24 May firm’s performance, internal
Question:
What is going on in the firm and how is it affecting performance of firm?
· “Both companies now sell juice, water, sports drinks and iced coffee. And in many of these categories, Pepsi is winning.”
· “In the last decade, while Pepsi’s has dropped from 10.3% to 8.4%, according to Beverage Digest, a trade publication.”
· http://boston.cbslocal.com/2018/02/23/coca-cola-pepsi-sales-more-popular/
· Pepsi recently got caught in a huge company scandal with a controversial Ad –
· All of this has had a negative effect on Pepsi, and cost the company a lot of $
Use the 7-S framework discussed in class here to explain performance of the firm – specifically, think of the effects of strategy, structure, management systems, leaders and staff, and organizational culture on firm performance. Work with case facts.
· Strategy: the plan devised to maintain and build competitive advantage over the competition.
· Pepsi is selling products other than soda
· Changing the style of the can to “chase millenials”
· Structure: the way the organization is structured and who reports to whom.
· Systems: the daily activities and procedures that staff members engage in to get the job done.
· Shared Values (culture): called “superordinate goals” when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.
· Style: the style of leadership adopted.
· Staff: the employees and their general capabilities.
· Skills: the actual skills and competencies of the employees working for the company.
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