HISTORY OF PEPSICO COLA

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 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 PepsiCon 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.

PEPSICO COLA IN PAKISTAN

PepsiCo, one of the worlds largest food and beverage companies, has offered its products through independent bottlers in Pakistan for more than 40 years. PepsiCo. Is offering lots of its brands in Pakistan now. Bottled water of AquaFena is one the names which has started in Pakistan along with the PepsiCo Cola, They have also launched ready snacks named KurKure,

PRODUCT INFO.

PEPSI
PepsiCo - the bold, robust, effervescent magic cola

INGREDIENTS
CARBONATED WATER, HIGH FRUCTOSE CORN SYRUP, CARAMEL COLOR, SUGAR, PHOSPHORIC ACID, CAFFEINE, CITRIC ACID, NATURAL FLAVORS

NUTRITION INFO
Serving size 8 fl oz (240 mL)
PER SERVING 8 fl oz % DV* Calories Total Fat (g) Sodium (mg) Total Carbs (g) Sugars (g) Protein (g) Potassium (mg) Phosphorous (mg) 100 0 20 28 28 0 10 36 0 0 1 9

FUNCTIONS OF MANAGEMENT
Planning Controlling Leading Organizing

PLANING
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.

THE VISION STATEMENT

To be a leading house of FMCG products with local dominance, global prominence, the strongest financial fundamentals and maximum efficiency

SHORT TERM PLANS OF PEPSICOCO

SLAES EXECUTION:
The PepsiCo company is giving more stress in its sales execution these days, to enhance their sales related activities. Such short term planning will lead the company towards the high level of prosperity.

CUSTOMER SERVICES:
Customer services orientation is another good aspect of the company, with the customer services no organization can prosper, PepsiCo is working on this issue and trying its level best to make its customer services more attractive and healthy.

Operating Excellance:
The operations in any organziation regarding sales, purchase of raw material, relationships with other parties, banking activities, accounts

related operations are more crucial, so the PepsiCo is well aware of all these things, and is having palns over these issues to make them most appropriate way of doing business.

LONG TERM PLANS OF PEPSICOCO

Health and Wellness:
We recognize there is an obesity crisis in North America and increasingly in other parts of the world. As a food and beverage company, were committed to being part of the solution to addressing this situation. For us, this means offering healthier product choices, making them widely available and marketing them effectively. It also means going beyond our products and addressing the issue of energy balance by encouraging and promoting healthy, active lifestyles.

Diversity and Inclusion:

For decades we have been convinced that building a diverse and inclusive culture is critical to our continued success. We believe we can better serve the broadest customer and consumer base possible by having diverse employees and suppliers. We also recognize that representation alone isnt the sole objective, so we are all committed to fostering an inclusive culture where everyone can contribute at their fullest potential.

Sustainability:
We are actively putting our vision of Making Tomorrow Better Than Today into action by addressing our economic, environmental and social impacts in a very specific, principle-based fashion. Our goal is to grow our profits and people without destroying our natural resources or polluting our planet, and by contributing to society as a good and responsible corporate citizen.

Power of One:
We are working to make the whole of PepsiCo stronger than the sum of its parts. Our Power of One initiative means we will be able to work faster and smarter to meet the needs of our customers, consumers, employees and other stakeholders. It encompasses how we coordinate our activities most effectively and efficiently with retailers and other customers, and technical aspects of our operations such as Business Process Transformation, which will put us all on one technological platform. It also involves a dedicated mindset to work together more seamlessly in everything we do.

GENERAL STRATEGY
The major strategies in PepsiCo are mainly formulated at the top level of management with the involvement of the middle level managers. The planning is basically done individually for different regions keeping in mind their demand. Some of the major strategies include growth and development of market as well as more penetration into the general market, which is growing swiftly. Other

major strategies include meeting the demand of the market and increases sales revenue as well as market share. Another major strategy, which has been implemented, is for continuously improving the product quality and brand image.

ORGANIZING

Levels of Management

C.E.O

Top Level

MIDDLE LEVEL LOWER LEVER Non-Managers (workers)

There are basically three levels of management in PepsiCo. On top of the management pyramid as shown above is the C.E.O. Under the top level managers comes the General Managers (GMs) and Managing Directors (MDs), In the middle level management portion there are the Brand Managers and other Departmental heads Where as under the lower level management portion there are the area or regional supervisors like the Area Sales Manager (ASM) and Regional Sales Manager (RSM). Finally at the bottom of the pyramid is the Non-Management or workers, which include the production staff, distribution staff and others.

HIERARCHY LEVEL

EXPLANATION OF ORGANIZATIONAL STRUCTURE

GENERAL MANAGER:
General Manager is at the top most position in the PepsiCo Company. All the decisions are taken by the general manager

BUSINESS OPERATION MANAGER:

This manager looks after the five basic departments of PepsiCo Company which are as follows 1. marketing 2. production 3. finance 4. accounts 5. transportation

MARKETING DEPARTMENT:
Marketing department looks after all the marketing strategies made in PepsiCo Company

Marketing department looks after the duties performed by the -Marketing Service Manager , -Regional Sales Manager -Sales Manager -Area Sales Manager Marketing Service Manager is also responsible to look after the work of Key Account Manager Signboard Manager

PRODUCTION DEPARTMENT
Production department looks after the production of various products of PepsiCo. Production Manager is responsible to look after the duties of Production Manager Quality control head Quality control manager is responsible for the duties performed by

 Quality control inspector Line in charge

FINANCE DEPARTMENT
Finance department is responsible to look after the affairs related to finance.It look after the duties performed by Assistant finance Accounts manager

ACCOUNTS DEPARTMENT
Accounts department is responsible for true and fair collection of accounts. It looks after the duties performed by Assistant accounts Account head office Assistant head office

TRANSPORTATION DEPARTMENT
Transportation department is responsible for overall transportation of the products produced in PepsiCo Company. It looks after the duties performed by Transport supervisor

DEPARTMENTALIZATION
Every organization will have its own specific way of classifying and grouping jobs, Departmentalization in PepsiCo is basically done on two bases; Functional Departmentalization Geographical Departmentalization

FUNCTIONAL DEPARTMENTALIZATION
On the functional basis PepsiCo is divided into 4 major departments that are: Sales Finance/Accounts Production Brand Management and Marketing PEPSI

Finance & Sales Accounts

Production

Brand Mgt & Marketing

GEOGRAPHICAL DEPARTMENTALIZATION
Geographical departmentalization groups jobs on the basis of geographical locations, such as southern, Midwestern or northwestern regions or may be Asia pacific On the other hand PepsiCo is geographically divided into 4 divisions namely: PEPSICO

North

South

West

CENTRALIZATION
It describes the degree to which the decision making is concentrated at upper level of the organization, if top manager make the organizations key decisions with little or no input from below, then the organization is centralized.

DECENTRALIZATION
In contrast the more that lower-level employees provide the input or actually make decisions the more decentralization there is.

DECISION MAKING STYLES

There are four types of decision making styles which are adopted by the manager when making a particular decision.

1. DIRECTIVE STYLE
A decision making style characterized low tolerance of ambiguity and a rational way of thinking.

2. ANALYTICAL STYLE:
A decision making style characterizes by a high level tolerance for ambiguity and a rational way of thinking.

3. CONCEPTUAL STYLE:
A decision making style characterized by high tolerance of ambiguity and intuitive way of thinking.

4. BEHAVIORAL STYLE:
A decision making style characterized by a low tolerance for ambiguity and an intuitive way of thinking.

DECISION MAKING STYLE ADOPTED BY PEPSICO COMPANY

Directive style is adopted by the PepsiCo Company in making decisions. Because they make their decision at a time and have low tolerance of ambiguity and a rational way of thinking .They take all there decisions in short run. Their decision making style is directive and decision flow is top to bottom. Top level managers and directors order the middle level and front line managers and labor to act upon the rule prescribe by the company directors.

LEADING

Leadership Styles
Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. There are normally three styles of leadership

o o o

Authoritarian or autocratic Participative or democratic Delegative or Free Reign

Leadership Styles Adopted by PepsiCo

The style used by the PepsiCo is AUTHORITARIAN. Where the team leaders tell the employees what they want to be done and how they want it to be done without getting the advice of their followers. The main reason for choosing this style of leadership by the PEPSICOCO is that the leaders have all the information to solve the problem. And they have short time to make decisions.

MOTIVATION OF EMPLOYEES IN PepsiCo

Motivation refers to the process by which a persons efforts are energized, directed and sustained towards attaining goals. The subordinates in the PepsiCo are highly motivated by their team leaders, every employee under each team is given a particular target for the particular period for its performance, ie. Sales And after achieving those targets which were given to them in a particular period. They are rewarded with incentives in different ways, The rewards are given to them by fulfilling their physiological needs ie, food drink shelter. Safety needs like security and protection from physical and emotional and financial harm. Esteem needs like internal esteem factors such as self respect autonomy and achievement and external esteem factors such as status, recognition and attention. These are all the key factors which are adopted by the management and the team leaders to motivate their subordinates and to instigate them for better performance.

HOW LEADERS PUNISH TO SUBORDINATES

The style adopted by the PepsiCo for punishing the subordinates is nothing more than giving them the better opportunities to correct themselves in the weaker areas. There is no punishment in the company of PepsiCo for the subordinates for their poor performance. First of all the leaders diagnose the main cause of the subordinates poor performance. i.e if the main cause is lack of ability, lack of effort, task difficulty or bad luck. And secondly this involves the selection of the corrective action. And the subordinates are provided the utmost opportunities to eliminate that the factors of causing poor performance. The leaders help and guide them instead of giving them punishment over their poor performance.

HOW A LEADER DEVELOP TRUST?

Actually the leadership is the task of culture creation. And the PepsiCo knows the better techniques to create a better culture. The leaders in the PepsiCo create a culture of shared values, vision and trust where people know what to expect and participate in

because its what they want to do. The leaders share their experience with the subordinates in the company and give them ideas to become

Successful in the organization, which leads the subordinates to the element of trust towards their leaders. In this way the relationship of trust is maintained by them in the company.

CONTROLING
CONTROLING OF TEAMS / SUBORDINATES:
Managers in the PepsiCo have a full control over their teams. The subordinates in the company are supposed to follow a code of ethics and supposed to conduct appropriately during their jobs. Subordinates are taught by the previous examples of bad behavior and their consequences. They are provided a better environment for the work and even if there is any mistake, the zero tolerance level is adopted. A sense of responsibility is generated among the team members and no one is allowed to violate the rules made by the company.

PRODUCT CONTROL

SALES DEPARTMENT:
Marketing & Sales department looks after all the marketing and sales strategies in the PepsiCo.

Marketing department looks after the duties performed by the

Marketing Service Manager , Regional Sales Manager Sales Manager Area Sales Manager PRODUCTION DEPARTMENT:
There is separate production department in the PepsiCo that looks after all the production process, from raw material to finish product. The production manager is responsible to look after the duties of Quality Control Head.

QUALITY CONTROL:
Quality control is the basic organizational objective of the PepsiCo. Quality check is made from zero level to final product. For this purpose samples are taken from the production to check the quality. This sampling is done after each an hour or half an hour. These samples are tested according to the PCI standards.

HUMAN RESOURCE DEPARTMENT

RECRUITMENT PROCEDURE AT PepsiCo
Major sources of the potential job candidates are

NEWSPAPER ADDS:

In PepsiCo the Human Resource department of the company uses the newspapers as a mean of their advertisement, in response of

which the applictaions are received and then processed through the HR Department to the concerned department.

EMPLOYEES REFERRALS:
The candidates are also selected on the basis of the employees referrals rahter than on direct applications. Which means that any permenant employee can refer new candidate who is compitant enough and considered fit for the job. But the HR Department does not eliminate any of the recruitment requirements for this candidate which are necessary for the selction.

MANAGERS RECOMMENDATIONS:
After that the managers of the concerned departments take the applications under consideration and then recommend some of the many applicants to get into the recruitment process. The candidates are selected on the basis of

WRITTEN TEST:
Candidates are required to undergo a writen test as per the requirement of the HR Department. And the successful candidates in the test are called for the interview session.

INTERVIEW BY HR MANAGER:
The successful candidates undergo an interview by HR Manager of the PepsiCo. And then from here the candidates are reffered to the next department.

INTERVIEW BY CONCERNED DEPARTMENT HEAD:

Interview by the concerned department head is too much necessary because the new employee is going to perform under the relevant department manager so its a necessary for the candidate to show his/her capacities to the relevant department head and inspire him by his/her capabilities.

FINAL INTERVIEW BY MD/DIRECTOR:

Final interview and then selection is made by the managing director or director of the PepsiCo.

DOWNSIZING:
the downsizing is also done by the HR Department of the PepsiCo. The employees are judged on the basis of their performances and then even the chances of their improvement are not eliminated. And the downsizing is done as a last resort.

TOTAL QUALITY MANAGEMENT

T.Q.M is a management approach for an organization, centered on quality, based on the participation of all its members aiming at long term success through customers satisfaction and benefits to all of its members of the organization and to society
TOTAL: Quality improves everyone and all activities in the company QUALITY: Conformance to requirement requirement) (meeting customers

MANAGEMENT: Quality can and must be managed

How PepsiCo Manage Its Quality (Basic Values)

At PepsiCo four basic values of absolute integrity, enthusiasistic, diligence, continuous improvement, and high quality are at the core of all operations which provide an impelling urge for attaining perfection. Driven by its basic values in pursuit of perfection, PepsiCo is committed to have superior products. And unmatched services through devoted people and consistent development.

In PepsiCo every process is undertaken with the conscious intention of making the product germs less.

QUALITY CONTROL DEPARTMENT:

PepsiCo has a separate quality control department for assuring its unmatched standards. Every aspect of production from simple water to the preparation of carbonated water is monitored under the eyes of quality assurance team, any flaw in formula or compromise to quality and standard is highly discouraged.

QUALITY ASSURANCE:
PepsiCos state of the art Quality Assurance Lab monitors the entire process from the simple water to the ready carbonated water of PEPSICO. The entire process is monitored and regulated to ensure PepsiCo product are wholesome safe and healthy.

CONCLUSION
PepsiCo 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 product. 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.