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Posted on Mar 21, 2019

What are the Operational Management Issues Associated with PepsiCo? Write a paper in which you need to address the following: An Explanation of the Processes

What are the “Operational Management Issues Associated with PepsiCo”? Write a paper in which you need to address the following:

An Explanation of the Processes to be considered in the PepsiCo, Inc. and the Process Map

A brief description of Relevant Operations Theories

A Comparison of the Theory with the Process in PepsiCo, Inc.

Consideration of How Potential Changes Would Improve Quality and Customer Requirements

The proposed Recommendation to PepsiCo, Inc to deal with its operational issues

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Introduction Operation management is a critical part of an organization since it deals with operation processes hence for daily maintenance as well as management of organizations resources and processes It is mainly based on work distribution Operation management is usually found in all areas of business such as inservice provisioning procurement production enterprise resource management or backoffice administration Stevenson 2012 Operation management plays a critical role in the successful running of a given project Operation management has many benefits Operation management is mandatory for an organization to manage its daytoday activities seamlessly With its support a business can utilize well its resources such as money raw material labor and other resources Besides operation management plays a vital role in enhancing overall productivity Stevenson 2012 Operation management focuses on utilizing the existing resources in the best way possible to attain set goals to enhance overall productivity It is the heart of every organization since it controls the whole operation Operation management also deals with issues such as operation maintenance and design of the system employed for the production of products The operation management theory was introduced in the eighteenth century and new theories about the concept were put forward to be used in the various organization during the industrial revolution These new concepts and ideas resulted in the creation of many companies and industries and each of these organizations adopted at least one of the operation management theories to enhance their production The various subtheories and methods created as a component of operation management include assembly line WalthamLowell system One of the organization with a global brand name in terms of quality and taste PepsiCo due problem in its operation management suffered massive loses Currently PepsiCo is the second largest player in the world food and beverage industry About the Company 2019 PepsicoCo Inc engages manufacturing marketing distribution as well as sales of snacks foods and beverages It is a food and beverage company with complementary brands portfolios such as PepsiCola Tropicana Quaker Gatorade and FritoLay About the Company 2019 The company was established in 1965 by Herman W Lay and Donald M Kendall and its headquarter is in Purchase NY About the Company 2019 PepsiCo has grown to become a global number one brand and this is due to its unique marketing methods and strategic planning It implies that for the company to continue performing excellently in the global market operation management department must always be alert and committed to realizing the companys goals Unfortunately the operation department of Pepsi at some point blundered and they failed to monitor effectively some of its product line more particularly the Cadbury products In 2003 one of the leading voluntary agencies in India the Center for Science and Environment accused Pepsi of manufacturing soft drinks with an unacceptable level of pesticide in India Centre for Science and Environment New Delhi India 2004 This news turned viral and this destroyed the company brand name This form of negligence by the PepsiCo management India branch caused the company to suffer substantial financial losses as well losing a considerable number of consumers and the brand reputation was negatively affected Chhetri Islam 2008 Based on the success of the company the news shocked many and some of the competitive companies as well as other organization used the incident to reevaluate and restructure their operation management systems to avoid such incidents as well as penetrate the world market An Explanation of the Processes to be considered in the PepsiCo Inc and the Process Map The allegation that PepsiCo soft drinks contained a higher level of pesticide than required caused a public uproar with many protest experience in India The state banned Pepsi products from being sold and the sales dropped by nearly 40 Chhetri Islam 2008 The products that had been distributed were recalled and those in stock were ordered to be destroyed The incident casts doubt in the existing operation management techniques that were employed by PepsiCo The episode also acted as a wakeup call for the company to reevaluate its existing operation management strategies and process ... blur-text-image