Operations Management in Pepsico

Executive Summary:

Analyzing PepsiCo’s history through the media we can find that PepsiCo was adulterated with pesticides. This news spread globally like a wildfire. The negligence by the operations department of Pepsi affected the organization in terms of monetary value. It lost its trust and brand name. This turn of events created a buzz and national alert. The competitive brands took this event as opportunity to rise up in the market. In addition, the investors started to be aware of the importance of quality and sound operations in the management department. This questioned the existing operations management techniques that were being used and prominent in the Pepsi industry. Since then, Pepsi has tried to maintain its reputation by levying importance in the maintenance of the quality processes that were already existent in the organization. In addition, it reissued strict monitoring and checks relating to quality of PepsiCo. As the reflection of the process map started taking shape the various processes took place.

SHAMIM & COMPANY (PVT) LTD takes effective measures for the quality control. Production of the company is according to the standards set by PCI. So the company is very much concerned about quality. Quality of disclosures was adequate in regards to voluntarily giving information to investors. After review we determined that there were no main causes for alarm. While there were some activities that looked suspicious, after further investigation we determined them to be of minor consequence. Finally, screening ratios were used to determine if there were any potential manipulations. Overall these ratios were fairly consistent over the years. Also, comparing PepsiCo to the industry further supported our decisions, in that they were consistent with that of competitor’s ratios. Furthermore, Pepsi has implemented well-defined practices and guidelines to ensure highest quality of their soft drinks. While they managed to set high...