PepsiCo in 2007 Case Study Example | Topics and Well Written Essays - 1250 words

PepsiCo in 2007 - Case Study Example Natural resources essentially drop out of the competitive equation. Being born rich becomes much less an advantage than it used to be. Technology gets turned upside down. New product technologies become secondary; new process technologies become primary. PepsoCo obtains better terms from distributors and suppliers and promotes their products and services to consumers better than foreign firms because of common cultural heritage, ties, and language should be used for their greatest advantage. The main strength is new product development and product reformulation. Customers accept, reject, or alter propositions, perhaps through on-the-spot negotiations. Also, PepsiCo establishes close relations with distributors and follows aggressive acquisition strategy. The company relies on innovations and Product One strategy and strong leadership (Thompson et al 2008). For PepsiCo, Power One strategy is both a component and a determinant of the marketing mix. The company considers the life-style factors influencing product development. Urbanization, leisure, competition, discretionary income, travel, styles, tastes, automobiles, informality, and convenience have led to the emphasis on product form, readiness, packaging, combination, and selectio n convenience. For PepsiCo, product development refers to the conversion of ideas into successfully marketed products. It combines technical and marketing competence, and is concerned with strategies of programmed introduction of new products to markets as replacements for decaying ones. Since it carries out an important mission directed at corporate growth and advancement, product development should report to top management (Thompson et al 2008). Strong leadership and positive corporate culture support development and strategic growth of the company. Opportunities In implementing the product mix concept, companies are shifting away from being producing units, with set production capacities that merely broaden their line by adding similar items. They are becoming units that assess market opportunities against such criteria as rate of return on investment, and that change their facilities when the opportunities warrant it. This orientation demands a change from product rigidity to product flexibility. International expansion proposes great opportunities for PepsiCo (Thompson et al 2008). The idea is to establish effective management in multi-brand companies by developing a series of profit centers in which product executives assume responsibility for the total marketing effort for a line. This approach grows out of the inability of one executive to master the intricacies and details of marketing several dozens or hundreds of products. Product managers develop product ideas, nurture their brands, compete effectively within and outside the company , prepare budgets, work with marketing-research and advertising agencies, influence salesmen, wholesalers, and retailers, and generate sales, profits, and larger market shares. They understand and represent markets, customers, and consumers. "PepsiCo management believed international markets offered the company's greatest opportunity for growth since per capita consumption of snacks in the United States averaged 13.9 servings per month" (Gambler 2008). Weaknesses Both PepsiCo and distribution-channel members are faced with the problem of deciding the best combination

Understanding Management Essay Example | Topics and Well Written Essays - 1500 words - 1

Understanding Management - Essay Example A close analysis of the design, fabrication, and assembly departments reveals that the workers have exhibited mixed reactions towards the new system adopted. This paper will critically analyse the management theories applied in each department. Workers in the design department have made it clear that their job description involves a high level of creativity and complexity. Therefore, the employees feel that the performance related pay system does not compensate them appropriately. Since they apply their creativity in their daily activities, they have the conviction that such talent deserves proper recognition and rewards. In addition, the employees have highlighted that the products of their creativity should be considered as their intellectual capital (Markert 2008, p. 41). Unfortunately, the company has been against this idea. In the view of the management team, all the creations of the design produced by the department staff members remain to be the property of the company as long as such individuals are staff employees to the company. Although the company management is unwilling to consider the issues raised by the employees in this department, they do not consider replacing the staff members. The management team is we ll aware that employees with the level of talent required are rare. The board members have tried negotiation with the professional staff members without any success (Zgarrick 2012, p. 67). The professional work-based assessors have made it clear that the payment and reward system adopted by the company has negative effects on the quality of the designs. The assessors suggest that the company should hire the staff members as consultants and not full-time staff members. The management approaches used by LIPC Company reveals that the classical management theory is in place. The classical management theory focuses on proper organization in an effort to register increased productivity. Usually, the