merger of Pepsi-Cola and Frito- Lays. • Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. • The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. • PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion. Mission • “To be the world's premier consumer products company focused on convenient foods and beverages. ” • Seek to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate. • And in everything they do, they strive for honesty, fairness and integrity. Honours • Named one of the Best Graduate Employers in China by university students in China, for the second year in a row. • Doritos “Crash the Super Bowl” program won the 2007 Cannes Gold Medal Lions Award in the “Fast Moving Consumer Goods” category. • Covalence published its Ethical Ranking for 2006, ranking PepsiCo 6th for Best Reported Performance . • PepsiCo China was awarded a 2006 Best Corporate Public Image Award for its brand image of vitality and youthfulness. • Indra Nooyi receives India Abroad award. Company’s Structure • Co-founder of PepsiCo -Donald M. Kendall • Indra K. Nooyi -Chairman of the Board and Chief Executive Officer • Mitch Adamek -Senior Vice President and Chief Procurement Officer • Michael D. White -Chief Executive Officer, PepsiCo International and Vice Chairman, PepsiCo • Julie Hamp -Senior Vice President, PepsiCo Communications Sustainable advantage • Three major sustainable advantages give PepsiCo a competitive edge as they operate in the global marketplace:
• Big, muscular brands;
• Proven ability to innovate and create differentiated products; and • Powerful go-to-market systems. Competition • Their chief beverage competitor, The Coca-Cola Company, has a slightly larger share of carbonated soft drink (CSD) consumption in the U.S. and outside.
• PepsiCo have a larger share of chilled juices and
isotonics.
• Their snack brands hold significant leadership
positions in the snack industry worldwide. Financial position of PepsiCo (2006) • Volume growth - 5.5%. • Net revenue growth - 8%. • Division operating profit growth - 7%. • Earnings per share growth - 13%. • Total return to shareholders was 8%. • Return on invested capital was 26%. • Cash flow from operations was $6.1 billion and management operating cash flow was $4.1 billion. Risks • product demand, • their reputation, • information technology, • supply chain, • retail consolidation, the loss of major customers and failure to maintain good relationships with their bottling partners, • global, economic, environmental and political conditions, • the regulatory environment, • workforce retention and outsourcing, • raw materials and other supplies,& • competition. Logo Thank You