Strategy Implementation and Strategic Controls at PepsiCo PepsiCo Human Resources' Structure, Systems, Individuals, and Culture Concerns and Cultural Considerations Organizational Structure and Critical Control Systems Mission and Organizational Components of the Company Ethical "Recommendations" Potential Alterations to the Company's Strategy References
PepsiCo is an example of a corporation that has made significant efforts to adapt its policies to the market's rapid evolution. Its response to the shift in customer preferences and execution of the generic strategy would enable it to survive the crisis and reap the rewards of the new market entry. The focus on international clients helps to their overall happiness and, as a result, to the company's profit growth.
Monitoring the plan implementation process with the use of key control systems assures compliance with the schedule. However, despite high expectations regarding the supposed conclusion of PepsiCo's strategic plan, the company's human resources present considerable disadvantages. Therefore, further measures are required to strengthen the flexibility of the PepsiCo Company's decision-making process.
Strategy Implementation and Strategic Controls at PepsiCo
PepsiCo is not exempt from the requirement to adapt to societal shifts and respond to emerging political and economic conditions, which has become a vital duty for all major corporations. However, the actual implementation of the company's strategic plans cannot exactly match the initial view of the procedures to be done and the anticipated outcome. It is vital to consider PepsiCo's control systems, which enable for tracking the implementation of its plans and identifying any deviations. Consequently, the objective of this report is to examine the company's critical control tools and their role in the successful implementation of the company's strategy for future growth.
PepsiCo's Structure, Systems, People, and Culture
The company's major resources are essentially its personnel, and are thus tied to the organization's corporate culture. Due to their significance to the implementation of PepsiCo's strategic initiatives, the firm stresses the motivation of its employees by promoting them to higher positions on occasion. To ensure the company's human resource strength, they also encourage collaboration amongst all employees and supervisors (Kissinger, 2017). The varied structure of the organization helps to the increased incentive of its personnel to enhance business metrics. Therefore, PepsiCo prioritizes a culture of high performance and strong relationships.
PepsiCo's organizational structure is extremely adaptable to changing situations. They replace their leaders based on the current business climate in order to improve the overall performance of the company's activities (Kissinger, 2017). Nonetheless, PepsiCo employees play a crucial role as well, alongside the company's management. The managers of the company aggressively promote their participation in the process by addressing their specific issues regarding the company's operations and emerging potential dangers. In general, the cooperation of various sorts of employees contributes to the development of more efficient and effective problem-solving strategies and the execution of PepsiCo's actual business strategy.
Human Resource Issues and Cultural Considerations
PepsiCo's human resources are one of the most important corporate success factors. Its policy toward managers and employees is differentiated by the enhancement of their motivation through promotions and the acquisition of the necessary leadership abilities. This strategy also contributes to the low employee turnover rate at PepsiCo. Nevertheless, despite the overall success of the employees' collaboration, the company's human resource management has certain flaws.
Individual employees' lack of adaptability poses the greatest difficulty to PepsiCo's human resources department. They are encouraged to collaborate rather than make independent decisions (Kissinger, 2017). Therefore, it is more difficult to build the required leadership abilities for continued advancement. Under such conditions, performance can steadily decline, although this is not even the worst potential outcome. PepsiCo's incapacity to deal with a crisis or adapt to new circumstances could result from its employees' inflexibility and bad leadership. In the current environment, when the corporation must adapt its activities to new elements such as the health concerns of the public and economic shifts, it becomes increasingly difficult to achieve the targeted strategy.
Possible changes in the perception of tasks and methods of their execution may also result in the elimination of cultural disparities, which is crucial for a multinational corporation like PepsiCo. The focus on target clients necessitates a certain degree of managerial and personnel flexibility. The PepsiCo Company should therefore consider the possibility of failing to meet the needs of its customers if it does not provide the product that matches to their culture. It should take additional steps to reduce the likelihood of this happening by granting its staff greater autonomy in addition to their outstanding collaborative abilities.
Organizational Structure and Critical Control Systems
The implementation of PepsiCo's strategic decisions within the desired strategy necessitates the deployment of diverse control systems that permit the monitoring of their progress. In order to address the dysfunctional aspects of the core plan, the organization must realign them to match the present objectives. In the case of PepsiCo, they pertain to market research and the development of a new product in response to changes in consumer demand.
Computerized inventory monitoring is one of the company's primary control mechanisms. As one of PepsiCo's main strategic decisions pertains to the reduction of operating expenses for the further lowering of the new product's pricing, this instrument is vital for the successful implementation of PepsiCo's strategy (Gregory, 2017). This technique is supplemented by CVP or Cost-Volume-Profit analysis, which determines how to adjust a company's sales volume and product costs in order to increase its operating profit (Irfanullah, 2019). It also facilitates decision-making for the organization's inventory management.
Automated scheduling is another example of PepsiCo's control systems, which is essential for timely plan implementation. As PepsiCo Company is not the only player on the market, Coca Cola Company competition contributes to the necessity of tracking actual development to be the first to enter a new market (Gregory, 2017). Consequently, the information acquired from the human resource and production space schedules facilitates the comprehension of the process development.
Mission and Organizational Components of the Company
For the effective implementation of PepsiCo's strategic decisions, there must be congruence between its mission and its organizational components. As the company's purpose is to provide food and beverages that satisfy the tastes of clients around the world while taking into account the current health concerns, its components must conform to the worldwide view of the concept. Therefore, the company's culture is centered on incorporating new customer desires into its inventive goods. Managers at PepsiCo encourage the development of leadership abilities, which contributes to the emergence of novel ideas on how to successfully introduce a product to the market.
The structure of the organization and the developed cooperation among its personnel allow for the most effective interchange of ideas. As for the work procedures and control systems, they complement the PepsiCo Company's vision implementation in a manner that is consistent with its strategic decisions. Thus, the organizational components precisely align with PepsiCo's primary goal and enable the company to successfully enter the new market.
It is crucial for the implementation of the PepsiCo strategy to include some ethical values within the plan. They are intended to improve comprehension of the company's mission and values. In order to attract attention to the company's plan, they must become deeds, not merely words. The first principle utilized by PepsiCo is the establishment of an effective organizational structure (Schulman, 2006).
It refers to the necessity of proper duty allocation among employees within the framework of the current cooperation. The second principle focuses on incorporating ethics into employee training while developing abilities in accordance with the selected method (Schulman, 2006). This strategy facilitates the employees' comprehension of the company's principles from the very beginning of their employment with PepsiCo. And finally, the third "prescription" is to articulate values that are authentic and consistent with the overall strategy (Schulman, 2006). According to the analysis of the PepsiCo Company's values and their application when making strategic decisions, all of the aforementioned ethical principles are effectively executed.
Potential Alterations to the Company's Strategy
The implementation of PepsiCo Company's strategy and strategic decisions is a process incorporating its mission, values, ethical standards, and a number of other factors. Utilizing the aforementioned major control systems and organizational components precludes the failure of the generic strategy in general. Additionally, it generates the necessary conditions for market entry. However, the human component continues to be PepsiCo's greatest vulnerability.
High levels of collaboration exist between the company's managers and employees, however their individual decisions may not be as effective as the company's overall decisions. To eliminate this vulnerability, PepsiCo should not only promote its employees in the context of developing solutions for particular present issues, but also expand their independence. The greater the autonomy of the employees, the more adaptable their decision-making process will be.
PepsiCo's response to the emerging conditions demonstrates its capacity to overcome the obstacles associated with entering a new market. Their plan is a potent instrument for ensuring the company's future growth. Human resources play a vital part in this process and contribute to the overall flexibility of PepsiCo's actions. Utilizing essential control systems inside the approach enables evaluation of its progress. PepsiCo would be able to withstand the crisis and maintain its position as an industry leader if it incorporated specific ethical values and altered its workers' decision-making processes.
PepsiCo's operational management, ten decisions, and productivity. The Panmore Institute.
Irfanullah, J. (2019). Analysis of cost, volume, and profitability. Accounting Explanations Web.
Kissinger, D. (2017). An examination of the organizational culture characteristics of PepsiCo. The Panmore Institute.
Schulman, M. (2006). Integrating ethics into the business. Markkula Center for Applied Ethics. Web.
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