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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.

Additional information about PepsiCo World Headquarters

PepsiCo, Incorporated (NYSE: PEP) is a global American beverage and

snack company. The company manufactures markets and sells a variety

of carbonated and non-carbonated beverages as well as salty, sweet and

grain-based snacks, and other foods. Besides the Pepsi-Cola brands

(including Mountain Dew), the company manufactures Quaker Oats,

Gatorade, Frito-Lay, SoBe, and Tropicana. In many ways, PepsiCo differs

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from its competitor The Coca-Cola Company, having almost three times

as many employees and larger revenues (See comparison at Yahoo

Finance). The company formed for distribution and bottling is The Pepsi

Bottling Group (NYSE: PBG). PepsiCo is a SIC 2080 (beverage)

company.

PEPSICO IN PAKISTAN

PepsiCo, one of the world’s 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,

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MISSION STATEMENT Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce 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

"PepsiCo's responsibility is to continually improve all aspects of the world in

which we operate - environment, social, economic - creating a better tomorrow

than today."

Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build

shareholder value by making PepsiCo a truly sustainable company

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HR Introduction:

HR department follows the policies by the HR department of PEPSICO. At

PEPSICO, their belief is that "their people are their greatest asset. They take

great pride in acknowledging the contribution each one of them makes". They

focus on People Development and for that they ensure:

Staff PEPSICO with world class Professionals and ensure that the right

systems are in place to encourage them to develop to their full potential.

Create a collaborative and mutually supportive work environment that

encourages people to grow.

Build a team of professionals who deliver expertise by participating in

business decisions.

Develop Performance Management and reward systems underlying our

Business strategy.

HR Objectives:

To look out for the well being of all employees of the company.

Provide leadership and direction to employees of the company.

Career Development planning for all employees of the

company.

Ensure thorough training of nationwide employees.

To provide individual employees with orientation on the company at the

time of joining.

To provide employees with solutions to their problems.

Maintaining data records of all employees of PEPSICO (Human

Resources information System).

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To evaluate and retain those employees who are assets to the company.

HR Policies:

HR Policies are Friendly, conversant, flexible and congruent with

business environment.

Policies are legally compliant with clearly expressed processes for timely

revisions and a framework in place to foster employee adherence.

HR Information System

Development of interactive web-site aligned with all HR sub-functions

to facilitate communication between employee and organization through

dialogue boxes and speedy availability of information.

Enhancing overall perception of HR, as with the help of HRIS the

function of HR is changing direction and heading towards Relationship

Building, in this all the links are being recreated and employees are given

much more weight as compared to past.

HR PLANNING

HR planning’s purpose is to determine what HRM requirements exist for current

& future supplies & demands of workers. The organization ensures that they

have the right number and kinds of people at the right place; this task is

accomplished by regular recruitment and selection, performance evaluation,

Promotions, Regular Training and development programs.

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JOB DESCRIPTION

Company Name: PEPSICO

Job Title: Assistant HR Manager

Job Code: 310-4

Salary: Rs.35000

Reporting Relationships:

Assistant HR manager reports to HR Manager, and then he reports to the HR

Secretary. Then all other HR people get information from the HR secretary.

Job Summary:

Manage the HR activities of the department. Plans and develops the systems

and procedures for recruiting. Supervises staff in accordance with company’s

policies and procedures. Responsible for coaching and training.

Job Duties:

HR manager’s major duties include assisting the HR activities, for instance if

any recruiting procedure needs to be implemented then the HR manager is

responsible for it. HR manager in PEPSICO has to make some plans for

assigning duties to the employees

Recruiting and staffing logistics;

Performance management and improvement tracking systems;

Employee orientation, development, and training logistics and

recordkeeping;

Assisting with employee relations;

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Company-wide committee facilitation and participation;

Company employee communication;

Compensation and benefits administration and recordkeeping;

Employee safety, welfare, wellness, and health reporting; and

Employee services;

Maintaining employee files and the HR filing system;

Assisting with the day-to-day efficient operation of the HR office.

WORKING CONDTIONS:

Working conditions are normal for an office environment. Work may require

occasional weekend and/or evening work.

Performance Standards:

PEPSICO expects from its employee’s specific performance expectations for

each major duty and also expects certain behaviors like friendliness,

helpfulness, courtesy, and punctuality.

Job Specifications:

In PEPSICO the minimum job requirement for a HR Manager is Master degree

in HRM with relevant work experience,

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EMPLOYEE EMPOWERMENT

The company is giving more stress on employee empowerment by giving them

right to participate in decision making speacially those decision which directly

affect the employee themselves.

Also the company gives the subordinates the right to work on the behalf of its

supervisor in absence of him.

LABOUR RELATIONS

The company is paying more attention to strengthen the relationship among

employees by giving them equal opportunities to take advantage of the firm’s

incentives, because no biasness among employees is practiced in the firm

which affects the good relations among employees.

RECRUITMENT

PEPSICO employs through both formal and informal ways of recruitment.

Departments tell their need to HR department. And then recruitment is done on

the requirement by the project. All candidates send their CV’s by post; they are

then short listed and called. So those candidates then report at the PEPSICO

from where they are sent to the Human Resource Department for further

interviews. But recently PEPSICO has devised a new way of recruitment i.e.

Online Applications. They give Ads in leading newspaper and use some other

mass media communication channels and then receive applications and CV’s

online. In this way huge paper work is reduced and recruitment process is

improved in terms of efficiency and convenience with the use of technology.

Sources of Recruitment

PEPSICO uses both Internal and External Recruitment. But the priority is given

to the internal if the employee has the capabilities, required by the management

for working on that post. In Internal recruitment they ask for employee referrals.

Any employee can refer any competent and potential person and if the referred

person comes up to their expectations and hired, then the one who referred is

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rewarded with a bonus. In External environment the company’s corporate

Image matters a lot in a way that not only new candidates are attracted but also

people who became a part of it in past.

Internal Methods

PEPSICO usually prefers “Job Posting” in which employees from with in the

organization are preferred but if the organization feels that the employee is not

competent enough then they go for external methods. Such announcements

are made through bulletin boards, memos and other internal sources.

External Methods

PEPSICO usually prefers advertising through newspapers and their official

website for their recruitment purposes. They give an open invitation to everyone

to apply, so people who are interested come and if they are capable enough

they are hired. They don’t prefer any specific universities or colleges to get the

applicants, what matters are the potential talent and caliber of the person and

his commitment to work. Last year a scheme is started in which a team of HR

professionals visit different colleges and universities to recruit fresh and

passionate candidates.

Strategies for Recruitment

The recruitment process is likewise the same but minutely varies in the

organization depending upon the ranks. In recruitment PEPSICO keeps certain

things in front e.g.

What the person was getting (in terms of salary) prior to PepsiCo’s Job.

Whether the person is polished enough to adjust in their environment.

Whether he or she has the required technical skills or the required

qualification for that specific job.

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In PEPSICO they surely see qualifications but they prefer a person with

required skills, aptitudes, experience and capabilities.

SELECTION

In PEPSICO, selection Criteria is based on numerous factors such as

education, health, background and previous experience.

Selection process

1. The Application

The employment application is candidate’s first chance to present his

qualifications to the Organization. As such, it is extremely critical for his/her

continued participation in the examination process. Before beginning, one has

to review thoroughly what the Job Announcement specifies as the requirements

to qualify for the position. Candidate must meet these criteria to be considered

for the position; ensure that, otherwise candidate will be wasting his effort in

completing the application. Most entries on the form are self-explanatory, but a

few pointers on filling it out may help

2. Written Exams:

Written exams are usually obtained from one of several test construction firms

available to them. These tests are designed to determine level of technical

and/or analytical abilities associated with the particular position for which

candidate had applied. The test which is conducted in PEPSICO selection

purpose is TEST OF COGNITIVE ABLITIES. This test is mostly taken from

fresh graduates. Whereas, some people are selected on the basis of

experience.

3. Performance Exams:

Performance exams test ability to accomplish specific job-related tasks by

providing the opportunity to actually perform them. These tests are scheduled

through the Human Resources Department office, with notification in writing of

the date, time, location and duration of the test. Instructions will be given on the

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tasks to be completed and then asked to complete them. Individuals with

considerable relevant experience will conduct the evaluations. Safety, quality of

work, adaptability, performance under stress, etc. are evaluated.

4. Specialized Testing

Some positions will require specialized testing, such as technical skills, agility

and communication skills etc. These tests are scheduled just as like other tests.

5. The Panel Interview

The results of this component of the exam process will be used to determine if

candidate should be included on the List of Eligible Candidates forwarded to the

hiring authority for consideration for a departmental Selection Interview.

This portion of the examination is normally weighted 100% (or as indicated on

the Job Announcement). Typically, previous test results are used only to qualify

you for participation in the Panel Interview.

The Panel is comprised of qualified individuals, which may or may not be

employees of the City. Normally, the panel will consist of three evaluators.

These individuals will evaluate responses to a variety of job-related questions

over the scheduled time period.

6. The Selection Interview

Once the List of Eligible Candidates is established it is sent to the

Department(s) that is hiring to fill a current vacancy. The Department Head is

responsible for setting up Selection Interviews. He/she may interview anyone

on the list, since all persons referred to the department are qualified. The

Department Head will be looking for the candidate with the best qualifications

for their particular position. The candidate selected to fill the vacancy will

undergo a medical examination, drug screen, background investigation, and a

probationary period before attaining permanent employment status.

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TRAINING & DEVELOPMENT

PEPSICO has trained and developed many of its senior and fast track

managers and supervisors. For lower and technical staff the organization have

a complete training calendar for the year, if organization thinks and feel that an

employee requires training to update his knowledge about the field, he just

have to report the HR department and he will be listed for the next training

program.

On-the-job Training:

As compared to other competitive organizations the training program of

PEPSICO is quite different. It provides full opportunity to its employee to

develop themselves and also train them according to the requirements of their

job. In return they will be greatest asset for their organization. The employee is

being trained in many ways while they are on job.

External sources

These are formal training opportunities that PEPSICO offers to employees

either internally or externally. A trainer, facilitator and/or subject matter expert

are brought into the organization to provide the training session or an employee

are be sent to one of these learning opportunities during work time. These

training opportunities are provided in the form of seminars, classroom training

courses and workshops.

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PERFORMANCE APPRAISAL

The jobs are evaluated on yearly basis under 360o method; the competent

employees are rewarded in shape of promotions, bonus, increments and annual

holidays and promotion. The results of an appraisal can be used to identify

areas for further development of the employee.

The organization also uses different questionnaires, which consist of numerous

questions about the behavior of the employee, and then on the basis of these

answers personality of the employee is judged.

When evaluation is made the unsatisfactory performers are given warning. The

employee after warning is put under observation, for some period of time and if

the employees’ performance is still unsatisfied then are demoted or fired.

COMPENSATION & BENEFITS

Promotion

Promotion is direct shift only to the next level from the current grade, the

employee’s performance is evaluated and if his performance is above average

he is given promotion. PEPSICO promotes only those candidates who are

experienced and eligible for that particular vacancy.

Increments

The company decides at the end of the financial year, according to its financial

condition, whether increments should be given or not.

Free transport

PEPSICO provide free transport to local employee.

Medical facility

PEPSICO provide free medical facility to workers depending upon the

position/rank of the employee.

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House loans:

They give the facility of house loan only to deserving individual. The loan

approval depends upon the post of the employee.

Overtime payment:

Overtime payment is pay for only those workers who are working more than

their working hours mostly overtime payment is given to low level staff.

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SWOT ANALYSIS OF PEPSI IN PAKISTAN

A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and

Threats and is a simple and powerful way to analyze your company's present

marketing situation.

STRENTH

1. Company Image:

It also is a reputable org. and is well known all over the world. Perception of

producing a high quality product.

2. Quality Conscious:

They maintain a high quality as Pepsi Cola International collect sample from its

different production facilities and send them for lab test in Tokyo.

3. Good Relation with Franchise:

Throughout its history it has a good relation with franchisers working in different

areas of the world where they have the production facilities.

4. Production Capacity:

It has the highest production capacity i.e. 60,000 cases per day is not only in

Pakistan but also in South Asia.

5. Market Share:

It has a highest market share i.e. 62% in Pakistan and leading a far step head

from its competitors.

6. Large No. of diversity businesses:

This is also its main strength as it ahs diversity in many businesses such as

i. Pepsi beverages

ii. Pepsi foods

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iii. Pepsi Restaurants.

7. Knowledge:

Our competitors are retailers, pushing boxes. We know systems, networks,

connectivity, programming, all the VARs, and data management.

8. Relationship selling:

We get to know our customers, one by one. Our direct sales force maintains a

relationship.

9. History:

We've been in our town forever. We have loyalty of customers and vendors. We

are local.

10. High Tech Culture:

The whole culture and business operating environment at Pepsi-Cola-West

Asia has quick access to a centralized database an they use computers as

business tools for analysis and quick decision making.

11. Sponsorships:

They mainly use celebrities in their advertising campaigning like Imran Khan,

Wasim Akram, and Waqar Younas etc. Also sponsor social activates programs

like music etc.

WEAKNESS

1. Decline in taste:

During the last years, it was published in Financial post that there has been big

complaints from the customers with regard to the bad taste that they

experienced during the span of six months.

2. Political Franchises:

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Such as in Pakistan, Hamayun Ahkhtar is its franchisee who has a strong

political support from a political party which is in opposition. In; their era in

government less taxes are imposed on them but relation increases as they

come in opposition. So the selection is not appropriate as this thing is harmful

to their image as well as the strategies.

3. Short term Approach:

They have a lack of emphasis on this in their advertising such as currently

when they losses the bid for official drink in the 96 cricket world cup. They

started a campaign in which they highlight the factor such as “nothing official

about it”.

4. Weak Distribution:

They lack behind in catering the rural areas and just concentrating in the urban

areas.

5. Low consumer knowledge:

Unable to maximize local consumer knowledge.

6. Lack of soft drink:

Lack of soft drink “know-how” as a result of diversified business units and

generalist managers

7. Costs

The chain stores have better economics. Their per-unit costs of selling are quite

low. They aren't offering what we offer in terms of knowledgeable selling, but

their cost per square foot and per dollar of sales are much lower.

8. Price and volume

The major stores pushing boxes can afford to sell for less. Their component

costs are less and they have volume buying with the main vendors.

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9. Brand power

Take one look at their full page advertising, in color, in the Sunday paper. We

can't match that. We don't have the national name that flows into national

advertising.

OPPORTUNITIES

1. Increase Population:

As almost in all over the world growth rate is increasing which in turn increases

the demand of products and necessities and especially in Asia the market is

growing at a faster rate as compare to other continents. So they have to attract

new entrants.

2. Changing social trend:

As in all over the world people are rushing towards fast food and beverage

because of life which has become much faster, it provide the company a favor

to capture this fast moving market with its take away product.

3. Diversification:

They may enter in garments business in order to promote their brand mane, by

making sports cloths fro players which represent their name by wearing their

clothes.

4. Distribution of snack foods:

Opportunity to distribute Pepsi snack foods in the future.

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THREATS

1. Imitators:

They also have a problem of imitators as receives complaints from customers

that they find take product in disguised of Pepsi’s product.

2. Government Regulation:

They face problem if government employ taxes on them which force them to

raise the price of their product.

3. Corporation’s shortage problem:

Again this is also a serious threat from it suppliers as if supplier is unhappy with

the company. He may reduce the supply and exploit the company. This action

will surely affect the production process.

4. Non-carbonated substitutes:

Non-carbonated substitutes, such as juices and tea brands are maintaining a

strong foothold in the market.

5. Political instability:

The big threat to Pepsi in Pakistan is Political instability and civil unrest.

6. Threat of labor strikes:

External threat of labor strikes and power outages in Pakistan.

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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. 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.

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