McKinsey 7S Framework of PepsiCo 

PepsiCo is a soft drink, food, and snacks-producing US Multinational Corporation. Caleb Bradham invented the drink in 1893 and established the company in 1898. Today, we’ll discuss the McKinsey 7S framework of PepsiCo as 7S framework in strategic and change management; strategy, structure, system, staff, skill, style, and shared values as McKinsey 7S model with Example Company.

Products and Services of PepsiCo

  • Mountain Dew
  • Potato Cripes
  • Walkers
  • Pepsi
  • Aquafina Bottled Water
  • Tropicana Beverages
  • Tostitos
  • Gatorade
  • Quaker snacks and food
  • Cheetos
  • Mirinda
  • Doritos Tortilla Chips
  • Mist Twist
  • Lay’s Potato Chips
  • Frito Corn Chips
  • Potato Chips
  • Ruffles
  • 7ups

Statistical facts and figures of PepsiCo

  • Pepsi’s annual revenue was 86.392 billion USD in 2022
  • Out of which, the net income of the soft drink company was 8.910 billion USD
  • Employed Approximately 315,000 employees
  • PepsiCo’s net worth was 92.2 billion USD

Subsidiaries of PepsiCo

  • Tropicana
  • Tropicana Farmstand
  • Tropicana Twister
  • Twisties (Oceania Region)
  • Vesely Molochnik
  • Simba (Southern Africa)
  • Smartfood
  • Smith’s (Australia)
  • Snack a Jacks
  • Sodastream
  • SoBe
  • Quaker Chewy
  • Rice-A-Roni
  • Rockstar (drink)
  • Rold Gold
  • Rosquinhas Mabel (Bra
  • Marias Gamesa
  • Matutano (Spain, Portugal)
  • Marbo Product (Serbia)
  • Mirinda
  • Miss Vickie’s
  • Mountain Dew
  • Izze
  • Ivi (Albania, Greece, Cyprus, Serbia)
  • Kas
  • Khrus Team (Russia)
  • Kurkure (Bangladesh, India, Pakistan)

Top competitors of PepsiCo

  • Monster Beverage
  • Coca Cola
  • General Mills
  • Nestle
  • Conagra Brand
  • Unilever
  • Kraft Foods
  • Campbell Soup Company
  • Kellogg
  • Link Snacks
  • Red Bull

McKinsey 7S framework of PepsiCo would analyze the elements of 7S framework in strategic management and change management; strategy, structure, system, staff, skill, styles, and shared values. Here’s the PepsiCo McKinsey 7S model with Example Company as follows;

McKinsey 7S Framework of PepsiCo

Let’s discuss the McKinsey 7S framework of PepsiCo as 7S framework in strategic management or McKinsey 7S model with Example Company; they’re as follows;

Strategy of PepsiCo

I-Integrated Strategic Approach

For business growth, PepsiCo implements integrated strategies comprising of following approaches;

  • Creative marketing and branding campaigns
  • Promoting the concept of one PepsiCo
  • Developing organizational culture
  • Penetrating the emerging markets
  • Developing strategic alliances and partnerships at the international level
  • Business growth through merger and acquisition

II-Portfolio Diversification

If we study PepsiCo’s soft drink consumption rate, then it has declined significantly for the past few years. It would continue to decrease in the upcoming years due to healthy diet trends. In order to deal with the issue, PepsiCo successfully diversified its portfolio into snacks and food items to decrease the company’s reliance on carbonated soft drinks.

III-Awards & Recognition

PepsiCo has achieved various customer and performance awards and recognitions; which shows the effectiveness of the company’s business strategies. Some of the main awards that PepsiCo received are as follows;

  • Food and Beverage supplier of the year from Walmart
  • Supplier of the year from Target
  • Think Customer Awards from CVS
  • Vendor of the Year from Dollar General
  • Innovative Supplier of the Year from 7-Eleven

Structure of PepsiCo

I-Divisions

PepsiCo has segmented the organizational structure into different divisions based on geographical regions. Every regional division has the position of CEO and they directly report to the CEO of the PepsiCo brand. Some of the main business divisions of PepsiCo are as follows;

  • North America Beverages
  • Europe and Sub-Saharan Africa
  • Asia, Middle East, and North America
  • Latin America
  • Quaker Foods North America
  • Frito-Lay North America

System of PepsiCo

I-Multiple System

In order to manage and deal with daily routine operations, PepsiCo implements different types of systems. Some of the main systems of PepsiCo are as follows;

  • Complaints handling systems
  • Quality control systems
  • Performance appraisal systems
  • Employee recruitment and selection system

II-Lean System

In order to achieve operational efficiency and decrease waste, PepsiCo implements lean Six Sigma strategic approaches in its productions and manufacturing units.

Staff of PepsiCo

PepsiCo offers various types of career growth opportunities like internships and others for fresh graduates and experienced workers. The focus of the employee recruitment strategy and talent acquisition team is to achieve the following;

  • Conducting internal professional development programs
  • Supporting diversity across the company and country
  • Promoting diversity in schools, colleges, and university
  • Finding and identifying talent across the world

Some of the main benefits PepsiCo offers are as follows;

  • Work-life balance and benefits
  • Retirement benefits
  • Well-being
  • Health insurance

Skills of PepsiCo

In order to promote and update the skills and expertise of employees and leaders; PepsiCo conducts various types of training and development programs on-job and off-job. With better and updated skills and expertise, PepsiCo’s employees would perform better in the workplace; which would increase the company’s growth and profitability.

Style of PepsiCo

The objective of PepsiCo is to establish an exemplary workplace culture that would put smiles on and make a great positive impact on the world. Some of the main elements of the company’s workplace and leadership styles are as follows;

  • Flexible working policies
  • Thriving career-oriented workplace
  • Focusing on constant innovation and creativity
  • Achieving end-to-end sustainability

Shared Values of PepsiCo

The mission and vision of PepsiCo is to achieve social and economic excellence through empowerment, responsibility, trust, and a sustainable growth rate. It guides and directs the soft drink and food company to determine what it wants to achieve and become; developing a culture that helps the company to achieve its vision.

Conclusion: PepsiCo McKinsey 7S Framework in Strategic Management |McKinsey 7S Model with Example 

After an in-depth study of the McKinsey 7S framework of Pepsico; we have realized that PepsiCo is the world’s leading soft drink and food brand. If you are learning about PepsiCo McKinsey 7S framework in strategic management and change management; strategy, structure, system, staff, skill, style, and share values of McKinsey 7S model with Example Company.

References 

  1. https://www.pepsico.com/our-impact/esg-topics-a-z/employee-recruitment
  2. https://pk.indeed.com/cmp/PepsiCo/reviews?ftopic=paybenefits
  3. https://www.pepsico.sa/about/working-at-pepsico
  4. https://www.pepsico.com/our-impact/esg-topics-a-z/employee-engagement
  5. https://www.pepsico.com/docs/default-source/sustainability-and-esg-topics/2022-employee-demographics.pdf
  6. https://www.pepsico.com/who-we-are/about-pepsico
  7. https://life.pepsicojobs.com/culture/
  8. https://www.pepsicojobs.com/main/
  9. https://www.pepsico.com/who-we-are/mission-and-vision
  10. https://en.wikipedia.org/wiki/PepsiCo#Working_conditions
  11. https://strategicanalysishub.com/ansoff-matrix-of-pepsi/
  12. https://www.linkedin.com/company/pepsico/life
  13. https://www.glassdoor.com/Benefits/PepsiCo-US-Benefits-EI_IE522.0,7_IL.8,10_IN1.htm