LO2 PepsiCo
PepsiCo is an American multinational food, snack, and beverage corporation headquartered in
Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing,
marketing, and distribution of grain-based snack foods, beverages, and other products.
1. Lean management for PepsiCo.
The goal of lean management is to reduce waste in the manufacturing process. Firms have been
focused on implementing cost-effective operations in addition to providing high-quality products
and services in order to establish a significant competitive edge over the last several years. Lean
management is only possible if a company's management team encourages people to think in a
lean way. All organizational activities that do not contribute to value creation in an organization's
operation should be eliminated, according to the lean thinking approach. The management teams
of a company can determine the intrinsic value of a product or service using lean thinking. By
implementing lean management principles, businesses may get a number of benefits. To begin
with, lean management allows a company's management team to identify waste and eliminate it.
Finally, the company may save costs by reducing overproduction of goods and services and
lowering the cost of the completed product. Pepsi understands the necessity of running at a low
cost, thus it has included the notion of lean management. Conducting ongoing consumer market
research is one of the ways the company achieves lean management. The company has reduced
its operating expenses by creating beverage goods that are in accordance with current market
demand, allowing it to avoid carrying expenses associated with overproduction.
2. Total quality management (TQM).
It’s a continuous process of identifying and minimizing or eliminating production mistakes,
simplifying supply chain management, enhancing customer experience, and ensuring that staff
are trained properly.
Total quality management attempts to hold all parties engaged in the manufacturing process
responsible for the end product's or service's overall quality.
TQM of PepsiCo.
Bottles and cans will be shipped from big distribution hubs to purchasers in bottles and cans.
“PepsiCO’s purpose is to focus on being the world's leading consumer goods business with a
focus on easy meals and beverages,” PepsiCo's philosophy states (Kwan et al, 2019). PesiCo
want to produce financial benefits as investors so they can provide development and enrichment
for their workers, business partners, and the communities where they do business. And they aim
for honesty, fairness, and integrity in everything we do” (Jurevicius 2013). PepsiCo's mission
statement is supported by their goods. Their goal statement emphasizes the importance of
consumers and product features while catering to their preferences. They provide a diverse range
of backgrounds, cultures, and factors to their customers. Consumers, regardless of their
socioeconomic status, purchase items at reasonable costs. PepsiCo manufactures goods that are
easily available in the market plan that they have established and implemented, according to the
remarks (Mirvis & Googins & Kinnicutt, 2010). Statement of Purpose PepsiCo's mission
statement vision of 'Purpose with Performance' was communicated to employees. One of the
aspects emphasized by PepsiCo in its vision description is excellent budgetary execution (Mirvis
& Googins & Kinnicutt, 2010). This is a fundamental goal in the corporate world. Furthermore,
PepsiCo coordinates the business's manageability workouts. Maintainability improves the
company's and brand's image. PepsiCo's vision statement also includes a section on corporate
social responsibility. This element has a significant impact on the hierarchical methods and
techniques of the organization.
