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Table of Contents
Operations
activities and technology for Pepsi
Operations management activities
Introduction of Report on Pepsi Company
In
the world the renowned brand is the Pepsi. Pepsi is the multinational company
which is well organizes and it’s also operates almost across the world. In the
world it make best ever carbonated beverages. The symbol of the hygiene,
services as well as quality is the Pepsi all over the world. For more than 100 years Pepsi is producing the
Coola plus it is also dominated as the world market for the long time. In the
New York the head office is situated. For the separate international division the
Pepsi has the world wide expansion which led the formation in the 1959 and 1954,
and the Pepsi becoming the first American producer that is ever licensed for
the manufactures
Figure
1: Logo of Pepsi
Background of
Report on Pepsi Company
The
large company which dealing with the beverages, snack and the food is the Pepsi
, and it is also approximated by the worth of the $39 billion and this is
employed through the 185,00 employee’s
Figure
2: Logo of Pepsi
Pepsi Company size
Pepsi
Co is the global headquarters which is building form the Donald M. Kendall Sculpture
of gardens in New York has the hamlet of purchase.
|
item |
Details
|
|
Type |
Public |
|
Exported as |
·
NASDAQ: S&P 500 component,
S&P 100 component,
PEP,NASDAQ-100 component |
|
Business |
Beverages, Food processing |
|
Established |
121 years ago in August 28, 1998 |
|
Head Quarters |
Harrison , New York |
|
Area served |
Worldwide |
|
Revenue |
US$
64.66 billion (2018) |
|
US$10.11
billion (2018) |
|
|
US$12.51
billion (2018) |
|
|
US$77.64
billion (2018) |
|
|
US$14.51
billion (2018) |
|
|
Number of workers |
263,000 (2019)
|
|
Website |
Pepsi Business type of
Report on Pepsi Company
The existing company is
very famous in the market and one in of the top five beverages companies in the
world. The business of Pepsi is different type. It is different because the
main products of the company are beverages as well as water bottles having name
Aquafina. In short, PepsiCo has two dozen billion-dollar brands as well as is
one the biggest beverages and food business throughout the world. Pepsi is
focusing to increase the sales for grab the high market share to give a tough
time to its competitors.
Pepsi areas of operations of
Report on Pepsi Company
Pepsi
have different areas of operations. The existing company have to operate into different
areas such as the design of goods and services. Company focuses to make the
design better of the goods such as it strategies to produce more as well as the
bring improvement in the services. In the second area, company manager the
quality. The company effectively manages the quality of beverages as well as
the other related things for maintain the same taste of the beverages as well
as for the high quality. The company needs main the process and capacity of the
design because process and design of the capacity is very significant for the quality
production and for the quality services that strengthen the business of the
company to grab high market share.
In
the very simple words, process maintenance is performed due to bring efficiency
in the production processes. Some strategies like location and layout design
strategies are performed. Pepsi needs to select the location or the areas or
the market to offer their services as well as products. Another important
operation of Pepsi is the designing the job and the human resources. It is very
important because the management of staff and workers is performed by human
resource department. The management of the supply chain is that task which
controls and decide or select the areas where the company should have to supply
their products by making a business schedule that shows the complete strategy
and time for the tasks and the last operation of Pepsi is performing the
maintenance of the strategies as well as the process.
Pepsi competitors
of Report on Pepsi Company
The
top competitors of the Pepsi are;
Coca Cola
Due to its brand value as
well as their large market share Coca-Cola is observed as a top Pepsi competitor.
Coca-Cola’s Marketing strategy is good as well as targets all ages of the
people
Red Bull
Red bull is also considered as the top Pepsi competitor, because it is the energy drink, that sold by the Austrian company. It also has the highest share in the market.
Dabur Real juice
Due to their large
variants of products, Dabur Real juice is regarded as a top Pepsi competitor. The figure
of the Dabur Real juice is shown in the below appendices 1
Operations activities and technology for Pepsi
Client requirements: The current operations of the document are using verbal
explanations, job analysis, and descriptions of the job, flowcharts, or same techniques,
the technology as well as the operations activities should be explained by you
for the company. Precisely, several outputs, transformation processes as well
as several inputs must be recognized. The existing company is effectively
focusing to fulfil the requirements of the clients. It is because the clients
are the key drivers for the business of the company as well as for the market. In
this case, we have chosen Saudi Arabian market. The people there like to buy as
well as consume the beverages and everyone has its own choices and
requirements. The company must have to increase its sales and for this purpose,
the company and the marketing team must have to identify the key requirements
of every client and consumers. For the identification of the requirements, the
company must have to follow and establish some kind of processes as well as
develop some strategies that can be very helpful in taking the feedbacks of the
customers, consumers as well as the clients and very helpful to get the key
requirement of the customers. The first thing that can be very effective as
well as useful for this purpose is to conduct a survey along with an offer to
the client. The company should have to investigate efficiently. The company is performing
some activities, operations regarding management for fulfilling’s the
requirement of the clients.
In
the activities to make the trends of drinking the beverages of Pepsi is much
appreciated as well as highly recommended activity is performing the
technological activities. In the technological activities, the existing company
must have to use some technology to make and set trends into the targeted
market. Some verbal communication can be performed to take the feedback of the
clients as well as the technology like the online calls or TV ads or commercial
ads can be broadcasted for this purpose. The existing company should have to
take the records of the customers to contact them back to convince them to come
back to buy the products of the company. The company effectively manages the
quality of beverages as well as the other related things for maintain the same
taste of the beverages as well as for the high quality. Another important
operation of Pepsi is the designing the job and the human resources. It is very
important because the management of staff and workers is performed by human
resource department. In the end, the company should have to perform some
operations for the management activities to make the company strong by bringing
improvements in the strategies of the company as well as other kind things like
quality control and designing the strategies and models as well as the
maintenance.
Operations management activities
PepsiCo
is one the biggest players in industry of beverage as well as food across the
globe. PepsiCo’s operation management practices play a vital role in
maintaining its position as it has to cater for the business requires within 10
areas for the strategic decision. The 10 areas for decision are the aspects of
the business which needs to be streamlined if PepsiCo wants to attain best
performance. PepsiCo’s continuous progress as well as demands of expansion that
they should also keep on improving their operation management practices
A
combined method is owned by PepsiCo for the 10 strategic decisions of operation
management thus their methods are usually suitable for the organization globally.
Operations management consists of controlling, planning as well as scheduling of
the all the actions that convert organizational efforts into completed products
as well as the services which consumers can use. Management of the operations concentrates
on the planning effectively in a company and controlling the manufacturing
process through application of concepts such as accounting, quality assurance, engineering,
production, management, etc. Operations management is all about using all the
resources at hand to produce finished products and services which meet
customers’ needs in a cost-efficient way. Operations management puts a large
number of stress on management of the procedures involved in distribution of
the products as well as production. These processes involve creation and
distribution of products
Design of good/services
This
is one of the most import strategic decisions in operations management, it
involves match good and services with consumers’ demands and preferences.
PepsiCo performs so by researching based on market as well as innovation in the
product. PepsiCo conducts research on the market about the general consumer
lifestyle as well as current trends. This research gives PepsiCo an idea about
the future direction they should take in their product design and what new
products would sell better in the market
Quality management of
Pepsi Company
Quality
management plays vital role in making large loyal consumer base. The objective
of the area of strategic decision is improving the quality on the basis of consumer
expectation as well as business so that consumers don’t switch from your
products. One of the goals of PepsiCo is “Human Sustainability” and due this
PepsiCo aims at providing the highest quality products. PepsiCo always keep on
improving its products e.g. PepsiCo’s new Pepsi products will be low calories
drinks
PepsiCo
has very strict standards of the corporation which help in accountability of
its employees as well as operations. PepsiCo policies make emphasis on areas
like corporate governance, human sustainability and environments
sustainability. All of these help PepsiCo provide products which are
economically efficient and healthy.
Process and capacity design of Pepsi Company
This
decision area focuses on utilizing capacity and process efficiency. The main
goal of this decision area id to maximize the productivity to cost ratio. E.g.
PepsiCo’s facilities for manufacturing have production processes as well as high-output
assembly line are computerized which exponentially increase the efficiency.
Location strategy of
Pepsi Company
The
goal of this decision area is to select locations such that it maximizes your
sales. PepsiCo has several partner-owned
facilities as well as company-owned facilities at important areas. Having
facilities at strategic locations help PepsiCo in maximizing the reach to the
target market. Most of their facilities are situated in important areas near
most sellers. As PepsiCo is particularly attracted in food service
establishments as well as large retail outlets with large volume of sales, it
leases or buys facilities keeping this in mind.
Layout Design of
Pepsi Company
The
goal of this key decision is to design places such that there is well-organized
program of information, materials as well as people. It also includes designing
the places which enhances the employees to give their best for the organization
Supply chain of
Pepsi Company
The
supply chain in a company should be designed in a way that it maximizes the
value of the produced goods or services. Supply chain is considered to be the
difference amongst value of the produced goods or service and cost incurred at
the time it fulfills consumer’s request. The supply chain management at PepsiCo
starts at early as determining the location of the production plant, and
PepsiCo has ensured that the production process is automated so that the
efficiency is maximized. PepsiCo also handles the transportation of the
delivery of the products they manufacture. They also have arranged third
parties for the procurement of the product
The
shipping department is responsible for making orders the transport department’s
responsibilities are ensuring the goods reach safely. PepsiCo has also identified both local and
foreign suppliers from whom they can purchase raw materials at negotiated prices.
Capacity building is necessary at this stage. All the supplies to the company
are audited by quality control section. Company decides if it wants to go with
a previous distributor depending on their previous performance and other
factors. Managing the supply chain process involved making sure there is a
healthy association amongst customers and suppliers as well as also anticipating
request and receiving the feedback from the chain.
Figure: supply chain
characteristics
Marketing strategies of
Pepsi Company
Marketing
strategies play a vital role in the performance. A lot of good products fail
just because of bad marketing. Good marketing strategies are necessary for a
company to survive in a tough competitive environment.
PepsiCo
has very well designed local and internal programs for marketing and
advertising their products and enhance brand image of their brands. They also
quality control department which ensures that the quality is maintained as good
marketing and quality go hand in hand. PepsiCo uses various promotional
strategies to enhance the brand image and sales of their products e.g. the
throwback campaign by PepsiCo includes offering a drink with the sugar content
of the unique drink. There are many more promotional strategies which have been
used by PepsiCo.
Distribution strategies of
Pepsi Company
A
company has to be very cautious about its distribution strategies as these
strategies are the most for providing products to customers. PepsiCo uses two
types of distribution strategies namely direct distribution and indirect
distribution. PepsiCo handle important accounts using direct distribution and
these significant accounts are dissimilar wholesaler, restaurant as well as
hotels e.g. metro etc. These accounts are very important for competition.
Indirect direction distribution is achieved by different base outstation
distributors as well as market distributors.
Before
relaxing for a distributor there are different parameters which PepsiCo uses to
ensure if the distributor is good enough to fulfill their needs. These comprise
the fleet of the automobiles which are driven by the distributor and how much
cash security a distributor is willing to pay among many other things. PepsiCo
has put a lot of effort into enhancing the culture of soft drinks in schools.
It has attained this by building and developing agreements with schools of America.
PepsiCo distributes its products using machines for vending in schools
Inventory
management of Pepsi Company
Inventory
management is one of the most critical operations in any organization. It
includes identifying and selecting the most optimal methods for inventory
control. It is important to keep in mind the product demand before selecting a
method for controlling inventory.
There
are many variables businesses consider before inventory selection methods while
the most common thing they consider is if it satisfies the demand of the
consumers and also generating profits for the company. Since PepsiCo is within the industry of food,
inventory control can be a real challenge due to nature of the products, as
improper handling can also lead to a food-borne disease. Inventory should be in
a position such that it can be tracked and it should also be able to be tracked
in batches as well. PepsiCo employees all these methods which make inventory
management hassle free.
Scheduling of Pepsi Company
Scheduling
of human resource as well as facility are one of the most important concern in
the area of strategic decision of operations management. Human resource
schedules are implemented by PepsiCo facility manager depending on the local
data they have. Therefore, reflex scheduling is also used in some places.
Maintenance
of
Pepsi Company
PepsiCo’s
maintenance concerns are very extensively diverse due various brands and
markets PepsiCo deals in. It area of strategic decision is about managing and
adding adequate workforce as the business grows. It is continued for hiring the
every single person as well as promoting form in the company to improve the
force of working by PepsiCo.
Conclusion of
Pepsi Company
Operations management is an important part of any company. It performs a vital role in the strategy formation of a company as it gives the company a competitive edge over its competitors. An example of this would the process for the planning that helps the company in minimizing its production costs which at the same time getting more competitive and reducing the costs. From the analysis of PepsiCo’s operations management strategies, it is apparent that stability in production, the quality of the produced products as well as innovative products win you orders while speed, cost and efficiency are instruction qualifiers. It has improved share of the market as well as considerable consumer power of purchasing. PepsiCo is the leading company in the market as well as a household name in the beverage and food industry because of all the strong marketing and promotional strategies why have used over the years. And to maintain its position it has to use strong strategies in operations management.
References of Pepsi Company
MAGAZINE, R. (2017, March 31). Principles of
Marketing Report: Pepsi Pakistan. Retrieved from
https://www.ravimagazine.com/principles-of-marketing-report-pepsi-pakistan/
Najdawi, M. (2008). Expert systems for strategic planning in
operations management: a framework for executive decisions. International
Journal of Management and Decision Making.
Bachmeier, K. (2009). Analysis of Marketing Strategies
Used by PepsiCo Based on Ansoff's Theory. GRIN Verlag,.
Erben. (2018). Modeling Methods for Business Information
Systems Analysis and Design. IGI Global,.
GREGORY, L. (2017, Febuarray 6). PepsiCo’s Operations
Management, 10 Decisions, Productivity. Retrieved from
http://panmore.com/pepsico-operations-management-10-decisions-areas-productivity
Ivypanda. (2019). Operations Management of PepsiCo Essay.
Retrieved from https://ivypanda.com/essays/operations-management-of-pepsico/
KACHWALA, T., & et al. (2009). Operations Management
and Productivity Techniques. PHI Learning Pvt. Ltd., .
Lintott, R. (2019, October 31). Coca-Cola, Dr Pepper and
PepsiCo team up for plastic waste initiative. Retrieved from
https://www.verdictfoodservice.com/news/plastic-waste-initiative/
Saeidinia, M. (2012). OPERATION STRATEGIES FOR COCA-COLA VS
PEPSI COMPANIES TO ATTRACT THEIR CUSTOMERS. ontemporary Marketing Review, 1(11),
1-15.
Verdaasdonk, P., & et al. (2001). A generic accounting model to support operations management decisions. Journal Production Planning & Control The Management of Operations, 12(6).
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