Principles of Management (Pepsi Cola Pakistan limited)
Pepsi Cola Pakistan limited
Prepared for Imran Akbar Saifi
Principles of Management
Our Research is on Pepsi Cola Pakistan limited Gulberg branch .
We went there and interview different type of Managers and Employees as
well to conduct information. We also use some Material from library to complete
that project these are the information which are published on news papers etc.
Following is the table of content of our complete research
TABLE
OF Contents
Introduction
PEPSICO LTD is a
leading global food and beverage company with brands that are valued household
names throughout the globe. Good for All Is Good
for Business PepsiCo delivering
sustainable growth by invest in a healthier future for nation and our world. As
a global food and beverage company with brands that stand for quality and are
respected household name Pepsi-Cola, Lay's, Quaker Oats, Tropicana and Gatorade,
to name but a few we will persist to build a portfolio of pleasant and
healthier foods and beverages, find innovative ways to reduce the use of
energy, water and packaging, and provide a great workplace for our associates.,
By hiring local people, creating products designed for local tastes, and
partnering with local farmers, governments and community groups
MISSION
STATEMENT
Our mission is
to maximize share-owner value over time. In order to achieve this mission, we
must create value for all the constituents we serve, including our consumers, our customers, our
bottlers and our communities.
CORE VALUES
PEPSI CO
Values & Philosophy are a manifestation of the socially and environmentally
responsible company we want to be. They are the foundation for every business
decision. They are committed to
delivering sustained growth through empowered people acting responsibly and
building trust.
There are following core values of PepsiCo
they are
Ø their Commitment and promise
Ø
Sustained Growth
Ø Empowered People
Ø Responsibility and Trust
Ø Care for our customers, our consumers and the world we live in
Ø Sell only products we can be proud of
Ø Speak with accuracy and truthfulness
Ø Balance short term and long term
Ø Win with diversity and insertion
Ø
Respect others and succeed
together
PepsiCo basic goals
·
Increasing the whole
grains, fruits and vegetables, nuts, seeds and low-fat dairy in its product
portfolio
·
Reducing the average
sodium per serving in key global food brands in key markets by 25 percent by
2015
·
Reducing the average
saturated fat per serving in key global food brands in key markets by 15
percent by 2020
·
Reducing the average
added sugar per serving in key global beverage brands in key markets by 25
percent by 2020
SHORT TERM GOALS
They laid out additional short -term goals for ourselves
that included metrics related to our performance in the eyes of our wholesale
partners, our consumers and, of course, our investor. significantly, this is
not at the cost of creating value for shareholders. It is the source of that
value. It’s all about bringing our company performance and our social and
environmental commitments together. Human sustainability is our promise to
encourage people to live balanced and healthy lives. It’s about offering
balance in our portfolio for consumers to have a range of enjoyable and
wholesome foods and beverages. It’s about providing people with choices,
attractive options to manage their portions, better nutrition education and
compelling programs to encourage physical activity.
LONG
TERM GOALS
In its agricultural operations,
PepsiCo plans to use its long-term farming contracts to halve the water and
carbon impacts of its key crops, such as potatoes and oats.On the health side,
PepsiCo's vision is that by 2020 the company's core business will be based on
delivering fruit, vegetables, wholegrain and fiber. To achieve this it plans to
change the existing products it is making as well as transform its portfolio
towards healthier ranges "providing genuine nutritional benefit."
ORGANIZATIONAL
STRUCTURE
Organizational structure is the
formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organizational goals. Pepsico has a Managing
Director on top and there are14
three General Managers (Marketing,
Administration, and Technical). These departments are further divided into
marketing, MIS, Shipping, Security and Production etc.
·
FINANCE DEPARTMENT
·
HUMAN RESOUECE DEPARTMENT
·
SALES DEPARTMENT
·
INFORMATION AND TECHNOLOGY DEPARTMENT (I.T)
·
MARKITING DEPARTMENT
·
OPERATION DEPARTMENT
Hiring
procedure of employees
The team work hard to insure the right hiring decision is
made for you and PepsiCo
Step
1: Apply
Once you’ve identified an prospect of interest, they invite
you to submit your profile online.
Following your submittal, a member of our internal recruitment team will
review your credentials against the requirements for the role you’ve expressed
interest in. You will then be contacted
regarding next steps.
Step
2: Assess
At PepsiCo, we offer various options for two-way
communication during the hiring process.
Depending on the role, location and timeliness, we may initiate our
dialogue with you via telephone, Web cam interview or through a traditional
in-person interview. We recognize an
interview should serve a mutual benefit. We invite your questions.
Step
3: Offer & On-boarding
It’s decision time.
Our team works equally hard to ensure the right hiring decision is made
for you and PepsiCo. Offers are extended
live via telephone or in-person from a member of our internal team. If you are not selected for a particular role
after your interview, you will receive communication from a member of our team.
•3+ years of Supply Chain Operations experience
•Understanding of Freight Transportation function,
processes, modes and service providers (Truckload, Less-than-Truckload and
Intermodal)
•Proficiency / experience in key PepsiCo Supply Chain
systems (i2 TMS , Enterprise Route Guide, SAP ) is preferred
•Capable of multi-tasking and prioritizing time-sensitive
decisions
•Ability to engage and influence stakeholders from a variety
of supply chain functions and network sites
•Strong written and oral communication required
•Process-oriented with analytical capacity is preferred;
proficiency in MS Excel required
•Initiative, a positive attitude and the ability to manage
through change.
•College-degree required (internal candidates with
appropriate experience could be considered).
EQUAL EMPLOYMENT OPPORTUNITY
In Pepsi, there is equal employment
opportunity. For example; there are 35female
quality control inspectors, 2 female telephone operators, 1 camera room operator, 1 receptionist, and 8 disabled persons.
People from minorities and from different provinces are also working
with this company.
Employees satisfaction and motivation
Managers motivate
their employee by
1. Giving them bonus for their hard work
2. Including them when making decisions (to make them feel
they are part of the organization)
3. Encouraging those
4. Allowing them to air out their grievances
5. By talking to them
and establishing good employee employer relationship with them. They reach and
involve every single employee by broadcasting the news on all available screens
and phones: from Digital Signage and PC screens, to smartphones and social
media. Solve information overload with one integrated solution for all internal
communications – no more e-mails to all, but reaching employees with relevant
news using their medium of choice. And use the same software to interact with
their staff, for example using internal social media.
The Human
Resource Department of Pepsi Company gives following incentives and benefits to motivate their workers.
∗
Job security
∗
Pay allowances
∗
Promotion to next designation which
is purely on merit.
∗
Annual performance appraisal.
∗
The workers are offered Pepsi at Rs.
3 and Meal (every type of meal) is availableat Rs. 10.
∗
Hajj incentives.
∗
Free
dispensary.
∗
Every person has incurrence policy.
∗
Cash rewards.
∗
Bonuses.
TRAINING
Training is given to every employee
for further grooming and for enhancing their skills. For this purpose, courses
are conducted, seminars are arranged, and different workshops are held.15
Advance programs that help people locally, complementing
sustainability platforms of Performance with Purpose.
•Health—Increase commitment to programs that promote
healthy lifestyles and improve access to healthier foods.
•Environment—Advance market-based approaches and
community-driven models that increase water security and contribute toward the
pledge to bring safe water to three million people by the end of 2015.
•Education—Enhance and expand educational opportunities
in underserved communities.
MACROENVIRONMENT
ECONOMIC
AND BUSINESS CONDITIONS
Rate of
interest also affects the sales and prices of Pepsi. At high rate of interest, the company straight away raises their prices. At
low rate of interest, reverse takes place. In Ramazan, they offer many schemes
and benefits to the consumers. Due to
offering their bottles at low prices their profit doesn’t match their target.
So to compensate this, they increase
their production and sales, in this way not only the consumer is getting
benefit but the company also succeeds in achieving the target.
Pollution
Control
Pepsi takes
special care for the environment. For the pollution control, it has taken special measures like: In production department,
the main burner does not release smoke. Wasted water is filtered and purifies
and then release into River. On daily basis, all bottles are disposing off by
special workers. Smoking is not allowed within the premise
ENVIROMENTAL
Lacking unlimited supplies of
potable water, Pakistan has to depend on the
desalination processes of brackish water and seawater to satisfy the ever-increasing
demands.
These demands
are expected to reach the 756 MGD (millions gallons per day)only for Lahore city in the year 2005.
Apart from Lahore, for the coastal areas of Balochistan
and Sindh, the only answer appears to be seawater desalination. The beverage company, Pepsi Cola stepped into the
market. In 1996, one RO(reverse osmosis) plant was installed at Pepsi
Factory, which had a capacity of 150,000gallons
per day. The American Company, Water Link, supplied plant. But the major contribution
in the share of desalination capacity came from textile industries. Bottled-water Company Pepsi is engaged in a
constant search for new water supplies to feed the insatiable appetite
of this business
COMPANY
OBJECTIVES
DETAILED
COMPANY OBJECTIVES
In this age of automation and
sophistication in management styles with recession in the market due to certain political conditions in the country and
with depressive economic conditions overall, everybody has to struggle a
lot to get satisfaction.
The main
objective of launching Pepsi was to provide a quality product at an affordable
price for the masses. In addition, through an organized and well-coordinated
mannerism, Pepsi wants to capture a greater percentage of the market share also.
Internal
Factors
The two categories of internal
factors are performance and strategic options. When analyzing their performance the organization, Pepsi Beverages,
considers factors like profitability, market share, production
costs, and new product plans. They also consider such intangible factors such as the management performance, and employee
attitudes. Based on how they have performed in the past and how they
might be able to perform in the future, the
company can identify a number of strategy options that take into account their
financial resources, problems with their current strategies, and any other strength
and weaknesses that might affect their ability to execute a chosen strategy.
External Factors
The external
factors in a situation analysis include such elements as customers, competitors, industries, and government regulations. The
major components of customer analysis
include needs, motivations, and segmentation issues. The most
critical psychological factors that the company considers important while
designing an advertisement for their target audience are the needs and motives. The competitive analysis involves discovering who
your competitors are and determining their objectives, strategies, strengths,
and weaknesses. Issues in industry analysis include growth rates, entry
barriers, and distribution system. Distribution can be a major factor in your advertising strategy. Thus Pepsi pays a special
attention to its distribution network. During the same phase, the organization
needs to answer questions like:
∗
What is the forecasted demand?
∗
Is the demand growing or declining?
∗
Who is the actual decision-maker among
the customers?
When do the customers buy?
∗
Where do they buy?
∗
Why do they buy? There are certain factors that affect the
consumer buying behavior. These include the following:
∗
Social and Cultural Factors.
∗
Economic and Business Conditions,
∗
State of the
Technology.
∗
Political Factors.
∗
Financial Environment.
∗
Rules and Regulations.
∗
Demographic Factor
NEW
PRODUCT DEVELOPMENT
Pepsico recently launched following new products
Mountain Dew
Sting
Aquafina
Distribution
Channels
The Distributors will sell it to
selected retailers at special discount.
∗
Sales
Force
Special
incentives will be given to the salesmen, if they achieve the respected targets.
Empty
Injections
Every distributor will be given
empty containers. The distributors will then give that to their retailers.
DISTRIBUTION
There are two ways of
distributions:
DIRECT DISTRIBUTION
Manufacture --------------
Wholesaler---------------Retailer
INDIRECT DISTRIBUTION
Manufacture --------------
Wholesaler---------------Retailer
DISTRIBUTION
OF PEPSI COLA
Pepsi Cola is 100% indirect
distribution except post mix. Every sector has one distributor.
AREA ALLOCATION OF SUB
SECTORS
LAHORE
SALES FORCE for one distribution sub
channel
Unit managers------------------------>5
TDMs
--------------------------------->12
Sales officer
--------------------------->75
Vehicles
------------------------------->85
PRICE
It is the
amount of money the customers are willing to pay to obtain that particular product. Providing quality products at the
lowest possible price had always been one of the main concerns of Pepsi. One of the ways by which the company has been
able to assist this effort is by increasing the use of inexpensive and
recyclable plastic bottles. In Pakistan, the Pakistan Beverages Manufacturers
Association (PBMA) fixes the prices of commodities in view of the taxes
laid down by the government, the excise duty, sales tax, and the cost of the
production material, the overhead cost, and the profits. The government policy,
at times, makes a lot of difference as the government may increase the freight charges, the prices of
glass, or the prices of steel. Thus the overall price of the
product also gets affected. The price of
Pepsi Cola is very reasonable as compared to other drinks and the management
makes every effort to make the product at the lowest possible cost but the highest quality. The price of a single
250ml bottle of Pepsi Cola in the market is Rs. 17.00.The price of a single
1000ml bottle of Pepsi Cola in the market is Rs. 45.0038
The price of a single 1500ml bottle
of Pepsi Cola in the market is Rs. 65.00 The price line is as follows; -
Manufacturers ————> Distributors ————>Retailers————>Customers.
170—— —— —
——Rs. 230 ————— — Rs. 300
——— — Rs. 400Rs.
All the prices are subjected to 1
case=24 bottles (250ml each).
All the expenditure charges are
included e.g. cost of production, cost of material, transportation,
distribution cost, cost duty, petrol, and then profit. The price of the
bottle is very reasonable as compare to the other drinks with respect to
quality
Slogans
The third major category of copy
includes slogans, or lag line, memorable sayings that convey a selling message. Over the years Pepsi has used such
slogans as
"The choice of the new generation",
"Ask for
more".
Slogans are
sometimes used as headlines, but
not always. Their importance lies in the fact they often become the most memorable result of an advertising campaign
Feedback
Though, every ad campaign involves
the expertise of Pepsi Cola International, the
feedback is received by the franchisers, because they are the one that come
directly in contact with the consumers. The management of the Bottlers
receives the complaints and claims. The claims of the prizes are sent to PCI
for verification, which then releases the prize cheque. The prize is
handed over to the winners through a special ceremony, which is covered by the
media for promotional purposes. However the ultimate feedback comes with the change in sales. If the sales have
increased in result of the campaigns, it is thought successful and vice
versa.
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