GAURAV PRATAP SINGH (ROLL NO 15) EBREZ (ROLL NO 16)
PepsiCo Organized Trade:
The Beverage Industry is a mature sector and includes companies that market nonalcoholic and alcoholic items. Since growth opportunities are few compared to existing business, many members of the industry endeavor to diversify their offerings to better compete and gain share. Too, they may pursue lucrative distribution arrangements and/or acquisitions to expand their operations, product portfolios, and geographic reach. Most equities in this group are suitable for conservative investors. The largest companies offer reliable dividends, with regular increases, and above-average Stock Price Stability. There are a few selections for those that are more venturesome. Such issues might serve a particular market niche, for example, energy drinks or developing overseas markets. Generally, the group turns in a steady performance throughout the business cycle, but it will generally suffer in the most stressful of economic times PepsiCo is one of the largest food and beverage companies in the world. Its products include a variety of salty, sweet, and grain-based snacks as well as Csds and non-Csds. the company is responsible for the manufacturing, marketing, and sales of these goods. It has 18 brands in its portfolio and is headquartered in New York. PepsiCo has two divisions: bottle soft drinks and juice segment. In India the consumption proportion of both divisions are good as compare to the major competitor. PepsiCo have invested around 12000 crore in India and has the most of the market share in India in beverages industry. Mr. Anil R the Senior Manager of the organized trade handles the major area of...
Dr. Chrissy Helbling
Ethics and compliance are important in all organizations. Maintaining good ethics and compliance keeps companies running properly and making sure that things are done legally to protect the company as well as the employees. When dealing with the financial environment of the company, ethics must be upheld to make sure that all is fair to all that are involved. At PepsiCo the belief is to always do the right thing both ethically as well as responsibly. PepsiCo is continuously changing and updating their code of conduct as the laws change from year to year and have an impact on their company. PepsiCo believes that the employees are to embrace the company principals which are to, show respect in the workplace, act with integrity in the marketplace, ensure ethics in business activities, and perform work responsibly for the shareholders (PepsiCo, n.d., ¶3). In November, twenty thirteen, PepsiCo was presented leadership recognition for maintaining the best overall governance, compliance and ethics program. PepsiCo states their success is due to collaboration and partnership with internal colleagues and interested stakeholders and investors (PepsiCo, n.d., ¶ 3). The thought process behind PepsiCo’s ethics and compliance is a dynamic corporate governance that changes according to...
Pepsi – In order to penetrate local tastes, Pepsi foods launched Lehar 7UP in the clear lemon along with Lehar Pepsi. To complete with local brand such as the big company like Parle, Pepsi launched two more brands, Slice and Teem in order to gain more market shares, which was 26 percent at that time. The feature of bottles also encouraged consumers to purchase frequently. Pepsi introduced a smaller-size bottle, 200-ml bottle, in the market where everyone else offered 250-ml, 300-ml, and 500-ml bottles. Products lines had been added such as Mirinda Lemon, Apple, and Orange in 200-ml bottles. To cope with the decline in soft drink sales, PepsiCo launched a water bottle, Aquafina, in order to add more choices and attract non-carbonated drinkers. Apart from water, and soft drink, PepsiCo focused on fruit juices, juice-based drink, and especially Gateorade since consumers have become more self-consious.
Coca-Cola – Its main product soft drink lines are Coke, Thums Up, Limca, Sprite and Fanta. However, Coca-Cola also introduced the “Mini” versions to boost up the volume of soft drink sales. Not only its soft drink products, but also water bottle created by Coca-cola, Kinley, had become a significant product line that achieved 28 percent of market shares. Coco-Cola also altered the size of bottle in order to fit consumer’s usage and benefits. The sizes include 500-ml, 1 liter, 1.5 liter, 2 liter, 5 liter, 20 liter, and...
Number 1 challenge at PepsiCo and what is working:
The number one challenge that PepsiCo is facing is the rapidly changing global economy particularly the slowing U.S. economy. Although, PepsiCo businesses have generally proved resilient in past down turns, it is unclear where they will land during the current slide. To combat the challenges, PepsiCo is going to utilize all tools at their disposal from a productivity stand point, to research better product formulas and ingredient sourcing. They are always coming up new products and new marketing ideas. They have dedicated themselves to offering consumers a wide variety of choices for healthy and convenient snacks / beverages. PepsiCo also balances strong financial returns with giving back to communities in the U.S. and abroad. These returns to the communities have earned them named for the fourth time to the Dow Jones Sustainability World Index and for the fifth time to the Dow Jones Sustainability North America Index in 2010. They were also a top performer in the beverage sector. (PepsiCo, 2012).
To ensure that PepsiCo can continue long into the future, it is making considerable efforts and strides to protect the environment it utilizes. In 2010, it launched the Dream Machine, a recycling partnership with three other companies. The partnership has a goal of increasing U.S. beverage...
Human Relations in Management
February 17, 2013
From the time Pepsi merged with Frito Lay to form PepsiCo, the organization has grown. PepsiCo expanded their product portfolio to include something for all consumers. As a leader in the food and beverage industry and operating globally, PepsiCo has implemented a strong training background that develops employee’s managerial and leadership skills. The commitment of PepsiCo is Performance with Purpose, which is the pledge to deliver sustainable growth by investing in a healthier future for people and our planet (PepsiCo, Inc, 2012).
After dropping out of medical school, Caleb Bradham opened Bradham Drug Company. It is during this time, Bradham developed Brad’s Drink. Brad’s Drink consisted of a blend of kola nuts, vanilla, rare oils, sugar and carbonated water. In 1898, he renamed the drink Pepsi-Cola and bought the trade name Pep Cola for $100. Out of the back of his pharmacy, in 1902, Bradham launched Pepsi-Cola Company.
After years of rapid growth and success, in 1923, Pepsi-Cola went bankrupt and Bradham lost Pepsi-Cola to Craven Holding Corporation for $30,000. Shortly after, the Pepsi-Cola trademark was purchased by Roy C. Megargel. He was unable to save the company and Pepsi-Cola went bankrupt for the second time. Charles G. Guth, a candy manufacturer, president of...
...The PepsiCo Company never ends the World’s #2 carbonated soft drink maker. The company’s soft drinks include Coke, Sprite and Fanta. Coca-Cola is not the company’s only beverage; Coca-Cola sells Minute Maid juice brands, Aquarius sports drinks, and Kinley water. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest by Pepsi.
1) Losing market share to its competitors
Pepsi’s main competitor, Coca-Cola has twice as many vending machines, dominated fountains, had more shelf space in retailer and is competitively priced. Coca-cola dominates fountains at fast food restaurants such as McDonalds and Subway.
2) Saturated market in the United States
The beverage industry in the US is no longer expanding because it is saturated with competitors such as Coca-Cola and Cadbury Schweppes. In addition, market share is actually decreasing as more consumers are looking to healthier options. This is due to the fact that consumers are more aware of their health and living healthier lifestyle. Consumption of carbonated soft drinks in the US has been in steady decline over the past decade, in part because of the abundance of alternative beverages available in the market, from still water to sports drinks, and in part out of health concerns in a nation with an obesity problem.
3) Overdependence on the United States market
Despite its international presence, 52%...
PepsiCo is founded
PepsiCo, Inc. is founded by Donald M. Kendall, president and chief executive officer of Pepsi-Cola and Herman W. Lay, chairman and chief executive officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay is chairman of the board of directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are:
Pepsi-Cola Company: Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948).
PepsiCo moves from New York City to new world headquarters in Purchase, N.Y. The new corporate headquarters feature a building by one of America's foremost architects, Edward Durrell Stone (1902-1978), set on a campus of 144 acres amid an outdoor sculpture garden.
Frito-Lay begins a program of expansion. Over the next decade, the company opens, on average, more than one new plant a year.
Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles, and introduces the industry's first...
...beverages in more vender stores or restaurant.
Ten major threats:
1. The change in the value of the dollar.
2. An economic downturn that would customers to only buy the essential items to survive.
3. The change in a desired taste.
4. Cybersecurity with intellectual property.
5. Higher competition with natural resources.
6. Changing weather patterns could change productivity.
7. 49% of Pepsis revenue is from outside the United States. (Annual Report, p. 10)
8. An unstable market in many countries.
9. Water shortage around the world.
10. If Pepsi introduces a product that turns the public against the company.
Pepsico. (2015). Global Brands. Retrieved from: http://pepsico.com/Company/Global-Brands
Pepsico. (2013). Annual Report. Retrieved from: http://pepsico.com/docs/album/annual-reports/pep_annual_report_2013.pdf?sfvrsn=2
Pepsico. (2014). Form 10-K. Retrieved from: http://pepsico.com/annual13/media/PepsiCo_10K_20140214.pdf
Complete Assurance of Learning Exercise 10D on textbook page 321.
1. Buying competitors garbage.
2. Dissecting competitors’ products.
3. Taking competitors’ plant tours anonymously.
4. Counting tractor-trailer trucks leaving competitors’ loading bays.
5. Studying aerial photographs of competitors’ facilities.
6. Analyzing competitors’ labor contracts.
7. Analyzing competitors’ help-wanted ads.
8. Quizzing customers and buyers about the sales of competitors’...
...PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $60 billion and more than 285,000 employees (PepsiCo.com). PepsiCo manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, PepsiCo Asia, Middle East and Africa (AMEA). PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, food service, and vending. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001.
PepsiCo’s mission is to be the world’s premier consumer products company focused on convenient foods and beverages. PepsiCo seeks to produce financial rewards to investors as they provide opportunities for growth for employees, business partners and the communities in which they operate, and everything they do to strive for honesty, fairness, and integrity. “PepsiCo’s responsibility is to continually improve all aspects of...