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PepsiCo Organizational Culture

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    This report aimed at understanding the Organizational Culture of the Pepsi Company. Organizational culture refers to a system of shared values, morals, and beliefs that regulate people’s behavior in an organization. Organizational culture has a strong grip on how people behave in the organization. 
    PepsiCo, Inc. is one of the world's largest food and beverage companies, with products sold in more than 200 countries and territories. The company was formed in 1965 by the merger of Pepsi-Cola Company and Frito-Lay, Inc., two American companies that produced soft drinks and snacks, respectively. PepsiCo's headquarters are located in Purchase, New York, USA. Some of the company's most popular brands include Pepsi, Frito-Lay, Tropicana, Gatorade, and Quaker Oats.
    The company’s organizational culture clearly shows that it is hugely committed to making the best use of its human resources. Organizational culture refers to an organization’s customs, values, and ethics that guide the organization. Pepsi encourages its employees to work towards successful results. PepsiCo, a global leader in the food-and-beverage industry, ranking second in revenue and market share, relies on its talented and diverse workforce to gain success, which constantly strives to improve its performance and deliver value to customers and stakeholders. PepsiCo fosters a high-performance culture that encourages innovation, collaboration, and excellence across all its functions and regions.
    The company’s organizational culture is a key factor in achieving its strategic goals by leveraging the talents of its employees. The company fosters a culture that promotes innovation, collaboration, diversity and inclusion, and social responsibility. PepsiCo's culture also supports its vision and mission to create more smiles with every sip and every bite.

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    PepsiCo Organizational Culture Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand how PepsiCo fosters a culture of innovation, collaboration, and diversity, and how these contribute to its competitive advantage and social responsibility.
    • Understand how PepsiCo aligns its organizational culture with its vision, mission, and strategic goals
    • Evaluate how PepsiCo adapts its organizational culture to changing external and internal environments

     

    1.0 INTRODUCTION


    The Pepsi Company is one of the largest food and beverage companies in the world. The company has numerous iconic brands namely; Pepsi, Lay's, Doritos, Quaker, Gatorade, and Tropicana. Its products are enjoyed and appreciated by more than one billion consumers in more than 200 countries and territories around the world. The company employed about 315,000 people around the world. The company has been able to develop because of its numerous products and services which highly differentiate it from its competitors but also its unique culture has enabled it to stand out from its competitors. 

    This essay is going to discuss the Organizational Culture of the Pepsi Company. 

    The company’s organizational culture largely fosters a well-functioning environment that inspires creativity, diversity, and inclusion. It authorizes its employees to take possession of their work, to pursue their passions, and to grow their careers. PepsiCo also invests in its employees' well-being, development, and recognition. The company also supports its employees' learning and growth through various programs, such as PepsiCo University, which offers online and classroom courses on various topics; PepsiCo Leadership Academy, which develops the skills and capabilities of current and future leaders; and PepsiCo Awards, which celebrate the achievements and contributions of outstanding employees.

    PepsiCo's organizational culture encourages collaboration and improvement across its businesses and functions. The Company fosters a culture of innovation by embracing new ideas, technologies, and business models that can enhance its products, processes, and practices. The company also engages with external partners, such as universities, start-ups, NGOs, and governments, to co-create solutions that can address the challenges and opportunities in the food and beverage industry.

    PepsiCo's organizational culture is aligned with its purpose to create positive impacts for people and the planet. The company integrates sustainability into its business strategy and operations and strives to deliver long-term value for its stakeholders. PepsiCo's organizational culture supports its sustainability agenda by inspiring its employees to act as responsible citizens and stewards of the environment. The company also engages with its stakeholders to understand their needs and expectations, and to collaborate on initiatives that can advance the social and environmental goals of the company and society.

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