INDUS INSTITUTE OF HIGHER EDUCATION

S/O : MUHAMMAD ANWAR

STUDENT ID : 786-10E
CLASS : MBA (EVENING)
SUBJECT : M.I.S








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TABLE OF CONTENTS

ACKNOWLEDGEMENT ....................................................................... 4
ABOUT PEPSI CO ............................................................................... 5
EXECUTIVE SUMMARY .............................................................. 7
Introduction to Information Systems ............................................... 8
How MIS obtain data from Organizations TPS ............................ 99
Decision Support Systems (DSS) ....................................................................................................... 10
Executive Information Systems (EIS)............................................................................................... 100
Relationship of Systems to one-another .............................................................................................. 11
ERP SYSTEMS ............................................................................ 122
Enterprise Resource Planning............................................................................................................. 13
ERP systems automate business processes ......................................................................................... 13
ERP bringing the organization together ........................................................................................... 14
Management Information System In PepsiCo ............................... 15
Status of MIS ..................................................................................................................................... 15
Strategic Business Units ..................................................................................................................... 15
Business Process ................................................................................................................................ 16
Current Enterprise Application ..................................................... 16
Current Enterprise Resource Planning Systems (ERP) .................................................................... 16
Current Supply Chain Management (SCM) .................................................................................... 16
Current Customer Relationship Management System (CRM) ......................................................... 17
Proposed Enterprise Applications.................................................. 18
Proposed ERP System ........................................................................................................................ 18
Proposed SCM System....................................................................................................................... 18
Proposed CRM System ...................................................................................................................... 18
Electronic Business Application in Pepsi Co .................................. 19


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Information systems in PepsiCo ..................................................... 23
Softwares Used by PepsiCo ............................................................ 25
Conclusion ..................................................................................... 27
Recommandation ........................................................................... 28
References ...................................................................................... 29






















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ACKNOWLEDGEMENT


I am highly Grateful to Almighty Allah
who gave me Power to complete this
report and I am also highly thankful
to my honorable teacher Sir SAAD
for his support and guidance.






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ABOUT PEPSI CO

MISSION
To be the world's premier consumer products company, focused on convenient foods and beverages.
We seek to produce healthy financial rewards to investors as we provide opportunities for growth and
enrichment to our employees, our business partners and the communities in which we operate. And in
everything we do, we strive for honesty, fairness and integrity.

VISION
"To build Pakistans leading total beverage company, delighting consumers by best meeting their
everyday beverage needs, and stakeholders, by delivering performance with purpose, through our
talented people."

SUSTAINABILITY VISION
"PepsiCos responsibility is to continually improve all aspects of the world in which we operate
environment, social, economic creating a better tomorrow than today"
Tomorrow better than Today


HISTORY AND PROFILE
PepsiCo entered Pakistan and has grown to become the countrys largest selling food and
Beverage Company. One of the largest multinational investors in the country, PepsiCo has
established a business which aims to serve the long term dynamic needs of consumers in
Paksitan.
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy
as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie
options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,
isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks
Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation
Nimbooz by 7Up. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to
the diverse range of brands.


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PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito
Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips, Cheetos
extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands and
the recently launched Aliva savoury crackers. The companys high fibre breakfast cereal,
Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to
consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps and Cheetos are cooked in
Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary
nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee
owned. In addition to this, PepsiCos Frito Lay foods division has 3 state-of-the-art plants.
PepsiCos business is based on its sustainability vision of making tomorrow better than today.
PepsiCos commitment to living by this vision every day is visible in its contribution to the
country, consumers and farmers.














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EXECUTIVE SUMMARY

Introduction
PepsiCo is a world leader in convenient snacks, foods & beverages, with revenue of more than
$39 billion & more than 1, 85,000 employees. The company consists of PepsiCo American
Foods (PAF), PepsiCo Americas Beverages (PAB) & PepsiCo International (PI). PAF includes
Frito-lay North America, Quaker foods North America & all Latin America food & snack
businesses. PAB includes PepsiCo Beverages North America & all Latin America beverage
businesses. PI includes all PepsiCo businesses in UK, Europe, Asia, Middle East & Africa.
PepsiCo brands are available in nearly 200 countries & generate sales at the retail level of more
than $98 billion. Some of PepsiCos brands names are more than 100 years old, but the
corporation is relatively young. PepsiCo was founded in 1965 through a merger of Pepsi-Cola &
Frito-Lay. Tropicana was acquired in 1998 & PepsiCo merged with Quaker Oats Company,
including Gatorade, in 2001.
PepsiCo offers product choices to meet a broad variety of needs & preferences from fun-for-
you items to product choices that contribute to healthier lifestyles. PepsiCos mission is To be
the worlds premiere consumer Products Company focused on convenient foods & beverages.
We seek to produce healthy financial rewards to investors as we provide opportunities for growth
& enrichment to our employees, our business partners & the communities in which we operate.
And in everything we do, we strive for honesty, fairness & integrity.

PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York. The 7 building headquarters
complex was designed by Edward Durrell Stone, one of Americas foremost architects.
Haidiri Beverages Private Limited, Pakistan
The Haidiri Beverage Group was set up in 1979 and is Pepsis sole selling agent for District
Rawalpindi and Islamabad It is based in the CDA industrial Triangle, Kahuta Road, Islamabad. It
manages the supply for several whole sellers, retailers, restaurants, hotels and other such food
outlets .In order to achieve the projected sales target effectively, the organization ensures a
comprehensive strategic alignment with the overall PepsiCos business strategy. The units


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primary functions are to conduct a systematic manufacturing & supply of the product without
any tactical flaws. Pepsi products are safe, Pepsi analyze water, sugar & flavorings in accordance
with the best international guidelines. Pepsi products comply with most stringent international
regulations, including the new regulations for carbonated soft-drinks.

Introduction to Information Systems











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Role of Information Systems in a business:
Firms invest in information systems in order to:
y Achieve operational excellence.
y Develop new products & services.
y Attain customer intimacy & service.
y Improve decision making.
y Promote competitive advantage.
y Ensure survival.
How MIS obtain data from Organizations TPS





In the system illustrated by this diagram, 3 TPS supply summarized transaction data to the MIS
reporting system at the end of the time period. Managers gain access to the organizational data
through the MIS, which provide them with appropriate reports.



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Decision Support Systems (DSS)
y It supports non-routine decision making for middle level management. For e.g. what
would impact on production schedules be if the sales doubled in any previous month?
y It uses information from TPS, MIS & external sources.
y The system uses various modules to analyze the data.
y It focuses on extracting, analyzing information from large amounts of data.



Executive Information Systems (EIS)

y This type of information serves senior managers.
y It addresses strategic issues & long term trends for e.g. what types of products should we
make in next 5 years?
y The system addresses non-routine decision making.
y It provides generalized computing capacity that can be applied to changing set of
problems.
y The system draw summarized information from MIS, DSS & data from external events.
y It typically uses web portal interface to present the content.





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Relationship of Systems to one-another

TPS: it is the major source of data for other systems.
EIS: it is primarily a recipient of data from lower level systems.
Exchange of data between functional areas for e.g. sales order transmitted to
manufacturing system.




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ERP SYSTEMS

ERP systems integrate business processes & information from entire enterprise. The system
helps in coordinating the operation of business functions. ERP systems are software packages
that can be used for the core systems necessary to support enterprise systems.




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Enterprise Resource Planning

At the heart of all ERP systems is a database, when a user enters or updates information in one
module, it is immediately & automatically updated throughout the entire system.


ERP systems automate business processes






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ERP bringing the organization together


After implementing ERP






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Management Information System In PepsiCo

The microcomputers are linked up to PepsiCos central computer system daily to update
inventory information system. Management estimates that over $25,000 (Rs. 12,50,000) per year
may be saved because of the system.
1. In PepsiCo it helps to recognize market trends: MIS helps PepsiCos managers to
recognize market trends, in respect of price, designs of products, fashions etc. timely
information of the market trend enable the firm to follow the right course of action.
2. It facilitates marketing planning & control: effective marketing planning is required in
terms of product planning, pricing, promotion & distribution. Such planning will be
possible only if the company is possessing adequate & relevant information. This is also
possible through MIS.
3. Quick supply of information in PepsiCo: today a form has to take quick decisions, for
this purpose it requires fast flow of information which is facilitated by a properly
designed MIS.
4. Improves quality of decision making: properly designed MIS supplies reliable &
relevant information. With the help of computers & other data processing equipments, the
marketing managers over there can make effective decisions at the right time.



Status of MIS

Computer Based Information Systems:
Electronic Data Interchange (EDI)
Information exchange between companies.
Direct Exchange (DEX)
Information exchange between hand-held computer & stores delivery system.

Strategic Business Units
1. A distinct mission & specific target market.
2. Control over their resources.
3. Their own competitors.


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4. Plans independent of other businesses.

Business Process
There are so many products, operations centers, & offices required for massive co-ordination of
each department, activity, geographic location & employees. PepsiCo uses MySAP Business
Suite applications in the management of their enterprise resource management. The systems help
to standardize the internal software & systems through the elimination of legacy systems, thus
reducing the redundancy & error that are common in nature of legacy systems. The system is
built with the industry best practices that allow Pepsi to be at the forefront of the industry in each
area of the business.

Current Enterprise Applications:

Current Enterprise Resource Planning Systems (ERP)
The ERP Corporate portion of MySAP serves to streamline the processes of everyday business to
reduce costs. It has reduced the number of steps needed to accomplish a single activity by not
sending it through as many departments. Also included is a tool related to reducing travel
expenses. There is, of course, a portion of software devoted to financial & management
accounting. These programs are linked to the production lines & the sales software in order to
account for certain expenditures & sales.
The Enterprise Performance Management portion of the software is used to measure how
management objectives are being met by profits. This then allows managers to plan & strategize
for operations, profit & growth. It allows for the integration of information from, for e.g., both
human resources & operations, in order to budget personnel for a specific production line. The
entire company can be consolidated into representation in single budget. Individual employees at
all levels of the organization are able to access information documenting their own contributions
& the progress made within their department.
Another important part of the ERM at Pepsi is the Enterprise Human Capital Management. This
system has processes that help managers place employees, provide rewards for performance &
promote valuable employees.

Current Supply Chain Management (SCM)
PepsiCo is in charge of managing the suppliers of many of its smaller subsidiaries. Right now
PepsiCo has many bottling plants situated all over the globe. PepsiCo must make sure that all of


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its suppliers (water, corn syrup, food colorings, carbonation, plastics, aluminum & paints etc.)
come into an appropriate plant so as to keep customers satisfied with no shortages, yet not make
too much additional inventory in stock which hangs up extra resources & cash flows. As stated
earlier, PepsiCo uses the help of MySAP Business Suites applications for its business solutions.
MySAP helps communicate with its suppliers & generate forecast of demand so than an
overabundance of inventory does not happen.
MySAP helps PepsiCo generate a forecast in order to keep up with demand. Forecast takes into
account past sales plus additional information about sales right now, seasonal changes, economic
turns, diet habits, health changes & environmental changes.
PepsiCo also has been trying to broaden their supplier base. They have a program in place to
encourage minority & women in their business program. In fact, in October 2004 both PepsiCo
& Toyota received a Corporation of the Year award from the National Minority Supplier
Development Council. The encouragement will encourage suppliers to take part in PepsiCos
functions & hopefully broaden their customer & market base.

Current Customer Relationship Management System (CRM)
Businesses use customer relationship management system to capture & integrate customer data
from all over the organization, consolidate the data, analyze the data & then distribute the results
to various systems & customer touch points across the enterprise. These systems are useful in
improving sales, marketing & customer service in a business. Through the use of CRM system,
PepsiCo has been able to deliver top-line growth & superior customer service.
Pepsis current CRM application has allowed for conversion of former disparate sales systems
into an integrated internet application solution, a 360 degree view of the entire customer base,
simplification of the resolution process, accurate & timely deliveries & reduction of product
inventory close time by 1-2 days. Through the use of real time customer information, the
managers are able to have up-to-date information on any issue of needs of the customer through
their account, allowing a clear picture of their customers & their relationships with the company.
This also allows workers to uncover potential sales opportunities with their customers. The real
time information system is also used to improve customer interaction & satisfaction through the
use of help desks, customer service representatives & allowing customers themselves to access
the real time information system. Pepsi uses CRM applications to determine profitable
customers, uncover potential sales opportunities, improve customer interaction & relations &
provide the enterprise with up-to-date information.



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Proposed Enterprise Applications

Proposed ERP system
Something that PepsiCo could do to improve their ERP is to take the advantage of Business
Process Outsourcing. for a growing number of organizations, outsourcing peripheral activities
Business Process Outsourcing (BPO) to external providers is becoming an attractive, cost
effective alternative to handle them initially. By outsourcing non-core business processes, such
as human resources & procurement, companies can focus more on core competencies & free up
valuable resources to drive growth & innovation, which is essential in todays tough markets.
MySAP does not provide BPO services, but SAP supports BPO providers in setting up services
that generate sustainable business benefits by reducing costs, lowering risks & improving
process quality.
Proposed SCM system
We would like to propose to do things as they are doing it right now, because they are doing a
good job, but like any business, they can never be too careful, especially if PepsiCo continues to
encourage more suppliers to enter their domain. PepsiCo needs to keep an information system
like MySAP that will integrate all their suppliers to the main needs. PepsiCo needs to also make
sure that whatever information they use in future can accurately predict changing consumer
demand.
Proposed CRM system
Overall, Pepsis CRM applications seemed to have greatly improved after trying a new variety of
software systems. Currently, PepsiCo is using MySAP enterprise applications, where they had
previously used other applications including Oracles PeopleSoft. We see the current CRM
application as being very beneficial to the company. One proposition that would more likely
improve the system is the integration of a CRM application across all subsidiaries under
PepsiCo. This will allow for further interaction between the company & the customers to see
where the improvements in the interactions can be made, as well as to determine overall
profitability of the customer. We also feel the CRM application can be used to develop future
marketing campaigns to meet the needs & desires of customers in specific areas. Other than these
minor changes, we feel that the present CRM application is very promising for PepsiCo.





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Electronic Business Applications in PepsiCo
PepsiCo & Pepsi Bottling Group (PBG) select MEDSTAT Advantage Suite System to
manage Employee Benefits.
This multi year license agreement provides PepsiCo & PBG with a Decision Support System
(DSS) & reporting applications for proactively managing individual & organizational health in
order to improve productivity & profitability.
The MEDSTAT decision support system integrates all our health benefits information into a
single, central source. It will enable us to understand the potential impact of benefit plan
design changes & evaluate the clinical effectiveness of our benefit programs. Greg Heaslip,
director of benefits at PBG added, We plan to use the system to help us identify the drivers of
rising healthcare expenditures & ensure all employees are receiving the highest quality care
available.
PepsiCo provides health benefits for more than 1,16,000 employees & the retirees while PBG
covers some 83,000 employees & retirees.
MEDSTAT advantage suite seamlessly integrates data warehousing capabilities, advanced
healthcare analytic methodologies & business intelligence applications to provide a powerful
decision support solution.
Predictable supply &
demand
Predictable supply &
uncertain demand
or uncertain in
supply & predictable
in demand
PEPSICO
Highly uncertain
supply & demand


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Supply chain strategy or design
During this phase a company decides how to structure the supply chain over the next several
years. The company makes long term decisions in regards to location & capacities of production
& warehousing facilities, the products to be manufactured or stored at various locations, the
models of transportation to be made & information systems & so on. The supply chain design is
very expensive to alter on short notice & supports the companys strategic objectives. In order to
ensure a good supply chain strategy, planning is to be made years in advance. The unit has
several contracts with manufacturers & receives raw materials on a convenient basis. The
company also decides where production plants are to be placed. The company has to provide &
manage transport for the delivery of the products as well as the arrangement of 3
rd
party services
for the procurement of the products. The shipping department handles orders & the transport
department decides the vehicles for safe delivery.
Material planning & sourcing is carried out as well. Sources of supply of raw material both local
& foreign are identified & terms & conditions are negotiated. Capacity planning is also done at
this stage. Sales forecasting & production planning depends upon the capacity of the
organization with respect to:
1. Production.
2. Storage: raw & packing.
E
system
F M
Finance
Resource
Management
SCM
Supply Chain
Management
H M
Human
Resource
Management
C M
Customer
Relationship
Management
M
Manufacturing
Resource
Planning


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3. Storage: finished goods.
The unit has a procurement budget of approximately Rs. 3 billion. Approved suppliers cant go
beyond this budget the supplier is audited by the most efficient quality control department.
Distributors are also decided by the company, keeping in mind past performances.
Supply chain planning
As the above configurations have been set, planning must be done within the above stated
constraints. Planning establishes parameters within which a supply chain will function over a
period of time. Companies start the planning phase with a forecast for the coming year of
demand. Pepsi carries out sales forecasting for local demand as well as for export purposes to
countries such as Nepal, Bhutan & Bangladesh. The annual sales target is conveyed to the supply
chain department of the unit. Planning is carried out on a monthly, weekly & daily basis.
Supply chain operation
Company makes decision regarding individual customer orders. The goal of supply chain
operations is to handle incoming customer orders in the best possible manner. During this phase,
firms allocate inventory or production to individual orders, set a date that an order is to be filled,
generate pick lists at a warehouse, allocate to shipping, set delivery & so on. There is less
uncertainty about demand. At this unit, sales & supply chain departments get together to decide
the inventory usually on a weekly basis.
Achieving the strategic fit
Making one stage more responsive allows the other stage to focus on being more efficient. The
Pepsi supply chain assign different roles to its different stages, the company has to decide either
to transfer the responsiveness to manufacturing stage or the retailer stage. While discussing
Pepsis supply capability it is seen that Pepsi tends to be more responsive in cities & a bit less in
towns. Therefore, transferring the responsiveness to the retailer & distributor, allowing them to
face the higher implied demand uncertainty. This in returns allows the manufacturer & supplier
to be more effective. At the same time, multiple beverages type contributes to a broader product
portfolio causing the unit to adjust its strategies accordingly; tailoring the supply chain to best
meet the needs of each beverage demand.

Expanding strategic scope of Pepsi
In Pepsi the agile inter-company scope of strategic fit is essential because the competitive
playing field has shifted from company-versus-company to supply chain-versus-supply chain.
Strategic scope must cover all these boxes, at least at the supply chain end. The agile inter-
company scope of strategic fit requires the company to evaluate very action in the context of the


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entire supply chain. As competition increases, Pepsi is expanding their strategic scope as they are
increasing their product line by adding Pepsi Max, Mountain Dew & Mirinda Apple to
their beverage line.
Human resource management
In PepsiCo the goal of HRM is the effective & efficient use of the human resources of a
company:
Human resource information systems are designed to support:
Planning to meet the personnel needs of the businesses.
Development of employees to their full potential.
Control of all personnel policies & programs.
Accounting information systems
In PepsiCo computer based accounting information systems record & report the flow of funds
through an organization on a historical basis & produce important financial statements such as
balance sheets & income statements. Also emphasizes on Cost Accounting reports, Development
of Financial budgets & Projected Financial statements, Analytical reports comparing actual to
forecasted performance.

Technological factors in PepsiCo
Development of additives such as sugarless sweeteners, caffeine free products & new flavoring
enables PepsiCo to provide products that meet changing customer tastes & preferences. In
addition, computerized manufacturing technologies are great contributions to higher efficiency &
quality in bottling operations. For Pepsi, a critical business challenge is ensuring the distribution
processes can deliver the right products to the right customers at the right place & at the right
time. According to Jerry Gregoire, Vice President, Information Services, the competitive
advantage will go to the company that can apply technology to areas such as logistics, getting
costs out of the distribution pipeline & getting products into the stores less expensively while
increasing the availability of sales information. Pepsi North Americas data communication
network is an important element in the companys efforts to address sales & distribution
challenges with technology. Sales data also helps Pepsis managers make decisions about
products before they reach the freshness date & must be pulled from the shelf & discarded.
Strategic alternatives
Out of the many strategic alternatives that PepsiCo could choose to follow, we have chosen to
endorse one that fosters continued growth & diversification. Although their over-satisfied


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portfolio has hindered their international growth, these strategies strengthen their overall
corporate worth & make presence domestically.
Pepsi should focus on increasing sales globally to compete effectively with Coke. They have
been beaten badly in some markets & need to focus more on un-tapped areas.
They should:
y Continue to diversify their beverage selection through acquisitions. This will enable
PepsiCo to combat the decreased interest in Cola. Going along with this, PepsiCo needs
to ensure that they can properly manage all of these acquired companies & should divest
that show limited potential.
y Increase the use of exclusivity agreements to boost their sales in key markets. This may
make it harder to keep costs low but will ensure added revenues. Another reason why
Coke has continued to beat Pepsi is through its exclusivity agreements with restaurant
chains, sports & entertainment complexes & college campuses. More attention in this
area will help to battle Cokes dominance.
y Capitalize on their aggressive corporate culture in overseas dealing. This can help to
combat the weakness of their current international strategies.

Information systems in PepsiCo

In responding to market demands for efficient 24 hour order-to-delivery process for customer
orders, PepsiCo has installed a computer system that links an effective wide area network that
allows immediate transmission of customer orders.
The outcome has been to integrate with a wide area network, transmit accurate, complete
customer data, allowing the company to more efficiently loads trucks, schedule deliveries & save
labor hours. Information systems link the vendor partners, who share relevant work, personal, &
health related information about employees.

Logistics
In order to manage its distribution systems effectively, PepsiCo had put in place advanced
logistics systems. PepsiCo sold beverage concentrate to bottlers, who added carbon dioxide,
sweetener & water to make beverages & beverage syrup. Syrup was sold either directly to the


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fountain accounts or was combined with carbonated water for bottling. Bottling companies were
owned & operated by local companies in the countries where PepsiCo operates.
The transportation network has been designed with a view to ensure responsiveness & boost the
availability of the product. For the unit we visited, using fast mode of transport increases
responsiveness as well as the transportation cost but lowers the inventory holding cost. The unit
decides different mode of transportations having different characteristics with respect to speed &
size of shipment.
Electronic commerce in PepsiCo
Pepsi takes the plunge with an online campaign
PepsiCos recent announcement that it would conduct a joint promotion of its products with
Yahoo, one of the most popular sites on the internet, is promising news for website operators that
have struggled to persuade the richest advertisers to spend their money online.
Even as the internet achieved mass market audience levels, consumer goods advertisers like
Coca-cola, Nabisco & until now Pepsi, have kept their wallets shut, spending mere pocket
change on the web. They have argued that the medium may be great for direct marketing, but it
does little to advance their primary advertising goal: increasing brand awareness.
SAP announced global brand leader PepsiCo has selected MySAP Business Suite
SAP has announced that global brand leader PepsiCo has selected MySAP Business Suite as the
primary business platform for unifying its operations, standardizing business processes &
increasing efficiency across its divisions. The USD 27 billion convenience food & beverage
company produces Frito-Lays snacks, Pepsi-cola beverages, Gatorade sports drinks, Tropicana
juices & Quaker foods.
SAP spokespeople declined to comment the value of the deal in monetary terms. John Grozier,
SAPs Vice-President of CRM product marketing, told CRM buyer in an interview that PepsiCo
selected MySAP to kick off a major business transformation for the company.
Information Technology improvements
Executive Support System (ESS) ability to closely monitor sales/market share.
Decision Support System (DSS) reduces costs of raw materials & supplies.
Packaging Application Expert (PAX) automates production & logistical processes.
Transaction Processing System (TPS) saves 30-50 thousand man hours weekly.
Management Reporting System (MRS) eliminated stales, improved product
quality, less waste & encompasses profit-vision.



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Marketing & Sales strategies
PepsiCo has developed the national marketing, promotion & advertising programs that support
its many brands & brand image; oversees the quality of the products; develops new products &
packaging, & coordinates selling efforts.
Competitive advantages of Information Technology
y Inter-relates with strategic strategy.
y Creates barrier for new competition.
y Makes switching bands difficult for retailers.
y Gains efficiency through value chain analysis.
y Provides centralized data.

Competitive disadvantages of Information Technology
y Creates claims of unfair competition.
y Shelf space issues.

Softwares Used by PepsiCo

MySAP Business Suite
PepsiCo Inc. has selected SAPs full MySAP Business Suite to streamline its distribution &
delivery processes, improve planning & forecasting & give better visibility to its global supply
chain.
PepsiCo, which manufactures, distributes & markets Frito-Lays snacks, Pepsi-Cola beverages,
Gatorade sports drinks, Tropicana juices & Quaker foods, is aiming to better link its supply chain
& inventory data with its customer data.
PepsiCo softwares costs
PepsiCo capitalize certain computer software & software development costs incurred in
connection with developing or obtaining computer software for internal use when both the
preliminary project stage is completed & it is probable that the software will be used as intended.
Capitalized software costs include only:


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1. External direct costs of materials & services utilized in developing or obtaining computer
software.
2. Compensation & related benefits for employees who are directly associated with the
software project.
3. Interest costs incurred while developing internal-use computer software.
Capitalized software costs are included in property, plant & equipment on the balance sheets &
amortized on a straight-line basis when placed into service over the estimated useful lives of the
software, which approximates 5-10 years. Software amortization totaled $119 million in 2009,
$58 million in 2008 & $30 million in year 2007. Net capitalized software & development costs
were $1.1 billion as of December 26, 2009 & $940 million as of December 27, 2008.



















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Conclusion: Management information system involves the information system and
the organization. PEPSI CO benefits a lot from the management information system. The
system helps the PEPSI CO Company create strategies that will help the PEPSI CO Company
conquer any problems and threats from competitors. The system also assists the PEPSI CO
Company in processing the needed information. Management Information Systems also helps a
PEPSI CO company to create or update its inventory & products control system.












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Recommendations

y Continue developing new Information Technology.
y Enhance & upgrade DEX system.
y Develop & implement training programs like shared incentive programs, shared purpose
top-to-bottom implementation programs.
y Implement new processes & Mindsets Company wide.
y Since the MIS of a company is a vital part of its operations and its survival in the modern
world, it must be well updated and it must compete well with MISs competitors. The
MIS of a company should be created from high standards so that it can be of stiff
competition against its counterparts. The MIS system should help the company to
achieve its goals and assist the company in reaching its potential.












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References:
www.pepsico.com
www.answer.yahoo.com
www.answer.com
www.wikipedia.com
www.slideshare.net
www.mamma.com