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Pepsi Overview
PepsiCo, Inc. is one of the most successful consumer products company all over the world which annual income more than $30 billion and has more than 480,000 employees. Pepsi Company incorporated in 1931, known as Loft Inc. After expanding the business company changed its name as PepsiCo, after a merger with Frito-Lay in 1965. This merger set the foundation for the company's tremendous growth. PepsiCo's products soon got goodwill all over the world. Currently, PepsiCo divisions operate in three major US and international businesses: beverages, snack foods, and restaurants. In each of these businesses, PepsiCo has attained respect being the world leader in serving soft drink bottling, the world largest snack chip producer, and the world largest franchised and company operated restaurant system. All the increasing success of Pepsi depends on high quality, performance, strong marketing strategies, competitive advantage, human capital products and business practices. PepsiCo's overall mission is not only to increase the share value of their shareholders' invested capital through sales growth, investments and financial activities but also to improve the quality and value of their products by providing a powerful, safe, economically efficient and a healthy environment for their customers; and by providing a reasonable profit to their shareholders while maintaining the highest standards of integrity. When Pakistan came into existence Pepsi Cola International was already in Pakistani areas. Now Pepsi Cola International has 9 plants working in Pakistan at different locations Lahore, Karachi, Hyderabad, Gujranwala, Faisalabad, Rawalpindi, Meer-pur, Sakhar, Peshawar, and Multan.

History
Pepsi Co international

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PepsiCo traces its origins to 1898 when Caleb Bradham, a pharmacist in New Bern, North Carolina, created a curative drink for Dyspepsia called Pepsi-Cola. Pepsi-Cola, later referred to simply as Pepsi, was a Mixture of Carbonated Water, cane-sugar syrup, and an extract from tropical kola nuts. Pepsi has have enriched history. From its beginnings the people make the story what it is including its inventor, customers, competitors, corporate managers, salesmen, distributors, cartoon spokes-persons and including some of the biggest names in entertainment history. There was good times and bad times including lots and lots of changes with the passage of time. To sell his product, Bradham established the Pepsi-Cola Company in 1903. At this time, bottling was a new innovation in food packaging. In 1931, from the holding company Charles G. Guth of the Loft Candy Company in New York City purchased Pepsi-Cola. Guth had difficulty getting the business going again, but he increased sales by selling larger bottles at an unchanged price. By 1933 Pepsi-Cola was sold by 313 franchised U.S. dealers; bottled in the United States, Cuba, and England; and sold in 83 countries. PepsiCos snack-food business dates from 1932 when ice-cream seller Elmer Doolin of San Antonio, Texas, developed a business idea after eating a package of Mexican-made fried corn chips. He purchased a recipe for the chips and established the Frito Company in 1932. Originally, Doolin produced Fritos corn chips in his mothers kitchen. He later mechanized production and moved operations to Dallas, Texas, in 1933. Around the same time, Herman Lay of Nashville, Tennessee, developed a business distributing potato chips made by an Atlanta manufacturer. In 1938 Lay bought the manufacturing company, Renaming it H. W. Lay & Company. The company prospered, becoming one of the largest producers and distributors of snack foods in the southeastern United States. The company made and sold many snack foods, but its best seller was its brand of potato chips, known as Lays.

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In 1945 the Frito Company gave H. W. Lay & Company exclusive Southeast distribution rights for Fritos corn chips, a market both companies hoped to expand nationwide. After continuing their close business association for over 15 years, the two companies merged in 1961 to become FritoLay, Inc., with headquarters in Texas. Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola, founded PepsiCos beverage business at the turn of the century. Pepsi-Cola also offers a variety of noncarbonated beverages, including Aquafina bottled water. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. , Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 200 countries and territories. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

Pepsi Naubahar
The owner of the company Naubahar is Mr. Muhammad Shamim Khan. Address: S.I.E, Model Town, Gujranwala, Pakistan Pepsi is working in Gujranwala since 1981.Pepsi is working in Gujranwala as a franchise with name of Naubahar Bottling Company Gujranwala (NBC) is a regional based company as a certain areas has been allocated to it under an agreement for its operations. Pepsi has yet introduced 9 brands in Pakistan. Pepsi is working under ISO 9002 standards till for 1998. Naubahar is a largest franchise of Pepsi cola International in Pakistan.

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PepsiCos
responsibility is to continually improve all aspects of the in world To be the world's premierwhich we operate environment, social, economic consumer Products Company creating a better tomorrow than focused on convenient foods today Tomorrow > Today. We and beverages. We seek to believe Sustainability lives at financial produce healthy the intersection of public and rewards to investors as we It interest. corporate for opportunities provide and citizenship encompasses growth and enrichment to our corporate social responsibility, business our employees, which are about doing the right partners and the communities things for society and for the in which we operate, and in business. It encompasses the everything we do, we strive for the health of and Company, which is fairness honesty, about fulfilling our mission of

Pepsi Co Mission & Vision

Mission & Vision

integrity.

creating financial rewards and growth.

Mission statement

Vision Statement

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Major Brands

Pepsi Team Miranda 7Cup Mountain Dew Pepsi Max 7Cup Free Pepsi Twist

Organization Structure
Organizational Hierarchy

Departments

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Shipping Production Sales Marketing & Services Quality Control Finance HR

Human Resource Management

Overview
Human resource is the main power of every company. In NBC employees are working on permanent basis, because of seasonal demand in the market they need more man power thats why they might hire people on daily wages. Here is not very formal system for HRM. Asif Khan is Assistant Manager at NBC HR Department. He looks after the matter of HRM.

Human Resource Management Process:

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Job Analysis
The systematic process of determining the skill, duties and knowledge required for performing specific jobs in an organization. Job analysis is review after one or two years. They review job analysis after 2 or 3 years. Job analysis help in following matters.

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It may be either written or verbal. Example format is given below

Naubahar Bottling Company Gujranwala Position SEMINAR SERIES Title: Salary: Reporting: Subordinates: Specifications:

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Key Tasks:

Summery

Prepared By

Date

Expiry Date

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Job Analysis Methods

Employees record their duties Boss observe their subordinates duties and activities

Strategic and HR Planning

Strategic Planning
The determining of overall organizational purposes and goals and how they are to be achieved.

HR Planning
The process of systematically reviewing human resource requirement to ensure that the required number of employees, with the required skills, are available when and where they are needed. HR Manager every year plan for balance employee demand and supply of employees due to seasonal variation in production and other factors. The following diagram help in recruitment/decruitment.

EXTERNAL

ENVIRONMENT

INTERNAL ENVIRONMENT

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Recruitment Methods Internally & Externally Internal Recruitment Methods:

Following method used: Employees Referrals through employees of NBC Managers Recommendations, Previous record of CVs. Job posting through notes board.

External Recruitment Sources:

These sources used Pepsi Competitors in the labor market The unemployed

External Recruitment Methods:

Following methods used: Advertising New paper ads Organizational Website Online recruiters

Selection

Selection is method of selecting those applicants who are fulfilling job specifications from number of applicants. Set by the organization Selection is not managed by only one authority but it is approved by the different authorities. Setting criteria for selection is better for company and also candidates for selection.

Selection Tests Employment Interviews

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Recruited Candidate

Review of Resumes Selection Tests Employment Interviews Reference & Background Checks Selection Decision

Reference & Background Checks

Selection Decision

New Employee

New Employee

After receiving application and resumes, they review these documents sort out who are best
for us. Then we conduct aptitude test Next is to take interview that is better in test An interview can be one or more than one time by different authorities Pepsi use to take the interview firstly Head of Department Human Resources Director of Company

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All authorities have different criteria set in their mind

Personality Confidence Background Education Experienced Decision making Job and working interest

These are the qualities must have the candidate for selection Selection is also based on the nature of job offering to candidate have. They prefer those persons who have qualification and experience but neglected and reject those who are high qualifies but not such experienced persons.

Problem that effect in selection process

Reference Culture difference Under specifications Before selection of any candidates some other factors must be noticed are, Selection test References checks Back ground investigation Achievement cause of last employment leave Why applicant chose us What is his aim And how he accomplished it etc

These are all the things that any interviewer of examiner can test through different steps f interview and testing psychology These steps include in evaluation about the candidates and management has to take quick decision on it. So far they make a committee that actually always focused on this process

Selection process Test

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For selection there company needs to develop image in the mind of customers. But some multinational that have already matured and treated their image does not need for this. This is happened in NBC. People will prefer it because of their image without any heavy advertisement. They just made an advertisement through media or new people and collect thousands of copies of job applicant that make the selection easy for them. The company name priorities in choosing applicant contain one is attitude of the candidate. If the attitude and other requirements are good then he will be recognized for the selection In record if company the company is settle criteria is best and more beneficial whenever they use for selecting the applicant for Job.

Training and Development

Determining training and development need
Within 3 months after promotion or newly hired employee observed that whether he needs of training program or not. If there is need training then established it.

Establishing training and development objectives?

To provide the different supervisor: Knowledge and value of human resources. The skills to apply them. To improve the attitudes

Training and development methods:

Following methods used in Pepsi: Traditional Training Methods On-The-Job Mentoring And Coaching Classroom Lectures Internships

Technology-Based Training Methods

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SEMINAR SERIES Videotapes Audiotapes Implementing Training and Development:

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It is not enough to prepare good plans, but NBC has to implement properly to make employee more professional. Evaluating Training and Development: Training and development can be evaluated by the following means. Participants opinions Extent of learning Behavioral Change Accomplishment of T & D objectives

Compensation
The total of all rewards provided employees in return for their services. NBCs executive compensation programs are designed to enable it to recruit, retain and motivate a large group of talented and diverse domestic and international executives. This is essential for NBC to achieve its challenging performance objective. NBC's executive compensation mix includes a base salary, annual cash bonus awards, and long-term incentive compensation in the form of performance units. Bonus awards for NBC's CEO and executive officers are paid based on NBC's overall performance.

Various forms of compensation Direct financial compensation

In NBC direct financial compensation method is followed that is pay that a person receives in the form of wages, salary, bonuses, and commissions.

Indirect financial compensation

In NBC this way is also followed that consists of financial rewards that are not included in financial rewards, like social securitys, family and medical leave.

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Nonfinancial compensation
Nonfinancial compensation consists of the satisfaction that a person receives from the job itself or physical environment in which person works.

Factors Determining Compensation

In NBC compensation is determined on the following basis.

Merit Pay
Pay increase given to employees based on their level of performance as indicated in the appraisal. The increase is added to the employees base pay.

Variable pay (Bonus)

The most common type of variable pay for performance is the bonus that is one time reward that is not added to employees base pay.

Skill based pay

A system that compensates employees on the basis of job-related skills and the knowledge that they possess.

Seniority
The length of time that an employee has worked in various capacities with the firm.

Safety and Health of Employees

Hazards: Hazards
Health Hazards
1. Noise of plant may reduce listening power of employees. 2. Bad smell was coming from store due to leakage of bottles can affect smelling power of employees. 3. Dirty washroom system may be harmful for health.

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4. Temperature is not maintained. It means in winter temperature is very cool and in summer very hot temperature for workers. 5. Water leakage from roof during rain and stand on floor may cause for disease Safety Hazards 1. A bottle may burst during filling gas and pieces of glass fly in environment that cause to injure operators. 2. During process of filling bottle operator may injure. 3. During handling bottles worker may suffer injury. 4. There is possibility during washing bottle, water may harmful for hands.

Measures: Measures
There are following measures taken by NBC for safety and health hazards 1. Recently they have purchased latest plant that is noise free. 2. They are training employees how to operate machines and equipments 3. They have provided mask and long shoes to employees for safety purpose 4. They do not force employee to work over his health condition. 5. Annual 28 leaves are allowed to employees. 6. They have provided cafeteria facility. 7. They hired the doctor for first aid, treatment of employees and medical allowance also give to employees. 8. The management also observes necessary precautions for the safety and health hazards.

Recommendations:
1. Install latest and improve the quantity of machines noise free 2. Make sure that bottle should not be leaked so that bad smell will not come 3. Keep clean washroom system 4. Maintain the temperature of working environment 5. Repair the building 6. Use plastic glass around the plant to protect the operator from burst bottle

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HRM Hierarchy

Shipping Department NBC Company has a separate shipping department which consists of very experienced employees. This department ensures the availability of its goods to every place where it is needed. Any irresponsibility done by this department may cause serious damage for company sales. Thats why NBC has made its separate shipping department to ensure its speedy and on time delivery. Shipping is also responsible for proper management of empties and liquid vehicles loading and off-loading i.e. time management is very important in this case. Shipping department is also responsible for delivery of its products to distributors E.g. shop retailers, restaurants and different occasions.

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Shipping

department is also responsible for managing the empties that are

required to be used in production.

Sales and marketing department

NBC is too much focusing on the development of its sales and marketing department which is playing a vital role in increasing its growth, market share and distribution channels. Minimum degree for marketing department is required that is MBA. Through this department, NBC is gaining too much good will in Pakistan. Its employees are very cooperative with others and communicate freely, if any ideas exist to share then they are motivated to share it with top level management. NBC sales and marketing department performs following functions.

This department plans, develops and makes targets for sales. For achieving those targets they make strategies and develop market. They gather data about customers, distributors and other parties needs that help in satisfying their customers. Collection of all the data about each and every distributors/ outlets, about its sale, volume and growth They find the competitors weaknesses to convert them into their strength. They find the new markets where there is great potential. They always keep an eye on competitors functions to prevent them to prevail on them. Sales people keep eye on competitors promotional schemes. After getting information about competitors, sales force share it to marketing manager and marketing share it to HOD and then HOD shares it to Coo who takes final decision that what to do against that specific activity.

Checking all the equipment time by time any removing their complaints. Publicity that performs a major in creating image about products of company is also management by this department.

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This activity is based on research and marketing people usually perform this activity. It is basically checking the each and every shop and gets information that what the shopkeeper is selling and keeping in the shop regarding beverages. This activity is performed in the form of teams. Structure of the teams is as follows:

This department verifies about the publicity operation that includes: Counters Wall Chalking Cabins Carbonated Board Plastic Sign Board Road Boards Simple Boards Pan flex

Finance Department
Finance Department is working with almost 90 employees. Whenever any department needs money for anything then HOD of that specific department gets permission from COO and he after satisfaction signs it and deliver it to finance department to issue money. Cash department and accounts department that comes under the finance department of NBC. Cash department does cash handling (collection and payment). The major part of cash collection is from dealers and salesman based on their settlement sheet and daily sales report. Cash payment is done on the vouchers issued by accounts department. Payments include employee's pay, bills, allowances, procurement expenditures and day to day general expenses Accounts department performs functions like Issuance of purchase vouchers for raw material, plant and machinery and general store items and Check payment of payroll to employees including wages, overtime, bonuses etc. Computerized general ledger system is working and shows the result of each transaction up to balance sheet and income/profit and loss statement. Whenever any department needs money for anything then HOD of that specific department gets permission from COO and he after satisfaction signs it and deliver it to finance department to issue money.

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Production department
NBC has set its norms to not to bear any irresponsibility in production process for the sake of quality. When sales force receive any complain about the quality of product then they never ignore it, instead they convey that complains to Production manager Mr. Amir who transfers that complain to HOD who takes any action while being within department. Production has almost 1200 employees who have been well trained. All the raw material which is used in the production process is approved by the Pepsi cola international. These materials are according to the standards of the PCI. If in any case the material does not match with the standards NBC does return it to the supplier. In this case the entire cost of the material is beard by the supplier. This strong check on the material is because of maintaining the high quality in the products which is the credentials of the Pepsi cola products.

QUALITY CONTROL
The main focus of NBC is on quality control. NBC doesnt compromise about the quality of its products. Because this is their norm to serve healthy and quality product to its customers. Thats why NBC is getting great reputation in market. Quality check is made from zero level to final products. 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. For the purpose of quality control NBC has well constructed and equipped laboratories which ensure the quality of syrups that best fits the health of customers. When NBC decides to launch a new brand in the market then they get permission from PCI which checks the quality of certain brand and after satisfaction PCI allows it to launch its brand in market. The bottle washer cleans and sanitizes returnable bottles that have been brought back to the bottler. Bottles received from market are dirty and full dust and other things. Washing process makes them clean.

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Competitor Analysis
Who are they?

Coca-cola Big Apple

Coca-Cola Strengths
High technology Strong brand name Qualified staff Strong distribution network

Weakness

Big Apple Strengths

High Market Share Good Taste Treat as a main brand Highly qualified employees Individual brand manager Strong Brand Image

Weakness

High Price Major brand are Alcoholic Not Available in Tin pack

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No More Flavor No Advertisement No diversification

SWOT Analysis
Strengths
Strong Brand Image New Taste provider Market Leader High Market Share More Production Capacity Well structure Departments Strong Distribution Network Financial Strengths Huge Storage Capacity Less Turnover Ratio Weekly Meeting With Employees

Weakness
Higher Prices Substitute Products Limited Production (Tin Pack) Bad Infrastructure Bad Internal Environment Not Parking Facilities To Avoid Private Institutes applicant No Comprehensive Training System

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Opportunities
Fast Food Chains To Start Juices Expand more flavors

Threats
Custom duty Imported Brands (New Entrant) Existing competitors ( Coca Cola & Muree Brewery ) Counterfeit Drinks

Metaphors Organization culture

What is organizational culture? Culture is share norms, values, beliefs, thoughts and experience. Culture affects and regulates the way members of the organization think, feel and act within the framework of that organization.

Decision Making PROCESS

There is a norm in NBC that weekly meetings are arranged from top level to lower level managers who present their problems and the valid solutions are selected after the decision. Information comes from the sales force which is at lower level, they can give information E.g. competitors policies, and that information comes first to Manager then HOD and then CEO who has the final authority to take any decision but they mutually communicate their ideas and Coo choose the best one idea. If the production department sets the target that they will fill ten thousand crates and sales people say that there is not as much sale as production department has targeted their

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production. Then lower level management and upper level will sit face to face to share ideas and owner Coo will select the best one option. It is very helpful for our company because it eliminates the communication gap.

Communication Style
NBCs communication system is very strong. They are free to talk with their seniors and can share their views with them. Everyone has the right to give their opinion but these opinions are given in flow from low level management to high level. We can give our suggestions through mail or telephone, which is conveniently available, to top management as well as to any other employee of the company.

Department interaction process

NBCs employees have good relations with other departments employees so that they can share each mater directly but there is a proper way through which they share or resolve the problems. The way is that we will go to our head of department and describe the problem. After that he will communicate to head of the other department and he will communicate to lower employees to resolve the problem. Departments high level management were fully interacted with each others but not the low level management. When production department needs information about the customers needs then they cant directly contact with sales force but they contact with the HOD of marketing department who after getting information from the sales force convey situation to the HOD of production department. Organization as mechanistic/machine: Pepsi NBC has a formal, bureaucratic style structure. The authority and information flow in NBC was based on department vise division. Each department has an HOD to manage the conflicts, assigning tasks and power and politics among people of related department. The flow of information is through mail as well as telephone. NBCs employees have good relations with other departments employees so that they can share each mater directly but there is a proper way through which they share or resolve the problems. The way is that we will go to our head of department and describe the problem. After that he will

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communicate to head of the other department and he will communicate to lower employees to resolve the problem. Departments high level management were fully interacted with each others but not the low level management. When production department needs information about the customers needs then they cant directly contact with sales force but they contact with the HOD of marketing department who after getting information from the sales force convey situation to the HOD of production department.

Organization as organisms: There is a norm in NBC that weekly meetings are arranged from top level to lower level managers who present their problems and the valid solutions are selected after the decision. Information comes from the sales force which is at lower level, they can give information E.g. competitors policies, and that information comes first to Manager then HOD and then COO who has the final authority to take any decision but they mutually communicate their ideas and Coo choose the best one idea. If the production department sets the target that they will fill ten thousand crates and sales people say that there is not as much sale as production department has targeted their production. Then lower level management and upper level will sit face to face to share ideas and owner Coo will select the best one option. It is very helpful for our company because it eliminates the communication gap. Power and Politic In NBC HR, Production and marketing Manager has greater power than other employees. HR Manager has power because he has formal authority of hiring, performance appraisal, promotion and firing employees. Production Manager has power because he has control over whole in time supply especially in summer season. Marketing Manager has power because he can give approval of dealership/agency.

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Above mentioned managers can influence the decision of top management. In NBC employees who have less power, use politic for personal interest by personal relationships.

Comparison
Variables
Environment Stability Standardization Clarity of Jobs Centralization Formal Communication Commitment of Employees

Low Moderate High Explanation

Relatively stable because technological and market conditions are well understood Efficient Production Rough division of job responsibilities according of specialization so that meet contingencies Top management is important Flow of communication: Downward, Horizontal, Upward, or sometime little bit variant rules Commitment to own job but recognizing the need for flexibility in coping contingencies.

Organic
Conclusion

Mechanistic

We have concluded that from above discussion, NBC is mostly related to machine metaphor and less to organic. There are several reasons of it; NBC is only responsible for production and distribution of products of PepsiCo They have freedom of advertisement up to some extent They are responsible to establish network of distribution within assigned territory No need of need of innovation

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Problems
Higher positions are filled from outside, people within the department should be promoted to the chief technician and sales supervisor level. Bad internal environment There is not parking facilities for the loading cars as well as no transport facility for the employees. Noise of plant may reduce listening power of employees There is no comprehensive training system foe the new employees. Due to these new employees feel difficulties in their work at starting. There is the low salary for the employees. Daily allowance has been eliminated Substitute products Limited production (tin pack)

Recommendations

There should be proper training system for the employees to get the better results from employees. There should be proper salary system. Allowances should be given to the employees. There is a large market share of big apple so co should also be focus on Miranda apple to capture the market share. Production of tin pack should be increase. There should be promoted from internal employees instead of hiring from outside the organization.

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Internal environment should be improved, try to eliminate the bad fragments. As Pepsi has a huge are for production and storage of stock but there is no proper parking system for the loading cars as well as visitors or employees.

Try to reduce the noise of the machines for the welfare of the employees.

Appendix
Hierarchy of Departments

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Marketing Derpatment

Finance Derpartment

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Production Department

Quality Control

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Shipping Derpartment

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Sales Derpartment

It Department

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