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Explain what is organizational culture as it would apply to  PepsiCo?

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yacel0762 | (Level 1) Valedictorian

Posted February 18, 2013 at 5:11 AM via web

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Explain what is organizational culture as it would apply to  PepsiCo?

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Michelle Ossa | College Teacher | (Level 3) Educator Emeritus

Posted February 18, 2013 at 10:06 PM (Answer #1)

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Organizational culture refers to the unique atmosphere, tone, personality, and character of an organization. It is a product of the organization mission, vision, purpose, and goals. It is also a reflection of the philosophical mantra that the senior leaders bestow upon the organization as they see it playing a role within the community.

A super-corporation such as PepsiCo. not only plays a role within the community, but also in our country, as well as in the rest of the world. Hence, Pepsi Co. needs to market itself with a very specific trademark that is inclusive, universal, and approachable. Its organizational culture must reflect what the company stands for, believes in, and hopes to accomplish.

PepsiCo explains its organizational culture through the following indicators:

  1. vision - "Creating a better tomorrow than today". "To focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value"
  2. mission- Pepsi wants to be the preferred provider of quality products to attain a financial stability that will benefit its shareholders, which are also consumers of the product.
  3. purpose and performance- Maximum financial gain to "drive shareholder value"
  4. values- respecting others, full inclusion, embracing diversity, speaking the truth, sell worthy products, and care for the customer.
  5. philosophy-sustained growth through empowering the people
  6. leadership chain as a "family"- PepsiCo. foods and drinks serves America, and Pepsi drinks serve Asia, the Middle East, Africa and Europe.

When analyzed, the indicators show that PepsiCo does believe in selling a quality product. However, it is interesting that they place tremendous importance in top financial revenue as a way to demonstrate the success of their product. This, they claim, is to assure the shareholders that the company is and will remain in good standing. This is not greed, but a necessary statement to make to current and potential shareholders and investors who have to make crucial investment choices in today's shaky economy.

PepsiCo. does believe in giving back to the community through "empowering people". This is also a way to strengthen the individuals who work collectively for the corporation and thus will help increase productivity. PepsiCo. also takes the environment, the community, and worthy causes into consideration when giving back.

In all, PepsiCo displays traits that are traditional of a long-standing corporation that has felt the consequences of an unstable economy. As a historically-recognized corporation, they have already established a loyal following. Therefore, PepsiCo. now needs to focus on what truly matters in today's society: a trustworthy company to invest money in. Pepsi wants to show how palpable gains will result in giving back to both shareholders and the community as a whole. As a cultural icon, Pepsi wants to assure consumers that they are part of the Pepsi family and that Pepsi will keep the customers' best interests as their number one priority.

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