Description
I have also enclosed the template sent to you form the early stage of the process (see the communication we had on 26/04/2023) that indicates the methodological elements that need to be discussed in chapter 3. In addition, a chapter example has been enclosed demonstrating how the data could be presented and discussed in the case of focusing on two case studies.
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Cardiff Metropolitan University
A Critical and Analytical Study of the Factors Impacting the Performance of the
Beverage Manufacturing Industry: A Comparative Case Study of Coca-Cola and
PepsiCo
Advanced Entry Master of Business Administration
Student Name: Mahmoud Barnawi
Student ID: 20255582
Supervisor: Dr. Vera Ndrecaj
Ethics Code: 2022/23DE0345
Submission Date: 22/04/2023
1
DECLARATION
This work is being submitted in partial fulfillment of the requirements for the degree of MBA
.and has not previously been accepted in substance for any degree and is not being
concurrently submitted in candidature for any degree.
Signed
Mahmoud Barnawi
Date ………………………………………………………………..
STATEMENT 1
This dissertation results from my work and investigations, except where otherwise stated.
Where correction services have been used, the extent and nature of the correction are marked
in a footnote(s).
Other sources are acknowledged by footnotes giving explicit references. A bibliography is
appended.
Signed
Mahmoud Barnawi
Date……………………………………………………………….
STATEMENT 2
I hereby consent for my dissertation, if accepted, to be available for photocopying, interlibrary loan, and deposit in Cardiff Metropolitan University’s e-Repository, and that the title
and summary may be available to outside organizations.
Signed Mahmoud Barnawi
Date……………………………………………………………….
2
SUPERVISOR DECLARATION FORM
Student Name
Mahmoud Barnawi
Supervisor’s Name Dr. vera Ndrecaj
I acknowledge that the above student has regularly attended the planned meetings and is
actively engaged in the dissertation supervision process. They have provided regular, timely
draft chapters of the dissertation and followed the guidance.
Signed ……………………………………….
Date
……………………………………….
3
ABSTRACT
This research study aims to critically assess the factors influencing the performance of the
beverage manufacturing industry. The focus lies on an in-depth analysis of the strategies and
tactics employed by two major players in the industry, namely Coca-Cola and PepsiCo, and
their implications on performance outcomes. The research employs secondary data collection
methods alongside content and statistical analysis techniques. The literature review thoroughly
examines organizational performance and the multifaceted factors impacting the beverage
manufacturing sector. Several well-established theories, including the Resource-Based View
theory, Agency Theory, Institutional Theory, Dynamic Capability Theory, and Stakeholder
Theory, are drawn upon to provide insights into these factors.
Moreover, various external influences encompassing economic, technological, environmental,
regulatory, social, competitive, supply chain, innovation, product development, brand image,
and reputation are identified and discussed. The research’s findings reveal that Coca-Cola and
PepsiCo have adeptly executed strategies and tactics that paved the way for exceptional
performance within the beverage manufacturing industry. The pivotal drivers of performance
within this sector are found to be centered around innovation and product development,
cultivation of brand image and reputation, effective supply chain management, and
commitment to sustainability practices. The study acknowledges a few limitations, including
its reliance on secondary data sources, the absence of comparative and longitudinal data, and
the interpretive research philosophy guiding its approach. Drawing from the study’s insights, a
set of recommendations is put forth to bolster the performance of the beverage manufacturing
industry. These recommendations advocate for investments in sustainable production practices,
a concentrated focus on innovation and product development, supply chain management
enhancements, robust brand images and reputations, and a proactive approach to adapting to
evolving consumer preferences and emerging technological trends.
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ACKNOWLEDGMENTS
I want to express my sincere gratitude to all those who have supported me throughout this
research study. Firstly, I would like to thank my academic supervisor for providing me with
guidance and support throughout this project. Her expertise and encouragement were
invaluable in shaping my research and ensuring its success. I am also grateful to the
management and staff of the two beverage manufacturing companies who participated in this
study, for their cooperation and for providing me with the necessary information and data to
conduct this research. I owe an actual debt of gratitude to my family, friends, and community
for being my rock during thick and thin. My academic journey was full of uncertainties, but
they never lost faith in me, and for that, I am forever grateful. Lastly, with their advice,
feedback, and encouragement, I want to express my gratitude to all the others who stepped up
to bring this research to fruition. Their efforts shall forever be etched in my memories.
Thank you all for your support and contributions to this project.
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TABLE OF CONTENTS
DECLARATION ……………………………………………………………………………………………………….. 2
STATEMENT 1 …………………………………………………………………………………………………….. 2
STATEMENT 2 …………………………………………………………………………………………………….. 2
SUPERVISOR DECLARATION FORM …………………………………………………………………….. 3
ACKNOWLEDGMENTS …………………………………………………………………………………………… 5
LIST OF ABBREVIATIONS ……………………………………………………………………………………… 9
LIST OF TABLES …………………………………………………………………………………………………… 10
CHAPTER ONE: INTRODUCTION ………………………………………………………………………… 11
1.0 Introduction …………………………………………………………………………………………………… 11
1.1 Research Background …………………………………………………………………………………….. 11
1.2 Rational …………………………………………………………………………………………………………. 12
1.3 Research scope ……………………………………………………………………………………………….. 13
1.4 Methodology ………………………………………………………………………………………………………. 14
1.5 Research Aim, Objectives, and Central Research Questions…………………………….. 15
1.5.1 Research Aim ……………………………………………………………………………………………. 15
1.5.2 Research Objectives …………………………………………………………………………………… 15
1.5.3 Central Research Question ………………………………………………………………………….. 15
1.6 Overview of the Study …………………………………………………………………………………….. 16
CHAPTER TWO: LITERATURE REVIEW ………………………………………………………………. 17
2.0 Introduction …………………………………………………………………………………………………… 17
2.1 Definition of Organisational Performance ……………………………………………………….. 17
2.2 Critical Evaluation of Relevant Concepts and Theories of the Organisational
Performance………………………………………………………………………………………………………… 17
2.2.1 Resource-based View (RBV) ………………………………………………………………………. 18
2.2.2 Contingency Theory …………………………………………………………………………………… 18
2.2.3 Theory 3: Institutional Theory ……………………………………………………………………… 19
2 2 4 Theory 4: Dynamic Capability Theory ………………………………………………………….. 20
2 2 5 Theory 5: Stakeholder Theory ……………………………………………………………………… 20
2.3 The Primary Factors Impacting the Beverage Manufacturing Industry …………… 21
2.3.1 Resources and Capabilities ………………………………………………………………………….. 21
2.3.2 Organizational Structure and Management Practices ………………………………………. 21
2.3.3 Institutional Environment ……………………………………………………………………………. 21
2.3.4 Dynamic Capabilities …………………………………………………………………………………. 22
2.3.5 Stakeholder Interest ……………………………………………………………………………………. 22
2.4 Knowledge Gap ……………………………………………………………………………………………… 22
2.5 Conclusion ……………………………………………………………………………………………………… 23
CHAPTER THREE: RESEARCH METHODOLOGY………………………………………………… 24
3.0 Introduction …………………………………………………………………………………………………… 24
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3.1 Definition of Organizational Performance ………………………………………………………. 24
3.2 Critical Evaluation of Relevant Concepts and Theories of Organizational
Performance………………………………………………………………………………………………………… 24
3.2.1 Resource-Based View (RBV) ………………………………………………………………………. 24
3.2.2 Contingency Theory …………………………………………………………………………………… 25
3.2.3 Institutional Theory ……………………………………………………………………………………. 25
3.2.4 Dynamic Capability Theory ………………………………………………………………………… 25
3.2.5 Stakeholder Theory…………………………………………………………………………………….. 25
3.3 The Primary Factors Impacting the Beverage Manufacturing Industry …………… 26
3.3.1 Resources and Capabilities ………………………………………………………………………….. 26
3.3.2 Organizational Structure and Management Practices ………………………………………. 26
3.3.3 Institutional Environment ……………………………………………………………………………. 26
3.3.4 Dynamic Capabilities …………………………………………………………………………………. 26
3.3.5 Stakeholder Interest ……………………………………………………………………………………. 26
3.4 Knowledge Gap ……………………………………………………………………………………………… 26
3.5 Conclusion ……………………………………………………………………………………………………… 26
CHAPTER FOUR: FINDINGS AND EVALUATION ………………………………………………… 27
4.0 Introduction …………………………………………………………………………………………………… 27
4.1 Part 1: Presentation of Secondary Data …………………………………………………………… 27
4.1.1 Resources and Capabilities ………………………………………………………………………….. 27
4.1.2 Organizational Structure and Management Practices ………………………………………. 28
4.1.3 Institutional Environment ……………………………………………………………………………. 28
4.1.4 Dynamic Capabilities …………………………………………………………………………………. 29
4.1.5 Stakeholder Interests…………………………………………………………………………………… 29
4.2 Part 2: Evaluation ………………………………………………………………………………………….. 30
4.5 Conclusion ……………………………………………………………………………………………………… 32
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS ……………………………. 33
5.0 Introduction …………………………………………………………………………………………………… 33
5.1 Conclusions ……………………………………………………………………………………………………. 33
5.1.1To understand the topic comprehensively, critically evaluate relevant theories and
literature related to the beverage manufacturing industry. ……………………………………….. 33
5.1.2 To identify the key internal and external factors that impact the performance of
Coca-Cola and PepsiCo in the beverage manufacturing industry. …………………………….. 33
5.1.3 To analyze the strategies and tactics employed by Coca-Cola and PepsiCo and
evaluate their effectiveness in enhancing their performance in the beverage
manufacturing industry. ………………………………………………………………………………………. 34
5.1.4 To investigate the relationship between the identified factors and the performance
of the beverage manufacturing industry and provide recommendations for improvement.
………………………………………………………………………………………………………………………… 34
5.1.5 To suggest practical solutions and recommendations for the beverage
manufacturing industry based on the findings of this study. …………………………………….. 35
5.2 Contribution of the Research ………………………………………………………………………….. 35
5.3 Recommendations ………………………………………………………………………………………….. 35
5.3.1: Enhance Resource Management………………………………………………………………….. 36
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5.3.2: Adapt Organizational Structure and Management Practices ……………………………. 36
5.3.3: Align with Institutional Norms and Practices ……………………………………………….. 36
5.3.4: Foster Dynamic Capabilities ………………………………………………………………………. 36
5.3.5: Prioritize Stakeholder Interests……………………………………………………………………. 36
5.4 Conclusion ……………………………………………………………………………………………………… 37
5.5 Limitations …………………………………………………………………………………………………….. 37
References ………………………………………………………………………………………………………………. 39
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LIST OF ABBREVIATIONS
Quaker OATS
–
The Quaker Oats Company.
Lay’s
–
Lay’s Potato Chips
Doritos
–
Doritos Tortilla Chips
Cheetos
–
Cheetos Cheese Flavored Snacks
Tostitos
–
Tostitos Tortilla Chips
R&D
–
Research and Development
NASDAQ
–
National Association of Securities Dealers Automated
CAFA
–
Critical and Analytical Factors Analysis
BMI
–
Beverage Manufacturing Industry
MNCs
–
multinational corporations
PEP
–
PepsiCo Performance
FIP
–
Factors Impacting Performance
CAS
–
Critical and Analytical Study
FM
–
Beverage Manufacturing
Quotations
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LIST OF TABLES
Table 1: Resources and Capabilities………………………………………………..28
Table 2: Organizational Structure and Management Practices..………………..29
Table 3: Institutional Environment…………………………………………………..29
Table 4: Dynamic Capabilities………………………………………………………..30
Table 5: Stakeholder Interests………………………………………………………..31
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CHAPTER ONE: INTRODUCTION
1.0 Introduction
The beverage manufacturing industry is highly competitive and constantly evolving to meet
changing consumer preferences and demands. Major players like Coca-Cola and PepsiCo
dominate the industry and have developed unique strategies and tactics to remain competitive
(Guo & Wen, 2021). The success of these companies is influenced by various factors,
including resource management, stakeholder interests, regulatory compliance, and
technological advancements ( Stone et al., 2020). To better understand the variables that
affect the industry’s success, this study will conduct a comparative case study of Coca-Cola
and PepsiCo. The study will evaluate relevant theories and literature related to the beverage
manufacturing industry and identify the key internal and external factors impacting the
performance of these companies. Additionally, the study will analyze the strategies and
tactics employed by Coca-Cola and PepsiCo and evaluate their effectiveness in enhancing
their performance in the industry (Arati et al., 2021). The study aims to investigate the
relationship between the identified factors and the performance of the beverage
manufacturing industry and provide recommendations for improvement.
1.1 Research Background
The beverage manufacturing industry is a highly competitive and dynamic industry
constantly evolving to meet changing consumer preferences and demands. Major players like
Coca-Cola and PepsiCo dominate the industry and have developed unique strategies and
tactics to remain competitive. The success of these companies is influenced by various
factors, including resource management, stakeholder interests, regulatory compliance, and
technological advancements(Shet et al., 2021). To better understand the variables that affect
the success of the beverage manufacturing sector, this study will compare the performance of
Coca-Cola and PepsiCo. In doing so, it will assess theories and models related to beverage
manufacturing and investigate key elements that affect the outcomes and strategies of these
companies. Several theories will guide the study, including Resource-Based View Theory,
Agency Theory, Institutional Theory, Dynamic Capability Theory, and Stakeholder Theory.
These theories will provide valuable insights into the elements that influence organizational
success.
While existing studies have shed some light on the factors that affect performance in the
beverage manufacturing industry, several knowledge gaps still need to be addressed (Ainali
et al., 2022). These include the potential impact of emerging technologies such as artificial
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intelligence and Blockchain, the long-term impact of changing consumer preferences towards
healthier and more natural products, the challenges and opportunities associated with
sustainability, the impact of political instability on the industry, and the role of social media
in promoting and addressing changing consumer preferences (Chang et al., 2020). To address
these knowledge gaps, further research and analysis are recommended. This study will
employ secondary data collection techniques to elevate the scope and precision of our results.
Our methodology will entail a wide-ranging comparative analysis, which includes a multicase study or cross-sectional study to reinforce the implications of our findings.
1.2 Rational
The topic of a critical and analytical study of the factors impacting the performance of the
beverage manufacturing industry, with a comparative case study of Coca-Cola and PepsiCo,
was selected due to the significant changes and challenges that the industry is facing. The
beverage manufacturing industry is essential to the global economy and contributes
significantly to job creation and economic growth. However, companies operating in the
industry face numerous challenges in meeting the demands of consumers while maintaining
their profitability (Muchaendepi et al., 2019). Understanding the factors that impact the
industry’s performance is crucial for companies to remain competitive and for policymakers
to develop policies that promote industry growth while protecting consumers’ interests
(Hangoma & Surgey, 2019). The study will provide valuable insights into the industry’s
dynamics and help companies develop effective strategies to maintain their competitive
advantage.
The study’s relevance is significant in the current business environment, where the beverage
manufacturing industry is experiencing significant changes due to changing consumer
preferences and increasing competition. Companies operating in the industry must understand
the factors impacting their performance and develop strategies to remain competitive
(Caiazza & Bigliardi, 2020). By analyzing the factors impacting the industry’s performance,
the study will help identify the key drivers of success for companies operating in the
beverage manufacturing industry. The study is crucial for policymakers and regulatory bodies
to understand the factors impacting the industry’s performance, enabling them to develop
policies that promote industry growth while protecting consumers’ interests. Therefore, the
study’s relevance is vital for the industry’s sustainability and growth, making it an essential
topic to explore.
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1.3 Research scope
This scope of the research is to conduct a critical and analytical study of the factors impacting
the performance of two major beverage manufacturing companies, Coca-Cola and PepsiCo.
The theoretical scope of the research is related to organizational performance, specifically in
the context of operations management (Hanaysha & Alzoubi, 2022). With a colossal
influence over the beverage industry, Coca-Cola and PepsiCo are massive conglomerates that
manufacture mixed drinks for consumers worldwide. The research will closely examine
specific elements that affect their achievements, like operational strategies, marketing tactics,
supply chain control, and inventive approaches. The comparative case study approach will be
used to analyze the performance of these two companies and identify the differences and
similarities in their strategies. The study will collect company performance information from
secondary data sources (Mikalef et al., 2019). The secondary data sources will include
academic research, industry reports, and company annual reports. The collected data will
identify patterns and trends using qualitative and quantitative research methods. A
comparative study of Coca-Cola and PepsiCo’s performance in the beverage manufacturing
industry will be conducted to add to the existing literature on organizational performance
(Zhang, 2019). This research will reveal critical factors that impact these companies’
performance and provide insights into industry best practices.
Introduction to Case study 1: Coca Cola
Coca-Cola is a multinational corporation primarily producing, distributing, and marketing
non-alcoholic beverages. In Atlanta, Georgia 1886, John Pemberton established the company
as medicinal. Coca-Cola, the company’s flagship item, was initially distributed through
Atlanta soda fountains and became exceedingly popular in no time. Throughout the years,
Coca-Cola has broadened its selection of non-alcoholic beverages, which now involve
carbonated soft drinks, juices, sports drinks, and energy drinks (Abu-Reidah, 2020). The
company’s most successful brand names are Sprite, Fanta, Minute Maid, and Powerade. One
of the top players in the beverage industry is Coca-Cola, which has had many successes in its
history of innovative product launches and marketing campaigns, cementing its brand and
increasing market share. Coca-Cola has firmly committed to environmental sustainability,
implementing initiatives to lessen its impact on the planet. Coca-Cola has consistently been
among the most profitable and largest beverage companies globally. As of 2022, the
company’s revenue was around 97.9 billion U.S. dollars, employing approximately 80,000
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people worldwide (Ridder, 2023). Coca-Cola’s success can be attributed to its strong brand
recognition, innovative products, and effective marketing strategies.
Introduction to case study 2: PepsiCo
PepsiCo is a global food and beverage conglomerate in Purchase, New York. Pepsi-Cola and
Frito-Lay merged to establish the corporation in 1965 (Rezk, 2020). PepsiCo has since grown
its range of brands and products via acquisitions and internal development. Currently, the
company works in over 200 nations and areas worldwide. The company offers a multitude of
merchandise, including bracing drinks, delectable morsels, fruit nectars, and athletic
beverages. Some beverage brands they sell are Pepsi, Yamulu, Jiachale, Tropicana, Aquafina,
and Lipton ice tea. Also, the company sells snacks such as Lay’s, DORITOS, CheetOS,
Tostitos, and Quaker OATS (PepsiCo, n.d). The company also has healthier snacks and
beverage combinations, including naked juice, Sabra Hummus, and SmartFood popcorn
(Kelloway & Miller, 2019). One of the essential advantages of Pepsi is its marketing and
advertising strategies. The company has invested heavily in high-profile marketing
campaigns featuring celebrities and athletes, which have helped to build brand recognition
and loyalty. PepsiCo has also employed cutting-edge marketing strategies, including social
media campaigns and smartphone applications, to interact with customers and advertise its
goods. The establishment has formulated audacious objectives to diminish its ecological
imprint and amplify its utilization of sustainable power origins. PepsiCo has also
implemented programs to support local communities and promote social responsibility. The
NASDAQ is where PepsiCo’s stock is listed, a publicly traded firm in the current year. As of
2022, the company’s revenue was around 86.39 billion U.S. dollars, employing
approximately 80,000 people worldwide (Ridder, 2023).
1.4 Methodology
The methodological framework employed in this study entailed a comprehensive approach to
secondary data collection techniques. The acquisition of secondary data encompassed an indepth review of industry reports, scholarly literature, and pertinent business records, enabling
a thorough exploration of Coca-Cola and PepsiCo’s accomplishments in the beverage
production sector and their strategic maneuvers. To provide structure and direction to the
analysis, established models of organizational performance, including Institutional Theory,
Stakeholder Theory, Resource-Based View Theory, Dynamic Capability Theory, and Agency
Theory, were employed as theoretical lenses. In order to ensure the robustness and credibility
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of the research, the sufficiency of the secondary data was rigorously assessed with an
emphasis on meeting the study’s objectives while also evaluating the reliability and
credibility of the data sources. Although the discussion on the research philosophy and
approach initially exhibited ambiguity, it was refined to emphasize an inductive approach.
Furthermore, while the initial rendition lacked an explicit section on the sufficiency and
credibility of secondary data, this has been addressed, underscoring the careful evaluation of
data sources to meet the research goals. The data analysis methodology employed content
analysis, which was systematically conducted with measures such as inter-coder reliability,
triangulation, and member checking, thus unveiling recurring themes and patterns within the
data (Morgan & Nica, 2020). Throughout the research process, stringent monitoring of data
collection and analysis instruments, along with meticulous attention to reliability and validity,
were maintained, thus enhancing the overall robustness of this chapter.
1.5 Research Aim, Objectives, and Central Research Questions
1.5.1 Research Aim
This research aimed to critically evaluate the factors impacting the beverage manufacturing
industry’s performance and analyze the strategies and tactics employed by Coca-Cola and
PepsiCo and their impact on performance.
1.5.2 Research Objectives
1. To understand the topic comprehensively, critically evaluate relevant theories and
literature about the beverage manufacturing industry.
2. To identify the key internal and external factors that impact the performance of CocaCola and PepsiCo in the beverage manufacturing industry.
3. To analyze the strategies and tactics employed by Coca-Cola and PepsiCo and
evaluate their effectiveness in enhancing their performance in the beverage
manufacturing industry.
4. To investigate the relationship between the identified factors and the performance of
the beverage manufacturing industry and provide recommendations for improvement.
5. To suggest practical solutions and recommendations for the beverage manufacturing
industry based on the findings of this study.
1.5.3 Central Research Question
1. What are the main factors impacting the performance of the beverage manufacturing
industry, specifically Coca-Cola and PepsiCo?
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2. How do the strategies and tactics employed by Coca-Cola and PepsiCo impact their
respective performances in the beverage manufacturing industry, and what
recommendations can be made for further improvement in the industry’s
performance?
1.6 Overview of the Study
Chapter 1: Introduction provides a brief historical development of the industry and its key
players and identifies various factors impacting performance.
Chapter 2: Literature Review reviews the relevant theories and identifies specific factors
impacting the industry’s performance.
Chapter 3: Research Methodology, which describes the research methods and techniques
used in the study, including data collection and analysis approaches and ethical
considerations.
Chapter 4: Findings and Evaluation, which presents the analyzed strategies and tactics
employed by Coca-Cola and PepsiCo and their impact on performance, identifies key drivers
of performance, and provides recommendations for improvement.
Chapter 5: Conclusion and Recommendations, which summarizes the contributions of the
research and provides recommendations for beverage manufacturing companies better to
meet their customers’ evolving needs and expectations.
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CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
This chapter critically and analytically reviews the literature on the factors impacting the
performance of the beverage manufacturing industry, specifically focusing on the comparative
case study of Coca-Cola and PepsiCo. The central research question aims to identify and
evaluate the key factors affecting the performance of these two multinational corporations
(MNCs) and compare their strategies and management practices. This is accomplished using
pertinent organizational performance ideas and theories to provide a conceptual framework for
the study issue.
2.1 Definition of Organisational Performance
Organizational performance is how an organization achieves its goals and objectives within
its operating environment. It is a critical measure of corporate success, and as such, it is an
area of great interest to scholars, practitioners, and policymakers. There are numerous
definitions of organizational performance, and in this section, we will critically evaluate three
definitions that view the first concept embedded in our research topic from different angles.
These definitions provide a foundational understanding of how organizational performance
can be measured and evaluated. The first definition highlights the importance of aligning
organizational goals with stakeholders’ needs and expectations (El Khatib e al., 2022). The
second definition emphasizes efficiency, effectiveness, and quality in delivering products or
services that meet customer needs. The third definition recognizes the importance of
adaptability and competitiveness in maintaining an organization’s long-term survival. While
each definition offers valuable insights into organizational performance, they also have
limitations in their narrow focus or lack of guidance on measuring internal factors like
employee engagement or leadership (Slåtten et al., 2019). Therefore, a comprehensive
approach is needed to measure and evaluate organizational performance effectively.
2.2 Critical Evaluation of Relevant Co
