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PepsiCo. By: Ashley Cleary, Sylvia LaBrie , Andrea Baril , Marie-Michele Lachance. Overview. Company Overview History of Pepsi Growth 2009 Events and Issues Existing Mission and Vision statement New Mission and Vision Statement SWOT Analysis External Assessment CPM EFE

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pepsico

PepsiCo

By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, Marie-Michele Lachance

overview
Overview
  • Company Overview
  • History of Pepsi
  • Growth
  • 2009 Events and Issues
  • Existing Mission and Vision statement
  • New Mission and Vision Statement
  • SWOT Analysis
  • External Assessment
  • CPM
  • EFE
  • Positioning Map
  • Internal Assessment
  • Organizational Chart
  • Income Statement
  • Balance Sheet
  • Financial ratios
  • IFE Matrix
  • Strategy Formulation
  • SWOT Matrix
  • Grand Strategy Matrix
  • BCG
  • Space Matrix Data
  • Space Matrix
  • IE Matrix
  • Matrix Analysis
  • QSPM Matrix
  • Strategic Plan
  • Strategy
  • Objectives
  • Recommendations
  • Assumptions
  • Implementation
  • EPS/EBIT
  • Projected Financials
  • Evaluation
  • Balanced Scorecard
  • Key Future Ratios
history
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
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.

growth cont
Growth Cont.

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.

1996:

Pepsi-Cola launches Pepsi World at www.pepsiworld.com

global
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

slide7
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 SmartWay Environmental Excellence award

Became official beverage of Norwegian Cruise Lines

mission statement
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
Vision Statement

PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today."

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.

proposed mission
Proposed Mission

Customer

Products or Services

Markets

Technology

Concern for survival, profitability, and growth

Philosophy

Self-Concept

Concern for public image

Concern for employees

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages through stores as well as our website. (1,2.3,4) 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. (5,8,9) And in everything we do, we strive for honesty, fairness and integrity. (6,7)

proposed vision
Proposed Vision

PepsiCo, in association with smaller brands, offers a wide variety of products from beverages to snacks at low cost.

opportunities
Opportunities

1. Opening in market for less costly products

2. Growth opportunities in developed countries as well as international nonestablished 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

6. The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks

threats
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 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

6. Highly dependent on supplies of clean water, to prevent contamination

positioning map
Positioning Map

High Prices

Limited Products

Diverse Products

Dr. Pepper Snapple Group

Coca Cola

Pepsi Co.

Low Prices

strengths
Strengths

1. Strong brand equity

2. Well-known worldwide

3. Innovating company

4. Ethical, socially responsible, and sustainable company

5. Strong advertising company with more than 40 slogans and songs

6. PepsiCo as the largest part of the market share after Coca-Cola

7. PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks

weaknesses
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

6. PepsiCo is far behind Coca-Cola in the international market

financial trends
Financial Trends

Adapted from www.moneycentral.msn.com

space graph
SPACE Graph

1 2 3 4 5 6

6 5 4 3 2

1

2

3

4

5

6

strategy
Strategy

Market development is a strategy that PepsiCo should apply by expanding in countries that not already established

Use forward integration to acquire smaller companies in foreign markets to increase their market share

Product development and related diversification should also be considered while trying to produce and distribute healthier products

recommendations
Recommendations
  • In the next 3 years, PepsiCo should acquire 3 brands per year in an international marketplace
    • One of these 3 brands per year must be healthy
  • Increase production and distribution of carbonated drinks in Asian and European countries
  • PepsiCo will expand into Africa to make use of the international market they are not part of
objectives
Objectives

Spend $15 million on a healthier more eco-friendly beverage brand in an already established country

Spend $15 million on a healthier more eco-friendly snack brand in an already established country

Spend $10 million to acquire a smaller brand in Africa

Increase our revenues by 5% in 2010

Start our own environmental cause fund with $1 million

assumptions
Assumptions

Spend $40 million to acquire new brands

Spend $1 million to start an environmental cause group

Revenue increase of 5%

Decrease short-term and long-term debt by using some of our cash and cash equivalents as well as retained earnings

pepsi coke rivalry
Pepsi/Coke Rivalry

http://www.buzzfeed.com/pepsi/the-10-most-iconic-pepsi-commercials-of-all-time-1q6t

sources
Sources

"2010 Will be Changing for PepsiCo." Medill Reports Chicago. N.p., n.d. Web. 20 Apr. 2012. <news.medill.northwestern.edu/chicago/news.aspx?id=157896 >.

"Coke vs Pepsi." Coke vs Pepsi. N.p., n.d. Web. 25 Apr. 2012. <http://cokevspepsi.net/>.

" Google Image Result for http://41minds.files.wordpress.com/2011/04/bcggrowthsharematrix.png."Google. N.p., n.d. Web. 22 Apr. 2012. <http://www.google.com/imgres?hl=en&sa=X&rlz=1C1LENN_enUS472US472&biw=1366&bih=677&tbm=isch&prmd=imvnsa&tbnid=VtCOuMODso-oZM:&imgrefurl=http://41minds.com/tag/bcg-matrix/&docid=JDNK6PE50NlOOM&imgur

"Key financial ratios: Financial results - MSN Money ." Money: Personal finance, investing news & advice - MSN Money. N.p., n.d. Web. 25 Apr. 2012. <http://investing.money.msn.com/investments/key-ratios?symbol=PEP&page=TenYearSummary>.

"PEP: Summary for Pepsico, Inc. Common Stock- Yahoo! Finance." Yahoo! Finance - Business Finance, Stock Market, Quotes, News. N.p., n.d. Web. 25 Apr. 2012. <http://finance.yahoo.com/q?s=PEP>.

"Pepsi History." Sirpepsi. N.p., n.d. Web. 25 Apr. 2012. <http://www.sirpepsi.com/pepsi11.htm>.

"PepsiCo 2009 annual report." PepsiCo. N.p., n.d. Web. 19 Apr. 2012. <www.pepsico.com/Download/PEPSICO_AR.pdf>.

"PepsiCo Brands | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 24 Apr. 2012. <http://www.pepsico.com/Brands.html>.

"PepsiCo Investors | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012. <http://www.pepsico.com/Investors.html>.

"PepsiCo MORE | PepsiCo.com." PepsiCo Home | PepsiCo.com. N.p., n.d. Web. 25 Apr. 2012. <http://www.pepsico.com/Global-Sites/More.html>.

Reppo, Ilya, and Michelle Yan. "PepsiCo Valuation." Leeds-faculty Colorado. N.p., n.d. Web. 14 Apr. 2012. <leeds-faculty.colorado.edu/madigan/4820/Presentations%202010/PepsiCo%20Report.pdf>.

segment. "PepsiCo Valuation." Google. N.p., n.d. Web. 23 Apr. 2012. <http://webcache.googleusercontent.com/search?q=cache:egHCTRx43AYJ:leeds-faculty.colorado.edu/madigan/4820/Presentations%25202010/PepsiCo%2520Report.pdf+PepsiCo+net+revenue+comparative+2007-2009&hl=en&gl=us>

Steve. " Global Cola: 10 Pepsi-Cola Flavors You Can’t Get Here | WebUrbanist ." WebUrbanist | From Urban Art & 3D Graffiti to Abandoned Cities . N.p., n.d. Web. 25 Apr. 2012. <http://weburbanist.com/2010/05/02/global-cola-10-pepsi-cola-flavors-you-cant-get-here/>.