Tuesday, July 31, 2012



PepsiCo Inc. is an American multinational 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.

Mission
“PepsiCo’s mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce 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
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today."
PepsiCo’s vision is to put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose
“At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose.
Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.”

Products

               PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 22 different product lines that each generate more than $1 billion in annual retail sales. Its brands stand for quality and are respected household names — Pepsi-Cola, Mountain Dew, Lay's, Gatorade, Tropicana, 7Up, Doritos, Lipton Teas, Quaker Foods,  Cheetos , Mirinda, Ruffles, Aquafina, Pepsi Max, Tostitos, Sierra Mist, Fritos, and Walker’s. Its brands stand for quality and are respected household names — Pepsi-Cola, Lay's, Quaker Oats, Tropicana, Gatorade, to name but a few — and they continue to build a portfolio of enjoyable and healthier foods and beverages for their consumers in more than 200 countries.



Divisions

                Beginning in the first quarter of 2011, PepsiCo realigned certain parts of  reportable divisions to reflect changes in management responsibility. As a result, Quaker snacks business in North America is being reported within  Quaker Foods North America (QFNA) division as of the beginning of our 2011 fiscal year. Before this change, Quaker snacks in North America were reported as part of Frito-Lay North America (FLNA) division. Additionally, as of the beginning of the first quarter of 2011,  South Africa snacks business is being reported within Europe division. Prior to this change, this business was reported as part of Asia, the Middle East & Africa (AMEA) division.
These changes did not impact other existing reportable divisions of PepsiCo.  Historical division reporting is being reclassified  to reflect the new organizational structure.
PepsiCo Americas Foods (PAF) includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of our Latin America food and snack businesses (LAF), including our Sabritas and Gamesa businesses in Mexico.
PepsiCo Americas Beverages (PAB) includes PepsiCo Beverages Americas and Pepsi Beverages Company.
PepsiCo Europe includes all beverage, food and snack businesses in Europe.
PepsiCo Asia, Middle East & Africa (AMEA) includes all beverage, food and snack businesses in AMEA.



Key Figures
Revenue
US$ 66.504 billion (2011)
Operating income
US$ 9.633 billion (2011)[2]
Net income
US$ 6.462 billion (2011)[2]
Total assets
US$ 72.882 billion (2011)[2]
Total equity
US$ 20.899 billion (2011)[2]
Employees
297,000 (2011)[2]

Organization Structure & Culture

                       Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 297,000 people worldwide as of 2011.At  Pepsico, the managers and leaders have identified The relationship that exists between themselves and the employees.In this company, the leaders and managers usually use information elements in supporting the employees' decisionmaking for improvement of the working condition.Employee's involvement in decision making especially in regard to their working conditions and environment is a key to ensuring that a healthy culture is developed in an organization Managers and leaders involve all levels of management as well as the employees on the decision making process and they always encourage open and participatory decision making process.Leaders and managers jointly perform the management function which includes planning, budgeting, evaluating and facilitating of organizational resources .While formulating the plans, employees are consulted and their views incorporated in the overall plans of the company and they also aid the managers and leaders in coming up with forecasted budgets for a particular period of operations.Managers of Pepsico are efficient and carry out their leadership functions effectively. This in turn motivates the employees and they willingly follow the leaders.


SWOT ANALYSIS

Strengths

·         Branding - One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of the world, ranked according to Interbrand. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay’s Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water, Cheetos Cheese Flavored Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, and Sierra Mist.
·         The strength of these brands is evident in PepsiCo’s presence in over 200 countries. The company has the largest market share in the US beverage at 39%, and snack food market at 25%. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company
·         Diversification - PepsiCo’s diversification is obvious in that the fact that each of its top 22 brands generates annual sales of over $1,000 million. PepsiCo’s arsenal also includes ready-to-drink teas, juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes.This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates.
·         Distribution - The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services.

Weaknesses

·         Overdependence on Wal-Mart - Sales to Wal-Mart represent approximately 12% of PepsiCo’s total net revenue. Wal-Mart is PepsiCo’s largest customer. As a result PepsiCo’s fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a higher profit margin than national brands. Wal-Mart’s low price themes put pressure on PepsiCo to hold down prices.
·         Overdependence on US Markets - Despite its international presence, 52% of its revenues originate in the US. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions, and labor strikes. Large US customers could exploit PepsiCo’s lack of bargaining power and negatively impact its revenues.
·         Low Productivity - In 2008 PepsiCo had approximately 198,000 employees. Its revenue per employee was $219,439, which was lower that its competitors. This may indicate comparatively low productivity on the part of PepsiCo employees.

Opportunities

·         Broadening of Product Base - PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russia’s leading Juice Company, Lebedyansky, and V Wwater in the United Kingdom. It continues to broaden its product base by introducing TrueNorth Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers.
·         International Expansion - PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico.
·         Growing Savory Snack and Bottled Water market in US - PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina, and Propel are well established products and in a position to ride the upward crest. PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold Gold pretzels, Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of $28 million.

Threats

·         Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline.
·         Potential Negative Impact of Government Regulations - It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates. Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. If the company has to comply with a related regulation and add warning labels or place warnings in certain locations where its products are sold, a negative impact may result for PepsiCo.
·         Intense Competition - The Coca-Cola Company is PepsiCo’s primary competitors. But others include NestlĂ©, Groupe Danone and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Resently Coca-Cola passed PepsiCo in Juice sales.
·         Potential Disruption Due to Labor Unrest - Based upon recent history, PepsiCo may be vulnerable to strikes and other labor disputes. In 2008 a strike in India shut down production for nearly an entire month. This disrupted both manufacturing and distribution.
PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees. Take a journey through our past and see the key milestones that define PepsiCo.n a major tool that has created a culture of hard work and innovation

Wednesday, July 25, 2012

Three Monks (Chinese Animated Story)




Overview: -

Three Monks is a Chinese animated short, released in 1980 and directed by A Da. It is one of the most famous and beloved of Shanghai Animation Film Studio's productions, and has won awards at film festivals throughout the world.The film is based on the ancient Chinese proverb "One monk will shoulder two buckets of water, two monks will share the load, but add a third and no one will want to fetch water."But In the end of film ,it was shown that how all three work out for a productive solution with proportionate amount of effort for each.


Analysis:-

As film shows , There is a temple at the top of the hill and there is only one source of water , a pond , located at the bottom of the hill. A water barrel is present in temple which can be filled by carrying water from pond. To carry water 2 buckets and a pole is available. And 3 monks come to the temple for prayer one after another.

Basically film is comprises of 4 parts and I analysed and compared all 4 in terms of productivity.
So Lets take work done by one monk to fill two bucket and carry it to top as 1 unit or 1 joule

1) One monk at the temple-
With one Pole and two buckets , first monk fetch water from pond.
Total Buckets carried = 2 , Total work done  = 1 unit 

2) Two monk at the temple-
Both monk firstly behave friendly but when they needed water , no one was ready to fetch it. So they come up with sharing of load , where 2 monk will carry only one bucket which will be in the exactly middle of the pole.
So,
Total Buckets carried = 2 , Total work done  = .50 x 2 = 1 unit 



3) Three monk at the temple-
when third monk join them in temple , all three of them starts expecting from other 2 to bring water and so no one  fetches water. So in all work done is null.
Total Buckets carried = 0 , Total work done  = .0 unit 



4) Three monk at the temple(Solution)-
In crisis situation , All three make effort and with sharing of load , all 3 were able to fix the problem and also get united. So they come up with a solution for future and divide the work proportionately. 
So,
Total Buckets carried = 2 , Total work done  = .33 x 3 = 1 units

Result:- 


Case 1,2,4 have equal productivity as a whole but Case 4 have more individual productivity then and other case. Case 3 is a worst scenario for an organization where employee expects from others to apply effort and get work done.

Understanding and Learning :-


  • Unity in Strength -
       Unity means oneness, or togetherness. When there is oneness there is likely to be more strength in opinion, more strength in action, and more strength in character. This is a very simple and obvious fact that, if one person tries his hands on some job, he will manage much less than what a group effort will achieve.
  • Teamwork -
    Team work is essential in corporates for better output and a better bonding among employees.. In a team , Workload is shared and individuals feel motivated to perform better than his team members
  • Division of work or labour -
     Division of labour represents a qualitative increase in productivity. In a successful organization , work and labour is divided as per economic , technological and physical strength of individual. Such structured division lead to success.





Sunday, July 8, 2012

TEAMWORK : Valley Crossing

Teamwork is the ability to work together towards a common vision. The ability to direct individual accomplishment towards organizational objectives. It is the fuel that allow common people to do uncommon task. In POM class, Our professor Prasad, discussed one of the best example of teamwork i.e valley crossing . He showed us a cartoon image as below:

 Image itself was self explanatory that 3 people are crossing the valley safely with help of a pole. But is it so simple to do? Firstly, there was a constraint before performing the task i.e no more than 3 people should do this . Secondly , there was no description about gap length, distance between 2 people, length of pole ,height of all 3 people,etc. As being an engineer, all these figures and calculations were running in my mind.
Then including me sir called 3 people to take a pole and perform this activity on a plain ground just for understanding.
To perform this activity , task has to be divided in 9 process or stages where 3 people would be in between these 3 stages -  safe , half risky and full risky. So stages were like :-


Step
State of 1st Person
State of 2nd person
State of 3rd person
1.
Safe
Safe
Safe
2.
Half-Risky
Safe
Safe
3.
Full-Risky
Safe
Safe
4.
Half-Risky
Half-Risky
Safe
5.
Safe
Full-Risky
Safe
6.
Safe
Half-Risky
Half-Risky
7.
Safe
Safe
Full-Risky
8.
Safe
Safe
Half-Risky
9.
Safe
Safe
Safe



We 3 some how performed the activity after looking into those 9 steps. But it was just a task to let us understand that how in an organization if any target is required to achieve with limited resources and constraints, then coordination and effectiveness of team is a must. Basic points that i understood with the activity were:

  • Vision - Vision or Goal should be known to every one like in this case , crossing valley safely using a pole was the goal.
  • Team Strategy and roles - When we are working in a group of people or a team , each and every one should be clear with the strategy to follow and also what his/her job is. Some times roles of one person in a team is dependent on others , so it should be clear to every one in prior.
  • Coordination - Coordination is very important as performance totally depend on it. Like in case of crossing the valley , each person should have taken every next step in a synchronized way.
  • Motivation - Moral boosting is very necessary to keep adrenaline flowing through body , which keep energy level high and individual will perform better. Motivation include praising teammates on success, backing up in case of failure and team slogans.
  • Effectiveness - Effectiveness is doing right thing at right time. Performance or result of any activity depends upon effectiveness of a team
  • Communication Teamwork is the backbone of effective communication within a company. When employees work as individuals or independently on projects, they may not readily share knowledge or new information. This lack of communication increases the time it takes to complete projects, tasks or the development of solutions. Teamwork promotes conversation between employees regarding the task at hand, possibly preventing employees from working in opposite directions.

Teamwork is not about getting on well together, though that is part of working as a Team. There is a lovely quotation adapted from Henry Ford that really pinpoints teamwork: 

- Coming together is a beginning

- Working together is progress

- Achieving together is success

Tuesday, July 3, 2012




“Future of Education “ are the first words which came to my mind after seeing video of Khan Academy at youtube. Mr Salman Khan, a graduate of MIT and Harvard Business School, spectacularly presented a futuristic idea of online education. Basically, idea is to prepare video lectures on various topics including display of dashboard and to post it online so that anybody can access those and learn from it. A substitute to classroom teaching.

Khan Academy is a modern educational organization which has a vision to make a single global online classroom where students from every corner of world will learn together. It amazes me that how a simple idea of giving video lecture to a cousin through youtube has become, idea of this decade. Mr Khan’s lectures for his cousin got great response which let him realise that video can be more helpful a student to learn.  Anybody can reachout to it ...you can replay the lecture again and again for deeper understanding ....and even for many homework has become more interactive.

A non-profit organization making its market share more and more with more and more viewers . Its YouTube channel has over 150 million total views, compared to MIT's 38 million. It also has twice as many subscribers, at more than 320,000.

Mr Khan made best use of technology and internet to brought up Khan Academy. Drawings are made with a Wacom tablet and the free natural drawing application SmoothDraw 3, and recorded with screen capture software from Camtasia Studio. Khan's audio narratives are recorded with a Samson C03U USB Multi-Pattern Condenser Microphone with a miniature desk tripod.

What made Khan Academy a huge success is it core idea of understanding each and every individual and delivering accordingly. As its slogan goes "It is our mission to accelerate learning for students of all ages."

All of the site's resources are available to anyone. It doesn't matter if you are a student, teacher, home-schooler, principal, adult returning to the classroom after 20 years, or a friendly alien just trying to get a leg up in earthly biology. The Khan Academy's materials and resources are available to you completely free of charge.

Hatsoff to creator for giving such great social platform of learning. "Providing a high quality education to anyone, anywhere"

Tuesday, June 26, 2012


Theory X, Y

In my first class of principles of management, we studied about a theory – Theory X & Y which really focuses on how different manager have different thinking about management style and then we compared them. I think each individual have experienced about these theories, either as a worker or a manager in a team. Let us first know what theory says.

According to Theory X & Y,
1) Manager can think workers as of 2 types – Lazy one and Good one
     Lazy one has a negative thinking attitude and doesn’t like to work and achieve at all even though they posses good quality. And Good one has positive thinking and always keen to achieve the targets.
2) So Based on their thinking, MANAGERS are of 2 types – X & Y
  X thinks negatively and assumes workers are Lazy one, and Y thinks positively and considers his workers as Good one.
This led to four type of organizational team

Workers
Managers
Working Scenario
1
Lazy
X
It is dangerous for an organization
2
Good
X
It is Most dangerous for an organization
3
Lazy
Y
Organization can do better with this type of team
4
Good
Y
This type of team give best results

Each organization goes around with these 4 types of team. 2nd one is most dangerous because even though team is good in their work, even though they have capability to achieve targets, their manager doesn’t consider them as good. He/she thinks his/her workers as lazy one and thinks that this team cannot achieve success. This negative attitude of manager will create downfall for the team.

To explain situation 3, best example I think of is a cricket match that I played while Inter-branch tournament at college. We were in IT team with our captain as one of my class mate – Gaurav.  Our match was against the best team of the tournament – Mechanical team. My team and I were predetermined that we will go to lose as we are playing against best team but our captain didn’t think so. Our negative attitude affected our performance and we scored very less. Then while bowling, our captain performed in first over and got early breakthrough which motivated our team. Then his continuous praising and performance lifted up teams moral and we won the match. So now situation 3 has been changed to situation 4 as each team player started performing his best and team won the match. Same situation happen many times in our life.

Another best example for manager Y can be mothers and teachers who always motivate their child and student, whatever may be the scenario. So with my personal experiences, I can relate this theory and I can come to a conclusion that being manager Y is best for an organization. In future , I will going to be a manager ,may be of an organization team or may be of my owned firm, and I will always try to think positively and believe in my team.