Back ground information about PepsiCo company Firm History * In 1965: PepsiCo, Inc. is founded by…

Back ground information about PepsiCo company
Firm History
* In 1965: PepsiCo, Inc. is founded by Donald M. Kendall, President and CEO of
Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay, through the
merger:
* 1. Pepsi-Cola In 1898: Caleb Bradham, a New Bern, North Carolina, pharmacist,
created “Brad’s Drink,” a carbonated soft drink he created to serve his drugstore’s
fountain customers.
* 2. Frito Company
* 3. H. W. Lay Company.
* The Major products of the companies are: Pepsi-Cola Company, Fritos brand
corn chips, Lay’s brand potato chips, Cheetos brand cheese flavored snacks,
Ruffles brand potato chips, Rold Gold brand pretzels. Mountain Dew.
Growth
1966: Doritos is introduced, Pepsi enters Japan and Eastern Europe.
1970: PepsiCo moves from New York City to new world headquarters in Purchase, N.Y.
Pepsi is the first company to respond to consumer preference with lightweight,
recyclable, plastic bottles.
1977: PepsiCo acquires Pizza Hut, Inc
1978: Taco Bell
1980: PepsiCo Food Service International (PFSI) is formed to focus on overseas
development of restaurants.
1982:
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introduced.
Inauguration of the first Pepsi-Cola operation in China.
1985: PepsiCo is now the largest company in the beverage industry. The company has
revenues of more than $7.5 billion, more than 137,000 employees. Pepsi-Cola products
are available in nearly 150 countries and territories around the world. Snack food
operations are in 10 international markets
1986: PepsiCo purchases 7Up International, the third largest franchise soft drink
operation outside the United States.
1993: Pepsi-Cola introduces Aquafina bottled water into test market.
4
1996: Pepsi-Cola launches Pepsi World at www.pepsiworld.com
Global : Pepsi products are in almost 200 countries throughout the world. There are 22
different brand lines that account for at least $1 billion per year per brand
2009: Celebrated 75 years in Canada, Was on the “Best Food for Women” list in
Women’s Health magazine, Began a partnership with the NFL, Won U.S. EPA Smart
Way Environmental Excellence award, Became official beverage of Norwegian Cruise
Lines.

Vision statement
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company.

Mission Statement
Our mission is to be the world’s premier consumer products company focused on
convenient foods and beverages. We seek to produce financial rewards to investors as we
provide opportunities for growth and enrichment to our employees, our business partners
and the communities in which we operate. And in everything we do, we strive for
honesty, fairness and integrity.
Vision statement
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company.
External Assessment
Opportunities
1. Opening in market for less costly products
2. Growth opportunities in developed countries as well as international non established
countries
3. Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group
(PBG) and PepsiAmericas (PAS)
4. Compete in more than one industry (non-alcoholic beverage industry, the salty or
savory snack food industry, and the breakfast food industry)
5. Growth in the carbonated drink market is the largest in Asia and Europe
Threats
1. Fierce competition from Coca-Cola, which owns the largest piece of the market share
2. The downturn in economy, which lead customers to shift away from bottles of water to
tap water.
3. Because of the recession, customers are finding cheaper alternatives to the national
5
brands.
4. Customers are getting more conscious and concerned about their eating habits and
general health.
5. Campaign against plastic containers has impacted the sale of bottled beverages
Internal Assessment
Strengths
1. Strong brand equity
3. highly Innovative company
4. Ethical, socially responsible, and sustainable company
5. Strong advertising company with more than 40 slogans and songs
Weaknesses
1.PepsiCo production is really expansive because of the need to constantly develop new
products to meet the changing customers’ demands
2. PepsiCo is experiencing a lack of focus towards Pepsi sodas
3. PepsiCo is experiencing product recalls
4. PepsiCo has a low employment productivity and a weak distribution
5. PepsiCo depends too much on the US market.
Critical Success factors in beverage industry
• Market Share
• Advertisement
• Price competitiveness
• Product diversity
• Company image
• Customer loyalty
• Financial position
• Sales distribution
• Product quality
• Global expansion

Q# Based on your understanding and the below given information about
the company, provide appropriate weights and ratings to the
strengths and weaknesses given at the end. Further, interpret the
weighted score.

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