Pepsico Case Study

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Case Details:| -------------------------------------------------
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Case Code| :| BECG122| |
Case Length| :| 17 Pages| |
Period| :| 2006-2011| |
Organization| :| PepsiCo| |
Pub Date| :| 2012| |
Teaching Note| :| Available| |
Countries| :| Global| |
Industry| :| Food and Beverages| |
* This case was a Runner-up in the 2012 oikos Global Case Writing Competition (Corporate Sustainability track), organized by oikos International, Switzerland. -------------------------------------------------

Abstract:
This case was a Runner-up in the 2012 oikos Global Case Writing Competition (Corporate Sustainability track). It is about the sustainable development initiatives of one of the world's leading food and beverage companies, PepsiCo. 

Faced with various criticisms on the social and environmental fronts, PepsiCo adopted the ‘Performance with Purpose’ strategy in 2009 under the leadership of its CEO Indra Nooyi (Nooyi). This strategy was based upon the philosophy that the company’s financial performance should go hand in hand with its responsibilities toward society and the environment.| | The new sustainable development program contained 47 commitments that PepsiCo made toward society and these were divided into four broad areas: Performance, Human Sustainability, Environmental Sustainability, and Talent Sustainability. Despite some progress made by the company in these fronts, since mid-2011, Nooyi had come under fire from key stakeholders such as shareholders and bottlers who contended that her focus on 'Performance with Purpose' had come at the cost of positioning of the company's products and had hurt sales. They felt that its archrival, the Coca Cola Company had gained the upper hand during Nooyi's tenure. This case is meant for MBA/MS-level students as part of the Business Ethics/Corporate Social Responsibility curriculum. It can also be used in a core strategy curriculum. -------------------------------------------------

Issues:
» Understand the main issues and challenges related to corporate social responsibility for a global company. » Study the sustainable development strategy adopted by PepsiCo. » Understand the various challenges faced by organizations regarding the impact of their operations on the society and environment. » Appreciate the importance of a company's top management in guiding the company to implement key strategies like sustainable development. » Understand the reasons for the criticism of Nooyi and her 'Performance with Purpose' strategy. » Explore the strategies which can be adopted by PepsiCo to improve its sustainability record. -------------------------------------------------

Contents:
 | Page No.|
Introduction| 1|
Company Background| 2|
Controversies Surrounding Pepsico| 3|
Sustainable Development Practices of Pepsico| 4|
Looking Ahead| 9|
Exhibits| 11|
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Keywords:
Sustainable Development; 'Performance with Purpose' strategy; Business Ethics; Corporate Social Responsibility; Operating performance; Human Sustainability -------------------------------------------------

Company Background
The origins of Pepsi date back to the late 19th century when a young pharmacist Caleb Bradham (Bradham) started selling a refreshing drink called ‘Brad’s Drink’ in his pharmacy. The drink was later renamed Pepsi-Cola after the digestive enzyme pepsin3 used in the recipe. 

The sales of Pepsi soon started to increase. This convinced Bradham to form a company called the Pepsi-Cola Company. Bradham got an official patent for the drink in 1903 and then started to sell it in bottles. The business showed spectacular growth and Bradham sold 7,968 gallons of the drink in the year 1903.| | He later started to award franchises to grow his business and the Pepsi-Cola Company's franchisees spread to 24 states of the US. The strong...
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