The Implementation Program of PepsiCos Strategy Change - Case Study Example

CEO Project: PepsiCo VII. Implementation 7 Implementation Program In implementation of the program, management should consider various factors. This begins with analysis of the current situation of the company in terms of problems, opportunities and strategies. At this point, senior management and company executives should learn the basics of the changes that are introduced, requirements and how it can be implemented effectively. The first action in implementation will involve definition and identification of the relevant steps, which will aid the company in achieving organizational mission. This allows for participation and inclusion in implementation of change strategy at the employee level. Employee goals should be defined through job descriptions, which should incorporate employees’ goal responsibilities. This will allow employees to dedicate their time in performing roles that will enable PepsiCo achieve its goals in change strategy. The process of identification of value addition is very important. It involves distinguishing activities that add value and should be retained, activities that do not add value but cannot be avoided by a company and those activities that do not add value and the company should eliminate them (Čiarnienė and Vienažindienė, 2012). The process of value identification involves workers, experts and customers in identifying product aspects that are of extreme significance. These are the aspects that should be given priority in this project (Mcleod, 2009). Analysis of the PepsiCo’s aims and objectives shows that the company aims to lead in consumer products in the world that produces convenient foods and beverages. The company also seeks to enrich its employees through growth opportunities and ensure that investors get financial rewards (PepsiCo, 2014). PepsiCo seeks to achieve excellent and sustainable financial performance. The company also aims at ensuring human sustainability through its products, as well as environmental sustainability (PepsiCo, 2011). Based on the above mission, aims vision and objectives of PepsiCo, recommended strategy changes should be implemented on a timely basis to ensure success of the company. These features that require implementation of change include PepsiCo’s policies, functional strategy and business strategy. PepsiCo has invested in research and development and high quality operations to ensure that safe products are provided to consumers (Nooyi & Johnston, 2014). The next step will involve identification of the long term strategic plans and short term strategic plans. In this case, long term strategic plans involve changes, which will be carried out on strategy and implemented within a period of two years. Short term strategic plans will involve strategic changes that are achievable within a period of three to six months. After the organizational goals have been identified and a change strategy for them has been formulated, then it will be imperative to identify the goals that each of the relevant department should achieve to enhance overall goals of PepsiCo in strategy change. The departmental goals, which will have to be achieved, include achieving a superior research and development in creating superior beverages and foods that will enable the company rebrand its products. The role of the research and development team will include identification of consumer needs, speculation of changes in tastes and preferences and identification of emerging trends that may alter demand for PepsiCo’s products. The research and development team will also seek to find out whether there are classes of people who have been left out, for instance, people with special diet needs. After identification of these needs, the research and development department should recommend ways in which PepsiCo should include these people its provision of products. Such recommendations should be forwarded to the production department, which will seek to find manufacturing requirements that should be instituted to produce products that meet the aforementioned consumers’ needs. The next step of implementation of this change of strategy program is to specify the new roles of the sales and marketing department of PepsiCo. From analysis of the company’s current performance, it has been established that PepsiCo need to increase online advertisement to create a superior identity of the company’s brands. The roles of the sales and marketing department will include creation of a productive online campaign, through which the company’s products will be marketed. The roles will include issues such as making sure that messages regarding PepsiCo’s products reach as many people as possible so as to ensure that the percentage of people who will be positive to try PepsiCo’s product increases. Advertisements will have to include the use of flyers on various business premises while direct mailing will be used. In addition, billboards, situated within major parts of towns and municipalities will be used to promote the company’s products. These methods will be ideal in increasing awareness to customers about PepsiCo’s products. Customers require a superior experience. This means that the company will seek to create a superior, first experience with customers. This will always make clients to seek more of PepsiCo’s products. The implementation program of PepsiCo’s strategy change will include identification and specification of the roles of the logistics and distribution department. Though PepsiCo has a well performing logistics and distribution department, there is a need to make some improvements so that distribution is steady throughout the world. This will enable the company to compete with other giants in the beverages and soft drink industry such as the Coca Cola Company. It should enhance its distribution network and enlarge its coverage in all continents by including Africa. The next step involves creation of relevant teams which will steer and oversee the implementation, monitoring and evaluation of the project. It is in this stage that an organization creates the project team and executive steering committee. The project is planned and goals are set at this stage. During this stage, the company will address aspects such as selecting and planning for sales, management of the supply chain and planning for manufacturing processes. In the next stage of lean manufacturing implementation, management and relevant departments will ensure that they integrate the supply chain (Powell, Alfnes and Strandhagen, 2012). Integration of the supply chain is aimed at ensuring that an organization can source its raw materials consistently and achieve a steady and timely supply of products to the market by involving all the stakeholders. Therefore, when integration of the supply chain is applied, both suppliers and customers are involved. This is because the organization depends on suppliers for raw materials, as well as, on customers as a source of the market for its finished products. After integrating the supply chain, extensions and enhancements will be made to support the corporate strategy. Therefore, any elements that have not been implemented such as accounting and finance, HR systems and applications, product development, and maintenance and linkage systems to other business will be completed at this stage (Powell, Alfnes and Strandhagen, 2012). When adopting lean manufacturing, technical questions should be fully understood, and existing relationships between a firm’s manufacturing function and other internal and external aspects and functions should be assessed appropriately (Wong, Wong and Ali, 2009). Therefore, there should be evaluation of scheduling, material handling and support equipment, employees, as well as, work processes. In addition, customers, product design, safety, management and culture and tools and techniques should be incorporated in the process. During the process of implementation, management of the company will practice ideal leadership by improving culture, allowing employees to enhance self development, improving employee qualification, making decisions based on firsthand knowledge and embracing customer focus, as well as, ensuring that the organization is aligned on all levels (Dombrowskia and Mielkea 2013). A reliable communication platform is required in implementing the change. This involves a robust communication network that involves other organization so that PepsiCo can learn the principles and methods of management from others. An international communication policy, which should involve a company’s staff should be embraced to enable them participate in reforming the company (Pingyu and Yu, 2010). In order to avoid setting up a costly outsourcing venture, the company will set up risk management plans, to oversee the entire process. Vetter (2009) suggests that before outsourcing, organizations should seek experts’ advice on outsourcing; as such advisors have immense information on outsourcing relations. This is vital in making outsourcing decisions, as the benefits are not only visible but tangible. A risk management plan will ensure that there are no future regrets .Training will be offered to ensure that the personnel is up to date with technology. In cases of political instability, the services that do not affect the day to day running of the business will be outsourced, and a backup plan will be put in place. A clear knowledge and understanding of the outsourcing environment and its political stability, is vital in making decisions on outsourcing. This will enable the outsourcing company know the upheavals and successes that may occur. As a result, a reliable entry and exit plan will be formulated to be implemented when need arises. According to Marchewka (2009), the entire project is a customer sequence, which involves all the stakeholders, who are customers in one way or another. Maintaining early and constant communication with customers is vital for project accomplishment. According to U.S. Department of the Interior Bureau of Reclamation (USDIBR) (2006), in order to focus on customers, project communication should be emphasized. The handout defines project communication as the exchange of project specific information, which emphasizes creation of good relations between the correspondent and the recipient. By focusing on the internal customer, there is well-timed and proper generation of the projects requirements, in terms of raw materials and technology to be used. In addition, product development is also timely and of expected quality. The project team will form the internal customer, where the supplier will be the task manager involved in earlier stages of the project life cycle, which will provide the inputs and communicates to the manager, who in turn will deliver the goods to the customer who is a task manager involved in testing the product. According to USDIBR (2006), customers will help in improving project management by ensuring that addition of value is a fundamental part of the project. Customers may have important and necessary resources or knowledge, to make considerable contribution to the assignment. The importance of both internal and external customers in quality project development is the brainstorming of ideas and developing strategies for the completion of the project. In quality planning, external and internal customers will play a major role in identifying the standards required for the project. They will constantly evaluate the project, to ensure that quality values are met. They will also monitor the results to ensure they are in line with the set conditions. Quality improvement will be enhanced by the customers, and as a result, the quality of project management will be enhanced, giving rise to quality products. In implementing the project, there were a number of issues that PepsiCo should undertake to ensure a successful and workable implementation. The participation of the workers and management staff in the implementation of the project is essential. This will ensure that the workers acknowledge the changes that will take place and the rationale. A forum to train the workers and the management staff will be held to educate and hence introduce them to the new system. Moreover, through the said workshop, workers will be encouraged to acknowledge change, consequently accepting to do things in diverse and up-to-the-minute ways. The implementation program will take off, immediately all the relevant stakeholders have been fully informed of the proposed changes and their benefits to the company. All the stakeholders must be informed before commencement of the implementation program. Resources for implementation must also be identified and secured before implementation begins. The activities of the programs include identification and acquisition of finance, notification of all the stakeholders and allocation of various roles to various stakeholders. Through this implementation program, PepsiCo will achieve its objectives and goals, as well as increase its market coverage across the world and form superior logistics and manufacture of all diet products. Rushing to meet project deadlines is another issue that should be taken aboard. PepsiCo should introduce a workable plan rather than quickening implementation in order to have a new but ineffective system. To have a functional system, the compatibility of the new system and the old one should have be tested in order to incorporate the two into a wholesome running implementation. In conclusion, the necessity of a new system should be clearly outlined in order to agree on a format in which the several divisions of PepsiCo could harmonize activities to bring forth a fully operational organization. Appendix Program Implementation Breakdown Task Timeline Who is Responsible? Definition and identification of relevant steps 1 Month Chief Executive Officer Identification of value addition 2 Months Chief Executive Officer Analysis of PepsiCo’s aims, mission, vision and objectives 1 Month Management Team Identification of long term strategic plans 1 Month Management Team Creation of relevant teams 4 Months Departmental Heads Redefinition of departmental and employee roles 4 Months Relevant Departmental Heads Integration of the supply chain 5 Months Heads of Various Departments References Čiarnienė, R., & Vienažindienė, M. (2012). Lean Manufacturing: Theory and Practice. Economics and Management, 726-732. Dombrowskia, U., & Mielkea, T. (2013). Lean Leadership Fundamental Principles and their Application. Elsevier, 569-574. Marchewka, J. (2009). Information Technology: Project Management. New York: John Wiley & Sons. Mcleod, A. (2009). Conceptual Development of an Introductory Lean Manufacturing Course for Freshmen and Sophomore Level Students in Industrial Technology. The Technology Interface Journal, 1-11. Nooyi, I., & Johnston, H. (2014, February 13). PepsiCo: Sustainable Value Creation. Retrieved from http://www.pepsico.com/Assets/Download/Q4_2013_Webdeck_Final.pdf PepsiCo. (2011). Performance with Purpose: The Promise of PepsiCo-Sustainability Summary 2010. Retrieved from http://www.pepsico.com/Download/PepsiCo_2010_Sustainability_Summary.pdf PepsiCo. (2014). Our Mission and Values. Retrieved from http://www.pepsico.com/Purpose/Our-Mission-and-Values Pingyu, Y., & Yu, Y. (2010). The Barriers toSMEs’ Implementation of Lean Production and Countermeasures: Based on SMS in Wenzhou. International Journal of Innovation, Management and Technology, 220-225. U.S. Department of the Interior Bureau of Reclamation (USDIBR) (2006). Managing water in the West: managing for excellence team 19- adding value to major repair projects. Retrieved from: http://www.usbr.gov/excellence/Finals/team19finalreport.pdf Vetter, R. (2009). The Pros and Cons of Outsourcing. London: Alsbridge Press. Read More