Pepsi Co (Essay Sample)

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PepsiCo
Description
PepsiCo. Inc, is an global food and beverage manufacturer and it has its business organized in four different units : “PepsiCo Americas Foods”, (PAF), which is inclusive of Frito-Lay North America, (FLNA), “Quaker Foods North America” (QFNA) and the “Latin American Foods and Snacks Business” (LAF); the “PepsiCo America Beverage” (PAB), in which it holds the north America and the Latin America Beverages Business; then there is PepsiCo Europe which as well holds all the beverages, foods and snack business within Europe; the PepsiCo Asia, middle east and Africa (AMEA), and is inclusive of the beverage, food and snuck business industry in AMEA. PepsiCo four business units are marked with six units segments; that are; “FLNA, QFNA, LAF, PAB, Europe and AMEA”. PepsiCo is well known for manufacturing, marketing and selling different range of salts, other convenient sweet and grained snacks, dairy products, carbonated and non-carbonated beverages and drinks, and other quality foods. Lately, in November 2012, PepsiCo Company is said to have made a progress and opened a food and beverage quality innovation center that is located at shanghai, china (Kelleher 24).
Acquisition and Disinvestments
In the late 1970s and mid 1990s, Pepsi Company made quite huge progress in the expansion and made several acquisitions of other businesses that were outside their major aim in the packaging of food and beverages. Lately, in 19197 PepsiCo exited most of the non-core business and sold them as well as spinning others to new companies that were named as “Tricon Global Restraints” which later was changed to be “yum! Brand Inc”. After the 1997 disinvestment program, what followed the business was quite multiple large scale investment as Pepsi made progress to extend all of its operation beyond manufacturing of soft drinks and the snack foods and turned to other lines of foods and beverages. In 1998 Pepsi acquired or purchased “orange juice company” and made adorable merging with Quaker Oats Company later in 2001. This business merging made them to ad on the Gatorade sports drinks together with other Quaker Oats brands. These brands included the “chewy granola bars” and “Aunt Jemima” (Hamstra 13-23).
Lately, in 2009 PepsiCo made an offer of $7 billion that was aiming at acquiring the best two largest bottlers in North America. This was the “Pepsi Bottling Group” and the PepsiAmericas” (Brysons 12). The accusation procedures were completed in the year 2010 and this resulted to the formation of “new owned subsidiary” of PepsiCo or “Pepsi Beverages Company”. Then in the year 2011, it made further steps to acquisition by acquiring two third of stakes in “Wimm-Bill-Dann Foods”. This is a Russian food company that made production of milk, fruit juices, yoghurt, and other dairy products. Later it acquired the remaining part of stakes in the “Wimm-Bill-Dann Food” and PepsiCo become the largest beverage and Food Company in Russia (Kelleher 24).
The challenges that are within Pepsi Company are that since 1975, the company has been noted that it has undergone the marketing promotion challenges. Originally this challenge was taking a look within the malls, shopping center together with other public actions where the Pepsi representatives are sets for taste test (Collins 8).
Pepsi is an iconic American company and has been in the long run to make and launch on a better campaign reinvention. This is basically set to hold the issue that has been challenging with the beverage manufacturing company. This issue is whether PepsiCo will be able to create a forum that will make the company to remain as the best and largest snack food company globally. There is a close look on the company powerhouse on the best way to improve the quality of the food they offer to their customers (Kelleher 24).
Definitely, the ranges of the products that are said to be common are another PepsiCo challenge. The products are part of the “Diet Pepsi, Tropicana orange juice, Fritos corn chips, and the Cap’n crunch cereal”. Initially, this were part of the company products that were bought in billion and made PepsiCo to be among the best sprawling and best iconic company within the international markets (Collins 8).
The challenges within the PepsiCo are given a close view on the issue of the inside look by new ages in the manufacturing plant. This is for better testing kitchen for all the foods and snacks plus the beverages that have made the Company to be on the move with efforts to maintain a healthier look of the company products. The outspoken CEO of PepsiCo who is as well the chairman is listed as one of the most powerful women globally (Hays 13).
In the CNBC documentary there is the compelling story on the way the company made a broke color within the barriers that were in the America business. The company made a decision which was a strong strategy to business by hiring the first ever all black sales teams which were regarded to have braved on the “Jim Crow South” of 1940s.
Critics
PepsiCo has faced a lot of critics that emerged due to their action while collaborating with the biotech companies who mainly apply the technology which is delivered from the human fetuses with an aim of developing on the new food products. Around June this year PepsiCo was under fire for the cause of the reason in the way it is treating its workers more so in the west Bengal, India warehouse. The firing for the workers was protected through online site by the international union for food workers since they had joined the union (Hays 13).
Competitions
Historically the Coca-Cola Company has always been the major and primarily the worst competitor of the company in the beverage business. In the year 2005, Coca-Cola Company was listed to have more market value and huge market share in the market of carbonated soft drinks within United State. Ideally, the same year Pepsi Company was reported to have maintained a higher share as well in the United State refreshment beverage market. On a reflection on the underlying differences of the products lines for the two company’s Coca-Cola Company was a threat to Pepsi company operation within beverage market (Hays 13).
Ideally, Pepsi made a resolution and attempted to make mergers, acquisitions and even being in business partnership in between the year 1990 to 2000s. Due to that, Pepsi business was seen to have gradual increase and shifting of it business products lines with a broad category and base that was including the foods, snacks and the beverages (Hays 13). However, Pepsi company made a report stating that most of its revenue is basically from the sale of carbonated and the soft drinks. The beverages were accounted to have less than 50 percent of the total revenues in year 2009. Fairly, in the same year more than 60 percent of the Pepsi company beverages sales were from the non-carbonated beverages and brands which are namely as “Gatorade and Tropicana” (Ogg 17).
The PepsiCo brands namely “Frito-lay and Quaker oats” are viewed to have a significant share in all the United State snack food market. The two products account for the company an average of 39 percent of the total united state snack food sales. In this category of the snack food market, the feared competitors to the company is Kraft foods which in most case they average almost the same share on their sales within United State (Hays 13).
Corporate Governance and Management
The management composition will entail much on the look to cover up the business challenges. The company is headquartered in Purchase, New York City and has a research and development headquarters situated in Valhalla in New York. The company chairperson and the CEO is known as Indra Nooyi. By the year 2010, the board of directors was composed of eleven outside members. Lately, Pepsi made a receipt of being the best 100percent rating in “Corporate Equity Index” that was fairly realized by LGBT (Ferrell 12-33).
Pepsi Corporate Social Responsibilities
This is the concern of the company to the customers and the consumer of their product. Fairly, the company has made long identifiable progresses that are catering for the social lives for others. Since 1962, PepsiCo has tried to maintain a philanthropic program referred to as PepsiCo foundation in which it fund it with an aim of “nutrition and activity, safe water and water for usage efficiencies” (Ferrell 12-33).As well, there is a close look within the program issue on education and this is according to the information that is in the foundation website. Around $27.9 million were contributed in the year 2009 through the roof of this foundation with grants to the “united ways and the YMCA. In the same year, PepsiCo made a launch of a program that was called “Pepsi Refresh Project” and individuals were submitting on their votes to the charitable and non-profit organization (Ferrell 12-33).
Environment Protection Records
This is another way that will make the company to have quite long progress on the way to deal with the challenge and problem that are within the market. The company annual report of 2009 stated that Pe...