Pepsico

Frito Lay, a division of PepsiCo Inc, has just purchased the Cracker Jack brand from Borden Inc. The company is a worldwide leader in the manufacturing and marketing of snacks, with products such as Ruffles Potato Chips, Fritos Corn Chips and Doritos found among its product mix. These well known company brands have seen it capture over 50 percent of the retail sales, and company officials envisage Cracker Jack can only but add to the richness of its product line and profits. Borden, because of its strategic decision to concentrate resources elsewhere, discontinued aggressive

Frito-Lay has tried to combat the issue by offering Baked Lays, Baked Cheetos, SunChips, and other healthier alternatives. These alternatives are claimed to be healthier all-around. For example, the Frito-Lay website has a special area devoted to health that describes the ingredients of Frito-Lay snacks and encourages consumers to practice moderation in snack food consumption.

1. Hitt, M., Ireland, R., & Hoskisson, R. (2011). Strategic Management: Competitiveness & Globalization (10th ed). Mason, OH: South Western, Cengage Learning.

1.1. 1.2. 2. 3. 2.1. 3.1. 3.2. 3.3. 4. 4.1. 4.2. 4.3. 4.4. 5. 5.1. 5.2. 6. 6.1. 6.2. 6.3. 6.4. 6.5. 7. 8. 9. 7.1. Company Overview ......................................................................................................... 1 Strategic Analysis Overview ............................................................................................ 1 History Table .................................................................................................................... 2 Mission

PepsiCo is a world leader in convenient food and beverages that manufacture, market, distribute and sell wide variety of beverages, foods and snacks, serving consumers in almost every part of the world. PepsiCo operates under six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe (Europe) and PepsiCo Asia, Middle East and Africa (AMEA). All of the mentioned segments are registered under one symbol “PEP” whose shares are traded on the New York Stock Exchange, Chicago Stock Exchange and SIX Swiss Exchange. Since 49% of PepsiCo’s operations are outside of the U.S. that generates significant portion of the company’s net revenue, PepsiCo selected the currency of its foreign subsidiaries in which they generally operates as its functional currency, which is translated into US dollars on the company’s financial statements. I have found that two major players, PepsiCo and Coca-Cola dominate the non-alcoholic beverage industry around the world. There is tremendous competition within a relatively slowing industry and PepsiCo currently controls nearly 21% of the industry with its Frito- Lay segment alone controls 60% of the U.S snack-food market.

The Frito-Lay company is a $13 billion subsidiary of PepsiCo that employs 48,000 people. They are a nationally recognized leader in the manufacture and marketing of salty snack foods. Brands include Lay’s, Ruffles, Frito’s, Doritos, Tostitos, Cheetos, pretzels and Funyuns. They produce nuts, peanut butter crackers, beef sticks, cookies, snack bars and more.They sell and deliver through a “front-door store delivery system” in which one person performs the sales and delivery functions.   This system allows the products to be closely monitored and restocked, as well as creates a relationship between the sales/delivery person and the supermarket staff.

I selected PepsiCo for my MNC research due to the fact that PepsiCo is a world leader in convenient food and beverages that manufacture, market, distribute and sell a wide variety of beverages, foods and snacks, serving consumers in almost every part of the world. PepsiCo operates under six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe (Europe) and PepsiCo Asia, Middle East and Africa (AMEA). All of the mentioned segments are registered under one symbol “PEP” whose shares are traded on the New York Stock Exchange, Chicago Stock Exchange and SIX Swiss Exchange. Since 49% of PepsiCo’s operations are outside of the U.S. that generates a significant portion of the company’s net revenue, PepsiCo selected the currency of its foreign subsidiaries in which they generally operate as its functional currency, which is translated into US dollars on the company’s financial statements. I have found that two major players, PepsiCo and Coca-Cola dominate the non-alcoholic beverage industry around the world. There is tremendous competition within a relatively slowing industry and PepsiCo currently controls nearly 21% of the industry with its Frito- Lay segment alone controls 60% of the U.S snack-food market.

Many beverages have been produced and manufactured over time, but there has never been a drink that makes your mouth water as your hear the pop of the bottle opening, a drink that bubbles in your mouth as you drink it, a drink that has an even richer history and more efficient company than any other. This drink is “French Wine Cola.” At least that is what John Stith Pemberton, the creator of Coca-Cola, called it before his bookkeeper, Frank Robinson, suggested the now famous name Coca-Cola(Library of Congress). Robinson also suggested adding the slogan, “delicious and refreshing,” to all of Coke’s ads. Coca-Cola is a beverage that has been successful for many years.Though most people would tell you Coca-Cola is just a drink, it is more than just a soft drink. Coke, created by a man who lived in Columbus, Ga, started out as a medicine, has a unique bottling,and is a very interesting piece of history as a business and as a soft-drink.

You’ll either love them or hate them, PepsiCo has grown over the years with different brands becoming a dominate company is the food and drink industry. In recent years they have been getting a bad reputation due to their unhealthy drinks and foods. In a 20 ounce bottle of Pepsi, there is 13.8 teaspoons of sugar. “Two out of three adults and one of three children in the United States are overweight or obese.” Studies have shown that the number of health problems that are related to obesity is due to the increased consumption of sugary drinks. High sugar drinks are being compared to cigarettes, along with fast food restaurants that are high in fat. I will discuss how PepsiCo became a leader in the beverage industry by looking into

Coca Cola and Pepsi have been at odds ever since they started out at the turn of the century. Coca Cola had an early advantage but Pepsi managed to gain a strong hold in its respective markets and together the two of them have squeezed almost every other competitor out of the market. They have both, over the years, found ways to diversify their holdings and lower costs of production, seemingly steered, not by innovation or forward thinking, but as a direct response to market fluctuations and dips. Instead of foreseeing potential markets that could be accessed early, Coca Cola waited until it was desperate and floundering to make a decision. Pepsi also lacked a significant amount of foresight but were able to make smarter business decisions

Historically, many companies and corporations have received recognition for their growth and success over time. However, although praised, discoveries of controversial issues lead consumers to question various companies’ ethics and operations. Coca-Cola, or simple coke, has existed for over a century, originating in Atlanta, Georgia in 1892, and eventually expanding and providing drinks internationally. Today, the company produces concentrate, which then sells to Coke licensed bottlers internationally; and ultimately ending up sold to retail stores and vending machines for consumers to purchase. Along with the regular “coke”, the company has also been able to produce other cola branded drinks including water, energy drinks and coffee. The

These chapters were very insightful. I had learned some of these techniques earlier in my previous classes, but this give me a more in depth look at the various aspects of decisions making. The area on control was more newer to me as we didn 't discuss it thoroughly in class. I only have knowledge of the main aspects of control.

Chapter No. Chapter No-1 INTRODUCTION 1.1 Introduction 1.2 Need for the Study 1.3 Objective of the Study 1.4 Methodology 1.5 Limitations Chapter No-2 PEPSI COMPANY OVERVIEW 2.1 Genesis and Growth 2.2 Organization Structure 2.3 Production Function 2.4 HR Function 2.5 Finance Function 2.6 Marketing Function 2.7 Future Function Chapter No-3 DATA ANALYSIS AND INTERPRETATION 3.1 Introduction 3.2 Details of the survey conducted 71 Chapter No-4 SUMMARY AND SUGGESTIONS 4.1 Summary 4.2 Findings 4.3 Suggestions 4.4 Conclusion APPENDIX BIBLIOGRAPHY 72 75 77 79 81 85 Title Page No 2 3 7 8 9 11 12 13 23 25 38 41 44 48 49 50 51

• Revenues – About $43 billion and over 198,000 Employees across the globe • PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay • PepsiCo brands are available in more than 200 countries and territories across the globe • PepsiCo has more than 500 products in it’s portfolio of which 18 brands generate $1 Billion each in retail sales

The industry I have chosen is the Pepsi-Cola Company. Pepsi is one of the world’s leading food and beverage companies. The company was founded by Caleb Davis Bradham, a New Bern, North Carolina pharmacist in the 1890s. Mr. Bradham became the first president of the company. Pepsi-Cola was formulated in 1898. He believed the drink was more than a refreshment but a “heathy” cola. In late 1902, the Pepsi-Cola Company was formed due to the rising popularity and demand for the Pepsi-Cola syrup. On June 16, 1903, “Pepsi Cola” became an official trademark. In 1910 Pepsi-Cola Company held their first Bottle Convention in