Pepsi Diversification

(1) I think it was a good decision for PepsiCo to adopt diversity as a strategic priority in 2001, because by encouraging executives to meet diversity-related objectives, the company could easily break down the barriers between employers and employees, especially between employers and minority employees. Diversity strategy gives managers a chance to perceive the attitudes of their employees. A close relationship between managers and employees makes employees consider their perceived performance level important to self-worth. Diversity strategy also increases the job satisfaction and organizational commitment of minority employees. In most cases, there is a positive relationship between job satisfaction and job productivity. In general, PepsiCo’s diversity strategy united company’s employee and made them efficient during the work.
a. Many people immigrated to the United States. Second or third generation of immigrants grew up. Demographics of the US have been shift. Reinemund realized the huge market among the minority population. He believed the company needed an employee base that reflected the consumer base. By building up the diversity reputation, PepsiCo would be able to take the market of minority and make money out of it.
(2). Before asked by the Stanford MBA student, I would give PepsiCo CEO 8 out of 10 in implementation. PepsiCo were doing the right things: they let managers talk to their employees. They increased the job satisfaction of minority employees and most importantly, they made money out of diversity. However, the CEO was not sure whether the entire company truly accepts the diversity spirit. Managers could misunderstand the importance of diversity. They might be just doing what they should do in order to gain the minority market. However, after stumbling through the answer to the Stanford MBA student, the CEO realized the true importance of diversity and changed the culture in PepsiCo. I would give him full credit for making diversity