Multinational company management (1)


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Multinational company management (1)

  1. 1. MULTINATIONAL COMPANY MANAGEMENT Group 9 Topic: Overview about PepsiCo and its business in Vietnam
  2. 2. MEMBERS OF GROUP 9: Ngô Thị Thanh Tâm 1 Nguyễn Thị Thảo 4 Vũ Thị Thanh 3 Khổng Thị Thu 10 Nguyễn Thị Thu Thảo 5 Nguyễn Tịnh Tâm 8 Đỗ Thị Thanh 2 Vũ Thị Thơm 9 Phùng Thị Thảo 6 Trần Thị Thảo 7
  3. 3. CONTENTS II.Business in Vietnam A. General environment B. Strategies in Vietnam C. Human resource management III. Conclusion I. General view about Pepsi.Co
  4. 4. GENERAL VIEW ABOUT PEPSI.CO <ul><li>PepsiCo is an America multinational company headquartered in Purchase, New York, United States. PepsiCo was formed in 1965. </li></ul><ul><li>It leads in convenient snacks, foods and beverages with revenues of more than 60$ billion and over 285000 employees from almost over the world. </li></ul>
  5. 5. GENERAL VIEW ABOUT PEPSI.CO <ul><ul><li>PepsiCo is comprised of PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, PepsiCo Middle East, Asia and Africa. </li></ul></ul>
  6. 6. GENERAL VIEW ABOUT PEPSI.CO <ul><li>Pepsi main product: drinks ( soft drinks and juices), snack, instant food, </li></ul><ul><li>Pepsi main brands name: Pepsi for soft drinks, Frito Lay for potato chip and other snack, Tropicana for fruit juices, Quaker for instant and other food, Gatorade for sport drink. </li></ul>
  7. 7. GENERAL VIEW ABOUT PEPSI.CO <ul><ul><li>PepsiCo Vietnam is a branch of PepsiCo Asia,Middle East and Africa </li></ul></ul><ul><li>Main headquarter in Vietnam: 5 th floor, Sheraton building, 88 Dongkhoi , Hochiminh city </li></ul><ul><li>Branch office in Hanoi: number 1 Phuong mai , Dong Da, Hanoi. </li></ul>Company Name
  8. 8. GENERAL ENVIRONMENT Natural environment The economic environment The political – legal environment Technological environment Cultural and social environment General environment 1 4 2 3 5
  9. 9. THE ECONOMIC ENVIRONMENT <ul><li>Good economic growth rate  push up production </li></ul><ul><li>The steady economic will create the favorable environment for enterprises </li></ul><ul><li>High inflation: The CPI in 12/2010 increased up toto 12%  business activities would not be predict easily cause of the changing of input price </li></ul>Company Name
  10. 10. THE ECONOMIC ENVIRONMENT <ul><li>High banking interest: make it difficult in accessing with loans from banks </li></ul><ul><li>The economic infrastructure and transportation system: is upgraded, innovated synchronic. </li></ul><ul><li>PepsiCo needs to cooperate and take this advantage to build good distribution channels. </li></ul>
  11. 11. THE POLITICAL – LEGAL ENVIRONMENT <ul><li>Viet Nam has stable security and politic which create a safe environment for enterprises </li></ul><ul><li>Equality in business market creates good conditions for Viet Nam Pepsi co’s steady development. </li></ul>
  12. 12. CULTURAL AND SOCIAL ENVIRONMENT <ul><li>Soft drink market in Viet Nam is the potential market for both domestic and oversea exploration. </li></ul><ul><li>The changing in the way Vietnamese select soft drink special the young. </li></ul><ul><li>Vietnamese still have tea culture </li></ul><ul><li>The fast food development market: Pepsico cooperated to supply fast food service and accompage soft drink accompagner </li></ul>
  13. 13. TECHNOLOGICAL ENVIRONMENT <ul><li>Scientific- Technology environment for PepsiCo in Vietnam: </li></ul><ul><li>- Does not have to pay costs for technological transference. </li></ul><ul><li>- Has the most advanced technologies </li></ul><ul><li>- Has to concern over training human resources in the country effectively </li></ul> Company Name
  14. 14. NATURAL ENVIRONMENT <ul><li>Vietnam is characterized by a monsoon tropical climate which is hot, humid and rainy but differentiate in different regions </li></ul><ul><li>The difference: generating the richness and diversity of demand and consumer tastes. </li></ul> Company Name
  15. 15. NATURAL ENVIRONMENT <ul><li>Environmental pollution: is also getting more and more attention of society  PepsiCo need a special attention to the environmental factors. </li></ul> Company Name
  16. 16. Three level strategies <ul><li>Corporate level strategy: Vertical integration </li></ul><ul><ul><li>PepsiCo is comprised of PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, PepsiCo Middle East, Asia and Africa. </li></ul></ul><ul><li>Business level strategy: </li></ul><ul><li>PepsiCo had a cautious research and knew Vietnamese economy and politics in order to compete local manufacturers. </li></ul><ul><ul><li>In the 1990s, local economy was underdeveloped </li></ul></ul><ul><ul><li>  Pepsi launched great discount promotion, attracted Vietnamese’s attention  Their strategies focused on Vietnamese consumption trend which is interested in cheap goods and discount products </li></ul></ul> Company Name
  17. 17. Good functional level strategy <ul><li>Pepsi expanded their distribution network to the North and obtained many market share from Coca cola by distributing their products to coffee shops, restaurants or stores. </li></ul> Company Name
  18. 18. Good functional level strategy <ul><li>Patriotism, national pride and the love of sports  launched many events that related : held “ football festival” through a TV show, launched the slogan </li></ul><ul><li>With good managers and marketing staffs who are well – informed about the Vietnam soft drink market and Vietnamese demand </li></ul><ul><li>Always made good marketing strategies, attractive and unique commercial films </li></ul> Company Name
  19. 19. Three level strategy <ul><li>Took full advantage of Vietnam conditions to entered successfully into Vietnam soft drink market and gain huge market share in our country. </li></ul> Company Name
  20. 20. Entry strategy model   <ul><li>PepsiCo entered our country through entry strategies are join venture, M&A and subsidiary </li></ul><ul><li>In 1994, PepsiCo teamed up with International Beverages Company  to manufacture and distribute Pepsi-Cola and 7Up products in Vietnam </li></ul> Company Name
  21. 21. Entry strategy <ul><li>At the same time, PepsiCo's Foods and Beverages merged  impact on both strategy, operating principles of PepsiCo Vietnam </li></ul><ul><li>Pepsi Vietnam has quickly adopted the new strategy, expanding its business functions and portfolios to manufacture and distribute both Foods and Beverages (F&B) in Vietnam </li></ul> Company Name
  22. 22. Entry stratey <ul><li>PepsiCo Vietnam has successfully in: </li></ul><ul><li>Operating in compliance with its corporation's world-class standard and the local regulations as well. </li></ul><ul><li>Sustaining its market leadership position driven by impressive growth significantly surpassing that of the F&B industry </li></ul> Company Name
  23. 23. C. Human resources management <ul><li>At PepsiCo Vietnam, HR supports & develops their most important asset. </li></ul><ul><li>HR process begins with staffing the Organization </li></ul><ul><li>Then following by building Organization Capability </li></ul> Company Name
  24. 24. 1. Recruitment <ul><li>PEPSI Vietnam employs through both formal and informal ways of recruitment. </li></ul><ul><li>Recently, a new way of recruitment: Online Applications </li></ul><ul><li>Recruitment process is improved in terms of efficiency and convenience with the use of technology </li></ul> Company Name
  25. 25. Sources of Recruitment <ul><li>PEPSICO uses both Internal and External Recruitment. </li></ul><ul><li>But the priority is given to the internal if the employee has the capabilities, required by the management for working on that post. </li></ul> Company Name
  26. 26. Recruitment Methods <ul><li>Internal </li></ul><ul><li>“ Job Posting”: employees of organization are preferred but if the organization feels that the employee is not competent enough then they go for external methods. </li></ul><ul><li>Such announcements are made through bulletin boards, memos and other internal sources. </li></ul><ul><li>External </li></ul><ul><li>Prefers advertising through newspapers and their official website for their recruitment purposes. </li></ul> Company Name
  27. 27. Selection process <ul><li>1. The Application </li></ul><ul><li>2. Written Exams </li></ul><ul><li>3. Performance Exams </li></ul><ul><li>4. Specialized Testing </li></ul><ul><li>5. The Panel Interview  </li></ul><ul><li>6. The Selection Interview </li></ul> Company Name
  28. 28. 2. Training and development <ul><li>Trained and developed many seniors and fast track managers and supervisors. </li></ul><ul><li>Provide full opportunity to employee to develop themselves & train them as the requirements of their job. </li></ul><ul><li>Provide the training session in the form of seminars, classroom training courses and workshops. </li></ul><ul><li>Pepsi Vietnam often organize Pepsi management trainee program  to recruit and train potential candidates. </li></ul> Company Name
  29. 29. <ul><li>Respect workforce. - Dawn Hudson, President and CEO of Pepsi-Cola North America states, “building a diverse workforce is not just a ‘nice to do’- there is a clear and obvious business imperative” - Diversity and inclusion are seen as catalysts to innovation and growth. </li></ul> Company Name Management policies
  30. 30. Commitment to diversity is echoed on the PepsiCo website: “ We view diversity as a key to our future… Offering a workplace where diversity is valued helps us build the top-quality workforce so crucial to our success -- by enabling us to attract and retain great people from a wide spectrum of backgrounds.” Company Name Management policies
  31. 31. - PepsiCo makes an extra effort to retain its diverse workforce by measuring inclusion efforts. - Continue to recruit and retain those outside the traditional umbrella of diversity – beyond women and minorities - Organizational Health Surveys and Pulse Surveys allows all employees to voice any concerns they may have. Company Name Management policies
  32. 32. Performance appraisal <ul><li>Job evaluation : yearly, basis under 360o method </li></ul><ul><ul><li>Competent employees: rewarded by promotions, bonus, increments and annual holidays </li></ul></ul><ul><ul><li>Using different questionnaires to judge employees’ personalities </li></ul></ul><ul><li>Overtime payment : is pay for workers who are working more than their working hours mostly overtime payment is given to low level staff. </li></ul>
  33. 33. Thank You !