The paper "Implementation of Strategy Change by Pepsi Co" is a perfect example of a case study on category. The successful implementation of strategic change is complex, but an academic theory can enable an organization to enact change successfully. Critically discuss, using examples. Strategic Change involves many stakeholders who are directly and indirectly impacted by the change process. Before making any changes, the best strategy is to consider the effects of this strategy change and are resources that are readily available to deal if something unusual comes into the scene.
Three main factors are to be considered whenever a strategic change is to be introduced, and that is Situational awareness, Supporting structure, Impacted Groups. Considering the real-time example of Pepsi Co, when an Enterprise Resource Planning was to be implemented at Pepsi Co, a multinational brand, it has to consider certain factors before bringing any strategic change. 2) If you don't show evidence of knowledge of strategic management theory you will fail. If an organization is about to implement a strategic change, then the whole process is to be carried out that involves the strategic position of the organization, any options, and choices available to that organization and if that strategic activity is introduced, then how might it affect the organization.
Strategic changes are not easy to implement, instead, it involves huge amount of research studies and cost. Taking on with the Pepsi Co case, when the ERP was to be implemented, the management was made aware of this through discussion and were advised to study its impact and how it will benefit all the users, even the users were given the tasks to evaluate, if this happened how will they be affected.
This devolving of decision-making powers reflects the success of Multinational brands. 3) How can strategic management theory explain or resolve this problem? Strategic Management is a complete process and if it is followed the way it is to be followed, i.e. it assesses its surrounding environments, its people, resources, stakeholders and what choices are available to them, and if a plan is brought to reality, how it effective it has been. Pepsi Co by doing following the processes explained by the Strategic Management Process was able to tackle every hurdle it faces at a different stage of its ERP project implementation.
What is so good is that Pepsi Co used a proactive approach rather than reactive, and always have a Plan B if something went unusual. Pepsi Co has to construe all stakeholders that are impacted by this strategic decision. 4) What are the possible answers? Considering the case of Pepsi co International, ERP implementation was a strategic decision of the whole group, and not only it was to be implemented at Head Quarter only rather it was to include all branches in different countries having their own cultures.
So for this strategic change, the strategic management knew the situational surroundings as what are groups that will be affected such as suppliers, employees, customers, and government entities. For bringing such a change, has the Team structure and Sponsor Coalition is intact and if something goes wrong, how will it be able to manage this. The last thing is Strategic analysis, which involves the risk assessment, resistances and any tactics available to Cope with up with surging risks and resistances.
5) What do you select as the most appropriate? The most appropriate considering the Pepsi Co case is that all users and impacted groups should be taken into confidence before bringing such a change. 6) Who are the key authors? The key management personnel of Pepsi Group is the key authors who are driving this strategic change. This might be Directors of the Pepsi Co international who has been backed by the Board’ s decision and shareholder assent. 7) The balance between breadth and depth Here the Breadth strategy is to be given more part as Pepsi Co is dealing with multiple sets of needs.
Depth strategy is requisite in this case irrespective of the concentration on the other choice. However, the balance is to be maintained to keep the change process smooth lined and avoid any unwanted circumstances at a critical level of the change process.