be controllable as they are controlled
by the top or higher authority of the management. The process of decision making is affected
through various types of changes cause it make influence on entire firm as well as its activity and
operations. Firm needs to be concentrated on these all forces with the helps of it they can be able
opt sound and best strategy that helps in surviving at the time of these issues and build firm
effectively. Manager and leaders are needed to make corrective action for effective working
environment. There are some internal factors which makes impact in the business such as-
Technological capacity: it is an essential factor cause firm needs to maintain their
efficiency and capacity of the technology. It should be changed in accordance of the environment
or may be change for sound production process so the Morden technology needs to be opted in
order to running the business.
Organisational culture: it can be known as the study of attitude and behaviour of an
individual and group in the firm. Culture is a important part of the organisation cause it provides
helps in facing competitive business, turnover and make coordination among workers etc.
Employee morale: they are the prominent people of the firm as their level of strengths
and confidence are required hence the company needs to focus on the satisfaction of the
employee that will made a positive energy and sound condition of working for both the firm and
jobs.
EXTERNAL FACTORS:
These elements affects to functions of organisation and their operation from out side.
Hence it involves those such things as events and situations which can arose form out side of the
company (Salmela, Eriksson and Fagerström, 2012). They are not be controlled but some time
they can be managed . Leaders and managers has the responsibility for creating effective
decision in the reference of an organisation hence they can survive of having external driving
forces like-
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Economy: it is the most signify factor that generally effects on the business operations.
This can be stated that entire performance of business is based on the economic factors (Brown,
2012). like financial fluctuation such as deflations as well as inflations directly effects the
working and age of the business.
Political influences: this factors is refers to functions of business as they are facing at the
time of performance hence this factor creates influences on decision making of the leadership
along with their employee's behaviours too. In this involves government policies, tax policy
parties, stability and so on (Brown, 2012).
New competitors: it is also know as the major factor cause new competitors launched
their new ideas, technology, innovation and satisfied buyers hence the firm needs to undertakes
these elements of effective firm and garb their competitive advantages with suitable strategies.
P3 Measures for minimise negative impacts of changes on organisational behaviour.
It is the main and hard task for each and every organisation in order to reduce negative
effects and all firms are concertinaing on the different types of measures that provides supports
in respect to removing the several kinds of impact on the operations of business and creates
sound or effective working environment. Pepsi-Cola organisation also tries to minimise those
effects in suitable manner. Such types of effects can keep down the firm and this will directly
effects on the goal of firm and their objective in sufficient manner. Firm needed to opt the best
and appropriate strategies in order to avoid negative impact. These kinds of situation as well as
decision which can be effected through external forces. Here are some measures that provides
helps order to minimise the negative effects such as-
Training: it is the signify techniques that provides supports in order to accepting all kinds
of changes in the business environment. different types of firm considered this method as pepsi
cola also undertakes training in order to reduce all negativity and boost up the skills and
knowledge of their employees with the helps of it they can garb their pre determine objective and
target (Suchman, 2011). It is a effective strategies that needs to be opted by the Pepsi cola
organisation to survive form each other competitors that supports in keeping motivations sand
confidence in more critical situation or environment.
Healthy relations with employees: this must be necessary to creates sound relations with
the members of team or entire force of employees hence it can be possible with the helps of
effective communication cause it provides help in respect to interact in proper manner with each
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and every person. Management needs to make communications with their employees in regards
to their new strategies and technology option in order to manufacturing innovative product and
stuffs to meet with the expectation of the buyers and their demands.
Research: It is a helpful technique that provides support in order to examine the the
needs,. Demands and wants of the customers. Many of the organisation conduct research of
survey in order to have knowledge about future customers, their needs and preference, taste and
sound competitors , market trends and many more things through which they can be able to
make sound decision in regards on adoption of different types of strategies (Branson, 2010).
hence research is very helpful and essential tool that facilitates helps in order to collect
information and data that needs in building a firm more successful.
Technology: this is a part of external environment as some technical changes affects the
operation of business hence the company should concentrate on this elements and undertakes the
change system in order to make effective organisation. Pespi cola is the largest company and
second largest firms in the entire world therefore they are needed to have new techniques as well
as adoption of it for effective producing the different types of cola taste or any soft drink
(Thomas, 2013). changes in environment brings new thoughts and idea or innovation in order to
manufacturing sound and good taste and fresh drinks cause foods firms also needs to have new
and innovative technology. Firm can reduce their cost and time through accepting technology
and minimise the wastage by recycling and take optimum use their resource in effective manner.
Task 2
P4 Barriers for change and their influence on decision-making of leadership
Change can be considered as the system that needs to coped with the firm as it will be
everything that are able to bring effectiveness in the environment of working as well as their
criteria (Thomas, 2013). Roadblocks are the major factors that builds conflicts and creates entity
in order to getting stuck some where in the work. It will be make complex condition for the firm
as many hurdle and issues can be happen hence they needs to wind up their business. Papsi cola
firm are concentrating on creating effective environment of working and motivates their
employees in order to perform best project or job to garb organisational desired objective and
goal. Best working is helpful in order to reducing all types of risks in effective manner.
Lack of proper communications: It is essential factor that can be able to affect on the
relation of workers and managements cause this element is related to interaction among
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employees and top level management. It is negative factor which are able to make impact on
direct bases on the business organisation as they will communicate about the change that can
take place in the firm and workers are needed to creates any types of adjustment as well as make
them for opting changes in effective environment of working. Hence, it lights to lack of
communication. It is the responsibility or duty of the firm in order to provide data, information
and make communication with their workers in regards of change option (Thomas, 2013).
Organisational culture planning: systematic and effective culture is necessary for the
sound working environment in the organisation. Team workforce focused on creating effective
policies, responsibilities and areas of job which can be able to make effects on functions of
organisation.
Lack of employees involvement: it is a general but biggest mistake form some of the
firms that they are not included or provide chances to their workers in working decision and any
actions that are going to take for the firm. Employees basically are not wishes any of changes
hence they have fear of various changes if they are not selects in the process of change of the
company. So employees inclusion is required as the company needs to provide them a chance in
order to share their views and opinion in regards of change and their strategies for option which
will provide support in respect to developing company in very effective manner.
Complexities: it is an other elements that needs to be undertakes that is known as the
complexities (Bingham and Main, 2010). As every firm needs to concentrate on these forces at
time of making decision process hence it will creates roadblock because of the changing culture
and environment. It will be become very hard for every individual as workers or members of
team in order to understand the entire system of change. Hence Pespi cola firm have to opt the
best strategy to reduce such types of problems and grab desired expectation. Ti provides their
contribution in growing faster for the development of the business.
Task 3
P5 Different leadership approaches for dealing with change in organisational context
Styles and approaches of the leadership is very helpful techniques that facilitates supports
in order to dealing with various types of changes in the firm (Anderson and Anderson, 2010).
leadership helps to boost and influence the behaviour of employees for performing sound task
and grab their objective. Styles of leadership helps in opting different types of changes in
sufficient manner hence business can be able to develop their planning in easiest way. They will
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inspire and influence to their workers for using the new techniques, innovations and ideas that
provides supports in order to building performance in effective manner. Some of the leadership
styles are detailed as-
Autocratic: this types of leaders are straight forward and they will took their decision by their
own. They do not allows any person to keep interference in their decision making process. This
king of leadership can be appropriate in tough and critical situations.
Democratic: It is very helpful for promotion and leading an organisation. It will facilitates their
participation and supports for their workers so that employees will be motivated in order to
perform their new job or task. The pepsi cola in concentrating on facilitating a platform along
with chances to the workers so that they will be able to boost their knowledge and skills or
abilities for future development in the firm (Thomas, 2013).
Laissez Fair: here in, they will have different types of fundamentals which are applied on the
persons. There are some of particular rights which are provided to the workers so that they can
make their decision and have actions in any conditions. It provides help in appropriate balancing
and the sound operations that needs to be done in effective manner.
CONCLUSION
From the about report it has been concluded that, the changes are able to affect
organisation in both manners as internal and external environment, therefore the firm needed to
creates effective strategies that will provides supports in order to having their particular
objective. The report is based on PepsiCo and Coca-Cola both the companies are using their
different strategies to dealing with various market change. Some of internal and external factor
are explained as it effects on team and individual working environment in the organisation.
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REFERENCES
Books and Journals
Alkahtani, A.H., 2011. The impact of personality and leadership styles on leading change
capability of Malaysian managers. Australian Journal of Business and Management
Research. 1(2). p.70.
Anderson, D. and Anderson, L.A., 2010. Beyond change management: How to achieve
breakthrough results through conscious change leadership. John Wiley & Sons.
Bingham, D. and Main, E.K., 2010. Effective implementation strategies and tactics for leading
change on maternity units. The Journal of perinatal & neonatal nursing. 24(1). pp.32-42.
Branson, C.M., 2010. Leading educational change wisely. Rotterdam: Sense Publishers.
Brown, B.C., 2012. Leading complex change with post-conventional consciousness. Journal of
Organizational Change Management. 25(4). pp.560-575.
Carrington, S., Deppeler, J. and Moss, J., 2010. Cultivating teachers' knowledge and skills for
leading change in schools. Australian journal of teacher education. 35(1). pp.1-13.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Fagerström, L. and Salmela, S., 2010. Leading change: a challenge for leaders in Nordic health
care. Journal of Nursing Management. 18(5). pp.613-617.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Hallinger, P. and Heck, R.H., 2011. Collaborative leadership and school improvement:
Understanding the impact on school capacity and student learning. In International
handbook of leadership for learning (pp. 469-485). Springer Netherlands.
Malenfant, K.J., 2010. Leading change in the system of scholarly communication: A case study
of engaging liaison librarians for outreach to faculty. College & Research Libraries.
71(1). pp.63-76.
Parsons, M.L. and Cornett, P.A., 2011. Leading change for sustainability. Nurse leader. 9(4).
pp.36-40.
Salmela, S., Eriksson, K. and Fagerström, L., 2012. Leading change: a three‐dimensional model
of nurse leaders’ main tasks and roles during a change process. Journal of advanced
nursing. 68(2). pp.423-433.
Suchman, A.L., 2011. Leading change in healthcare: Transforming organizations using
complexity, positive psychology and relationship-centered care. Radcliffe Publishing.
Thomas, T., 2013. Leading change and innovation in teacher preparation: A blueprint for
developing TPACK ready teacher candidates. TechTrends. 57(5). pp.55-63.
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