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As one of the largest beverage companies in the world, our mission is,
Vision of PepsiCo BD
At PepsiCo, we aim to deliver top-tier financial performance over the long term by
integrating sustainability into our business strategy, leaving a positive imprint on society and
the environment. We call this Performance with Purpose.
This vision means creating products that our consumers are eager to buy and our employees
are proud to sell.
- Pepsico.com
Slogan of PepsiCo BD
PepsiCo BD tends to change the slogan from time to time with respect to its target market,
seasons, trends, current situations etc.
This is to motivate youngsters and youth to be involved in social works that helps to improve
our country’s growth and economy.
Originated with tea plantations in 1885, TRANSCOM today is one of the leading and fastest
growing diversified business houses in the country employing over 13000 people. Not many
industrial groups in Bangladesh can claim a history of continuous business pursuits stretching
back over 125 years! Initially tea and later jute formed the backbone of the family business.
Transcom Beverage Ltd (TBL) is the exclusive PepsiCo Franchisee for Bangladesh. Having
affiliation with PepsiCo USA from before because of the tea business, Transcom BD
proposed to get the franchise deal. TBL owns and operates modern plants in Dhaka and
Chittagong for bottling the renowned soft drink brands such as, Pepsi, 7UP, Mirinda, Slice,
Mountain Dew, Pepsi Diet, Sting, Aquafina and 7UP Light. The company is emerging with
the motto to deliver sustained growth in Bangladesh and move towards dominant Beverage
Company, delighting & nourishing every Bangladeshi, by best meeting their everyday
beverages needs & stakeholders by delivering performance with purpose, through talented
people. For its' extraordinary and outstanding venture through excellence TBL has been
rewarded with several prestigious national and international recognitions.
Transcom Beverage Ltd. or PepsiCo is currently the market leader of the soft drinks
producing industry in Bangladesh. Its only competitor in the truest sense is Coca-Cola. In last
fiscal year of 2014-15, PepsiCo was 2nd in the race and overtook Coca-Cola this fiscal year of
2015-16 with a huge revenue difference of 23% and sales increase of 19% (approx.). Most of
the sales increased in the rural areas due to hot climate and greater availability of the product.
The sales forecasting proved opposite and orders were flooded. Amongst the products, Pepsi
has the best-selling numbers, followed by 7up, Mountain dew, Mirinda, Slice, Sting and
Aquafina. In urban areas, Mountain dew had higher sales than Pepsi. Sting had a greate run
Sales
Pepsi
Mountain Dew
7UP
Mirinda
Slice
PepsiCo BD or Transcom Beverage Ltd is totally an individual entity and does not share
operational management with any other part of Transcom Group. Transcom Beverage Ltd.
has its organogram provided by the Human Resource team and approved by the center
management.
Managing Director
Deputy Managing
Director
District Sales
Production Manger Finance Manager Accounts Manager
Manager
Sales Representative
Top managers of Transcom hold the power of decision making and their
decision is maintained. In other words, it’s a formalized firm. The central top 7
managerial post holders for Transcom Beverage Ltd. are,
1. G.Q. Chowdhury
3. N.K. Bhoumik
General Manager of Finance, Transcom Beverage Ltd.
4. Shamsul Alam
General Manager of Production, Transcom Beverage Ltd.
5. Asrar Alam
General Manager of Sales, Transcom Beverage Ltd.
6. Arif Hossain
General Manager of Accounts, Transcom Beverage Ltd.
7. Anisur Rahman
National Sales Manager, Transcom Beverage Ltd.
External Factors:
The term External factors/environment refers to the forces outside the organization that affect
its performance.
No business operates in a vacuum. Even the most powerful monopoly - a business with
essentially no competition - needs to pay attention to factors outside the organization that are
beyond their control. These factors impact each business and industry differently; also it can
affect the firm directly or indirectly.
- www.study.com + Slides
Laws:
State, local or federal changes in the laws can have a direct impact on your business if the
service or product becomes highly regulated or outlawed. Cigarette manufacturers learned
If law passes to prevent youngsters to drink soft drinks, or Govt. imposes regulation on soft
drinks – then Transcom Bverage Ltd will face serious problem and will not be able to sustain.
Trends:
While you may spend a good part of your profits on marketing in the hopes of favorably influencing
trends, some are beyond your control. An increase in technology use by your customers may be built
into your strategic planning, but you may not have planned for the widespread use of social media
that could affect your business. Celebrities who become advocates for a cause or decide to boycott a
certain business practice can start a trend that could seriously affect your business if you're on the
wrong side of the trend.
Going with the flow id really important TBL. Which person to be selected as an ambassador, where
to promote the product, whom to target, who has which perspective to a certain act are all scenarios
that depend on trend. If a competitor uses the trend before then it will affect the sales till the trend
goes off.
Weather:
If man could control the weather, vacation resorts would know exactly when to charge the
highest room rates. Storms, tornadoes, hurricanes and wildfires are outside your purview of
controllable business factors. In addition to the direct impact a storm may have on your
ability to open your doors at any given time, widespread weather events often carry a
substantial trickle-down effect to a wide range of businesses.
Weather is critical for soft drinks industry. TBL has more sales on hot days compared to cold
or rainy days, only because it has more demand when it’s hot outside.
Politics:
Political forces include regulatory requirements, legal concerns, and any impact from the
current political climate of the country or region where the business operates. For example,
Political riots can disrupt transportation which will affect the sales of goods. Goods might get
damaged as well. Coping up with new political thoughts is tough as well. Proper certification
is also needed. TBL has all necessary documents and has never had a single issue with the
Govt.
Economy:
Any change in the economy that impacts the supply or demand for a company's products and
services fits into this category. Sometimes they have a positive impact, like when a
country's gross domestic product (GDP) increases more than expected. Other times,
economic forces can hurt a business, like when consumer confidence drops, and potential
customers spend less and save more.
In the inflation few years ago, TBL faced tremendous loss due to low sales. Because of
inflation, buying capacity reduced and sales went down.
Technological:
Advancement in technology has had a dramatic impact on the business world over the last
two centuries, and especially over the last 30 years. Anticipating Changes in technology and
capitalizing on those changes can become a competitive advantage – like when apple
anticipated the shift from CDs to electronic media and introduced IPod. That literally saved
them from going bankrupt.
As technology advances, it is critical that TBL advances alongside it. This helps to utilize all
available source of communicating with the customer and increase sales. Not having proper
use of technology had a toll on TBL when it launched Pepsi Blue without proper
communication and failed miserably.
The external factors that affect a firm in such a manner that its results are immediately
shown, then those factors are Direct External Factors.
They are:
Customers:
Customers are the most important thing in a business. For TBL, the whole is its customer as it
does serve the mass population. Even a slightest change in even the smallest of customer
segment can result in sales loss or competitors gain.
- Smallbusiness.chron.com
Competitors:
A business rival of a firm supplying a particular good or service which offers buyers an
identical or similar product. A company is your competitor if customers value your product
LESS when they have the other company's product than when they have your product alone.
Many companies spend a lot of time focusing on similar companies in their industry -
ignoring alternatives in other industries. This is a waste of time, effort and resource. It is also
likely to result in the alternatives stealing market share from the company.
Coca-Cola, RC, URO, MOJO, Clemon, Virgin etc. are Pepsi’s competition. But according to
theory, only Coca-Cola lives upto the be a competitor. If by using any sort schemes, R&D,
HR, discount theories competitors are able attract the customers that will create havoc for
TBL. So, TBL has to stay creative and on the go all the time.
- marketing-intelligence.co.uk
A party that supplies goods or services. A supplier may be distinguished from a contractor or
subcontractor, who commonly adds specialized input to deliverables. Also called vendor. A
good relationship with the supplier is needed so that they will make sure to help when its
needed.
Without supplies and resources no company run efficiently. It is a crucial part of business that
good supplier is found and kept happy. Loyal and good suppliers will deliver resource on
time and will ensure better quality.
- Businessdictionary.com
Human Resource:
Human resources are the people who make up the workforce of an organization, business
sector, or economy. "Human capital" is sometimes used synonymously with "human
resources". A human resources department (HR department) of a company performs human
resource management, overseeing various aspects of employment, such as compliance
with labor law and employment standards, administration of employee benefits, and some
aspects of recruitment and dismissal. They are analogous in this respect to the productivity
manager of a battery egg unit.
Without proper workforce huge factories and high-tech machines are useless. TBL has about
13000 employees working under it. If this power is decreased or shifted elsewhere, TBL
would have to pay dearly before being able function properly again. Shortage og human
resource can become a problem as well.
- Wikipedia.com
The internal business environment comprises of factors within the company which impact the
success and approach of operations. Unlike the external environment, the company has
control over these factors.
- http://pestleanalysis.com
Management levels,
Technical management,
Operational factors,
Financial condition,
Human Resource,
Corporate culture,
R&D and
CSR etc.
The top 7 members in TBL’s organogram are the top level management. They are the ones
who make all the rules, set all the goals and are responsible for conveying directions.
The senior managers, factory managers etc are mid-level management for TBL. The get
instructions from the top, plan ideas and gets them approved, synchronize with first level and
get outputs.
This level works directly with the workers and gets workers motivated and involved in work.
It’s their duty to see the work to the end and to observe employees.
Technical Management:
Technology management can also be defined as the integrated planning, design, optimization,
operation and control of technological products, processes and services, a
better definition would be the management of the use of technology for human advantage.
TBL runs 3 major state of the art factory and bottling plant. This need capable people to run
and to maintain. It can be said that it’s almost automated.
Operational Factors:
Financial environment is a part of an economy with the major players being firms, investors,
and markets. Essentially, this sector can represent a large part of a well-developed economy
as individuals who retain private property have the ability to grow their capital. Firms are
any business that offers goods or services to consumers. Investors are individuals or
businesses that place capital into businesses for financial returns. Markets represent the
financial environment that makes this all possible.
Financial condition of TBL is currently really strong. But it did face ups and downs along the
way. A company like TBL needs to be financially sound at all times to maintain their
existence.
- Academia
Human Resource:
Human Resource management is the term used to describe formal systems devised for
the management of people within an organization. The responsibilities of a human resource
manager fall into three major areas: staffing, employee compensation and benefits,
and defining/designing work.
-Encyclopedia
Corporate Culture:
Corporate culture refers to the beliefs and behaviors that determine how a company's
employees and management interact and handle outside business transactions.
Often, corporate culture is implied, not expressly defined, and develops organically over time
from the cumulative traits of the people the company hires.
Each company has its separate norms. For TBL, a corporate stature is always preserved. It is
a formal institution and everyone in every sector keeps it that way.
- Investopedia
R&D:
Research and development (R&D), is a general term for activities in connection with
corporate or governmental innovation. Research and development is a component of
TBL has huge expenditure in R&D. Soft drinks industry is totally based on scientific
creativity. Without regular inventions, market will become dull and start to decline. To stay
in the business and ahead of the competitors, R&D needs to be at its peak.
- www.ucl.ac.uk
CSR:
Often viewed as a key step related to planning, SWOT analysis is deceptively simple despite
the immense value it delivers. The system combines information from the environmental
analysis and separates it into two components: internal issues (strengths and weaknesses)
and external issues (opportunities and threats).This level of analysis enables an organization
to determine whether there are factors present that will aid in the achievement of specific
objectives (due to an existing strength or opportunity) or if there are obstacles that must be
overcome before the desired outcome can be realized (due to weaknesses or threats). The
technique is credited to Albert Humphrey, who led a convention at Stanford University in the
1960s and 1970s using data from Fortune 500 companies.
- http://www.businessdictionary.com
Strengths describe the positive attributes, tangible and intangible, internal to your
organization. They are within your control.
Weaknesses are aspects of your business that detract from the value you offer or place you at
a competitive disadvantage. You need to enhance these areas in order to compete with your
best competitor.
Opportunities are external attractive factors that represent reasons your business is likely to
prosper.
Threats include external factors beyond your control that could place your strategy, or the
business itself, at risk. You have no control over these, but you may benefit by having
contingency plans to address them if they should occur.
Strength:
It’s the value of the brand. When a customer sees Pepsi, he/she will automatically
drop any other brands product to have it. This is just because of the fame and trust that
Pepsi has created amongst the customers. It’s an international brand with consumers
in almost 70% area of the earth.
• Market leader
TBL/Pepsi is currently leading Bangladesh’s soft drinks industry with almost 23%
more sales than its closest rival, Coca-Cola.
• Quality of products
TBL has all the necessary license and certification from national and international
agencies like BSTI, EPB etc. TBL has also awarded many times for its quality.
• Value pricing
TBL has the lowest pricing being an international franchise. It even charges less than
coke in some similar units.
TBL has the most successive financial position. It has never been number 3. Till date,
there are no instances where TBL had to be on the verge of bankruptcy.
Apart from a few times when situation was really bad, TBL has always maintained a
good profit margin. In fiscal year 2015-2016, it has made a profit of 30%.
TBL has its own fleet of distribution vehicle and PepsiCo. USA’s partial distribution
channel servers. This makes TBL the only soft drink company in Bangladesh to have
high end distribution methods and softwares.
• Motivated employees
TBL believes that employees have to be motivated to give the best output and to do so
they never fail to fulfill the employee’s basic expectations. After the basic is covered,
they tend towards verbal rewards, bonus, praise, promotion etc. The employees here
get many facilities and hardly anyone ever quits.
• Up-to-date machines
TBL has the most advanced bottling plant and conveyer system in Bangladesh. Due to
high profit and international ties, TBL never stops to give the best quality product
through whatever means necessary.
Weakness:
Transcom Beverage Ltd. Page 18
Lack of brand awareness
Being an international franchise and global brand, TBL hardly does any
campaign. They don’t get involved in much brand awareness to make new
customers aware of them.
The ads TBL airs are not that touchy. They are too straight forward and does
not relay any connection to anyone.
TBL relies on their brand image way too much. Only brand image will not last
much long.
The job structure of TBL is highly formalized. Even though interacts are good
between upper and lower management but it seems fake and looks like an act.
Mid & low level managers are only there to follow orders. They are not given
any power to exercise. Everything is very precise and no mistake or error will
be granted.
Opportunity:
TBL has great political ties with all the parties and other Govt. officials. This
helps to get favors, permissions and authorizations easily.
Emerging trends
Pizza Hut, Pizza in, Sbarro, Coldstone, KFC and other franchise support TBL
and only TBL beverages can be seen in those café and restaurants. This helps
to get exposure and definite sells.
Even now there are places where no beverage brand has started to sell their
products. As technology is improving, this places will be highly in demand to
be potential markets.
International advertising
Threat:
World economy is really fragile. It is a sensitive case for TBL. Inflations, GDP
downfall etc. affects the production and sells negatively.
Changing climate
Climate is important for beverage goods. No one would want a soft cold drink
during winter or rainy season. If the climate changes it will harm TBL.
Demographic change
When one generation people complete a stage of life and enter into a new one.
They change most of their habits as well. Presently there are more 20% young
people under 30 in our population. But when this generation turns 40, their
consumption soft drinks will reduce and TBL will lose 20% of market share.
Competitors R&D
It’s vital to keep up with competitor’s research and developments. Any plus
point in their product will attract customers making TBL lose their share.
Management Issues:
They do not take employees without them being experienced. They never take interns.
This is known as Preliminary Control.
Every step of employee is monitored by seniors and evaluated, which is Concurrent
Control.
TBL holds previous works as base to evaluate new found results or output. This is
Feedback Control.
Being a complex and formal firm, TBL is segmented to the smallest possible tasks. By
division of labor, TBL wishes to perform efficiently and cost effectively. TBL uses the
underwritten criteria’s to form departments:
Divisions of labor
Work is divided and subdivided into smallest tasks to achieve efficiency and correct use of
time. Saves money as well by not having to pay one individual more to work.
Unity of direction
Centralization of authority
Unity of command
In other words, to work resourcefully, TBL uses all 4 of these criteria and achieves the
highest output. TBL has 4 main departments under the Managing Director. Those are:
These departments are then sub divided in small parts for individuals. There are also zone
divisions and district division. Such as, Dhaka North Zone, Chittagong Zone etc. The
factories also have divisions. Such as:
1- Factory manager
2- Assistant FM
3- Production manager
4- Line manager
5- Worker etc.
Someone who exerts influence over others, influence to reach at a desired destination is a
leader. TBL mostly believes that a leader is a leader by birth. An individual must have certain
qualities to be a leader. This is known as the Trait theories of leadership. Trait theories are
composed of leaders’ personality, physical, and intelligence characteristics. These traits are:
Drive
Motivation
Integrity
Self-confidence
Intelligence
Knowledge
If an individual have this qualities but cannot manage to get results, he/she is not a leader.
TBL also follow Directive Path-goal Theory. This theory states that leaders or in this case
superior officers will give all the directions and give the employees serious and hard
situations to handle. Here employees follow whatever instruction that has been given.
Objectives of PepsiCo:
TBL has almost no female employees. Apart from workers, there are only 59 female
employees there. With a workforce this huge, the amount of female employee is very meager.
Within the next 3years, the firm wants to increase the female employee population by 20%.
The process has already started with the recent Job circulation. From now on, in every 4
months, there will be all-female job interviews. But if no candidate meets the job
requirement, she will not be hired.
Extend social media (Facebook, YouTube) reach to at least 5000 people per month till
2022.
The TBL Facebook page or the PepsiCo Bangladesh facebook page has a little more than
1000 views and likes. These pages are not active enough. There is no post regarding
anything. Facebook and youtube is a great social media source. To not use them is not
efficient. So, there will be dedicated people hired for the social media promotional works and
it will made sure that 500 reach is done every month to achieve around 300000 reach within
2022.
In this mature market of soft drinks, sharing market is tough. To survive and earn more profit,
it has to be made sure that TBL starts penetrating the market to gain more market share. If by
2020, 10% market share is gained than TBL will own 54% of the market share and will
sustain longer. Through penetrating market pricing and promotional pricing, this will be
achieved in 4 years.
A new product will be developed and launched by 2021. This will be new addition to the
product line and will not be any other products product length. TBL has one of the best R&D
team. It also has SK+F as sister concern. This will help increase work efficiency and time.
With right communication and work, it’s possible to device a serum in 2 years. Mountain
dew serum was made with 2.5 years of research. So having at time span of 5 years will make
it easy to work as well. This can also be done by cutting investment from other sectors and
investing in R&D.
Have pay raise for the workers in factories by 15% within 2 year.
As TBL has made 30% profit this year and if this track is possible to keep, then within the
next 2 years, TBL can give workers a pay raise. This will mostly work as a motivation to
work harder to produce better output. With better output a pay raise will be introduced.
Transcom Beverage Ltd. is undoubtedly a formal perfectionist firm. It seeks for perfection in
every single sector and work. They maintain strict hierarchy and centralized power, yet there
is job satisfaction and employees are motivated. Then again, the whole sector there is a very
boring and there is no enjoyment. It is just go, work, go back home. There is no creativity
involved. Only task is to follow order that’s given and do it as perfectly as possible. This is
what makes this firm a unique one, where an employee might be bored but never unsatisfied.
Transcom Beverage Ltd. is a market leader, has huge support, quality and market share. It has
division of labor in all the sectors. Seniors value the comments of juniors. It uses the mixture
of different management theories. Altogether, it’s a great firm to work in and an ideal firm
that abides by most of the management theories and mixes to attain maximum profit through
quality product.
From Left to Right: Redwan Rafi, Mezba-Ul-Mokarrobin, Natasha Ahmed, Fayruz Sajed Al
Amin, Al HAbdan Ebne HAbib