ASSIGNMENT 1: SYSTEM

ANALYSIS Your task in this

assignment is to write a paper in
which you describe an
organization of your choice in
system terms.

System
Analysis
PepsiCo. Company

Brittany Crawley
February 3, 2016

Systems Analysis Analysis of the Sales Department at

Pepsi-Cola
Introduction
Many years ago, before many of us were produced, a company called Pepsi-Cola was invented.
The company was invented in the late 1890’s by Caleb Braham, a N.C. pharmacist. Noted as one
of the most popular brands of soft drinks in the world, the company was actually formed due to
the popularity and demand for the former drink called “Brad’s Drink”, which was named by the
at the time- pharmacist, Brad in the drug store in which he was working at the time. He
believed the drink was more than refreshing but yet a “healthy” cola which could aid in
digestion. As of today, the company’s mission stands by the laws that are guided by
“Performance with a Purpose”: delivering top tier results in a way that sustains and respects
business, society and the planet. Consequently, the company drives its mission off the back of
the results which constitutes the importance of the Sales Department. In great respect to the
company’s mission, this department can be analyzed in system terms to elaborate on how the
mission of the company corporates the responsibilities of this particular department.

Figure 1: The basic flow of political laws that all a part of the suprasystems above Pepsi

U.S. Goverment Laws and Regulations

U.S Food and Drug Administration

The Food Industry and Self

Regulation

Pepsi

As shown in Figure 1, Pepsi -Cola has to also corporate with other entities that govern their regulations and
operations that can also be noted as suprasystems themselves above Pepsi-Cola’s laws and policies.
February 3, 2016

In Terms Of Systems at Pepsi-Cola:SupraSystem

Now that we have a clear understanding of the company, its history and mission, let’s begin to
interpret how this information can be applied in system terms. Let us rename Pepsi-Cola as the
suprasytem because it will act as the total environment in which the system of interest is
embedded. (Harries p5) As I have stated above, for the purpose of this paper, we will primarily
focus on the Sales Department. While merely considering this department, I would also like to
note the various systems within the suprasystem that are in place at Pepsi-Cola such as the
Production Department, Administration/Personnel Department and Financial Department all
act as important roles themselves within the suprasystem. Clearly stated, a system is the
collection of integrated entities which have arbitrarily been designated as the central interest.
(Harries p5) Or in other words, systems can also be defined as sets of interacting subsystems
(sales department), distinguished by boundaries which select the kind and rate of flow inputs
from, and outputs to, the environment. (Berrien p.41)

Pepsi
Directors/Leaders
Dir. Sales Managers

South Region Central Regions North Regions

Zone Managers Zone Managers Zone Managers

Figure 2: Diagram represent the structure of the company

This figure represents the suprasystems above the Department we focus on here in the paper and can
also represent systems within themselves.

System of interest: Sales Department:Subsystem

February 3, 2016

Selecting the Sales Department as the subsystem, which is classified as a subcomponent or

smaller part of the system of central interest (Harries p.7), as well as a work group operating
under the supervision of a foreman, or standing committee of middle managers. As a note,
there are four teams within the Sales Department which include: Vending, Foodservice, Bulk
sales, and Small Format Pre-sell. Though the Sales Department can be distinguished as a
whole, each team has their own set of goals. In other words, a purpose that addresses the
reason for existence of a job or organization. For instance, the food service team goal(s) may
differ from the goal(s) of say the Small Format teams’ goal(s) as they pertain to the company’s
mission. Nevertheless, this is also a reason that boundaries play a role in social systems (in
which here, can symbolize the difference in the roles and tasks of the teams) because they
exemplify clear criteria that exist indicating who is in or out the group. (Berrien p.44/45) Or in
even better reference, boundaries (like memberships that constitute requirements) are
exchanges, verbal and otherwise; among the group members have a different character from
exchanges between the group and other groups, either at the same or different level in the
organizational hierarchy. (Berrien p.47) The Sales Department plays a key role in the company’s
financial success, in which requires inputs and outputs. Inputs-raw materials, people, capital,
and information poses outputs- which are considered the services or finished goods released
into the environment by the organization; energies, product, services, information discharged
from a system (Berrien p.45) So examine the inputs as the actual raw materials that are
available in the ordering systems for the Sales Reps to order for their customers. Now from
those inputs that are available to them in the system to order, the Reps can now release these
items as outputs so the customers can receive their ordered product/ finished goods.
The Sales Department has a various amount of key players and leaders that follow a process in
order to get products into the trade. Every week, managers hold team meetings to go over
what is available, what quantities to order, and where to send certain goods etc. This process,
or series of steps (Berrien p.52, 61) in providing information, is to reach a common goal -
maximize revenue. Through this process, the Sales Department can arrange what needs to be
accomplished throughout a specific period of time. With a strong desire for execution, the
different teams also have meetings to over general issues, results, and expected
volume/production hurdles. Although each team within the department usually meets at
different times, days and frequencies or even may have different topics of discussions, the idea
remains the same across every board that the meetings are designed to provide information to
the Sales Reps. Information can be characterized by the input of sensory data to a system (sales
reps) which can be used for the understanding of what the Rep’s need to do and what is
expected.
On the other hand, suppose the manager for the Small Format team was out on leave or
vacation and the team didn’t have a team meeting on a particular week. Here, lies a chance for
the sales reps of that team to be lost as in a sense of what’s going on for the week in the trade
or perhaps what they should do, how to do it and in what time frame shall it be done. This is an
effect of entropy- the disorder, confusion, randomness, unpredictability (Harries p.5) which can
be a cause in the sales reps’ productivity and results for the week. Let us reference back to the
norm as if the manager of the sales team was available or at work, he not only holds weekly
meetings but each and every day he gives feedback on each sales reps’ productivity or how well
February 3, 2016

they are performing based on how output functions are carried out. Thus, the managers play an
essential role in the key mechanism that permits systems (sales reps) to live and retain their
identity in a changing environment that would otherwise destroy them (Berrien p.47) Precisely,
feedback is also repositioned back to the manager in terms of what the reps are experiencing in
the trade. For example, the sales reps give off signal inputs- orders, directives, and information
it accepts as relevant to its own function. (Berrien p.44) If something doesn’t appear to be
correct in their ordering systems, the reps communicate issues with the supervisor for the
correction of such issues for ultimate effectiveness in the trade. Other concerns, reps may run
into is system imbalances as their ordering systems don’t always operate properly. The sales
reps then, as well, communicate maintenance inputs to better assist upper management levels
of personnel in the understanding of what is preventing work functions to operate properly or
in other terms what works for them to remain productive; since these types of inputs are
considered solely keep the organism alive. (Berrien p.44) It is also suggested that in order to
maintain a fully functioning system both kinds of inputs, maintenance and signal are necessary
but in some balanced relationship (Berrien p.45)
If we for a moment take a look at the GST (General Systems Theory), the basic
assumption, we can infer that systems exist with systems in which all such systems are open. So
let’s examine the open vs. closed system as it relates to the Sales Department. One of the many
roles of the sales managers of the sales teams is to communicate results effectively. In terms of
systems, this is an example of an open system because the managers report all
communications, especially about results- to all appropriate leaders/members. On the other
hand, If they hold back information, they force the Reps to act as closed systems in which some
results are not always passed down to the reps but only kept for the purpose of upper-level
management. Therefore, open systems- a never-ending exchange process with surroundings
and closed systems- the rejection or is unable to accept information input from an external
system can be classified in the reference above. Nevertheless, the shortages and/or advantages
of communication to the sales reps can initiate either formal achievement (FA) and/systems
dissonance. In terms of system dissonance, the lack of proper communication to the sales reps
can create a dysfunctional, disturbing, malevolent, inadequate or unsatisfactory feature or
phenomenon of a system which renders it less functional or more inefficient than it could be.
(Harries p.5) Thus, in contrast, if things are properly communicated, a formal achievement can
be oriented by the results of everyone effectively assisting their roles for the company’s
mission. Since formal achievements are a role of incumbents interacting with each other
surrounded by a boundary and producing something (Harries p5) (service or product),)
appropriate responsibilities from all parties need to be properly positioned to obtain this kind
of achievement. However, it is important to note that even the sales reps acts as interfaces
within the subsystem because they can be considered the boundary between systems
(subsystems) which has the option of accepting or rejecting information. Not only is it
important that communication be carefully filtered; admitted /rejected to people of
appropriate position, it should create transforming of the same information from the recipients
of the filtered information to the recipients (customer) of the trade in a way that establishes
clear understanding and in result- creates effectiveness.
February 3, 2016

In summary, the Sales Department has a range of high expectations that they have to adhere in
order to generate the company’s general mission. Hence, as a result need satisfaction(s) are a
very desirable component among the people in the system. These, which arise out of social
interactions and are generated by role behaviors, interacting with other role behaviors. (Berrien
p. 45) In some instances, when people in the system lack this, status quos and ideals are
formed knowing and unknowingly. Unsatisfied people of such systems start to differentiate in
the “way things are” and “the way things ought to be”. (Harries p 13) Because all entities within
a system have to work together, often their differences (in terms of a diverse group) clash. For
example on the topic of time specific duties say a manager may impose that sales reps will
(status quo) have the tasks of a certain project completed within a day, whereas the sales reps
may oppose that they should be allowed to complete the tasks in two days, perhaps (ideal).
In addition, we can suggest that adaptation plays and essential role in the Sales Department
because all levels of workers have to be able to change both internally and externally. It is also
important to understand in this department, most circumstances will not produce favorability
amongst workers because of the high demand for customer-oriented goals, which is why it is
suggested that to be in a role in this department, one must have tough skin. Surely, therefore,
is one of the reasons candidates to perform in this department are selectively chosen in which
only qualified roles are allowed in certain levels (Berrien p.43) due to the high demand of a
results-driven department.