Orgnistionl Context of PEPSI: Stkeholders and Orgnistionl Culture - Research Paper Example

Orgnistionl context of PEPSI INC: stkeholders nd orgnistionl culture Executive Summry PepsiCo is world leder in convenient foods nd beverges, with revenues of bout $25 billion nd over 142,000 employees. The compny consists of the snck businesses of Frito-Ly North meric nd Frito-Ly Interntionl; the beverge businesses of Pepsi-Col North meric, Gtorde/Tropicn North meric nd PepsiCo Beverges Interntionl; nd Quker Foods North meric, mnufcturer nd mrketer of redy-to-et cerels nd other food products. PepsiCo brnds re vilble in nerly 200 countries nd territories. 2. Mission of the orgniztion Pepsi Inc's overll mission is to increse its shreholders' investment. It does so by offering qulity products tht re sfe, wholesome, economiclly efficient nd environmentlly sound. It requires n orgniztion nd working environment tht ttrcts the best people, fully develops nd chllenges their tlents, encourges free nd spirited collbortion nd mintins the highest stndrds of integrity. 3. Stkeholders Stakeholders are generally defined as any individuals or organizations who have the ability to directly or indirectly affect or are affected by the operations of a program. (Wnous, Reichers, Mlik, 2004) In Pepsi Inc there are two main distinctions concerning the type of stakeholder: internal and external. Internal stakeholders are typically all employees, and might include specific groups such as agency managers; program managers; front-line supervisors; direct-service employees; subject matter experts or occupational specialists; and evaluation, planning, and budgeting staff. External stakeholders are individuals or groups outside the organization that regularly exercise actions that can promote, inhibit, or change the operations of the organization. Types of external stakeholders who might participate include: elected officials, interest groups, union representatives, the media, customers, and citizens. Powerful externl stkeholders re cpble of dominting n orgnistion's strtegy. It is importnt to scertin ech stkeholder's level of interest concerning the orgnistionl purposes nd strtegic choices, nd the level of power they yield. Implementing stkeholder mpping mtrix provides n insight into this, which in turn fcilittes the understnding of Pepsi Inc's politicl priorities. 4. Corporte strtegy Pepsi Inc brnd nmes re mong the best-known nd most respected in the world. Some of the Pepsi Inc brnd nmes re 100 yers old, but the corportion is reltively young. Pepsi Inc. ws founded in 1965 through the merger of Pepsi-Col nd Frito-Ly. Tropicn ws cquired in 1998. In 2001, Pepsi Inc merged with the Quker Ots Compny, creting the world's fifth-lrgest food nd beverge compny, with 15 brnds - ech generting more thn $1 billion in nnul retil sles. The success of PepsiCo is the result of superior products, high stndrds of performnce, distinctive competitive strtegies nd the high level of integrity of our people. Compny's overriding objective is to increse the vlue of our shreholders' investment through integrted operting, investing nd finncing ctivities. Pepsi's strtegy is to concentrte our resources on growing our businesses, both through internl growth nd crefully selected cquisitions. Corporte strtegy is continully fine-tuned to ddress the opportunities nd risks of the globl mrketplce. The corportion's success reflects our continuing commitment to growth nd focus on those businesses where we cn drive our own growth nd crete opportunities. Pepsi's Keys of Corporte Governnce nd Business Ethics: strong record of community support nd corporte citizenship, contributing through The PepsiCo Foundtion, which includes grnts to orgniztions, support of employee volunteerism nd mtching gifts. Commitment to culture of inclusion, providing equl opportunity nd workplce where ll employees hve the opportunity to rech their potentil. Commitment to helping employees blnce their work nd home lives. Cultivtion diverse supplier bse, purchsing growing percentge of our products from minority- nd women-owned firms. Striving to develop products nd processes tht re environmentlly friendly, promoting recycling, reusing nd reducing our impct on our nturl resources wherever possible. 5. Orgniztionl culture Orgniztionl culture is commonly relted to the shred vlue system of n orgnistion, nd provides the bsis for mngeril judgement bout wht is the right nd wrong wy of doing things. Orgniztionl culture, defined s the observble norms nd vlues tht chrcterize n orgniztion, influences which spects of its opertions nd its members become slient nd how members perceive nd interct with one nother, pproch decisions, nd solve problems (Thomsen, 2004). In cse with Pepsi Inc, tsks re given nd controlled by the mnger while other employees such s stff officers, the office mnger, the personnel nd sfety mnger, nd the production mnger report directly to the mnger nd supervisors report directly to the production mnger. In Pepsi Inc, like in ny other orgniztion tht ttempts to build cohesive orgniztionl structure nd pproved orgniztionl culture, the ttention to the level of qulity of service delivered is pid. It is believed, tht the highest qulified nd best people in n orgniztion hving the "wrong" orgniztionl design will in the long run only provide mediocre services. "The concept of being distinguished" is prt of Pepsi Inc's culture. It is common people's psychology to buy the things with fmous brnds. In such wy they tend to prove tht they re different with others, the reson why you cn find mny imittions in the night mrket. Pepsi Inc might focus on the brnding imge nd price strtegy; it might ttrct more customers to purchse the products. (Lindbo, Shultz, 1998) Orgniztionl structure of Pepsi Inc is quite complicted s the objectives nd strtegies for the big compny should be shped by principle "from bottom to the top", mening tht ll personnel should be engged in the performnce of orgniztionl mission. Generlly, orgniztionl structure institutionlizes: * how people will interct with ech other, * how communictions will flow, * how rewrds re distributed, * how power reltionships re defined, nd * wht is importnt to the orgniztion. In other words, orgniztionl structure provides the bsic templte for the continunce of n orgniztion's culture; i.e., norms, vlues, philosophies, nd informl ctivities. Orgniztionl culture provides both the orgniztion nd its members insight into "how things re done round here". (Kopelmn, Brief, Guzzo, 2002) In order to better understnd the orgniztionl structure nd culture of Pepsi Inc, I will further outline the present orgniztion's pproch to the points listed in bove. Workers in Pepsi Inc cn be defined s cohesive nd orgnized tem of people who hve common gols nd ttitudes towrds the orgniztion they work in. They hve certin set of expecttions concerning their own rights nd privileges. Business ethics There re bsiclly three min issues which define corporte ttitude towrd business ethics, the ttitude of workers towrd the work tht they perform (their vision of the wy orgniztionl structure should be systemtized) nd the essentil problems tht mngement stuff ttempts to resolve in order to mximize the profits. One of the more widely held vlues on the prt of the workers is wht they cll "leniency". The workers know they hve job to do nd expect tht, in the process of doing it, mngement will leve them lone. The min obligtion they feel to the compny is tht of productivity. Obedience to supervisors is displyed so long s it is directly relted to job to be done. Hostility is directed towrds mngement when discipline or forced obedience is exerted s mens of sserting the will of mngement. Conversely, the workers commend mngement when given certin privileges or when flexibility is shown in discipline. "Job-shifting" provides nother route for circumventing forml supervisory uthority nd is type of verticl nd horizontl mobility in the plnt. Job-shifting is done by "bidding" for vcncy in the plnt, prompted either by desire for job with higher sttus or s mens to escpe n unplesnt supervisor. The supervisors resent this prctice, since they feel tht they should hve the prerogtive of choosing their own subordintes - nd not the other wy round. third right includes the use of compny mteril for home repirs. The workers expect tht they should hve ccess to the compny's finished product, either without chrge or t very lrge discount, nd tht compny equipment should be mde vilble for use in repiring broken down mchinery or household furnishings. Such n ttitude of workers towrds the wy things should be orgnized t compny cuses resentment which is consequently expressed in the mngements' ttempt to oppose workers' vision of orgniztionl culture nd orgniztionl structure nd set the correct vision of how the mngeril process should be processed in order to mximize the outcome product. Cultural Web When considering the culturl context for Pepsi Inc's business it is useful to turn to the tool of culturl web theory that tends to consist of lyers of vlues, beliefs and wys of doing business within nd outside the compny. It is thus the concept that represents the ctions tken for grnted and enables to understnds how they connect nd influence the strtegy. It is lso useful to understnd nd chrcterise both the compny's culture nd the subcultures in dpttion of future strtegies. Pepsi Inc hs very friendly nd supporting pproch in the routine wys tht stff t Pepsi Inc behve towrds ech other, nd towrds those outside the compny tht cn mke up the wys people do things. The control systems nd mesurements re constntly under the mngement review to monitor the efficiency of the stff nd mngers' decisions. The rituls of the compny's life re the specil events, corporte gtherings, which Pepsi Inc emphsises wht is prticulrly importnt nd reinforce the wy things re done. On-going meetings nd communiction t every level of the compny's hierrchy represent strong internl environment. Conclusion Through profound analasys the above report identified PEPSI INC's current position on grocery mrket, proposed strategies for sustainable business and further development. Results of reserch show that PEPSI INC is on the stage of rebuilding its brnd imges while keeping the leadership position on the mrket. The report reflects promotion strategies for compny products which basically oriented on the locl nd foreign mrkets expansion by means of incresing the costs of dvertisement and endorsement. For Pepsi Inc, with its domnating positions on the grocery market, it is still needed to pay attention to rpidly chnging business environment and be prepared to respond to consumers' sophisticated needs and wants. Pepsi Inc has to learn to dopt to the market and to its requirements and propose new expnsion strtegies. That will enable the Company to diversify existing operations and sustin leding mrket position in n lredy estblished retiling mrket. When constantly accommodating to the fst chnging circumstnces strtegies should consider s process of continuous lerning of gols, effects of possible ctions towrds these gols nd how to implement nd execute ctions foreseen. The qulity of formulted strtegy nd the speed of its implementtion will therefore directly depend on the qulity of Pepsi Inc's cognitive nd behviourl lerning processes. Bibliography: 1. Gerry Johnson, Kevan Scholes, Richard Whittington. "Exploring corporate strategy" 7th ed. 2. Dlton, D. R., W. D. Tudor, M. J. Spendolini, G. J. Fielding, nd L. W. Porter. 1980. "Orgniztionl Structure nd Performnce: Criticl Review." cdemy of Mngement Review 5 (1): 49-64. 3. Glser, S. R., Zmnou, S., & Hcker, K. (1987). Mesuring nd interpreting orgniztionl culture. Mngement Communiction Qurterly, 1, 173-198. 4. Kopelmn, R. E., Brief, . P., & Guzzo, R. . (2002). The role of climte nd culture in productivity. In B. Schneider (Ed.), Orgniztionl climte nd culture (pp. 282-318). Sn Frncisco, C: Jossey-Bss. 5. Lindbo, T. L., & Shultz, K. S. (1998). The role of orgniztionl culture nd mentoring in mture worker sociliztion towrd retirement. Public Productivity & Mngement Review, 22, 49-59. 6. Miller, D. 1981. 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(2004) Using Strtegy in Chnge Your Business Model, Business Strtegy Review, Summer, Vol. 15 Issue 12, pp. 17-24; Read More