Ethics Case Project: PepsiCo

Introduction

PepsiCo is a food and beverage company with the objective of offering the global market what is nutritious and healthy for human life. The organization competes well in the industry because it is the second best after Coca Cola from a global point of view. The paper enumerates in detail the case study revolving around the dilemma faced by PepsiCo, relevant stakeholders, and solutions to adopt to solve the problem. The above mentioned sections include the information of how the dilemma can be solved in an ethical manner and at the same time, produce impressive results in the market.

An Ethical Dilemma in a Business

An ethical dilemma demonstrated in a case study is whether PepsiCo should consider making healthier offerings in the business portfolio or follow their primary line of business. The problem arises because the company has been on the market for a very long time, but its shares are not increasing, and it is still the second best after the Coca Cola Company. Significantly, Indra Nooyi has perceived that she needs to devise new strategies so as to counter its competitors and become the best on the market. Unfortunately, the road to success is not easy as her approach has faced criticism both within and outside the industry. Thus, the dilemma of PepsiCo is to either make healthier offerings or to cover their area of expertise.

Relevant stakeholders

Customers

Customers are in need of what makes them satisfied in terms of cost and fulfillment after utilizing the contents of PepsiCo. They are primary stakeholders from this perspective as they can either choose to increase corporate profit or lead to the collapse of the company respectively. The clients in this case control the manner in which the business is conducted, and as a result, the fact that PepsiCo aims at taking care of human health is an appropriate approach. Significantly, customers are essential stakeholders in the business of PepsiCo as they establish the relevance of the organization to the industry.

Investors

The investors’ objective is to offer the organization monetary services and advice to help the business grow. The rationale for investment in PepsiCo is the same as in other firms, but the existing dilemma demands an elaboration of how the strategy of nutrition is going to be successful. Apparently, the investors impose requirements to be sure of what they are investing in, so as to ascertain that they do not sink their capital. Additionally, financiers are parts of this case study so as to ensure that the management team have taken the right steps into consideration to achieve results that are positive for their investment portfolio.

The board of the organization

The board’s objective is to ensure that everything initiated within the organization is successful and profitable at the same time. Accordingly, the PepsiCo organization board has to look at how Indra is performing her work as the chief executive officer to prevent possible collapse of the organization. The rationale for presence of the board in the firm is to monitor, propose, and advise the CEO on what to initiate to respond to possible challenges.

Potential Consequences to the Stakeholders

In every area of business, there are often both positive and negative consequences when a task is undertaken. Thus, the approach of Indra to developing the nutrition strategy in PepsiCo has its good and unfortunate outcomes as well, when the plan is impractical.

Customers

Consequences of the dilemma are both negative and positive, but it depends on a step taken by the firm. First and foremost, investment in the nutrition strategy is worthwhile for a client because of the challenges faced in the current market. The case study indicates that obesity rates as a result of consuming Coca-Cola is increasing on a daily basis. Consequences of corpulence are damaging for a country to bear because drug prices and tools are expensive.

Thus, the investment in the nutrition strategy will be significant as it will reduce obesity rates within the market, and hence ensure that people continue to purchase the PepsiCo products in the market. In cases when the firm cuts the investment in the nutrition strategy, there would be an increase in the number of obese people, which would ultimately lead to a reduced number of users. Thus, absence of the market would mean that there is a collapse of the business as no one is able to purchase the PepsiCo products.

Investors

Consequences of the investment are also both negative and positive, but it all depends on an approach taken by the organization. When the company opts to implement the nutrition strategy, there is a possibility of retaining their investments and increasing profit. On the other hand, in cases when the organization continues to follow their line of work, more competitors appears in the same industry, and as a result, sales might drop, which would sustain loss of profit.

The board of the organization

The board of the organization can also receive good and negative feedback respectively, but it will depend on a step taken by Indra. When the CEO invests in the nutrition strategy, and the process succeeds as the case study suggests, the board will be pleased and even give her positive references. If the strategy does not work, the firm will remain in its current state or even collapse. Because of the competition, the board can start recommending the chief executive officer negatively as they will blame her for not stopping the whole process initially.

Ethical Solution to the Dilemma

The issue at hand is developing the strategy of nutrition within PepsiCo so as to ensure that service delivery is safe for the clients. The dilemma is either to devise the plan or continue to conduct the business in the same line. Therefore, the ethical approach taken into consideration while solving the problem is formulating a strategy for each of the stakeholders to consider the relevance of the nutrition strategy. Ethically, the proposed solution will ensure that each shareholder understands the significance of the plan and as a result, confronts the dilemma. Accordingly, the firm will be abiding by the rules and regulations on problem solving, whereby each stakeholder in the organization should be a part of the implementation of the nutrition strategy.

Defining the contents of the plan to the stakeholders will enable each member to evaluate the relevance of the strategy from a personal and professional point of view in a positive way. The rationale for developing work ethic is the dilemma because the right choice will be initiated with the objective of receiving bigger market share for the company. Vividly, the proposed solution brings members of the organization together to explore the ways that promote the importance of achieving better results in the industry. Fundamentally, it is an ethical policy because the rules and regulations of work ethic come into force.

Conclusion

To summarize, a dilemma is an issue that needs a solution, and, available solutions are almost the same in terms of performance and feedback. Significantly, Indra, the CEO of the company, has proposed adopting the nutrition strategy. The plan is afoot to increase the market share for PepsiCo globally. The strategy works as a dilemma because of the difficulties it is facing. The problem concerns the market and effects on it in terms of obesity and the board of organization members at PepsiCo who are against the proposed strategy.

There is also the hindrance coming from the investors who are unsure about how to realize their investment at the organization because of the challenges the firm is facing. Thus, the primary stakeholders within the organization are customers, investors, and organization board. Lastly, the best solution to solve the dilemma of PepsiCo is to implement the nutrition strategy. The approach is ethical because such work environment is to generate significant results.