In the current intensively competitive corporate environment, maintaining a competitive edge is becoming more and more complicated for companies. Companies have to put up highly qualified and committed workforces in order to differentiate their positions in the market. Competitive advantage is not only about differentiating corporate products or services but it also encompasses the art of tapping special skills to support rapid growth and better customer satisfaction. It is also critically important to monitor competitors’ moves and the management has to be able to consolidate upcoming technologies so as to remain competitive at all times. In simple terms, attaining a competitive advantage requires the ability of management to integrate core production skills and competences that empower individual business units to perform to their maximum and to adapt to changing environments. In this study, the essence of components of strategic human resource management (SHRM) will be discussed in the above regard using a case study of PepsiCo. These vital elements are strategic human resource planning (SHRP) and strategic human resource development (SHRD). These elements of HRM play a major role in the economics of an organization and in the achievement of business goals and objectives. They account for the greater part of a company’s competitive advantage and alignment to corporate direction. This is in contrast to the traditional belief that a company stands in good ground against competitors with other transferable resources such as equipment. In fact, it is increasingly being recognized that SHRP and SHRD contribute significantly to the achievement of organizational objectives. A high quality workforce enables an organization to compete with respect to market responsiveness, product quality, customer satisfaction and technological integration/innovation. Strategic human resource management SHRM will be assessed in this report with a focus on PepsiCo Inc., a food and beverages company with international presence. The use of SHRP and SHRD at PepsiCo will be assessed to highlight the ways in which the company has utilized these elements to attain its market position and international recognition. PepsiCo has had a turbulent past as far as global presence is concerned but the company managed to achieve some of its business objectives nonetheless. In fact, the company has upheld its corporate principles in all its units of business especially in the arm of human resource management. Strategic planning and development in HRM will therefore be discussed in this study as has been used by PepsiCo to promote business growth and to gain a competitive advantage. About PepsiCo
PepsiCo Inc. is an American multinational dealing in the manufacture, marketing and distribution of beverages, processed snacks and a range of other food products. The company was founded in 1965 after it a merger with Pepsi-Cola and Frito-Lay to form PepsiCo. Other acquisitions by the company include Tropicana in 1998 and Quaker Oats in 2001. These mergers and acquisitions have given PepsiCo and added advantage as new brands are integrated to its product portfolio. The company is operational in over two hundred countries globally and has achieved major milestones to become a world leader in the food and beverage industry. It boasts of more than $60 billion in revenue and close to three hundred thousand employees worldwide. PepsiCo is the largest in the industry in North America and the second largest in the world (iStockAnalyst, 2010). PepsiCo’s vision is to continually improve the world in all aspects; from environmental to social and economic aspects, and create a better tomorrow. As a result, the company implements programs focused on environmental stewardship and activities that benefit the society. It is committed to building its shareholder value by becoming a truly sustainable company. The mission is to be the global premier company in consumer...
Please join StudyMode to read the full document