Around the world, we’re committed to giving people the taste they crave and the nutrition they need. We dream globally and act locally-constantly innovating to sustain our planet, our people, our communities and our business practices. New markets mean new ways of doing business, and new ways of addressing health concerns, cultural differences and environmental challenges. Every day is an adventure, and an opportunity for personal and professional growth.
Pepsi Co pwrpt
Carson ClarkShea KirkwoodBrenden Kelley William Ritter Summer Wert
Background PepsiCo is broken into 4 main divisions: PepsiCo Americas Beverages PepsiCo Americas Foods PepsiCo Europe PepsiCo Middle East & Africa
PepsiCo Industry Pepsi is the 2nd largest soft drink company in the world Frito Lay is the world’s largest salty snack company PepsiCo sells its products in 160 countries
Mission Statement “Our mission is to be the worlds premier consumerproducts company focused on convenient foods andbeverages. We seek to produce financial rewards toinvestors as we provide opportunities for growth andenrichment to our employees, our business partners and the communities in which we operate. And ineverything we do, we strive for honesty, fairness and integrity.”
Strategies being used (Grand/CorporateAND Business) Combination StrategyDefensive1. Laying-off employees to reallocate capital to marketing2. Increasing costs due to high commodity costsStability1. Redirecting attention to flagship brands
Strategies being used (Grand/CorporateAND Business) Continued….Growth1. Developing alliances with huge companies in all across world2. Diversified with beverages, salty snacks, nutritional3. Taking steps to surpass competitors across the world
Business Strategy Differentiation strategy Brand leveraging High quality vs competitors Able to serve all types of customers unlike any other competitor
Corporate Culture Quality Performance of their products & services Social Responsibility
Corporate Culture Performance with purpose “Blaze new trails. Never settle for second best. Succeed together, celebrate and do something bigger. That’s what performing with purpose is all about.”
Corporate Culture Employees Take initiative Pursue goals- without too much structure Easy access to higher management Allows ideas to be heard
Corporate Culture Encourage diversity Respect for one another unique traits, backgrounds, perspectives and experiences.
Strengths Branding-Pepsi is one of the most widely recognized brands in the world with 150 million in annual sales Tremendous growth from diversification such as: Lay’s chips, Mountain Dew, Tropicana, Aquafina and others Broad Product base allows for stability with fluctuating market and economic conditions Presence in over 100 countries
Weaknesses Overdependence on Wal-Mart, which accounts for over 12% of Pepsi’s yearly net revenue Wal-Mart’s business strategy influences Pepsi to keep prices low to maintain present contracts Despite international presence, 52% of market share originates in the US, leading to reduced production during periods of economic weakness
Opportunities Expansion into Europe with the acquisition of Vwater in the UK and Lebedyansky in Russia. Partnership with Unilever is expected to see continual growth (Lipton Teas) Bottled beverage sales including Aquafina and propel are expected to peak at the end of this year generating 24 million alone.
Threats With increasing health concerns, carbonated drink sales have been in continual decline. Intense competition from Coca-Cola has decreased market share Coca-Cola beat Pepsi in non-carbonated juice sales last year
Competitive Advantage Advertises towards the “New Generation,” “Generation Next,” or “The Pepsi Generation” Bought several fast food restaurants
Competitive Advantage PepsiCo customers buy their products because of taste, price, packaging, promotional factors, and a wide variety of brands They will be the first to use Ace-K A break through in sweeteners for diet sodas