Human Resource Management Case Study: Pepsico India
Name: Rajat Arora
Enrollment No: A1823215011
Program: BBA+MBA (IB) DUAL
Section-B
Case Study
Case Code: CLHR001
Case Length:
Period: 2014-2015
Publication Date: 2015
Subject: Human resource management
Organization: PepsiCo.
Countries: India
Abstract:
PepsiCo India was facing a major attrition problem with the senior executives. It was believed that the executives were exiting the company as they were unable to reconcile with its power “Power of one “(POI) strategy. The strategy was about merging the beverages wing with the foods division. It was aimed at leveraging the synergetic benefits of selling food and beverages together since consumers tended to buy beverages and snacks together. Five senior executives of PepsiCo India resigned
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In practice , performance with the purpose means providing a wide range of foods and beverages from treats to healthy eats; finding innovative ways to minimize our impact on the environment and reduce our operating costs; providing a safe and inclusive workplace for our employees globally; and respecting supporting and investing in the local communities where we operate.
“Power of One” Strategy:
In the beverages business analysts felt that Pepsi had lost momentum to coke and to bottled waters and fruit juices in 2005. In the snacks sections, consumers were putting a lot pressure on pricing. Frito-Lays sales growth fell from 11 percent in 2000 to 7 percent in 2001 to only 5 percent in 2002.
The power of one –Ensures coordination across the food and beverage operating systems , while also unlocking opportunities to create value across the business – from sales , marketing and distribution to back – office operations. The new group will also focus on creating opportunities in complementary food and beverages products in ways that are attractive to retailers and consumers.
“The Combination of their snacks and beverages portfolios creates significant value for our shareholders through synergies driven by a common customer base and distribution platform, supplier leverage and shared
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