Final report cross culture management

VIETNAM NATIONAL UNIVERSITY INTERNATIONAL SCHOOL FINAL REPORT CROSS CULTURE MANAGEMENT INS4018 Lecturer: Dr... Vision: “to Be the Global Leader in Beverages and Convenient Foods by Winni

VIETNAM NATIONAL UNIVERSITY INTERNATIONAL SCHOOL

FINAL REPORT

CROSS CULTURE MANAGEMENT

INS4018

Lecturer: Dr Pham Thi My Dung

Trần Đức Huy

ID: 20070191

Hanoi, 2023

INTERNATIONAL

B SCHOOL a

TABLE OF CONTENT

INTRODUCTION (REASON OF CHOICE ) :ccccceceeeeceeeceeceeeeeeeeeecaeseaeeaeeeeesaeeeeteneens 1

I About PepsiCo 3

1 Overview Of PepSỈCO LH HT TH nH KH TK 3 2 MiSSION ANC VÏSÏOIN nh nh TH on Ho TK 4 ll Cross-culture management of PepsÌCO - nnnn¬nn nh kree 5 1 Culture of P€DSỈCO - HH HH Họ TH TK 5 HN iu vi si200)0 (cv ốe 6

2.1 Motivation and encouragemen[ - nh nh nh 6 2.2CommuiiCafÏOI - ng nọ HH TH kh 7 2.3OperatiOn - LH HH HH» TH HH Họ KT eee 9 2.4Partner and SupplÏ@fS .- - LH TT n HH kh 10 lll Success and challenges of cross-culture managemerit -.-. - se: 11 IV Preparation to work in PepsÌCO LH HT HH HH gu 13 A.' 13

2 PRSUIMC 13

SB KMOWICCGEC 0 13

Vi CONCIUSION nhe 14

mm: TP e 15

INTERNATIONAL

INTRODUCTION (REASON OF CHOICE)

PEPSICO

PepsiCo stands out in various ways, striving to create beloved brands and encouraging personal and corporate growth, fostering a deep sense of pride The company is venturing into new avenues of expansion, harnessing its core strengths: iconic brands, robust financial standing, a far-reaching global presence, an unparalleled distribution network, and the dedicated commitment of its global workforce and leadership PepsiCo's journey revolves around maximizing these assets to establish itself as a sustainable growth enterprise, ultimately aiming to be recognized among the world's

most esteemed corporations

PepsiCo offers more than just perks and incentives What sets PepsiCo apart is its rich legacy, renowned brands, and expansive global footprint The company provides opportunities for engaging work—its unique global framework continually presents avenues to acquire exceptional skills and fosters a genuinely international career The company nurtures a distinctive culture where individuals channel their passion into tangible actions Expect competitive remuneration that aligns with the standards of a global industry leader

INTERNATIONAL

| About PepsiCo

1 Overview of PepsiCo

PepaCo has 3 portfolio that includes

that generated more than

$1 billion each in estimated

annual retad sales in 2020

-~ ñ pound = © ag wey

PepsiCo, established in 1965 from the merger of Pepsi-Cola and Frito-Lay, has evolved into a global leader in food, snacks, and beverages Renowned for brands like Pepsi, Mountain Dew, Lays, Doritos, Tropicana, and Aquafina, it operates in 200+ countries Its success thrives on innovation, diverse offerings, and strategic marketing, catering to varied consumer preferences worldwide

INTERNATIONAL

SCHOOL

VIETNAM NATIONAL UNIVERSITY, HANOI!

2 Mission and Vision

PepsiCo shows a clear purpose and vision, as stated on its official website:

Mission: “Create more smiles with every sip and every bite.”

Their commitment involves generating moments of happiness through delicious products and unique brand experiences, fostering strong partnerships with customers, providing meaningful career opportunities, ensuring diversity and inclusion in the workplace, preserving natural resources for future generations, delivering sustainable shareholder returns, and upholding top-notch corporate governance

Vision: “to Be the Global Leader in Beverages and Convenient Foods by Winning with PepsiCo Positive”

The company's vision encapsulates PepsiCo's competitive drive, unwavering focus, and core values: striving to excel globally in Beverages and Convenient Foods by embracing PepsiCo Positive (pep+) pep+ signifies their holistic transformation, emphasizing sustainability and human capital to create value within ecological limits, instigating positive changes for both the planet and people

ll | Cross-culture management of PepsiCo

1 Culture of PepsiCo

PepsiCo is a global food and beverage company that is committed to creating smiles and making a positive impact on the world The company's Culture is centered around its mission and vision, which is to be the global leader in beverages and convenient foods by winning with PepsiCo Positive (pep+)

PepsiCo's organizational culture emphasizes taking care of employees and using their capabilities to achieve high business performance The company promotes employees

to leadership positions and encourages them to take calculated risks and stimulate

5

INTERNATIONAL

SCHOOL

VIETNAM NATIONAL UNIVERSITY, HANOI!

others to do the same

PepsiCo is committed to diversity, equity, and inclusion, and has set ambitious goals

to increase diversity within its leadership The company has also pledged to achieve gender parity in management roles by 2025

PepsiCo provides a package of programs, services, and support to help its employees reach their personal physical, emotional, and financial well-being goals The company also offers flexible work policies and environments to boost engagement, work-life balance, and all-around well-being

The PepsiCo Way is a set of behaviors that define the company's culture and drive it to become faster, stronger, and better in all that it does The PepsiCo Way includes behaviors such as always doing what is right, behaving in a transparent and authentic way, trusting others, and empowering them to deliver, and continuously seeking new growth opportunities as well as cost efficiencies

2 Managing cultural diversity

2.1 Motivation and encouragement

PepsiCo recognizes that the future success of the company relies on its ability to attract and retain highly talented individuals To achieve this, PepsiCo actively engages with its employees to ensure their satisfaction with their roles, teams, and the overall direction of the company Engaged employees not only find more enjoyment in their work but also experience higher levels of career fulfillment, a greater sense of well-being, and overall satisfaction with their workplace By prioritizing employee engagement, PepsiCo fosters positive interactions among colleagues, as well as with customers, consumers, and other external stakeholders

As part of its pep+ (PepsiCo Positive) initiative, PepsiCo is committed to creating a Positive Value Chain by cultivating a better work environment To fulfill this

6

INTERNATIONAL

SCHOOL

VIETNAM NATIONAL UNIVERSITY, HANOI

commitment, PepsiCo focuses on enhancing employee engagement, including their attitudes towards their jobs, teams, and the company's direction The establishment of authentic and shared company values plays a crucial role in fostering a positively engaged workforce PepsiCo's Global Talent Management team takes responsibility for the employee engagement strategy and works towards establishing core cultural values and opportunities for employees to provide feedback on their experiences with the company These values, known as The PepsiCo Way, encompass seven key employee behaviors that PepsiCo believes will strengthen its mission, drive its vision, and cultivate a winning mindset aligned with pep+ Through this strategy, PepsiCo aims to build a Faster, Stronger, and Better company To realize its ambitions, PepsiCo has created various channels for employees to express their opinions without fear, which is one of the seven behaviors outlined in The PepsiCo Way These candid opinions serve as valuable inputs for identifying areas of organizational strength, as well as opportunities to enhance practices

2.2 Communication

PepsiCo is deeply committed to cultivating a diverse workforce and fostering a collaborative, fair, and inclusive environment They believe in providing equal opportunities for every individual, regardless of their appearance, background, or personal preferences, to thrive and succeed within the PepsiCo community Embracing diversity is a longstanding tradition for PepsiCo and it continues to shape their approach to work The company has implemented robust and enduring processes to ensure pay equity across all employee groups

PepsiCo's commitment to diversity, equity, and inclusion extends beyond their own organization They also prioritize these values in their relationships with business partners, communities, and future generations Their ultimate goal is to become a company that not only talks about equity but also takes genuine action to foster inclusivity PepsiCo is on a transformative journey, moving from awareness to action, and they are proud of the progress they have already made in creating a workplace that

is diverse, equitable, and inclusive for all their associates They continuously evaluate

7

INTERNATIONAL

SCHOOL

VIETNAM NATIONAL , HANOI

their recruitment, development, and retention practices, reshape the company culture

to promote inclusiveness, and provide mandatory unconscious bias training PepsiCo firmly believes that everyone should feel comfortable being their authentic selves within PepsiCo's spaces

2.2.1 Effective message strategy

PepsiCo emphasizes clear and transparent internal communication, guided by David Flavell, PepsiCo's EVP, General Counsel, and Corporate Secretary Flavell shares five tips for effective professional interactions:

1 Focus your message: Share only essential details to avoid overwhelming your audience

2 Stay updated: Regularly communicate with stakeholders for better outcomes

3 Be a voice of reason: Express different views and challenge potential wrong decisions

4 Avoid panicked responses: Take time to prioritize tasks based on urgency

5 Involve your team in your vision: Establish a clear purpose and direction for your team

To ensure message integrity, administrators manage intranet messages, controlling viewing and responding permissions Different ranks hold specific responsibilities for various messages, maintaining confidentiality for internal communications while allowing public access to others

2.2.2Communication channels

PepsiCo has various channels for employees to voice opinions and provide feedback These include the Organizational Health Survey (OHS), Employee Confidence Index (ECI), and life cycle surveys Additionally, PepsiCo has internal communication channels such as e-newsletters, intranet, all employee mailings, webinars, and digital screens These channels are accessible to employees at all levels, and survey results are confidential

Communications Strategic Planning

Organizational Health Employee Confidence

Survey (OHS): An annual Index (ECI): A pulse check

census survey available to all on employee engagement

employees to gauge and confidence through

employee engagement and sampling conducted

commitment to PepsiCo three times a year

Life cycle surveys: Through which PepsiCo measures employee experience and engagement at key moments in the employee life cycle

Intranet: A private network

accessible only to PepsiCo

employees

E-Newsletters: Monthly updates sent to employees

INTERNATIONAL

SCHOOL

VIETNAM NATIONAL UNIVERSITY, HANOI!

2.2.3Organizational culture and behavior

The company organizational culture focuses on excellence and corporate social responsibility It emphasizes taking care of employees and utilizing their capabilities

to achieve high business performance The company promotes leadership based on the needs of employees, investors, customers, and communities Teamwork is also emphasized as a ke y factor in achieving excellent performance The organizational culture is characterized by "Performance with Purpose," where employees strive for excellence while fulfilling corporate social responsibilities It also emphasizes "Real World Leadership," utilizing employee knowledge to develop leaders within the company Collaboration is seen as essential for success, as the company believes in leveraging the strengths of individuals through teamwork

2.3 Operation

The company has a strong history of embracing diversity, which continues to shape its approach today PepsiCo's com mitment to diversity, equity, and inclusion extends beyond its own workforce to its business partners, communities, and future generations The company is actively progressing from awareness to action and takes pride in the strides it has made towards creating a diverse, equitable, and inclusive workplace

PepsiCo has established comprehensive and longstanding processes to ensure pay equity across employee groups Building upon this foundation, in 2016, the company pledged its commitment to equal pay by signing the White House Equal Pay Pledge, demonstrating its dedication to advancing equity

Gender parity and pay equity are key priorities for PepsiCo The company strives to provide equal opportunities for growth and success within its organization, not only for individuals with disabilities, veterans, and underrepresented groups but for

everyone

10

INTERNATIONAL

SCHOOL

VIETNAM NATIONAL UNIVERSITY, HANOI!

PepsiCo recognizes the value of investing in its diverse suppliers, farmers, and global communities The company believes that supporting and investing in these groups is just as important and rewarding as supporting its own associates

PepsiCo is actively evaluating its recruitment, development, and retention practices, as well as reshaping its workplace culture to foster inclusivity The company is also implementing mandatory unconscious bias training, ensuring that everyone feels comfortable and accepted in their work environment

Furthermore, PepsiCo encourages its associates to courageously drive change and actively engage in making a difference The company invites its associates to participate in employee resource groups (ERGs) to help cultivate a culture of diversity, inclusion, and engagement

2.4Partner and Supplier

The company firmly believes that supplier diversity is not only a moral imperative but also a strategic advantage By cultivating a supplier base that reflects the diversity of its employees, customers, consumers, and communities, PepsiCo aims to create a more inclusive and equitable business environment' To achieve this objective, PepsiCo has established strong partnerships with advocacy organizations such as the National Minority Supplier Development Council (NMSDC), Women's Business Enterprise National Council (WBENC), and US Hispanic Chamber of Commerce (USHCC)

PepsiCo's supplier diversity program is designed to promote inclusiveness throughout its supply chain by sourcing from a diverse range of suppliers The company actively seeks out and supports diverse-owned businesses that offer high-quality goods and services These businesses include ethnic and racial minorities, women, individuals with

disabilities, U.S veterans, and LGBTQ+ suppliers In 2022, PepsiCo's spending on

11