Leading Change: Impact on Coco-cola and Pepsi Operations Report

This report provides a comprehensive analysis of understanding and leading change within organizations, using Coca-Cola and Pepsi as case studies. It begins by examining the impact of changes on the operations and strategies of these two beverage giants, considering both internal and external factors such as market competition, political regulations, economic conditions, and social trends. The report assesses how these changes affect individual, team, and leadership behavior, highlighting the importance of adapting to technological advancements and changing consumer preferences. Furthermore, it explores measures to reduce the negative impacts of these changes, including the application of a systems approach and the Burke-Litwin model. The report also delves into the barriers affecting leadership decision-making and various leadership approaches employed to navigate organizational change successfully. The conclusion synthesizes the key findings and underscores the significance of effective change management for organizational success.

Understanding and Leading
Change

Table of Contents
Understanding and Leading Change................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Impact of changes on Coco-cola and Pepsi operations and strategies..................................3
P2. Effect of external and internal on individual,team and leadership behaviour......................5
P3. Measures to reduce the negative impacts on the organization..............................................7
TASK 2..........................................................................................................................................10
P4. Different Barriers which affect leadership decision making .............................................10
P5. Different leadership approaches applied in the organization..............................................12
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................14
.........................................................................................................................................................1

INTRODUCTION
Understanding and leading change makes managers to solve their issues and conflicts in
the organization. They check the methods, procedures and processes in the firm. There are
various external and internal changes which affects the individual and group behaviour. So
manager has to take appropriate steps to deal with the changes so that employees can work
efficiently and effectively. Company Coco-cola and Pepsi are two international brands that deal
with the beverages sector (Castonguay and et. al., 2010). They have different markets in various
countries. Both firms are operated in America. Through this people can have feeling of fun and
joy. Projects discusses about various organizational examples which impacts the strategy and
operations,assess the ways in which internal and external changes affect team,leadership and
individual behaviour in the firm. Assignment explains about the measures which reduces the
negative impact on the companies. Report discusses about the different barriers which influences
various decisions of leader and various leadership approaches to adopt the changes so that
organization can run successfully.
TASK 1
P1. Impact of changes on Coco-cola and Pepsi operations and strategies
Change : there are various changes in the methods and plans of the organization. It can
be due to the present changes in the business environment such as political,social,cultural,
technological and legal changes. So both companies had to consider these changes that they can
take various opportunities. (Doppelt, 2017) It helps the firms to capture many customers. Thus
organizations can earn more profits and it results in increasing of the market share. Thus
companies can maintain strong relationship with consumers.
Two firms coco-cola and Pepsi are operating the tasks which is described below-
Pepsi - They are operated in United States. They are in the beverage sector. It includes varieties
such as diet Pepsi,crystal Pepsi etc. They make new plans and policies to compete with Coco-
Cola. Through this the can increase the profits and can increase the market share
Coco-cola – It is also operated in United States. It produces varieties such as coco-cola diet and
diet coke. Many consumers consume the products from all over the world. It has largest market
share. Its competitor is Pepsi thus Coco-cola make various new plans and strategies and make
changes in the procedures. Due to these changes firm can increase the profits and market share.

Impact of changes on the strategies and operations of coco-cola and Pepsi are -
Strategies Pepsi Coco-Cola
Strategies It is a beverage and it is the
strongest competitor of Coca-
cola. It helps in setting the
price of products as per the
competitors soft drinks. Thus it
can gain attention of many
consumers. It also make plans
and strategies to beat the other
rivals in the market. Through
new plans and policies they
can increase the profits and the
market share. Thus helps the
firm in maintaining unique
position in the industry.
Coco cola is the largest brand
in the market. They evaluate
the needs and preferences of
customers so that firm can
make changes in the plans and
policies. They set the prices
according to the requirement
of the customers. It fulfils the
needs of consumers. Thus it
leads to increasing of sales and
profits. Thus it results ijn
increasing of the market share.
Thus it can maintain distinct
position in the industry. It
results in growth and success
of the organization.
Marketing strategies Initially it uses high price and
after evaluating the
competitors strategy Coca-
Cola has changed the strategy.
It uses the STP. Firstly it do
segmentation on basis of
geographical basis and others
etc. Then it targets a particular
section of population and
afterwards it creates a
positioning strategy. It make
Initially it do not focus on
employee performance and do
not uses social media to
promote various products.
Now it motivates employees to
increase the energy level and
enthusiasm of workers so that
they can do the work
efficiently and effectively. It
results in efficient and
effective functioning of the

creative and unique strategies
to capture more customers.
Through this it attracts many
customers and it leads to
increasing of profits and
results in increasing of market
share.
operations and tasks. It also
uses social media to promote
the various products. Firm
creates unique and innovative
websites so that it can capture
more customers. This leads to
increasing of the market share
and profits. They can easily
beat the competitor.
Process It mainly targets to youth and
do not focus on other sections
of population. So it creates
beverages and other products
according to youths. Thus it
increase the profits and market
share. Thus it can easily beat
the competitor
Initially it do not diversify
their products and hence Pepsi
do not earn huge profits. Now
it diversify the products such
as launch of different
beverages,juices such as
Tropicana and mineral water.
Due to this it can earn huge
profits. Thus it can capture
more customers so hence it
leads ton increasing of market
share. It do no make strategy to
beat the competitor. In this
way it can maintain unique
position in the market.
P2. Effect of external and internal on individual,team and leadership behaviour
External and internal both have positive as well as negative changes in the organization.
Both companies Coco-cola have to evaluate both factors to increase their profits (Fullan, 2014).
Internal drivers include the culture,management,employee performance etc. There are various

external factors such as political,social, economic etc. which can affect the firms. There are
various external and internal factors which impact Coco- Cola are described below
 Internal changes – There are various internal changes in the organizsation which can
affect the individual and team behaviour-
Effect of swot analysis – Through the effective distribution strategy it can distribute the
products all over the country. It has various operations in urban as well as rural. So through
popularity of brand leaders take decisions to motivate the employees so that it increase the
energy level and enthusiasm level of employees to perform better. Through this employees can
work efficiently and effectively. Company has made carbonated drinks and there are various
health issues faced by the consumers. So thus leaders and individuals cannot perform better
(Glass and Cook, 2016). They are demotivated the company cannot generate profits and
consumers are not liking their product. Individual cannot do their work with full efficiency and
dedication. It leads to low performance and less productivity. Thus it declines the performance of
company. Due to competitors threats also workers cannot perform better as they had fear of
achieving their targets and cannot give their best.
Culture of the organization – There can be good values and beliefs in the firm. All
employees can understand each other opinion and views. It reduces the conflicts in the
organisation. Thus increases the efficiency of individuals to perform better and thus all team do
work efficiently. Leader take decisions to motivate the employees which increases the energy
level of employees to perform better in the firm (Hintz and Bahia, 2013).
 External changes- There are various external changes which affects the
individual and external factors -
Pest analysis – There are various factors which influences the organization. It includes
political,economic,social and technological factors which influences the individual,team and
leadership are -
Political factors – Due to some government regulations such as china which has made a
regulation that company has to meet the standards for creating the product. So due to this leaders
have to guide and motivate the employees to create products according to the standard. Thus
employees haver to make products which are safer. This increases the efficiency of employees to
achieve their objectives.

Economic – There are various economic factors due to which coco-cola has to cut their
prices (Hrebiniak, 2013) . Like China there is inflation in the market so thus employees. Leader
has to forecast the situation and then accordingly make strategies to deal with the changes. Due
to inflation it helps in giving less incentives and salary to the employees so thus they can are
demotivated. So leaders can make effective and efficient strategies to deal with the changes and
can motivate employees to perform better.
Social – There are various social changes occurred in the organization. Pepsi had made
carbonated drinks which is harmful to the consumers. But now people's needs and preferences
are changed. They are demanding the healthier products. Thus company cannot earn profits and
it gives less salary to all employees as the company earns less profits. Thus there are no
promotion. This demotivates the employees and cannot work with full efficiency and
effectiveness. It leads to low performance of the employees.
Technological leadership – There are various changes in the technology in the
environment. So Coco-cola has to adopt the modern and digital technologies to deal with
changes in the organization. Leaders start making various websites and applications to promote
the various products. They can adopt the democratic leadership so that all employees can do their
activities and tasks in a proper manner. All employees can take decisions to achieve their
objectives.
P3. Measures to reduce the negative impacts on the organization
There are various internal and external factors which affects the environment. It is
important for efficient and effective functioning of the employees so that they can perform
better. All activities and tasks run successfully. This results in improving of employees and
firm's performance (Lawrence, 2015). Thus Coco-cola has followed a system approach and
Burke Litwin model to reduce the negative impact of changes on the organization. System theory
is described below-
 Systematic theory – It is the group of various factors in environment so that all functions
can run effectively and firm can accomplish the objectives and tasks. This is important so
that there are no negative changes in the firm. Through this there is effective performance
of all employees and the organization. It includes the four parts-
Input – They are the internal resources which are within the organization. Managers have
to motivate to all employees so that they can perform efficiently and effectively. They have to

provide extra incentives, salary and promotion to the employees so that employees can be
motivated to perform better (Nkomo and Kriek, 2011). Due to this employees are not
demotivated and demoralized. They do not loose their passion and zeal. So through this theory
there is no negative impact on the organization.
Process - It includes all the internal and external environment which affects the
organization an individual behaviour. Internal factor includes such as employee motivation and
good culture. Due to this leaders can make efficient team as all individuals are efficient,
motivated and trained. There are various external factors such as technological and competitors
activities. Leaders have to adopt the innovative technologies so that there can be efficient and
effective working of the organization. All employees are motivated to perform better in the firm.
Thus organization earns more profits. They give more salary to workers and they do not feel
demotivated.
Output – Due to earning of more salary and efficient working of employees they give
good results. This helps in increasing of the productivity. Thus it do not reduces the employees
performance and their dedication. They can work work with more energy and enthusiasm.
Organization can perform effectively and efficiently. Thus it can maintain unique position in the
market.
Feedback – Organization evaluates the performance of all employees and then give
corrective ways to improve the performance. This helps the employees to improve their
performance (Nowell and Harrison, 2010). If feedback is not there then employee cannot
improve their performance and organization cannot run successfully. So hence due to thus
employee can easily achieve their targets.
 Burke Litwin Change Model – There are the 12 dimensions which includes internal and
external environment. It affects the individual,leadership and team behaviour. It includes

(Source - 'Developing Together', 2018)
External environment - It includes the changes in the environment such as
technological and legal. They can give positive changes in the organization if organization
adopts the innovative technologies.
Mission and strategies – Coco-cola has to make clear mission so that employees can
clearly understands them. They have to make strategies so that employees can achieve their
objectives. Thus it do not result in know performance of the company
Leadership – It includes the leadership structure in which there is a leader and team
members (Parsons and Cornett, 2011). Through following this structure firm can effectively
manage all the activities and there is no conflicts and disputes
Illustration 1: Illustration 1: Developing Together

Organization culture – Coco-cola has to follow the rules,regulations and principles so
that employees can be punctual and disciplined. This prevents chaos and disputes in the
organization (Stanleigh, 2013). They can easily achieve the objectives.
Structure – Organization can follow a structure in which managers can give the
responsibility to the various employees and decisions can be taken by all employees
Systems – It includes the plans and policies so that organization can easily achieve the
objectives. Company can work efficiently by easily understand the goals.
Management practices – Managers have to make effective organizational strategy so
that they can properly manage the employees. It helps in reducing the conflicts and disputes in
the firm.
Work unit climate – Manager can make friendly environment so that all employees can
understand each other in better manner. It helps in reducing the conflicts and disputes in the firm.
Tasks and skills - Manager check that employees are to be choose according to job
requirement. If employees have required skills which is needed in the position then they can do
the work more efficiently and effectively.
Individual needs – Manager can take views from the employees and organization can do
job enrichment so that employees can work in various jobs. It increases their skills and they can
perform better.
Motivation – Manager has to give motivation so that they do not feel demotivated and
depressed. It increases their enthusiasm and they can give good results.
Individual and overall performance – Manager has to make proper plans and strategies
so that individuals are motivated and they can give good results. It directly improves the
organization performance. It results in high performance of the company.
TASK 2
P4. Different Barriers which affect leadership decision making
There are various barriers in the organization. It helps in reducing the conflicts and
disputes in the organization. Through this firm can run successfully. It increases the productivity
of company. This leads to growth and success in the firm. Some barriers faced by Pepsi which
can affect leadership decisions are -

 Lack of knowledge and information – Managers gave to get full knowledge and
information about the plans,policies,goals and targets and employee performance. They
have to know the educated and qualified employees. This helps the leader to take relevant
decisions related to tasks and activities (Suchman, Sluyter and Williamson, 2011). It
results in increasing the productivity. If Leader do not have full knowledge about the
plans and goals they the organization cannot run smoothly and successfully.
 Lack of employee involvement – Employee resist many changes in the organization.
Due to this organization cannot run successfully. So Leader has to explain employees
about the benefits of adopting the changes and tell them that they do not loose their jobs.
Through this employees adopt the changes and they can accomplish the targets. It
increase the productivity.
There is a Schein's model of organization's culture –
It includes the basic assumption and values which are part of the culture. Through this there is
good environment between the employees and this helps in maintaing thwe peace and harmony
in the firm. Values – The values are there within the employees and it tells the consciousness level of
the employees . It helps them to decide how things can be . So they can categorise each
situation and do activities according to the circumstances.
 Basic assumptions – There are various kinds of beliefs in the organization. The
ideologies and principle are there within the employees so that they can work efficiently
and effectively. Assumptions can be that employees feel that the fact in social and
physical matters,importance of the time and the features of the human character to decide
that the good or bad in various situations.
Through applying the values and basic assumptions employees can maintain good
relationship with each other and friendly environment can be maintained within the employees.
This helps in reducing many barriers such as lack of the employee involvement and lack of the
knowledge etc. This helps in increasing the productivity and it leads to growth and success in the
firm.

P5. Different leadership approaches applied in the organization
There are various leadership approaches in the organization. Through this there is
effective management of all the employees and the organization. This leads to increasing the
productivity and results in growth and success. Leadership approaches by Pepsi are -
 Situational leadership – In this leader take decisions according to different situations.
Thus leader can take decisions in every circumstances. Thus it helps in improving the
behaviour of a leader. Through this employees can work efficiently and effectively in the
firm. This results in good output. Thus organization can achieve their objectives. It results
in growth and success in the firm.
 Democratic leadership- In this leadership leader gives equal opportunity to all
employees to participate in all activities and can take each decisions. Through this all
employees are motivated to perform better. Leader can take suggestions from all the staff
members and can change their activities and tasks. This results in increasing the
productivity and growth.
 Kottlers 8 change model- It includes various steps to make changes in the organization.
Firstly create urgency which means the requirements of creating the change in the firm.
Secondly form a powerful coalition which means convincing the people to adopt the
changes. Thirdly creating a vision which means make plans for developing the change in
the firm. Fourthly communicate the plans and policies to all employees. Fifthly it helps in
reducing the problems and disputes in the organization. Sixthly create short term targets
and achieve them. Seventh step is build for the change means analysing the failures and
obstacles after achieving each goal. Lastly organization can put continuous efforts to
ensure that changes are applied and applied in the organization.
CONCLUSION
It can be concluded from the above report that changes are necessary for survival of the
organization. It evaluates the impact of changes on both the organization. There are various
external and internal ways in which affects leadership,team and individual behaviour. Report
discusses that there are many ways to reduce the negative impact of changes on both
organizations. Assignment discusses about the various barriers and their influence on leadership
decisions on the organization. It also tells about various leadership approaches to deal with

various changes in the firm. Through adopting these changes company can increase the
productivity and it results in growth and success of the firm.

REFERENCE
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Suchman, A. L., Sluyter, D. J. and Williamson, P. R. eds., 2011. Leading change in healthcare:
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Online
Developing Together. 2018. [Online]. Available.
<http://www.nwacademy.nhs.uk/developingtogether/>