1. What drove PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business?

Session 10: PepsiAmericas Case Study Questions

  1. What drove PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business?

    1. A declining market for carbonated soft drinks in the U.S. could mean that the market share for PepsiAmerica was under threat and they had to come up thing else.

    2. Increased competition from bigger retailers. The soft drink market is inhabited by big companies so the company had to either merge or be acquired by another company in order to survive.

    3. An increase in PepsiAmerica product line of 40 products to 400 products. This meant that the previous strategy could no longer work for the company as it was now dealing with multiple product lines.

    4. Lack of proper tracking of products due to different packaging used on the products. Packaging is vital in the industry as it distinguishes one product and one company from the other.

    5. The need to address three distribution platforms of the company: the national, regional and local customers. The company had to pay special attention to each of their customers in order to keep their loyal customers.

  1. What investments in information management capabilities were taken in this regard? Why were they obtained and how did they actually contribute?

Information System Investment

Information Management Need

Contribution of the System in Operation

Supply Chain Management

Bottling and distribution

Reduced inventory management issues

Enterprise Resource Planning

Management of distribution and customer relationship

Increased productivity across PepsiAmerica’s production platforms

Customer Relationship Management

Facilitate the capture and retrieval of qualitative information

Improve overall customer services

  1. Establish for yourself a picture of PepsiAmericas before and after the decision to exploit the use of information to inform business processes across the enterprise.

PepsiAmericas Before Its Investment in BI

PepsiAmericas After Its Investment in BI

Operations:

  • Difficulty in bottling and distribution.

  • Difficulty in capturing and retrieving customer information.

  • Issues with distribution and customer relationships.

Operations:

  • Reduced inventory management issues.

  • Increased productivity across all platforms.

  • Better management of distribution and customer relationship.

Management and Control:

  • Lack of proper inventory levels.

  • Lack of access to real time data.

  • Inferior product quality and employee productivity.

Management and Control:

  • Better inventory management.

  • Proper access to real time data.

  • Improved product quality and employee productivity.

Planning, Corporate Learning, and Innovation:

  • Lack of a proper base to forecast future sales.

  • Lack of a proper product mix.

  • Reliance of sales models without adjustments.

Planning, Corporate Learning, and Innovation:

  • Adequate information on future sales forecast.

  • Proper product mix for the customers.

  • Better adjustments of production and product deliveries.

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