Swot Analysis: Pepsi

PepsiCo, Inc., one of American largest food and beverage icon took its name in 1965, when Pepsi-Cola Company merged with Frito-Lay, Inc. As one of the largest food and beverage companies in the world, their mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. The author was given the task to choose two segments of the general environment that would rank highest in the influence on the corporation and to assess how these segments affect the PepsiCo. Inc., and the industry in which it operates.

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 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.

These two-company’s economic characteristic include their market size and growth rate from the early 2000’s to 2010. Coke and Pepsi have struggled for years in the carbonated and non-alcoholic sector. According to Barbara Murray (2006c) "But as the pop fight has topped out, the industry 's giants have begun relying on new product flavors and looking to noncarbonated beverages for growth.” (Murry, 2006). For instance, Coke boasts in the advertisement as the king of the soft drink; as a consumer of both products, I agree. About 15 years ago, I was selected to participate in a critiquing of Coke and Pepsi products. Additionally, my travel to Africa in 2007 and 2010 provided the same raving review for the Coke Cola products. Apparently, Coke and Pepsi have been rivals for ages locally, regionally, nationally, multinational, and globally, therefore, one expects them to have an on-going rivalry when marketing the high-energy beverages.

This research paper pinpoints the financial analysis of Pepsi Co, Inc., namely its profitability; liquidity; solvency and operating outcome with respect to its competitors, Coca-Cola Inc., and Dr. Pepper Snapple Group. The upshot of Pepsi’s financial breakdown will assist the soda drink maker to improve its production approach and keep its flagship brand aggressive and competitive.

This paper focuses on global business strategy of The Coca-Cola Company, who is the leader in the beverage industry as well as, the world?s leading soft drink maker that operates in more than 200 countries and owns or licenses 400 brands of nonalcoholic beverages. The paper will concentrate on the PESTEL analysis of the organization focusing on the external factors of the business and the environment where it operates. All of the following environments will be discusses in the research; Political, Economic, Sociological, Technological, Legal, and Environmental as they the changes in the market segment. Within this paper it will discuss some of thr

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

“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.

PepsiCo Inc. is one of the leading brands in the world's food and beverage industry. It operates globally with a strong customer base and a wide array of products. This paper analyzes the general business environment for this leading food and beverage brand in order to assess what strategies it has been pursuing to operate in this challenging and complex environment. The analysis of internal and external environment has also been done in a view to figure out the biggest strengths, weaknesses, opportunities, and threats for the company. The final section gives an overview of the company's resources, capabilities, core competencies, and value chain which can help it to achieve a competitive advantage in its industry.

To start, Pepsi Bottling group and PepsiAmericas merged together to form Pepsi Beverages Company or PBC. Most warehouses and satellite locations were reaching their max capacity of products, so PBC came up with the “Top off”. Top off is an order pallet building process, it enables up to 85 percent of cases to be build by a automated location which then will be transported to satellite locations where now the remaining 15 percent of the cases are placed on pallets and ready to be loaded to delivery vehicles. The operations management system or OMS processes real-time orders generated from various sale systems. It determines order configuration for proper load building, optimizes network fulfillment while at the same time leveraging order fulfillment capability. The system loads cases on trucks in reserve

Distribution of beverages in the US in 2007 by category PepsiCo managed to perform along with market trend and increased it’s revenues in the growing markets

In 1971 Donald M. Kendall became the chairman of the board of directors when Herman W. Lay retired where he held the positions for 11 years. From there the companies starts to grow from there. In 1977, PepsiCo was able to bring Pizza Hut Inc. under its umbrella and a year after that Taco Bell. While PepsiCo Inc. is bringing more members to the corporations they also bring new products, they introduces the first soft drink that had real fruit juice (Slice also available in Diet) and also introducing Tostitos brand chips. PepsiCo Inc. did not stop there with their progress. From 1980 – 1989, PepsiCo Inc. created caffeine-free colas; they also bought Kentucky Fried Chicken (KFC), Mug Root Beer, Walkers Crisps, and Smith Crisps. Not only that, but they were able to have a “space can”, which met that they had one of their cans tested aboard a space shuttle. PepsiCo Inc. did not stop there and that is shown through their accomplishment from 1990 – 1999. Two drinks that is popular was introduce in this time frame one of which was a tea base drink and that was a corporations between Pepsi-Cola and Unilever. The second drink is from another well-known brand, Starbucks, which is a North American Coffee Partnership from PepsiCo Inc. with Starbucks. They also created the Aquafina, which is well known everywhere today. With all the products they produce we cannot forget about what PepsiCo Inc. does on the side like planning to buy Cracker Jack and then they also bought Tropicana

According to PepsiCo SWOT, “it is better equipped to satisfy the needs of customers with a wide variety of successful products” (2008). PepsiCo managed to present almost every type of drink and food brands. The merchandise that is earned is the majority of their revenue. This makes them extremely at risk to change any of their marketing products. However

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 providing safe and quality drink to its consumers and customers while adhering to the highest standards of truthfulness. Pepsi Co 's product portfolio encompasses sixteen labels that produce enough cash for the company. The most popular of these brands include Pepsi Cola, and Mountain Dew.