PepsiCo, Inc. is among the most successful consumer products companies in the world, with 1999 revenues of over $20 billion and 116,000 employees. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana Products, the largest marketer and producer of branded juice. PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories. Some of PepsiCo's brand names are 100 years old, but the corporation is relatively young. PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. PepsiCo's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of their people. Their overriding objective is to increase the value of their shareholders' investment through integrated operating, investing and financing activities. Their strategy is to concentrate their resources on growing their businesses, both through internal growth and carefully selected acquisitions. Their strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's success reflects their continuing commitment to growth and a focus on those businesses where they can drive their own growth and create opportunities. Strategic Focus and Plan
PepsiCo's overall mission is to increase the value of their shareholders' investment. They do this through sales growth, cost controls and wise investment of resources. They believe their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity.
• Sharply focus their financial and management resources on their core businesses: restaurant management on restaurants, packaged goods management on beverages and snacks. • Ruthlessly prioritize to be sure they employ their greatest sustaining efforts on the biggest opportunities within their core businesses. In beverages, for example, the lions share of their investment dollars and management attention will go to high-potential markets where no company dominates like China, India and Russia and to markets where they lead or are a strong number two. • Build their success upon their key functional strengths: 1. day-to-day management of operationally intensive businesses; 2. manufacturing, selling and distribution infrastructure development; and marketing and new product R&D.
Core Competency and Sustainable Competitive Advantage
In terms of core competency, PepsiCo seeks to achieve a unique ability to: (1) Provide a distinctive, high-quality one-calorie soft drink and to provide a high-quality citrus soft drink using Pepsi Company’s distinct ingredients to appeal and to excite contemporary tastes for these products and (2) Deliver these soft drinks to the customer using effective manufacturing and distribution systems that maintain PepsiCo’s quality standards. To translate these core competencies into a sustainable competitive advantage, Pepsi Co. works closely with key suppliers and distributors to build the relationships and alliances necessary to satisfy the high taste standards of our customers.
is a drink distributed and manufactured by PepsiCo. The main formula was invented in Knoxville, Tennessee, named and first marketed in Knoxville and Johnson City, TN in the 40s, then by the Minge family in Fayetteville, North Carolina and...