1. Evaluate key elements of the selected production or service organization’s operational efficiency with its operational strategy. Determine three (3) tasks that do not align with the operational strategy. Determine the weaknesses that are evident in each task.
PepsiCo, Inc. operates as a food and beverage company worldwide. Through its operations, authorized bottlers, contract manufacturers and other partners, the company makes, markets, sells, and distributes various foods and beverages, serving customers and consumers in approximately 200 countries and territories. The company also owns Frito-Lay company and Quaker Oats. It has bottling and distribution facilities in Asia, North …show more content…
2. Formulate a new operations strategy for the selected organization based on the four (4) competitive priorities (i.e., cost, quality, time, and flexibility).
PepsiCo has operations in more than 200 countries to minimize transportation costs and thereby reduce cost to the consumer. However, they have many competitors and their main competitor, as it has been for almost a century, is Coca-Cola, and Coke-Cola owns the North American beverage market. To meet the competition PepsiCo’s pricing strategy is to increase its advertising touting the quality of the brand and reduce the work force (My Business Tricks 2013). It can continue to enhance the flexibility of its just-in-time process to facilitate cost reductions through ensuring the communities in which their overseas plants are located has passable roads, and the buildings are structurally sound. Time is a critical factor in getting products to market, especially when the competition is relentless, and more competitors are continuously emerging. A company cannot afford to not have its product on the grocery shelves if it expects to remain competitive and in business.
Another flexible strategy would be to reduce its overdependence on Wal-Mart, which provides 13% of PepsiCo’s revenue (PepsiCo SWOT Analysis 2013). Given this scenario, Wal-Mart virtually controls the prices PepsiCo charges. If they are