Beruflich Dokumente
Kultur Dokumente
By –
Ms. Joyner Gwendolyn Rodrigues.
Student Number – 3769537
11th November 2009
PepsiCo
Project report
By
Page 2 of 32
PepsiCo
L INDEX
Sr Topic Pg
1 The Beverage Industry 6
2 PepsiCo At A Glance 9
6 Leadership At PepsiCo 21
9 Conclusion 28
10 References 30
Page 3 of 32
PepsiCo
TABLE OF CONTENTS
1. The Beverage Industry ( Pg 6 – 8 )
a. An Overview.......Pg 7
2. PepsiCo At A Glance ( Pg 9 – 12 )
a. Introduction....................Pg 10
b. Competitive Advantage...Pg 10
c. S.W.O.T Analysis...........Pg 12
6. Leadership At PepsiCo ( Pg 21 – 22 )
a. Indra Krishnamurthy Nooyi.....Pg 22
9. Conclusion ( Pg 28 – 30 )
10. References ( Pg 30 – 32 )
Page 5 of 32
PepsiCo
Chapter One
Page 6 of 32
PepsiCo
An Overview
The Beverage Industry is one of the rapid growing industries in the world. The
segmentation of the industry is as below
With consumers taste and preferences becoming more and more sophisticated and the
demand for new and healthier product, the beverage industry as expanded and grown in all
aspects. The industry which trying to provide to the changing lifestyles and health concerns
of its drinkers, has become accustomed to a new healthier look in the 21st century.
Page 7 of 32
PepsiCo
As the world becomes flatter day by day, the industry faces aggressive competition
from the direct as well as indirect competitors. There is competition within the industry
because a single company produces a number of beverages, which offers a variety of taste
and flavours. Moreover the same variety of beverages are produced other manufactures, with
fairly the same taste and flavour. Consumers find it difficult to make a distinction between
same zest of two brands when they are served in a unadorned container. In addition to the
above, comparable brands have alike price.
As the industry expands and the competition becomes more and more aggressive.
Each company within the industry has to improve on their respective service quality along
with their product quality, in order to achieve their end goals.
Page 8 of 32
PepsiCo
Chapter Two
PepsiCo At A Glance
Introduction
Competitive Advantage
S.W.O.T Analysis
Page 9 of 32
PepsiCo
Introduction
PepsiCo is one of the foremost companies of food and beverages was formed with the
merger of Pepsi – Cola and Frito – Lays in the year 1965. The company manufactures or uses
contact manufacturing as well as markets, distributes and sells a assortment of snacks and
beverages. It operates approximately in 200 countries worldwide. Main rivals of PepsiCo
comprise The Coca-Cola Company, Nestle, Kraft Foods Inc and Archer Daniels. In the soft
drinks industry, however, their main opponent is Coca-Cola. Presently the company has
revenue of $43,251 million (PepsiCo 2008 Annual Report) and employees around 170,000
workforce speaking more than 40 languages universal. Indra Krishnamurthy Nooyi is the
present CEO of PepsiCo. PepsiCo has 18 mega brands under its umbrella (PepsiCo 2008
Annual Report). The
company accept the truth
that being a responsible
corporate citizen is not only
the right thing to do, but the
right thing to do for their
business. PepsiCo has a
well-built plan to carry on
expanding with a vast array
of convenience foods and
drinks that grant great taste,
nutrition and fun nonstop.
Competitive Advantage
PepsiCo Competiive advantage comes from the below equation –
Page 10 of 32
PepsiCo
Page 11 of 32
PepsiCo
S.W.O.T Analysis
Page 12 of 32
PepsiCo
Chapter Three
PepsiCo – The World Is Flat
Mergers
Joint Ventures
Effects Of Globalization
Page 13 of 32
PepsiCo
Mergers
During the summer of 1898 a young pharmacist name C. Bradham invented a drink
and called it ‘Pepsi – Cola’. As sales grew he launched ‘The Pepsi – Cola Company’ in
1902.With vision to take Pepsi – Cola to the world, the company collaborated with many
companies.
Year 1965 – The Pepsi – Cola Company collaborated with Frito Lays. The merger formed a
new company know as ‘PepsiCo Inc’.
Since its origin, PepsiCo has grown and added more and will continue to add more brands
underneath its umbrella.
Year 1988 – PepsiCo purchase ‘Tropicana, which gave the company the strongest brand
name in juice under its portfolio.
Year 2001 – ‘The Quaker – Oats Company’ merged with PepsiCo, bring two suceeful food
and beverage companies under one roof. With the union, PepsiCo also acquired the hold of
the brand ‘Gatorade’.
Page 14 of 32
PepsiCo
Joint Ventures
Year 1994 – PepsiCo and Starbucks coupled together to established the North American
Coffee Partnership (NACP).
Year 1993 – PepsiCo and Unilever shaped the Pepsi Lipton (Unilever acquired Lipton in
1971) Joint venture
Effects Of Globalization
PepsiCo has investing in many countries around the world in order to strengthen it
global market share. Over the next years, PepsiCo plans to boost manufacturing ability along
with marketing and R & D South Asian Countries. Another way how PepsiCo, is increasing
product line to more beverages and foods is by purchasing stakes (shares) of other beverage
and food companies. The liberalization of many developing countries has helped PepsiCo
enter and establish market share in many countries.
Due to its various mergers and joint ventures, PepsiCo has emerged from being an
American favourite brand to a World favourite. To be recognized brand in all the household
of the world is PepsiCo aim.
International operations are growing vigorously, and account for almost 50% of
revenue. The company plans to drive more growth and enlarge globally. Middle classes
customers around the world are generating strong development in returns by the per capita
consumption of PepsiCo commodities. Thus proving that going global was the right step to
take.
Page 15 of 32
PepsiCo
Chapter Four
PepsiCo’s Organizational Structure
Page 16 of 32
PepsiCo
2. PepsiCo International
3. PepsiCo International
Page 17 of 32
PepsiCo
Oversees all PepsiCo business in the Africa, United Kingdom, Asia, Europe
and Middle East
Page 18 of 32
PepsiCo
Chapter Five
PepsiCo’s Organizational Culture
Page 19 of 32
PepsiCo
PepsiCo has a unique culture as compared to other companies within it industry. They
have a performance driven culture where the squeezes the best from all their employees at
all levels. Everything at the organization is measured. PepsiCo believes in empowering its
employees at individual level. Due to this empowerment accountability and trust streams in
all directions of the firm.
PepsiCo is a diverse culture. Diversity according to the company is the simple sound
business. People of different race, cultures and speaking different languages work for
PepsiCo and enjoy doing so. Everyone is treated with equally and with respect.
At PepsiCo every one of its employees is a leader. The company encourages its staff
to be risk takers and initiators. Employees are allowed to make their own decisions to a
certain extent. At PepsiCo individual are allowed to pursue their own goals without strict
structure. Senior management encourage their junior to come up with ideas. There is both
upward and downward communication. The company culture also stress on sincerity and
reality in all walks. PepsiCo is a meritocracy where hard work is appreciated, recognized and
rewarded.
According to Trompenaars organizational cultural analysis, PepsiCo is a company
with all its dimensions
because even though there
is structure in the firm there
is also a nurturing
environment, where
individual can grow and
develop their skill along
with the company. at
PepsiCo the task as well as
the man behind the task is
given importance. Senior
managers guides the
workforce achieve
individual as well as
organizational goals.
Page 20 of 32
PepsiCo
Chapter Six
Leadership At PepsiCo’s
Indra Krishnamurthy Nooyi
Page 21 of 32
PepsiCo
According to Indra Nooyi, the five important talents of a good leader are –
competence in your field, take a stand in what you believe is right, invest and have good
communication skills, moral compass always be at the north and listen, and coach yourself.
Page 22 of 32
PepsiCo
Chapter Seven
PepsiCo’s Motivational Strategies
Recognition
Rewards
Page 23 of 32
PepsiCo
Recognition
PepsiCo accepts it workforce to deliver international standards and thus offers a
comprehensive pay package of global standard to its employees at their individual level. The
main motivation strategy is that their employees are empowered and are allowed to make
their own decisions and speak out their ideas. By doing so PepsiCo is motivating each of their
employees to take responsibility for their respective actions. PepsiCo is not blind these
actions. At PepsiCo individual are provided with the training and tools to succeed along with
the company. Priority is given to recognise the achievements of each and every employee.
Rewards
PepsiCo offers a rewards package that tends be a magnet for new employees as well
as helps to preserve its very best. With exciting pay package, a generous benefits package
also comes along which include, abundant retirement package, a tuition repayment, and even
legal aid. Simply Flex is a scheme which allows employees to select the benefits. Benefits
can swap also. PepsiCo also issues stocks to its workforce without taking a single penny.
Page 24 of 32
PepsiCo
Chapter Eight
Performance With Purpose
Page 25 of 32
PepsiCo
PepsiCo believes that its financial success and growth i.e. Performance, is obligated to
along with social and environmental responsibilities i.e. Purpose. The company has an
accountability to bring about sustainability to its customer, the environment and also to its
workforce. Thus PepsiCo Performance with Purpose is divided into three sections Human,
Environment and Talent Sustainability.
PepsiCo considers that its duty to understand the diet and nourishment need of the
global population. Therefore PepsiCo is creating a variety of healthier and fun products to
keep their customers health and nourished. PepsiCo is one of the companies to sign the
"Global Commitment to Action on the Global Strategy on Diet, Physical Activity and
Health," from the World Health Organization.
Page 26 of 32
PepsiCo
Page 27 of 32
PepsiCo
Chapter Nine
Conclusion
Page 28 of 32
PepsiCo
Since its conception, PepsiCo has grown and expanded in all areas. It has completely
emerged from an American Company to a global mammoth company. Today it is the world
leading food and Beverage Company. Unlike its competitors, PepsiCo diverse portfolio of
brands. The company plans on maximizing shareholders profits along with having a purpose
the world in which they operate. The company has reputation of generous giving back to the
communities in which its commodities are sold, with a focus on health, wellness,
environmental conservation and education.
Indra Nooyi, is a leader who will take PepsiCo to new heights. Her vision
‘Performance with Purpose’ is a unique one which is need in today cut throat competitive
world.
Due to its leadership under Indra Nooyi and its culture, PepsiCo is performing with
purpose which is excellent as the company is achieving success as well as creating a positive
impression on society and the environment. The future looks bright for PepsiCo
Page 29 of 32
PepsiCo
References
Page 30 of 32
PepsiCo
Page 31 of 32
PepsiCo
Page 32 of 32