Pepsico Is A World Leader Commerce Essay

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PepsiCo is a world leader in snacks, beverages and foods. It leads with the revenue of $39 billion and has over 185,000 employees working in PepsiCo. It owns the post popular brands of the world which are Pepsi cola, Doritos, Pepsi Diet, Lay's, Mountain Dew, Tropicana and Quaker. In this the study organizational analysis has been made to find out the drawbacks of the organization in its HR frame and in Leadership frame.

Company Profile:

PepsiCo was founded in 1965 because of the Frito Lay and Pepsi cola merged. In 1998 Tropicana was acquired and PepsiCo merged with Quaker Oats Company in 2001.

Mission Statement:

The mission of PepsiCo is to be the world's outstanding manufacturer of foods and beverages. PepsiCo provides Opportunity growth and enrichment to their employees, and business partner in which the community they operate. The basic motto is to strive for truthfulness, ethics and hardworking.


The vision statement of PepsiCo is to do action through programs and it focuses on environmental stewardship, do activities to benefit the society and being a truly sustainable company make commitment to build shareholder value.

Performance with Purpose:

The purpose of PepsiCo's employees is to achieve financial and business achievement through performance with purpose and leave a positive imprint on the society. Their approach to financial performance is straight forward. They deliver by addressing environmental and social issues which is to deliver on their purpose agenda which basically consist of human, environment and talent. (PepsiCo Inc., 2010- 11)

Corporate Division:

At PepsiCo reports to operations as follows, by portions:

PepsiCo America Foods (PAF)

PepsiCo Americas Beverages (PAB)

Frito-Lay North America (FLNA)

Quaker Foods North America (QFNA)

Latin America Foods (LAF)

PepsiCo India (PI)


Middle East/Africa/Asia

Figure : Divisions of PepsiCo

Phase of Growth:

It is the speed of an organization on which it experiences the phase of evolution and revolution according to the market environment. This evolution process can be long or short. In the revolution period the organization can avoid the change in management practices for a longer time to be safe from the effects (Greiner, 1972).

PepsiCo "AMEA" stands at Phase 5 of "Collaboration" according to the evolution and revolution as organization grows (Greiner, 1972). It emphasize on management actions and to control them with skillful actions. It is more flexible and behavioral approach in organizational management. The characteristics of this phase are as follows:

It focuses on problem solving techniques with team actions

The employees within a group assign for team tasks to check the performance

Organization have the matrix structure

The number of experts are reduced or gathered in interdisciplinary groups for consultation.

Meetings with the managerial staff held for identification of problems.

In daily decision making system the real time information is used.

Training for managers held in the organization for achieving better results

Rewards are given to the to improve the individual performance

Innovative ideas are encouraged in the organization.

Organizational Analysis:

Organizational analysis describe where HRD is needed, all the factors such as environmental and organizational which may affect HRD efforts. By knowing these factors it proves that the HRD programs are tied in the organization. The communication between the HRD activities and the organizational strategic plans makes the HRD program clearer (Jon M. Werner, 2009).

Identification of Issue:

At PepsiCo "AMEA", it has been analyze by doing observation that the employees of the organization are facing some problems which is directly affecting the performance of the employees.

We will be framing the issue based on HR frames which related to the relationship between both of them. The issues that company are suffering from:

Managers are treating employees by theory x which had effect the employee performance and it is not appropriate to implement the same theory to the whole employee.

The relationship between the employees and organization of PepsiCo is not cleared. What organization excepting from the employee for example their energy, creativity and hard working. What the employees expecting from the organization as example competitive salaries, suitable environment to work on.

Interpretation Stage:

Theory X:

Managers are dealing all the employees with theory X which is not suitable for all the employees in any organization. According to this theory McGregor explain that the people of organization are lazy and wants an additional force to make them work. They do not have high ambitions and do not like change in any form.

Management of theory X: the management for theory is based on four steps, which are as follows:

Coercion: this may cause into low productivity of the organization because of lack of interest of the employees towards work.

Tight Controls: that can be treated with tight control like watching every step of production process carefully and do not let any employee to leave any gap between them.

Threats: the thirds step, if the employee does not improve the performance can be threats. Threats of being fired from the job, holding the bonuses and incentives or holding the promotion process can be the one.

Punishment: if the employee does not change after getting the threats from the management the last step will be punishment. Which can be any form deport, transfer to a lower position or low value area, hold the salary.


What is the Issue?

At PepsiCo "AMEA", all the employees do not based on theory X but the management is treating them as one. Which is not fair with the people who based on theory Y, people of Theory Y are motivated, change interested, ambitious, and prefer to lead. This has to be given a vital importance to separate the theory X and theory Y employees, so that different behavior of management could be made with different employees.

Model used to resolve the issue:

The environmental scan model, 5 step problem solving model, is being used to resolve the issue. In this model 5 steps are involve to find out and resolve the issue. The steps are as follows:






Important roles as it pertains the issue:

This will help the worker to do their task to end. The issue of theory X people will be resolve under the tight instruction of the 5 step model used by the management only on the theory X people. This model will help the management to not disturb the people who are working correctly under the instructions of the management and fall into the category of theory Y workers.

The causes and effect relationship:

The results of using this model will help to do the task successfully and ultimately workers will meet the deadline. The management will achieve the desired goals and the team members will be busy with their role in the task under this tight control of the management which will not let the lazy people to get reluctant for their work.

The results of not using this 5 step model will hurt the people who are already doing well for the organization. It will slow the movement of the organization towards the goal. And conflict will arise among the management and the workers of the organization. The management will not be assured of the success of the work.

Leadership Problem:

The second issue is the relationship of employees is not good enough for the company. This problem occurs because of lack of communication flow among the management and the employees of the organization. The leadership process is based on following steps:

Personal qualities: it is based on two major functions which are personal governance and personal management knowledge. A leader has to be perfect in these categories because he have to follow by the employees of the organization that is why the knowledge of a leader should be advance and up-to-date.

Service Excellence: service excellence is to ensure that the focus of organization is towards the desired output. And for the leaders it is there duty to govern the employees towards the right path to get the desired goals but at PepsiCo "AMEA" this has been the problem.

Future Focus: the leaders of PepsiCo "AMEA" are less future focused the goals of the organization are not identified enough to the employees. That is why the organization is following the problem. They do not develop the capability and capacity with partners.


What is the Issue?

These problems affect the performance of the organization because the satisfaction of the employees is essential for the organization. The tension among the employees and the managers does not promote a healthy environment because of which the performance and the output of the organization hurt badly.

Model used to resolve the issue:

To resolve the issue of leadership, the Environmental Scan Model which is SWOT Analysis, will be done. This will help the organization to work out the management of the leadership problems. And will promote a healthy environment among the leaders and the workers.

Important roles as it pertains the issue:

The important roles of this model are is to find out the Strengths, Weaknesses of the leaders and then provide them with opportunities of changing the behavior and also shows the threats if they keep on doing with the old one without changing it.

The causes and effect relationship:

The results of using this model will lessen the chaos among the leaders and the workers. It will help the workers to find out what possible things the leaders can do to make the relationship with workers worthwhile. It will make the leaders to improve their personal qualities and make them future focused.

The results of not using this model will effect in increasing the chaos among the management and the workers. Without using this model it is possible that the leaders feel insulted if the upper management ask them to change the behavior. This model will provide the environment of training which will help the leaders to understand their possibilities of improving.