Human Resources Management Process of PepsiCo
Name of Students:
Marwa Shafique
(2020-GCUF-066915)
Sajeeha Zahra
(2020-GCUF-066886)
Report submitted in fulfillment of
the requirements for the subject.
BACHALOR OF SCIENCE
IN
APPLIED PSYCHOLOGY
DEPARTMENT OF APPLIED PSYCHOLOGY
GOVERNMENT COLLEGE UNIVERSITY FAISALABAD
i
Lyallpur Institute of Management Sciences (LIMS)
Faisalabad
ii
In the name of ALLAH,
The most Gracious and the most Merciful.
iii
DEDICATED
TO THE HOLY PROPHET HAZRAT
MUHAMMAD
PEACE BE UPON HIM
He is the greatest Teacher in the world
AND
OUR BELOVED PARENTS
AND
OUR DEAREST TEACHERS
Who is always with me and guided me with love and gratitude
BY VIRTUE OF WHO’S DEVOTIONS
WE HAVE BEEN SKILLED TO TOUCH AT THIS POINT
iv
DECLARATION
The work reported in this thesis was out by Marwa Shafique registration number 2020-GCUF-
066915 and Sajeeha Zahra registration number 2020-GCUF-066886. We further declare that this
work has not been submitted for the award of any other degree/diploma. The University may act if
the information provided is found inaccurate at any stage.
The work illustrated in this report is carried out by us under the supervision of Miss Rakhshanda;
PT at Lyallpur Institute of Management & Sciences Faisalabad, affiliated with Government
College University Faisalabad Pakistan. We will be responsible for any plagiarism in this thesis.
v
LYALLPUR INSTITUTE OF MANAGEMENT & SCIENCES
FAISALABAD AFFILIATED WITH
GOVERNMENT COLLEGE UNIVERSITY, FAISALABAD
CERTIFICATE BY SUPERVISORY COMMITTEE
We certify that the contents and form of the report submitted by Marwa Shafique registration
number 2020-GCUF-066915 and Sajeeha Zahra registration number 2020-GCUF-066886 have
been found satisfactory and in accordance with the prescribed format. We recommend it to be
processed for evaluation by the External Examiner for the award of the degree.
Supervisor
Signature…………………………….
Name………………………………...
Designation with Stamp...……........
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ACKNOWLEDGEMENT
First and foremost, we express our deepest and sincere gratitude to Almighty ALLAH, the
propitious, sole creator of the universe and the source of all knowledge and wisdom. In this study,
which we have done, Allah Almighty showered blessings continuously to complete this work
timely. All the praises go to Allah Almighty who empowered us to do a study and awarded us time
to present this work in a thesis format after the completion of this work. With trembling lips and
wet eyes praise to HOLY PROPHET MUHAMMAD (SAW), the torch of guidance for humanity
forever, for his sacredness by which we were able to achieve this milestone of our academic career.
We are highly obliged to Dr. MUJEEBUALLAH CEO of Lyallpur Institute of Management &
Sciences Faisalabad who provided us with enormous opportunities to learn new skills.
Wholeheartedly thank HASEEB MUSHTAQ, Vice Principal of Lyallpur Institute of Management
& Sciences It is a great honor and pleasure to express our gratitude first and foremost to our
researched and learned study Project Supervisor. Miss RAKHSHANDA; PT Teacher of Lyallpur
Institute of Management & Sciences Affiliated with Government College University Faisalabad,
who allowed us to study under her kind control. Again, we are thankful to her for her tremendous
help, guidance and motivation. In addition, special thanks to the Head of the department of
Psychology department Miss. IRAM QAYYUM. She supported us in finalizing the study topic.
Marwa Shafique
Sajeeha Zahra
vii
Contents
INTRODUCTION.............................................................................................................................................1
HISTORY OF PEPSICO...................................................................................................................................1
PEPSI PAKISTAN............................................................................................................................................2
FOUNDERS OF THE COMPANY..................................................................................................................3
VARIOUS PRODUCTS IN PAKISTANI MARKET......................................................................................3
MISSION STATEMENT..................................................................................................................................4
VISION STATEMENT.....................................................................................................................................4
HIERARCHY OF PEPSICO.............................................................................................................................4
HIERARCHY OF HUMAN RESOURCE DEPARTMENT............................................................................5
HR INTRODUCTION.......................................................................................................................................5
HR OBJECTIVES.............................................................................................................................................5
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)............................................................................6
HR PLANNING............................................................................................................................................6
RECRUITMENT...............................................................................................................................................6
INTERNAL METHODS...............................................................................................................................6
EXTERNAL METHODS..............................................................................................................................6
STRATEGIES FOR RECRUITMENT.............................................................................................................7
SELECTION......................................................................................................................................................7
SELECTION PROCESS...................................................................................................................................7
EMPLOYEE EMPOWERMENT.....................................................................................................................9
LABOUR RELATIONS...................................................................................................................................9
TRAINING & DEVELOPMENT.....................................................................................................................9
PERFORMANCE APPRAISAL.....................................................................................................................10
COMPENSATION & BENEFITS..................................................................................................................10
SWOT ANALYSIS OF PEPSI IN PAKISTAN..............................................................................................11
STRENGTHS..............................................................................................................................................11
WEAKNESS...............................................................................................................................................12
OPPORTUNITIES......................................................................................................................................13
THREATS...................................................................................................................................................14
CONCLUSION...............................................................................................................................................14
RECOMMENDATIONS:...............................................................................................................................15
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INTRODUCTION
The PepsiCo is an American multinational food, snack, and refreshment organization
headquartered in Harrison, New York, within the village of Purchase. PepsiCo's trade envelops all
angles of the food and refreshment advertise. It manages the manufacturing, distribution, and
promoting of its items. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company
and Frito-Lay, Inc., PepsiCo has since expanded from its namesake item Pepsi Cola to an
immensely differentiated run of food and refreshment brands. The biggest and most later
procurement was Pioneer Foods in 2020 for US$1.7 billion and earlier to it was buying the Quaker
Oats Company in 2001, which included the Gatorade brand to the Pepsi portfolio and Tropicana
Items in 1998.
As of January 2021, the company has 23 brands that have over US$1 billion in sales annually.
PepsiCo has operations all around the world and its items were distributed over more than 200
countries, coming about in annual net incomes of over US$70 billion. PepsiCo is the second-
largest food and refreshment business within the world based on net income, benefit, and
advertises capitalization, behind Nestlé. PepsiCo's lead item, Pepsi Cola has been locked in in a
competition for eras with Coca-Cola; it is commonly referred to as the cola wars. Although Coca-
Cola outsells Pepsi Cola within the United States, PepsiCo within the North American market is
the biggest food and refreshment company by net income. Ramon Laguarta has been the chief
executive of PepsiCo since 2018. The company's beverage dispersion and bottling is conducted by
PepsiCo as well as by authorized bottlers in certain districts.
Pepsi has been over and over criticized by naturalists for its relationship to negative natural impacts
of agriculture in its supply chain and in its dispersing operations, such as palm oil–related
deforestation and pesticide use, its use of water resources, and the negative impacts of its
packaging—Pepsi's packaging has reliably been one of the top sources of plastic contamination
universally. Similarly public wellbeing advocates have criticized Pepsi's high-calorie, destitute
sustenance item lines beside other prevalent nibble and drink producers. In reaction PepsiCo has
made open comments on its commitment to minimizing their affect but has not discharged open
data archiving advance on most of its open commitments.
HISTORY OF PEPSICO
In 1893, Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions. Like many pharmacists at the turn of
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the century he had a soda fountain in his drugstore, where he served his customers refreshing
drinks, that he created himself. His most popular beverage was something he called “Brad’s Drink
" made of carbonated water, sugar, vanilla, rare oils, PepsiCo and cola nuts. One of Caleb's
formulations, known as “Brad’s Drink "; created in the summer of 1893, was later renamed
PepsiCo Cola after the PepsiCo and cola nuts used in the recipe. In 1898, Caleb Bradham wisely
bought the trade name "Pep Cola" for $100 from a competitor from New York, New Jersey that
had gone broke. The new name was trademarked on June 16th, 1903. Bradham's neighbor, an artist
designed the first PepsiCo logo and ninety-seven shares of stock for Bradham's new company were
issued.
1898 - One of Caleb's formulations, known as " Brad's Drink " a combination of carbonated water,
sugar, vanilla, rare oils and cola nuts, is renamed "PepsiCo-Cola" on August 28, 1898. Pepsi Cola
receives its first logo.
1902 - The instant popularity of this new drink leads Bradham to devote all of his energy to
developing Pepsi Cola into a full-fledged business. He applies for a trademark with the U.S. Patent
Office, Washington D.C., and forms the first Pepsi Cola Company.
ADDITIONAL INFORMATION ABOUT PEPSICO WORLD
HEADQUARTERS
PepsiCo, Incorporated (NYSE: PEP) is a global American beverage and snack company. The
company manufactures markets and sells a variety of carbonated and non-carbonated
beverages as well as salty, sweet and grain-based snacks, and other foods. Besides the Pepsi-
Cola brands (including Mountain Dew), the company manufactures Quaker Oats, Gatorade,
Frito-Lay, SoBe, and Tropicana. In many ways, PepsiCo differs from its competitor The
Coca-Cola Company, having almost three times as many employees and larger revenues (See
comparison at Yahoo Finance). The company formed for distribution and bottling is The Pepsi
Bottling Group (NYSE: PBG). PepsiCo is a SIC 2080 (beverage) company.
PEPSI PAKISTAN
The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1 soft drink
in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi
was constructed in Multan, and from their after Pepsi is going higher and higher. Pepsi is the
choice soft drink of every one. It is consumed by all age groups because of its distinctive taste.
Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking by
all. Consumer's survey results explain the same outcome and Pepsi has been declared as the most
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wanted soft drink of Pakistan. Pepsi's greatest rival is Coca Cola. Coca Cola has an international
recognized brand. Coke's basic strength is its brand name. But Pepsi with its aggressive marketing
planning and quick diversification in creating and promoting new ideas and product packaging, is
successfully maintaining is No.1 position in Pakistan. In coming future Pepsi is also planning to
enter into the field of fruit drinks. For this purpose it has test marketed its mango juice in Karachi
for the first time. When Pepsi was introduced in Pakistan, it faced fierce competition with 7up,
lemon and lime drinks, which was established during 1968, in Multan. Pepsi introduced its lemon
and lime, "Teem" to compete with 7up. It successfully, after some years, took over 7up, and this
enhanced Pepsi's profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the market
share whereas the coke just has 20% markets share. Pepsi is operating in Pakistan, through its 12
bottlers all over Pakistan. These bottlers are Pepsi's strength. Pepsi has given franchise to these
bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast
food chain KFC i.e. "Kentucky Fried Chicken."
FOUNDERS OF THE COMPANY
The company was initially owned by late Nawab Saddique Hussain Qureshi & family till 1989.
The Pepsi International franchise declared the management incompetent, thus, the company was
handed over to a new set of personnel. The factory set up was reorganized & reestablished with
expansion in various sectors. The Pepsi International did this by offering it to Mr. Jahangir Tareen,
who formed up his new team. Mr. Jahangir Tareen is nephew of general (late) Akhtar Abdur
Rehman.
VARIOUS PRODUCTS IN PAKISTANI MARKET
1. Pepsi Cola
2. Mirinda
3. 7up
4. Mountain Dew
5. Diet 7up
6. Diet Pepsi
7. Lays
8. Kurkure
9. Aquafina
10. Pepsi Twist
11. Slice Juices.
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MISSION STATEMENT
"To be the world's premier consumer Products Company focused on convenient foods and
beverages. We seek to produce healthy financial rewards to investors as we provide opportunities
for growth and enrichment to our employees, our business partners and the communities in which
we operate. And in everything we do, we strive for honesty, fairness and integrity."
VISION STATEMENT
"To be the world's best beverage company". Being the best means providing outstanding quality,
service, cleanliness and value, so that their every customer is contented and happy with their
products."
"To increase the value of their shareholder's investment through sales growth, cost control and wise
investment of resources."
HIERARCHY OF PEPSICO
Managing Director
Head of Departments
General Managers
Executives
Officers
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HIERARCHY OF HUMAN RESOURCE DEPARTMENT
General Manager HR
HR Development
HR Executive
HR Officers
HR INTRODUCTION
HR department follows the policies by the HR department of PepsiCo. At PepsiCo, their belief that
"their people are their greatest assets”. They take great pride in acknowledging the contribution
each one of them makes. They focus on People Development and for that they ensure:
• Staff PEPSICO with world class Professionals and ensure that the right systems are in place
to encourage them to develop to their full potential.
• Create a collaborative and mutually supportive work environment that encourages people to
grow.
• Build a team of professionals who deliver expertise by participating in business decisions.
• Develop Performance Management and reward systems underlying our Business strategy.
HR OBJECTIVES
• To look out for the wellbeing of all employees of the company.
• Provide leadership and direction to employees of the company.
• Career Development planning for all employees of the company.
• Ensure thorough training of nationwide employees.
• To provide individual employees with orientation on the company at the time of joining.
• To provide employees with solutions to their problems.
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• Maintaining data records of all employees of PEPSICO (Human Resources information
System).
• To evaluate and retain those employees who are assets to the company.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS)
Development of interactive web-site aligned with all HR sub-functions to facilitate communication
between employee and organization through dialogue boxes and speedy availability of information.
Enhancing overall perception of HR, as with the help of HRIS the function of HR is changing
direction and heading towards Relationship Building, in this all the links are being recreated and
employees are given much more weight as compared to past.
HR PLANNING
HR planning’s purpose is to determine what HRM requirements exist for current & future supplies
& demands of workers. The organization ensures that they have the right number and kinds of
people at the right place; this task is accomplished by regular recruitment and selection,
performance evaluation, Promotions, Regular Training and development programs.
RECRUITMENT
PepsiCo uses both Internal and External Recruitment. But the priority is given to the internal if the
employee has the capabilities, required by the management for working on that post. In Internal
recruitment they ask for employee referrals. Any employee can refer any competent and potential
person and if the referred person comes up to their expectations and hired, then the one who
referred is rewarded with a bonus. In External environment the company’s corporate Image matters
a lot in a way that not only new candidates are attracted but also people who became a part of it in
past.
INTERNAL METHODS
PepsiCo usually prefers “Job Posting” in which employees from within the organization are
preferred but if the organization feels that the employee is not competent enough then they go for
external methods. Such announcements are made through bulletin boards, memos and other
internal sources.
EXTERNAL METHODS
PepsiCo usually prefers advertising through newspapers, social media, LinkedIn, agencies and
their official website for their recruitment purposes. They give an open invitation to everyone to
apply, so people who are interested come and if they are capable enough they are hired. They don’t
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prefer any specific universities or colleges to get the applicants, what matters are the potential
talent and caliber of the person and his commitment to work. Last year a scheme is started in which
team of HR professionals visits different colleges and universities to recruit fresh and passionate
candidates.
STRATEGIES FOR RECRUITMENT
In PepsiCo they surely see qualifications but they prefer a person with required skills,
aptitudes, experience and capabilities.
The recruitment process is likewise the same but minutely varies in the organization
depending upon the ranks. In recruitment PEPSICO keeps certain things in front e.g.
What the person was getting (in terms of salary) prior to PepsiCo’s Job.
Whether the person is polished enough to adjust in their environment.
Whether He/she has the required technical skills, the required qualification for the specific
job.
SELECTION
In PepsiCo, selection criteria are based on numerous factors such as education, health, background
and previous experience.
SELECTION PROCESS
1. Application:
The employment application is candidate’s first chance to present his qualifications to the
Organization. As such, it is extremely critical for his/her continued participation in the
examination process. Before beginning, one has to review thoroughly what the Job
Announcement specifies as the requirements to qualify for the position. Candidate must
meet these criteria to be considered for the position; ensure that, otherwise candidate will be
wasting his effort in completing the application. Most entries on the form are self-
explanatory, but a few pointers on filling it out may help.
2. Written Exams:
Written exams are usually obtained from one of several test construction firms available to
them. These tests are designed to determine level of technical and/or analytical abilities
associated with the particular position for which candidate had applied. The test which is
conducted in PepsiCo selection purpose is “TEST OF COGNITIVE ABLITIES”. This test
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is mostly taken from fresh graduates whereas; some people are selected on the basis of
experience.
3. Performance Exams:
Performance exams test ability to accomplish specific job-related tasks by providing the
opportunity to actually perform them. These tests are scheduled through the Human
Resources Department office, with notification in writing of the date, time, location and
duration of the test. Instructions will be given on the tasks to be completed and then asked
to complete them. Individuals with considerable relevant experience will conduct the
evaluations. Safety, quality of work, adaptability, performance under stress, etc. are
evaluated.
4. Specialized Testing :
Some positions will require specialized testing, such as technical skills, agility and
communication skills etc. These tests are scheduled just as like other tests.
5. The Panel Interview :
The results of this component of the exam process will be used to determine if candidate
should be included on the list of eligible candidates forwarded to the hiring authority for
consideration for a departmental selection interview. This portion of the examination is
normally weighted 100% (or as indicated on the job announcement. The panel is comprised
of qualified individuals, which may or may not be employees of the city. Normally, the
panel will consist of three evaluators. These individuals will evaluate responses to a variety
of job-related questions over the scheduled time period.
6. The Selection Interview :
Once the list of eligible candidates is established it is sent to the department(s) that is hiring
to fill a current vacancy. The department head is responsible for setting up selection
interviews. He/she may interview anyone on the list, since all persons referred to the
department are qualified. The Department Head will be looking for the candidate with the
best qualifications for their particular position. The candidate selected to fill the vacancy
will undergo a medical examination, drug screen, background investigation, and a
probationary period before attaining permanent employment status.
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EMPLOYEE EMPOWERMENT
The company is giving more stress on employee empowerment by giving them right to
participate in decision making specially those decision which directly affect the employee
themselves. Also the company gives the subordinates the right to work on the behalf of its
supervisor in absence of him.
LABOUR RELATIONS
The company is paying more attention to strengthen the relationship among employees by giving
them equal opportunities to take advantage of the firm’s incentives, because no biasness among
employees is practiced in the firm which affects the good relations among employees.
TRAINING & DEVELOPMENT
PEPSICO has trained and developed many of its senior and fast track managers and supervisors.
For lower and technical staff the organization have a complete training calendar for the year, if
organization thinks and feel that an employee requires training to update his knowledge about the
field, he just have to report the HR department and he will be listed for the next training program.
• ON-THE-JOB TRAINING:
As compared to other competitive organizations the training program of PEPSICO is quite
different. It provides full opportunity to its employee to develop themselves and also train
9
them according to the requirements of their job. In return they will be greatest asset for their
organization. The employee is being trained in many ways while they are on job.
• OFF-THE-JOB TRAINING:
These are formal training opportunities that PEPSICO offers to employees either internally
or externally. A trainer, facilitator and/or subject matter expert are brought into the
organization to provide the training session or an employee are be sent to one of these
learning opportunities during work time. These training opportunities are provided in the
form of seminars, classroom training courses and workshops.
PERFORMANCE APPRAISAL
The jobs are evaluated on yearly basis by the HOD; the competent employees are rewarded in
shape of promotions, bonus, increments and annual holidays and promotion. The results of an
appraisal can be used to identify areas for further development of the employee. The organization
also uses different questionnaires, which consist of numerous questions about the behavior of the
employee, and then on the basis of these answers personality of the employee is judged. When
evaluation is made the unsatisfactory performers are given warning. The employee after warning is
put under observation, for some period of time and if the employees’ performance is still
unsatisfied then are demoted or fired.
COMPENSATION & BENEFITS
PROMOTION:
Promotion is direct shift only to the next level from the current grade, the employee’s performance
is evaluated and if his performance is above average he is given promotion. PEPSICO promotes
only those candidates who are experienced and eligible for that particular vacancy.
INCREMENTS:
The company decides at the end of the financial year, according to its financial condition, whether
increments should be given or not.
FREE TRANSPORT:
PEPSICO provide free transport to local employee.
MEDICAL FACILITY:
PEPSICO provide free medical facility to workers depending upon the position/rank of the
employee.
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OVERTIME PAYMENT:
Overtime payment is pay for only those workers who are working more than their working hours
mostly overtime payment is given to low level staff.
HOUSE LOANS:
They give the facility of house loan only to deserving individual. The loan approval
depends upon the post of the employee.
SWOT ANALYSIS OF PEPSI IN PAKISTAN
A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is a
simple and powerful way to analyze your company's present marketing situation.
STRENGTHS
1. Company Image:
It also is a reputable org. and is well known all over the world. The perception of
producing is a high quality product.
2. Quality Conscious:
They maintain a high quality as Pepsi Cola International collect sample from its different
production facilities and send them for lab test in Tokyo.
3. Good Relation with Franchise:
Throughout its history it has a good relation with franchisers working in different areas of
the world where they have the production facilities.
4. Production Capacity:
It has the highest production capacity i.e. 60,000 cases per day is not only in Pakistan
but also in South Asia.
5. Market Share:
It has a highest market share i.e. 62% in Pakistan and leading a far step head from its
competitors.
6. Large No. of diversity businesses:
This is also its main strength as it ads diversity in many businesses such as
i. Pepsi beverages
ii. Pepsi foods
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iii. Pepsi Restaurants.
7. Knowledge:
Our competitors are retailers, pushing boxes. We know systems, networks,
connectivity, programming, all the VARs, and data management.
8. Relationship selling:
We get to know our customers, one by one. Our direct sales force maintains a
relationship.
9. History:
We've been in our town forever. We have loyalty of customers and vendors. We are
local.
10. High Tech Culture:
The whole culture and business operating environment at Pepsi-Cola-West Asia has
quick access to a centralized database and they use computers as business tools for
analysis and quick decision making.
11. Sponsorships:
They mainly use celebrities in their advertising campaigning like Imran Khan, Wasim
Akram, and Waqar Younas etc. Also sponsor social activates programs like music etc.
WEAKNESS
1. Decline in taste:
During the last years, it was published in Financial post that there has been big
complaints from the customers with regard to the bad taste that they experienced
during the span of six months.
2. Political Franchises:
Such as in Pakistan, Hamayun Ahkhtar is its franchisee who has a strong political
support from a political party which is in opposition. In; their era in government less
taxes are imposed on them but relation increases as they come in opposition. So
the selection is not appropriate as this thing is harmful to their image as well as the
strategies.
3. Short term Approach:
They have a lack of emphasis on this in their advertising such as currently when
they losses the bid for official drink in the 96 cricket world cup. They started a
campaign in which they highlight the factor such as “nothing official about it”.
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4. Weak Distribution:
They lack behind in catering the rural areas and just concentrating in the urban areas.
5. Low consumer knowledge:
Unable to maximize local consumer knowledge.
6. Lack of soft drink:
Lack of soft drink “know-how” as a result of diversified business units and generalist
managers
7. Costs
The chain stores have better economics. Their per-unit costs of selling are quite low. They
aren't offering what we offer in terms of knowledgeable selling, but their cost per square
foot and per dollar of sales are much lower.
8. Price and volume
The major stores pushing boxes can afford to sell for less. Their component costs are
less and they have volume buying with the main vendors.
9. Brand power
Take one look at their full page advertising, in color, in the Sunday paper. We can't
match that. We don't have the national name that flows into national advertising.
OPPORTUNITIES
1. Increase Population:
As almost in all over the world growth rate is increasing which in turn increases the
demand of products and necessities and especially in Asia the market is growing at a
faster rate as compare to other continents. So they have to attract new entrants.
2. Changing social trend:
As in all over the world people are rushing towards fast food and beverage because of
life which has become much faster, it provide the company a favor to capture this
fast moving market with its take away product.
3. Diversification:
They may enter in garments business in order to promote their brand mane, by making
sports cloths from players which represent their name by wearing their clothes.
4. Distribution of snack foods:
Opportunity to distribute Pepsi snack foods in the future.
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THREATS
1. Imitators:
They also have a problem of imitators as receives complaints from customers that they
find take product in disguised of Pepsi’s product.
2. Government Regulation:
They face problem if government employ taxes on them which force them to raise the
price of their product.
3. Corporation’s shortage problem:
Again this is also a serious threat from its suppliers as if supplier is unhappy with the
company. He may reduce the supply and exploit the company. This action will surely
affect the production process.
4. Non-carbonated substitutes:
Non-carbonated substitutes, such as juices and tea brands are maintaining a strong
foothold in the market.
5. Political instability:
The big threat to Pepsi in Pakistan is Political instability and civil unrest.
6. Threat of labor strikes:
External threat of labor strikes and power outages in Pakistan.
CONCLUSION
The PepsiCo is a name of standard and quality product. PepsiCo is stressing more on its short term
planning strategies to make its image good enough in the world community and is stressing more
on the customer services and health and nutrition factors. It has a strong management to keep the
PepsiCo on the height of professionalism and commitment to quality. Management functions have
a strong impact in the PepsiCo. The management of the PepsiCo does not compromise on the
quality and the values to be followed. This way the company is prospering by accelerating its
functions in a well-mannered way. CEO believed that the well-developed soft drinks market in
Pakistan provided PCI with a tremendous future. He commented, consumers want to buy soft
drinks delivered at convenient locations in the right package. We have to make sure that the market
keeps growing annually, and that company products are available everywhere. With PCI winning
the International Quality Award and Bottlers of the Year Award in 1990, CEO felt quite optimistic.
Although difficult challenges lay ahead, he believed that the way to exploit opportunities was
14
through the implementation of an effective and comprehensive marketing strategy encompassing
PCI’s brand portfolio and bottlers.
RECOMMENDATIONS:
They should develop such system in their HR department that no ethical issues can be
raised.
The employees should participate in all the activities of the department.
The factor of favoritism must be eliminated from the department of HR.
They should hold meetings of the HR employees more frequently for eliminating any
misunderstanding.
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