Impacts of Globalisation on Pepsico

Topics: PepsiCo, Coca-Cola, Gatorade Pages: 11 (3847 words) Published: April 18, 2012
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world’s fifth-largest food and Beverage Company. Today PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $60 billion and over 285,000 employees. With headquarters in Purchase, New York, the company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, Quaker Foods North America, Pepsi-Cola UK, Walkers snack Foods Limited and Pete & Johnny Plc.

Their main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - make hundreds of nourishing, tasty foods and drinks such as Aquafina, Aunt Jemima, Cap'n Crunch, Cheetos, Cracker Jack, Diet Pepsi, Doritos, Frito-Lay, Gatorade, Life, Mountain Dew, Pepsi, Propel, Quaker, Rice-A-Roni, Rold Gold, Ruffles, 7UP, Sierra Mist, SoBe, SunChips, Tostitos and Tropicana that are consumed by consumers in more than 200 countries. PepsiCo's people are united by their unique commitment to sustainable growth, called Performance with Purpose. By dedicating themselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing their environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to their communities worldwide.

The term "globalisation" is frequently used but seldom defined. It refers to the rapid increase in the share of economic activity taking place across national boundaries. This goes beyond just the international trade in goods and includes the way those goods are produced, the delivery and sale of services, and the movement of capital. Globalisation is the result of a number of interrelated developments including:

* The growth and relative importance of foreign direct investment and multinational enterprises; * The internationalisation of financial markets;
* The continuing development of communication and transport technology; * Deregulation and liberalisation;
* Privatisation of public sector services.

It has many definitions and there is many perspectives to it and is a difficult term to define and is easier to understand through examples of how it works. It can be noted that the global in globalisation demonstrates how our lives are intertwined with people on the other side of the world via the food we consume, the clothing we buy, the music we listen to, the information we get and the ideas we hold. This interconnectedness amongst humans on the planet is sometimes also referred to as the ‘global village’ where the barriers of national and international boundaries become less relevant and the world, figuratively, a smaller place. Below are varying opinions on globalisation, showing the diversity of opinions within the debate:

‘Globalization is a fact of life. But I believe we have underestimated its fragility. The problem is this. The spread of markets outpaces the ability of societies and their political systems to adjust to them, let alone to guide the course they take. History teaches us that such an imbalance between the economic, social and political realms can never be sustained for very long.’ Kofi Annan, Secretary-General of the United Nations

‘What are doing, in the name of globalisation, to the poor is brutal and unforgivable. This is especially evident in India as we witness the unfolding disasters of globalisation, especially in food and agriculture.’ Dr Vandana Shiva, environmentalist

‘Globalization is about worldwide economic activity – about open markets, competition and the free flow of goods, services, capital and knowledge. Consumers are its principal beneficiary. Its benefits in terms of faster growth, quicker access to new technology, cheaper imports and greater competition are available for all....
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