HPO Implementation Action Plan: Pepsico Case Study Assessment Item 2 Answer
- PEPSICO was a household drink since 1903.
- Twice bankrupt still tide over the current.
- Faced immense competition still standing tall.
- Presently PepsiCo needs to redefine itself as a global leader.
- PepsiCo needs to establish itself as an environmentalist.
- PepsiCo needs to get out of the junk food tag.
- The company is recommended to integrate digital tools or social media for gaining popularity
- Engaging the farmers with appropriate compensation for the raw materials
- Strengthening the e-commerce platform for increased sales through target customers
- Recognizing the employees from the bottom to top hierarchy in achieving better performance and productivity
PepsiCo was founded as Brads’ drink in the year 1903 when Caleb Bradham patented his soft drink in the name of Pepsi Cola. Pepsi Cola industry went through two drastic bankruptcies but still survived in the economy. Later, Pepsi and Coca-Cola bifurcated; however, Pepsi had the highest sales and popularity worldwide. Strategic and apt marketing practices enabled the corporation to stand tall amidst so much controversy and diversification. It is recommended for PepsiCo to regain and reiterate the world populace that PepsiCo has not only looked forward to owning profit but also has duly worked for the benefit of society. The second recommendation to establish itself as an HPO in the competitive market the company needs to strengthen its position by being indigenous to the community. As described by Busco et al. (2017), the third recommendation is sustainable development by practising CSR through the accumulated profit which can mitigate the brand image of the company on the criticism that it faced in India.
The recommendation for PepsiCo is to integrate the social media tools and digital platform that can increase the popularity of the company. Being one of the high performance-oriented organization, the company needs to focus on the development and training of its workforce to implement innovation and research on the formula of drinks and improve the taste of the products. The usage of local bottlers for bottling the soft drinks and supporting the farmers to yield better crops will help in enhancing the cost-cutting of operations of the company (Dutta et al. 2016). The employees of the company need to be recognized and evaluated. The high performance from the employees will help in building a strong network of the workforce engaged in achieving the strategic goals of the organization under the strong leadership of the managers (Shehrawat, 2019). E-commerce platform through local vendors and urban grocery delivery apps can be optimized in selling the products and creating a robust market for the company.
- Training and supportive work environment for the employees
- Improving diverse work culture and gender equality through the removal of the gender gap in payment
- Staff mobility and access from work from home due to pandemic crisis
- Developing a sustainable workplace culture and practices
- Implementation of CSR practices focusing on the planet, people and profit
The performance of the recommendation for an HPO organization includes the training facilities provided to the employees on induction, and the experienced employees are provided training on incorporating new technologies in the production units. The digital platform usage is also essential to create popularity for the product which requires a dedicated team for continually monitoring the digital space, attaining the queries of customers, immediately responding mitigating the criticism or issues raised by customers on social media platforms, and improving the handling of e-commerce sites to increase the web traffic for the organization (Annan-Diab & Molinari, 2017). The inclusion of people irrespective of their cultural difference, sex, race, religion, and gender must be implemented to exhibit equality in the organization which can enhance the brand image of PepsiCo in the competitive market (Sumedrea, 2016). The flexibility in employee policies, recognition and awards and providing opportunities to work from home must be implemented in the organization to increase the retention of employees. The company must implement low-cost products to make an impression on the customers through competitive pricing.
The recommendation and implementation of the plan must follow a logical sequence and synchronization with all departments of the company. The fund allocation for the commissioning of the CSR activities must be justifiable in the time of pandemic to enhance the brand value and improve customer satisfaction at the same time.