Multinational company management (1)

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MULTINATIONAL COMPANY MANAGEMENT

Group 9

Topic: Overview about PepsiCo and its business in Vietnam

LOGOMEMBERS OF GROUP 9:

Ngô Thị Thanh Tâm1

Nguyễn Thị Thảo4

Vũ Thị Thanh3

Khổng Thị Thu10Nguyễn Thị Thu Thảo5

Nguyễn Tịnh Tâm8

Đỗ Thị Thanh2

Vũ Thị Thơm9

Phùng Thị Thảo6

Trần Thị Thảo7

LOGOCONTENTS

II.Business in Vietnam

A. General environment

B. Strategies in Vietnam

C. Human resource management

III. Conclusion

I. General view about Pepsi.Co

LOGOGENERAL VIEW ABOUT PEPSI.COPepsiCo is an America multinational company

headquartered in Purchase, New York, United States. PepsiCo was formed in 1965.

It leads in convenient snacks, foods and beverages with revenues of more than 60$ billion and over 285000 employees from almost over the world.

LOGOGENERAL VIEW ABOUT PEPSI.CO

PepsiCo is comprised of PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, PepsiCo Middle East, Asia and Africa.

LOGOGENERAL VIEW ABOUT PEPSI.CO

Pepsi main product: drinks ( soft drinks and juices), snack, instant food,

Pepsi main brands name: Pepsi for soft drinks, Frito Lay for potato chip and other snack, Tropicana for fruit juices, Quaker for instant and other food, Gatorade for sport drink.

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Company Name

GENERAL VIEW ABOUT PEPSI.CO

PepsiCo Vietnam is a branch of PepsiCo Asia,Middle East and Africa

Main headquarter in Vietnam: 5th floor, Sheraton building, 88 Dongkhoi , Hochiminh city

Branch office in Hanoi: number 1 Phuong mai , Dong Da, Hanoi.

LOGOGENERAL ENVIRONMENT

Natural environment

The economic environment

The political – legal

environment

Technological environment

Cultural and social environment

General environment

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Company Name

THE ECONOMIC ENVIRONMENT

Good economic growth rate push up production The steady economic will create the favorable

environment for enterprises High inflation: The CPI in 12/2010 increased up toto

12%business activities would not be predict easily cause of the changing of input price

LOGOTHE ECONOMIC ENVIRONMENT High banking interest: make it difficult in accessing with

loans from banks The economic infrastructure and transportation system: is

upgraded, innovated synchronic. PepsiCo needs to cooperate and take this advantage to

build good distribution channels.

LOGOTHE POLITICAL – LEGAL ENVIRONMENT

Viet Nam has stable security and politic which create a safe environment for enterprises

Equality in business market creates good conditions for Viet Nam Pepsi co’s steady development.

LOGOCULTURAL AND SOCIAL ENVIRONMENT Soft drink market in Viet Nam is the potential market for

both domestic and oversea exploration. The changing in the way Vietnamese select soft drink

special the young. Vietnamese still have tea culture The fast food development market: Pepsico cooperated to

supply fast food service and accompage soft drink accompagner

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www.themegallery.com Company Name

TECHNOLOGICAL ENVIRONMENT

Scientific- Technology environment for PepsiCo in Vietnam:

- Does not have to pay costs for technological transference.

- Has the most advanced technologies

- Has to concern over training human resources in the country effectively

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NATURAL ENVIRONMENT Vietnam is characterized by a monsoon tropical climate

which is hot, humid and rainy but differentiate in different regions

The difference: generating the richness and diversity of demand and consumer tastes.

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NATURAL ENVIRONMENT

Environmental pollution: is also getting more and more attention of society PepsiCo need a special attention to the environmental factors.

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Three level strategies

Corporate level strategy: Vertical integration PepsiCo is comprised of PepsiCo Americas Beverages, PepsiCo

Americas Foods, PepsiCo Europe, PepsiCo Middle East, Asia and Africa.

Business level strategy:PepsiCo had a cautious research and knew

Vietnamese economy and politics in order to compete local manufacturers. In the 1990s, local economy was underdeveloped Pepsi launched great discount promotion, attracted

Vietnamese’s attention Their strategies focused on Vietnamese consumption trend which is interested in cheap goods and discount products

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Good functional level strategy

Pepsi expanded their distribution network to the North and obtained many market share from Coca cola by distributing their products to coffee shops, restaurants or stores.

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Good functional level strategy Patriotism, national pride and the love of sports

launched many events that related : held “ football festival” through a TV show, launched the slogan

With good managers and marketing staffs who are well – informed about the Vietnam soft drink market and Vietnamese demand

Always made good marketing strategies, attractive and unique commercial films

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Three level strategy

Took full advantage of Vietnam conditions to entered successfully into Vietnam soft drink market and gain huge market share in our country.

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Entry strategy model

PepsiCo entered our country through entry strategies are join venture, M&A and subsidiary

In 1994, PepsiCo teamed up with International Beverages Company to manufacture and distribute Pepsi-Cola and 7Up products in Vietnam

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Entry strategy

At the same time, PepsiCo's Foods and Beverages merged impact on both strategy, operating principles of PepsiCo Vietnam

Pepsi Vietnam has quickly adopted the new strategy, expanding its business functions and portfolios to manufacture and distribute both Foods and Beverages (F&B) in Vietnam

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Entry stratey PepsiCo Vietnam has successfully in: - Operating in compliance with its corporation's

world-class standard and the local regulations as well.

- Sustaining its market leadership position driven by impressive growth significantly surpassing that of the F&B industry

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C. Human resources management At PepsiCo Vietnam, HR supports & develops their

most important asset. HR process begins with staffing the Organization Then following by building Organization

Capability

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1. Recruitment

PEPSI Vietnam employs through both formal and informal ways of recruitment.

Recently, a new way of recruitment: Online Applications

Recruitment process is improved in terms of efficiency and convenience with the use of technology

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Sources of Recruitment

PEPSICO uses both Internal and External Recruitment.

But the priority is given to the internal if the employee has the capabilities, required by the management for working on that post.

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Recruitment MethodsInternal

“Job Posting”: employees of organization are preferred but if the organization feels that the employee is not competent enough then they go for external methods.

Such announcements are made through bulletin boards, memos and other internal sources.

External

Prefers advertising through newspapers and their official website for their recruitment purposes.

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Selection process

1. The Application2. Written Exams3. Performance Exams4. Specialized Testing5. The Panel Interview 6. The Selection Interview

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2. Training and development

Trained and developed many seniors and fast track managers and supervisors.

Provide full opportunity to employee to develop themselves & train them as the requirements of their job.

Provide the training session in the form of seminars, classroom training courses and workshops.

Pepsi Vietnam often organize Pepsi management trainee program to recruit and train potential candidates.

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-Respect workforce.

- Dawn Hudson, President and CEO of Pepsi-Cola North America states, “building a diverse workforce is not just a ‘nice to do’- there is a clear and obvious business imperative” - Diversity and inclusion are seen as catalysts to innovation and growth.

Management policies

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Commitment to diversity is echoed on the PepsiCo website:

“We view diversity as a key to our future… Offering a workplace where diversity is valued helps us build the top-quality workforce so crucial to our success -- by enabling us to attract and retain great people from a wide spectrum of backgrounds.”

Management policies

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- PepsiCo makes an extra effort to retain its diverse workforce by measuring inclusion efforts. - Continue to recruit and retain those outside the traditional umbrella of diversity – beyond women and minorities- Organizational Health Surveys and Pulse Surveys allows all employees to voice any concerns they may have.

Management policies

LOGOPerformance appraisalJob evaluation: yearly, basis under 360o

method Competent employees: rewarded by

promotions, bonus, increments and annual holidays

Using different questionnaires to judge employees’ personalities

Overtime payment: is pay for workers who are working more than their working hours mostly overtime payment is given to low level staff.

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