Mgt521 Pepsico Business Analysis I Essay

1681 Words Dec 15th, 2012 7 Pages
PepsiCo Business Analysis: Part I
Management/MGT-521
Dr. Olivia Herriford

PepsiCo Business Analysis: Part I PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $65 billion and more than 285,000 employees. The company headquarters are in Purchase, New York. PepsiCo products can be found in nearly 200 countries around the globe. The company has 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD),
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(2012, June 27). PepsiCo has adopted the globe’s most powerful “go-to-market systems.” The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. Innovative Marketing: It has leveraged its worldwide brand-building strength to attach with consumers in significant ways and impel the growth globally (Bobby, S. June 27, 2012). Packaging for products has developed into a sign for quality potato chips over the globe (Bobby, S. June 27, 2012). It has most dominant global snack chip division Frito-Lay by having five leading snack chip products (Bobby, S. June 27, 2012).
Weaknesses
Investors are not confident, they do not expect PepsiCo’s economic profit to increase for years; on the contrary, they expect it to decline slowly (Fortune. June 11, 2012). Several of its most valuable brands, such as Pepsi and Doritos, have lost strength or market share, or both (Fortune. June 11, 2012). Weak innovation Strategy: PepsiCo CEO Indra Nooyi said: “We don’t believe we are delivering enough incremental innovation” (Fortune, June 11, 2012, Pg.152). PepsiCo has introduced new products, such as regular soda and diet products, but nothing to match Coke’s hugely successful Coke Zero and attention-grabbing bottle and can designs (Fortune, June 11, 2012) As PepsiCo multiplied its capital