Wk8: Article Review & Wk8: Strategic Profile Analysis

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WK4 PepsiCo Inc. Company Analysis

Trae Clavo

Doctor of Business, University of Trevecca

Cur Topics/ Business Strategy (BUS-8020-O06.2)

Dr. Rick Mann

April 9, 2022

WK4 PepsiCo Inc. Company Analysis

PepsiCo Inc. is an American-based food and beverage company headquartered in Purchase, New York. It is one of the largest beverage and food companies availing its products in more than200 countries. Caleb D Bradham, a pharmacist in New Carolina, related the first Pepsi cola in 1898. The drink became so popular that in the year 1902, Brahman incorporated the Pepsi cola Company. Over the years, the company had moderate prosperity until later after World War I, when it had tough times and was reorganized and reincorporated severally in the 1920s.

Charles G Guth, the founder of the modern-day Pepsi cola, picked up the company's trademark in the year nineteen thirty-one. The newly established Pepsi cola company had a chemist to make better drinks and improved new bottling operations. With this were successful in their sale of a twelve-ounce bottle for five cents.

Alfred N. Steele, a former Coca-Cola company vice President, became the chief executive officer of Pepsi cola in 1950. His advocacy vigorously on sales promotion and advertisement campaigns increased Pepsi Cola's net earnings making Pepsi the top competitor to Coca-Cola. A merger with Frito lay Inc. later in 1965 opened an avenue for Pepsi to diversity further with the purchase of different restaurant chains. They include Kentucky fried chicken Corp, pizza hut, taco bell Inc. and seven up international (Czeczulin, 2020). Later in 1997, these restaurant chains were taken into a new separate company under Tricon global restaurant.

In the twentieth century, Pepsi Co purchased the Tropicana and Dole juice brands from Seagram Company before merging with quarter Costs Company in two thousand and to form a new division, Quarter foods, and beverages. Early in the twenty-first century, Pepsi expanded its operations in other countries, such as Russia, its second-largest market. They bought a controlling interest in Russia's largest juice manufacturer and followed with the acquisition of Wimm-bill-dann food. This investment made them the largest food and Beverage Company in Russia.

PepsiCo Inc. features a mission statement "create more smiles with every sip and every bite, "which can be interpreted further by its different shareholders as shown. To the consumers, they create joyful moments through their delicious products and the uniqueness of their brand experience (https://www.pepsico.com/about/mission-and-vision). To their associates and communities, their mission is to create significant opportunities to acquire new skills, work, and build their careers in a diverse and inclusive workspace. To the environment, they conserve natural resources and Foster a more suitable planet for future generations. Finally, it is to deliver top performance to their shareholders by embracing maximum corporate governance. Pepsi's mission is reaffirmed by its vision of becoming a global leader in convenient food and beverage by winning with a purpose. This reflects the company's ambition to have a sustainable marketplace and accelerate its growth while upholding the good of the environment and the community at large. The company aspires to win the marketplace, be more consumer-centered and accelerate investment for its growth by widening its portfolio to win in locally convenient foods and beverages.

The company features a variety of stakeholders group that are described in the order of their prioritization. First in the hierarchy of prioritization are their customers and consumers. This determines the financial position of the company in terms of revenue. Their interest is focused on the quality and innovation of Pepsi brands. Pepsi uses a continuous innovation process to improve its products to address this shareholder group, such as creating products with less sugar and no sugar drinks for diabetic consumers. Communities are ranked second in PepsiCo Inc.'s prioritization hierarchy (Jallow, 2021). Part of its social responsibility is that it should positively impact society. Pepsi addresses this issue by investing in different community organizations such as Diploma, promoting career development and education within the neighborhood.

Third on their priority list are the employees, whose concerns range from career development and fair compensation to a suitable working environment. Therefore, Pepsi Co Inc. avails various facilities and recognition programs embedded in their organizational culture to motivate their employees. For instance, they have an open communication system that allows any worker to walk to the general manager's office and present their professional or personal problems regardless of their low-rank position. They also have a transparent system that, regardless of one's position in the company, they are all entitled to the same consequences when faced with similar charges. Additionally, they have a toll-free number that the employees can use to report any of their concerns.

Finally, the investors and the government are at the bottom of the hierarchy of priority. Pepsi believes that its focus on customer and employee satisfaction ensures that they have optimal performance, thus ensuring that interests of its shareholders are upheld. Pepsi operates in various countries whose governments have different policies on their standard of regulation. To address this, Pepsi ensures to abide to government regulations such as bottling requirements, health standards set and even tax obligations to cover government's interests.

Over the past three years, the company has observed an upward trend in its financial

Performance, increasing its revenue at the end of each year. In 2019, it registered an increase in its revenue with a 3.8% margin from its revenue in 2018. The trend is further replicated in 2020 when they raised a payment with a 4.78% margin increase from revenue. 2019. In 2021 they had a slight significant growth with a margin of 12.93%from 2020 (Sultan et al., 2019).

Reference.

Czeczulin, A., & Greydak, C. (2020). Language for a specific purpose: Business Russian. Jallow, D. (2021). A Strategic Case Study on PepsiCo. Available at SSRN 3828353. https://www.pepsico.com/about/mission-and-vision Sultan, K., Akram, S., Abdulhaliq, S., Jamal, D., & Saleem, R. (2019). A Strategic Approach to the Consumer Perception of Brand on the Basis of Brand Awareness and Brand Loyalty: A Comparative Analysis of Coke & Pepsi Brands in Erbil KRI. International Journal of Research in Business and Social Science (2147-4478), 8(3), 33-44.