Case Study Of Pepsico, Profits, And Food : The Belt Tightens

With the previous merger with the Frito-Lay Company, and acquisitions of Pizza Hut, Taco Bell, and Kentucky Fried Chicken, PepsiCo successfully ventured into different segments in the food services industry, but was also able to create synergies with its soft drink product. PepsiCo also attempted to integrate into trucking transportation and bottle manufacturing in the 1970s.

PepsiCo, Inc. operates as a food and beverage company worldwide. Through its operations, authorized bottlers, contract manufacturers and other partners, the company makes, markets, sells, and distributes various foods and beverages, serving customers and consumers in approximately 200 countries and territories. The company also owns Frito-Lay company and Quaker Oats. It has bottling and distribution facilities in Asia, North

What I find to be the biggest indicator of concern is that PepsiCo’s profitability is currently declining, despite its ever-increasing sales figures. It has lost 2% on both its profit margin, and return on assets. The return on common stockholder’s equity, has dipped by 4%, and they lost $.02 over every dollar invested in assets in 2005. This goes back to my assessment of their sales and net income figures. Here again, I see indications that their spending has increased dramatically, which is having a negative impact on profitability. Since the soft drink industry is a high-volume, low-overhead industry, controlling and minimizing expenses is of paramount importance. I find this trend to be very troubling, considering PepsiCo’s sales haven’t stopped climbing, yet they are starting to lose their profitability. Should their sales dip, they will be very hard put to maintain themselves.

Bolman and Deals four frames of organizations (1997) provide a foundation to determine how an organization functions and examine how operating within a certain frame may benefit or adversely affect an organization. In analyzing PepsiCo as an organization through Bolman and Deal?s (1997) frames of organizations the key elements of the structural and human resource frames as well as a review the Strengths, Weaknesses, Opportunities, and Threats that may affect Pepsi Co as an organization will be addressed.

PepsiCo is a global food and beverage corporation based in United States. Company received its current name in 1965, through the merger of Pepsi-Cola with Frito Lay Inc. PepsiCo makes, markets, sells and distributes more than 40 brands. A range of worldwide famous brand names includes Pepsi, Mountain Dew, Lay’s, Doritos, Quaker, Tropicana, Tostitos, Walkers, Cheetos, Ruffles, Fritos and others. PepsiCo generated net revenues of more than USD 65 billion in 2013, where 35% of revenue from developing and emerging markets (PepsiCo Annual Report). Pepsi products are available in more than 200 countries. The company has its own bottling manufacture and distribution facilities. Pepsi-Cola Company division is the second largest carbonated soda business in the world and the Frito-Lay division is the world’s leader in snacks business. The Frito-Lay generates more than 65% of PepsiCo 's net sales and more than 2/3 of the PepsiCo operating

Coca-Cola is a leading beverage industry in the United States and many other countries in the world. PepsiCo is also a leading worldwide beverage company, but they are also the parent company of the Frito-Lay and Quaker Oats Companies. This makes PepsiCo a leader in the beverage, snack and cereal industries. As consumers, we have indulged in their products for many years. My personal preference has always been Pepsi over Coke, which is why I was very interested in conducting this analysis. Regardless of the results, I will always seek out a Diet Pepsi over a Diet Coke and so will many of my physician friends at Children’s Hospital who start their mornings with a Diet Pepsi. These personal preferences are what contributes to a company’s profits through net sales. However, the key performance measurement tools used are not based on sales alone. Calculating liquidity, solvency, and profitability ratios on a regular basis give us a better insight on the performance and overall health of a company.

Frito-Lay, a division of PepsiCo based in Plano, TX, is the world’s largest producer of salty snacks (Solomon, Marshall, & Stuart, 2012). The company brands include Fritos, Lay’s, Doritos, and Cheetos. C. E. Doolin purchased and began selling Fritos in San Antonio, TX in 1932. Herman W. Lay, a potato chip manufacturer began selling his product that same year in Nashville, TN. The two companies later merged in 1961 to become Frito- Lay, Inc. A final merger in 1965 with Pepsi-Cola Company, created the now recognized name of PepsiCo. PepsiCo has four divisions under its umbrella including Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. With a multitude of snack options and limited

This case describes the complexity of PepsiCo's competitive position in the Mexican soft-drink market during the late 1990's. Between 1993 and 1996 PepsiCo and Coca-Cola waged a classic cola war in Latin America. The goal for both companies was to gain market share and by the end of 1996, Coca-Cola had clearly won the Latin America cola war. In 1993 PepsiCo enjoyed a 42% market share in Venezuela thanks to the success of its bottling partner, the Cisneros Group but by the end of 1996, PepsiCo held less than 1% of the Venezuelan cola market. Following PepsiCo's anchor bottler in Mexico, Gemex, the case details the strategies employed by PepsiCo's senior management beginning in 1993 to expand its

Pepsi Co 's assignment taken as a whole is to amplify the value of its shareholder 's investment through sales intensification, expenditure gearshift and prudent investment of resources (Bongiorno, 1996, p 71). In this pose, Pepsi believes that its moneymaking triumph depends on

PepsiCo’s corporate strategy had diversified, in 2008, the company into salty and sweet snacks, soft drinks, orange juice, bottled water, and ready-to-eat drink teas and coffees, purified and functional waters, isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Strategies that kept their brands at the top were tied to new product innovation, close relationships with distribution allies, international expansion, and strategic acquisitions. A new element of PepsiCo’s corporate strategy was product reformulations to make snack

PepsiCo Inc. is an American multinational foods and beverage manufacturer. It is headquartered in Purchase, New York and operates in more than 200 countries around the Globe. It is one of the world's leading brands in the beverages and grain-based snack foods industry. It was incorporated in 1965 in North Carolina by Donald Kendall and Herman Lay. The main product offerings by PepsiCo Inc. include soft drinks, energy drinks, coffee drinks, breakfast bars, cereal, rice snacks, side dishes, sports nutrition, and bottled water. The most recognized brands of the company are Pepsi, Starbucks, Quaker, Lay's, Mountain Dew, Mirinda, Gatorade, Aquafina, Lipton, Frito-Lay, Brisk, Tropicana,

The purposes of PepsiCo are providing many types of healthy foods and beverages. PepsiCo also tries to find an innovative method to reduce the impact that PepsiCo brought on the environment and decrease the operating cost. PepsiCo will give a safe and inclusive working environment for their employees globally. PepsiCo also will respect the local employees where they operate. PepsiCo also will invest to support the local communities. The Performance with Purpose is PepsiCo’s guide for all the employees. PepsiCo believe that delivering for the their purchasers and customers, protecting the environment, sourcing with honesty and

PepsiCo Inc. (Enthusiasm) is a main nourishment and drink organization that makes and conveys its items in more than 200 nations. Nourishment items that PepsiCo makes incorporate chips, seasoned snacks, oats, rice, pasta, and dairy-based items. The organization 's refreshment item portfolio incorporates carbonated sodas, juices,

1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?

A strategic plan for PepsiCo North America is hereby proposed as follows for the geographical region of the national