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Question
Task:
Students will be grouped into groups of 5 maximum in week 1 of the semester. Each group is required to select an organisation or network of organisations which has recently (in the past 3 years) conducted, or is in the process of conducting, organisational change. Describe and critically analyse the change, drawing upon relevant research relating to the organisation, industry and change management literature. The paper needs to be informed by a minimum of 6 academic sources i.e. academic textbooks and/or academic journal articles. In addition, other sources can be used such as the official website of the organisation, ABS data or other statistical information, media excerpts etc. Interviews of staff members can enrich your case study greatly.
The report should cover:
- The background to the change management initiative
- The key pressures/arguments influencing the organisational change
- The use, if any, of relevant change management models or diagnostic processes
- A chronological account of how the organisational change unfolded over time, including the roles played by key parties inside and outside the organisation
- An evaluation of the change.
- A reference list must be included at the end of the paper using the Harvard UTS style.
All papers must be submitted with the group assignment cover sheet provided on UTS Online signed by each group member. Each group must submit the paper in 2 ways: A paper copy to the lecturer in class and an e-copy via Turnitin on UTS Online. Late assignments will incur a penalty of 10% per work day.
Solution
PepsiCo has changed their organisational structure several times over the years to address the changing global market. Currently, the organisation structural change was aimed at developing leadership in the market and target further global expansion. Innovation for PepsiCo is more of benefitting the top line of the organisation.
Globally, PepsiCo is growing approx 3-4% per annum, thus to sustain even a flat graph of growth, the company needs to generate gross revenue of $5 billion. One needs to keep in mind that some of the products of the company lose the market footprints every year, and the company needs to account for those through innovation of new products (Safian 2017).
The consumer market is drastically changing over the years with customers demanding new and better things for them and their family. However, one also needs to keep in mind that the consumer will not clearly state what they want, and it lies on the company to understand the market conditions and innovate accordingly and present themselves in front of the consumers. PepsiCo is doing just that; only they are doing it globally (Thompson 2017).
The recently announced sustainable growth agenda for PepsiCo has goals for the year 2025, which are based on three pillars. The first pillar is proposed towards the well-being and improved health of the consumers. Over the years, everybody knows that PepsiCo is a company with sugary drinks and salty snacks. Thus to break over the mindset of consumers and propose their products as healthy alternatives might not be an easy task. Thus the company proposes 'better-for-you' products in the form of diet versions and baked versions of the same products that the consumers are familiar with. For eg. Doritos is being presented as Baked Doritos, Lays is being presented as Baked Lays, Pepsi is being presented as Diet Pepsi and so on. However, PepsiCo also has a separate division, which is the 'good-for-you' segment with Oats and Juices. The company, in order to promote their healthy products, need to keep the price reasonable and taste good (Kell 2017).
The second pillar for their goal is Protecting the Planet. It involves conservation of water and technology-induced ways of effectively conserving water and helping the farmers in the process. The company is using modern technology to reduce wastage of natural resources so as to minimise the impact on the environment. They are also passing on their technology to the farmers so they can protect their crops and conserve water at the same time. The company is also trying to find out ways to make the whole community develop positivity towards water conservation.
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