Introduction to PepsiCo and its Operations

The project is undertaken for the company PepsiCo. The complete analysis of PepsiCo is done on the basis of their operations as well as performance. The report is helpful in providing the overview of the company along with their different operations. The theoretical concepts are defined and provided in the report in number of sub-sections. The report helps in depicting the entrepreneurial intensity as well as climate corporate entrepreneurship. Entrepreneurial intensity can be described as the degree as well as the amount of entrepreneurship evidenced which is present in a given firm. On the other hand, the climate corporate entrepreneurship can be stated to be related to the environment of the firm which is conducive for entrepreneurial activities (Bayarçelik & Öz?ahin, 2014). The report will present a brief overview of the Pepsi Company and its operations which will then be followed by the discussion on the related theoretical concepts. The latter half of the report discusses the research approach along with the analysis of the data.

PepsiCo is one of the American multinational beverage, snack, and food corporation. The headquarters of PepsiCo are located in New York. The company has the interests in manufacturing, marketing of grain-based beverage, foods, snacks as well as other products, and distribution of products. In the year of 1965, the company’s named was formed as PepsiCo with the emergence of Pepsi-Cola company as well as Frito-Lay. However, in the year of 2012, on the date of 26 January, the total of 22 brands of PepsiCo generated the retail sales of more than the price of $1 billion apiece. The products of the company are distributed in more than two hundred countries in the world which is beneficial in increasing the revenue of annual net $43.3 billion. Hence, PepsiCo is one of the second largest food and beverage business firm in the world (Scheepers, Hough and Bloom, 2013).  

The report introduces to the concepts of the Corporate Entrepreneurial Health along with the overview of the company. This report is based on the PepsiCo which is an American multinational food, beverage, and snake corporation headquartered in Purchase, New York. The research approach of the paper is the qualitative research method in which secondary data is collected from various sources and then analyzed against a set parameter.  In the paper, Entrepreneurial orientation is explored as an organizational level variable. Entrepreneurial Intensity is used for capturing both the amount as well as the degree of entrepreneurship evidenced within an organization. The levels of the Entrepreneurship are associated with the measures of the performance of the company significantly.

Theoretical Concepts of Corporate Entrepreneurship

The Degree of entrepreneurship is represented below:

The Entrepreneurship Intensity is the function is the degree as well as frequency of the entrepreneurship innovations where the frequency of entrepreneurship refers to the number of times a company acts as entrepreneurially.  The entrepreneurship intensity of a company tends to have a direct impact on the performance of the company. According to, the EI can be regarded as a technical field between the conservative attitude of the government and the concept of entrepreneurial spirit on the other. The degree which can be used to define the degree of opportunity identification which exists at a workplace and the exploitation. This aspect allows the company to evaluate the different prospective business opportunities which then goes a long way in achieving the sustainable growth.

(Heilbrunn, 2008) argues that the entrepreneurial climate is requisite for an entrepreneurial orientation and various factors that influences the entrepreneurial intensity are also explored.  Along with this, some methods are also used for measuring the entrepreneurial intensity within the community context for determining the entrepreneurial intensity over a period of ten years. The factors influencing the Entrepreneurial intensity are also detected.  There are certain organizational factors which are established by the communities for establishing the unit of analysis and the theoretical framework is located within the field of the corporate entrepreneurship (Dess, Lumpkin & Covin, 1997). The factors which are responsible for influencing the entrepreneurial intensity are organizational features, organizational resources.  It needs to be noted that the primary factor of corporate entrepreneurship is to encourage the entrepreneurial activities in an organization whereby innovation prospers. The Climate for Corporate Entrepreneurship can be considered to a critical aspect of the organizational context.  The CCE acts as an amalgamation of various policies which are developed by the top management and motivates the spirit of the different individuals.to perform well.

The main objective of the research is to highlight the entrepreneurial intensity and the climate for the corporate entrepreneurship initiative within the brand, Pepsi.

In order to gather relevant data as well as information for the purpose, an extensive research based on the different theories of the concept of corporate entrepreneurship will be discussed so that the entrepreneurial health of the Pepsi can be effectively understood. These aspects related to EI as well as CEC have been examined and applied in relation to the organization. The given methods or approaches have been used:

• Self-Reported

This means that the website of Pepsi as well as the CSR reports and other annual reports have been utilized to understand the environment of the firm, Pepsi. These help in gaining a comprehensive insight into the strategies of the firm at large.

• External Sources

Research Approach and Data Analysis

Other external sources like newspapers as well as scholarly articles will be reviewed along with the various concepts related go corporate entrepreneurship. In addition to this, various websites like Glassdoor and other related review websites will be used so that the entrepreneurial climate within the firm can be assessed.

In order to collect the data for the research, number of secondary resources are used such as the financial year report, annual year report and the CSR reports of the company. the secondary data resources are helpful in gathering the real time of the company with respect to their relative operations that are responsible for enhancing the overall performance and the market growth of the company. from the annual report of the company, the data is collected in the form of external environment on which the company operates. The increasing trends, as well as technological innovations that are particularly developed in the nations, is one of the main challenges to the company. The nations like Australia and US are highly active in order to conduct the digital disruption (Pepsico, 2018).

The technology has rapidly growing, and the company also deploy the automated technological solutions for making the effective supply chain operations. The production machines in the company are highly efficient that can fill 1200 bottles per minutes. Therefore, the technological environment is one of the main factors in which performance of the company relies. The data is also collected in the form of labor environment that defines that the laws related to labor can also affects the overall growth of PepsiCo (Cengage, Kuratko & O’Connor, 2015). PepsiCo is the company that deploy its manufacturing industries across the world. The different nations can also pose the natural resources that may affect the business of PepsiCo.

From the CSR report of the organization, it is collected that the customers distributed across the world have the different perceptions that change the consumption demands. The increasing health consciousness of the different drinking products can also affect the business growth of the company. the entrepreneurial orientation has main five dimensions that are followed in the PepsiCo. entrepreneurial firm of PepsiCo is engaged with the product market innovation that also undertakes some risky ventures in which the first comes the proactive innovation. The data is collected from the number of secondary resources and can be analyzed with the use of subjective analysis (PepsiCo, 2018). The main area which is evaluated in the research include the five main dimensions of entrepreneurial orientation of the company. The main five dimensions of entrepreneurial orientation on the basis of which the overall performance and the operation of the company can be analyzed are of management support, autonomy, reinforcement, availability of time and organizational boundaries.

Factors Influencing Entrepreneurial Intensity

The factors which influences the entrepreneurial intensity of the PepsiCo. includes the organizational features. It is analyzed that there are two dimensions which might be used for determining to form an Entrepreneurial Grid which helps in describing the population of business. The results reveal that the internal organizational factor encourages as well as flourishes the corporate entrepreneurship and provide the opportunity to the organizations for initiating the entrepreneurial behavior (Heilbrunn, 2008). The entrepreneurial orientation can be constituted only after entrepreneurial culture that helps in supporting the entrepreneurial climate. It is analyzed that all the dimensions of the entrepreneurial behavior are crucial although the climate which is perceived by the employees is much more important. The organizational factors which are analyzed that affects the entrepreneurial climate includes the Reward systems, management support, resource availability, risk-taking, and supportive organizational structure.

It is analyzed that the first dimension is the management support for idea development which refers to the willingness of the managers of the PepsiCo to facilitate as well as promote the entrepreneurial projects in the firm. The second dimension is the Management support for risky projects which represents the willingness of the managers of PepsiCo to take risks as well as show tolerance for failures in the firm (Covin & Miles, 1999). The third dimension which is analyzed is the Autonomy which means that willingness and the ability of the employees of the PepsiCo to be self-directed in the pursuit of opportunities. The results reveal that high level of entrepreneurial activity takes place from the autonomous leaders (CSR – PepsiCo ,2018).  On the other hand, the higher employee involvement in decision-making process maximizes their performance. The fourth dimension which is analyzed is the Reward which enhances the motivation of the entrepreneurs for engaging in innovative behavior.

PepsiCo has designed the reward systems based on the clear feedback, goals, reward based on results and individual influence. Each individual has different goals, therefore, due to this, the employees of the PepsiCo are motivated by different things (Scheepers, Hough and Bloom, 2013). The entrepreneurs are motivated by the controllable rewards like bonus, share, profit, pay or equity in the PepsiCo, job security, expenses, promotions, autonomy, job responsibilities, private or public recognition, money for research trips to conferences.

Time availability is the last dimension which is analyzed in context of PepsiCo where the individuals requires time for creating the innovative as well as new ideas, therefore PepsiCo seeks to moderate the workload of the employees and avoid the time constraints on job tasks. The time constraints are required to be avoided in order to allow the employees to work with others on long-term problem-solving. Moreover, it is analyzed that the time availability is crucial as other organizational factors for implementing the entrepreneurial climate.

Dimensions of Entrepreneurial Orientation

The relationship between the momentary perceived progress is examined along with the intensity of the entrepreneurial efforts among the early stage entrepreneurs based in the business incubators. The perceived progress variability is also examined over time predicted entrepreneurial effort intensity (A, 2012). Moreover, the it is also analyzed that whether this link is moderated by the venture goal commitment. Experience sampling data is gathered from approximately one hundred entrepreneurs at early stage which indicated that the perceived progress predicted offers more effort intensity. Along with this, the perceived progress predicts the entrepreneurial effort intensity negatively over time where this negative relationship is attenuated by the venture goal commitment. It is analyzed that the methods are being investigated by exporters to gain more profit where some studies on the entrepreneurial orientations provides the manager’s attitude to take make risky strategies like strategies towards the exports. It is analyzed that the entrepreneurial orientation is a managerial attitude which helps in enhancing the exports when the managers also make some efforts in the organizational learning as well as innovation (Atkinson & Ezell, 2012). The results reveal that being entrepreneurially oriented might be considered as important but it might not be sufficient to increase the export performance if the company not able to innovate and learn. Bayarçelik and Öz?ahin (2014), describes that the entrepreneurship is the main feature of economic growth of any country and it can also be fostered by inculcating the skills of entrepreneurship right at the educational stage. The results reveal that students who are exposed to the activities of the Entrepreneurship Development Cell are higher significantly on innovation as compared to the other students.

Conclusion 

From the above report and data collection and analysis, it is concluded that there are five dimensions of entrepreneurial orientation on the basis of which the overall performance and the operation of the company can be analyzed. These factors are management support, autonomy, reinforcement, availability of time and organizational boundaries. Along with this, it is concluded that the main operations and components included in the company which are responsible for their better performance mainly include technological environment, economic environment, competitive environment, resource environment, and labor and customer environment. With respect to the corporate entrepreneurial health of Pepsi, it can be stated that Pepsi can be described as a moderately innovative brand in the industry   and that it takes various strategic moves to ensure the long term success of the organization. The firm acts to customer demands and for this reason, the sales have been rising. Moreover, as it has enabled transparency in the value chain, latest innovations have been at a rise. Moreover, Pepsi has created a suitable environment for its employees whereby they are allowed to work independently and the organizational structure has also been aligned accordingly. Hence, it can be stated that Pepsi has created an appropriate environment for the entrepreneurial activities to make it a market leader.

References 

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