- Brief History and Current Profile of the Company
- The Management Structure and Role of Technology in Management Policy
- The Role of Engineers in the Technology Management
- Global Developments
- Current Developments
- Future Developments
Engineering and Technology Management
PepsiCo is one of the largest companies that produce a wide variety of beverage and food brands. The company has over 22 productions that specialize in manufacturing different products. Each of these production lines is estimated to produce approximately $1 billion retail sales annually. The main businesses that are owned by PepsiCo include Gatorade, Quaker, Pepsi Cola, Tropicana, and Frito-Lay. In addition, the company makes other foods and beverages that are enjoyed by thousands of people throughout the world.
PepsiCo has been estimated to have net revenues of approximately $65 billion. The success of the company can be attributed to its employees, who are united by a unique commitment to sustainable growth and application of technology in production operations. PepsiCo is committed to ensuring that it minimizes the impact that its production has on the environment. Consequently, the company has lowered its operation costs by conserving both water and energy and reducing the usage of packaging material (Rao, Rizvi, Datta and Ahmed, 2014). PepsiCo provides a safe workplace for its employees globally. It respects, supports and invests in the local communities, in which the company operates. Nevertheless, as the environment, in which PepsiCo works, continues to evolve and change, the company also adapts and positions itself strategically aiming at a long-term advantage and sustained growth, while it is ensuring that it delivers strong financial results.
PepsiCo is the second largest industry in beverage and food production globally. PepsiCos operation management addresses different business needs through several strategic decision areas that it has implemented. Some of the strategic decision areas that PepsiCo has focused on include the designing of goods and services (Rao, Rizvi, Datta and Ahmed, 2014). The main objective of this strategy is to ensure that the company matches its products and services, the market demand and its organizational capacity. The company is also committed to ensuring that it produces quality goods through its quality management program. The operations management of the company aims at providing high-quality products in regard to its "Human Sustainability" goals.
Manufactured products of the company are improved by adding different variants, such as less salt and low-calorie goods. PepsiCo has also embraced the technology of automating its inventory management to ensure scheduling, adequacy and cost minimization. By achieving this, PepsiCo has invested in engineers, who ensure that all the automating machines are in good condition (Rao, Rizvi, Datta, Ahmed, 2014). The company does this through computerized programs. As a result, it enables the inventory managers to access real-time inventories, whenever they are needed, which may play a crucial role in the process of decision-making. The layout and design strategy that has been implemented in the company ensures that there is an efficient movement of materials and information. The operation managers ensure that the spaces in the company are designed with productivity and efficiency in mind.
The company has managed to do it through a market-based research that is aimed at product innovation. The company ensures that it conducts a continuous market research on the latest trends regarding consumer lifestyles. The results that are obtained from the research conducted help the company to determine its future directions in production. The current position that the company is in has been achieved through its ability to wield the strengths that it has to continue growing. Consequently, the current paper will provide information on a brief history of the company and its current profile, management structure and the role played by technology in management, the role of the engineers in the technology management, as well as describe global, current, and future developments of the company.
Brief History and Current Profile of the Company
PepsiCo was started in the year 1965 by a merger between Frito-Lay and Pepsi-Cola companies. When PepsiCo was formed, it had a hierarchical form of organizational structure. Nevertheless, due to the merger and acquisitions combined with its global expansion, the company was forced to change its organizational structure. Some of the main characteristics of the company's organization structure include global hierarchy, corporate functional groups and market divisions. In the 1970s, PepsiCo was the first company to respond to the customer's need for lightweight, plastic recyclable bottles by introducing the first two little bottles in the industry.
The company has ensured that its mission and its current business strategies are aligned with several strategies that it has implemented. The company's mission statement leads to the development of products that meet the demands of the market. The vision statement of PepsiCo also specifies the role that the company plays in the global market (Lombardo, 2015). The company's vision and mission statement complement each other with the aim of pushing the company to the highest market position globally.
The companys vision statement is to deliver its top-tier economic performance in the long term through integrating sustainability into their business strategy, leave a positive imprint both on the society and the environment (Lombardo, 2015). It has been built on the principal of Performance with Purpose.
Moreover, this statement puts into consideration three main points, which are sustainability, top financial performance and corporate social responsibility. The company puts emphasis on a high financial performance, which is one of its main aims as stated in the mission statement. The company integrates sustainability in its business activities, which enables it to enhance its corporate and brand image (Lombardo, 2015). The companys vision statement has also included a corporate social responsibility, which is a major principle that has influenced its strategies and policies, especially in its organizational development. All the factors contained in the company's vision help in the process of motivating the workers to achieve high performance.
The companys mission statement is to provide all its customers with a delicious, convenient, affordable and complementary beverages and foods that range from nice breakfasts to fun and healthy daytime snacks (Lombardo, 2015). According to it, the company's main aim is to satisfy its customers. The main points that are contained in the company's mission statement include affordability, consumers around the world, convenience, healthy and delicious products. The company also aims at providing products that have the ability to appeal to all the customers despite their cultures, backgrounds, and other variables. The company's mission also contains specific characteristics of its products (Young, 2015). The affordability stated in the mission implies that the companys approach aims at delivering the products to the consumers at the lowest prices.
The Management Structure and Role of Technology in Management Policy
The management structure of the company has been reformed many times with the aim of addressing the changing market conditions. The organization structure of the company reflects its goals in both its leadership and global expansion (Prindle, 2014). The organization structure of PepsiCo is arranged in such a way that it enables the company to control its expansion around the world.
It has corporate offices, which have the responsibility of ensuring that there is a control and rapid process of implementing its strategies and policies. Each of the corporate offices is headed by either a senior vice-president or an executive vice-president. Some of the functions of the corporate offices include human resource management, global categories, and operations management, finance management, management of legal and government affairs, communications, talent development, management and training. With the growing trends in technology, the company widely integrates it in its operations with the aim of ensuring that it competes well with other firms in the industry.
PepsiCo has tried to manage a world class managerial decision-making process. As a result, the company was given an award for being the best company regarding overall compliance governance and in its ethics program in the year 2013. This award is given annually to those companies that have managed to maintain good governance principles and to have a structured process of decision-making.
The company's principles have been laid in such a way that they ensure that all the management works towards ensuring that they maintain investor confidence, financial integrity and superior performance in the market (Thompson, 2015). The success of the company is caused by the collaboration between different stakeholders in the process of decision-making. Moreover, PepsiCo has managed to redesign its proxy statement with the aim of enhancing readability and improve communication among its stakeholders.
Technology plays an imperative role in PepsiCo. For example, the company has started using a speak-up hotline that works 24/7 with the aim of giving a chance to the consumers, the employees and the business partners to channel their grievances in case there is a violation of their rights as stipulated in the PepsiCo's Code of Conduct (Rao, Rizvi, Datta and Ahmed, 2014). In addition, PepsiCo's code of conduct has been translated into 25 languages with the aim of ensuring that everybody knows their roles and rights in the process of dealing with the company.
The Role of Engineers in the Technology Management
The engineers at PepsiCo play a significant role in technology management. They provide a required expertise on beverage processing and packaging technologies. They also control the growth of projects, while ensuring that they are in line with the Capex budget and timelines. The engineers also control that all projects that are performed in the company are executed in accordance with the beverage engineering strategy. They are also involved in the process of developing best practices in beverage technology (Rao, Rizvi, Datta and Ahmed, 2014).
Moreover, they execute and take ownership of engineering components in the company, such as sustainability agenda, processing, packaging and productivity. In addition, engineers at PepsiCo are required to engage in safety function, which is especially connected with the equipment safety and construction requirement. Such activity is aimed at ensuring that all the projects are executed according to the required standards (Mishra, 2015). Finally, the engineers are also involved in resource conservation with the aim of reducing costs that are incurred in the process of production.
One of the most prominent features of PepsiCo is its structure of market division. The market divisions are generally based on two main variables, which are divisions in terms of business and geography. Regarding the sphere of business, the company has maintained one global division for Quaker Foods and Frito-Lay. Moreover, in regard to geographical division, the company has branches in Europe, America, and several other regions. Some of the market divisions in its organizational structure include Latin American Foods, Frito-Lay, Pepsi Company Europe, Pepsi Company Americas Beverages, Quaker Foods and Pepsi Company in Asia, Middle East and in Africa.
The organization hierarchical organization structure of PepsiCo spans worldwide and aims at ensuring that the company supports, monitors and controls its governance at the corporate level. The company has managed to maintain a hierarchy that enables its top-down communication, control and monitoring (Prindle, 2014). The characteristics of this organizational structure have made it possible for the company to minimize deviations in both its strategies and policies.
The position that PepsiCo has managed to acquire in the market makes it the second largest firm that produces and supplies beverages and food. Despite the fact that the market remains saturated, PepsiCo has continued growing. The company is positioned to expand and be at the top position in the industry of food and beverages production.
The continued growth that the company experiences is a reflection of its strengths. Some of the internal strengths of the company are a broad product mix, its extensive global production network, strong brand image and its extensive global distribution network. Despite this, PepsiCo has some weaknesses that have acted as barriers to its international growth. Some of the internal weaknesses of the company include the fact that it has a limited business portfolio. Moreover, the company has also experienced a low penetration in regions that are outside of America and a weak market position, especially in regard to those consumers who are conscious of their health.
According to the research that was conducted by the companys management, it was established that the company receives approximately 70% of its revenue from markets that are found in South and North Americas (Thompson, 2015). Therefore, such weakness indicates that the company has not managed to maximize its revenues in the regions that are outside of America. Another weakness is that PepsiCo mainly deals with the production of beverages and food. It becomes a weakness, since it makes the company vulnerable to the risks that are possible in the food and beverage industry.
PepsiCo has managed to maintain a very strong brand in the market. This strength has enabled the company to attract a number of new customers to its products. The company is working on developing broad mix, which will enable it to reach different markets and segmentations (Thompson, 2015). Moreover, PepsiCo is also working on developing an extensive production and distribution networks that are aimed at enabling the company to achieve international growth and expansion goals.
PepsiCo has several opportunities for future growth and development. Some of the opportunities that the company aims at include forming global alliances with complementary companies, business diversification and penetration into the markets that of the developing countries. In addition, the company has the opportunity of diversifying its operations, including acquiring a complementary firm that is not involved in the beverage and food industry.
The company also aims at increasing its operations, especially in the developing markets with the aim of obtaining more revenue from the markets that are outside of America (Prindle, 2014). The other goal of PepsiCo is to create an alliance with other complimentary businesses with the aim of increasing its market presence.
PepsiCo has plans of investing approximately $5 billion in Mexico region with the aim of strengthening its beverage and food business there. In addition, PepsiCo aims at expanding its business in the developing countries in order to take advantage of the several opportunities for its long-term growth. The company also has plans to install several interactive vending machines, which will help it to counter the recent moves taken by its competitor, the Coca-Cola Company. Therefore, PepsiCo has several future developments, which are expected to strengthen its operations.
Despite all the challenges that PepsiCo is facing, the company has managed to maintain a strong brand in the market. Technology has played a significant role in the success that has been achieved by PepsiCo, especially in processing and packaging. Moreover, the company has managed to ensure that it has minimized the impact that its production process has on the environment. The company has also reduced the costs that it incurred in the process of production by conserving both water and energy and reducing the usage of packaging materials.
PepsiCo has also managed to provide a safe working environment for employees all over the world. Despite all these accomplishments, the company failed to expand its operation to some parts of the world. Therefore, to ensure that the company expands its market to different regions, the management should develop the ways of tackling different challenges that the company is currently experiencing.
There are several threats that companies in the food and beverage industry continue to face in their operations. They include some external strategic factors that have the ability to reduce the company's business performance (Thompson, 2015). Some of these factors include threats, such as healthy and lifestyle trends, aggressive competition and environmentalism. Aggressive competition is one of the major threats that the company continues to face. Competition from the Coca-Cola Company is among the other major threats of the company.
In addition, healthy lifestyle trends have also been a threat to PepsiCos products for a long period. It is caused by the fact that the majority of its products are considered to be unhealthy, since they contain salt, sugar and fat. Environmentalism is another challenge that has continued to threaten the company, which is connected to the consumers negative responds in regard to its waste policy and the lifecycle issues (Thompson, 2015). Therefore, it is important for PepsiCo to implement reforms that will be aimed at overcoming the existing threats.
PepsiCo has an advantage in that it has the ability to focus on the regional market needs. It has become possible due to the market divisions the company has. In its turn, the organization structure of the corporation serves to support the corporate control. Consequently, PepsiCo can benefit from these advantages to respond to the issues that have been identified as threats to its growth. Some of the improvements that can be performed to improve the operation of the company include penetrating into the markets of the developing countries with the aim of growing the revenues, enhancing the recycling efforts by addressing the issues of environmentalism, improving the healthfulness of the products with the aim of attracting more customers and diversifying the companys businesses in order to minimize its exposure to market risks.
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