COURSE/UNIT INFORMATION

Course MBA – UCAM

Course Level Postgraduate
Module Name Operations Management
Awarding Body CIQ/UCAM
Module Code GM702
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ASSIGNMENT INFORMATION
Full/ Part Assignment Full
Assignment brief IV by Dr. Vivek Mohan
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Turnitin Class ID 19578115
Turnitin Enrolment Key CIQGM700
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Task 2: Report 30

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referenced as per Harvard Referring format. I further confirm that I have read and understood the
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Table of Contents
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01.Executive Summary

PepsiCo is the second biggest company in the global food and beverage industry. PepsiCo has
been on top of the Fortune 500 list for many years.

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In this study, it discusses the operations management (OM) of PepsiCo and strategic decisions
related to OM in business processes.

SWOT analysis and PESTLE analysis shows the competitive position of PepsiCo. It also shows
the success of business processes, mainly operations and quality processes of the company.

PepsiCo gets advantages of information technology using SAP ERP system and CRM systems in
their business process.

Also the effect of artificial intelligence on PepsiCo was discussed in this study.

02. PepsiCo

02.1 Introduction

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PepsiCo is one of the most diversified and pioneering companies in the food and beverage
industry, beginning as Pepsi Cola in 1898 to produce only cola drinks.

More than a billion people consume PepsiCo products per day in more than 200 countries around
the world. It’s product line includes a wide range of food and beverage sweets, including 23
brands that reach more than a billion retail stores each year.

PepsiCo is the second largest beverage producer and world leader in the snack foods (salty
snacks) segment. PepsiCo has several competitors in the food and beverage sector: Coca-Cola,
Croft Foods, Unilever, and Nestle. Currently they focus on business growth through increasing
their overall business Performance. They target human and talent sustainability as they move
towards being more environment friendly (Anon., n.d.).

Vision

BE THE GLOBAL LEADER IN CONVENIENT FOODS AND BEVERAGES INDUSTRY

BY WINNING WITH PURPOSE.

Mission of PepsiCo

CREATE MORE SMILES WITH EVERY SIP AND EVERY BITE

They have divide their mission into five categories;

For consumer

The company plans on creating smiles for its customers through delicious and nourishing
products and unique brand experiences.

For customers

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PepsiCo consider the being best business partner to bring smiles in customers’ face.

For acquaintances and society

Create smiles in acquaintances and society by creating meaningful job opportunities and giving
people chances to learn valuable skills to build successful careers.

For Shareholders

Brings smiles for its shareholders by running the business based on best corporate and ethical
governance and also delivering suitable Total Shareholder Return (TSR).

For the world

They bring smiles to the world by conserving valuable natural resources and promoting greater
planetary potential for children and grandchildren.

02.2.organizational objectives

PepsiCo has identified achieving following objectives helps to reach the mission of their
company.

Achieving growth through mergers and acquisitions (M&A) - Through this they try to reduce
overall cost of company and cost leadership in the market and expand their business.

Forming strategic alliances on a global scale and focusing on emerging markets.- From this
strategy, PepsiCo tries to protect their market place.

Focusing on organizational culture.- They target a diverse and inclusive work environment.

Developing and promoting the idea of One PepsiCo - Reaching to new market places through
new product developments.

Innovation in marketing initiatives. - Trying to be a unique brand name in the beverage industry.
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03. Evaluating the success of existing operations management and quality management process

PepsiCo is a second biggest company in the global food and beverage industry. Effective
operation management practices of company mostly affected the survive of this position. They
have identified ten decision areas related to operation management (Heizer & Render, 2011)
which are cover the total business needs and wants. These decisions lead to achieve above
mentioned strategic objectives with optimal performance of organization. This integrated
approach considers the different variations in market conditions, internal business area and
productivity requirements in products.

03.1.Strategic decision areas

01. Design of goods and services – Objective of this decision area is to match products and
services with organizational capacity and market demand and preferences.

PepsiCo, continuously do the market- based research and development activities and product
innovations. After they identified market requirement, they produce goods and services related to
that. For an example, Non-Carbonated drinks. They conduct market research about current trends
and consumer lifestyle. Because it’s mostly affected to the future directions of business. For an
example, now a day they do market research to find the Covid-19 situation and demand of their
products.

02. Quality management – Objective of this strategic decision area is optimizing the quality
of their products based on the consumer and business expectations.

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According to the mission of PepsiCo, they always consider the sustainability of human in the
world. To achieve that goal, they provide highest quality products to consumers. They believe
effective quality management is a long-term investment to making unique brand name.

03. Process and capacity design – Achieving cost leadership through capacity utilization and
process efficiency is objective of this strategy.

For that they aim to maximize its productivity – cost ration in manufacturing process. For
example, most of processes are automated and they use ERP system to combined the whole
business process. And also their manufacturing facilities are designed with high output assembly
lines.

04. Location strategy – In this context, objective is maximizing the reach of target market.

For that they try to establish their own facilities and partners’ owned facilities in world wide.
PepsiCo, facilitated outlets and factories according to the most retailers’ areas. They mostly
interested in large retail outlets and food service establishments like Pizza Huts, McDonalds,
KFC.

05. Layout desing and strategy – Improve productivity and efficiency in process is objective
of this area.

PepsiCo is using mass production to fulfill the demand. For that efficient movement of people,
information and materials higly affected to manufacturing process. Their production facilities
based on the Total Quality Management (TQM) principles like six sigma, lean manufacturing.

06. Job Design and Human Resources – Objectives of this decision is to ensure adequacy of
workforce of PepsiCo.

In mission of PepsiCo, they give place to their workforce and work environment. They believe
better work environment affect to adequacy of employees and employees with good mind helps
to success of the company. Therefore, they maintain good HR practices. For example, PepsiCo
has HR policy and job design process for Frito-Lay, and separate HR policy and job design
process for Quaker Foods.

07. Supply chain management – Objective of this strategic decision optimize the supply
chain practices that match materials’ demand and demand for intermediary products.They

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 provide different supply chain hubs to each regional areas to optimize the response time
to demand fluctuations.
08. Inventory management – PepsiCo has automated inventory management system and
managers can get real time data relevant to the finished goods, raw materials and work in
progress. Through this they try to improve scheduling and adequacy and minimize the
inventory cost of organization.
09. Scheduling – Automated scheduling system for production space and facility and human
resource scheduling system save the time of business process and increase accuracy of
system.
10. Maintenance - To support for growth of PepsiCo, facilities are expanded, acquired and
constructed in better way and operation management system focus the adequate
workforce and other resources.

03.2. SWOT Analysis

To evaluate the success of operations and quality management process in short term and long
term, SWOT analysis is best approach for PepsiCo (Madsen, 2016).

SWOT analysis is a framework used to evaluate the competitive position of companies and to
develop strategic planning of organization. If company has good competitive advantage, we can
conclude that current operations and quality management process is successful and its give more
value to business.

S – Strenghts - Strengths are things that organization does particularly well, or in a way that
distinguishes from competitors.

W – Weekness- They are inherent features of organization.

O - Opportunity- Opportunities are openings or chances for something positive to happen, but
company will need to claim them for yourself!

T – Threats- Threats include anything that can negatively affect business from the outside.

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(PepsiCo, 2012)

Strengths Weakness
 Best global brand – PepsiCo get  Effects of Failed Products – PepsiCo
highest ranking in food and beverage failed some products like Pepsi Blue
industry and highest brand value. and Crystal Pepsi. That highly affect
 Effective supply chain management – to the customer satisfaction.
Major strength in SC is a logistic  Products Perceived as Unhealthy –
supremacy and PepsiCo purchase raw Customer perception is highly
materials at cheapest price level from recommending to the growth of
all around suppliers. business, if they perceived product
 Direct store delivery – To ensures that with bad image. Ex: High sugar
independent bottlers and distributors Products.
deliver snacks, foods, and beverages  Overdependence on Food and
directly to retails stores, PepsiCo used Beverages – Over dependency on
Direct Store Delivery system. Packaged goods and carbonated
Through that they can increase beverages caused to bad effect on
visibility of supply chain. business.
 Most diversified portfolio – PepsiCo
has 22 brands in food and beverage
industry. It’s a high level of
diversified portfolio in this industry.
 Market dominance – PepsiCo gets
market place favor superior and
dominance business than Coca-Cola
products who is main competitor to
PepsiCo.
 Customer loyalty – Younger
generation especially consume
PepsiCo product when they use soft
drinks.

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 Opportunity Threats

 Introduce New Flavors – According to  Government Laws and Regulations –

the market place and customer Government established pro- health
preferences, PepsiCo can introduce regulations to reduce lifestyle diseases
new products to new markets. strictly.
 Acquisition of Energy Drink – To face  Changes in Demographics – Some of
the competition with Monster demographic and economic situation
beverage, PepsiCo acquire Rockstar transform business. Ex: Demographic
Energy beverages. of Nordic nations have shifted with
 Product Diversification – Market increasing older consumer than
diversification and product younger consumers.
diversification give more value to  Economic Slowdown or Recession -
business. In the 2008-09 recession, PepsiCo had
 Expand E-Commerce – Because in to cut over 3300 jobs due to a decrease
global context, customers addicted to in soft drink sales.
online shopping.  Stiff Competition - PepsiCo’s
 Increase Healthy Options – Most of profitability and market share are
consumers firstly identified product threatened by stiff competition from
with healthful or not. Coca Cola, Nestle, Dr. Peppers,
 Enhance Corporate Social Unilever, etc.
Responsibility – Now a day, they
donate highly for people who affected
by Covid- 19.

03.3.PESTLE Analysis of PepsiCo.

Analytical Coordination PESTLE (Political, Economic, Social, Technological, Legal and

Environmental) is a strategic management tool that identifies many important external factors for
a company based on remote or macro environmental conditions (Gillespie, 2007). To maintain

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market position, PepsiCo's strategic decision-making process should take into account the issues
described in this PESTLE analysis.

Tool Factors
Political  Changes of countries’ political scenarios.
 Political participation in accordance with the laws and regulations.
 Government initiatives against carbonated drinks.
Economical  The current slowdown in the Chinese economy threatens PepsiCo's
potential international growth, given that China is one of the largest
in the world.
 Economic stability of most major markets like developed countries.
Ex: United states, New Zealand.
 Rapid growth of developing economies in world.
Social  Raising health awareness is a risk for PepsiCo, as its products are
related to sugar, salt and fat.
 PepsiCo can also benefit from the busy lives of consumers,
especially in markets and businesses around the world.
 Increasing consumers’ preferences in flavored sparkling water.
Technological  Based on investment in R&D in industry, PepsiCo will be able to
use R&D investment to increase its efficiency in this industry.
 It can perform an increase in the number of automated operations in
the company.
 Using some kind of systems and tools PepsiCo can reduce time of
business process.
Legal  The fight against Genetically modified organisms (GMO)s is on the
rise worldwide, especially in Europe. PepsiCo has the opportunity to
reduce the use of GM products to comply with these regulations.
 PepsiCo may improve their product portfolio to address the laws and
regulations about products’ safety and health effects.
Environmental  Consumers are pushing companies like PepsiCo to improve their
sustainability standing in industry.

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  The company could expand its global supply line to reduce its
awareness of climate change.
 More complex expectations and standards for waste expulsion.

04. Operations Management Tools & Techniques

The Tools of Operations Management that I will be using are the Fishbone Diagram and TQM

1.Fishbone Diagram - Quality issues of the products

Fish bone theory and the fish bone diagram was done by Ms.Kaoru Ishikawa. This theory was
also known as Ishikawa diagram as the theory was developed by her. This theory is based on the
idea that problems should be analyzed by writing them down on a piece of paper and then relate
them to the cause and effect. This theory has since been used in various disciplines. (Alsmadi,
Almani and Jerisat, 2012)

This theory is very important part of management studies as it ensures that the problems that an
organization faces is first jotted down and then analyzed and gives clear, easy understanding of
the problems with a pictorial look (E.Kearny, 1992)

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Materials:
Contaminated Ground Water
Management:
Ignorant of Quality Issues
Although various hi technical machines were
used for the purification of the water that
being used in the production of Pepsi, there
was issues in the quality of the water. When
an investigative committee was formed to
look into what led to the discovery of
pesticides in Pepsi cans, it was discovered
that the ground water had been contaminated.
Various water purifiers are available in the
Pepsi Company and they boost of use of high
boiling canisters that free the water. In fact,
Pepsi's quality process states that distilled
water, not filtered water, is utilized to make
the soft drink. If this process be really
followed in reality Pepsi would have not
suffered huge losses and tarnished the brand
name and reputation of the Company.
Therefore, the water treatment was a
discrepancy in Pepsi's work plan, which failed
to meet the quality assurance stage.
The corporation should also be aware that
when the product they are creating is a
consumable item, extra care must be taken to
ensure that it does not pose any health risks.
This is because even minor neglect on the part
of the firm can result in serious health
problems, which can be detrimental to the
company's life and even result in them losing
their license. As a result, Thus, Pepsi should
ensure that using of the best quality machines
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 that they are using in the production and
purifying of water. More and more high
quality machines need to be brought to test
the presence of microbes at the lowest
feasible level (Chaffee, 1985)
People: Despite the fact that Pepsi boost of having a
Unskilled Staff highly skilled workforce, they failed to
provide adequate quality management
training to their employees. Owing to this
they were unaware of ensuring that none of
the variation in temperature level, etc should
be done as it has a significant impact on the
quality of the drinks. The the Pepsi
Company’s employees and the crew are
unaware, ignorant and negligent of these
issues which ended up in contaminating the
drink.
Process: The store and the factory where the soft drink
Water was not being distilled has to be manufactured should be free from
Storage Temperature not maintained all types of issues. Indeed, the company
demonstrated that numerous new and
enhanced storage canisters and rooms have
been specifically created to ensure that the
soft drinks are placed in better stores before
being packaged. This procedure was not
properly maintained and it was later inferred
that the machines and storage room that were
created were not of the required quality. As a
result, the chemical composition of soft drinks
varied depending on the temperature of each
country. Thus, this caused chemical reactions

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 and led to the proliferation and contamination
of microorganisms. (Kearney, 1992).

Equipment: Despite the fact that the company claims to

Storage Facility was not as per the have hygienic and unique ceilings for storing
requirement soft drinks for a long time until they are
finally packaged and shipped, they did not
take the necessary steps to make this happens
in practically. It was discovered that after
Pepsi was created, it was not kept in hygienic
and cold storage facilities. This change in
temperature and the unhygienic conditions of
the theories led to the contamination of Pepsi.

2.Total quality management (TQM)

This philosophy is an important part of the operation management department of any
organization and Pepsi is no exception to this rule (Dahlgaard, 2006).It also ensures that TQM
procedures remain a vital part of customer service and marketing, as well as all other aspects of
the business. More importantly, Pepsi’s the operations management department should ensure
that TQM principles and procedures should be implemented in the operations department in
order to verify that there are no problems or companions in the manufacturing of the products of
the company(Rahman and Bullock, 2006). Pepsi must therefore employ TQM principles and
techniques in order to gain back the trust of the stakeholders and customers of the organization.
In order to gain organizational objectives, the strategies and principles of the TQM techniques
are used to meet the quality standards Thus in order to solve the problem that Pepsi is facing by
using the TQM techniques, they have to ensure that they go through the following steps and
stages:

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1.Identifying the problems:
Pepsi has been resolving problems with its production department and as a result, its products
continue to face issues with product quality. To solve this problem, Pepsi Co Group must first
identify the problems it is facing and then discuss or discuss them with the top management of
the company.
2. Analysis of the Problem
Problem analysis is easy to learn if the problems are presented or presented in a readable way.
After analyzing the problem, you can summarize the various measures required to solve the
problem and systematically study their root causes. (Hamel & Prahalad, 1994),(Dahlgaard, 2006)

3. Generating Ideas
This step is very important to solve the problem. Quick ideas are developed as individual levels
that help solve problems. As a result of this kind of thinking, the best and most effective ideas
are focused, problems are better solved, and the root causes of problems are discovered.

4. Testing Ideas
Creating ideas is important, but it is not the only process. Once they've listed and written down
the idea, check to see if it helps to solve the problem. Also, ideas are used at different stages and
should not be implemented without testing. Therefore, the validity of these ideas is first checked
and, depending on the results, finally implemented. This helps to measure the effectiveness of
the implementation of ideas in the active solution of problems (Hamel & Prahalad, 1994).

5. Implementing Ideas
Thought testing provides insight into the types of feedback that may appear after ideas are put
into action. Thus, after this pilot study, the first results are analyzed and the ideas implemented if
the desired results are. Once the ideas are implemented, the work program can be addressed so
that the organization does not face such problems in the future.

6. Checking the Results

Finally, after implementing an idea to solve an operational problem, a check is required to
evaluate the implementation of the idea. Once the idea is implemented and the result is obtained,
the result is evaluated or evaluated. This gives feedback on the effectiveness of the idea and
allows you to determine if the idea is needed for future processes.
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Consideration of its impact on quality and/or customer focus
These issues have a huge impact on the organization. Pepsi has a high reputation in the beverage
industry, and no other company is as popular and competitive as it is today. However, pesticides
have recorded a major loss to this organization as they spread Pepsi's new drink. Pepsi is banned
at all universities and schools in the UK. In addition, several Pepsi factories were confiscated and
ready-made beverages were confiscated. This new thing is spreading to other parts of the world.
In fact, all countries have stopped selling Pepsi. In addition, it has affected the business and
customers have become more sensitive to this new thing. They refused to drink, knowing it had
been defiled. They also forbade their friends and children to drink it. This actually served as a
big package for Pepsi and destroyed the business. Moreover, people have lost faith. To date,
many people do not drink Pepsi because they have not forgotten the shocking events surrounding
Pepsi pollution.

3. Lean Manufacturing

Lean is a "systematic approach to waste detection and disposal through continuous improvement
to achieve full customer product attractiveness." The lean methodology is derived from the
Toyota Production System (TPS) and aims to improve production efficiency by consistently and
carefully treating waste. Later, lean production methods were introduced in the United States,
contributing to improved value streams for many business organizations. In general, the Lean
Methodology called 'Lean Enterprise' is being used in the manufacturing industry, transaction
industry, and service industry. (Sunder, 2015)

Lean manufacturing is a management system that combines principles and practices. Lean
manufacturing is called a human-based system because it allows you to solve work problems that
occur in the workplace and involve people who are constantly improving. The main goal of lean
manufacturing is to reduce or minimize fluctuations in waste delivery, processing time and
demand. Over the last four decades lean manufacturing practices has become important part of
the manufacturing industry than service industry. (Shah & Ward, 2007)

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Located in the Netherlands, Marco PepsiCo’s Lean Six Sigma (LSS) is the main black belt of the
European program, aimed at improving PepsiCo’s process and increasing productivity (and
within 10 years worldwide. We have trained thousands of people in almost 200 countries).

Marco Rodríguez Tapia is a master of PepsiCo's Lean Six Sigma training program for Europe.
Over the past decade, Tapia has trained thousands of PepsiCo employees to improve team
processes, and over the past decade, it has trained thousands of people in nearly 200 countries
around the world. "PepsiCo has put a lot of effort into organizing and operating all levels of
Sigma, from top executives to lawyers, salespeople and litigation developers."

04. Benchmarking

Benchmarks are processes used to compare business processes and outcomes based on industry-
established standards with other companies. Project management uses benchmarks in terms of
project planning, selection and delivery. The main benchmark is based on product quality, time,
and costs incurred. Comparison results with other companies in the same industry. This report
describes the benchmark process for determining PepsiCo's market position. The main
competitor is Coca-Cola, and the process of best practice criteria is conducted by analysing the
processes and performance of the best companies in the same industry and in other industries and
comparing the results with the selected companies. PepsiCo Inc. is a company that produces
beverages, food and snacks. Headquartered in Procurement, New York. Benchmarking is done to
assess a company's position in the industry compared to the best companies in the industry
(Cooper, Silberstein, Tam, Ramakrishnan & Sears, 2010).

05.ICT Application in Operation Optimization

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Information is a key driver to the organization. It serves as the glue that allows all the parties of
the organization to work together. Information is crucial to organization performance because it
provides the foundation on which s processes execute transactions and managers make decisions.
(Chopra, 2007) To make good decision information must be accurate, accessible and must be of
the right kind. Without information, managers can’t know what their customers want, how much
they have in stock, and when they will produce or shipped more products. That is, without
information, organizations can only make their decisions blindly. Hence, information makes the
visibility of supply chain in business to a manager. With this visibility, a manager can make
decisions to improve the organization's performance. Given the role of information in an
organization’s success, managers must understand how information is gathered and analyzed.
This is where Information Technology (IT) comes into play. Information Technology consists of
the hardware, software, and people that gather, analyze, and execute upon information. IT acts as
the eyes and ears of management (sometimes a part of the brain) that contains and analyzes the
information needed to make the right decisions. (Chopra, 2007)

Information systems are geo-technical and formal organizational systems designed to collect,
process, store and distribute information. There are four components: task, people, structure (or
roles), and technology in information systems. “An information system is an integration of
elements for collection, storing and processing the data that are used to provide the information,
knowledge and digital products.” SO, companies invest in information systems to ensure
corporate excellence, customer proximity and service acquisition, improvement in decision
making, development of new products and service, promotion of competitive advantage and
assurance of survival.

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ERP in PepsiCo

ERP is an acronym for Business Resource Planning and defines ERP as an integrated financial,
manufacturing, human resources, supply chain, services, procurement, and all the other essential
processes required to run another business. (SAP Insight, n.d.)

PepsiCo choose SAP’s full MySAP Business Suite to simplify the delivery processes, improve
planning and forecasting and increase global supply visibility. PepsiCo is aiming to make better
integration of Frito-Lays snacks, Gatorade sports drinks, Tropicana juices, Pepsi-Cola beverages
and Quaker foods supply chain and inventory data with their customer data.

The system manages relationships with suppliers, purchasing firms, distributors & logistics’
firms called supply chain management (SCM) systems. Also manage the information about
orders, production, inventory level etc. which it shared. The goal is to use the right amount of
product from the factory to the consumer point as soon as possible and at minimal cost. PepsiCo
ensure that suppliers (water, corn syrup, food colorings, carbonation, plastics etc.) come to the
appropriate factories to keep satisfaction of customers without shortages. Too much additional
inventory is avoided which hangs up resources & cash flows. PepsiCo uses the My SAP business
package application to connect with suppliers and generate demand forecasts.

SAP helps in fine-tuning their supply chains from sequential supply chains into adaptive supply
chain networks. “Adaptive” refers to the ability to rapidly sense & respond to changing internal
and external conditions “Network” refers to the ability to have real-time collaboration &
coordination across all partners in the supply chain. It’s a community of customer-focused
organization that share knowledge & resources to adapted changes of market conditions.

MySAP ERP refers that a software package which combines world’s best ERP software
functions and it addresses the core business software requirements of medium & large business
organizations. SAP Netware is a complete set of active software technologies with features such
as portal infrastructure, business data storage, exchange integration, web application servers and

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mobile technologies. A modern ERP environments mostly recommended the customers convert
their existing license to new MySAP ERP to get benefits from additional capabilities. MySAP
ERP is designed for real-time integration with other SAP products.

Customer Relationship Management (CRM) System

This system helps manage customer relationships. This allows the business to work more
efficiently and effectively with customers to optimize revenue and improve customer
satisfaction. The system maintains and integrates customer data across the organization, analyzes
the data and distributes the results to several systems and customer communication networks of
the enterprise.

The PepsiCo CRM application is an integrated application solution that provides an overview of
the consumer database, formerly the sales system. The CRM application is used by PepsiCo to
identify most profitable and valuable customers, identify potential sales opportunities and
improve interactions and relationships with customers.

MIS at PepsiCo

MIS assists PepsiCo executives in providing timely information on prices, product segregation,
and market trends. Effective marketing planning is supported in terms of product planning,
pricing, promotion and distribution. It also helps them to make quick decisions and check the
manager’s decisions. It provides reliable and up-to-date information to help managers make
effective decisions in a timely manner.

06. Enhancing overall business operation by using Artificial Intelligence

Artificial intelligence is the ability of computer programs to learn and think. Artificial
intelligence (AI), also known as computer intelligence in machines, is the intelligence of
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machines as opposed to the natural intelligence of humans. Major AI textbooks define this area
as "smart agent" research. In short, it is a tool that respects the environment and maximizes the
chances of achieving organizational goals. On the other hand, the term “artificial intelligence” is
used to describe machines that mimic “cognitive” functions that connect people to “minds,” such
as “learning” and “problem solving”. Artificial intelligence is big business today.

23% of companies have already incorporated artificial intelligence technology into their
processes, products and services, and 54% of CEOs of these companies say that technology has
helped them increase their productivity. At the same time, 61% of business owners with
innovation strategies say they will use AI to identify information opportunities they would
otherwise lose. The artificial intelligence market is projected to become a $ 190 billion industries
by 2025, from data analysis to customer experience.

As one of the world's largest food and beverage brands, Pepsi is at the forefront of innovation,
investing heavily in artificial intelligence technology to strengthen almost every aspect of its
business.

PepsiCo sells its products in more than 200 countries, and with annual sales of $64.7 billion last
year, thousands of dishes are distributed simultaneously. Fortunately, there is the financial
impact and infrastructure to implement the necessary skills to make the slab a little more flexible.

The University of the Pacific allows you to find customer-focused applications of artificial
intelligence technology. The so-called "snack-bot" is an AI-powered delivery robot that allows
students to order a variety of healthy snacks, carbonated water, healthy potato chips and more. It
can be delivered to more than 50 places without extra charge. Around campus. Robot technology
lets you navigate weather conditions at any time of the day over a range of 20 miles on a single
charge.

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Snack bots are based on the opinions of college students and help choose healthy foods to make
the service more convenient. The students also responded that three or four machines are always
running to support Pepsi’s demand.

Another area of innovation using Pepsi AI technology is Frito-Lay, a subsidiary of Potato Chips.
They wanted to develop a way to help the brand determine the texture of the chip without
destroying it. To do this, they will develop an array of laser sensors that emit light from a new
chip and use whistle technology to develop sound connections and create texture indicators for
snacks.

Taking advantage of the success of this innovation, PepsiCo began working with a new type of
machine learning program to determine the size and weight of potatoes. Until now, the company
has been measuring potato volume based on a visual system, but the team quickly realized that
by simplifying the process and using visual data obtained by cameras to determine the value of
the mass flow. Automated learning can be done.

However, the brand is not ready to stay there and is working on several different artificial
intelligence applications for the Frito-Lay production process. For example, we have a visual
system that watches all the potatoes peel. We have a grinding system," says Mirza. To find out
the speed of peeling they created an algorithm. That is, we can know how to peel and not peel
the potatoes after the process. This information can be used to find out. The skin can be
optimized so it does not come off the edges. peel a part.

It's easy to see how Pepsi has managed to incorporate AI technology into its brand DNA. While
many companies lack a significant amount of AI maturity, major brands need to step in to show
how this technology can be used. We will have to wait to see how many more people will follow
Pepsi's lead in the future.

07.Conclusion & Recommendations

In Conclusion, PepsiCo is the second biggest company in the global food and beverage industry.
PepsiCo has been on top of the Fortune 500 list for many years. PepsiCo currently focuses on

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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.

To evaluate the success of operations and quality management processes in short term and long
term, SWOT analysis is the best approach for PepsiCo. Strengths of the PepsiCo are best global
brand, Effective supply chain management, direct store delivery and weaknesses are Effects of
Failed Products, Products Perceived as Unhealthy, Overdependence on Food and Beverages. The
opportunities are Introduce New Flavors, Acquisition of Energy Drink, and Product
Diversification while threats are Government Laws and Regulations, Changes in Demographics,
Economic Slowdown or Recession.

After the analyzing of the tools and principles of operations management within the Pepsi Co.,
one of the problems that the corporate was facing and the reasons that led to these issues were
identified. The various recommendations that can be given to the Pepsi co group are as: ensuring
that all their employees are properly trained before they become part of the manufacturing and
operational team of the company, Pepsi should ensure that the machines that they are using in the
production and purifying of water should be in the best of quality. High quality machines need to
be brought to test the presence of microbes and other such organization and at the lowest feasible
level and Quality assurance…etc.

PepsiCo gets advantages of information technology using SAP ERP system and CRM systems in
their business process. Also the effect of artificial intelligence on PepsiCo was discussed in this
study.

CRM applications of PepsiCo allow to transform different previous sales systems into an
integrated application solution, providing a complete overview of entire consumer base. CRM
applications are used in PepsiCo to determine profitable customers, discover potential sales
opportunities, and improve customer interaction & relations.

MIS helps PepsiCo's managers to recognize market trends, in respect of price, differentiation of
products & timely information of market trends. Effective marketing planning is assisted in
terms of product planning, pricing, promotion & distribution. It helps in taking quick decisions &
also validating manager’s decisions. It provides reliable & relevant information so that managers
can take effective decisions at the right time.

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As one of the world's biggest food and beverage brands, Pepsi is regularly in the vanguard of
innovation and has been investing heavily in artificial intelligence technology to boost almost
every corner of its business. It's easy to see how Pepsi has managed to incorporate AI technology
into its brand DNA. While many companies lack a significant amount of AI maturity, major
brands need to step in to show how this technology can be used. We will have to wait to see how
many more people will follow Pepsi's lead in the future.

References
Anon., n.d. PepsiCo.com. [Online].

Gillespie, A., 2007. PESTEL analysis of the macro-environment. Foundations of Economics.

Heizer, J. & Render, B., 2011. Operations management.

Madsen, D. O., 2016. A management fasion perspective. SWOT Analysis, 22 March, Issue 1, p.
15.

PepsiCo, 2012. Press Release Issued, s.l.: s.n.

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Task 2

01.Project management using Critical Path Method (CPM)

1.1. Network Diagram

Starting = 0

A=2

B= 4

C = 10

D=6 I=7
E=4

G=7 F=5

J=8 28 | P a g e
 H=9
L=5 K=4

M=2
N=6

Finish
Task

1.2.Critical Path Method

Starting = 0

Activity- A Time- 2
ES-0 EF-2
LS-0 LF-2

Activity- Time- 4
B
ES-2 EF-6
LS-2 LF-6

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 Activity- Time- 10
C
ES-6 EF-16
LS-6 LF-16

Activity- Time- 6 Activity- Time- 4 Activity- Time- 7

D E I
ES-16 EF-27 ES-16 EF-20 ES-16 EF-23
LS-20 LF-26 LS-16 LF-20 LS-18 LF-25

Activity- Time- 7 Activity- Time- 5 Activity- J Time- 8

G F
ES-25 EF-33
ES-22 EF-29 ES-20 EF-25
LS-25 LF-33
LS-26 LF-33 LS-20 LF-25

Activity- H Time- 9 Activity- K Time- 4

Activity- L Time- 5
ES-29 EF-38 ES-33 EF-37
ES-33 EF-38
LS-33 LF-42 LS-33 LF-38 LS-34 LF-38

Activity- N Time- 6
Activity- M Time- 2
ES-38 EF-44
ES-38 EF-40
LS-38 LF-44
LS-42 LF-44

Finish
Task
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References

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