There are barely a few people in the universe who are unfamiliar with the word Pepsi. Wordss such as Cola or sodium carbonate have about become synonymous with it. Pepsi is arguably the most celebrated soft-drink consumed by one million millions all over the universe. And the company responsible behind this success is one of the universe market giants ; PEPSICO, Inc.
Harmonizing to Andreas Penzkofer ( 2007 ) , the company came into being in 1965, when the Pepsi-cola company acquired the bite nutrient company called Frito-Lay. The company has started to spread out itself abroad since the 1890ss. Pepsico Incorporated is a Fortune 500 American transnational corporation. Its central offices are based in Purchase, New York. It is a company which has selling and fabrication involvements in a broad assortment of merchandises runing from carbonated and non-carbonated drinks, salty, Sweet and cereal based bites, juices etcetera. Some of the major trade names owned by the company are Quaker Oats, Gatorade, Frito-Lay, Tropicana, Copella, Mountain Dew, and 7 Up.
Harmonizing to Lawrence Dietz ( 1973 ) , the position of the company is to increase the value of the share-holders investing. The company plans to make this by accomplishing growing in gross revenues, commanding the costs and intelligent investing of resources. The company believes that their commercial success is dependent upon offering good quality and value to their consumers and clients, doing available merchandises that are safe, wholesome, and economically efficient while supplying just returns on investings to their investors by keeping high degrees of unity.
ORGANISATIONAL STRUCTURE AND CULTURE
Pepsico operates in all the six major continents of the universe viz. Asia, Africa, Australia, North America, South America and Europe. Their operations are farther broken down amongst states in these continents. The inter-organisation construction of the company has many sub-divisions. Their merchandises are produced and bottled at the fabrication works, delivered to the providers by the distributers, the providers sell it to the retail merchants and eventually to the consumers. These supply-chains in different states are controlled by one chief headquarter.
Harmonizing to Andreas Penzkofer ( 2007 ) , the purpose of the company is to pull off supply ingredients and keep purified H2O supply to guarantee quality and handiness to bring forth the merchandises. Ensure handiness of the best engineering and speedy storage and stock list procedures to keep freshness and quality. Determine the demand by past gross revenues and future selling. Besides guarantee proper packaging, maintain speedy local distribution and run into any new demands or competition with merchandises and consumer demands.
Andreas Penzkofer ( 2007 ) , besides states that the company ‘s mission is to go the universe ‘s best consumer merchandises company. Its purpose is to better on the fiscal returns to the investors as it provides chances of growing and development to its employees. It is besides concerned about continuing the environment and has designed a separate set of ends particularly in its favor. This can be observed from the replacing of can holders with fictile ring connections which snap when the tins are removed ; thereby cut downing the hazard of web for wildlife. Pepsico besides aims at diversifying its work force so as to hold a better apprehension of different civilizations. This has led the company to win many awards every bit good as being ranked at the 9th place by the fortune magazine as being the best company for minorities.
Market Share
Harmonizing to Lawrence Dietz ( 1973 ) , Pepsico, Inc. is one of the taking consumer merchandise companies in the universe holding many of the universe ‘s most of import and valuable hallmarks. It is the 2nd largest soft-drink concern holding a 21 per centum portion of the carbonated soft-drink market in the universe and 29 per centum in the United States. Three of its major soft-drink trade names Pepsi-cola, Mountain Dew and Diet Pepsi are amongst the top-ten soft-drinks in the U.S. market. The company has besides spread itself well in the universe snacks market by presenting a company division known as Frito-Lay. It has a 40 per centum universe market portion in salty bites and 56 per centum in the United States. It is nine times the size of its closest rival in the U.S. and sells nine of the top-ten bite bit trade names in the supermarket channel some of which include ballads, Doritos, frills and Chee-tos. Frito-Lay is responsible for bring forthing more than 60 per centum of Pepsico ‘s net-sales and more than two-thirds of the parent company ‘s operating net incomes. The company besides has a 3rd division called Tropicana Products, Inc. , which is the universe leader in juice gross revenues and occupies a strong 41 per centum of the U.S. chilled orangish juice market. On a planetary graduated table, Pepsico owns 16 trade names that generate more than 500 million dollars in gross revenues each twelvemonth, 10 of which are responsible for bring forthing more than 1 billion dollars yearly. Pepsico acquires around 35 per centum of its retail gross revenues outside the United States, with Pepsi-cola trade names marketed in approximately 160 states, Frito-Lay trade names marketed in more than 40 and Tropicana trade names in around 50 states.
Business Model
Harmonizing to Richard Goodman ( 2009 ) , Pepsico has managed to device a successful concern theoretical account which stresses importance on three cardinal factors. Structural and operational advantages, successfully pilot the company through unsure times and doing strategic investings for future growing. Pepsico aims at meeting challenges and puting for the hereafter by supplying value to clients and consumers, holding an first-class market scheme, puting in research and development and invention. By accomplishing these factors, the company will be able to retain clients. The company besides aims at efficaciously pull offing monetary value spreads, conveying in planetary progresss in drink battalion sizes, triping the consumer by keeping competitions, working out capital benefits for the clients every bit good as the consumers, control monetary values of merchandises around the universe market, appealing to local gustatory sensations, accommodating to local imposts thereby accomplishing healthy and consistent public presentation.
GLOBAL VISIBILITY
The planetary visibleness of Pepsico can be observed from the sheer figure of states its merchandises are consumed in. From the market portion subdivision above, it can be seen that Pepsi-cola trade names are marketed in 160 states, Frito-Lay trade names marketed in more than 40 and Tropicana trade names in around 50 states. Although Pepsico is an American Multinational corporation, India and Europe are of two of its biggest markets outside of the United States.
Business Alliances
Pepsico has formed partnerships with many merchandises it does non have but in order to administer and market them with its ain merchandises. Some of these merchandises include, Starbucks iced java, Lipton original iced tea, Ben and Jerry ‘s milk shake etcetera. Besides some of Pepsico ‘s concern confederations include Pepsico Quaker Chewy teaming up with Afterschool Alliance and Miranda Cosgrove to Name Attention to the Importance of Afterschool Programs, Pepsi-Cola North America Beverages and Ocean Spray Strategic Alliance to Include Additional Juice and Juice Drinks, Oxford Health Alliance and PepsiCo Foundation implemented Community Interventions etcetera. ( Beginning: www.pepsico.com, day of the month taken: 08/08/2010 )
COMPETITIOR ANALYSIS
Direct COMPETITIORS
The Coca-Cola Company
As we all know, Coca-cola or Coke as it is popularly known, and Pepsi have been viing with each other since the longest possible times. Even as childs, we used to hold advertizements on telecasting demoing us to take one over the other. As the old ages base on balls by and as the companies seem to spread out themselves more and more, their competition to achieve market laterality seems to turn farther more.
Harmonizing to Pat Watters ( 1978 ) , the Coca-Cola Company is fundamentally a non-alcoholic drink bring forthing company. It is besides responsible for fabrication, selling and distributing dressed ores and sirups which are used to bring forth these drinks. The Coca-Cola Company has their drinks sold in more than 200 states worldwide. Their central office is in Atlanta, Georgia. The company owns more than 500 trade names of non-alcoholic drinks which chiefly include scintillating drinks. But they besides manufacture still drinks like enhanced Waterss, juices and juice drinks, ready-to-drink teas and javas, and energy and athleticss drinks.
Royal Crown Company, Inc
The Royal-Crown Company, Inc is a 50 billion dollar company which manufactures and sells dressed ores that are used in the production of soft-drinks. These soft-drinks are so sold locally and internationally to independent accredited bottlers.
RC Cola is the company ‘s prima trade name and is ranked as the 3rd largest Cola trade names after Pepsi and Coke. Some of the other trade names which the company owns are Diet RC Cola, Diet Rite Cola, Lockjaw, Upper 10 and kick. ( Beginning: www.rccola.com, Date accessed: 09/08/2010 )
COMPETITIVE ANALYSIS GRID
SWOT Analysis for PepsiCo:
SWOT Analysis signifies the rating of the strengths, failings, chances and menaces possessed and faced by a peculiar company, organisation or establishment. Harmonizing to Pahl, Richter ( 2009 ) , SWOT Analysis is good and a important tool for decision-making and calculating dependences between a company and its environment since subjective sentiments are replaced by proactive and constructive thought.
The SWOT Analysis for PepsiCo is as follows:
3.1. Strengths:
PepsiCo has a strong trade name repute in the planetary market due to its presence of over 120 old ages.
It has had a significantly increasing market portion over the old ages due to the launch of new merchandises like Pepsi Max and other thoughts. ( Bachmeier, 2009 )
Its topographic point has been determined and positioned strongly with respect to net incomes, gross revenues and client trueness due to its creativeness and effectivity.
PepsiCo self-praises of a strong merchandise line with a assortment and diverse scope of merchandises.
It faces no hard currency shortage and hence has immense advertisement budgets to beef up its market place.
3.2. Failings:
PepsiCo depends mostly on the US market for its grosss. Harmonizing to Plunkett ( 2009 ) , about 29 % of PepsiCo ‘s entire net gross is derived merely from PepsiCo Beverages North America and its entire market gross dependant on US entirely exceeds 50 % . This may turn out to be damaging in the invariably altering economic conditions.
Some of the PepsiCo merchandises lack uniformity in their trade name names.
Experts have cited wellness jeopardies in the ingestion of PepsiCo merchandises due to high fat and sugar contents.
The image of PepsiCo has been at interest due to incidents like the exploding of Pepsi tins in 2007 followed by salmonella taint in Pepsico ‘s merchandise – Aunt Jemima battercake and waffle mix. ( Clark, 2008 )
3.3. Opportunities:
PepsiCo has been working to broaden its merchandise base well. In 2005, it bought General Mills ‘ interest of the largest European bite nutrient house ‘Snack Ventures Europe ‘ . In add-on, PepsiCo acquired the German juice shaper Punica Getraenke. ( Penzkofer, 2007 )
PepsiCo operates through its four subordinates – PepsiCo Beverages North America ( PBNA ) , PepsiCo International ( PI ) , Quaker Foods North America ( QFNA ) and Frito-Lay North America ( FLNA ) in about 200 states. ( Penzkofer, 2007 )
With 153,000 employees, the company had entire net gross of $ 29,261 million in 2005 and was ranked at topographic point 62 of the Fortune 500 Ranking of the largest companies in the United States. ( Norton, Porter, 2010 )
PepsiCo has bit by bit been developing uncarbonated drinks and healthy merchandises, pulling more clients.
3.4. Menaces:
PepsiCo faces considerable menaces due to strong rivals like The Coca-Cola Company, Nestle, Dr. Pepper Snapple Group etcetera.
Incidents like those of taints and pesticide residues found in PepsiCo merchandises have caused significant trade name harm to the company, particularly in big emerging markets like India.
PepsiCo has been in a vulnerable place in the recent yesteryear due to labor jobs. To exemplify, there was a month long work stoppage at Frito-Lay India, a portion of PepsiCo India Holdings Limited, get downing in August 2008 due to a difference between the workers ‘ brotherhood and the company direction. ( Beginning: hypertext transfer protocol: //www.expressindia.com/latest-news/strike-at-pepsis-channo-plant-ends/363190/ , Date accessed: 12.08.2010 )
Stagnation acts as a menace for the company since the nutrient and drinks industry has reached its adulthood and there are barely any avenues that remain undiscovered.
PROPOSED BUSINESS, INFORMATION SYSTEMS AND INFORMATION TECHNOLOGY STRATEGIES FOR THE FUTURE
Business Scheme
For future growing chances and net incomes, PepsiCo should seek to transport out their concern by presenting healthier merchandises in the market. The company can accomplish this by
Reducing the Calories in the nutrient merchandises so that the ingestion can be a healthy one.
The company can pull strings the market to command what people are eating and imbibing.
Healthy options should be made available to all
The company should undergo a alteration from interior and transform their repute as a maker of healthy merchandises which basically gives nutritionary value.
In the old ages to come, the company should prosecute its concern in supplying fruits, veggies and grains. The company as a whole should react to the altering consumer demands. Using the latest scientific discipline and promoting positive nutrition is the demand of the hr as the multitudes become wellness witting twenty-four hours by twenty-four hours. The company needs to be redeveloping itself and go advanced by doing usage of the following coevals engineering. The company can farther unify itself with healthier trade names of merchandises. ( Beginning: www.Pepsico.com, Date accessed: 10/08/2010 )
Information Systems and Information Technology Strategy
Buckingham et Al. ( 1987 ) , defines an information system to be a system that can piece, shop, procedure and present information relevant to an administration. This is done in a manner that the information is available and utile to anyone who wants to utilize it, including directors, staff, clients and citizens. An information system is a human activity system which may or may non affect the usage of computing machine systems.
A good information system scheme harmonizing to Guy Fitzgerald ( 2002 ) , for a immense consumer nutrient merchandises and drinks company like PepsiCo to transport out its concern for future growing and net incomes would be:
To exactly document the demands necessary for a good information system: Here, the users should be able to stipulate their system demands or the system developers should be able to look into and analyze user demands so that the information system will run into the demands of the users.
Efficiently monitor the advancement by supplying an orderly method of development: For a immense company like PepsiCo, commanding its large-scale undertakings is non easy. If the undertakings fail to run into the deadline, they can hold serious cost and other reverberations for the company. Supplying check-points and specific phases should do certain that the undertaking planning processs are applied efficaciously.
Provision for the company ‘s information system should hold a suited clip bound and an acceptable cost.
The certification of the system should be decently preserved and besides the system should be easy to keep: This is highly of import as in a company like Pepsico, alterations to the information systems is inevitable due to the sum of alterations taking topographic point in the company and its environment.
The system should be able to do the best usage of the techniques and tools that are already available.
The system should be liked by the people who are affected with the system such as the company stakeholders. The interest holders of the company may include clients, directors, hearers and users. If the system is liked by them, it is most likely to be used and convey success to the company.
A successful information system should besides do effectual usage of information engineering by utilizing the available tools and techniques. An effectual usage of information engineering would affect:
All staff holding standard desktop tools. They should hold entree to e-mail, Internet and Intranet.
IT substructure should be continuously upgraded as allowed by the company ‘s resources and budget.
Systems and webs at the company ‘s head-quarters and in the field should be standardised and centrally managed.
A centralized squad should supply IT aid to staff and a broad scope of IT preparation.
The company should do usage ERP systems at the head-quarters.
For information and cognition direction, the company should implement papers direction system.
Making usage of such concern, information system and information engineering schemes would assist the company remain competitory in the market in the hereafter.
