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What is P.M?

Performance management is a process of identifying measuring and developing the performance of

individuals and teams and aligning performance with the strategic goals of the organization.

Many organizations have what is labeled a performance management system. However we must
distinguish between performance management and performance appraisal. A system that involves
employee evaluation once a year without effort to provide feedback and coaching so that performance can
be improved is not a true performance management system.


The major objective of the company is to produce and supply highest quality products,
which confirms to both the national and international quality stands. The company is
committed to provide maximum level of customer satisfaction.


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.”
Overview of the organization;

History of Pepsi Cola

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham,
who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola, possibly
due to the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a
fountain drink that was delicious and would aid in digestion and boost energy. In 1903, Bradham
moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham
sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased
to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to
endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a
race". The advertising theme "Delicious and Healthful" was then used over the next two decades.
In 1926, Pepsi received its first logo redesign since the original design of 1905. In the year 1929,
the logo was changed again .In 1931, at the depth of the Great Depression, the Pepsi-Cola
Company entered bankruptcy - in large part due to financial losses incurred by speculating
on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C.
Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt
again. Pepsi's assets were then purchased by Charles Goth, the President of Loft Inc. Loft
was a candy manufacturer with retail stores that contained soda fountains. He sought to
replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on
syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. During the
Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-
ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed
to five cents, sales increased substantially. With a radio advertising campaign featuring
the jingle "Pepsi-Cola hits the spot / Twelve full ounces, that's a lot / twice as much for a
nickel, too / Pepsi-Cola is the drink for you," arranged in such a way that the jingle never
ends. Pepsi encouraged price-watching consumers to switch, obliquely referring to the
Coca-Cola standard of six ounces per bottle for the price of five cents (a nickel), instead of
the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis, the
campaign succeeded in boosting Pepsi's status. In 1937 500,000,000 bottles of Pepsi were
consumed. From 1936 to 1938, Pepsi-Cola's profits doubled. Pepsi's success under Guth
came while the Loft Candy business was faltering. Since he had initially used Loft's finances
and facilities to establish the new Pepsi success, the near-bankrupt Loft Company sued
Guth for possession of the Pepsi-Cola company. A long legal battle, Guth v. Loft, then
ensued, with the case reaching the Delaware SupreCourt and ultimately ending in a loss
for Guth.

Pepsi Cola 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 there 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 wanted soft drink of Pakistan.

Our Values:

 Passion For Growth:

We seek to bestow 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.

 Uncompromising Principles And Pride In Doing Things The Right Way:

We strive for honesty, accuracy, fairness and integrity in everything we do. The fact lies
in sustainable growth achieved with trust.

 Laser Focus On Results:

This company needs people with an insatiable appetite for accomplishment and results.

 Collaboration Is Critical:
If we are going to win over the long haul, we have to win as a team.

 Inclusion Is More Than A Fairness Issue; It’s A Core Business Imperative:

Our ability to operate effectively in a global marketplace is driven by our inclusive
mindset and practices

 Innovation Driven Growth:

Fresh perspectives and creative solutions that add value will fuel our upward trajectory.

 Operational Excellence:

Nothing can replace a deep understanding of business principles and a commitment

to implementation
Organizational Structure:
Nature of Business:
Pepsi is a FMCGS (Fast Moving Consuming Goods) produced in bulks. Pepsi is
consumed regularly that’s why Plants work continuously 24 hours.

Type of Ownership:
Ownership of Pepsi is franchise in Pakistan, because Mother Company of Pepsi is
located in USA. In Pakistan Pepsi is working as a franchiser. There are seven franchisers
who operate Pepsi Cola in different cities of Pakistan include

1. Riaz Bottler Lahore

2. Pakistan Beverage Karachi
3. Punjab Beverage Faisalabad
4. Naubahar Bottler Gujranwala
5. Haidri Beverages Islamabad
6. Northern Bottlers Peshawar
7. Sakhar Beverages

Linked institution

With 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 where as 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

Competitive analysis
Direct Competitors:

 Primary Competitors:

1. Coca Cola
2. RC Cola
The primary competitors of Pepsi are coca cola and RC cola. These competitors are very
strong and powerful in the market due to their huge market shares and customer
satisfactions. And there is a big challenge for Pepsi to take over the direct competitors.

 Secondary Competitor:

1. Amrat cola
2. Shendy cola

Indirect competitors:

 Juices
 energy drinks
 Tea and coffee
 Mineral water

Prices of Different Bottles

i. Regular bottle = rupees 25

ii. Non Returnable/disposable= rupees 45
iii. Liter Bottle=rupees 70
iv. 1.5 Liter Bottle= rupees 100
v. 2 Liter Bottle= rupees 145


Pepsi Cola offers various discounts to those retailers who have the maximum
sales of Pepsi products on daily, monthly and on seasonal basis. Some of the main
discounts given to the retailers are as follows:

Quality Discount

Following are discounts offered by Pepsi.

 1/10 Discount

For Instance one case of Pepsi is free on buying 10 cases of Pepsi at

one time.

 2/20 Discount
For Instance two cases of Pepsi are free on buying 20 cases of Pepsi
at one time.

 Seasonal Discount

Pepsi also offers seasonal discounts schemes by reducing price in

Ramadan and on Eid. Pepsi also offers trade in allowance for

In Pakistan Pepsi is the most liked soft drink especially by young generation so the
Pepsi cola company has devised such marketing strategy which attracted them. For this
reason they started monitoring the habits of the generation. What they saw was that the
students were crazy about cricket and usually liked to idealize them so in order to increase
their sales the Pepsi cola company paid high amounts of money to the cricketers to act as
their spokes men. Some of the most famous cricketers in the modern era have acted as
spoke persons also film stars have been acting as spoke persons.

The Pepsi cola company has after doing research also has introduced different size
of bottles offered at lower prices so that everyone can afford them. Also Pepsi Company
has introduced other soft drinks including Mountain Dew, Seven Up and Mirinda. Pepsi
company has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi.

Pepsi Cola Company has also become official sponsors of Pakistan cricket and has
sponsored a number of series.

Also Pepsi has donated a lot to the earth quake victims and has launched a number
of prize schemes to attract new customers

As a result of this marketing strategy Pepsi has become the largest seller of soft
drinks in Pakistan and is slowly forming a monopoly in drinks market. Although many soft
drinks like Pepsi have been introduced such as Amrit Cola, RC Cola offered at lower prices
but none of these drinks have been able replace it.

Frequency of the Pepsi ads varies from time to time. When the season is on Pepsi
do heavy advertisement especially in Ramzan days or Eid occasions but this advertisement
not remain consist. We can hardly see the ads of Pepsi now as there is winter season.

1) Economic Effect Analysis

i. Income and Income per Capita

If the income level or per capita income of the people increases, it will have
a positive Effect on the consumption of Pepsi.
ii. Inflation
If the country faces inflationary trend in the market, the price of the Pepsi
will ultimately increase which will lower its demand.
iii. Consumption Behavior
Pakistan is a consumption oriented society. Due to demonstration effect the
people are more inclined towards consumption than saving. So the people of
Pakistan spent heavily on food items. Hence Pepsi has a good market share
in the present circumstances.
iv. Income Distribution
It means how much is in the hands of rich and poor class. In Pakistan 10%
rich people posses 93% of wealth and 90% people posses 7% of wealth. If
there is balanced distribution of income in the country, the consumption of
the people will increase hence increasing the sales of beverages as well.
v. Employment Opportunities
As employment opportunities increase the living standard of the people
increase and the people consume more.
vi. Aggregate Demand
In case of Pepsi, aggregate demand of the product increases in the season of
summer as the hot weather makes the consumers want to drink more.
vii. Aggregate Supply
In summer season to cope up with the increasing demand they have to
increase the aggregate supply of their product.

viii. Economic Policies

Some of the economic policies which can affect the market of Pepsi are
discussed below:
 Fiscal Policy

It is the policy of taxes. If heavy tax is levied on Pepsi then its price
will rise having negative effect on its consumption.

 Monetary Policy
Monetary policy is made to restrict or increase the supply of money
in the market. If policies are made to restrict the flow of money in the market,
inflation can be controlled hence increasing the real income of the people
which will ultimately affect the consumption of Pepsi.

 Price Policy

If price of Pepsi is increased its demand will decrease and vice versa.

 Income Policy

If income of the people will increase their purchasing power will

increase and hence increasing the market share of Pepsi.

2) Political Effect Analysis

i. Political Stability

Whenever the government is considered to be stable, the business will

flourish. If there is political stability in the country the policies and strategies
made by Pepsi can be consistent to be implemented. Foreign companies are
also keen to invest in those countries which are politically stable where they
have no fear of decline in their market share or shut down due to sudden
change of government.

ii. Mixed Economy

In mixed economy government and private sector both plays their role in
developing the economy of the country. Investment by foreign companies
like Pepsi is more likely to flourish in mixed economy.

iii. Laws Formulation

Government has given copy rights to Pepsi so that another company

cannot sell their product by the name of Pepsi. The countries where laws are
formulated, the strategies and activities of the company are different.

3) Technological Factors

i. Research and Development

Through research and development quality of the product can be
improved or better techniques or machinery can be developed which can
increase the production. When technology is advance the supply of the
product increase hence the company experiences growth in their business.

4) Social and Cultural Analysis

i. Psychographic

It is a combination of demographic and psychological factors.

Psychological attributes mean how you perceive things. The company will
focus on the behavior of consumers and make different changes in their
product quantity or quality and in promoting their product so that they can
attract the customers. Keeping in view that the behavior of different
consumers is not alike they have to make their marketing strategies in
accordance with their requirements so that they are convinced to buy the

ii. Social Status

Pepsi is a well renowned brand. People who are brand conscious will
not drink beverages of lesser known brands such as Amrit cola. They will try
to show their status by drinking Pepsi which is known to all as a quality drink.

iii. Media

It is a very important factor for marketing. Media these days is a

very effective way of inspiring people to buy a specific product. A good
promotion can boost up sales to a great extent.

Product Line

Beverages Water Snacks Juices

Pepsi Aquafina Kurkure Tropicana

Teem Cheetos
Mirinda Lays
Mountain Dew
Diet Pepsi

HR Department
Number of employees;
This statistic depicts PepsiCo's number of employees worldwide from 2013 to 2017. As
of December 31, 2017, PepsiCo employed about 263,000 people worldwide. PepsiCo,
Inc. is an U.S. food, snack and beverage company based in Purchase, New York.

Performance Appraisal Tools and Techniques

Rating Scales
One of the most common, and generic, performance appraisal tools is the rating scale,
which rates employee performance in various areas on a sliding scale from poor to
excellent, for example. According to the Archer North & Associates website, the rating
scale generally assesses employee traits like cooperation, communication ability,
initiative, punctuality and technical (work skills) competence. These scales are easy to
use and interpret, but because of their generality, may not always be applicable to every
employee's job duties.
Self-assessments force employees to rate their own performances, in their own words.
This is an important appraisal tool because it demonstrates how the employee's
perception of his or her performance compares to the perception of others. According to
the Success Factors website, self-assessments should require the employee to restate
job objectives, highlight significant achievements, state why the achievements matter,
emphasize when actions or conduct were an important factor in success and
acknowledge challenge.
Forced Distribution method
This is a ranking technique where raters are required to allocate a certain percentage of
rates to certain categories (e.g.: superior, above average, average) or percentiles (eg:
top 10 percent, bottom 20 percent etc). Both the number of categories and percentage
of employees to be allotted to each category are a function of performance appraisal
design and format. The workers of outstanding merit may be placed at top 10 percent of
the scale, the, 40 % outstanding, 20 % fair and 10 % fair.
Performance Appraisal at Pepsi-Cola International
Pepsi-Cola International (PCI), with operations in over 150 countries, has devised a
common performance appraisal system that focuses on motivating managers to achieve
and maintain high standards of performance. Administrative consistency is achieved
through the use of a performance appraisal system of five feedback mechanisms -
instant feedback, coaching, accountability based performance appraisals, development
feedback, and a human resource plan. The common system provides guidelines for
performance appraisal, yet allows for
modification to suit cultural differences. For example, the first step of instant feedback is
based on the principle that any idea about any aspect of the business or about an
individual’s performance is raised appropriately and discussed in a sensitive manner.
The instant feedback message can be delivered in any culture; the important thing is not
how it is done but that it is done. The purpose of instant feedback is
always to improve business performance, not to criticize cultural styles. Using this
system, PCI tries to balance the cultural and administrative imperatives of successful
managing the performance of a diverse workforce.

Degree PepsiCo 360 feedback;

Most organizations that focus on employee development use the 360-degree tool to
assess performance and potential of staff and enable the employees to map their career
path based on the feedback. Organisations take 360-degree feedback about an
employee before taking a major decision about the professional's career.

The results from 360-degree feedback are often used by the person receiving the
feedback to plan training and development. Results are also used by some
organizations in making administrative decisions, such as pay or promotion. When this
is the case, the 360 assessment is for evaluation purposes, and is sometimes called a
"360-degree review."

360 degree feedback is the most comprehensive appraisal where the feedback about
the employees’ performance comes from all the sources that come in contact with the
employee on his job. This method is being used in the (PEPSICO).

Competitive Strategies:

The three generic strategies are:

Cost Leadership.
 Differentiation:
Some time Pepsi have to work on differentiation as they have launch the product as a
different taste with its competitor like coke (which is strong in taste) so the Pepsi work
as a slightly sweetener taste which is more likely to be used by the all age groups.

 Cost Leadership:
As the company earns more and more profit from different territories same as it is
company some time has to bear the losses for some times in order to be the part of
Market, and to maintain the goodwill in the eyes of it customers. Company is bound to
the agreement with government, it’s keeping the price of Pepsi (250ml) at Rs 20, while
according to the high cost of production, and price should be RS.25

 Focus:
Pepsi is targeting many different geographical areas inside and outside cities to
retain its customers and to capture more; this is the reason Pepsi use to launch
different products under one umbrella

 Policy and strategic

It means that you divide the target market in to different groups. Market consists of
buyers and buyers differ in one or more ways. They may differ in wants, resources,
locations and buying practices. Through market segmentation companies divide large,
heterogeneous markets into smaller segments that can be reached more efficiently and
effectively with products and services that match their unique needs.

Segmentation is done on basis of the previously mentioned external factors and the

i. Behavioral Base

It is how people perceive a specific product, in short psychological analysis

of a product. Pepsi all over the world is recognized as a quality drink and
therefore people drink it without any hesitation whenever they are thirsty or
otherwise. So marketers of Pepsi have made it a drink for all people and for
diabetic people they introduced diet Pepsi.
ii. Cognitive Base

It pushes and pulls the consumer. If the outlook of Pepsi bottle is desirable and it attracts
the consumer, he will buy it even if he isn’t thirsty

Decision Making (Centralized vs. Decentralized):

 All the decisions taken by the top level management but management also involve
the managers of all departments and employee of the company. The procedure of
decision making in Pepsi cola is decentralized. Everybody knows about the mission
and everybody gets involve in the every decision regarding the company’s affairs. That
creates the motivation and empowerment in the employees and through this
company gets effective and efficient results.
 Company’s all revenues and profits are also visible to everyone in company. As well as
all the strategies made on the top level management also known by the employees
and everyone take part in decision making that helps a lot in innovation.

Conclusion & Recommendations

After a brief analysis of Pepsi By using different tools and techniques we have come to know that Pepsi
international is very organized and successful in the world in terms of strategies and their implementation
plans. Pepsi international has a vast range of products as compared to Pepsi Pakistan.

Pepsi has enough resources and finance to enhance the product line aggressively in Pakistan as well. But in-
stable economic, political and security conditions is Pakistan are a big hurdle in making bigger investments
in Pakistan.

To overcome these problems government of Pakistan should take some initiatives to boost up the industrial

Another internal factor which is an obstacle to enhancement of the business is high operating cost of
production which makes company bound to minimize its profit margin.

 Train local employees instead of foreigners to work in production Department
 Update TQM Standards for betterment of Continuous Processes
 Improve Packing
10. Are managers providing good feedback throughout the year
as well as during formal review meetings?

In the Suzuki motors the managers are providing good feedback and also
communicate the performance objectives.
Performance management – including goal setting, performance planning, performance monitoring,
feedback and coaching – should be an ongoing and continuous process, not a once or twice-yearly
event. Feedback that is delivered when it is most relevant enhances learning and provides the
opportunity to make any adjustments needed to meet objectives. The attitude towards ongoing
feedback is also crucial. If there is organizational support for building constructive feedback into the
fabric of day-to-day interactions, then the environment will encourage development and drive goal-
directed performance improvement.

11. Are both managers and individuals preparing properly for
performance review meetings?
Performance review is the process of measuring an employee’s performance in the
current position. Many terms are used for this process, including evaluation, appraisal,
and assessment, and usage varies depending on policy and/or contract language.

The performance review summarizes the employee's contributions over the

entire review period. While policy and contract state that an employee should be
assessed at least once a year, it is strongly suggested that employees receive some
form of review on a more frequent basis. It may occur as often as you believe is
necessary to acknowledge the employee for accomplishments and to plan together for
improved performance.

12. How well are managers conducting such meetings, with

particular reference to culture, structure, encouragement, and facing to
Prepare the review document, including as much information as possible -

1. job description
2. professional development over the review period
3. performance standards and objectives
4. previous assessment
5. letters of commendation and/or criticism
6. input provided by key clients and colleagues
7. samples of work
8. records of disciplinary action

Consider the question: “What can I do to help the employee do the job better and achieve
developmental goals?”

13. How effective has performance management been in motivating
More and more, organizations are linking performance to compensation. This link, however, cannot
effectively be established without the existence of sound performance management processes that
are seen as fair and equitable.
Clear documentation of progress against performance expectations also allows proper recognition
for a job well done. This can be provided a number of ways, i.e. formal recognition events, informal
public recognition or privately delivered feedback.
It is important also to note the benefits of a consistent pay-for-performance process across the
organization. A consistent process creates a sense of fairness and significantly increases job
satisfaction. Employees need to know that if an individual in one department is identified as a top
performer and compensated accordingly, then an employee performing at the same level in another
department will receive similar rewards

14. How effective has performance management been in developing
skills and capabilities?
The employee and manager should discuss how the employee’s capabilities have developed
through working on key tasks, achieving career goals and undertaking professional
development. By focusing on the employee’s skills and capability level, the employee and
manager identify the employee’s strengths as well as areas for further improvement.
15. How well have managers and team leaders carried out their role
as coach, counsellor and mentor?
The managers and team leaders are experienced. They help their worker
to achieve their objective by continuous improvement in their skills and
also their development. They help them in understanding the work
activities and perform the different tasks to compete their job.