Cheetos Pepsico Internal Analysis

Topics: PepsiCo, Frito-Lay, Lay's Pages: 10 (2419 words) Published: February 1, 2011

1. Introduction

Our study is based on PepsiCo Iberia, an international company that heads the leadership in the food and beverages sector. PepsiCo is a group of companies that operates in more than 200 countries and has sells valued on more than 35 billions of dollars. We will base our analysis on one of these companies that make up PepsiCo called FritoLay. Our main idea is to add a free wet napkin to all Cheetos plastic bags to allow our customers to wash their hands after eating our potatoes. Before introducing these new feature we need to conduct a marketing plan.

2. Internal analysis

2.1. Mission, values and corporate philosophy

At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business. 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. Our values and philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make. We are committed to delivering sustained growth through empowered people acting responsibly and building trust. What means:

* Sustained Growth: It is a fundamental fact to motivating and measuring our success. This growth stimulates innovation, places a value on results and helps us understand whether today’s actions will contribute to our future. * Empowered People: We have the freedom to act and think in ways that we feel will get the job done while adhering to processes that ensure being mindful of company needs beyond our own needs. * Responsibility and Trust: These principles form the foundation for healthy growth. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together. We uphold our commitment with six guiding principles:

1. Care for our customers, our consumers and the world we live in. 2. Sell only products we can be proud of.
3. Speak with truth and candor.
4. Balance short term and long term.
5. Win with diversity and inclusion.
6. Respect others and succeed together.

“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”

2.2. Company’s background

* PepsiCo was founded by Donald M.Kendall, Chief Executive Officer of Pepi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay.

* Pepsi-Cola was created in the late 1890s by Caleb Badham, a pharmacist. * Frito-Lay was founded 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.

* 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). * Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961).

* PepsiCo Iberia:
* Year 1965: Pet Inc. and Luis Matutano found Matutano & Pet Milk S.A. * Year 1960: Matutano &PetiMilk acquire Patatas Rick. * Year 1971: Pepsico Inc acquires Matutano&PetMilk S.A * Year 1975: The first Cheetos products is created.

* Year 1999: PepsiCo acquire Alvalle, a leader brand of Gazpacho. * Year 2003: Creation of a union of the Iberian Market...
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