ORGANIZATION BEHAVIOUR (EIB 20403)

M10

GROUP ASSIGNMENT : PEPSICO

PREPARED BY:

NAME ID NUMBER
NUR ATHIRAH BINTI YAZIZ 62212120357
NURUL SYAFIQAH BINTI MOHAMMAD ZAMRI 62214121447
SAFIRA RIZKI AMALYA 62200222043
ROPI ROUDOTUNNAZAH 62200222042

PREPARED FOR:

MUHAMMAD NAJIB BIN NOH

 TABLE OF CONTENT

No. Topic Page

1. Introduction of the company 3

-Company profile 3-4

2. Mission 5

3. Vision 6

4. Organization's Values 7-8

5. Organization's Culture

- Features of PepsiCo's organizational culture 9-10

- PepsiCo's culture: advantages and disadvantages 10
6. Objectives 11-12

7. Organization's structure 13-14

8. Leadership style 15-16

9. Journal articles related with PepsiCo's leadership style, culture, and 17-18
structure

10. Conclusion 19

11. References 20-21

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 INTRODUCTION OF THE COMPANY

PepsiCo Inc. is an American multinational food and beverage corporation

headquartered In Purchase, New York, United States, with interests in the
manufacturing, marketing and distribution of grain-based snack foods, beverages, and other
products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and
Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader
range of food and beverage brands, the largest of which include an acquisition of Tropicana in
1998 and a merger with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.
As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1 billion
each, and the company's products were distributed across more than 200 countries, resulting in
annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food &
beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the
largest food and beverage business. Indra Krishnamurthy Nooyi has been the chief executive of
PepsiCo since 2006, and the company employed approximately 297,000 people worldwide as
of 2011. The company's beverage distribution and bottling is conducted by PepsiCo as well
as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company. The
primary identifier of a food and beverage industry main brand is annual sales over $1 billion. As
of 2015, 22 PepsiCo brands met that mark, including Pepsi, Mountain dew, Gatorade, Tropicana,
7up, Lipton teas and many more.

1.1 COMPANY PROFILE

Type : Public (NYSE: PEP)

Founded : Chicago, Illinois, U.S. (1965)

Headquarters : Purchase, New York, U.S.

Area served : Worldwide

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Key people : Indra Krishnamurthy Nooyi(Chairwoman,
President & CEO )

Industry : Food Non-alcoholic beverage

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 MISSION

Our mission is to create more smiles with every sip and every bite.

 FOR OUR CONSUMERS:

By creating joyful moments through our delicious and nourishing products and unique brand
experiences.

 FOR OUR CUSTOMERS:

By being the best possible partner, driving game-changing innovation, and delivering a level of
growth unmatched in our industry.

 FOR OUR ASSOCIATES AND OUR COMMUNITIES:

By creating meaningful opportunities to work, gain new skills and build successful careers, and a
diverse and inclusive workplace.

 FOR OUR PLANET:

By conserving nature’s precious resources and fostering a more sustainable planet for our
children and grandchildren.

 FOR OUR SHAREHOLDERS:

By delivering sustainable top-tier TSR and embracing best-in-class corporate governance.

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 VISION

Our vision is to be the global leader in convenient foods and beverages by winning with
purpose. This reflects our ambition to win sustainably in the marketplace and accelerate our top
line growth, whilst keeping our commitment to do good for the planet and our communities. It
builds on decades of progress we’ve made since PepsiCo was founded in 1965, while setting a
firm foundation for a new era of growth and prosperity. To help us achieve this vision, we’ve
defined a new set of aspirations: to become Faster, stronger, and better.

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 Organization’s Values

PepsiCo's core values include "sustainable growth, people's empowerment, trust, and
accountability." PepsiCo is a company that strives to be the best socially and economically, so
these values accurately reflect what the company is aiming for. They create a culture that leads
the entire organization and drives the company towards its vision.

The desire to stimulate sustainable growth is PepsiCo's priority, which is directly related
to how the company focuses on empowering both employees and other stakeholders, including
product consumers. doing. Ideally, the company sees this as a win-win situation that ensures that
all needs beyond its needs are always met. Promoting PepsiCo's diversity and engagement
elements complements the company's efforts to promote engagement for everyone everywhere.
In this way, the best working conditions for everyone and the company are created. If this
happens, PepsiCo can easily carry out all its responsibilities.

PepsiCo's values reflect its position on social and environmental issues and what the
company wants to know. The statement that sheds light on the company's values is:

“PepsiCo is committed to delivering sustained growth through empowered people acting

responsibly and building trust.”

For analysis, the statement can be broken down into three parts.

1. Sustained Growth
PepsiCo expects its employees to have a vision of sustainable growth. A skill that
leverages other skills such as innovation, ambition, and determination. PepsiCo believes
that one of the keys to long-term success is long-term planning. And employees must
have a vision and value for sustainable growth, not only for themselves but also for the
company.

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2. Empowered People
PepsiCo is a business enterprise that believes in giving freedom and autonomy to
its employees, for the reason that the paintings inside the business enterprise`s
governance. To live to tell the tale at PepsiCo, worker empowerment is a crucial skill.
The employer values individuals who can get the process carried out efficaciously with
minimal guidance.

3. Responsibility and Trust

PepsiCo expects its employees to be responsible and credible. The company
believes that these two core values are of paramount importance to the company's growth.
All employees are expected to carry out all activities responsibly, taking into account
company policies and general rules and regulations. It builds the company's trust in
them. 

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 Organization’s Culture

PepsiCo's corporate culture reflects the company's commitment to maximizing its talent
strengths. A solid organizational culture defines employee traditions, values , and abilities. For
PepsiCo, employees are encouraged to work together and focus on excellence. As the second-
largest food and beverage company in the world, PepsiCo is constantly striving to improve its
workforce. To maintain our position in this market, it is important to foster a high-performance
culture. PepsiCo uses its organizational culture as a strategic approach to maximize its
performance by leveraging people's strengths. PepsiCo's organizational culture emphasizes the
care of employees and their ability to achieve high business performance.

Features of PepsiCo's Organizational Culture

Characteristics of PepsiCo's organizational culture PepsiCo represents a long-standing

corporate culture. This aspect of business responds to changing leadership and business
conditions. Currently, the main features listed are PepsiCo's organizational culture!

1. Purposeful Performance: PepsiCo people are leading the goal of achieving excellence
for the company, customers, communities, and the planet. This cultural feature illustrates
PepsiCo's commitment to fulfilling its social responsibilities. The most important impact
of this cultural feature is to motivate employees to perform better. Employees are
motivated to excel in their work and ensure that their efforts contribute to the
improvement of the company and its stakeholders.

2. Real-world leadership: PepsiCo's culture emphasizes leadership based on what

employees, investors, customers, and communities need. The company is leveraging its
employees' knowledge to expand its leadership position. In particular, PepsiCo promotes
managerial employees. This in-house leadership development shows that PepsiCo's
culture leverages employee experience to drive growth. As a result, the organizational
learning process is maintained by the PepsiCo

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 3. Corporate culture Collaboration: Working as a team is an integral part of PepsiCo's
culture. The company believes that cooperation will improve the company's performance.
PepsiCo recognizes the strengths of each employee, but the corporate culture supports
leveraging those strengths through collaboration. The quality of this culture allows
PepsiCo to support the synergies of its talents rather than relying on individual efforts.

PepsiCo Culture: Advantages and Disadvantages

PepsiCo Culture has the advantage of motivating employees. Employees contribute to the
company by focusing on goal-oriented behavior and the development of internal management. In
addition, the collaboration will increase employee morale and reduce PepsiCo’s turnover.
However, the downside of PepsiCo's corporate culture is its limited support for autonomy and
personal flexibility. This partially determines employee morale. Motivation and performance.
PepsiCo recognizes the importance of delegating work, but its corporate culture does not
explicitly include autonomy or personal flexibility.

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 Objectives

Organizational objectives for Pepsi are the short to medium term targets and goals that
the organization sets to achieve the bigger strategic goals set for the long term. The
organizational objectives are important in shaping resource allocation within Pepsi as well as in
determining the policies, schedules and processes that are implemented in Pepsi.

All objectives set by Pepsi are specific and clear. This helps employees, as well as
managers, manage and maintain focus on the targets and the end results that need to be achieved.
At the same time, specific objectives help managers determine skill development and training
needs within their departments as well. Objectives at Pepsi are also measurable. This means that
all objectives can be tracked for progress. This is important for Pepsi as it helps in meeting
deadlines. The element of measurability is added in objectives by adding quantifiable criteria for
determining progress and objective achievement. The goal should be attainable that even in
stretching the abilities of the employees and challenging them, it should remain possible to
achieve. The objectives at Pepsi are attainable in that they push the employees out of their
comfort zones but remain possible to achieve. Objectives at Pepsi are also attainable in that they
are realistic. This means that Pepsi sets objectives keeping in view the organizational resources
and constraints to be able to achieve objectives effectively and within time. Objectives at Pepsi
are also time-bound in that they have a specified start and finish date. The timeliness of the
objective helps Pepsi maintain a sense of urgency in employees, and keep them motivated
towards achieving the objective.

To developed objectives pepsico should focus on the broader organizational strategy.

This will facilitate the organization in keeping in view the broader purpose and at the same time
work towards achieving quantifiable goals and objectives. By keeping in view strategic focus,
Pepsi also maintains proximity with the vision of the organization and works towards enhancing
the performance of the organization

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 To implement objectives at Pepsi should be discussed with employees mutually. Purpose
of the set objectives should be clearly discussed, and communicated with the employees. This
discussion should entail not only the objective, but also the time period within which it is
expected to be completed, and the processes and means to achieve it. Objectives should also
include aspects of personal and individual growth and development of employees to make sure
that employees remain motivated throughout

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 Organizational Structure

PepsiCo has been redesigned several times to meet the changing global market
conditions. The current corporate strategy reflects the business objectives of expansion and
global leadership. These goals define PepsiCo’s goals in a new statement. PepsiCo's strategy is
also evident in the way its design supports global growth. The business planning process
describes the process and organization of parts of the business, as well as how these factors
interact to achieve the goals and vision of the business. In the case of PepsiCo, strategic planning
helps to control the large company around the world, due to the huge differences in market
conditions.

PepsiCo has a ranking system in its early stages. However, after several major mergers
and acquisitions, as well as a global expansion, the company changed its organizational structure
in such a way. A key component of PepsiCo's strategic planning is the marketing division, team /
operating company, and global leaders.

Marketing division is the most important part of PepsiCo's design process is its marketing
department. These divisions are based on two variables: function and geography. In terms of
business, PepsiCo supports the global division for Frito-Lay as well as another global division
for Quaker Food. In terms of geography, the company has divisions for America, Europe and
other regions. These market segments in PepsiCo's processing class include PepsiCo Americas
Beverages, Frito-Lay, Quaker Foods, Latin American Foods, PepsiCo Europe, and PepsiCo Asia,
Middle East & Africa.

One or the other company operating company is a hallmark of PepsiCo's design team and
refers to the core business unit. The company has a global company or facilities for these
services. PepsiCo's mission in having a working team is to ensure the company's management
and implementation of policies and strategies in a timely manner. These groups are led by a vice
president or vice president. PepsiCo's core business is the Department of Global Operations,

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Global Research and Development, Human Resources, Finance, Government and Legal Affairs,
Technical Management, Training and Development and Communications.

PepsiCo's editorial board also has a notice that applies to all congregations. Leadership
supports monitoring, management, and global governance / corporate governance. PepsiCo holds
high standards for communication, monitoring and management. This part of the design process
also provides a way for PepsiCo to minimize errors through its design and implementation.

The main advantage of PepsiCo’s strategic planning is its ability to focus on local market
needs. This is possible through market share. Configuration management also has the advantage
of supporting PepsiCo's global enterprise management. However, PepsiCo suffers a major
setback in its design process in terms of flexibility. For example, the company has a global
division for Frito-Lay. This feature reduces PepsiCo's ability to respond to market changes and
changes in its Frito-Lay business. So, one potential boost is the distribution of unique global
distribution to regional market segments, so that PepsiCo can improve its response to different
types of markets around the world.

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 Leadership Style

A solid leadership is very crucial for a huge corporation like PepsiCo in the long-term. As
said by Taillard, “With good leadership, you can create a vision and can motivate people to make
it a reality.” (n.d). Especially working in a corporation, it is very easy for employees to get
demotivated because it is not a low-stress type of job. When the right leader comes along, it
would benefit both the company and the employees themselves as they would be more motivated
to move towards the company’s vision and mission.

For more than ten years, Indra Nooyi, PepsiCo’s chief executive officer (CEO), is one of
the most influential people based on the positive impact she has on PepsiCo’s company. She
brought the company from being good to being great. She has such an experience in the industry
before becoming the backbone of Pepsi. She was born in India and later on moved to USA and
working for Pepsi for twenty-two years before obtaining the position that she is in right now.
According to Collins (2011), who constructed the hierarchy of leadership, Indra is considered
level 5 leader.

Indra Nooyi once mentioned that leadership “is hard to define and good leadership even
harder. But if you can get people to follow you to the ends of the earth, you are a great leader.”
This reflects on how she maneuvers the company towards a greater success. A great leader is
supposed to very good at communication skills. Especially when the company involves a lot of
staffs and employees. Undeniably, Indra is an outspoken person and is able to exchange her
knowledge and skills with employees. She developed blogs that allows the company to connect
with the personnel and used by them. This is to appeal to them emotionally and indirectly sells
the idea of a family within PepsiCo. It develops trust-based relations with the personnel and
motivate them to worker more diligently. This moves the company forward as the foundation of
the company, which is the employees are motivated to work towards the vision and mission. She
even sends letters to the personnel’s parents to express gratification for their child’s hard work in
the company.

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 It is seen as very crucial to be accountable when it comes to the being in the company.
This attitude towards oneself can be very beneficial when it comes to avoiding any issues in the
future amongst personnel. She is also the one who takes responsibility for her decisions and
actions. Not only among personnel, but she also communicates well with the company’s
customers. She makes sure that they feel valued and listened to. One of the ways to show that her
team are feeling appreciated is to provide packages including pensioners. This creates a close
and emotional bond between the company and the employees themselves. On the other hand, for
her accountability and sense of integrity amongst employees and personnel, she is considered
someone whom they can rely on and at the side, she also expects feedbacks from them.

Indra Nooyi is considered to have a situational leadership within PepsiCo as she is

flexible and ready to make or change decisions based on the current situation that is happening.
She is also a democratic leader who listens well to qualified teams for suggestions and opinions.
At the end of the day, those opinions that are voiced out by the employees are later reviewed and
evaluated fairly. With all the excellent communications between her and personnel, she also
keeps contact with her workers and try to make them feel comfortable as if they are part of a big
family. She updates the business from time to time to make sure that the workers feel
empowered and moved to improve the business towards the vision and mission.

At the end of the day, what Indra Nooyi does and how she carries herself is parallel with
the core value of PepsiCo which is sustainable growth, people’s empowerment, trust, and
accountability.

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 Journal Articles Based on Leadership Style, Strategy and
Culture Related to PepsiCo

There are arguments about the difference between the leadership style of men and women
in the corporate world. A woman leader like Indra Nooyi takes a more nurturing approach when
it comes in managing a big business corporation like PepsiCo. She is more employee-based
rather which means that she focuses more on communication and developing relationships with
the employees. This could bring a great impact towards employees as it can develop a close
emotional bond between employees and the company as they would feel like they are being a
part of a big family.

In a journal produced by International Research Business, Schwartz (1987) found that a

high level of submissiveness among workers exist in a work environment that has a democratic
atmosphere to it. Democratic style of leadership that has being used in PepsiCo can maintain
good morale and a steady level of work. It is shown that workers are less likely to be stressed out
because they are allowed to voice out their opinions. A great sense of community within the
workplace would increase the likelihood of producing a higher productivity and lessen the
chance of feeling isolated and stressed at the workplace. A good relationship amongst the people
in the community including the higher ups always indicates the existence of trust and sense of
belonging in the community.

PepsiCo as known by now is led by a democratic style of leadership. This means that the
employees are encouraged to speak up for themselves. One good example is the case of the
formal whistle-blowing hotline over at PepsiCo that is called “Speak Up!”. This hotline was
meant for employees to make reports of misconduct in the workplace that covers both local and
international issues. This enables a direct employee reporting of issues to create the community
of integrity and solve issues that can potentially harm the company’s image. To make things
better, the hotline is run by a third-party vendor so that it makes the reporter more comfortable
venting their work related problems. Not only the company provide a hotline but also a website
to send reports over to. This feature over at PepsiCo provides a “safety valve” for the employees

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to report any misconduct happening in the company. The company also practices democracy by
having bi-annual 360 degree feedback process. This way, employees would feel heard and
appreciated.

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Conclusion

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