Sun-Top Beverage Processing Co. Merges With PepsiCo Inc. - Essay Sample

Introduction

Sun-Top is a beverage processing company. Sun Top specializes in the processing of soft drinks and juices made from fruit pulp. The company produces mango, pineapple, apple, and orange flavors. The Kenya-based food company has created about 50 000 jobs (Sun Top, 2020). It competes coca-cola, PepsiCo Inc., and Del Monte for the beverage market in Kenya.

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An Overview of the Company Merged With

PepsiCo Inc. is a global food and beverage company. PepsiCo Inc. has processing plants and distributors in over 200 countries. Pepsi's major food products include pasta, cereals, dairy products, flavored snacks, chips, and rice. Also, PepsiCo Inc. has a portfolio for beverage products, which includes sport's drinks, carbonated soft drinks, juices, ready-to-drink coffee and tea and bottled water. The New York-based company makes at least $1 billion in revenues from the 22 brands it owns (PepsiCo Inc., 2020). PepsiCo Inc. has generated about 274, 000 jobs globally. PepsiCo's biggest rival is coca-cola in all parts of the world.

M Checklist for Unifying the Two Companies

Defining the Merger's Guiding Principles and Integration Strategies

Achieving a mutual agreement among the executive team is fundamental because it facilitates cooperation. I will achieve mutual agreement through a concise definition of the mergers principles and integration strategies, especially with the top management (Budhawar & Debrah, 2013).

Determining the Merger's Governance

Since the merger will bring the top leadership of the two companies, I will establish a new structure and protocols to accommodate the two companies. The new governance structure will outline the managers' roles and responsibilities so that there is harmony. Also, it will outline an organized governance framework. For instance, the unified governance structure and protocol will determine the number of managers, organize them into their respective departments, and lastly, ensure that they perform their assigned tasks (Rioux et al., 2019)

Post-Merger Integration Training

I will train the employees on the operational frameworks of the two companies. Training PepsiCo employees on Sun Top's operations acquaint them with skills of undertaking the company's operations, and the converse is true. The training will also acquaint them with the merger's new policies, practices, and operational model. The training will be based on the merger's operational frameworks, requirements, as well as the policies and practices governing them (Siriner, 2011).

Developing a Risk Management Framework

Sun Top and PepsiCo Inc. face characteristic challenges and risks at their respective capacities. When merged, the risks posed to the resulting company become complicated. In response, I will create a risk management framework to ensure that any risks are addressed with optimum professionalism, and it does not affect operations. The risk management framework will outline the roles and responsibilities of every stakeholder involved so that there are harmony and cooperation in risk management (Siriner, 2011).

Developing Communication and Cultural Integration Frameworks

Arguably, it is undeniable that both Sun Top and PepsiCo Inc. will come along with communication strategies unique to them. Cultural differences and the need for effective communication among all employees will call for a uniform and acceptable communication strategy. I will study the most common and simplest form of communication that can be adapted by employees from the two companies. I will also recommend and deploy the use of a common language in particular regions to enhance efficient communication. Cultural tolerance is imminent because the merger will have employees from different cultural backgrounds (Siriner, 2011). I will create awareness on cultural competence and encourage tolerance among the employees and the management. I will also put in place strict disciplinary measures to tame persons violating the set standards.

Integrating Projects

Sun Top and PepsiCo Inc. differ in projects. However, there is a need to integrate them to enable the integration of activities such as procurement and processing operations. I will get experts and processing professionals to study the nature of operations of the two companies, after which they will help with comparison to determine the operations to integrate. The integration will ensure that corresponding and similar operational activities are undertaken together to cut down operational costs (Budhawar & Debrah, 2013).

Integrating Staffing and Employee Retention

Staff retention will be based on the terms of employment. While I will retain permanent employees in both companies, I will put casual laborers on hold as I monitor the operations to establish deficits in the workforce. In the process, I will also establish employee integration so that I do not hire others or contract casual laborers. I will study the nature of operations in both companies, and probably propose the sharing of processing plants to ensure that all operations are undertaken in one premise (Budhawar & Debrah, 2013).

The Rationale for Selecting the Checklist

The checklist for integrating Sun Top and PepsiCo Inc. is based on the economic aspect of operations, the pursuit of efficiency, and the quality of products. Some of the decisions are based on the global demand for high-quality products. For instance, quality production of foodstuff, effective communication among the workforce, performance management, and cultural competence enhances effective productivity (Siriner, 2011).

Cultures, Globalization, and Labor Markets, and their Implications on HRM

Assessing Corporate Cultures

The dynamics of labor markets, cultural differences, and general globalization demands have forced HRM to establish consistent corporate values across different countries. HRM, in response, has globalized its practices. Globalized practices include selection, training, development, and compensation (Rioux et al., 2018). Pursuing common corporate values establishes fairness and equality among employees across different countries in which organizations operate.

Formulation of Human Resource Practices and Policies

HRM must tailor its practices and policies to embrace the global landscape of labor markets and forces of globalization to tap globalization's benefits. Globalization, coupled with global competitive pressures, has precipitated the arrival of flexible operations, lean production approaches, and contingent reward methodologies progressively to enhance efficiency (Budhawar & Debrah, 2013). Consequently, globalization challenges HRM, especially regarding practices and policies touching on industrial relations. HRM, therefore, has established globally-acceptable labor laws, policies, and practices through which employees are handled and disputes solved.

Leadership Development and Management Changes

Globalization, cultures, and labor markets streamline HR practices to the core of the profession. It demands excellent performance management, transparent and merit-based selection, and recruitment of employees, as well as rewarding performing organizational departments and employees. The necessity of leadership development, coupled with management changes, demands excellence in talent management, change and leadership management, effective succession planning, strategic compensation, and merger integration among HR professionals (Siriner, 2011).

Conclusion

Merging Sun Top and PepsiCo Inc. shapes HRM activities regarding quality and performance management, employee recruitment, training, compensation, and policy development and practices. Also, it necessitates a checklist that facilitates a successful merger. The checklist above will facilitate Sun Top-PepsiCo Inc. merger. It will address issues, crisis, and confusion that may arise.

References

Budhwar, P. S., & Debrah, Y. A. (2013). Human resource management in developing countries. Rutledge. Retrieved from https://books.google.co.ke/books?id=vefB8b9-FdYC&pg=PA251&dq=Formulation+of+Human+Resource+Practices+and+Policies+by+hr+in+globalization&hl=en&sa=X&ved=0ahUKEwj4muXcrfXnAhW1BGMBHYIUDt4Q6AEIQDAD#v=onepage&q=Formulation%20of%20Human%20Resource%20Practices%20and%20Policies%20by%20hr%20in%20globalization&f=false

PepsiCo Inc. (2020). PEPSICO INC.: About the Company. New York. Retrieved from https://www.pepsico.com/about/about-the-company

Rioux, S. M., Bernthal, P. R., & Wellins, R. S. (2018). The globalization of human resource practices. NHRD Network Journal, 2(1), 88-91. Retrieved from https://www.ddiworld.com/resources/library/trend-research/the-globalization-of-human-resource-practices

Siriner, I. (2011). Globalization: Dimensions & impacts. International Jou, 2011. Retrieved from https://books.google.co.ke/books?id=taez6CW2ni4C&pg=PA143&dq=leadership+and+management+changes+in+HR+BECAUSE+OF+GLOBALIZATION&hl=en&sa=X&ved=0ahUKEwiP2cCmrPXnAhU9SRUIHVjND0MQ6AEIYTAH#v=onepage&q=leadership%20and%20management%20changes%20in%20HR%20BECAUSE%20OF%20GLOBALIZATION&f=false

Sun Top. (2020). Bidco's Sun Top Juices. Retrieved from https://www.bidcoafrica.com/bidco_products/suntop/