Essay Example about Knowledge Management and Processing at PepsiCo, Inc

Published: 2022-02-18 21:34:05
Essay Example about Knowledge Management and Processing at PepsiCo, Inc
Type of paper:  Essay
Categories: Management Knowledge Pepsi
Pages: 5
Wordcount: 1257 words
11 min read

PepsiCo, Inc (PEP) will serve as the organizational base for this project. The company is located in Purchase, U.S, and it is among the leading international food and beverage companies. PEP manufactures and distributes its goods in more than two hundred states. The beverage products of the company include sports drinks, ready drinking coffee and tea, bottled water, and carbonated soft drinks. The food staff portfolio includes flavored snacks, pasta, rice, chips, dairy products, and cereals (Eades, Thornhill & Eades 2017).

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Description of the Organization

The company's comprehensive labor force has grown over the years to the current 263,000 employees. PEP's recent annual report indicated that the company had a net income of $ 12.51 billion in 2018. Beverage accounted for 47% of sales, while the remaining 53% was brought in by food staff sales. Its total assets and equity in 2018 amounted to $77.64 billion and $14.5 billion, respectively. The company owns nine out of the forty biggest packaged product trademarks in the United States. PEP boasts several brands, twenty-two of them inclusive of Gatorade, Lays, and Pepsi, generating annual revenue of $1 billion (Eades et al., 2017).

Whether to discuss KM activities with company personnel

I have it in mind to discuss the knowledge management activities with the company's manager and head of departments. The discussion will grant me access to the organization and a sense of freedom while interacting with employees during the activities. Furthermore, discussing the activities could help me win senior management commitment and may even attract resources for implementation.

Area of the company you plan to redesign to support knowledge processing

The functional organizational departments in PEP include; finance, human resources, communications, universal research and development, comprehensive grouping and operations, legal and government affairs and talent management, training, and development. The areas I intend to redesign to enable knowledge processing will include operations precisely production, and the inclusive research and development departments.

Top three concepts from the McElroy reading (i.e., second-generation knowledge management)

First Generated Knowledge Management (FGKM) seeks after only improving amalgamation of knowledge in organizations through information capturing and sharing. On the other hand, Second Generation Knowledge Management (SGKM) also strives to enhance the integration of information in addition to sanitizing the process of information production. The coming of SGKM entailed the introduction of new and innovative concepts and insights which collectively gave SGKM real distinction from the FGMG. The concepts in the first generated model include data mining, coding, technology, data warehousing, document management, and imaging. The SGKM introduces eight other concepts, including; nested knowledge domains, supply versus the demand side, knowledge rules, knowledge processes, knowledge structures, knowledge of life cycle, complexity theory, and organizational learning (Hislop, Bosua, & Helms, 2018). This project will focus on the concepts of the knowledge lifecycle, the knowledge process, and the supply side versus demand-side knowledge management in relation to PepsiCo. Inc.

Supply-side versus the demand side

The first generated mode puts overwhelming emphasis on coding and dissemination of existing information to all employees in an organization. The model is referred to as supply sided since it assumes that information is already available, and the remaining bit is just sharing the knowledge. Conversely, the second generated model is demand sided as it advocates for enhanced knowledge production and improvement of the processes involved. Consequently, demand sided knowledge processing and management activities aim at improving the conditions that allow natural innovation and development. Besides being demand sided, the SGKM schemes are more holistic and balanced. The fact that it emphasizes new knowledge production does not make it less enthusiastic about the need for knowledge sharing (Yuan, 2019). This fact makes the model more ideal for organizations since it encompasses the entire knowledge cycle. Therefore, the demand sided model can be considered as an execution approach for organizational learning. This concept will be used in PepsiCo. Inc to accelerate the rate of innovations based on research, thus improving knowledge transfers for the company. Since the demand sided strategy is balanced, the distribution of the innovations and knowledge dissemination to all the subsidiaries will also be achieved.

The Life Cycle of Knowledge

The FGKM has a very simple information cycle. The model assumes that information is already existing, and it disregards how the data came to be. Predictably, this scheme emphasizes on information coding and transfer matters through technology advancement. The second-generation model recognizes the real life cycle of knowledge. It acknowledges that knowledge is created and then subjected to the validation process. The valid data then goes through coding, and operationalization follows. This leads to additional knowledge share or displacement of old information (Webb, 2017). In a nutshell, unlike the SGKM, the first generated model lacks the elementary theory of information and social recognition. The second model argues that organizations are not only engaged in information holding but also learning processes. Consequently, the most appropriate strategy for knowledge processing should improve organization learning through comprehending the life cycle of knowledge and how it applies to institutions. This concept can be applied to PepsiCo. Inc- department of global research and development. To enhance knowledge processing in this department, I would restructure the stuff therein and assign them different steps of knowledge life based on competencies. By so doing, knowledge production, validation, and integration in the company will be more effective. Innovations based on research and development will increase, and as a result, productivity will improve a great deal.

Knowledge Processes

The second generated model suggests that organizations should recognize the processes that spa knowledge production and its integration into operations of an organization, human affairs, and innovations. By so doing, the management can easily explain the enhanced performance and productivity of their firms (Liebowitz, 2019). The fundamental process of knowledge, including production, validation, and integration, will be applied in the production activities of PepsiCo. Inc. The production team will be persuaded to avoid reporting increases in production if the rise cannot be explained. The reporting process will include investigating the causes of improved productivity as a way of validation before such a report can be integrated into the company's production and financial records. This will create a culture of not just sharing information as proposed in the first generated model but that of sharing quality, verifiable, and validated knowledge. This concept will also be applied in the communications department to encourage senior management as well as the ordinary employees to validate and verify knowledge and information before sharing.

Conclusion Knowledge management and processing play an imperative role in the utilization of information within organizations. Knowledge processing enables managers and executive staff to better handle information within their reach. It also trains regular employees to share information and knowledge with their colleagues with minimal difficulty. This improves efficiency in handling and dissemination of subsisting and new information, which in turn enhances work productivity. Conceivably, knowledge processing can be expressed as special personal training since it is aimed at personal improvement with regard to particular areas. Perhaps the only difference from the ordinary staff training is that knowledge processing focuses on information management rather than skill development.


Eades, K. M., Thornhill, D., & Eades, K. M. (2017). PepsiCo, Inc.: Cost Of Capital. Darden Business Publishing Cases, 1-13.

Hislop, D., Bosua, R., & Helms, R. (2018). Knowledge management in organizations: A critical introduction. Oxford University Press.

Liebowitz, J. (2019). Building organizational intelligence: A knowledge management primer. CRC press.

Webb, S. P. (2017). Knowledge management: Linchpin of change. Routledge.

Yuan, D. (2019). Intelligent innovative knowledge management integration method based on user generated content. Cluster Computing, 22(2), 4793-4803.

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