Pepsico. India: Assignment By: Sabiya Mehra Rati Parwani Swati Gupta Preeti Parwa

PepsiCo.
India
Assignment By:
Sabiya Mehra
Rati Parwani
Swati Gupta
Preeti Parwani
History…
PepsiCo entered India in 1989 and has
grown to become the country’s largest
selling food and Beverage Company.
One of the largest multinational
investors in the country, PepsiCo has
established a business which aims to
serve the long term dynamic needs of
consumers in India.
PepsiCo entered India in 1989 and has

grown to become the country’s largest
selling food and Beverage Company.
One of the largest multinational
investors in the country, PepsiCo has
established a business which aims to
serve the long term dynamic needs of
consumers in India.
14 Principles of Fayol…
Division of Work. Centralization (or
Decentralization).
Authority.
Scalar chain (Line of
Discipline. Authority).
Unity of Command Order
Unity of Direction. Equity
Unity of command Stability of Tenure of

Personnel.
Subordination of individual
interest Initiative
Remuneration. Esprit de Corps

Division of work
Definition: There is an efficient result in the operational
level when tasks are distributed to qualified and
competent workers, or when people do specialize.
Pepsi: Various departments handle different kinds of

tasks:
The main division is:
Managing
Marketing
Authority
Definition: With formal authority, managers have the
right to command, and give orders to their
subordinates.
Pepsi: Different levels of authority are awarded to

managers at various levels.
Discipline
Definition: Members in any organization have to respect
the rules and agreements governing it. Respect and
obedience to rules is embodied in the conduct of good
life and discipline.
Pepsi: Every operation is monitored carefully leaving

little or no room for mistakes in discipline, action and
raw material.
Unity of command
Definition: Employees must receive instruction only from
one person. Reporting to more than one manager
results to conflicts in instruction and confusion of
authority.
Pepsi: Each factory has only one manager, so it is easier

for workers to differentiate authority.
The general manager then has bosses at higher levels.
Leaving no confusion of authority.

Unity of direction
Definition: Operations within any organization having the
same objective must be directed by only one manager
using one plan. In a department for example, there
should not be two or more supervisors, each having
different policy to follow.
Pepsi: People involved with production are not involved

in the marketing of the product and like wise.
So that employees have one goal at one time.

Subordination of individual
interest
Definition: The interest of the organization as a whole
should take precedence over the interest of individual
employees.
Pepsi: The organization and its goals always come first.
Before any personal goals such as employee rewards.

Remuneration
Definition: Compensation for work done should be fair to
both employees and employers.
Pepsi: Apart from awarding employees with fair salaries,

pepsi also rewards its employees with other boosters
such as passes for IPL, concerts etc.
This is done so to keep the employee motivated to

work.
Centralization
Definition: We have this approach by decreasing the role
of subordinates in decision making. Managers should
retain their final responsibility, while at the same time
give their subordinates enough authority to do their
jobs properly.
Pepsi: There is only one main boss that makes the

decisions which are followed by middle managers.
This is done so to keep authority and discipline intact.

Scalar chain
Definition: The line of authority in any organization turns
in the order of rank from top management to the
lowest level of the enterprise.
Pepsi: The authority is very well distributed, transparent

in their operations.
The lower employees are only informed about goals

that are short term and not the long term goals.
Order
Definition: Either material or human resources should be
in the right place at the right time. People should be in
the jobs or positions they are suited to.
Pepsi: Order is the key ingredient to successfully run a

food and beverage industry and pepsi handles it very
well by maintaining both material and social order.
Equity
Definition: Managers should be both friendly and fair to
their subordinates.
Pepsi: Equality is maintained in all aspects, such as

treatment of workers, not being gender biased, etc.
Stability of tenure of
personnel
Definition: A high employee turnover rate undermines the
efficient functioning of an organization.
Pepsi: Pepsi provides contract based employment

assuring its employees career progress and job surety.
Initiative
Definition: Subordinates should be given freedom to
share their ideas and carry out their plans.
Pepsi: The employees are given the freedom to present

their views on the company to make better progress.
This is also taken in consideration before taking

decisions.
Esprit de corps
Definition: Promotion team spirit will give the
organization a sense of unity. According to Fayol,
even small factors should help to develop the spirit.
He suggested the use of verbal communication instead
of formal and written communication.
Pepsi: Pepsi kindles its employees in a way that there is

no room for jealousy and every one is awarded for the
job done.
They do not create bias on rewards.

Conclusion
Keeping these principles in mind and
following the Co. has become such a huge
name and success. The world leader in
beverage industry, also its extension in other
food items has proved to be successful so far.
Thank You! 

Pepsico. India: Assignment By: Sabiya Mehra Rati Parwani Swati Gupta Preeti Parwa

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How did PepsiCo enter and grow in India?

How did PepsiCo enter and grow in India?

What are the main principles of management discussed according to Fayol?

What are the main principles of management discussed according to Fayol?

PepsiCo.

PepsiCo entered India in 1989 and has

Unity of Command Order

Unity of Direction. Equity

Unity of command Stability of Tenure of

Remuneration. Esprit de Corps

Pepsi: Various departments handle different kinds of

The main division is:

Pepsi: Different levels of authority are awarded to

Pepsi: Every operation is monitored carefully leaving

Pepsi: Each factory has only one manager, so it is easier

The general manager then has bosses at higher levels.

Leaving no confusion of authority.

Pepsi: People involved with production are not involved

So that employees have one goal at one time.

Pepsi: The organization and its goals always come first.

Before any personal goals such as employee rewards.

Pepsi: Apart from awarding employees with fair salaries,

This is done so to keep the employee motivated to

Pepsi: There is only one main boss that makes the

This is done so to keep authority and discipline intact.

Pepsi: The authority is very well distributed, transparent

The lower employees are only informed about goals

Pepsi: Order is the key ingredient to successfully run a

Pepsi: Equality is maintained in all aspects, such as

Pepsi: Pepsi provides contract based employment

Pepsi: The employees are given the freedom to present

This is also taken in consideration before taking

Pepsi: Pepsi kindles its employees in a way that there is

They do not create bias on rewards.

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