The operations of the PepsiCo Company

The operations of the PepsiCo Company The report based on the operations of PepsiCo was done in the satisfaction of a Dynamics of Strategy Assignment. The company original location is in the United States of America but the company also operates in countries globally ranging from large emerging countries, the BRIC countries: Brazil, Russia, India and China to the small Caribbean Islands. PepsiCo, initiated as Pepsi: a carbonated cola drink in the beverage industry initiated in 1968 and has continued to expand since. The company has expanded through diversification and acquisitions into both the food and beverage industry. The company has been analyzed in terms of its internal and external environment and strategic opportunities for improvement has been proposed. PepsiCos mission Our mission is to be the worlds premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. PepsiCos vision, PepsiCos responsibility is to continually improve all aspects of the world in which we operate   environment, social, economic   creating a better tomorrow than today. Introduction PepsiCo, one of the most diverse and leading companies in the food and beverage industry initiated as Pepsi Cola in 1898 producing only cola beverages. In 1965, the company took the step to merge with another company, Frito Lay, in the food industry to form the company as the name is today, PepsiCo. PepsiCo controls 103 billion litres in market volume in the US beverage industry and concurrently a UDS $321billion in market value. PepsiCo with competitors in both the food and beverage industry, focused on international growth and further diversification. PepsiCo is the second largest beverage producer in the world and the worlds leader in its Frito Lay division in the food (salty snacks) industry. PepsiCo has numerous competitors in both the food and beverage industry: CoCa Cola, Kraft Foods, Unilever, and Nestle. PepsiCo expanded its production initially from Pepsi, a cola beverage to diversifying to water (Aquafina), Quaker Oats in the cereal and snack industry to juices and energy drinks such as Gatorade. The company further acquired and formed joint ventures increasing its product line to teas and root beers. The company acquired and formed joint ventures, along with the purchase of famous restaurant chains such as Kentucky Fried Chicken. PepsiCo currently focuses on growth through Performance with a Purpose: to improve the performance of the company, human and talent sustainability as they move towards being more environment friendly. The assignment seeks to review and analyze the external and internal environment, evaluating whether the company is in strategic fit or drift. When this is determined, the researcher would assess the feasibility, acceptability and suitability of the proposed strategic option of growth in emerging markets. The researcher would then go on to recommend a detailed implementation plan of the chosen strategic option in terms of new product development. Task 1 Evaluation of the External Environment The evaluation of the external environment was undertaken through the use of various tools which analyses conditions, entities, events and factors of the environment in which PepsiCo operates. The tools used by the researcher were the PESTLE analysis, Porters Five Forces, the 3 Cs and the Industry Life Cycle. This analysis of each tool was embarked on to determine how the activities of PepsiCo are influenced by the macro environment and whether the company is in strategic fit. PESTLE Analysis is a tool that could aid organizations making strategies by helping them understand the external environment in which they operate now and how they will operate in the future. In all markets PepsiCo has entered, the government has intervened to some extent, where they were confronted with several political barriers to entry, adhering to laws and regulations. These issues increased, as the company expanded its operations and portfolio. PepsiCo was further affected when the economic downturn negatively impacted on their financial statement as costs fluctuated. Despite this, PepsiCo was granted approval for investment into the company. Cultural and demographic aspects, social factors also affected the operations of PepsiCo which include a shift towards healthier lifestyles. PepsiCo has kept up-to-date with technological advancements by introducing the most recent improvements to machinery in the industry. They have implemented modern media methods to increase brand awareness, allowing them to being innovative, reduce costs and improve quality. PepsiCo faces legal challenges where there were bans placed on advertising in some countries. In some countries the governments have reduced the awarded contract previously set at a term of five years to one year. PepsiCo has decided to go green and be environment friendly, focusing on water, climate changes, agricultural and packaging change. They have initiated to reduce their utility consumption. Michael Porter provided a framework that models an industry as being influenced by five forces. Porters five forces is a framework used by the researcher to determine the competitive intensity of the macro environment in which PepsiCo operate. Considering PepsiCo is one of the dominants in the food and beverage industry there is little room for new entrants to create competitive pressure. Due to capital, market knowledge and experience, PepsiCo has the absolute advantage in terms of cost which would deter new competitors. PepsiCo with the advantage of high bargaining power of suppliers are able to identify, differentiate and substitute inputs. If the suppliers have greater influence on the industry, then PepsiCo would have to pay high prices for the raw materials. PepsiCo allows the buyers a strong bargaining power so that they could maintain the number of buyers they have and attract new ones. Buyers may have greater influence on PepsiCo since there are numerous substitutes for its products. The threat of substitutes which exists within the beverage and food industry is a major issue for PepsiCo, where a price change can prove futile for the company. PepsiCo is fortunate since although there are substitutes for the products there are no close rival, with a diversified portfolio that links directly to PepsiCo at all product levels. This, a strength to the company gives them the competitive advantage of operating in the industry. The 3Cs Model is a business model which offers a strategic look at the factors needed for success The researcher would use the 3Cs model to measure the differences between the actual and the perceived quality of the companys product portfolio, helping to assess the importance of the brand name PepsiCo. Market dominance of certain products such as Frito Lay and Gatorade has been a success since PepsiCo would have increased market share. PepsiCo can maintain this dominance by obtaining control of their brand through patenting. The company can further seek other measures to maintain this success, through innovation by improving existing products. PepsiCo segments its market and goals are directed towards consumers since it is the consumers who the company depends on for revenues and profits. PepsiCo portrayed them as the New Generation or the Pepsi Generation. PepsiCo has even adjusted its portfolio by improving existing products and developing new ones to meet current trends in the market: a healthier lifestyle. Although PepsiCo is dominant in some products in the market they still need to focus on its competitors strategies and techniques. Coca Cola, leader in the beverage industry enjoys the largest market share for carbonated soft drinks. Smaller competitors use strategies to allow them to remain in the market and their size, although smaller than PepsiCo to gain competitive advantage. PepsiCo is in the mature stage of the Industry Life Cycle in the food and beverage industry. This tool with knowledge of past and current market trends are used to predict future trends and potential entrants or threats that may arise in the market. PepsiCo maintains its position by using techniques such as diversification strategies and developing products towards current trends and market development. Critical Assessment of Strategic Resource Capabilities The researcher undertook an analysis of PepsiCos internal environment, comprised of the organizations resources, capabilities and competencies. This assessment helped to determine whether the company is in a strategic fit or drift. Several tools such as the SWOT analysis, the VRIO framework and the Key Success Factors were used. PepsiCo has the second highest market share in the beverage industry but have always had and continues to maintain a strong brand image. The company had the advantage since with their diversified portfolio; they were able to create an image for not only for their cola beverage but for all their products. Due to this PepsiCo encountered additional revenue for growth and was able to invest in technology with helped them to benefit from economies of scale. Despite PepsiCos many strengths they had their fair share of weaknesses. The company has limited themselves with their diversified portfolio since they have concentrated mostly in North America. This could prove that they are not fully utilizing their resources available to them globally especially in emerging countries. This weakness can be converted to an opportunity where it can be used as a strategy towards growth. Further opportunities may emerge where PepsiCo can further diversify through new product development, improvements to old products and acquisitions, towards changing demand, a healthier lifestyle. PepsiCo faces challenges from competitors and the declining economy could also prove as a threat where there is sluggish growth of the economy. PepsiCo with a strong internal work culture, an intangible resource, is structured toward the companys Performance with a Purpose to encourage professionalism and personal development while subsequently having fun. Ideas and comments are most welcomed by the management team. Young employees are given the chance to embrace early responsibility, to accept risks and make some decisions allowing them to develop and become prospective leaders. PepsiCo also focuses external culture where they give back to communities. Geographic location has impacted on the internal culture of PepsiCo where culture is altered towards employees in different regions. The strategic location of the company also helps to improve the distribution of products. At some locations, PepsiCo use to their benefit government incentives to decentralize their operations. This helps to reduce operating costs. Brand imagery, reputation and high employee morale plays a huge role in increasing goodwill of PepsiCo. This intangible asset could lead to a positive impact on the financial statements. Despite the negative outlook from the financial statements due to the economic storm and currency fluctuations, the company was able to achieve growth in 2008. Although numerous government bodies planned to increase taxes for snacks and cola beverages and PepsiCo had a high short term debt, they continued to invest for long term prospects. VRIO framework is an internal tool of analysis in the context of businesses. VRIO is an acronym for the four question framework you ask about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitability (Ease/Difficulty to Imitate), and the question of Organization (ability to exploit the resource or capability). PepsiCo was able to add value to their manufacturing process through innovation and efficiency in all resources: Culture/HR, Location, Brand Image, Goodwill and Financially. All these resources are aligned, organized and exploited by PepsiCo. Culture/HR is the only resource of PepsiCo which can be identified as rare and not possessed by competitors. Although Goodwill is not rare, it is not easily duplicated by customers, hence is imitable and has a sustained competitive advantage. Despite this, if given sufficient time, money and resources all of PepsiCos other resources such as location, brand image and financial prosperity can be emulated, referred to as having a competitive parity. Key Success factors necessary for the success of PepsiCo in the market is that they should continue their use of celebrities in their advertising campaign. This would help to lure customers toward the product. The company can focus on widening their distribution channels as they expand their portfolio. This would help inject additional revenue into the company. Strategic Fit PepsiCo is in a strategic drift to the extent where there is minimal innovation to develop new products. The company prefers to obtain products through mergers and acquisitions, since these products would have been established already and it reduces PepsiCos risk of a failing product. The disadvantage of this is that the brand names of the acquired products are standardized. When PepsiCo acquire these products, they continue to trade under their original name and not the name of the company, such as Gatorade. Another drift of the company is where they fail to have optimal utilization of all their resources. Their advertising campaigns do not include a wide target market. Although the company serves approximately 86% of the worlds population, their advertising is mostly positioned towards the North American markets. Despite the strategic drift of PepsiCo, the company is in a strategic fit due to their strong Culture and Human Resources. This is clearly practiced within the goals of the company Performance with a Purpose. This is advantageous to them since the management team ensures they are practice of good work culture, factors that are rare and cannot be imitated easily. The culture of this organization contributes to standardized operations which lead to high quality of the products, giving them the competitive advantage. Another factor which contributes to PepsiCos being in a fit is that the company has a diversified portfolio with no other single company in the food and beverage industry directly competing with PepsiCos range of products allowing them to sustain their competitive advantage. PepsiCos most recent objectives in their sustainability report is being accomplished and puts the company in strategic fit where they are moving towards meeting the needs of the changing demand towards healthier products. This not only increase revenue but creates a strong brand image and gives the company the competitive advantage. Another object from PepsiCos sustainability report which puts them in a fit is their drive towards going green by reducing utility consumption, the labels in their packaging and usage of plastics. The company currently takes into consideration Green Initiatives, such as building codes when entering new markets. Despite of having few strategic drift issues which cannot be ignored, PepsiCo continues to maintain their competitive advantage in the changing markets and is in a strategic fit. Task 2 Discussion of Strategic Option PepsiCo, since established in 1898 has grown into a vast well established organization with a diversified portfolio. The company has achieved this through all factors in the Ansoff Matrix, allowing them to be the worlds largest food and beverage company. The company has achieved and continues to achieve growth through improvement, diversification of their product portfolio, entering new markets and through new product the development. Through extensive research into PepsiCo, the researcher found PepsiCo has experienced a drastic fall in sales in recent times as a result of the global economic recession and due to changing consumer demands. CEO of the company, together with management has proposed to introduce new products to combat this predicament so that the company can maintain their market status and continue to achieve growth. Through profound investment and innovation, PepsiCo is targeting emerging markets: BRIC countries. In keeping with PepsiCos mission grounded on Performance with a Purpose, their goals of Human Sustainability, and their current proposal, the researcher has chosen new product development as a growth strategy towards the improvement of the future strategic direction of the organization. By this route the company would Suitability Feasibility Acceptability Implementation Plan Conclusion Appendix 1 PESTLE Appendix 2 Porters Five Forces Model Appendix 3 3Cs Model Appendix 4 SWOT Analysis Appendix 5 VRIO Framework Resources Valuable Rare Imitable Organized Competitive Implication Hierarchy of Resources Culture/HR YES YES YES YES SCA Core Financial YES NO NO YES CP Base Location YES NO NO YES CP Base Brand Image YES NO NO YES CP Base Goodwill YES NO YES YES SCA Core Appendix 6 Ansoff Matrix SOURCE: http://tutor2u.net/business/strategy/ansoff_matrix.htm

Motivational Plan

There are five basic theories of motivation. 1) Self-determination theory states that people have three basic needs. 2) Attribution theory wants to know why things happen. 3) Expectancy-value theory is interested in a person’s beliefs about abilities. 4) Social cognitive theory states that human behavior comes from their attributes. 5) Goal orientation theory wants to know the reasons for doing tasks. Self-Determination Theory The self-determination theory states that people have three basic needs. A need for autonomy, which is to feel a sense of self-directedness, the need to feel competent, and the need to be related to something. People are motivated with the things that will help meet these needs. People are motivated when their actions are self-determined. â€Å"The more self-determined the motivation is, the more the person experience positive outcomes, including persisting in the activity† (Lavigne, Vallerand & Miquelon, 2007). People perceive they have choices available to them. This theory gives another reason for negative effects of rewards on intrinsic motivation. Intrinsic motivation is when a student really wants to learn something. Students will be motivated if they feel they relate to what is going on. They also will be motivated if they feel competent. If a student feels they are smart and can do a task successfully, they will be more motivated to get it done. If an individual has the three basic needs they will have self-determination. Attribution Theory Attribution theory wants to know why things happen. It might lead to negative feelings. It could cause someone to give up or try harder depending on the feeling. â€Å"Attribution (explanatory) thinking involves an appraisal of factors contributing to success and failure outcomes and is regarded as instrumental to motivation and goal striving in achievement settings† (Perry, Stupnisky, Daniels & Haynes, 2008). Stability is if the event is constant across time and situations. A cause that is stable is failing a test because they are not smart. Intelligence is unchangeable so it is a stable attribution. A cause that is unstable is not doing well because the student was sick when they took a test. Locus is the cause is either internal of external. Locus that is internal is thinking you do not have the ability or skills to do well. Locus that is external is outside factors. These could be the teacher grades hard, the classroom environment like too noisy or interruptions, or anything that is outside the students’ ability. Control is the belief that a person can control events. If a student makes a bad grade on something, they can make two attributions for this grade. They could possible feel they just are not capable of doing the work or understanding the work. They could also feel they did not put forth a lot of effort and therefore could have controlled the grade. If it is a controllability issue, then the student is likely to try and fix it. Teachers can help students with the attribution theory by helping with stability. They can encourage a student that they are intelligent and capable of doing the work assigned. They can also encourage a student which will help with internal locus. Expectancy-value theory Expectancy-value theory is interested in a person’s belief about abilities and their value of a task. Motivation is determined by one’s expectancies for success and one’s value of the task. How a teacher teaches can influence a student’s beliefs and values. There are four components to this theory. â€Å"Correspond to the students’ beliefs about how well they will perform on upcoming tasks and relate to their perception of being able to carry out their academic projects successfully† (Chouinard & Roy, 2008). An example is a student who thinks they are logical will value problem solving. The intrinsic value is how interesting a task is to a student. If they like what they are doing, they will be motivated to finish it. The utility value is finding usefulness in a task. The student will be motivated if it will help their grade. The last component is cost. The cost value knows it will be worth their time to do it. Usually if a student knows the assignment is not going to be graded, they won’t bother to do it. Student results come from teacher expectancies. If a teacher thinks the tudents will perform poorly and they treat them this way, then they will not do well. If a teacher has high expectations for the students and shows them this, they will do better. If teachers believe that certain groups of students do not value educations, then they will have different expectations for them. Teachers also have different expectations based on culture areas and socioeconomic backgrounds. Socia l Cognitive Theory The social cognitive theory states â€Å"that most human emotion is the direct result of what people think, tell themselves, assume, or believe about themselves and their social situations† (Lantz, 1978). Students are motivated by what they see in other people. If they see that their older brother or sister cannot get anywhere in life because they dropped out, they will be less likely to drop out. They also are motivated if they have a belief they have the ability to perform a certain task. Teachers can influence their beliefs. Teachers can take a weak student and pair them with a strong student to motivate them by what they see in the strong student. Teachers can also motivate them by convincing them they have the ability to do a task. Goal orientation theory Goal orientation theory constitutes a substantial and informative body of knowledge concerning motivational processes in achievement settings and particularly in educational contexts† (Kaplan & Maehr, 2007). The goal orientation theory wants to know the students’ reasons for doing academic tasks. There are two goals: mastery goals and performance goals. Mastery goals are tasks that truly master the material. Perform ance goals are tasks that demonstrate the ability. The theorists also look at approach and avoidance goals. Approach goals are positive motivation. Avoidance goals are negative motivation. Students with mastery goals are looking to improve their competence. Mastery goals have been associated with increased effort. Mastery-focused classrooms are discussions that encourage all students to participate. Students who use mastery goals are often critical thinkers. Students who use performance goals are using cognitive skills. These are the five theories of motivation. They are used by educators everywhere. By understanding them, teachers can help encourage positive motivation and help the students achieve the best education possible.

Psittacosaurus - Facts and Figures

Name: Psittacosaurus (Greek for parrot lizard); pronounced sih-TACK-oh-SORE-us Habitat: Scrublands and deserts of Asia Historical Period: Early to middle Cretaceous (120 to 100 million years ago) Size and Weight: About 3 to 6 feet long and 50 to 175 pounds, depending on species Diet: Plants Distinguishing Characteristics: Short, blunt head with curved beak; small horns on cheeks About Psittacosaurus As you may have guessed from its name, Greek for parrot lizard, what set Psittacosaurus apart from other dinosaurs of the Cretaceous period was its distinctly un-dinosaur-like head. This plant-eaters curved beak made it somewhat reminiscent of a parrot, but otherwise, its squat noggin was distinctly tortoise-like. (One shouldnt draw too much from this analogy; Psittacosaurus, and other ornithischian dinosaurs like it, werent directly ancestral to modern birds, an honor that belongs to saurischian dinosaurs.) Although its often depicted in a four-legged posture, paleontologists believe some species of Psittacosaurus (there are at least 10 currently named) walked or ran on two legs. (A new study concludes that this dinosaur scuttled around on four legs as a juvenile, then assumed a bipedal posture thanks to a growth spurt in its hind legs.) Psittacosaurus seems to have led a relatively quiet life, although the horns on its face--probably a sexually selected characteristic--indicate that the males may have engaged in combat with each other for the right to mate with females. Theres also solid evidence that Psittacosaurus cared for its young after they hatched, like the distantly related duck-billed dinosaurs Maiasaura and Hypacrosaurus. By the way, you wouldnt know it from its small, unprepossessing appearance (six feet from head to tail and 200 pounds, max, for the largest species), but Psittacosaurus is classified as a ceratopsian--the family of horned, frilled dinosaurs the most famous members of which were the much later Triceratops, Protoceratops, and Styracosaurus. In fact, Psittacosaurus was one of the most basal ceratopsians, predated only by the late Jurassic Chaoyangsaurus and itself a close cousin to a bewildering array of proto-ceratopsian genera, including Yinlong and Leptoceratops.

Coxeys Army 1894 March of Unemployed Workers