Use your selected company from Weeks 1-2 for this week’s assessment.

Assignment Company Profile

Debra Saunders

MGT/526

10/12/2020

Jeff D. Gordon

Assignment Company Profile

The identified company for this project is Pepsi.Co. It is a Multinational corporation in the industry of food and beverages. Among its most recognized products in the world is Pepsi Cola that airs in commercials in almost all marketing channels. The estimated market share for Pepsi.Co in the U.S is 24.1% and 8.4% in the global market (Wiener-Bronner, 2018). Although its close competitor, Coke, is the market leader, Pepsi has a market cap of $188.6 billion compared to $185.8billion of Coke. Increasing consumer awareness of healthy foods has been shaping Pepsi's strategic objectives.

Brief History

Caleb Bradham, a North Carolinian pharmacist, invented the original cola formula in 1893. He was running a soda fountain in a drugstore selling Brad's drink, later known as Pepsi-Cola. In 1903, Bradham started to sell soda concoctions to vendors across the state and was already franchising in 24 states under Pepsi's brand name. The product was marketed as a digestive aid, and as the small company grew, it decided to use celebrities in marketing. In 1923, the founder gambled on the changes in sugar prices during World War I, and the results were disastrous, leading to Pepsi's bankruptcy in 1923 (Pepsi.Co, n.d). Several investors bought and resold the company until it no longer attracted investors. One of them, Charles G. Guth, tried to resell the brand to the executives by were not willing missing comma, spelling error, and missing word (, but THEY were not willing) to risk their resources. Guth reinvented the ailing Pepsi by repackaging the drinks in 12-ounce bottles for in five cents, twice the prices for a 6-ounce bottle offered by Coke (Pepsi.Co, n.d). He also embarked on a vigorous marketing campaign that results in the Nickel Nickel campaign accredited as the most effective ad of the 20th century.

Apart from packaging and marketing strategies, the company refined its supply chain and ensured it had enough sugar inventories in the Second World War. The drink was familiar to the U.S. troops across the world and remained popular after the war (Bellis, 2019). The company aligned its marketing, presented itself as the choice for Baby Boomers, and expanded its product line to include the first diet soda in 1964. In the same year, it acquired the Mountain Dew and later the Frito-Lay that makes snacks. Today, Pepsi is significantly diversified with numerous product lines of snacks and drinks with different flavors targeting global consumers.

Milestones from the History

Pepsi has made significant strides in the industry. The first one is rising from bankruptcy to top the industry as among the global leaders in the food and beverage industry.

Pepsi has significantly grown from a simple drink sold in a pharmacy to a globally renowned brand. The company has grown substantially by franchising, acquisition, and merging. Apart from that, Pepsi has also diversified its products' portfolio according to different customer needs.

Pepsi has made another significant stride by presenting its brand as a trendy and ideal choice for young people. This achievement has enabled the company to build loyalty from young consumers all over the world.

Opportunity for Competitiveness

Pepsi has an opportunity to reinvent its business strategy by producing organic products that meet consumers' health needs. The specific topis was UNIQUE BUSINESS OPPORTUNITY and not a generic Opportunity for Competitiveness. It is from your evaluation of the SWOT ANALYSIS that you would determine a UNIQUE BUSINESS OPPORTUNITY. I am providing details from the SWOT ANALYSIS (8/5/2020) to demonstrate what you should have been using; those details are below:

· Weaknesses

· Trade Receivables

· Liquidity Concern

· Opportunities

· Global Soft Drinks Consumption

· Strategic Initiatives

· Global Savory Snacks Market

· Threats

· Foreign Exchange Risks

· Water Scarcity Could Impact Profitability

· Environmental Concerns Related with Plastic Bottle

· Obesity Concerns

· Competitive Pressures

· Volatile Raw Material Prices

Function of Management

Pepsi's management is responsible for laying the foundation and implementing the diversification plan. It has a role of acquiring, mobilizing, and allocating resources towards implementing the diversification plan. This does not specify WHICH of the Four Functions of Management would be needed.

References

Bellis, M. (2019). The history of Pepsi Cola. Retrieved from https://www.thoughtco.com/history-of-pepsi-cola-1991656

Pepsi.Co. (n.d) Our history. Retrieved from https://www.pepsico.com/about/about-the-company

Wiener-Bronner, D. (2018). Why Coke is winning the cola wars. CNN Business. Retrieved from https://money.cnn.com/2018/02/20/news/companies/cola-wars-coke-pepsi/index.html#:~:text=But%20when%20it%20comes%20to,Beverage%

I am providing the assignment instructions below:

Create a chart or outline that conveys the following information:

· Name of company (met)

· Industry (met)

· Brief history of company (met)

· At least 3 milestones from the company’s history (met)

· 3 resources (in addition to Business Source Complete) where you can locate company information in future weeks. This may include company websites, current employees, journals, etc. (met)

· Define 1 new unique business opportunity the company can do to increase their competitive advantage. (partially met, but not a UNIQUE business opportunity)

· Identify a function of management that is needed for this opportunity. (not met)