Pepsico Cohesion Case Study Cohesion Case Study is to be done in APA Format - Ti
ID: 450330 • Letter: P
Question
Pepsico Cohesion Case Study Cohesion Case Study is to be done in APA Format - Times New Roman 12 Font, double-spaced, cover page and reference page. The paper is due on April 25, 2016. Students must make an effort to relate the papers to the course material. Students will be graded on clarity of written communication (organization and language use), general APA compliance, critical thinking, problem-solving, and application of course materials. Please make sure to cover all this subtittle below. Outline/Headings for Paper: Cover Page Background/Overview of Pepsico
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Ethics
Social Responsibility
Environmental Sustainability
Discussion/Findings Conclusion References
Explanation / Answer
PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi-Cola, was president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are:
Pepsi-Cola Company: Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948).
PepsiCo was formed in 1965 with the merger of Pepsi-Cola Company and Frito-Lay, Inc. At that time, Pepsi-Cola Company was manufacturing Pepsi-Cola, Diet Pepsi, and Mountain Dew. Frito-Lay’s products included Fritos corn chips, Lay’s potato chips, Cheetos cheese flavored snacks, Ruffles potato chips, and Rold Gold pretzels. PepsiCo grew bigger with the 1998 acquisition of Tropicana and the 2001 merger with Quaker Oats.
The combination of these companies made PepsiCo a strong diversified consumer staples firm.
Strategy Formulation:
PepsiCo's corporate strategy is mainly comprised of the four types of initiatives which they considered for their growth which are the following:
Corporate strategy is concerned with broad decisions about the whole organization's scope and direction. Basically, it considers the changes that should be made for growth and the strategies for achieving it. There are basically three components of corporate level strategy:
1. Growth or Directional strategy
2. Portfolio strategy
3. Parenting strategy
Strategy Evaluation:
Just before the start of the twentieth century would allow pharmacists as a means of raising soda indigestion (Martin, 1962). Since then, the soda became a delight for young and old. An individual who has followed soda to survive for over a hundred years is Pepsi. Pepsi has become a global product that many people around the world eat. Pepsi has been based on the finding of new markets, especially in foreign countries. However, Coca-Cola has been more successful in foreign territory. For this reason, how could Pepsi rival Coca-Cola in sales? Using a SWOT analysis is a good way to analyze what Pepsi's strengths, weaknesses, advantages, disadvantages, and all are potential threats. Another way to analyze the position of Pepsi against Coca-Cola is to evaluate how the management team is designed. How does the people of Pepsi in the company and others in other countries is the key to whether Pepsi has an advantage over Coca-Cola.
A force that Pepsi is that they are a mark of strong base. Pepsi has been around for over a hundred years and are considered a trusted company. Over the years, Pepsi has continued to search, because it gave high priority to the implementation of value to consumers. They sent this via close attention to your marketing efforts. Thanks to television commercials alone Pepsi continues to show the world that have a high priority on customer preferences and tastes. This is particularly relevant to the current trend that Americans have on their health. As a result Pepsi has expanded its product range with products such as Pepsi and Diet Pepsi caffeine free. They have also developed a new range of water products for the health conscious (Pepsi Story, 2010). Includes Aquafina water, sparkling flavored to appeal to those who do not like the taste of water.
Recognizing weaknesses in possession of Pepsi is an important way to positively critique of the strengths. For example, because of the health craze is moving away from consumer products firm. There have been many claims that even diet sodas are bad for health and promotes obesity. team leader Pepsi brainstorming how to find a way to fight these ideas change with the creation of new and innovative ways to go with the changing times. As a result, they invented the idea of ​​Aquafina. And they continue to contribute their ideas they come up with to make choices, such as by offering Aquafina flavored water. E 'approved and have the ability to accept failure, it is important to popular belief. For example, it became known that many of the bottled water sold in stores and got the tap. Pepsi made the recognition and stated that they had to change the references.
Ethics:
PepsiCo has been recognized for translating its policies on governance and ethics into action.
And we were honored for having the Best Governance, Risk and Compliance Program at a Large-Cap Company at the New York Stock Exchange Governance Services’ Governance, Risk & Compliance Leadership Awards.
In 2013, PepsiCo was recognized by Corporate Secretary magazine as having the Best Overall Governance, Compliance and Ethics Program.
At PepsiCo, we believe that acting ethically is not only the right thing to do, but the right thing to do for our business. Our CEO and senior leaders lead by example and set a great tone regarding the importance of ethics. By establishing Performance with Purpose as a guiding vision, our leaders have set the course for PepsiCo to deliver sustainable financial performance through ethical business practices. At PepsiCo, we take pride in performing well and we like to win. But, a wise person once said, “if you cheat and win, you’re not winning, you’re cheating.” So, to ensure PepsiCo wins over the long-term, it’s critical that our near-term victories are achieved the right way.
Social Responsibility:
PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $66 billion in net revenue in 2014, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose – our vision to deliver financial performance over the long term by integrating sustainability into its business strategy, leaving a positive imprint on society and the environment. We do this in part by offering a wide range of products; increasing the number of our nutritious foods and beverages; reducing our environmental impacts; and supporting our employees and the communities where we do business; all of which will help position the company for long-term sustainable growth.
Environmental Sustainability :
Environmental Sustainability means finding innovative ways to cut costs and minimize our impact on the environment through energy and water conservation as well as reduced use of packaging material.
PepsiCo anticipated the need to take environmental stewardship to a whole new level at the start of the new millennium, recognizing that environmental sustainability was becoming a core component of sustainable performance.
We began to put in place the systems, processes and metrics needed to drive continuous improvement in energy and water conservation as well as greenhouse gas, packaging and waste reduction. We also advanced innovations in packaging and sustainable agriculture, and improved performance in overall productivity and plant efficiency.
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