Impacts of Globalisation on Pepsico

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

PepsiCo is one of the largest U.S based food and beverage companies. With a strong heritage. What is now, PepsiCo was first established in the late 1800’s. What started as a small one-man operation has grown into a food and beverage megabrand, with strong competition from both sectors of the food and beverage industry. With fierce competition from companies such as Coca-Cola, Kraft foods and ConAgra, PepsiCo must continue to innovate while providing customers with quality products that are priced competitively to remain relevant.

For example, BT, a company that has operations in around 170 countries, has shifted their customer call service from India to the UK. The exploitation of cheap labour has had both positive and negative impacts. 5,000 people that BT has employed in India have not only been supplied with a job but also with invaluable skills. The money that they earn would contribute to the family income, boosting the standard of living for both the employees and the employees’ family. The TNC is also puts money into the Indian economy, contributing to economic growth and boosting the countries GDP. Many countries (including India and Brazil) which were classified as developing countries, have become newly industrialised countries (NICs).

PepsiCo Inc. was established in 1965 with the merger of Pepsi-Cola and Frito-Lay. Ever since, the company has been expanding its line of products via acquiring other companies and creating new brands. For example, PepsiCo introduced the Doritos brand of tortilla chips in 1966, which became an instant hit. Furthermore, in 1998 PepsiCo acquired Tropicana Products. Over the past 50 years, PepsiCo has entered over 200 countries such as Japan, Russia, and India even though domestic sales in the United States were very strong. In 2015, the company employed around 110,000 people in the United States and over 263,000 around the world

As competition in most markets intensifies, firms are exploring approaches for surviving. International expansion is one of the strategies that have allowed businesses to escape intense competition. Through global development, companies can diversify their markets and extend the reach of their products. PepsiCo is among the firm that has adopted comprehensive expansion strategies in a bid to broaden its reach and counter competition. Today, the company has the presence in all major international markets where it sells its beverage products. While such organizations have opted to expand their operations into new markets, other firms have chosen to remain in their original domestic markets. Kohl’s (a US-based firm) is among the players in the retail industry who are facing challenges that the company can address through expanding into new markets. If the company enters new markets, Kohl’s will join companies like PepsiCo that continue to reap tremendous benefits from their international expansion.

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

The multinational company that I have chosen is Coca Cola Company since it is a very popular brand and has been serving its customers for more then 10 decades and even after so many years its popularity seems to be increasing day by day which itself speaks about the company's remarkable performance. The Coca Cola Company is an American multinational corporation and manufacturer, retailer and marketer of the nonalcoholic beverage concentrates and syrups (Wright, 1999). It came into existence in 1886 and was invented in Columbus, Georgia by John Stith Pemberton. The current statistics of the company shows that it is currently operating in over 200 countries offering its customers over 500 brands with each day serving of more then 1.7 billion (Charles W. L. Hill, Essentials of Strategic Management, 2012). .Further more the Coca Cola Company is alone responsible for the 78% of the total gallon sales of all the beverages sold worldwide. The company is listed in New York Sock Exchange and is very popular in most of the countries especially United States of America, which alone consumes 47% of the total gallons, sold worldwide (Zurkuhlen & Meeker, 1987). The company headquarter is located in Atlanta, Georgia, United States of America and its current chief executive and chairman is Muhtar Kent (Charles W. L. Hill, Strategic Management Theory: An Integrated Approach, 2012).

Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty. But the opponents general complaint about globalization is that it has made the rich richer while making the non-rich poorer. “It is wonderful for managers, owners and investors, but hell on workers and nature.”

Pepsi –cola was started in the summer of 1898 in New Bern, North Carolina by Pharmacist Caleb Bradnham. PepsiCo Inc. started in 1965 with the merger of Pepsi-Cola and Frito-Lay. Since then, PepsiCo has continued to grow, adding new brands and product lines meeting the demands of the market. Throughout the years, they have strived and worked toward environmental sustainability. The ability to be financial stable gives PepsiCo the ability to give back and donate to those communities they are located in. PepsiCo’s mission to provide performance with purpose means delivering sustainable growth by investing in a healthier future for people and our planet. PepsiCo is continually increasing their triple bottom line.

In addition, PepsiCo International division includes all the PepsiCo snacks, beverages, and food items sold outside North America. They are doing extremely well in emerging markets such as Russia, the Middle East, and Turkey. As for Chile, the sales are a little lousy. They find that the Power of One strategy works there since Frito-Lay has 90 percent of the market. Again, the Power of One strategy is simply placing PepsiCo products next to Frito-Lay products.

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,

In year 1965, PepsiCo Inc. is founded by Donald M. Kendall and Herman Lay. PepsiCo Inc. was merged by Pepsi-Cola and Frito-Lay in 1965. PepsiCo is an American multination industry that selling food and beverage. PepsiCo Inc. is the second-largest organisation that produces food and beverage in the world.

One of the company’s most popular jingles was known as “I want to buy the world a

Source I is the belief that Globalization might have its ups, but it also has its downs, and that we should be careful to ensure we benefit from globalization as much as we can without losing anything. The author says “globalization brings us closer to one another, it may also turn our world into a

Reasons why corporations like PepsiCo. need to globalize their operations include a need for competitive advantage against rivaling companies, increase their economies of scale to lower their production and distribution costs in moving products into new and existing markets, entering new markets to increase brand image and brand loyalty, and to increase net earnings which can then be distributed as dividends for their stockholders.