Winning Hearts and Minds of Workers and the Trade Union: PepsiCo Acquires Duke & Sons Ltd, India

Abstract

PepsiCo's takeover of Duke & Sons Ltd. gave the company extra growth and a competitive edge that it was looking for to enter and compete with its other rivals in the food and beverage industry in India. The company faced enormous challenges during the transition period and it took almost a decade to successfully complete the integration process. Many of these challenges were manifested in values, attitudes, and behaviours which were rooted in Duke & Sons’ traditional cultural baggage. The case reports changes to employee relations, systems and policies during the takeover process between the two contrasting business environments; one being a traditional family owned company functioning in a highly unionised environment and another, an MNC representing global performance standards. The case highlights the issues that arise when contemporary transformational initiatives clash with traditional and rigid culture.