When examining PepsiCo it is important to acknowledge that the organisation has many internal and external stakeholders. These stakeholders can vary from those with minority interests

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BS3100 Strategic Management

Executive Summary

PepsiCo are strongly involved with its stakeholders and aims to continue the successful working relationships. Organisational culture is based on values and guiding principles and strong emphasis is placed on its people. Through both its stakeholders and its organisational culture, PepsiCo believes this will help achieve their strategy of sustained growth.      

                                                

Introduction

Before dealing with the organisational context of PepsiCo’s stakeholders, it is useful to provide a definition of this term. Stakeholders can be defined as groups or individuals who hold an interest in an organisation to further their own goals, but also where the organisation, in return, is dependent on those groups or individuals. This may be seen as an inter-dependent relationship. Both will have an interest in the success of the other which in turn, will help deliver intended results for both parties.

When examining PepsiCo it is important to acknowledge that the organisation has many internal and external stakeholders. These stakeholders can vary from those with minority interests, such as members of the public, to major stakeholders, such as the Chief Executive Officer. It is unlikely that minority stakeholders will have a significant degree of influence in the firm’s strategy. Instead, it will be the major stakeholders who are able to influence the organisation’s strategy.

Below is a diagram of the Stakeholder Mapping: Power/Interest Matrix (figure 1). This concept is being used to demonstrate the level of interest and influence from the different stakeholder sector.

Stakeholder Mapping: Power/Interest Matrix

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Figure 1                

Level of Interest

Low                                    High

Low

High

The diagram illustrates the major stakeholders in PepsiCo are the CEO, the Board of Directors, and the shareholders. It may also be argued that national Governments of where the firm operates are key stakeholders, as a change in legislation that impacts the firm, may require it to alter its strategy within that particular geographical location.

Major stakeholders can also be termed “Key Players”. They ...

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