Pepsi: Business Analysis
In 1893, Pepsi was first made by a pharmacist called Caleb Bradham in New Bern, North Carolina. He made it in his drugstore when he found that it gets sold very quickly. Before it was called Pepsi-Cola in 1898, he named it Brad’s drink. He started selling Pepsi at a repository instead of his dispensary in 1903. He started his own corporation “Pepsi-Cola” for years where he faced fluctuations, successes, and failures. In 1965, PepsiCo was created by integrating Frito-Lay with Brad’s Pepsi-Cola company, and it became a multinational nibble, drink, and food corporation.
For PepsiCo to keep its position with other companies, its operation administration must deliver business needs in the ten planned decision districts which are:
1-Design of Products and Services.
3-Process and Size design.
5-Layout design and plan.
6-Job design and human assets.
7-Supply chain administration.
1-The current CEO and chairman is Ramon Laguarta. Ramon is the sixth CEO in the history of PepsiCo. Laguarta was working at a candy company named Chupa Chups before joining PepsiCo in January 1996. He was working in the European business of the company. In September 2017, he was named the president of PepsiCo. On August 6, 2018, the day the previous CEO Indra Nooyi announced she is leaving her position, they voted for Laguarta without him knowing to be the next CEO for PepsiCo. In October, he took her place, while in February 2019, he became the chairman. Laguarta’s three main goals since he became a CEO are to become stronger, better, and increase the rate of organic revenue growth of the company. Laguarta is a democratic CEO, and this appears in his leadership behaviors which include: voice opinions fearlessly, celebrate successes, focus to get things done faster, as mentioned in his biography in PepsiCo’s website.
6-The main growth strategy used by PepsiCo is the concentration strategy which is focusing on a core business line and growing the number of items sold or served in the markets. Trying to be successful in one single industry which is soft drinks is a way to secure its growth.
- Strengths: Global presence: items are marked in over 200 countries, resulting in $43 billion in annual net sales.
Good operating efficiency and capacity to disturbance: class-leading delivery systems implemented in-region, meeting specific needs.
- Weakness: Coca-Cola has a greater share of the intake of carbonated soft drinks because they give their drink to more fast-food restaurants.
Reliance: Pepsi depends on bottling companies as they don’t own any bottling companies, unlike Coca-Cola.
- Opportunities: Brand Line Expansion: PepsiCo could add more items to boost market share.
Attempting to enter more developing countries: PepsiCola can get more money and increase their income from entering the markets of some developing countries.
- Threats: Change in the policy environment: differences in food and drug regulations, ingredient export, and import regulations can change the environment in which PepsiCo operates and can affect the outcome and raise prices and liabilities.
Trade merger: Market competition can impact PepsiCo’s business.
8- The Value Chain is the whole sequence of corporate work activities that add value to every stride starting with the manufacturing of raw materials and finishing with the final product in the hands of end-users. There are 4 possible obstacles to successful value chain management which are:
- People: Not being inspired to do high quality work/Lack of steadfast dedication to doing whatever it requires.
- Organizational barriers: Refusal or inability to share data/Willingness to smash the current system.
- Cultural attitudes: All along the chain there needs to be mutual respect and transparency about the behavior of each member.
- Required capabilities: The absence of or inability to build the required and necessary skills in managing the value chain puts businesses at risk of loss.
9-The main purpose of control is to ensure that the activities are completed in ways that lead to organizational goals being achieved. The best source of information for measuring the company’s accomplishment is the oral reports as it allows for verbal and nonverbal feedback. It’s also a fast way to get the needed facts, and it allows you to ask many people.