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."
• Pepsi recently got caught in a huge company scandal with a controversial Ad -
o 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.
o Pepsi is selling products other than soda
o 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.