PepsiCo is a multinational food and beverage company with a diverse range of products, including well-known brands such as Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, and Quaker. The company has a strong global presence, with operations in over 200 countries and territories. However, like any other large corporation, PepsiCo faces a number of strategic issues that it must address in order to continue its growth and success.
One major strategic issue for PepsiCo is the changing consumer preferences towards healthier options. In recent years, there has been a trend towards healthier lifestyles and a greater focus on the nutritional value of the food and beverages that people consume. This has led to an increase in demand for healthier options, such as low-calorie, low-sugar, and organic products. PepsiCo has responded to this trend by introducing a number of healthier options, such as its "Smart Spot" symbol that indicates healthier choices within its product lines. However, it remains to be seen whether these efforts will be sufficient to address the changing preferences of consumers.
Another strategic issue for PepsiCo is the intense competition in the food and beverage industry. The company operates in a highly competitive market, with many other large and well-established players, such as Coca-Cola, Nestle, and Unilever. In order to maintain its market share and stay ahead of the competition, PepsiCo must continuously innovate and adapt to changing market conditions. This includes investing in new technologies, introducing new products, and improving the efficiency of its operations.
A third strategic issue for PepsiCo is the increasing pressure to reduce the environmental impact of its operations. As concerns about climate change and environmental sustainability continue to grow, there is increasing pressure on companies to reduce their carbon footprint and minimize their impact on the environment. This includes reducing water usage, cutting down on waste, and using more sustainable materials in their packaging. PepsiCo has made efforts in this area, such as its goal to become water neutral by 2025, but it will need to continue to make progress in order to meet the expectations of consumers and stakeholders.
In conclusion, PepsiCo is a successful and influential company with a global presence. However, it must continue to address a number of strategic issues in order to remain competitive and sustain its growth. These issues include changing consumer preferences towards healthier options, intense competition in the industry, and the increasing pressure to reduce its environmental impact. By addressing these challenges and adapting to changing market conditions, PepsiCo can continue to be a leader in the food and beverage industry.
GRI Material Issues and Boundaries
The company has an opportunity to increase development and research activities. While it has already invested a lot in these two major areas, there are more opportunities before it. Do you have responsibilities that may hinder you from turning in your assignment on time? Resolving the issue will change societal and consumer perception. It has successfully developed a strong market brand that puts its products at a vantage position against that of the rival products. High level of net revenue and income allows Pepsico to spend more on things like marketing and Research and Development. PepsiCo is one of the largest food and beverage companies.
The need of the millennial generation of low product rates and fast delivery has affected the change of PepsiCo product delivery mindset. If receivables are not collected reasonably in accordance with their terms, management should rethink its collection policy. However, the human factor remains the principal weakness of the PepsiCo Company. Mode of Expansion: Pepsi uses franchise system for international expansion. Therefore, the primary strategy the company applies is the cost leadership strategy, which helps it to become a low-cost producer among similar companies Ferguson, 2017. Activity ratios include the inventory turnover rate, receivable collection period, fixed asset turnover ratio, and total asset turnover ratio. The company was able to maintain its Gross Profit and Operating Profit margins at the same levels.
Our academic writers will tackle all your computer science assignments and deliver them on time. Between 1991 and 1996 PepsiCo aggressively expanded its overseas bottling operations. Development of a food and beverage department in most of the hotels supplements the income generated from room profits as well as builds the image of the hotel. The profit ratio dropped significantly in the year 2015 when compared against that of 2014. Use discount We are sure you know this company and its products.
PepsiCo's Strategy Implementation and Strategic Controls
The market issue elaborates how the new entrants are a threat to the company. The company has failed to come up with innovative ways of developing their products that can enable them reduce their water usage. Structure, Systems, People, and Culture at PepsiCo The principal resources of the company primarily refer to its personnel and thereby are connected to the corporate culture of the organization. Challenges Faced by PepsiCo According to Bachmeier 2013 , in many cases the issues, which are evident within an organization, are symptoms of more serious problems that must be addressed to enable a firm to operate successfully in the market. We also engage with suppliers through programs such as the Sustainable Farming Program, which champions and advances positive social, environmental, and economic outcomes among the farmers from which we directly source crops.
Several factors influence nature of the market and the growth of PepsiCo. The new aspirations of its customers for health are the principal factor that the company considers while offering its latest products Pratar, 2018. How we engage We engage with our consumers through a number of channels that help us to understand their needs and interests, as well as share information about our product portfolio and company. The industry is Global and opportunities exist throughout the world. Technological The 21 st century has witnessed a tremendous upsurge in technology. External environment Macro Environment Pestle is an international company brand that operates globally hence faces a lot of challenges. You determine when you get the paper by setting the deadline when Will anyone find out that I used your services? Mega mergers and acquisitions: Case studies from key industries.
PepsiCo Ethical Issues: 🧃Awesome PepsiCo Case Study Ideas for Students
Health experts have also raised concerns about the possible health consequences related to regular use of most of the cola products sold by this company. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. In the present-day situation, the PepsiCo Company needs to align its strategic choices to the selected generic strategy or strategies in the case of the use of multiple options and develop innovative products suitable for the modern customers. How we engage PepsiCo engages with governments and other public policy officials both directly and through various groups. John Leonard sued PepsiCo, Inc. One is expected to take significant amounts of water after taking these cola products to neutralize their impact on the body. Despite being a strong second opinion against Coca Cola, Pepsi has become the largest selling soft drink in the world and is liked by people of all ages.
There are several factors apart from competition that have caused this shift in power. The recession saw a decline in the level of employment worldwide and due to that a fall in the spending power of the people. While supply chain issues impaired results the impact is negligible compared to what we've seen elsewhere in the market. The more autonomous the employees will be, the more flexible their decision-making process will become. Some of these substitute products are propositioned as more healthy alternatives than the cola products. The local brands are also in the market to compete Pepsi.
Different set of acts mandated to govern growth of businesses in different countries influence the growth of PepsiCo. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Pepsi is also investing resources to compliance. However, it is prudent to note that PepsiCo has purchased a huge product size to the market that comprises of numerous low calorie and healthy products. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
PepsiCo Business Strategy and Competitive Advantage
Opportunities Besides the weaknesses, PepsiCo has an opportunity to advance the health allegations of the products. Liquid Refreshment Beverage Market Retail Dollars and Volume Both Grew in 2017, Reports Beverage Marketing Corporation. Inability to Tackle Health Concerns It is also important to look at the health concerns that have been raised by the medical experts regarding some of the products of this company. In order to combat the aforementioned trends, food and beverage processors will be pressured to provide products tailored to older and single-person households to minimize the natural appeal of away-from-home eateries. In the 70s, the company started using plastic bottles that were cheaper and lighter than glass.
These issues may have a significant impact on the ability of PepsiCo to remain sustainable in its global operations. As scarcity of water continues to become a serious problem in some of these regions, this company may face serious challenges in the production of the beverage products. We are also a member of numerous industry and trade groups and partner with various non-profit organizations and non-governmental organizations. Of interest should be to address the main concerns such as excessive sugar contents and the preservatives. Maintaining strong relationships with customers helps us to bring our products into the hands of consumers, delivering more smiles and strengthening our business. For instance, lack of employment in the consumers reduces the ability of purchasing beverages; which are the main products of PepsiCo. The primary strength of the PepsiCo Company is its strong marketing team, whose efforts boost the ability of the company to create the required image of the innovative products.