An Auditing Plan/Balanced Scorecard
A company’s effectiveness is determined by its strategic plan and how it implements it. Likewise, an organization’s current state and actions determine its future trajectory. PepsiCo aims to mitigate its weaknesses and risks using its strengths and opportunities. PepsiCo’s main rival is Coca-Cola in the arena of competition. PepsiCo is interested in manufacturing using organic components to maintain its customers’ health and wellness concerns. The company has a list of objectives it has to accomplish over the next three years. There are three areas of focus in terms of measurable objectives for the firm. Beer category expansion and leading in this category, its ecosystems’ monetization and digitization, and business optimization are its strategies in action. PepsiCo plans to join the beer-making market within the next three years. Natural and local ingredients will be used to make this beer, and the recipe can be changed.
PepsiCo is interested in boosting the value of its existing assets while expanding its global reach by digitizing and monetizing its ecosystem. PepsiCo intends to accomplish this goal by digitizing and monetizing its market dictation routes (Sehrawat, 2019). The company plans to improve its technical capabilities within three years to unlock several opportunities for its ecosystem. Consequently, PepsiCo is utilizing biotech projects involving numerous corporations.
The company’s third quantifiable objective is to improve its operations. According to PepsiCo, the company’s well-known and successful brands have created a distinct ecosystem throughout the world (Sehrawat, 2019). As a result, strict adherence to resource allocation must be used to maximize profitability and promote growth. The company plans to relocate part of its resources out of the United States to invest in emerging markets like Mozambique and Nigeria while boosting the beer industry in China operations.
The audit plan will be responsible for tracking the objectives over the next three years. Listing down the objectives will be significant in clarifying what is ahead for the company. Small tasks will be created for the significance of hitting each target and objective set. A reward system and schedule will effectively ensure that all the strategy requirements are met in time within the course of the three years. There might be instances when the company will fall off track of the set strategy. Other cases will be when other tasks take longer than planned to be completed. There will be a need to use motivational skills to tackle the challenges and continue working on the company’s overall goals.
The objective’s success will be assessed based on the unit installations’ profitability. Planned auditing is a list of objectives for evaluating the efficacy and proficiency of acceptable and attainable actions (Turetken et al., 2020). A review strategy will be implemented over the following three years to guarantee that the goals are realized. To achieve a balanced scoreboard, customer loyalty, customer retention, quality, and revenue will be considered. Pay will rise at a comparable market entry rate in the next three years. The project’s progress will be evaluated regularly by analyzing the different indicators and components that characterize the strategy for achieving its objectives. The chief risk plan will protect the affiliation’s obligations.
An emergency approach includes a thorough examination of alternative factors. The factors included the crude materials, new sources of dangerous compounds used during the manufacturing process, and lower prices to attract more customers. The company should decide its overall direction and authority by examining the board structure’s conformity with the strategy to ensure they align with the set objectives. A detailed accounting report for the next three years is required for the consumers. Businesses must always compete together to maintain constructive competition with their rivals.
When meeting each customer’s unique needs, they must operate independently and focus on specialized networks and markets. The company’s mission is to make its consumers happy while providing for their health (Jallow, 2021). Therefore, the business must regularly gather customer feedback and ensure that its products always meet the needs of its customers. PepsiCo needs to work together to keep its employees, clients, and investors happy. All three are important shareholders who help keep things running well at the company. The demands of employees, consumers, and investors must be regularly monitored. The company has to keep the investors, employees, and customers’ needs at heart throughout the three years.
The status of the economy directly impacts PepsiCo’s financial situation. The organization has recently increased its global reach and specialized capabilities. Future financial stability could be achieved through modest growth and continued technological advancement (Jackson, 2019). Because of this, PepsiCo’s current practices should address collaborative competitiveness, autonomy, and shared management policies and ensure they are best followed, preserved and enhanced throughout the years. PepsiCo’s strategy should reduce operating costs while addressing the food industry’s increasing demand for business outsourcing. Keeping a close eye on the relationships between PepsiCo’s various operating companies can help the company save money.
A Contingency Plan
Even if everyone aspires to succeed, failure is inherent in life. Many difficulties can be avoided if appropriate planning is followed, but a few are unavoidable (Pavlov et al., 2018). For example, natural disasters such as floods or earthquakes can wreak havoc on a business. Most valued customers can leave, the database can be hacked, or the system fails. A foresighted businessman is prepared for a surprise setback.
Management or executives design a contingency plan to help their organization deal with a probable negative situation in the future. Planned contingency measures are put in place to reduce risk and speed up catastrophe recovery (Reis, 2019). The plan can guarantee the continuity of corporate functions. In an unexpected event, a contingency plan provides a method for resuming business. It is a backup strategy, also known as a disaster recovery strategy or Plan B. The contingency plan will involve several steps as listed below:
Step 1: Start by Identifying and Documenting the Most Significant Dangers
PepsiCo cannot achieve to prepare for anything if the company does not know what is ahead of them, the dangers there are and the risks ahead. Therefore, as a group, the company should brainstorm and analyze what could go wrong for the firm in the upcoming strategy implementation for the next three years. The company should consider all possible dangers to the company, such as natural calamities, security breaches, and shifts in its workforce and personnel.
For instance, when brainstorming hazards, the team can utilize a mind map to organize and categorize them and then share it with your company for further input or ideas.
Step 2: Prioritization of Risks Based on their Severity
After brainstorming and creating a list of possible hazards, the company should prioritize the risks based on the ones that would have a greater impact on the company. For example, let us assume that the Pepsico Company’s location is at a lower risk of earthquakes. In that case, one should put it on the back burner in favor of more pressing matters such as competition and profitability challenges.
Step 3: Compilation of Sources that will be Needed in Times of Calamity
In the case of a calamity, PepsiCo should list the critical resources that the company has at its disposal. The resources may include labor, materials, software, and emergency contact information are all needed resources (Ritchie & Jiang, 2019). The list will be effective during calamity to ensure it is dealt with without affecting the business’s productivity. The elements on this list should be ranked in order of significance.
Step 4: Make Arrangements for Every Possible Situation
Contingency plans should be tailored to the specific hazards that the company is facing. Having prioritized a list of potential risks, you should prioritize your tactics and develop contingency plans for the most serious dangers to your organization (Reis, 2019). Loss minimization should be the number one priority for PepsiCo. In an emergency, the contingency plan should provide step-by-step instructions on how to handle the situation. In addition, it should have the most current contact information for the most crucial individuals.
Step 5: Communication of the Approach to the Company’s Staff
As soon as the contingency plans are in place, PepsiCo should ensure that all employees and important stakeholders easily access the documents. Communicating the plan to the responsible parties is key for proper implementation. Contingency plans can be stored in a document management system (Pavlov et al., 2018). An example of such a system is Bit.ai, and the document can be made available to all organization members.
Step 6: The Company Should Revisit its Plan
Having a backup plan is not always a given and effective plan. However, managers can make necessary revisions to a sound contingency plan by inspecting and evaluating it regularly. In addition, new employees, software, procedures, and company practices necessitate revisions to its contingency plan. To prepare for the worst-case scenario, managers who understand the importance of documentation utilize platforms like Bit to create collaborative, interactive, and strong contingency plans for their team.
References
Jackson, T. (2019). The post-growth challenge: Secular stagnation, inequality and the limits to growth. Ecological economics, 156, 236-246.
Jallow, D. (2021). A strategic case study on PepsiCo. Available at SSRN 3828353.
Pavlov, A., Ivanov, D., Pavlov, D., & Slinko, A. (2019). Optimization of network redundancy and contingency planning in sustainable and resilient supply chain resource management under conditions of structural dynamics. Annals of Operations Research, 1-30.
Reis, K. (2019). Five things government can do to encourage local food contingency plans. Journal of Environmental Planning and Management, 62(13), 2295-2312.
Ritchie, B. W., & Jiang, Y. (2019). A review of research on tourism risk, crisis and disaster management: Launching the annals of tourism research curated collection on tourism risk, crisis and disaster management. Annals of Tourism Research, 79, 102812.
Sehrawat, S. (2019). PepsiCo’s sustainable strategies. Journal of Management, 6(2), 2019, pp. 81–83. Web.
Turetken, O., Jethefer, S., & Ozkan, B. (2020). Internal audit effectiveness: Operationalization and influencing factors. Managerial Auditing Journal, 35(2), 238-271.