Strategic Plan: Pepsiamericas

Strategic Plan

MBA580

University of Phoenix

1. Executive Summary

PepsiAmericas (PAS) needed to analyze the forces and trends that could impact the company in the next three to five years. The leadership team opted to benchmark companies or other industries to identify any opportunities or threats and this investigation reveals the results. The human resources department at PepsiAmericas is trying to figure out a plan to increase the number of diverse employees in management. The decision was made to create a strategic plan that could improve the recruiting process for attracting more diverse candidates. In order to change the current process, the company conducted research on alternatives for increasing the diversity in management. The leadership used environmental scanning, SWOT analysis, Matched pair analysis, and grand strategy cluster matrixes to develop a strategic plan.

The challenges currently facing PepsiAmericas are minor setbacks when focusing on the projected benefits. Those challenges are a lack of diverse recruiting guidelines, no uniform recruiting for diversity, minimal retention initiatives, and no inclusive employment advertising. The opportunities that exist are increasing diverse recruiting by at least 20 percent by 2009, installing uniform recruiting processes by 2008, retaining 80 percent of diverse workforce, increase inclusive advertising by 40 percent by 2010, and continued high sales and increasing the earnings per share by 2010. PAS will win by following the examples set by its parent company, PepsiCo. PepsiCo has received high recognition from its diversity programs and PepsiAmericas is ready to follow the leader and increase the competitive advantage in the bottling industry. The total investment for the next three years is $436,700 and the associated benefits are limitless. The increase of net sales and income and the innovative ideas from a diverse management team will be well worth the investment.

2. Company Background

PepsiAmericas, Inc. is the second largest PepsiCo bottler, which serves more than 122 million customers. The company makes, sells, and distributes Pepsi brand beverages in the United States, Central and Eastern Europe, and the Caribbean and accounts for nineteen percent of PepsiCo’s volume. PAS has been around for seven years and wants its management hierarchy to reflect the same diversity of its market. The company currently employs 20,700 people worldwide with 12,200 in the U.S. and it is looking to increase the number of managers with various backgrounds, traits, and cultures.

3. Vision Statement

Our vision is to drive shareholder value by being our customers’ best direct supplier of exciting beverage and fun food brands.

How we'll do it:

• Deliver an expanding portfolio of dynamic brands

• Partner with our customers in growth channels

• Consistent and superior execution

• A customer-focused and cost-effective supply chain

Now that the company has experienced seven successful years, it is now looking to adjust and upgrade its diversity and inclusion efforts. The updated version of the vision for 2008 incorporated more diversity in the upper management levels. The following statement was added to promote the inclusion and diversity strategies in all management positions.

• Implement various programs to encourage inclusion and diversity in all aspects of the organization.

4. Mission Statement

PepsiAmericas is in the business of producing, selling, and distributing over 100 brands of carbonated and non-carbonated beverages across the U. S. and Internationally. And always... we achieve our vision with engaged and capable employees who operate within our culture of accountability, integrity, respect, teamwork and passion.

5. Values Statement

The cultures of accountability, integrity, respect, teamwork, and passion are the values of the organization. “They are the heart of how we run our business. They guide our actions and serve as the framework for the decisions and contributions our employees make at every level of the company. More than just a list of “feel good” buzzwords, our values define the character of PepsiAmericas. They reflect how we relate to each other and to all of our customers” (www.pepsiamericas.com).

The company can attain its grand strategy of market development by continuing to instill these values in the shareholders, stakeholders, customers, and employees. The behaviors of passion, integrity, accountability, respect, and teamwork are necessary to drive the “buy-in” of this strategic plan. The values are used at all levels from the hourly employees to the Board of Directors and they are taken very seriously at PepsiAmericas. Passion shows how committed everyone is to working for or with the company for a positive long-lasting future. Integrity describes how the company has and plans to continue handling its business relationships. Accountability requires everyone to be responsible for their own decisions, actions, and do what right. PAS enforces that everyone is treated with the utmost respect and the company is expecting that it will receive the same from the external environment. Last is the teamwork value, teamwork is important because the company understands that it cannot be successful without help.

6. Long Term Objectives

Some objectives would be to offer tuition reimbursement for the labor workers, use current recruiting technology to advertise management positions in diverse publications, offer scholarships and internships with local universities, offer more entry level positions that could lead to management roles, and to increase the earnings per share by 50 cents by 2010. These objectives were created by researching PepsiAmericas’ parent company, PepsiCo. Table 1 shows what the company’s goals are to achieve its long-term objectives by 2010. The goals are to increase diverse recruitment by 20 percent in 2009, maintain 80 percent retention rate of diverse employees in 2008, advertise positions in inclusive publications and websites by 40 percent by 2010, and to increase its earnings per