Mgt521 Pepsico Business Analysis I Essay examples

1661 Words Dec 8th, 2012 7 Pages
PepsiCo Business Analysis: Part I
Management/MGT-521
Dr. Olivia Herriford

PepsiCo Business Analysis: Part I PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $65 billion and more than 285,000 employees. The company headquarters are in Purchase, New York. PepsiCo products can be found in nearly 200 countries around the globe. The company has 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD),
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Reliance on developed markets, especially the U.S. Those markets are limited, mature, and grow slowly (Fortune. June 11, 2012). Overdependence on huge national retailers, such as Wal-Mart, which alone represents 11% of PepsiCo’s total business. Wal-Mart is PepsiCo’s largest customer. In international market PepsiCo is far behind from competitors like Coca-Cola and Nestle, which had been global for decades. Less efficiency and low productivity.
Opportunities
The company ins planning cut 8,700 jobs (about 3% of the total), consolidating facilies, and finding other efficiencies, saving about $1.5 billion over the next tree years (Fortune, June 11, 2012). Improvements in the company R & D lab are giving results: a new mid-calorie cola (Pepsi Next), a way to make potato chips taste just as salty with less sodium, a joint venture with Geman’s Müller Group developing a yogurt technology, and the lab is working in an all natural zero-calorie sweetener (Fortune, June 11, 2012). Big opportunity by exploit on US market because American consume more snacks during the day, and changing trends in developing markets, for instance growing of modern retail formats and females are entering the workplace (Bobby, S. 2012, June 27). PepsiCo will increase its advertising and marketing by $500 millions to $600 millions in this year, or about 15% focusing on handful big brands like Pepsi and Doritos in North America (Fortune, June 11, 2012).

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