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The PepsiCo group were faced with increasing competition and slow growth in the carbonated drink market. In a response to this PepsiCo’s strategy was to move into new rapidly growing markets such as soft drinks, mineral water and snack products. The acquisitions of 2 major companies at premium price were in an attempt to extend the company’s product range to best utilize the growth in these new markets to continue showing growth and return on investment for their shareholders. They also targeted their markets away from their North American stronghold and they strived to grow their brands internationally.

The organizational structure

A useful starting point in the analysis is to undertake a human resource audit. This is an examination of an organisation’s leadership, its people, their skills, backgrounds and interrelationships. Robert Lynch suggests the following as important areas to consider in such an audit:
People
• Leadership in terms of people and style • Employee numbers and turnover • Organisation structure • Structures for controlling the organisation • Use of special teams, e.g. for innovation or cost reduction • Level of skills and capabilities required • Morale and rewards • Employee and industrial relations • Selection, training and development • Staffing levels • Capital investment/employee • Role of quality and personal service in delivering the products or services of the organisation • Role of professional advice in delivering the product or service
Role and contribution of human resource strategy • Relationship with corporate strategy • Key characteristics of human resource strategy • Consistency of human resource strategy across an organisation with several divisions • The responsiveness of human resource strategy to changes in business strategy and the

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