The success of any company is the responsibility of its management. When the management fails on its duties, then the company is destined to fail. That is why the management of any company must be very active in its role. In this session, PepsiCo Incorporated will be the reference. PepsiCo’s management has succeeded in turning its fortunes. There are four core functions that the management of any company performs. These are planning, organizing, leading and, controlling (Koontz, 2011).
Planning is defined as the process of developing the goals and objectives and, the strategy to achieve them. It is the core function of management. In planning, both the internal factors and the external factors are considered. The external factors are uncontrollable whilst the internal ones are controllable. All these factors must be analyzed in depth and, the threats and the weaknesses dealt with. PepsiCo management realized that this function was very significant. They analyzed their strengths and weaknesses and, threats and opportunities. For example, Coca Cola was its main competitor when it came to soft drinks. In 2009, the company decided to invest more in the refreshment market. It emerged as one of the largest suppliers of these drinks. The company did this by analyzing its market and competitor. Its profitability hit the roof. Hence, good planning enabled them achieve this.
The other function of management is organizing. It involves arranging the company’s resources and, objectives in an orderly manner with the sole purpose of making profits. It also entails implementing the course of action that the management deems fit. The divisions and, departments that exist in the organization must be well organized to achieve the company’s objectives. In 2009, PepsiCo bought two of the largest bottlers in North America. It did this by paying 7 billion dollars (PepsiCo Home | PepsiCo.com). How did Pepsi achieve this yet only some years back it was making massive losses? It is because they were organized. They organized their resources well and, purchased what was to bring in more revenue than before. A management that can organize the company well is bound to make that particular company a market leader.
Directing is another function of management. Directing involves the relationship between the management and the staff. Directing involves influencing the behavior of employees to improve their productivity towards achieving the company’s goals (Koontz, 2011). This can be done through establishing a professional relationship with the employees, influencing their performance through gift giving and, many more. PepsiCo management has continually influenced the behavior of its staff by buying them cars and, other gifts to motivate them to perform well (PepsiCo Home | PepsiCo.com). The company went a step further to acquire houses for some of its staff. The staff is responsible for building the image of the company. If the management mistreats its staff, the company will be viewed negatively. They should be encouraged to give a good image of the brand and, work towards the achievement of its goals.
Controlling is the last function of management. Controlling involves setting standards of performance. It also involves evaluation of the achievement of the objectives and, taking corrective measures in case the company needs it (Koontz, 2011). PepsiCo has set a Code of Conduct that clearly defines how employees conduct themselves in a day-to-day basis. It is from this document that managers get the authority to monitor their employees and, confirm if their work engagements lead to the overall performance of the company. Most employees feel that they should be given the freedom to work with minimal supervision. Before establishing the need for control and monitoring, PepsiCo conducted a survey to get the views of their employees. The views were then integrated to come up with an effective control and, monitoring strategy. The employees were then briefed on the need for the controls that were to be adopted. These controls had a meaningful impact on the overall company performance. For instance, PepsiCo launched an initiative dubbed “One Simple Thing”. The control was put in place to check employees’ work-home balance. It enabled employees to strike a balance in their personal and work engagements. The end result was improved productivity from individual employees which led to improved company performance.
Koontz, H., & O'Donnell, C. (2011). Principles of management: An analysis of managerial functions. New York: McGraw-Hill.
PepsiCo Home | PepsiCo.com.(n.d.). Retrieved from http://www.pepsico.com