3. Strategies of information system Every business should have a business strategy.

This is a long-term plan which shows the direction the business is taking. The business strategy provides an agreed set of objectives for the business. A business strategy might, for example, include plans for new products and new markets. In Pepsi Co case they priorities are creating new products to attract more consumers and increase their profit. A business strategy is important because it allows resources to be targeted and also because it allows the shareholders, customers, banks and employees (the stakeholders of the business) to see that the business is taking account of their interests. The Information Systems Strategy is one part of the business strategy. It will inevitably require resources and it may require a change in working practices within the organization. The IS strategy is concerned with the planning, introduction and use of IT resources for the benefit of the whole organization. SWOT Analysis To formulate a business strategy, a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) may be carried out to identify internal and external factors that have an impact on the business. Strength Activities the firm does well or resources it controls are called strength. The strength of Pepsi Co lies in the loyalty of the product, their market share, size of market, having numerous sales points and efficient delivery system. Weaknesses Activities the firm does not do well or resources it needs but does not possess. Such activities that a firm does not perform or not have some resources those other competitors have. Internationally, Pepsi Co faces some tough competition from Coke. Their weakness is the lack of relationship marketing in some parts of the world. Opportunities A combination of favorable circumstances or situations for organizations products such as loyalty of customer about a products, social environment, size of target market, size of organization, advantages over other competitors.
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Opportunities are coming in the market day by day in the shape of new retailers. Pepsi Co has a big research department; they try to capture each new retailer who comes in the market. Brunei population size is increasing with the passage of time so opportunities are there for Pepsi Co to enhance its sales volume more than others. Threats Unfavorable circumstances that a company faces time by time to achieve its goals are called threats. Sometimes small companies introduce the same products with low quality and low price that the company did not produce. Internationally, Pepsi Co is facing heavy competition from its rival Coke. Coke is focusing global market while Pepsi Co is somehow lagging behind. The situation can become a serious threat to Pepsi Co globally.

3.1 Business organization A company can sometimes increase their effectiveness using multiple organizational structures. Other companies may switch from one type of organizational structure to another to be more effective. The decision for organizational structure usually lies with top management. The size of a company is sometimes the determining factor as to organizational structure effectiveness. Larger companies often benefit from a taller organizational structure. A tall organizational structure contains lots of management levels. Contrarily, small companies will often use flat organizational structures. It is more effective for smaller companies to complete task and projects without waiting on decisions from multiple managers. A flat structure is often more effective in completing tasks and projects faster. Small companies are often in a rapid growth state. Company owners and employees must make quick decisions. The benefits that companies wish to achieve with various organizational structures include increased communication, efficient use of resources and even chain of command. Companies also want to make efficient use of resources and avoid any duplication of efforts. It is important for companies to find the organizational structure that best fits their needs.

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Currently Pepsi is using divisional organizational structure. A divisional organizational structure gives a larger business enterprise the ability to segregate large sections of the company's business into semi-autonomous groups. These groups are mostly self-managed and focused upon a narrow aspect of the company's products or services. As with any organization structure, divisions have both strengths and weaknesses. Weaknesses will be state in later chapter. Below is an example of a divisional organizational structure.
Figures 4 Divisional Organization Structure

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In order to improve more and solve the problems, we propose a matrix organization structure for Pepsi Co. Benefit of matrix structure will be state in later chapter. Below is an example of how matrix organization structure looks like.
Figures 5 Matrix Organization Structure

In the matrix structure, the personnel and other resources that a project manager requires are not permanently assigned to the project, but are obtained from a pool controlled and monitored by a functional manager. Personnel required to perform specific functions in a particular project are detailed for the period necessary, and are then returned to the control of the functional manager for reassignment. Discipline supervisors are responsible for the efforts of the groups constituting assigned project personnel and for other required resources. The members of the groups and their supervisors are charged with the timely completion of the different tasks and are responsible to the project manager and the functional manager. Example: An engineer assigned for a specific period to design a subsystem of a project is responsible to the functional manager for completing the task as scheduled and to the project manager for providing an acceptable design. The managers then report to a matrix executive. The project manager in the matrix works with the functional manager to establish the resource requirements and their timetable utilization on the project, and to work out the
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revisions required as the project effort proceeds. The functional manager is responsible for assuring that resources are utilized in the manner best serving the interests of the organization. The formal role of the matrix executive or top-level management is similar to the top subordinate to the position. The general manager is literally on top of or outside the basic matrix structure and therefore should have a clear perspective of all activities and personnel within the matrix. Here, however, the similarity ends. The general manager leads a dual command structure, the functional and the project hierarchies, which must be balanced through a careful blend of autocratic and cooperative managerial styles. Participation is required, for example, in the arbitration of technical disputes and in resource allocations. Autocracy is essential to the establishment, enforcement, and revision of priorities among and between the functional and project entities within the matrix. These roles involve the three major managerial concerns: Balancing power Managing the decision context Setting standards, high performance standards start at the top.

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