PepsiCo operates about 8 plants and hires an estimated 8,000 employees across the Southern Africa region. Several of their brands exceed R1 billion in annual sales revenue: Fritos, Lay's, Simba and Doritos just to name a few. Operations management is the focus of the firm—from designing products for new markets, to meeting changing consumer preferences, to adjusting to rising commodity costs, to subtle issues involving flavours and preservatives. The operations management function is under constant cost, time and market pressure. The Chairman and Chief Executive Officer Ramon Laguarta is determined to ensure that the organisation gains a significant market share over the next 10 years and in achieving this he has convened a meeting with the operations management function to develop a workable strategy for the organisation. As the operations management head based at Headquarters, you have been invited to this meeting and given a brief on the issues that you are expected to address during your interactions with the CEO.
PepsiCo operates about 8 plants and hires an estimated 8,000 employees across the Southern Africa region. Several of their brands exceed R1 billion in annual sales revenue: Fritos, Lay's, Simba and Doritos just to name a few. Operations management is the focus of the firm—from designing products for new markets, to meeting changing consumer preferences, to adjusting to rising commodity costs, to subtle issues involving flavours and preservatives. The operations management function is under constant cost, time and market pressure. The Chairman and Chief Executive Officer Ramon Laguarta is determined to ensure that the organisation gains a significant market share over the next 10 years and in achieving this he has convened a meeting with the operations management function to develop a workable strategy for the organisation. As the operations management head based at Headquarters, you have been invited to this meeting and given a brief on the issues that you are expected to address during your interactions with the CEO.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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The CEO is aiming at ensuring that PepsiCo is positioned as an industry leader in the coming 10
years and therefore expects the operations management function to play a pivotal role in the
development of new innovative products and through enhancing manufacturability and value
engineering. Considering this, demonstrate the scope of the product engineering and
development team in fulfilling this vision. For this detailed explanation you should assume that you are
the line manager of the team.
Transcribed Image Text:PepsiCo operates about 8 plants and hires an estimated 8,000 employees across the Southern Africa region. Several of
their brands exceed R1 billion in annual sales revenue: Fritos, Lay's, Simba and Doritos just to name a few. Operations
management is the focus of the firm—from designing products for new markets, to meeting changing consumer
preferences, to adjusting to rising commodity costs, to subtle issues involving flavours and preservatives. The operations
management function is under constant cost, time and market pressure.
The Chairman and Chief Executive Officer Ramon Laguarta is determined to ensure that the organisation gains a significant
market share over the next 10 years and in achieving this he has convened a meeting with the operations management
function to develop a workable strategy for the organisation. As the operations management head based at Headquarters,
you have been invited to this meeting and given a brief on the issues that you are expected to address during your
interactions with the CEO.
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