Gary Rodkin at Pepsi-Cola North America (B) (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gary Rodkin at Pepsi-Cola North America (B) (Abridged)
After assuming the position of CEO of Pepsi-Cola North America (PCNA), Gary Rodkin faces organizational problems within PCNA and external friction between PCNA and its largest bottler, the Pepsi Bottling Group. In addition to the challenge of organizational alignment, this case also provides an opportunity to examine effective leadership, reorganization, and brand management in the context of the beverage industry.
Authors :: David A. Thomas, Gina M. Carioggia, Ayesha Kanji
Swot Analysis of "Gary Rodkin at Pepsi-Cola North America (B) (Abridged)" written by David A. Thomas, Gina M. Carioggia, Ayesha Kanji includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pcna Pepsi facing as an external strategic factors. Some of the topics covered in Gary Rodkin at Pepsi-Cola North America (B) (Abridged) case study are - Strategic Management Strategies, Leadership, Organizational culture, Organizational structure, Reorganization, Succession planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Gary Rodkin at Pepsi-Cola North America (B) (Abridged) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, wage bills are increasing, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models,
there is increasing trade war between United States & China, increasing commodity prices, etc
Introduction to SWOT Analysis of Gary Rodkin at Pepsi-Cola North America (B) (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gary Rodkin at Pepsi-Cola North America (B) (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pcna Pepsi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pcna Pepsi operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Gary Rodkin at Pepsi-Cola North America (B) (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Gary Rodkin at Pepsi-Cola North America (B) (Abridged) case study
2. Improving business portfolio management of Pcna Pepsi
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pcna Pepsi
Strengths Gary Rodkin at Pepsi-Cola North America (B) (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pcna Pepsi in Gary Rodkin at Pepsi-Cola North America (B) (Abridged) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Pcna Pepsi in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Pcna Pepsi has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Low bargaining power of suppliers
– Suppliers of Pcna Pepsi in the sector have low bargaining power. Gary Rodkin at Pepsi-Cola North America (B) (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pcna Pepsi to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Pcna Pepsi
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pcna Pepsi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Pcna Pepsi is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Pcna Pepsi in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Pcna Pepsi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Pcna Pepsi is present in almost all the verticals within the industry. This has provided firm in Gary Rodkin at Pepsi-Cola North America (B) (Abridged) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Pcna Pepsi is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Pcna Pepsi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gary Rodkin at Pepsi-Cola North America (B) (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Pcna Pepsi is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by David A. Thomas, Gina M. Carioggia, Ayesha Kanji can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Pcna Pepsi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pcna Pepsi has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Pcna Pepsi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gary Rodkin at Pepsi-Cola North America (B) (Abridged) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– Gary Rodkin at Pepsi-Cola North America (B) (Abridged) firm has clearly differentiated products in the market place. This has enabled Pcna Pepsi to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Pcna Pepsi to invest into research and development (R&D) and innovation.
Weaknesses Gary Rodkin at Pepsi-Cola North America (B) (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gary Rodkin at Pepsi-Cola North America (B) (Abridged) are -
Increasing silos among functional specialists
– The organizational structure of Pcna Pepsi is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Pcna Pepsi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pcna Pepsi to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Gary Rodkin at Pepsi-Cola North America (B) (Abridged) can leverage the sales team experience to cultivate customer relationships as Pcna Pepsi is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged), in the dynamic environment Pcna Pepsi has struggled to respond to the nimble upstart competition. Pcna Pepsi has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Pcna Pepsi supply chain. Even after few cautionary changes mentioned in the HBR case study - Gary Rodkin at Pepsi-Cola North America (B) (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pcna Pepsi vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Pcna Pepsi has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners
– Because of the regulatory requirements, David A. Thomas, Gina M. Carioggia, Ayesha Kanji suggests that, Pcna Pepsi is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Pcna Pepsi has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Pcna Pepsi has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Gary Rodkin at Pepsi-Cola North America (B) (Abridged) should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Pcna Pepsi has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Pcna Pepsi even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Pcna Pepsi 's lucrative customers.
Opportunities Gary Rodkin at Pepsi-Cola North America (B) (Abridged) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged) are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Pcna Pepsi to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pcna Pepsi in the consumer business. Now Pcna Pepsi can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Pcna Pepsi to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Creating value in data economy
– The success of analytics program of Pcna Pepsi has opened avenues for new revenue streams for the organization in the industry. This can help Pcna Pepsi to build a more holistic ecosystem as suggested in the Gary Rodkin at Pepsi-Cola North America (B) (Abridged) case study. Pcna Pepsi can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Pcna Pepsi can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gary Rodkin at Pepsi-Cola North America (B) (Abridged) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pcna Pepsi can use these opportunities to build new business models that can help the communities that Pcna Pepsi operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pcna Pepsi is facing challenges because of the dominance of functional experts in the organization. Gary Rodkin at Pepsi-Cola North America (B) (Abridged) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pcna Pepsi can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Pcna Pepsi can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pcna Pepsi can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Leveraging digital technologies
– Pcna Pepsi can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pcna Pepsi can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Pcna Pepsi can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Pcna Pepsi has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Gary Rodkin at Pepsi-Cola North America (B) (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged) are -
Regulatory challenges
– Pcna Pepsi needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pcna Pepsi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged), Pcna Pepsi may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Stagnating economy with rate increase
– Pcna Pepsi can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Pcna Pepsi business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Pcna Pepsi high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology acceleration in Forth Industrial Revolution
– Pcna Pepsi has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Pcna Pepsi needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Pcna Pepsi in the Leadership & Managing People sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Pcna Pepsi needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Pcna Pepsi.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Pcna Pepsi demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Weighted SWOT Analysis of Gary Rodkin at Pepsi-Cola North America (B) (Abridged) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Gary Rodkin at Pepsi-Cola North America (B) (Abridged) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Gary Rodkin at Pepsi-Cola North America (B) (Abridged) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Pcna Pepsi needs to make to build a sustainable competitive advantage.
