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Pepsi Company of oman Essay

Executive abstract
This assignment will introduce the history of Pepsi Oman (Oman refreshment company) which ids responsible for providing soft drink and beverages under Pepsi brand .this company tries to position its products in the top of beverages industry. Second point which we are going to discuss environmental background .this point will concentrate on two main points external and internal environment and how these environments affect on operation ,strategies and decision making conducted by Pepsi Oman. Third point will be about organizational analysis .this will concentrate on type of technology that Pepsi Oman uses ,inputs and manufacturing process that this company uses in managing its activities and the importance of activities that Pepsi Oman do such as capacity planning ,manpower planning ,acquisition ,control ,scheduling ,managing for quality.

Cost control, material control and so on. Pepsi Oman have certain and specific plans to achieve all previous activities properly. So their planning and management has helped the company to stay in the market and sustain its business .forth point will discuss the major problems that faces the company and we are going to provide and propose solution .even though the company success in its field ,it has faced some problems and issues related to

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manufacturing ,technology ,machinery ,quality process ,management, labor and so on. Moreover , we are going to attach different charts related to Pepsi Oman performance and other charts. Last point will gave summary of main points which included in this project and we are going to gave recommendation and conclusion . Finally, we will state references which has helped us to gain valued information about Pepsi Oman Company. Introduction

Oman Refreshments Company (ORC) was established in 1979 and incorporated as public joint stock company in 1975 with headquarters at AlGhubra in Muscat city with an initial capital paid up of OR5.00.000 .Pepsi Oman has growth rapidly as a result shareholders gained high amount of return. The company is franchisee of Pepsi international .Oman Refreshment Company now produces Cola ,Diet Pepsi,Miranda orange, Miranda apple,Mountain Dew, Diet Mountain Dew,Shani , evervess soda ,etc…Also it provides Aquafina pure drinking water .ORC also has its own juice brand (Top fruit)in orange ,mango ,guava and mixed fruit flavors .In addition,ORC distributes Frito Lays range of snakes across Oman. It employs over800 staff and it has modern production and distribution facility. This company engages in canning ,bottling and distributing soft drinks and traded consumer packaged goods in the sultanate of Oman. It hold the franchises for filling and distributing Pepsi range of soft drinks and Aquafina water.

Environmental Background
Business environment has a big influence in the organizational ability to achieve success. There are two types of business environment which are micro and macro environment. First, Macro environment which consist of all factors outside company that influence its ability to do their process. Second, is Micro environment also known as operating environment which affect its capacity to work which consist of suppliers, customers, competitors , distributers and publics . *Internal environment

Pepsi ‘s internal environment related to major forces inside the organization which has strongly influence in the products and services that company offer. The basic component of it are: 1-Customer: repetitive customer is as a signal of achieving successful business.The target customer of Pepsi company are mostly young between the age of 14 to 30 years old. Pepsi company seeking to attract this category by focus in quality and makes different styles and colours of containers with different prices . All those makes customer feel more satisfy about this product , customer will increase more and it will gain high profit. 2-Supplier : companies that pepsi company deal with them to get basic components and materials that is needed in manufacturing its products .Most raw materials such as concentrates and flavors, and other chemical substances are imported from the UAE ,United Arab, India, China, and there are a few of them available to local companies. For packaging materials such as cardboard, nylon is purchased mostly from national companies .

The other is imported from abroad such as the unavailability Sucker and its packaging and other a. And all raw materials Available ..So, pepsi company try to make good relationship with them to get appropriate price. 3-Compititors: what attract customer away from Pepsi company and toward another companies that provide substitute product which perform the same function. The main local competitors of Pepsi company are: – 1. Companies Refreshments: Chair, age Tub, Dima, Royal Mango. 2. Mineral water companies: Tnov, Green Mountain, Red Bull. 3. Mehdi Food: Ourienta.

4. Shanfari group: Cool father.
5. Zain.
6. Dhofar Cattle Feed: elite
7. A group of small companies working in the field such as water bottling Bidiya, Lulu, Kawthar e So, Pepsi company strongly focus on quality of its products, makes attractive containers, different size and in different prices to be unique and attract large number of customer to gain the profit by compete other rival firms.

4-Distributers:pepsi company deals with many distributors inside and outside oman to sell its products. The company distributes its products to the local Centres , wholesale, supermarkets, small shops And other marketing outlets in addition to direct sales from the factory. In addition, the company has several branches Storage capacity is high in both Muscat and Khabourah, Hebrew and Izki *External environment:

1-Economic environment:when the economic of the customer is low and the price of products is high because of increasing the expenses and costs of the components using in manufacturing or buying components. As a result, customer will target other rival companies that has substitute products which perform same function as a result, this will effect negatively Pepsi company by loss its profit . 2-Technological environment: pepsi company has been able to stay in using advance technologies that help it to produce more products in short time, with different containers ,styles ,size and colours in order to attract customer’s attention to buy the products and satisfy their needs and wants. 3-Demographic environment: the target market of Pepsi company would be customer are young that age between 14-30 years old. Also, the income level that Pepsi company target are middle class to upper class. The products of Pepsi company has different prices to give poor people ability to buy the products as rich people. 4-Social cultural: which consist of attitude of people to work, family system, , religion, education, customer lifestyles and values.

All this will affect company s’ability to obtain resources and makes it products. Pepsi company tries to respect value and religious of Omani people in order to achieve a high power sales. Also ,it receive customer expectations and suggestions and try to benefit from it to improves its products. Sometimes, make product according to the customer specifications, desires and needs . 5-Global environment: pepsi company set distribution plants and branches in everywhere such as,Muscat and Khabourah, Hebrew and Izki .It use more distribters in order to achieve large sales to gain the profit.

Organizational Analysis
Capacity planning:
Is the part of the work and without planning the business or the enterprise will failure and also the companies cannot be able to achieve its objectives. Planning determinant the intermediate future and we do planning to minimize cost over the planning period by inventory overtime work and subcontracting rates. The steps of planning process that Pepsi company follow are: Define objective: the Pepsi Company determine the sets goals and the standard of the company such maximize sales and satisfy customer’s needs. Evaluate accomplishments:

The manager of Pepsi company assume what will be achieved by defining objective for example increase the number of customers as a result of providing a high quality gas liquid that satisfy customers’ needs and want. Analyze possible action alternatives:

Pepsi Company put action alternatives and it takes the best one that helps it in development decision making and soling problems. Implement plan and evaluate results:
After the company issue about extent of the effectiveness of goals.it implements its objectives steps and prospects the result. Then measure the performance and takes the corrective action to attain the success. The importance of planning for Pepsi Company:

-It helps to indentify and explain the goals of this company. -ensures optimal use of resources.
-measuring the success of the company in the application.
-reduces arbitrary decisions and personal.
-provides psychological security for workers.

Manpower planning:
This means that the workforce is the effective powerful factor and importance for success of Pepsi Company. Also it can be the first great interest in the mean of importance of planning for the workforce in the Pepsi Company. And the workface in the Pepsi company .and also it is an effective element for the development of the company. Today many people are searching for jobs so Pepsi company it is one of the international company that can help people epically the youth to found the job in this company.so Pepsi company use modern work method to develop the lows for staff and employees to achieve the policies of the company boss such as the lows of profits and attracting cousomers.inaddition like any private company like the company budget and put the plans and strategies to export the Pepsi overseas the country .also some staff have skill and ability to attract customers to convince the customers to buy from Pepsi. Moreover some employees in Pepsi company are very helpful to achieve assuccful marketing process for promoting the Pepsi products.so this employees use modern promotion tools like.internet, magazine,newspaper and the biggest promotion tools is the TV today many popular people in the world contribute to promote Pepsi companies especially the popular players in the worlds so that will help Pepsi company to attract customers and facilitate the marketing process for the company.

Quality management:
The quality management divination has specific meaning in many different sectors. This specific definition which does not aim to assure ,good quality, by the more general definition but rather to ensure that company or product is consistent can be considered to have four main components; quality planning, quality control,qualitya assurance and quality improvement. For Pepsi company quality management is for use not only on product/service quality, but also it means really to achieve it.the purpose in Pepsi company is to earn the good profit, provide unique diversity in the forms of Pepsi and provide all needs and wants to satisfy the customers.

Material Control
Inventory
In order to produce a finished product of pepsi, the company needs a variety of raw materials and ingredients such as carbonated water, sugar, color ( caramel ), acid ( phosphoric acid ), caffeine, Emulsifier ( Arabic Gum ), and natural cola flavor. Production at the plant begins as empty bottles are unloaded from trucks via conveyor and transported to a palletizer. From there, they are, rinsed, dried and sent to a filling machine (filler speeds at the plant vary based on bottle size, ranging from 350 to 1,000 bottles per minute). The bottles leave the fillers and make their way to a packaging machine, and then to a palletizer. Each pallet is wrapped for distribution and moved to the warehouse for shipping. http://www.reliableplant.com

Supplies
Oman Refreshment Company is dealing with different companies overseas in order to provide the raw materials from them. For example concentrates and flavors, and other chemicals are imported from UAE, India, China, Pakistan, etc.

Cost control
To ensure reliable availability to spare parts, Pepsi set-up a Rockwell

Automation Services Agreement that included parts management. With the agreement, Pepsi pays a fixed monthly cost for their spare parts, which are owned and managed by Rockwell Automation but stocked on-site. The agreement allows Pepsi to reduce its upfront expenses, have immediate access to spares, reduce carrying costs, and update its control technology cost-effectively. The agreement also includes an in-service warranty, so the parts don’t go out of warranty until they are actually used for the warranty period. http://www.reliableplant.com

Training and Development
Training and Development is an essential task at any corporation. On-the-job training programs are very effective for employees. They can learn and obtain new knowledge and experiences, also it increases their confidence and the ability to deal and communicate with others. The use of automatic machines, high-performance devices, parts inventory and technology migration in Oman Refreshment Company have decrease the need of training and development programs as a result, reducing the costs and expenses on those programs.

Facility location & Layout planning
The selection of an appropriate location for the company is very important in order to facilitate the operations of the production. the location of Oman Refreshment Company should be located near the fresh water, suppliers, and transportation. The layout planning of Oman Refreshment company includes many separate departments such as washing section, quality management section, bottling and packaging. The product is passing all these departments to be produced as a finished product and then it is distributed to the suppliers and the customers.

Problem identification and solution
Identifying organization’s problems and finding solution for them consider an important and vital activity to operation managers. All of the organizations and corporations around the world find different types of problems. But ,to stay successful they have to identify the problems and try to find suitable solution for them. Pepsi Oman is a famous and successful
company in beverages industry ,but it has many problems and it seeks to solve it. First problem is related to industrial and manufacturing a activities .this includes issues related to manufacturing pepsi products. It is very serious problem because it affect on the company productivity a against the huge demand on pepsi Oman products. Problems may happen in manufacturing department while they produce pepsi products they use chemical materials which change the flavor of pepsi and it reduce the quality of products that the company produces. So the mistake in using material and ingredients can reduce the quality of soft drinks. Also ,sometime producers use ingredients with low quality and harmful materials that has led to failure and weak in production . Other problem may happen while transferring of the pepsi to the packaging houses .this step require optimum care of maintain the quality of the soft drink. they should ensure that the sealing of the pepsi cans are sure and it closed carefully .Also they should ensure that there is no chance for leakage .in addition there are many problems related to putting cans in the boxes. Storage :storage must be monitored by operation managers. There are many problems related to the storage of pepsi cans .as many persons said that while the can were walked over by rats and insects and this caused various disease to the people. they should ensure that cans are packaged properly before they sent it to retailers . Last, there is problems related to human resources .some labor and workers don’t have skills and they are unqualified . Quality issues :all previous problems can affect negatively on pepsi quality. And they don’t follow the standards of quality so operation managers must be a ware about this problem. Dealing with problems carefully can contribute directly to the company success .we propose the following solution to reduce problems which face Pepsi Oman: ?Managing quality :it is very important to manage the quality of soft drink which Pepsi Oman produces . managers should match the standards of products with the quality requirements . ?They should monitor production process and make it work efficiently and effectively way. In addition they should use advanced and modern packaging techniques .not only this bus also, they should put monitoring systems in the stores to ensure the pepsi cans are in safe place . ?Develop labor skills and gave them developed training programs . ?Last solutions is they should reset polices and strategies to monitor quality and production process .moreover
they should apply total quality management(TQM).

Charts related to Pepsi Oman Company
This chart shows price ,dividend, and earning per share.

Pepsi Oman has excellent performance and it has high financial position in the food and beverage industry.
YearRevenues Profits before taxProfit after tax
201156.036.8008.017.9087.044.944
20104.116.9223.816.2253.357.752
200942.788.3492.422.3012.139.332
200843.543.0502.910.5592.561.264
200735.868.6262.059.1451.833.592

This table shows the profits and how this company distribute to its stakeholders during past five years: YearsExtra shares
20113.500.000
20103.000.0002000000
20092.100.000
20081.500.000500.000
20071.000.000

Summary
This assignment discussed Oman refreshments Company which is responsible for producing soft drinks. We chosen Pepsi Oman because it is successful company in Oman and .one of the main reason is to identify how operation managers organize the activities in Pepsi Oman. Management are powerful and it affect on company polices and strategies also they maintain the quality of products that they produces . Business environment has a big influence in the organization s’ability to achieve success. There are two types of environments which are micro and macro environments. Macro environment consist of all factors outside the company that affect its ability to do work. It consist of four basic components which are customer,suppliers,compititors and distributers.Second,is Micro environment also known as operating environment which affect its capacity to work which
consist of suppliers, customers, competitors , distributers and publics .All this factors from macro and micro environment can be changes the company to a negative side by loss its profits or to positive side by achieve high profit or the negative side by gain the profit.so, company must care about this factors in order to face all difficulties to achieve success. In this point of operation management activities the importance points to beginning of any project or work because any person cannot accomplish a successful business without plan and also its an important points in the management process we have to explain the objectives of Pepsi how trying to achieve the process of administrative successful .we have also talk about manpower planning it is also important and hotspot in development of export strategies and successful groups of staff and workers who have a prominent role in the stimulation and attraction of consumers and the successful marketing of the product and also we talked about the quality management is one of any business or project consumers always look at product quality the quality of Pepsi includes four key elements of planning for quality ,quality control, ensure quality and improve quality of Pepsi company. Organizational analysis identifies the knowledge, skills, and abilities that employees will need in the future as the organization and their jobs change. Organizational analysis is a holistic approach which involves looking at the entire organization; the overall structure, the departments, functions, processes, jobs, the interplay between groups, system dynamics, human energy alignment, and other issues. It explores what is as compared to what should be and the gaps between the two. http://definitions.uslegal.com The previous points are discussed many internal processes and functions such as Material Control which is contains inventory and supplies, cost control, training & development for employees, and facility location & layout planning. Also, we have mentioned the main problems and issues which faces Pepsi Oman Company and we gave proposed solutions for them.we concluded that the most problems are related to the production and manufacturing of pepsi products and other problem related to workers and labors .

Reference List

?History of OMAN REFRESHMENT CO.Retreved on April .12.2012.from http://www.pepsi Oman.com ?Operations Management Problem in Pepsi Introduction Operations.Retreved on April 20.2012 from www.operationproblem .com

?The management of quality. Retrieved On april.30,2012 from:http//www.en.wekipedia-org/wiki/quality management.

?Material control (inventory). Retrieved on April.29.2012. from http://www.reliableplant.com ?Cost control. Retrieved on May.1.2012. from http://www.reliableplant.com

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