Pepsi America Case Study Essay
Pepsi America Case Study
1. The following listed factors made PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business.
* Growth in product variety from 35-40 to nearly 400,
* Lowering of PAS profit margins,
* Recession in U.S economy,
* Decline of U.S market for carbonated soft drinks,
* National Clients like CVS, Wal-Mart and Mobil Gas Stations preference of highly centralized procurement arrangements,
* Hard to track product flow on various process like distribution, sales, raw materials and so on.
PepsiAmericas Before Its Investment in BI| PepsiAmericas After Its Investment in BI| Operations: 1. Manual and much of human efforts. 2. Operation like supply was time consuming and hard to perform. 3. Operation like supply was not meeting the requirement or was over.| Operations: 1. Automatic Operations were performed that reduced time and effort. 2. IT tool like SCM helped to meet customer requirement. 3. Tools like MM helped to manage material flow along with supply.| Management and Control: 1. Process and manpower management was tough due to large in quantity. 2. Distributors were unable to fetch retailers’ requirement. 3. Material cost was high and profit margin was going down.
4. PAS was unable to communicate with its business processes as a platform.| Management and Control: 1. ERP helped to bring all the business processes under one umbrella. 2. ERM helped to manage employee resource. 3. Tool like CRM helped to get customer information and satisfaction. 4. SDM helped to management sales and distribution based real time need data.| Planning, Corporate Learning, and Innovation: 1. Supply used to be based on distributors’ past flow. 2. System planning was made by senior managers without the use of IT tools. 3. Had lots of challenge in business.| Planning, Corporate Learning, and Innovation: 1. Use of SCM, helped to lower down the distribution cost. 2. The ERP use reduced the raw material cost. 3. Profit margin became high.|
4. The role of Decision Support Systems (DSS) on enabling the success of PepsiAmericas can be
* Supported in business and organizational decision-making activities.
* Helped to compile useful information form raw data, documents, personal knowledge and business models.
* Made automated decision processes possible.
* Quick respond based on real time.
* Task oriented service.
* Avoided mistakes and maintained Customer Relationship.
Listed are the benefits features of DSS enhanced management and control based on long-term strategic planning within the firm.
* Back-end-transaction system with real-time data will tune up the business for long term.
* Contribution on the continuous improvement of ongoing firm business processes and services.
* Knowledge in CRM, SCM, and data-driven decision making.
* Continuous data mining within the business.