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).
This service helps the school, educators and parents to promote healthy eating habits among school students. There are variety of products such as bottled waters, juices, sports drinks and low calories carbonated soft drinks available for the school to decide where and when to sell. PepsiCo supports sustainable packaging policy, whereby they strive to lessen harm caused to the environment but yet still meeting the cost and performance criteria expected from consumers and customers. For example of PepsiCo sustainable packaging policy involves recyling materials, minimizing post industrial waste and achieving a lower carbon footprint. PepsiCo is aware of the differences in culture worldwide.
This is because besides of compete with Coca-Cola in soft drink market, Pepsi also introduce some snacks and breakfast, such as Quaker Oat, Lay and others (Business Insider, 2012). Secondly, PepsiCo.’s other competitive advantage will be its focus on shareholder returns. PepsiCo currently pays out 55% of its earnings as a dividend to its shareholders (Seghetti, 2012). With a strong bonding with shareholders, PepsiCo. is able to gain a high reputation and directly gain a strong financial support from its shareholders.
The Pepsi Refresh Project Pepsi drink is owned by Pepsi Co company which manufactured other products like Fritos, Doritos, Quaker oats and many more products. Pepsi co company was founded in the year 1965 by Donald M Kendall. Indra K Nooyi is the current chairman and they have around 285000 employees working in their company. They are currently having a revenue of around 57 billion. The Pepsi brand manufactures many drinks like Diet Pepsi, 7UP, Mountain Dew, Lipton Ice Tea, and Miranda.
The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. There are more than 53 million shareholders of Pepsico Company. Business Plans Previous and current PepsiCo since expanded its business have included an acquisition of Tropicana beverages in 1998 and the Quaker oats company in 2001, which added the Gatorade energy drink or sports drink brand to its portfolio business In the 1970s and '80s PepsiCo bought restaurant chains such as Pizza Hut, Taco Bell, and Kentucky Fried Chicken which was later changed to KFC, but in 1997 it spun off its restaurant business into a separate company, Tricon Global Restaurants PepsiCo, Inc.’s new 2025 sustainability agenda features ambitious health and wellness, environmental and social goals, the company said. In addition to reducing the amounts of sugar, sodium and fat in many of its products, it also is focused on improving the efficiency of its manufacturing and distribution operation while extending its role as an environmental steward.
• PepsiCo brand stands for quality has loyal customers all over the world • PepsiCo was the first company which introduced the use of cans and bottles and introduces new and innovative product packaging. • PepsiCo has one of the major production and distribution facilities in soft drinks and snack industries. • PepsiCo engages in various projects to help people and therefore it is considered as a socially responsible firm • PepsiCo mostly fights on high promotion, market share and high product differentiation ii. The weakness of PepsiCo is stated below:- • PepsiCo is too gone from its biggest competitors Coca-Cola in worldwide market-the demand for its product is highly
And as for assessment, Pepsico proactively recognizes social risk presentation implanted in their supply base to guarantee sustainable supply. They prescreen suppliers to prioritize existing supplier destinations to figure out whether they oblige further assessment and evaluation. PepsiCo’s objective is to secure the reputation of the Pepsico brand and guarantee long-term sustainable practical supply by tending to known social risks and building supplier ability. The outsider review results are transferred to the Supplier Ethical Data Exchange (SEDEX) stage, accessible by Pepsico and other secured clients. As a component of the methodology, remedial action plans for issue resolution are itemized for audit and tracking.
PepsiCo 2010 - till date: With the continuing challenge of the difficult global macroeconomic environment in the decades, PepsiCo has given strong operating performance that has kept them in the top tier in the industry and they have generated significant operating cash flows as well. • Net revenue grew 33 percent on a constant currency basis. • $8 billion was returned to our shareholders through share repurchases and dividends. • They have raised the annual dividend by 7 percent. Became the second-largest food and beverage business in the world, and the largest food and beverage business in North America and are increasingly global.
It was a joint venture with Voltas and Punjab Agro Industries Corporation. The main objective of this project was to bring horticultural revolution in Punjab i.e. a shift from only wheat and rice cultivation to fruits and vegetables also. Since PepsiCo found local varieties unfit for processing as potatoes harvested in cooler north-western and west central plains are not fit for processing because low temperatures at the time of crop maturity results in build-up of low dry material and high reducing sugars in the potato tuber. PepsiCo established an agro-research centre and used the contract farming system to procure raw materials.
This will also ensure that they get from existing customers to provide better income through cross-selling products. The burden of the supply chain is dispensed beverages can also distribute these snacks, thereby sharing the cost of the supply chain. Threats Decreasing gross profit and net profit margins. The Coca-Cola Company's gross margin and net profit margin is declining in the past few years, continued to decline due to high water and other raw material costs. Competition from PepsiCo.