According to PepsiCo Sustainability Report 2016 (2017), programs funded by PepsiCo Foundation together with its partners had provide more than 11 million of people around the world to access to safe water. For climate change, PepsiCo encourage industry and governments should work together and taking science-based action to limit the rise in global temperature no more than 2˚ Celsius above preindustrial levels. In order to duel with climate change, PepsiCo focus their actions on reducing the company’s carbon footprint by reducing emission in agricultural supply chain, increase the use of recyclable materials in packaging, and upgrade the company’s vending and cooling equipment to HFC-free technology. Besides, the company also take actions like operate on site energy generation, fleet fuel, and purchased electricity. For example, in 2016, the PepsiCo launched a power purchase agreement which supply 73% of its power from wind energy (PepsiCo Sustainability Report 2016 2017).
Specialization by countries can therefore increase efficiency in both how quickly a product is produced and the use of capital. For this reason PepsiCo benefits by saving money in production which means they stand to earn a higher profit margin when goods are sold. Imperfect Markets Theory When factors of production such as labour and other resources are immobile in a foreign country, firms such as PepsiCo can take advantage of this. As a large firm with more information and resources, they are able to enter these markets and exploit them. Product Cycle
As the number of overseas buy Pepsi products per capita is still very low, PepsiCo should actively expand existing businesses, mergers and acquisitions in the global market and its other brands. PepsiCo has agreed to acquire 66% of Wimm-Bill-Dann, Russia's leading branded food-and-beverage company, for $ 3.8 billion, pending the required government approvals (PepsiCo, 2010). 3.2 Strategies and Recommendations 3.2.1 Strengths/Opportunities PepsiCo has a strong strength of the company itself as well as centuries of historical background, as well as a huge marketing system and sales team, certainly in the market have dominated party strength. Thus, with such a background, Pepsi should win, the enterprise itself to increase and enhance the overall strength of the reform, development of technology and efficient production lines, the development of more products to capture the market, play the old brand, take advantage of the new international advantage , greater market space. 3.2.2 Weaknesses/Opportunities Coca-Cola is a major source of disadvantage in the marketplace better than Pepsi, Pepsi and Coca-Cola was inferior in many international honors, Pepsi should seize this opportunity to make the brand stronger, more in-depth consumer hearts, so that it can so that more businesses trust Pepsi, let the containers and shelves have more
Batches per facility per day 2. New product ideas per year 3. New accounts per year Corporate Culture and Values The PepsiCo policies for employees provide excellent working conditions, generous compensation and benefits packages. PepsiCo main aim is hard to develop the competency of the management teams who in turn, continuously improve the business and working environment. They established systems to ensure the reward and recognition program is part of management culture and continual career development for company employees.
Upon arrival in India, Pepsi Co. failed to fulfil the promises they made prior to entry and received numerous amounts of criticism. When the economy changed in India and they were faced with a foreign exchange crisis, Pepsi Co. was able to use that to their advantage. In the end, Pepsi Co. has been successful and through its Indian operations, Pepsi Co. has met the soft drink concentrate requirements in its worldwide plants. Key Issues Promises that Pepsi made prior to entry The promises that Pepsi made and did not fulfil once they gained entry Liberalization in India’s economy and how it was beneficial for PepsiCo. Positives in their expansion into India
Recommendations Secure supply chains It is recommended for PepsiCo to further invest in agricultural and rural development to become one of the largest growers of potatoes in China. Opening new plants and farms and introducing advanced irrigation technologies to transform arid zone into fertile potato farmland. To further build expertise and infrastructure throughout China so that they can have a strong, sustainable manufacturing and agricultural base to serve the growing needs across China. Localization To achieve long tern success, PepsiCo needs to constantly understand the difference in local markets and changing
The SWOT analysis of PepsiCo is stated below i. The strengths of our company Pepsi is:- • PepsiCo is the largest soft drink company in America and second largest company worldwide based on net revenue earned. • PepsiCo has acquired several brands like Pizza Hut and Kentucky Fried Chicken (KFC) in order to distribute and market them with its own brand. • PepsiCo brand stands for quality has loyal customers all over the world • PepsiCo was the first company which introduced the use of
Protecting the workplace help minimize working environment disturbances and physical securities PepsiCo's Human Rights Workplace Policy is guided by the Universal Declaration of Human Rights and related international covenants. The principles underlying our Human Rights Workplace Policy, available in 44 languages, are broadly communicated as part of the Code of Conduct training. The standards fundamental Pepsico Human Rights Workplace Policy, available in 44 languages, is comprehensively imparted as a major aspect of the Code of Conduct preparing. Pepsico is using, mostly the best on the market, the SAP supply chain management software. The outcome has been to coordinate with a wide region system, transmit accurate, complete client information, permitting the organization to more proficiently load trucks, plan conveyances and save labor work hours.
Coca cola being its main rival in the field of beverage production. Pepsico is a diverse company producing beverages, cereals and snack foods. Beverages field accounts for over $66 billion of their annual revenue (2013). PepsiCo has 18 global mega brands
India also has to compete with their competitors such as Russia and China by keeping their technology and infrastructure up-to-date to provide higher quality standards in order to remain as a leader in the industry. KPO sector is also expected to grow in India as new areas are being added into the existing list of specialization. India has shown tremendous results and gain huge revenue by providing KPO. This can be seen in the case above where 0.72 billion revenue was generated by the Indian KPO industry in 2003. In addition, the total sales of KPO Industry have since been on an upward trend.