17 Nov 2022

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Change Management Simulation of Pepsi and Coca-Cola: Power and Influence

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Solutions and alternatives 

Pepsi Company has been striving to come up with improved solutions and alternatives that address some of its major challenges. The company, for example, must determine strategies for countering the influence of global competitors like Coke. Similarly, it must adapt its operations to the changing technologies while innovating to meet the needs of its customers. Changes in customer taste and preference is also another factor that has led to the need for solution and alternative that can enhance the performance f the company. The successful selection and implementation of solutions and alternatives help to adjust the current operations of the company to be in line with the changing business environment. 

Pepsi research and development and a dynamic management team have been influential in establishing workable solutions and alternatives that have enhanced its current position domestically and internationally. The company has been able to turn around its fortunes to continue reporting improved performance. The global perspective has significant challenges for the company but the management has managed to establish an organizational culture that embraces change and adopts new solutions to enhance the performance of the company. 

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Sunglasses manufacturing relies on research to develop its glasses from green materials. The company has successfully managed its research department where new solutions and alternatives are evaluated to determine the applicability based on the needs of the customers. The management also promotes the development of creative ideas that promote innovations and problem-solving. 

The two companies have similar approaches that help to come up with solutions and alternatives that meet the ever-changing business environment. Sunglasses can use the solutions and alternatives used by Pepsi but to a lesser extent given that the target market is different. Similarly, the sizes of the two companies and their culture might affect the selection of alternatives from different solutions generated by the management. It is, therefore, necessary to consider the compatibility of some of the solutions to current business practices of the company. 

Strategy 

Pepsi is the second largest company in the food and beverage industry. Its strategy is aimed at addressing the intense competition from multinationals like Coca-Cola or other companies operating at the national or international market. The strategy adopted by the company is as a response to the changing global food and beverage market. The strategy of the company matches its desire for long-term growth. The growth strategy for the company allows it to use its generic strategy to keep its competitive advantage. The company's success, therefore, shows how appropriate the selected strategies support its competitiveness. 

The key strategies for the competitive advantage of Pepsi Company are differentiation and cost leadership. According to the company's annual report for 2017, the design team is determined to develop new products, for example, LIFEWTR and creating memorable experiences for its market. The design team helps to showcase the company's reputation as a leading innovator. The corporate level strategy avails new products to the customers while creating strong brand recognition to direct its business level strategy. The company has a low-cost differentiation strategy acquired through economies of scale and mass production while differentiating its products using taste and marketing efforts. 

Sunglass manufacturing depends on product innovation and its green initiative to boost the position of the company in the market. The core strategy is research and development with the aim of generating innovative products that satisfy the needs of the market (Yasir et al., 2016). Both companies are using research and development to innovate similarly, there are differentiating their product offering to meet their target market needs. The strategies of Pepsi Company can be used in Sunglass manufacturing its current and future operations. However, there are significant changes that must be made due to the differences in the industries and the product offerings of the two companies which meet different needs in the market. 

Leadership 

The board of directors for Pepsi Company consists of 15 members where Indra K. Nooyi serves as the CEO and Chairman. Indra is a charismatic and effective leader who appears in every list of female leaders around the world. The leadership of the company is strong and dynamic something that has been reflected by the company’s strong financial performance. Pepsi for long has delivered top-tier financial performance as it continues to invest to enhance a sustainable long-term growth. The company has been the source for great talent in the industry has built firm top-level senior executives who support the company's efforts to deliver value to its shareholders while maintaining it at its growth trajectory (PepsiCo, 2017) . The leadership of the company is determined to achieve its strategy while countering competition. The company has successfully managed to turn around its dwindling performance and rebounded to profitability. 

Sunglass manufacturing relies on senior management, employees, suppliers, and consumers as well as the community for its green raw materials. The leadership of the company is dedicated to its vision and mission and therefore visualizes the bigger picture of the company to identify where its values lie. The leadership is determined to address eye problems in the vulnerable population by manufacturing using green raw materials that enhance the quality of its products. The management has successfully used the capability of its human resource to drive the business objective (Yasir et al., 2016). The leadership of the company has successfully targeted a niche market which is served by few companies and therefore faces reduced competition and external pressure. 

The leadership of Pepsi Company can be at Sunglasses Manufacturing due to its dynamic and innovative approach to managing the company. Sunglasses can benefit from a global outlook enjoyed by Pepsi where new ideas can be generated to drive growth and market expansion to reach new markets with more innovative products. Implementing the leadership style of Pepsi Company in Sunglasses can raise serious issues given that the target market for the two companies are different and the level of competition differs significantly between the two companies ( Judge et al., 2015). Some of the current management practices can lead to serious challenges if the set up of Sunglasses is in conflict with the aspiration of the new leadership. Similarly, the culture of the company might be incompatible with that of Pepsi. 

Recommendations 

The two companies need to come up with solutions and alternatives that are relevant to their current operations. The same should meet the goals of the company and its strategic focus. Alternatives by the two companies must also consider the influence of organizational culture on the selected solution. The two companies must determine appropriate strategies that can be used to address some of the challenges they face and their desired long-term goal. The selected strategies must consider the strengths and weaknesses while trying to maximize on the opportunities while minimizing threats that are likely to affect the companies. The leadership of the two companies must steer them in the right direction by providing guidance and by motivating their employees. It is necessary to ensure that the leadership of the companies walk the talk and drive real change. No single approach can be applicable to the two companies and therefore it is the responsibility of the management to select the best course of action that is relevant to the company at the moment. They should ensure that any changes will not affect the company negatively and will ensure that long term and short term goals are achieved while promoting cohesion and teamwork throughout the company. 

References 

Judge, W. Q., & Business Expert Press. (2011).  Building organizational capacity for change: The strategic leader's new mandate . New York, N.Y.] (222 East 46th Street, New York, NY 10017: Business Expert Press. 

PepsiCo. (2017). PepsiCo Announces Senior Leadership Appointments. Retrieved from http://www.pepsico.com/live/pressrelease/pepsico-announces-senior-leadership-appointments07202017 

PepsiCo. (2017). PepsiCo's Annual Reports and Proxy Statements. Retrieved from http://www.pepsico.com/Investors/Annual-Reports-and-Proxy-Information 

Yasir, M., Imran, R., Irshad, M. K., Mohamad, N. A., & Khan, M. M. (2016). Leadership Styles in Relation to Employees’ Trust and Organizational Change Capacity: Evidence From Non-Profit Organizations.  SAGE Open 6 (4), 2158244016675396. 

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StudyBounty. (2023, September 14). Change Management Simulation of Pepsi and Coca-Cola: Power and Influence.
https://studybounty.com/change-management-simulation-of-pepsi-and-coca-cola-power-and-influence-essay

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