The Joint Venture Between Pepsico And Theo Muller Group

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.

When the companies joining create a separate organization to create their product, the enterprise is called a joint venture.

A joint venture (JV) means; “An enterprise, co-operation or partnership, formed by two or more companies, individuals, or organizations, at least one of whom is an operating entity that wishes to broaden its activities for the purpose of conducting a new, profit motivated business of permanent duration. Some researchers such as Adnan and Morledge (2003) define joint ventures as the procedure used to respond to specific business phenomena such as access to new markets, specific government policy, business capacity, technology transfer or economies of scale. In general the ownership is shared by the participants with more or less equal equity distribution and without absolute dominance by one party.” This entity is subject to the joint control of its parent firms, each of which is economically and legally independent of the other (Shenkar, Zeira, 1987).

When Roger Enrico, Chief Executive Officer for PepsiCo, took over he began to examine the corporation. Going on the belief that if you can't make diversification work, give it up. For nearly three years PepsiCo has been undergoing a major strategic transformation. PepsiCo's chairman, Roger A. Enrico, stated in his letter, "…And while 1998 certainly offered its share of challenges, I'm very pleased to report that our strategy is beginning to payoff."

Pepsi-Cola started as “Brads Drink” in his drugstore in New Bern, North Carolina in 1893. Caleb “Doc” Davis Bradham decided to create a mix of sugar, water, caramel, lemon oil, nutmeg, and other natural additives. Officially it became Pepsi-Cola five years later due to its word of mouth popularity. In 1902 The Pepsi-Cola Company was formed due to great demand of the product and popularity among customers. Mr. Bradham decide to devote all his time to the product and it proceeded to become a full-fledged company. After applying for a trademark, the first Pepsi-Cola company was formed and Mr. Bradham was the first president. The company had many ups and downs but it wasn’t due to not trying to build and market the business. It fell on particular hard times during WW1 and was bankrupt in 1923 and the assets were sold to Craven Holding Corporation, the first of what would become several ownership changes. In the early 1930’s, Pepsi-Cola was once again bankrupt after the trademark was purchased by New York stockbroker Roy Megargel. In 1931 Pepsi-Cola finally took off after being purchased by Charles G. Guth, the founder of the modern Pepsi-Cola. His marketing skills took the company to new heights, but it was not meant to be. Legal battles cost him ownership and in 1941 Pepsi was merged into Loft Inc. and the Pepsi-Cola name merged in Loft. In 1950 a former vice president of Coca – Cola became CEO of the Pepsi and the product took off due to his advertising and marketing ideas. In

PepsiCo is a U.S based food, snack and beverage company that provides customers with a variety of food/snack and beverage products in over 200 countries around the world. PepsiCo has a long history, of producing and selling quality products. PepsiCo started off as a small company and has grown into a global food and beverage powerhouse. PepsiCo was founded in 1965, after the 1961 merger of the Pepsi Cola Company and the Frito Lay company. The Pepsi-Cola Company, was founded in 1898 by Caleb Bradham. Frito Lay was founded in 1961 after the Frito and Lays companies merged together. In 1998 PepsiCo acquired Tropicana Products. (Gale Group, n.d) Tropicana is a juice manufacturing company founded by Anthony Ross in 1947. The three companies

PepsiCo, a global food and beverage leader, is the second largest soft drink business in the world. Initially called ‘Brad 's Drink’, Pepsi was created in 1893 by a pharmacist named Caleb Bradham. In the 1960’s, PepsiCo was established through the merger of Pepsi-Cola and Frito-Lay. PepsiCo today is a world leader in convenient snacks, foods, and beverages, with more than 280,000 employees and revenue reaching over $60 billion (PepsiCo, n.d.).

(2000, p. 6) a joint venture is a “business partnership in which two or more companies agree to invest […] in a particular business activity. The main purpose of many join ventures is to create a strategic alliance between separate companies with common interests and complementary skills or experience.”

The concept of a joint venture (JV) is a term without any precise meaning under English law. Instead, the term is predominantly where two or more parties collaborate in carrying on a business activity. Moreover, since there is no English law relating specifically to JVs, the relationships between the parties is an amalgamation of:

In the modern and evolving business environment, business level strategy contributes significantly to the organization’s efforts to gain a competitive advantage over their competitors. The Coca Cola Company is one of the firms operating in international markets, which face fierce competition from their competitors. Its main competitor is the Pepsi Company, with others including Groupe Danone, Kraft Foods, and Dr. Pepper Snapple Group Incorporated among others (Rao, Rao, & Sivaramakrishna, 2008). Moreover, the firm has to address significant threats, including health concerns, which are an emerging trend in the beverages industry. These concerns pose a great challenge for the beverage producing firm, and particularly the Coca Cola Company. For this reason, the company has launched a series of strategies to counter these

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca

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

Joint ventures are independent entities which are formed jointly and are under the ownership of more than one parent company. These can also be formed between companies that are not in the same country. Its main advantage is the fact that there is equal sharing of the ventures profits, costs, benefits and risks among the partners.

Two firms may come together with the sole aim of developing a solution. In this case, they bring their synergies together to achieve the goal. This speeds up product development and makes the venture less expensive. Where the cost of product development is very high, a joint venture would reduce the risk and cost.

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan .Pepsi cola is situated is an Industry that is dominator by two Competitors Coca