Pepsi Americas CaseAnalysisIntroduction:Due to a declining market for carbonated soft drinks and due to rising popularity of vegan and healthy eating movements across north America (Gagliardi, 2015) the market for carbonated soft drinks had been decreasing in the early 2000’s. As a countermeasure Pepsi would have to extend its product line to include products that would act in the favor of its brand image, re-endorsing it as a healthy lifestyle brand with sporty and universally acceptable products. However with this comes challenges posed at Pepsi. Due to the worsening Macroeconomic factors of 2008-2009, the functional operations at Pepsi (like procurement and delivery) had to be integrated to ensure their were sufficient cash reserves to make payments and to confirm payments were being made timely and that Pepsi’s customers would still have a relationship and do business with Pepsi despite financial difficulties. Through these efforts Pepsi reaped the rewards of upgrading its operational effectiveness with respect to logistical functions and improved its standing within the market place as a reliable supply side leader. •Describe the IT architecture (both type of IT architecture and its information system parts) at PepsiAmericas before its Customer Optimization initiative.System was haphazardly dependent on the familiarity Pepsi drivers have built throughout the years delivering pretty stable product quantities to customers on fixed routes that were consolidated into a total of 13 separate regional divisions. E each route had separate needs and therefore variability in IT requirements from regionto region was common This discrete system was supported by manual data entry on the part of the drivers who with the years found it increasingly difficult to gauge each routes quantity requirements Also meant it would be more difficult for managers (in control positions) to harness data and create relational databases that would represent parallel routes and therefore difficult to analyze consumer data.
•Describe the customer intimacy and operational excellence related information problems that drove PepsiAmericas to adopt a more aggressive attitude towards the capture, use, and dissemination of information.