Business Report Refreshing Pepsico Product Line Project Business Essay


Executive Summary

PepsiCo Limited is a public company in New York City in the United States of America incorporated in 1965 dealing in consumer products more especially soft drinks. PepsiCo, Incorporation is one of the world's leading consumer product companies with its Pepsi-Cola division being the leading producer of soft drinks. It has a 21percent market share in the world while 29percent of the American carbonated soft drinks market under the influence and command of Pepsi-Cola, a division of the PepsiCo Incorporation. Its products are widely known within and outside the borders of America. Actually, three of its products, Pepsi-Cola, Mountain Dew, and Diet Pepsi & Mdashe are amongst the top ten products in United States of America. This company has grown from what it was known in 1965 until the good market share it shares though with so much competition in the industry.

The company's second division, Frito-Lay Company is the world's greatest and largest distributor of salty snacks influencing and commanding a world's market share of about 40percent and America's market share of 56 percent taking full charge of its competitors. Its third division, Tropicana Products Company is the world's leader in the production and sales of juice holding about 41 percent of the United States of America's chilled juice market. This shows how well the company has been performing since incorporation in 1965 as public limited company its headquarters being in Purchase along the 700 Anderson Hill Road. The company is registered with the New York Chicago Swiss Amsterdam Tokyo Exchange Market (, 2010).

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Historically, PepsiCo, Incorporation has had bad and good times experiencing the boom and recession felt throughout the world and those affecting the USA. In 1898, a pharmacist, Caleb Bradham began by selling a cola beverage called by then Pepsi-Cola and this has recently been rated as one of the leading products not only for the PepsiCo Incorporation but also amongst all the markets of the United States of America. The pharmacist then developed bottling franchises by 1905 but later on in 1923, the company became bankrupt. Five years later another businessperson, Roy Megargel decided to reorganize the bankrupt company into National Pepsi-Cola Company. It was amazing when the newly rejuvenated company became bankrupt three years later, 1931. Loft Incorporation's president had some interest in the company and decided to resurrect it and by 1933, the again rejuvenated company was double increasing the sales dramatically (, 2010).

So many events have so far taken place between the time it was doubled until today when it is one of the leading consumer products. For instance, the three leading products identified in the first paragraph were not the original company but were acquired through acquisitions, mergers, and amalgamations between the mother company and the subsidiary companies. In 1941, the merger between Loft and Pepsi-Cola led to the formation of Pepsi-Cola Company taking into considerations that it has already acquired radio advertisement program for its products. Later on, the formed amalgamation merged again with Frito-Lay through an agreement that the two remain divisions though for the Pepsi-Cola Company. Due to increased vigor through the two amalgamation, the formed company had now acquired resources and did all it could to reduce the level of competition. Amongst the moves to reduce competition were acquisitions of the Taco Bell, Pizza Hut, Kentucky Fried Chicken, the latest being Tropicana in 1998. To date they still want to reduce the competition further no wonder they signed an agreement to acquire Quaker Oats in 2000 for a record acquisition fee of $ 13.4 billion, $ 10.1 billion higher than the amount used to acquire Tropicana (, 2010).

With such increase in the operations, interest has been drawn to come up with a report on the company giving a clear analysis of the current and unfolded events since 1965 making the company to be what it is today. It is a business report giving the details under several headings and sub headings as portrayed in the introduction section.


Industries are faced with opportunities, strengths, weaknesses, and threats thus affecting the operations of their firms. Any firm within industries has the obligations of understand the various challenges facing their industry and the opportunities available for them in an attempt to maximize the profitability. Pepsi-Cola Incorporation is one such company that realized its industry's weakness and strengths using them positively to achieve its status (, 2010). It engaged in the reduction of competition level through acquisitions and amalgamations with the competitors and this gave it an upper hand in achieving its objective of growth and expansions to the status it is enjoying in the contemporary world. A business report on the other hand gives a detailed analysis of a company's operations with intent to understand fully how the company manages its operations and the different ways it applies the managerial skills in obtaining maximization of profits objective assisting in expansion and growth to required levels (, 2010).

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This business report therefore gives a detailed overview of the refreshing Pepsi-Cola Incorporation's product line. Having given a brief history and some brief information of the company, the report embarks on the various management areas of the company. It discusses the project's scope management, time, cost, quality, human, communications, risk, procurement, and integrated supply chain management carried out by the company and its division. It then winds up with conclusion and recommendation after a brief discussion on the strengths and weaknesses of the company.

Project Management of Pepsi-Cola Incorporation's Product Line

Project management has been proved in the contemporary world as the most important innovation of the 21st century affecting directly the young educated professionals in their efforts of managing different organizations. Project management is the process of ensuring upcoming activities of an organization are successfully achieved (Dale 200, p3). The different departments of Pepsi-Cola Incorporation employ managerial skills to ensure efficient and effective achievement of the required goals.

Project's life cycle

This project of refreshing the PepsiCo product line is based on the marketing plan for Greg Libitz's marketing planning project that was developed by him on the November 28th, 2008. It is meant to have a high quality-marketing plan as well as letting every member to experience the roles and responsibilities of being a project manager in any project undertaken by the firm. The project takes the life cycle of first developing the product where new products are to be developed along the project (, 2010). It then focuses on the introduction of the project into the market observe its growth, maturity, and concludes by indicating the different reasons that can lead to its decline and this may be achieved within a given time span. The project life cycle with therefore revolve around the product life cycle but for the purposes of development, it will begin with planning processes (Westland, 2007 p5).

The planning of the project of refreshing Pepsi-Cola incorporation product line will involve the communication after its definition, detailed planning, monitoring and control, followed by the implementation overview. However, Westland (2008, p8) believes that for all these to be achieved, PepsiCo will have to ensure adequate planning of the project, execution, and finally closure of the initiated project. The diagrams in the appendices indicate both the project life cycle as well as the product life cycle.

Scope Management

In any business project scope management is the most important element that management department need to understand and employ effectively and efficiently in order to achieve different goals of the project. Lewis (2007, p 33) defines scope as a collective term referring to the product, service, or results of a given undertaking by a given institution or organization. Therefore, scope management entails all the planning and allocation of resources within the organization and its subdivision (Lewi, 2007: p 35). In order to meet the requirements of the scope management, the management team of Pepsi-Cola Incorporation has ensured that all the three major divisions have set deliverables within specified time, assigned budget within which they carry out their activities, and the expected closure time. The three divisions within the scope of operations of the Pepsi-Cola Incorporation have been given targets to help achieve the objectives of growth and expansion as well as increase the profitability of the company (, 2010).

The company has organized its operations into three business units each having a responsibility in regards to attaining the firm's objectives and goals. There are those dealing specifically with beverages while other food staff. In addition, each of the Pepsi-Cola Incorporation business unit is given jurisdiction upon which they function (, 2010). The specification of the product and the business are is the scope management employed by the management of the larger group of Pepsi-Cola Incorporation. It is true this has been its strengths propelling it to the current height it is enjoying in the whole world. Scope management of the product line project has been successful through the development of the various units mandated with responsibilities of developing specific products to specific geographical areas within stipulated time (, 2010).

Time Management

The most important resource other than the various assets that PepsiCo takes seriously is the time resource in an attempt to achieve the objectives of this project of refreshing the product line of the firm (, 2010). In so doing, the firm has identified the major parts of the project to be fulfilled including the initiating, planning, execution, and closing down the project other than other functions of communicating it and following the other desirable procedures in ensuring that it meets the required objectives. After the identification, various departments were assigned different responsibilities in order to reduce the time taken for development of the project. Through a marketing plan developed by Greg, the firm identified the market that they want to reach thereby engaging the necessary resources.

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Time management entails so many activities among them proper planning to reduce the time taken in doing unplanned activities. In addition, the firm ensured that the proper plan for executing the project was prepared thus giving a chronological order upon which the project will be carried out (Mancini, 2007 p114). They then ensured that all the available resources were put in place thus minimizing the time for acquiring the resources during the time of execution of the project. Since there are three business units, the firm distributed the functions to the various units for implementation.

PepsiCo managed time through the completion and approval of timesheets; a document recording allocation of time against a set of project. This was done after they had calculated the time needed for refreshing the product line and knowing the amount of resources required for each phase of the project including the human resource. Westland (2007, p135) asserts that even though time management process is usually initiated after the project plan has been documented formally and the project is underway, it is always advisable to complete timelines or timesheets in time to avoid unnecessary delays in the project execution later on. According to him, project management is very crucial no wonder PepsiCo took so much emphasis on the same.

Cost Management

Cost management process is a technique by which all the costs or expenses likely to be incurred or rather incurred on a given project are formally identified, approved, and paid up. Examples of such costs include labor costs, equipment costs, material costs, and administration costs associated with the execution of a project (). PepsiCo accurately identified the relevant costs associated with the project. In doing so, the firm engaged in research and development in an attempt to achieve the objective of the project. They also identified the various project resources including human resources and the various materials required in the execution of the project (Hansen, Mowen & Guan, 2009 p59)

After the identification, PepsiCo prepared a budget for each business unit and this helped them identify the necessities of ensuring that the project went on successfully. After this, they engaged in the acquisition of the required resources and ensured that all the actual expenses were written against the predicted value and this helped them know any discrepancy whenever they existed. They did this through completion of the expense reports by the management of the firm and this helped them follow up how the spent the set aside amount for refreshing the product line. In a nut shell, the followed the three processes of cost management that is documentation of expenses, approval, and registration of the same against the predicted values.

Quality Management

From the business perspective, quality refers to the extent to which the final deliverable conforms to the customer requirements, needs, tastes, and satisfaction. Therefore, quality management can be used to refer to the process by which quality is assured and controlled for various underlying projects using various methods for assuring and controlling the desired quality (Pfeider, 2002 p91). PepsiCo is a firm with various departments and one of the departments is the quality assurance department empowered to ensure quality within the business. PepsiCo used the department to ensure high quality of the newly refreshed product line to meet the requirement of the customers. Quality products have since attracted so much market thus growing and expanding extensively.

Human Resource Management

In PepsiCo this is a department headed by Cynthia M. Trudell as the Senior Vice President as a well as the Chief Personnel Officer. In this department, human sustainability is the key element and it means nourishing consumers with not only health products but also rounding out equation by promoting active lifestyles among the human resources. For any project to be successful there is need to manage the people who will be in charge of executing such projects (, 2010). PepsiCo ensured that the working conditions for the implementation of the project were never flawed. In addition, they insured proper human resource training and updating in an attempt to gain the required skills to implement the project. Most of the processes in achieving the refreshment of the product line were done by the human resource hence proper measures had to be taken to ensure no malice in their functions thus successful execution of the project (Mathis & Jackson, 2008 p48).

Communication Management

Communication is the passing of messages from one person to the other in order to achieve a specific objective. For the process of the project fulfilment to hold, there is need for efficient communication in order to get things done (Narayan, 2000 p254). PepsiCo engaged in both vertical and horizontal communication where the former refers to the communication between people in different managerial positions and the latter is the passage of information amongst and within the employees of management team at the same level. This ensured a peaceful execution of the refreshment of the product line for the firm. As a result, the firm maintained their market share through ensuring that all the customers' needs and wants were satisfied.

Risk Management

Risks within the PepsiCo include the product demand, reputation, information technology, supply chain, retail, consolidation, loss of customers and failure to maintain good relationship with the bottling partners, global, economic, environmental and political conditions, regulatory environment, workforce retention, and outsourcing, raw materials, and other supplies, competition, and market risks. Since these are very many they decided to work on the first, which is the product risk through refreshing the product line. They however identified the risks involved in the project management of the refreshing objectives. Using the normal procedures, the identified the possible risks within the project, assessed the identified risks, prioritize the already assessed, and employ a suitable response to mitigate the risks for a better project delivery (Frenkel, Hommel & Dufey, 2007 p35).

In order to achieve the risk mitigation process, PepsiCo created a risk plan entailing the project activities, resources, and financial expenditure placed in a reasonable plan to help know the possibility of having the risks and ensuring that they do not affect the operations of the execution of the risks (, 2010). Through the department of risk management headed by Richard Goodman ensured that the project risks were identified and then mitigated by the members mandated with the project of refreshing the product line so as to increase the market share of the company. Risk management process of projects are very crucial in ensuring that projects being undertaken are never pulled back by other risky activities hence completing the life cycle of the project. It is important for a firm to ensure that all the efforts are put in place to ensure that the project is successful. This is exactly what the PepsiCo did in executing its refreshment of product line project.

Procurement Management

Within the project, the firm outsourced for certain materials through procurement processes. The procurement process was to ensure that they obtained high quality materials in order to enhance the quality of the rejuvenated line of product. The result was good companies that brought in the materials and today they have become the bottling partners with the PepsiCo Incorporation. Procurement management is useful in ensuring that materials used in the manufacturing of the product are of required quality (Fleming, 2003 p96).

Integration/ Supply Chain Management

Supply chain management employed by the organization involved the integration of all the business units other than them having their own supply chain. It refers to the distribution channels a firm employs in order to ensure that all the products reach the customers at the right time, right place, in the right quality and quantity, and at the right place. Supply chain management is a useful tool in ensuring effective and efficient production and operation processes within the firm. This ensured that the PepsiCo acquired an integrated supply chain where all the business units and their global subsidiaries achieve the perfect channel for the distribution of the rejuvenated product line (Jesperson & Skjott-Larsen, 2005 p212).

Strengths and weaknesses

Even though the refreshment of the product project was achieved, some weaknesses and strengths were experienced. The table below indicates some of the weaknesses and strengths obtained in achieving the project.

Function/ Process



Project Identification

Expertise for identification

Numerous to choose from

Availability of resources

Adequate time

Inadequate resources

Project Initiation

Expertise for identification

Numerous to choose from

Availability of resources

Poor managerial problems

Project Planning

Expertise for planning

Availability of resources

Longer time for planning

Project Execution

Expertise for execution

Numerous to choose from

Availability of resources

Resistance to change

Project Closure

Expertise for closure

Numerous to choose from

Availability of resources

Longer time

Project Communication

Expertise for communication

Availability of resources

Resistance to change

Project Implementation

Expertise for implementation

Numerous to choose from

Availability of resource

Resistance to change

In summary, the following table shows some examples of the roles played by the above management practices in the project life cycle of the refreshment of the product line

Management Process

Functions in the Project Life Cycle

Scope Management

Proper planning for the project

Engaged in differentiation and

Time Management

Timely planning

Timely execution of the project

Timely communication

Doing all the other function in time

Cost Management

All expenses are taken care of

Functions are prioritize

Quality Management

Product line produced of high quality

Quality plan for execution

Human Resource

Proper human resource in each function

Proper coordination


Proper planning process

Proper functioning of all the area


Good material for planning

Efficient services in implementation

Supply Chain

Implementation process complete

Risk Management

Various risks involve

Mitigate all the risks in all the processes