PepsiCo: Vision Statement, Mission Statement, And Mission

Pepsi: Vision Statement, Mission Statement, And PepsiCo Mission

Vision Statement

“Be the global leader in convenient foods and beverages by winning with purpose.”

To advance this vision, the aim is on becoming “Faster, Stronger, and Better.”

• Faster: being more consumer-centric, broadening their portfolios through international expansion. and accelerating topline growth (increase revenue and gross sales)
• Stronger: Drive savings through holistic cost management, Develop and scale core capabilities globally through technology
• Better: do good for the planet and communities by building a more sustainable food system.

Firstly, the vision statement emphasizes customer satisfaction, growth, and profitability. This is the primary focus of any business and is necessary for long-term survival. Secondly, PepsiCo hopes to cut costs and utilize technology to surpass the competition. Lastly, they hope to enhance their corporate and brand image by integrating sustainability (environmental and social responsibility) into their business activities.

Mission Statement

“Create more smiles with every sip and every bite.“

PepsiCo mission

• For consumers: create joyful moments through their products and unique brand experiences. (consumer-centrism)
• For customers: drive innovation, and deliver accelerated growth.
• For associates and communities: create opportunities to work, learn and build successful careers and offer a diverse and inclusive workplace.
• For our planet: conserve resources and foster a more sustainable planet.
• For shareholders: deliver sustainable top-tier TSR (total shareholder return) and embrace best-in-class corporate governance.

PepsiCo’s mission statement focuses on customer and employee satisfaction, sustainability, growth, and profitability. These are well-aligned and correspond to the goals in the firm’s vision statement. PepsiCo has strong ideas about what they hope to accomplish in the future. However, they don’t provide detail on what strategy they will implement or specific steps they will take to attain these goals. It seems they’ve selected a destination but haven’t mapped out ways to get there.

Structure of Internal Operations

Product line divisions- PepsiCo’s organizational structure “is divided into six product line divisions based on geographic location and product lines”. The division of labor is highly specialized. There are three divisions covering North America and three covering other geographic regions around the globe. Each division is led by its own divisional CEO who reports to the Head CEO and Chairman of the entire PepsiCo corporation, Ramon Laguarta. (Harness, J. (2019)

• PepsiCo lists its product line divisions as follows:
• PepsiCo Beverages North America (PBNA): manages all North American beverage offerings.
• Frito-Lay North America (FLNA): manages all Frito-Lay foods available in North America
• Quaker Foods North America (QFNA): manages all Quaker Foods products available in North America.
• Latin America. (LATAM): manages international offerings from Pepsi, Frito-Lay, and Quaker as well as local brands.
• Europe and Sub-Saharan Africa (ESSA): manages international offerings from Pepsi, Frito-Lay, and Quaker as well as local brands
• Asia, the Middle East, and North Africa (AMENA): manages international offerings from Pepsi, Frito-Lay, and Quaker as well as local brands.

Functional Corporate Groups- Besides the Head CEO and divisional CEOs, PepsiCo’s authority is also shared with a board of directors and a top management/leadership team made up of 18 people. This management team handles global day-to-day operations and basic business functions from corporate offices. There are 10 functional corporate groups divided by function. Each one is headed by their own executive vice president or senior vice president. These different functional groups have a narrow span of control and monitor and govern through a top-down structure. This Global Hierarchy ensures the company’s policies, standards, and strategies are properly implemented across the entire organization with little deviation. (Harness, J. (2019)

These functional groups are:

• Operations
• Finance
• Government Affairs and Legal
• Accounting
• Research and Development.
• Strategic planning and new ventures
• Communications.
• Human Resources
• IT support
• eCommerce
• Assessment

Pros

The corporation is mechanistic and formal. The dual structure of product divisions and corporate divisions is intended to promote internal efficiency. The functional corporate groups are an advantage as they ensure global corporate control. Each department and division is specialized so they can focus on that one specific area of the business.

Division of labor is one advantage of PepsiCo. By utilizing a divisional product line structure they are able to focus on differences in customer tastes and needs in each of their regional markets. The specialization of separate geographic divisions allows PepsiCo to respond to different market variations around the world. This variety will help in thier mission to become more consumer-centric and provide unique brand experiences.

Cons

A disadvantage in this organizational structure is that it might discourage people from collaborating or communicating across the different divisions. Since the divisions are so separate they may become competitive or territorial with each other and protective about their own division. Ideas and information may be kept more division-centric rather than collaborating with other divisions in the company.

Being differentiated requires much more cooperation and coordination between departments/divisions and requires strong, decisive leadership. This company requires a high degree of integration among the different units. This process can lead to slower decision-making, slower response to competition, and less innovation.