Gary Rodkin at Pepsi-Cola North America (A) 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 (A)
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 (A)" 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 (A) 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 (A) casestudy better are - – central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, geopolitical disruptions, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
increasing household debt because of falling income levels, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Gary Rodkin at Pepsi-Cola North America (A)
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 (A) 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 (A) can be done for the following purposes –
1. Strategic planning using facts provided in Gary Rodkin at Pepsi-Cola North America (A) 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 (A) | 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 (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Pcna Pepsi in the sector have low bargaining power. Gary Rodkin at Pepsi-Cola North America (A) 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.
Highly skilled collaborators
– Pcna Pepsi has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Gary Rodkin at Pepsi-Cola North America (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Pcna Pepsi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pcna Pepsi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– Gary Rodkin at Pepsi-Cola North America (A) 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.
Operational resilience
– The operational resilience strategy in the Gary Rodkin at Pepsi-Cola North America (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Cross disciplinary teams
– Horizontal connected teams at the Pcna Pepsi are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
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.
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.
Innovation driven organization
– Pcna Pepsi is one of the most innovative firm in sector. Manager in Gary Rodkin at Pepsi-Cola North America (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Pcna Pepsi is one of the leading recruiters in the industry. Managers in the Gary Rodkin at Pepsi-Cola North America (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Gary Rodkin at Pepsi-Cola North America (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gary Rodkin at Pepsi-Cola North America (A) 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.
Need for greater diversity
– Pcna Pepsi has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Pcna Pepsi has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
No frontier risks strategy
– After analyzing the HBR case study Gary Rodkin at Pepsi-Cola North America (A), 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Gary Rodkin at Pepsi-Cola North America (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Pcna Pepsi has relatively successful track record of launching new products.
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 (A), 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pcna Pepsi is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Gary Rodkin at Pepsi-Cola North America (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Gary Rodkin at Pepsi-Cola North America (A), is just above the industry average. Pcna Pepsi needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Low market penetration in new markets
– Outside its home market of Pcna Pepsi, firm in the HBR case study Gary Rodkin at Pepsi-Cola North America (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Gary Rodkin at Pepsi-Cola North America (A) HBR case study mentions - Pcna Pepsi takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Gary Rodkin at Pepsi-Cola North America (A) 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 (A) can leverage the sales team experience to cultivate customer relationships as Pcna Pepsi is planning to shift buying processes online.
Opportunities Gary Rodkin at Pepsi-Cola North America (A) | 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 (A) are -
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.
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 (A) 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.
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.
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 (A) case study. Pcna Pepsi can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Developing new processes and practices
– Pcna Pepsi can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Pcna Pepsi can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Building a culture of innovation
– managers at Pcna Pepsi can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
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 (A) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pcna Pepsi in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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.
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.
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.
Threats Gary Rodkin at Pepsi-Cola North America (A) 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 (A) are -
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pcna Pepsi can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Gary Rodkin at Pepsi-Cola North America (A) .
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.
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.
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.
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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Pcna Pepsi can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Pcna Pepsi needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Pcna Pepsi can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 (A), 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 .
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.
Shortening product life cycle
– it is one of the major threat that Pcna Pepsi is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Weighted SWOT Analysis of Gary Rodkin at Pepsi-Cola North America (A) 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 (A) 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 (A) 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 (A) 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 (A) 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.