Master of Business Administration

2019-2021

ORGANIZATION STRUCTURE TRAINING

PEPSICO COMPANY

Submitted By:

Jaffin John

(19221013)
 INDEX
1. History of the organization
2. Profile of the product (s)/services
3. Mission, objective and strategies of the organization
4. Organization chart-design & structure
5. Policies and procedure followed
6. Functions of various departments
7. SWOT analysis of the organization
8. Key result areas (KRAs) of the organization
9. Significant factors for success
10. Systems of accounting followed
11. Product promotional measures
12. Career planning and promotion policy of employees
13. Training measures
14. Systems followed for purchase of materials
15. IT systems used with some details
16. HRD measures(include welfare measures)
17. Manpower planning
18. Performance appraisal system
19. Financial highlights of the organization during the last three
years
20 Future plans for growth of the organization
21 Views of managers at various levels and non-managerial staff
22 Advantages and drawbacks of the organization structure
23 Recommendations to overcome the drawbacks.
24 Modifications to organization structure
 HISTORY OF THE ORGANIZATION

 1902- launched the Pepsi cola company.

 The business began to grow and on June 16,1903, Pepsi cola company officially
registered with the U.S. patent office.
 Pepsi cola’s the first bottling line resulted from some less than sophisticated
engineering in the back room for Caleb’s pharmacy.
 Building strong franchise system was one of the Caleb’s greatest achievement.
 Local Pepsi cola bottler, entrepreneurial in spirit and dedicated to the product success.
 They were the cornerstone of the Pepsi cola enterprise.
 Famous car racing driver Barney Oldfield endorsed Pepsi in newspaper ads.
 Pepsi cola enjoyed 17 unbroken year of success.
 1905- new logo was designed.
 1906- new logo was redesigned and a new slogan added “The original pure Food
Drink”.
 1907- trade mark registered in Mexico.
 1932- trademark registered in Argentina.
 1964- a new product, Diet Pepsi was introduced.
 1983- soft drink market grown more competitive and, in this Pepsi, won the battle.
 1988- pepsi entered into the Indian market.
 Know as the largest soft drink in the world.
 PROFILE OF THE PRODUCT

 World’s largest beverage company

 The PepsiCo company has its headquarter in
 There are eight brands of Pepsi in India and all are different in taste, color, and in
flavor also:
 Pepsi
 Mirinda
 7UP
 Mountain Dew
 Slice
 Tropicana
 Eversses soda
 Aquafina water
MISSION, OBJECTIVE, AND STRATEGIES OF THE ORGANIZATION

Mission:

Their mission was to be the world’s premier consumer products company focused on
convenient food and beverages. They pursue to produce financial reward to investor as they
provide opportunities for growth and enrichment to their employee. Everything they do they
strive for honesty, fairness and integrity.

Objective:

Their responsibility is to continually improve all aspect of the world in which they operate-
environment, social, economics.

Their objective is to put action through program and focus on activity that benefit the society,
and a commitment to build shareholder value by making this company as a truly sustainable
company.

Strategies:

Competitive analysis is the strategy used by Pepsi company. Competition from local players
and fake products are the major issue Pepsi is facing. In the market of soft drinks, the main
competitor of Pepsi is Coca-Cola.
ORGANIZATION CHART-DESIGN AND STRUCTURE.
 POLICIES AND PROCEDURES FOLLOWED

Respect of human right is the fundamental value for the PepsiCo company. They built a
reputation on trust and respect and they are dedicated to earning that trust with a set of values
that represent the highest standards of excellence of the company.

 Respect for human right

 Community and stake holder engagement.
 Diversity and inclusion
 Freedom of association and collective bargaining
 Safe and healthy workplace
 Work place security
 Forced labor
 Wages, work hour and benefit
 Land rights and water resources
 Healthy lifestyle
 Guidance and reporting for employees

Procedures:

 Resolution procedure- If there is any complaint then grievance policy and procedure
should be followed. This policy and procedure include formal and informal procedure
to resolve the complaints.
 FUNCTION OF VARIOUS DEPARTMENT AND THEIR MANAGERS

According to their function, the department is divided. For effective control and to serve
these areas more properly the company has the following departments.

• Production Department

• administration and personnel department

• Sales and Marketing Department

• Financial Department

1. Production Department- This department is responsible for production according to

the requirement of customer.

2. Administration and personnel department -It deals with the overall matter of the
company and takes different action for increasing the performance of the company.

3. Sales and Marketing Department- This department make different effort to increase
the sale of the company.

4. Financial Department- It deals with the financial matter of the company. This
department controls the cost and price of the product produced in the company.

 C.E.O- Indra K. Nooyi,

  President- Zein Abdullah
 C.H.R.O.- Cynthia M. Trudell
 C.E.O. (AMEA)- Sanjeev Chadha

SWOT ANALYSIS

STRENGTH:

1. Product diversity
2. Extensive distribution channel
3. Corporate social responsibility
4. Competency in mergers and acquisition
5. Successful marketing and advertising campaign
6. Complementary product sale
7. Employees are also motivated
8. It also sponsor sports, music concert and walks

Weakness:

1. Low pricing
2. Over dependence on Wal-Mart
3. Much weaker brand awareness and market share in the world beverage market
compared to Coca-Cola
4. Too low net profit margin.
5. Doesn’t not offer any type of incentive to its retailer
6. It target only young customer in their promotion.
Opportunities:

1. Growing beverage and snack consumption in emerging market

2. Increasing demand for healthy food and beverages
3. Further expansion through acquisition
4. Bottled water consumption growth
5. Savory snack consumption growth

Threats:

1. Changes in consumer taste

2. Water scarcity
3. Decreasing gross profit margin
4. The government policies and changing requirement of customers can affect the
operation of the company.
5. Increased competition from Coca-Cola.

KEY RESULT AREAS (KRA’s) OF THE ORGANIZATION

Steps in appraising employee performance in PepsiCo company

 Define the job-Making sure that the subordinate agrees in his or her own duties
and job standard
 Appraising the performance-Comparing the subordinate’s performance with the
standard that has been set.
 Provide the feedback-Discuss the subordinate performance and progress and
make a plan for any development required.
 SIGNIFICANT FACTOR OF SUCCESS
The key success factor of PepsiCo company are given below:
 Sweeter
It has a big advantage on the sip test as Pepsi is sweeter than coke. It is like citrusy
flavor burst rather than the vanilla taste of coke.
 Global presence
It is also sold globally in the whole world.
 Licensed bottler
Its bottling structure also permits the firm to take advantage of vast growth
opportunities all over the world.
 High utilization of the fixed asset.
PepsiCo bottling system allows it to operate on a global scale while preserving
a local approach.
 Retail and distribution network
It has a strong network of a convenience store, fast food fountain, vending food
store and restaurant, etc., globally.
 Product innovation capabilities
It provides different product lines according to the specific needs, preference, and
taste of the customer.
 Well recognized brand name.
Brand recognition is an important feature affecting its competitors. It's a brand
name recognized by 90% of the world today itself.

SYSTEM OF ACCOUNTING FOLLOWED

There are three types bottling relationship:

 Bottler that the company has no ownership interest;

 Bottler that the company has a controlling ownership interest
 Bottler that the company has non- controlling ownership interest

 Bottlers partners are authorized to manufacture and package product

 Being able to manufacture primary is advantageous in the company’s part in acquiring
controlling interest In a bottling operation.
 By owning the controlling interest, the company helps in the improvement of its
information system.
 This is when the accounting system and the need for such technology arises.
 The INTRANET SYSTEM as the part of the knowledge management guides very
well information system needed for accounting
(The Coca-Cola Company 2006)

PRODUCT PROMOTIONAL MEASURE

 Radio
They promote their product through radio.
 T.V
 Hoarding
 Road sign
 Sticker
 Neon light.
 Promotion of sales
Company promote their product in different colleges and school’s café and sponsors
their sports events and other extra curriculum activities for getting promoted.
.

CAREER PLANNING AND PROMOTION POLICY OF EMPLOYEE

  Develop cross divisional competency model
 They create career landscape and identify job to be profiled.
 Validate job relevance of model via survey and calibrate across division
 Create position profile for multi-incumbent and key bench mark jobs.
 Implement technology solution and prepare launch to employee with support tools.

PROMOTION POLICY OF EMPLOYEE

Promotion policy is yearly based on the organization, and it is given according to their
performance.

TRAINING MEASURES

 Providing training and development programs.

 Make sure that everyone who works with them has the resources they need to learn
more and build their careers.
 They can have some fun along the way. they want.
 They inspire and motivated the employee to be the best they can be.
 Strengthening the important area of business performance,
 Giving emphasis on employee development plans,
 Internal talent management, leadership development for managers and employee
performance management.

SYSTEM FOLLOWED FOR PURCHASE OF MATERIAL

 Buy at lowest price, reliable with desired quality and service.

 Maintains a high inventory turnover.
 Maintains the specified material quality level and uniformity of quality tends to
efficient and effective operation
 Maintain a good relationship with the supplier
 IT SYSTEM USED
 SAP R/3 from IBM together with ERP system is the most broadly used software in
PepsiCo Company.
 IT have helped them in fast decision making and better product quality and at the
same time reducing the costs of operation.
 It ensures that employees, customer, and suppliers are on the same edge of reference.

HRD MEASURE

 Creating an environment of learning and development

There are a few things that are important to motivate your staff. The first thing is to
create an environment for the employees is to trust and respect for each other. A
learning environment is important for employee development and motivation for a
good salary. Providing employees with a learning environment, it ensures that
employee receives continuous learning and fast growth in their work.

 Training policies

They are trained for three months after recruiting and also pay them salaries after
three months they become part of the firm. They also give training to the existing
employee depending upon the condition.

 Employee engagement

It is also an important factor in employee motivation. To ensure that employee doesn’t

feel frustrated company use employment engagement programs to make them
 motivated. Employees of one nation are sent to another nation to learn their culture.
Such a program can be a key to employee satisfaction.

 Payment and reward

This helps them in keeping the employee happy and satisfied. It is important to pay
the employee fairly if the company wants to attract an efficient worker. Besides
financial compensation, pensions, healthcare and holidays are also considered
important for employee compensation.

MANPOWER PLANNING

 To look out for the well being of all employees of the company.
 Provide leadership and direction to the employees of the company
 Career development planning for employees.
 Ensure through training of nationwide employees.
 Provide employee with solution to their problem
 Evaluate and retain those employees who are asset to the company.

PERFORMANCE APPRAISAL SYSTEM

Jobs are evaluated on yearly basis by the HOD. The competent employee are rewarded in
shape of promotion, bonus, increment, annual holidays and promotion. Unsatisfactory
employees are also given warning.

 Promotion
 Increment
 Free transport
 Medical facility
 Overtime payment
 FUTURE PLAN FOR GROWTH OF THE ORGANIZATION
 Product
 Reduce added sugar
 Reduce saturate fat
 Reduce sodium
 Increase positive nutrition
 Planet
 Positive water impact
 Lower carbon emission
 Source sustainably
 Achieve zero waste to land fill
 Halve waste food
 Recyclable packaging
 People
 Advance respect for human right
 Support diversity and working caregiver
 Spur prosperity

ADVANTAGE AND DRAWBACK OF ORGANISATION STRUCTURE.

 It shows the management structure of the organization at a look. It can also display
other organizational structures, such as relationships between companies with
common or affiliated ownership.
 Organisational charts are used to visualize and plan company reorganizations
  It provides reference for employees to help them understand their role in the
organization, who they report to, and who reports to them.
 Counting other information, such as headshots, telephone numbers and email
addresses allows the organisation chart to also function as an employee directory.

RECOMENDATION
 The sales department should introduce some changes in its marketing activities
 Exclusive outlets are loosing because of irresponsible salesman and their improper
behaviour.
 The number of vans should be increased so that the total outlets, might be covered
properly.
 Grievances of dealer and consumer often do not reach to the concern authority.
 company should make hindrance free arrangement for its customers/retailers to make
any feedback or suggestions as and when they feel.
 New policy for the company should be introduced before the competitors launch those
policies.

Modification

Customer is the king because he has got various choices around him. If you are not capable
of providing him the desired result he will definitely switch over to the other provider.
Therefore to survive in this cutthroat competition, you need to be the best. Customer is no
more loyal in today’s scenario, so you need to be always on your toes. So, should provide
the product what customer expect for them.