Premium Essay

Pepsico Case Study File

In:

Submitted By pinkbaka
Words 850
Pages 4
The Business Case:

PepsiAmericas (PAS) is the world’s second largest manufacturer and distributor of Pepsi beverages, operating in nineteen mostly Midwestern states in the U.S. (69% of sales), central and Eastern Europe (26% of Sales) and the Caribbean (5% of sales). Net sales in 2008 totaled nearly $5 billion or 20% of PepsiCo’s total US beverage sales. In 2009 a recession hit the U.S. economy, but PepsiAmericas was also faced with two more important long-term challenges: (1) a declining U.S. market for carbonated soft drinks, and (2) increasingly powerful retailers who were squeezing PAS profit margins. In addition, PepsiAmericas product line had moved from 35-40 products in the mid-1990’s to nearly 400 products by 2009.

These developments forced PepsiAmericas to embrace a completely new operating model. In the past, distribution was handled by the local delivery person, who “owned” a particular route of retail customer stores. The delivery person would load his/her truck in anticipation of what was needed at each of his/her assigned locations. Over time, the delivery person knew what to expect and could pretty much address customer needs on a day-to-day basis. Each delivery person worked within one of seven regional PepsiAmericas organizations (business units), each servicing its own list of customers and tracking its own data. This old regional system required contracts by store with different PepsiAmericas regions servicing different outlets of the same national chain. However, as Pepsi moved from 35 to 400 products and as the packaging for these products became less uniform, it proved difficult to know about, let alone carry the right mix of products in the truck. Furthermore, chains like Wal-Mart, CVS Drug Stores, and Mobil Gas Stations, preferred highly centralized procurement arrangements and national contracts. Pepsi was therefore obliged

Similar Documents

Premium Essay

Pepsi Co

...Executive Summary The case study will examine the strategy implemented by PepsiCo to exploit rapidly growing markets opportunities by acquiring the organisations Tropicana, Gatorade and Quaker. The case study will highlight that it was imperative for the PepsiCo organisation to embark on a radical restructuring strategy to optimise their return on investments. The paper will discuss the rationale behind the critical restructuring .The benefits of the acquisitions and restructuring strategy will be discussed and motivated in detail. The strong existing competitive resources that PepsiCo and the new acquired brands in the North America region possess will be emphasised. The modifications to PepsiCo structure in 2001 and 2004 will be scrutinised to motivate and justify the decisions of the PepsiCo leadership. In addition the case study will evaluate the execution of the radical change and the tasks that should be performed by key resources. The emotional impact on employees due to the radical transformation and the key role employees should perform will be described. The focus of the paper will be on the function; the leadership of PepsiCo must perform and the potential roles the employees of PepsiCo could execute. Ultimately, the case study will discuss the complex relationship between structure and strategy. The paper will establish that PepsiCo had to regular acclimatise their strategy and structure to accomplish their organisational goals.   Introduction Over...

Words: 2894 - Pages: 12

Premium Essay

Consumer Rights

...CONSUMER RIGHTS WHO IS A CONSUMER 1. A person who has indicated his or her willingness to obtain goods and/or services from a supplier with the intention of paying for them. 2. Someone who has purchased goods and/or services for personal consumption 3. A person or group of people, such as a household, who are the final users of products or services. The consumer's use is final in the sense that the product is usually not improved by the use. DUTIES OF CONSUMERS 1. Buying quality products at reasonable price. 2. To check the weights and measures before making purchases 3. Reading the label carefully. 4. To procure the bill, cash received warranty, etc. 5. Shopping carefully and wisely 6. Understanding the terms of the sale 7. Reading and following instructions HOW CONSUMERS ARE EXPLOITED 1. Underweight and Under-measurements : The goods being sold in the market are sometimes not measured or weighed correctly 2. Sub-standard Quality : The goods sold are sometimes of sub-standard quality. Selling of medicine beyond their expiry dates is generally the grievances of consumers. 3. High Prices : Very often the traders charge a higher price than the prescribed retail price 4. Duplicate Articles : In the name of genuine parts or goods, fake or duplicate items are being sold to the consumers. 5. Artificial Scarcity : In order to amass illegitimate profit, businessman create artificial scarcity by hoarding. They sell it later at a higher...

Words: 1819 - Pages: 8

Premium Essay

Cola Wars

...Coca-Cola to compete for a larger share of the market. The intense rivalry between Coca-Cola and Pepsi Cola have been going on since the late 1800’s (Economy Watch, 2011); when Pepsi Cola was born from a “combination of: carbonated water, kola nuts, vanilla, and rare oils” (Pepsi Legacy Book, p.7. 2005). This paper focuses on the diversified strategies of both Pepsi Cola and Coca-Cola in their efforts to gain the largest share of the market and the recommendations to capture a larger share of the market. Vision and Mission Pepsi Cola The vision of Pepsi Cola is “to put into action through programs and focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company” (PepsiCo-purpose, n.d.). One can...

Words: 6418 - Pages: 26

Free Essay

Dividend Policy

...Business New York University Cases in Financial Management B40.2345 Tony Marciano amarcian@stern.nyu.edu KMC 9-87 First Class Assignment For the first class meeting, I will expect you to prepare the INTEL case in your course packet. You should use the detailed questions given in the course packet to organize your thoughts and analysis about the case. Our class discussion will cover the issues raised by the questions, i.e.: (i) What capital structure makes sense? (ii) What would be the best way to disburse cash? (iii) Describe the advantages and disadvantages of each alternative considered by management? In addition to reading and analyzing the Intel case, you should come to class with a one to two page memorandum that summarizes your analysis. You may team up with one or two classmates and hand in one memorandum for the group. (I.e., I will accept a memorandum with up to, but not more than, three names on it.) Stern School of Business New York University Cases in Corporate Finance Marciano Tony Course Syllabus TENTATIVE I. Course Materials A. Packet I (Required): 1. Syllabus 2. Assignments 3. Cases 4. Readings B. Text (Very Highly Recommended but probably have it already): Brealey Myers Allen, Principles of Corporate Finance, McGraw Hill. (BM) You may already have this text. C. There will be some miscellaneous handouts during the course. AND THERE ARE FILES ON BLACKBOARD WHICH CONTAIN SPREADSHEETS FOR THE CASES WE WILL ANALYZE IN THE COURSE...

Words: 4432 - Pages: 18

Premium Essay

Biz Eethics

...Daniels Fund Ethics Initiative University of New Mexico http://danielsethics.mgt.unm.edu PepsiCo’s Journey Toward an Ethical and Socially Responsible Culture COMPANY OVERVIEW PepsiCo is one of the largest food and beverage companies in the world. It manufactures and sells eighteen brands of beverages and snack foods and generates over $98 billion in retail sales. PepsiCo encompasses the Pepsi Cola, Frito-Lay, Tropicana, Quaker, and Gatorade brands and offers products in over 200 countries. It currently holds 36 percent of the total snack food market share in the U.S. and 25 percent of the market share of the refreshment beverage industry. The company’s headquarters are in New York and employs over 200,000 people. In 2006, Michael D. White became the CEO of PepsiCo International, and in 2007 Indra K. Nooyi became the CEO of PepsiCo. PepsiCo has received many awards and recognitions over the years, including being ranked in the top 25 of the best global brands, ranking number four overall by Diversity Inc, and earning the Green Award by the Environmental Protection Agency. COMPANY AND MARKETING HISTORY The Pepsi recipe was developed by pharmacist Caleb Bradham in the 1890s. Originally marketed under the unassuming name “Brad’s Drink,” Bradham’s creation was renamed Pepsi-Cola in 1898 due to the pepsin and kola nut ingredients used. Awareness of Bradham’s new creation spread quickly, and in 1902 he decided to create the Pepsi-Cola Company so people everywhere...

Words: 8703 - Pages: 35

Premium Essay

Pepsi

...COMPANY PROFILE CORPORATE OVERVIEW Pepsi co was incorporated in the year 1919 and was re-incorporated in North Carolina in 1986. Pepsi is engaged in beverage and snack food business. PepsiCo is a multinational company and it is most successful consumer product company in the world with annual revenue of $ 20 billion and about 1, 43,000 employees. Some of PepsiCo’s brand names are nearly 100 years old. PepsiCo has achieved a leadership position in each of the two major packaged good business i.e. beverage and snack chips. PepsiCo the conglomerate king of soft drink has its wide range of soft drinks products available in every book & corner of the world. THE INDIAN STORY Pepsi & Co came to India as food processing unit, Punjab during the year 1986-87 head office Pepsi food unit situated in Delhi, employees are more than 2500 people. Pepsi co today is the leader in the cola and orange segments of beverages in India and enjoys leadership in soft drinks in many parts of the country. It focuses on execution excellence, strengthen, bottle network, reach and penetration in rural and semi-urban areas and customer focused marketing areas. PEPSI INDIA FOODS BEVERAGES EMU WOMU NOMU SOMU 1. PEPSI FOODS Pepsi manufacture the food product like LAYS, KURE KURE etc. 2. PEPSI BEVERAGES Pepsi beverages manufacturing the soft drinks with concentrates flavor. PEPSI INDIA MARKETING: Distribute soft...

Words: 4433 - Pages: 18

Premium Essay

Pepsi Lipton Brisk

...early February. What Barnard and Tamaro needed to decide was how to carry the advertising momentum in the months following the most viewed sports event in American television. Should they stick with advertising on TV or try out a viral advertising approach in social media? Their budget wouldn’t allow for both media to be used. Barnard, Vice President at PepsiCo and the General Manager of the Pepsi-Lipton Tea Partnership (PLP), owner of Brisk, was in charge of the final decision and conferred with Tamaro, Brand Building Director for Brisk, on what to do. PepsiCo was the second largest food and beverage company in the world. So at $340 million in net revenues in 2009-10, PLP seemed like a drop in the ocean compared to the $10 billion1 from its holding company, the Pepsi Americas Beverages division. Yet, PepsiCo executives had given a Super Bowl spot to Brisk, over bigger brands such as Lay’s and Mountain Dew, because top management had decided to invest in the brand and in iced tea. It was the only major category where neither Pepsi nor its rival, Coca-Cola, had the top market share position. Needless to say, all eyes at PepsiCo were on...

Words: 8955 - Pages: 36

Free Essay

Taco Bell

...Case Presentation: Taco Bell Case Presentation: Taco Bell Pat Lauscher and Jesse Paprocki BUS 754: Information Systems Mgmt Spring 2003 HISTORY (EVENTS) Company Focus: John Martin joined Taco Bell in 1983 as president and CEO, having previous executive level experience with other fast food chains. He discovered that the company didn’t know what business it was in, so he quickly focused Taco Bell on the fast food industry. Process Improvements: 1983-1988: Strong growth in the 60s and 70s came to a halt in the early 1980s as the fast food industry began showing signs of maturity. To deal with the potential threat of a maturing business, Taco Bell began a series of process improvement initiatives that really changed the way it did business. These improvements included increased restaurant capacity by modernizing its restaurants to include drive through windows, increased seating capacity, electronic point of sales systems (to replace plastic order boards), and reconfigured food production areas. Taco Bell also added some new menu items during this time. 1988-1991: Continuing to feel the effects of an industry margin squeeze, Martin commissioned two studies that tuned the company in to what the customers really valued, FACT (Fast, Accurate, Clean, and Temperature). In response, the organization stopped viewing quality and price as incompatible tradeoffs. The K-minus program transformed the kitchen into a heating and assembly unit and centralized cooking...

Words: 1534 - Pages: 7

Premium Essay

Management

...Time: Tuesday (11:30-13:30) GP 4   |   |   |   |   |   |   | Table of content | |   |   | | Content: |   | |   |   | | Introduction | 2 | |   |   | | The case against Pepsi Co and its impact & implication: |   | | |   | | (A) Achieving positive water balance | 2&3 | | (B) Land & Packaging- Moving towards zero landfill | 4 | | (C ) Climate change- reducing the carbon Footprint of operations | 5 | | (D) Protecting Natural resources and health | 6 | | | | |   |   | | The case for Pepsi Co and its impact & implication: |   | | | | | (A) Pesticide controversy in India and Carbon dioxide emission | 7 | | (B) Using Tap water for Bottling | 7&8 | | (C )Health issues and Recycling problem | 8&9 | | | | |   |   | | Conclusion: | 9 | |   |   | | References: | 10&11&12 | |   | Re: Corporate Environmental Obligation: An examination of the performance of Pepsi company Introduction: Modern organizations have high considerations for societal contribution. Nowadays, customers are environmental conscious and concerned about ecological implications. Social performance has become an important pillar for effectiveness and survival. It is a benchmark for measuring organization and societal progress. PepsiCo ltd., one of the world’s largest food and Beverages business deals in Pepsi cola drinks, Frito-Lay snacks, sports drinks and Quaker foods, there is a high...

Words: 4895 - Pages: 20

Premium Essay

Pepsi Prospectus

...The prospectus is being displayed in the website to make the prospectus accessible to more investors. The Philippine Stock Exchange (PSE) assumes no responsibility for the correctness of any of the statements made or the opinions or reports expressed in the prospectus. Furthermore, the PSE makes no representation as to the completeness of the prospectus and disclaims any liability whatsoever for any loss arising from or in reliance in whole or in part on the contents of the prospectus. The offering information on this Web site is intended to be available only to Philippine and non-Philippine citizens residing in the Philippines or corporations or judicial entities organized and existing under Philippine law, and is not intended for distribution in the United States or to U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act")). The information contained in this Web site may not be published or distributed, directly or indirectly, into the United States and this information (including the preliminary and final Prospectus) and does not constitute an offer of Offer Shares for sale in the United States or to, or for the account or benefit of, U.S. persons. The Offer Shares described in the Prospectus have not been, and will not be, registered under U.S. Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States and may not be offered or...

Words: 112816 - Pages: 452

Free Essay

Ban the Box: Employment Discrimination and the Ex - Offender

...THE EMPLOYER AND THE EX-OFFENDER: THE DISCRIMINATORY EFFECTS OF CRIMINAL BACKGROUND CHECKS TABLE OF CONTENTS I. INTRODUCTION………………………………………………………………………… 3 II. OFFENDER AND EX OFFENDER HISTORY IN THE UNITED STATES………….. 5 A. LEGAL HISTORY OF EMPLOYMENT DISCRIMINATION AGAINST EX OFFENDERS ……… 5 B. THE NUMBER OF EX OFFENDERS IS RAPIDLY INCREASING .............................................................................8 C. IMPACT OF CONVICTION ON EMPLOYABILITY OF EX OFFENDERS ................................................................. 10 III. CRIMINAL BACKGROUND CHECKS AID IN THE DISPROPORTIONATE EXCLUSION OF
 MINORITIES ………………………………………………………………………………… 13 A. EMPLOYERS ARE PREJUDICED UPON FINDING CRIMINAL CONVICTIONS .................................................. 13 B. BLACKS AND LATINOS ARE EXCLUDED FROM THE WORK FORCE DUE TO STIGMAS OF MINORITY STATUS AND CRIMINAL RECORD ....................................................................................................................... 15 IV. HEIGHTENED SCRUTINY TURNS ON EMPLOYER HIRING PRACTICES INFLUENCED BY CRIMINAL BACKGROUND CHECKS………………………………………………………………………………………… 18 A. THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION ATTEMPTS TO PROVIDE MUCH NEEDED GUIDANCE ON CONDUCTING CRIMINAL BACKGROUND CHECKS AND SUBSEQUENT HIRING PRACTICES ..................................................................................................................... 18 B. NOTABLE LEGAL ACTION STEMMING...

Words: 14524 - Pages: 59

Premium Essay

Britvic Case Study

...Breaking Down the Chain: A Guide to the soft drink industry aCknowleDgments this report was developed to provide a detailed understanding of how the soft drink industry works, outlining the steps involved in producing, distributing, and marketing soft drinks and exploring how the industry has responded to recent efforts to impose taxes on sugar-sweetened beverages in particular. the report was prepared by sierra services, inc., in collaboration with the supply Chain Management Center (sCMC) at rutgers university – newark and new Brunswick. the authors wish to thank kristen Condrat for her outstanding support in all phases of preparing this report, including literature review and identifying source documents, writing, data analysis, editing, and final review. special thanks also goes to susanne Viscarra, who provided copyediting services. Christine fry, Carrie spector, kim Arroyo Williamson, and Ayela Mujeeb of ChangeLab solutions prepared the report for publication. ChangeLab solutions would like to thank roberta friedman of the yale rudd Center for food Policy and obesity for expert review. for questions or comments regarding this report, please contact the supervising professors: Jerome D. Williams, PhD Prudential Chair in Business and research director – the Center for urban entrepreneurship & economic development (Cueed), rutgers Business school – newark and new Brunswick, Management and Global Business department 1 Washington Park – room 1040 newark, nJ 07102 Phone: 973-353-3682...

Words: 40786 - Pages: 164

Premium Essay

Cola

...PEPSI COLA [pic] Introduction: Pepsi Cola started in the January 1898, from a small Drug store in the city of North Carolina. The owner of the Drug store, Mr. Caleb Bradham, prepared a drink, which the customers called "the Bred Drink". Bred registered this drink with the name of Pepsi Cola in 1903. Then he started his own production at Marco level and established his own company. The business expanded and this drink got fame time. In 1909 this company reached to 24 states of America with more than 250 dealers. The very first packing of Pepsi was in 16.5 ounce. In 1932 Pepsi cola has introduced its new packing in 12 ounce. In 1950 Pepsi Cola has started its new Advertising Campaign with the name of "Refresh without Filling". It also changed the chemical formula and decreased its sweetness and calories. With the efforts of the Sales & Marketing Department, Pepsi got so much fame that it established new plants at a rate of thirty per annum. In 1985 the design of the bottle has been changed after 20 years. And a new and attractive packaging has been offered with two new flavor i.e., Teem & Mirinda. Today Pepsi is available in more than 160 countries of the world including Soviet Union & China. HISTORY OF PEPSI COLA: 2001 Pepsi puts "a little twist on a great thing," introducing lemon-flavored Pepsi Twist and Diet Pepsi Twist. The product launch marks the return to lemon-flavored...

Words: 15353 - Pages: 62

Premium Essay

Interclean Benchmarking

...highlighted in this analysis are human resource philosophy, employee retention, mergers and acquisitions, human resources product handling and servicing. Benchmarking was conducted to evaluate how other companies had handled situations similar to those of Interclean. Outside companies evaluated for comparison come from the mortgage industry, pharmaceutical industry, oil industry, specialty eatery industry, technology industry, airlines industry, chemical industry, insurance industry, and home improvement retail industry. The companies evaluated in this paper were Guardian First Funding Group, Trinity-Chiesi Pharmaceuticals, BP Amoco, Starbucks, Google, Northwest Airlines and Delta Airlines, Rohm and Haas Company, Liberty Mutual Holding Company, Pepsico, and LOWE’s. Evaluation of these companies showed several concepts used in handling the issues and how the companies used these concepts. Situational Analysis Retaining Employees Guardian First Funding Group - Guardian First Funding Group (GFFG) is a mortgage company exclusively involved in the reverse mortgage business. They have been selling reverse mortgages for a little more than a year now. In this time, GFFG has grown to rank 15th in the industry, with expectations to reach the top 10 by the end of the first quarter, 2009. Comprised mainly of Loan Officers, supplemented by a small number of operations employees, GFFG generates its income through the selling of reverse...

Words: 4333 - Pages: 18

Premium Essay

Partnership Form of Organization

...Organization A partnership is an association of two or more persons to carry on as co-owners of a business for profit. Partnerships are sometimes used in small retail, service, or manufacturing companies. Also accountants, lawyers, and doctors find it desirable to form partnerships with other professionals in the field. Characteristics of Partnerships STUDY OBJECTIVE 1 Identify the characteristics of the partnership form of business organization. Partnerships are fairly easy to form. People form partnerships simply by a verbal agreement, or more formally, by written agreement. We explain the principal characteristics of partnerships in the following sections. Association of Individuals A partnership is a legal entity. A partnership can own property (land, buildings, equipment), and can sue or be sued. A partnership also is an accounting entity. Thus, the personal assets, liabilities, and transactions of the partners are excluded from the accounting records of the partnership, just as they are in a proprietorship. The net income of a partnership is not taxed as a separate entity. But, a partnership must file an information tax return showing partnership net income and each partner's share of that net income. Each partner's share is taxable at personal tax rates, regardless of the amount of net income each withdraws from the business during the year. Mutual Agency http://edugen.wiley.com/edugen/courses/crs1663/...2/weygandt0196c12_2.xform?course=crs1663&id=ref...

Words: 2344 - Pages: 10