INTRODUCTION

Up to now, management in corporations still plays an essential role. The bigger the
organisation, the more pronounced the value it provides. In addition, there are
roughly 213,65 million organisations still active worldwide (2020). Each of them
has its strategies to run a business, but their purpose is operating their firms
smoothly. They need to figure out how to sketch out plans for the future, find out
the potential risk, give tasks for employees to solve the problem efficiently and
effectively due to the value provided by the administration. From that, the subject
of management is created to help us know more about management’s profit.
Via this essay, we chose PepsiCo Vietnam to analyse the administration in its
structure from management’s perspective. Since this corporation was founded and
published to the public, they always attempted to catch the market’s trends and
customer tastes, arranging from modifying the ingredients, labels and optimising
their products’ price. Thanks to talented human resources, leadership, and suitable
strategies to maintain the old clients and seek potential ones, PepsiCo is leading in
the beverage industry in Vietnam.

1. Company Profile
1.1 About the Company
 PepsiCo is a multinational snack and beverage brand headquartered in
Purchase, New York. In 1965, PepsiCo specialised in producing, marketing,
and distributing, ranging from energy-boosting drinks to healthy foods. in
Vietnam’s market
Despite being over 100 years olds, PepsiCo remains one of the world’s fastest-
growing companies. PepsiCo’s annual profit reaches an average of 39 billion
USD and is showing no sign of stopping. Based on net revenue, PepsiCo placed
second behind Nestle – worldwide - but took first place in North America.

1.2 History of Pepsi:

1893: Pepsi was created by Caleb Bradham in North Carolina as a drink known to be
good for digestion. 
1898: Caleb bought a degree of the invention for Pepcola and named Pepsi Cola.
1936: Pepsi revenue skyrocketed in the US.
1941: Pepsi started stepping into the European market.
1947: Spreading over the Philippines and the Middle East.
1964: Introduced the first soft drinks for diet people-Diet Pepsi

1.3 Mission:
For consumers: to create a comfortable time.
For customers: to be the best partner willing to solve any problem.
For its associates and communities: to open new opportunities, gain new skills
and build successful careers.
For the environment: conserve the earth and maintain resources for future
generations.
 1.4 Vision:
PepsiCo’s vision statement is “to deliver top-tier financial performance over the
long term period by integrating sustainability into our business strategy, leaving
a positive imprint on society and environment”, arth following the main points:
1. Top financial performance.
2. Sustainability.
3. Corporate social responsibility.
1.5 Pepsi in Vietnam
A brief overview: Vietnam set itself among the earliest foreign beverage
brands. When Vietnam's markets the US lifted sanctions in the 1990s, Pepsi
quickly signed a contract to enter Vietnam’s market. Vietnam’s beverages
 market was mainly shared by Tribeca, a small domestic soft drinks company
with outdated technology. 
Main headquarters of PepsiCo Vietnam: 5th Floor, Sheraton Building, 88 Dong
Khoi Street, District 1, Ho Chi Minh City.
1.6 Pepsi Business Strategy:
 1993: Vietnam’s commercial law did not allow the business to have 100%
international capital. Therefore, Pepsico. inc partnered with - Chương
Dương-Tribeca. Since Tribeca was a powerhouse in Vietnam, this
partnership helped PepsiCo understand Vietnam’s market.
 2003: Added more sub-brands (Aquafina, Mountain Dew, Sting, Twister,
7UP, Revive, etc.).
 2005: Officially became a beverage company with the largest market share
in Vietnam.
 7/9/2004: Pepsi signed a contract of cooperation with Kinh Do – “the king
of mooncakes”. This cooperation brought new market ground to Pepsi
against Coca Cola or Wahaha.
 2006: Released the snack: Poca.
 2011: Pepsi contracted 82 KFC restaurants in Vietnam to sell only Pepsi’s
products.
 10/2012: Pepsi opened a giant factory in Southeast Asian Dong Nai. 
 4/2013: Cooperates with Suntory Holdings Limited, PepsiCo.Inc launched
Mountain Dew and Oolong Tea+. Suntory and Pepsi held 51% and 49%
shares, respectively.
2. Strategic planning
2.1 SWOT 
2.1.1 STRENGTHS
2.1.1.1 Famous brand
Pepsi is a brand that has been around for almost 50 years so that they have quite a
lot of experience and position their image in the minds of consumers. It’s
indisputable that the Pepsi brand is very famous, related to a simple, vibrant and
refreshing idea. Pepsi has many loyal customers around the world regardless of
gender.
Pepsi carbonated soft drink is a long-standing, prestigious and famous brand
worldwide.
Products with perfect quality, competitive and reasonable prices, eye-catching
packaging and also a variety of types and models
2.1.1.2 Products
Pepsi's product portfolio is much more diverse and than Coca-Cola’s.
Pepsi's position as the "comprehensive beverage company" is one of the massive
reasons for its global success. Pepsi has many product brands in the US, such as
Pepsi, Diet Pepsi, Pepsi ONE, Mountain Dew, Wild Cherry Pepsi, Aquafina. The
company also engage in commercial trading in teas and coffees through joint
ventures with Lipton and Starbucks. Pepsi's primary merchandise sold globally
includes Pepsi Max, Mirinda and 7-Up.
2.1.1.3 Distribution system
Extensive distribution network with more than 900 operating companies and
closed commercial plants worldwide. Pepsi is constantly consolidating its
distribution system to improve operational efficiency and better satisfy beverage
retailers. Distribution systems are varied depending on customer needs, product
characteristics, and local commercial practices.
Pepsi is using the following types of distribution systems:
Direct distribution to retail stores
Distributing to customer's factory
Vending point 
2.1.1.4 Financial potential: 
Increase income revenue and market share, significant net working capital. 
The results from Pepsi’s corporation and financial activities for 2007-2009 were
quite impressive, challenging the global environment and contributing to the
abundant cash flow from business activities.
- 2009 net revenue is 43,232 million USD which climbed up to 5%, compared to
the same period last year.
- Operating profit was USD 8,647 million, up 6%
- Cash flow from operating activities reached $5.6 billion, up 16%
- Networking capital in 2009 was USD 6,796 million
- High market share accounting for over 40%
2.1.2 WEAKNESSES
2.1.2.1 Reliance on Carbonated drinks:
+In many countries where health-conscious consumers have started to stay away
from carbonated beverages with high levels of sugars or artificial sweeteners. All
these factors have slowed down the beverage industry’s growth. High dependency
on sweet carbonated drinks impacts Pepsi’s top line and needs an immediate
course correction.
2.1.2.2 Products Perceived as Unhealthy: 
-Most of PepsiCo’s carbonated soft beverages contain a high amount of sugar,
whereas its snacks are added in elevated amounts of salt and chemical flavours.
This is a significant weakness, particularly in the current health-conscious
consumer markets.
-Their rival Coca-Cola Company is a more popular and well-recognized brand all
over the world. It has topped the Interbrand ranking of 100 best global brands for
12 consecutive years with a brand value of $71.9 billion in 2011. PepsiCo was
ranked 22nd with a brand value of $14.6 billion (Interbrand, Best Global Brands);
compared to PepsiCo, Coca-Cola Company also possesses a larger volume of
market shares outside the US.
-Snacks and many healthy products still cannot compete with the local market.

2.1.2.3 Their rival Coca-Cola Company is more popular and well-recognized

brand worldwide. It has topped the Interbrand ranking of 100 best
global brands for 12 consecutive years with a brand value of $71.9 billion in
2011.
PepsiCo was ranked 22nd with a brand value of $14.6 billion (Interbrand, Best
Global Brands). Compared to PepsiCo, Coca-Cola Company also possesses a
larger volume of market shares outside the US.
 Although PepsiCo has collaborated with many restaurants, in comparison
with its greatest opponent Coca-Cola there's still a gap
⇒ Coca-Cola is a significant issue Pepsi has to face to maintain its survival. Coca

2.1.2.4 Others
- Pepsico Inc rents a large amount of its property, which requires rental fees.
- It has a high replacement rate of labour and employee engagement and morale.
- Its competing capability is not as much as competitors due to a limited
expenditure on research and development.
- Its revenue increased, besides low employee motivation and working spirit.
2.1.3 OPPORTUNITIES:
Partnerships: Pepsi can increase its market share by partnering with non-competing
brands; Coca-Cola, for instance, had a grand alliance with Domino. Something
similar can be investigated to increase sales and market share.
 We are increasing public relations in Viet Nam and many Asian countries. 
 According to the financial statements, PepsiCo's business performance in
Vietnam is slightly better than Coca- Cola's. After forming a joint venture
 with the Suntory Group of Japan in 2013, the company's revenue surged, and
profit exceeded the trillion-dollar mark for the first time.
 According to VIRAC statistics, the revenue of Suntory PepsiCo Vietnam (a
joint venture between PepsiCo and Suntory) reached nearly 13,600 billion
VND in 2016, an increase of 3,500 billion VND from the previous year.
This year's financial gain before taxes was around $1500 billion. (2018).
 PepsiCo's profit increased after forming a joint venture with Suntory,
resulting in a more extensive business line than Coca-Cola. This also nearly
doubles the revenue scale of this competitor.
 Their billion-dollar brand Aquafina's presence in the bottled water industry
will increase profit; as clean water becomes scarce, purchasers will consume
more clean bottled water.(In 2009, Nielsen Vietnam released a survey on the
market of bottled pure water that attracted much attention with the LaVie
brand accounting for 31% of the market share; PepsiCo's Aquafina ranks
behind with nearly 30%, with only these two labels accounting for more than
60% of the market share of bottled purified water.)
 Increasing demand for healthy beverages: The demand for healthy drinks
and foods is still in its infancy growing exponentially favourable. The need
of the hour is to take that opportunity and capture as much market share as
possible. (in this section, PepsiCo had taken one step forward compared to
Coca-Cola with many healthy products...)
Interest rates are falling, which makes significant projects an attractive
proposition. 
Consumption expenditure is rising in parallel to household income. Inflation is
estimated to remain low throughout the economy.
2.1.4 THREATS
 Heavy competition from Global and Local players: Coca-cola was the
challenging competitor of PepsiCo from the beginning. This brand focuses
on beverages and offers more collaboration and interactions than PepsiCo,
leading to better customer loyalty.
 Vietnamese people tend to focus on a healthy lifestyle: The Vietnamese
focus on non-fatty food and vegetables containing rich and diverse nutrition.
 Pandemics like covid-19: Unexpected events directly impact the
consumption of PepsiCo, as their main products are still beverages and
snacks, which is not compulsory. 
 Create more sponsorship of events: to increase public relations and make the
brand image more close and relevant to consumers.
 Pay more attention to advertising campaigns: avoid bringing insensitive and
misleading issues that reduce customer loyalty.
  Heavy competition from Global and Local players
 Various substitute products
 Competition within the industry is increasing.

2.2 SWOT Matrix analysis

Strengths Weaknesses
1. Pepsi carbonated soft 1. Pepsico Inc rents
drink is a long- a large amount of
standing, prestigious its property,
and famous brand which requires
worldwide. rental fees.
2. Products with perfect 2. It has a high
quality, competitive replacement rate
and reasonable of employees and
prices,  eye-catching low employee
packaging, and engagement and
various types and morale.
models. 3. Its competing
capability is not
3. Pepsi is a brand that as much as
has been around for competitors due to
almost 50 years, and a limited
Pepsi has a large expenditure on
number of loyal research and
customers around the development.
world. 4. Its revenue
4. Extensive distribution increased, besides
network with more low employee
than 900 operating motivation and
companies and closed working spirit.
commercial plants
worldwide
5. Pepsico has strong
financial potential  
Opportunities SO Strategies WO Strategies
1. Interest rates are  Based on the  Financing
falling, which strengths of the property
makes significant renowned brand ownership with
projects an image in customers' low-interest rates
attractive eyes, Pepsico should will increase the
proposition.  launch more development of
2. Consumption attractive advertising owned property
expenditure is programs that aim to more than rented
rising in parallel produce eco-friendly property. (W1,
to household products. On the O1)
income. Inflation other hand, they  Financing
is estimated to should focus on property
remain low consumers' health ownership with
throughout the standards. Their low-interest rates
economy. revenue will increase will increase the
3. The demand for by propagating development of
healthy drinks healthy products like owned property
and foods is still Pepsi zero sugar or more than rented
in its infancy and Aquafina. (S1, O3) property. (W2,
is growing  Pepsico should utilise O2)
exponentially. its famous brand to
4. Chance to collaborate with other
collaborate with enterprises like fast
other partners food stores,
that provide fast- restaurant chains, and
food or restaurant sports clubs. Then,
chain they can quickly
expand their market
share and make their
products more
renowned. For
example, the
collaboration
between Pepsi and
KFC is that KFC just
allows customers to
drink Pepsi soft drink
instead of drinking
other glass (S1, O4)
Threats ST Strategies WT Strategies
1. Heavy  Stepping up  Increase spending
competition from advertising and on research and
Global and Local offering promotional development to
players campaign (S1, T1) enable Pepsico
2. Various  Create more Inc to compete
substitute sponsorship of events better (W3, T3).
products to increase public  Provide
3. Competition relations and make incentives,
within the the brand image more increase
industry is close and relevant to engagement, or
increasing. consumers. (S1 S2, provide a better
T1) work environment
 Promote favourable to retain talent.
business advantages This will ensure
to impulse the that employees
development of don’t leave and
business activities. join competitors
(S1 S2, T1) (W4, T3).
 Pepsi's effective
marketing strategy is
to innovate products
constantly. The
packaging and
product quality of
Pepsi are continually
innovated. This brand
updates its designs
regularly to meet the
diverse needs of
customers. (S2, T2)

3 ORGANIZING:
3.1 Formal Structure- Organizational charts
PepsiCo originally had a hierarchical structure in the very early period since
Caleb Bradham founded this corporation in 1902. However, after several essential
mergers and acquisitions in the past, the design of this organisation has changed to
adapt to the modern market to reach each potential area. In addition, there are three
main types of PepsiCo's structure organisation:
 Market Division
Functional Corporate groups/ offices
Global Hierarchical
3.1.1 Formal structure in Suntory PepsiCo Vietnam:
PepsiCo Vietnam was the branch of PepsiCo corporation in the US. After that,
PepsiCo Vietnam signed to create a league with Suntory of Japan, known as
Suntory PepsiCo VietNam. Suntory PepsiCo VietNam focuses on a hierarchical
structure popular with many organisations worldwide. The division from top to
bottom enabled PepsiCo to maintain hierarchy communication, control, and
administer the company's internal. This characteristic of the organisational
structure also provides a means that helps PepsiCo to minimise deviations and
risks from its policies and strategies. The following are eight functional
departmentalisations essential specific offices managethreeThe of PepsiCo
Vietnam:
1. Sales
2. Finance
3. Supply Chain
4. Human Resources
5. Operations
6. Marketing
7. Procurement
8. Corporate Affairs
3.1.2 The function of each type of department:
3.1.2.1 Sales:
 Traditional Trade: Approaching given targets in business to gain revenue
and boost profit in traditional selling channels such as market, internet,
groceries.
 Modern Trade: Realising targets to gain revenue and boost income in
current trading channels such as supermarkets and convenience store plans.
 On-premise: Strategy practice is a factor in boosting sell strategy and
preparation channels like restaurants, playgrounds, Industrial food providing
services, etc...
 Category development & Operations: Based on the insight of customers,
channels, and type of products to launch and approach suitable strategies, the
inability of brand recognition, display, and development. 
 Go to Market: Developing the providing network (model, several
providers,..), good-selling systems to guarantee effective customer service
and proficiency in cost. 
  Sales Operations: Building and monitoring selling activities, including
demand forecasting, customer services, reporting, analysing, and price
suggesting.
3.1.2.2 Finance
  Planning: Play a role as a financial partner, providing support in deciding
and analysing the company's economic activities.
 Control: Ensuring the property of financial reports, which follow the
process correctly and activities among different departments.
 Legal: Leading programs about the law to directly practice and ensure the
legal registration process happens smoothly.
 IT: Taking responsibility and overseeing all issues related to information
technology in cooperation with other departments in the company.
3.1.2.3 Supply Chain
 Demand Planning: Forecasting and building plan about potential supplies
to meet the market's demand, sell strategy, and prepare for production.
 Supply Planning: Building plans for providing materials and products,
including production resources to meet the market’s demand, selling
strategies.
 Logistics: Enhancing the backup plans and meeting the customer's demand.
Develop a backup model to minimise the price and resources.
3.1.2.4 Human Resource
 HR Business Partner: Guaranteed processes practising must include
organisation’s rules which will be operated in the proper functions and
provide technical profession, suggests solutions for business problems
 Talent Acquisition: Provide speciality and recruit talent on time to help
boost the business revenue. 
 Talent Development: Guarantee qualification of training programs,
evaluate the process in achievement, culture, and guide employers'
effectiveness.
 Total Rewards: Providing specialities about flourishing in appreciation for
employees' achievement from which employees can contribute to the
company.
 General Administration: Take responsibility for administrative monitoring,
including management fees, welfare, hiring overseas experts, outsider fees,
potential costs daily.
3.1.2.5 Operations
  Maintenance/ Engineering: Ensure all machines work in stable operation
by repairing, fixing, and enhancing to reach the best productivity.
 Production: Control major productions, standardise criteria, and ensure
production hygiene of Suntory PepsiCo.
 QC/QA: granting all production of a company must meet quality standards
and food hygiene for selling via checking all factors through the production
process, from raw material to finished goods.
 EHS: Approaching this program in factories by following the law and
company standards and building an accident-free environment.
 Productivity and Capability: Leads productivity and capacity via
supporting activities work and maintaining tools in the stablest condition.
3.1.2.6 Marketing
 Brand Marketing: Put up with strategies, plans and practice those
marketing strategies to build brand awareness on the fundamentals for
finishing targets.
 Consumer Insight: Research the market and behaviour of consumers,
realise potential demand, new trends, and follow a business index.
 Media: Set up the media channels for brands and use their budgets
3.1.2.7 Procurement
 Procurement-Sourcing: Developing material supplies and services, high
quality to meet the company's demand and follow inside-controlling
procedure.
 Procurement-Operations: germinate in practising good-trading practices
on time, correct quantity to meet the demand in producing of company and
follow inside-controlling procedure.
3.1.2.8 Corporate Affairs
 Corporate Social Responsibility: Assisting in the Corporate Social
Responsibility program (CSR) with the organisation’s culture value, which
aims to build a favourite model and maintain business stability.
 Communication: Controlling responsibility in a communication plan and
crisis to build a favourite model, maintain business stability.
 Government Relation & PR Relations: Enhancing and protecting Suntory
PepsiCo's image and developing brand value for government and
community.
3.2. Its approach to planning and decision
It's pretty clear to define that hierarchical structure is the original and traditional
organisational one globally. Top managers make decisions that will direct to the
layers of employers, for example, VinGroup under Pham Nhat Vuong, whose
vision and strategies are omnipresent throughout his companies. A characteristic of
a company like this is that the leaders take responsibility for business activities and
lead their employees to their points of view, strategies, and plans.
Following this, there are two reasons why this organisational structure is adequate.
The first one is because of its historicity. For many decades, we have considered
leadership a top-down process, and the latter is because of its performance. The
explanation is that making decisions on typical or crucial issues is not something
many people in a company have enough capacity to carry on. In addition, it seems
suitable for talented people such as this company’s leader who has skills in
clarifying information, accepting risk, and long-sightedness. The following is
about its impact on plans and decision-making to get more information about the
hierarchical structure.
Influences of hierarchical structure to plan and decision making
departmentalisation the
departmentalisationdepartmentalisationdepartmentalizations
 Working in a hierarchical environment, you will find it easier and more
apparent in your approach to various orders from your boss. From that, you
will know how well you performed to contribute to the development of your
company. As a result, you can find more opportunities and motivation to
boost yourself in learning and sharpening your abilities.
 Another opportunity in this structure of an organisation is understanding and
looking up the value of leadership. In addition, the shape of this structure is
a pyramid, so having many layers of leadership and management can operate
the business more smoothly and avoid confusion and insider chaos.
 Because it is a hierarchical structure with many levels of authority and
power, employees will be under the control of their supervisors. This
characteristic will avoid having uncertainty in working orders. 
However, everything still has two faces in one problem, leading to the structure's
drawbacks. That is:
 Because the main reason has so many leadership roles in a hierarchical
structure, the time of decision making may be so long. Almost any
manager's decision partly relates to that of the company. The more
significant number of managers, the harder it will be to end up with one
conclusion that can please all. Besides, another problem is there are so many
kinds of personalities in the workplace. It is no surprise that the ideas or
opinions of leaders hathe departmentalisation several differences from those
 of members. To operate a business well, the leader only considers and
balances diverse ideas to create a relatively stable direction for all.
4. LEADING
4.1. The organisation’s heroes 
Suntory PepsiCo Vietnam Beverage's CEO and General Director are organisations
will, Uday Shankar Sinha. Uday has travelled and engaged in business-related
activities in 25 nations during his career. Uday worked with PepsiCo for 15 years,
holding positions such as Marketing Manager, Sales Director, General Manager,
Managing Director, and others in India, Thailand, China, Taiwan, and the United
Arab Emirates. Uday was named CEO and General Director of Suntory PepsiCo
Vietnam Beverage in 2015. With a friendly and cinematic face and a warm and
inspirational voice, the CEO quickly got a liking from the first meeting. To create a
reputable business in terms of business results and consumer trust, nothing is more
important than building a solid foundation of corporate culture for all
employees.Suntory PepsiCo Vietnam Beverage's market share increased to 36
percent overall market share in the Vietnamese LRB (liquid refreshment beverage)
business under Uday's leadership. The business routinely grows by double digits.
His first rule is always to respect people and their local culture wherever he goes.
Besides, he doesn't think anyone wants to work with talent but lacks empathy or is
artificially friendly without leadership. Therefore, you must be both adept at social
skills and at the same time prove yourself to be intellectually excellent.
- His secret formula lies in the simple word HAIL (Honesty - Authenticity -
Integrity - Love). He supposes:" When you approach someone or something with a
sincere attitude, treat them with respect, show integrity, never forget to show
concern for your colleagues, and always think of the best for staff. I believe you
will earn trust and respect from every employee".
Uday Shankar Sinha: CEO and General Director of Suntory Pepsico Vietnam
4.2 Freedom at work
Each member is entirely free to speak openly and honestly. He always believes that
a successful business is not based on modern equipment or strict control
regulations but the dedication of each member of the Company. The company
members always pursue the core values in their daily work. They have built a
unique corporate culture at Suntory PepsiCo Vietnam with the spirit of "Yatte
Minahare" - English means "Go for it" of Japan Suntory Corporation. "We can fail,
but we must never be afraid." This is also a highlight to help the Company attract
and retain high-quality human resources, motivate all employees to continue
developing daring projects, and become a pioneer with the spirit of business
ownership. For many years in a row, Suntory PepsiCo has been named in the Top
10 Best Places to Work in Vietnam
4.3 The motivational environment
Suntory PepsiCo always aims to build an environment that helps employees
develop holistically, where each individual strives to mark their success with
leading brands and inspiring visions. Here, employees are encouraged to unleash
their talents through trust and empowered to work hard and enjoy life with an
attractive, comprehensive package of benefits, diverse culture, integration, and
respect for distinctiveness.
Furthermore, suitable pay practices and a corporate culture concentrating on long-
term growth provide employees confidence and peace of mind to continue
contributing to the company and the society in recent years.
PepsiCo Vietnam has built a working environment of "comprehensive
development - living fully" for employees in recent years.
According to Anphabe's survey "Best place to work in Vietnam 2018", with more
than 75,480 participants, factors such as salary and bonus, position, beautiful
office, company reputation... impact 41% of efforts workers' power. Meanwhile,
59% of motivation to go to work comes from employees' desires, including
physical health and mental will (help employees have the energy to work harder
and be more positive); autonomy (stimulating employees to challenge themselves,
develop creativity, volunteerism); pride and a feeling of "doing your best" for a
purpose, giving employees the confidence to overcome difficulties.
In addition, Anphabe pointed out that the organisation’s connection and positive
relationship are essential in determining the long-term support and attachment
between employees. At the same time, when they are equipped with the capacity
and skills corresponding to the position held by the enterprise, employees will
increase their confidence and problem-solving ability, thereby achieving maximum
work productivity and ability to achieve the best.
Suntory PepsiCo Vietnam Company has been at the top of the list for many years.
In 2018, the Company reached the top 4 best places to work in multinational
companies in the fast-moving consumer goods (FMCG) industry; Top 7 in the list
of 100 best places to work in Vietnam. In 2017, the unit was in the top 5 FMCG
companies, up to two areas compared to 2016; Top 4 multinational companies in
the FMCG industry and ranked 8th in "Top 100 most worth working companies in
Vietnam", up three places compared to 2016.
Suntory PepsiCo Vietnam's social efforts are centered on producing sustainable
packaging, safeguarding water resources and the environment, and contributing to
sustainable development, all of which are aligned with the company's core
philosophy of "Contributing back to society." Give back to society by participating
in practical initiatives that aid the youthful generation or flood victims.
At Suntory PepsiCo, every member has trust, solidarity and strives for a common
goal and benefit. On the contrary, the Company also creates many opportunities for
each individual to develop their career direction, encourage a balance between
work and family life, help our employees fulfil their company responsibilities, and
spend time with family, friends, and their own lives.
In addition, our Company also pays great attention to building the cultural tradition
of Vietnam through the Benevolent Arms program - A volunteer program funded
and implemented by Suntory PepsiCo employees themselves. Up to now, more
than 8.4 billion VND contributed from 10 clubs through 110 Bracelet programs of
the Company with the participation of 5,500 volunteers have been used for eye
surgery, heart surgery, building houses of gratitude, visiting social centres...
  The Company has a talented leadership team, and they are empowered to make
the right decisions for Suntory PepsiCo's growth in Vietnam. The fast pace of the
market, flexibility and data-driven decision-making are attractive when working in
Vietnam.
5 CONTROLLING
5.1 Definition
Rambusch (2012) distinguishes between two types of "controlling" concepts: those
aimed at achieving results and those aimed at the company's universal objectives.
Pepsico structured their business around the first.
5.2 Goal: 
5.2.1 Product: Becoming a leading enterprise in consumer goods, main products
including food and beverages. Constantly pursuing and trying to create healthy
financial returns for investors, as well as chances to expand and provide economic
advantages to our workers, business partners, and the communities in which we
operate.
The production process of a typical product: Aquafina

Start from the water source:

If production is in large volume, Investors choose an underground well water
source. Groundwater usually has stable quality, timely treatment, and lower costs
than other water sources. After drilling a well, selecting a water source, it is
necessary to do general testing. Based on the results, one or more of the following
processing stages may be required:
-Coarse sediment filtering
-Eliminating iron and manganese
-Softening, demineralising-Deodorizing
-pH Balancing
-Fine filtration: using reverse osmosis membrane or Nano membrane
-UV re-sterilization
-Final stage: Filling - capping
Filling and capping process for small PET bottles (300 -1500ml)
Stage 1: Bottle cap preparation: The cap is washed from the cap washing area then
put into the storage compartment for production.
Stage 2: Preparing bottles: New bottles, put on the conveyor, automatic bottle
transfer machine, rinse with finished water,
Stage 3: Water extraction and capping: The machine automatically transfers the
sterile bottle through the water extraction and automatic capping system.
Checker will check the quality of the capping bottles to the conveyor. The printer
prints the expiry date on bottle caps. Bottles with body and neck labels are
automatically transferred to a shrink film dryer.
Packing finished products and transferring them to the transhipment warehouse,
carrying out storage procedures...
End of the production process.

As we can see from a typical example of Pepsico Vietnam's product, it will be

subjected to strict progress from raw material to a pure product sent to customers.
Primarily, they mainly focus on consumers' health and use it to orient its growth.
5.2.2 Manufacturing: 
Producing safe and suitable products for consumers is the top priority of Pepsico.
Controlled processes, parts and finished products are handled correctly by them.
Manufacturing includes the following device controls: 
 suitability to technological features
 device maintenance
 device verification
 start-up 
 calibration
 delivery operation
Product procedures control inspection and testing, incoming raw materials and
packaging controls, water quality, quality packaging quality, nonconforming
product control, product correction, and approval review and correction.
Warehouses are frequently checked, approved, and monitored on a regular basis. 
5.2.3 Quality: 
Pepsico's operation principles in all actions are based on honesty and fairness.
Presently, Pepsico's primary goal is to make its products and markets more diverse.
Besides, Pepsico gets a certificate in producing safe products guided by the
PepsiCo Food Safety Policy. The company’sTheyprimarythree strategy is to focus
on building a sustainable food safety program that provides a framework for
developing and maintaining the food safety of its brands. 
5.2.4 Customer: Since entering the Vietnamese beverage market now, PepsiCo
has clearly defined: the target customers of Pepsi-Cola beverage products are 13-
19 years old. Why? There are two reasons for this: 
 Vietnamese teenagers are active and tend to participate in outdoor activities,
so Pepsi-Cola is considered a product to help cool down the heat, "smash
thirst", and a refill for lost water. Besides, the youth have a hobby of both
sipping food and enjoying drinks, which is why Pepsi-Cola focuses on
exploiting. In addition, Vietnam has a young population, so those in this age
group is large, which is a potential condition for Pepsi-Cola to approach.

 Along with the main object being teenagers, Pepsi-Cola goods are
increasingly expanding to young customers under 13 and those more aged
than 19 years old. The Reason for choosing this new customer is because
PepsiCo understands the psychology of drinking sweet water and the feeling
of excitement when the gas spreads and rushes to the nose.

 5.3 Performance 
5.3.1 Individual (Employee) Controlling: 
- Principles for effective human resource management at Pepsico Vietnam:
Pepsico's sales organisation is controlled on a regional basis by the development
strategy of the distribution system. In addition, Pepsico has tools to help each
employee set business goals, understand their workday by day, week by week,
month by month, and evaluate work very clearly.
- However, doing something to make the organisation work effectively is an art.
Managers always create passion and enthusiasm for employees. This is the most
critical factor, and the second is the level of the manager. If the manager does not
train the employees, the employees will not work with orientation and
ineffectiveness. A manager who does not set goals for each team member cannot
evaluate who does well and who is not good to motivate, reward and remind.
- Nearly 17 years of brand building in Vietnam is a long time for Pepsico to
develop its human resource policy. The company poses two problems in resource
development: creating available human resources and adding external factors. But,
directors prefer to develop available human resources to keep the force stable, with
little change. Pepsico has tools to evaluate employees. In personal goals,
employees offer programs to improve individual skills. For example: “If you want
to improve your financial or marketing skills, the company has a budget for all
managers to go to school to supplement that skill. After the course, the problem is
that the staff must evaluate whether the goal has been achieved. Thereby
employees have loyalty, the team in the workplace is strengthened because
employees have a basis for promotion. We are also interested in external resources
to renew ourselves.” – Mr Lam Van Hai shared
5.3.2 Organisation:
Company structure of Pepsico includes basic functions that are managed by
specific offices. The goal is to assure the company has complete control of its
service and implement tactics and strategies appropriately. 
5.3.3 Budget estimates
According to the performance of Pepsico Vietnam, the budgeting process can be
divided into 3 stages. In which, the first stage is the preparation of the budget
estimate, the next is the drafting of the budget estimate, and the last is the operating
mechanism.
Preparation of the budget estimate: 
This is the first and most essential step in the entire budgeting process. In this
stage, it is necessary to clarify the goals to be achieved by the business because all
budget reports are built based on the business development strategy and objectives
of the enterprise in a certain period of time. Certain. After defining the goals
clearly, the business will build a standard budget estimation model. This makes it
easy for managers to coordinate the budget estimates of all departments in the
industry and allows easy comparison and connection of budget content.
Drafting of the budget estimate:
In this stage, the departments and individuals involved in making the estimate must
gather all information about the resources available in the enterprise, internal and
external factors that impact and influence the business's budget estimate, and
estimate the value of revenue and expenditure at the same time. They prepare
relevant cost estimates such as consumption estimates, production estimates, cost
estimates.
Operating mechanism:
Based on each enterprise’s characteristics and operating mechanism, the budget
estimate can be made according to the following three models: top-down
information model, feedback model, and information model from bottom up.
6. ASSESS INTEREST IN JOINING THE ORGANIZATION
The sustainability at Pepsico Vietnam deeply impressed us. With the mission of
“Creating harmony with people and nature”, PepsiCo Vietnam always offers
initiatives to reduce the impact on the environment and programs with high spread:
“Miziuku”, “Water Hope”,... In addition, the company constantly improves the
production process, focusing on developing sustainable packaging. PepsiCo has
saved thousands of tons of plastic waste from the environment from these
initiatives. This is a humane activity worth learning to keep the Earth greenest
together. PepsiCo Vietnam is dedicated to developing products and business
activities in combination with sustainable development programs and community
responsibility. "Contributing to society" is one of Suntory PepsiCo Vietnam's core
values. The philosophy for community life reflected in the strategic vision:
"PepsiCo's commitment is to continually improve all facets of community life,
where we work on the environment, society, and economy to make a better day
tomorrow than today." has brought this group significant and solid success.
Besides cooperating with student support organisations, universities such as:
‘Green Summer’, ‘Dynamic’ contest, Pepsi Vietnam also “Relief the community
urgently”: more than 4.4 billion VND disaster relief dong in 2020, donated more
than 40,000 litres of water to support salt marsh areas for poor houses in Ben Tre,
significantly more than 8 billion VND to support the covid season, in addition to
many other activities.specific offices manage Most importantly, those are the
values the company brings to employees. With the philosophy that people are the
company’s most valuable assets, Suntory PepsiCo Vietnam upholds personal
values and respects differences, not in appearance, personality or personal
preferences. However, working results are a measure of employee performance,
and considering the young workforce as the core human resource will help the
company develop strongly in the future. Suntory PepsiCo Vietnam pays special
attention to employee needs and makes every effort to create policies which
provide team members with a balanced and fulfilling life. Besides that, Suntory
PepsiCo Vietnam provides a health care system package that appears to be the best
in the market for the families of all employees at all levels at prestigious hospitals,
which is infrequent in other companies. Pepsi is probably a household name; it has
staying power. Hopefully, with what PepsiCo has been doing, the company will
continuously develop and bring valuable things to society.

CONCLUDE
Through the process of searching and researching the factors: How to organise and
operate the company, as well as analysing the company's development strategy, the
team found that Pepsico Vietnam is one of the leading companies in the field of
business bottled drinking water with high brand awareness, prestige and name in
Vietnam. Pepsico organises a server that is operated efficiently through all levels
and departments. Pepsico always aims to create a healthy and dynamic working
environment, with substantial attention to building corporate culture and
connecting agencies, groups and members. Besides, Pepsico's strategy is very
appropriate, correct and timely in the continuous change of the world in general
and Vietnam in particular.
Despite certain limitations, Pepsico has solutions step by step, and each group
believes that the goals set by Pepsico are achievable. Pepsico will develop day by
day, with a vision to compete with world enterprises in this field.