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Organizational Development Issues and Integration of the Functional Strategies of Pepsi Co

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Pepsi Co has adopted different flavors across the world. While going into the international market, the focus is on adopting local tastes. With the changing environment of the global market where the customers focus on better healthy lifestyle Pepsi Co has come up with the new slogan of “ Better for you” “ Good for you” . Pepsi Co has increased the ratio of employing local employees as an international HR strategy. By imposing this kind of strategy Pepsi Co has been able to show themselves as a part of the domestic body. After 2008, Pepsi Co focused more on developing countries like China, India, Mexico, and Russia.

They offer a wide variety of products in the developed US market. They have now expanded their product categories in the outside market also. As per the new customer expectation, Pepsi has introduced low calorie and low saturated fat products in other countries. Brazil and China in this sense can be a greater opportunity for Pepsi. After 2008, the potentials shown in the market are as follows: Threats: The increased awareness for the healthy, fat-free sugar-free items has reduced the consumption of carbonated drink sales.

The negative impacts of government regulations as discussed earlier are a threat to the organization. The intense competition in the global market by competitors like Coca Cola, Nestle, and Kraft Foods is also a threat to the organization. In 2008, a strike took place in India and for that, a shut down continued for nearly one month (Henry. 2008, p. 34) In a nutshell, after the restructuration of Pepsi Co, they focused on snacks and beverages. It started the acquisition strategies and realignment to increase the profit of Pepsi Co. The actual analysis of the strategic management situation after 2008 has been shown by the diagram above.

There were five dimensions in the strategic management issues and every dimension was discussed briefly above.     The product diversification of the company under consideration happened in the healthy snacks items where they used natural oils as ingredients. They did research on a new recipe and a new flavor for more customer attraction.    

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