Introduction
PepsiCo is among the most popular and profitable corporations globally. It was founded in 1965, headquartered in New York, US (Jallow, 2021). PepsiCo is a global beverage and food corporation that produces and sells its goods in various countries. It majors in food, snacks, and beverages to offer stiff competition to other firms. PepsiCo’s food offerings include cereal, chips, pasta, flavored snacks, dairy goods, and cereals. The beverages produced by the company are Juices, soft drinks, sports drinks, ready-to-drink coffee and tea, and bottled water. In addition, PepsiCo owns nine of the 40 largest packaged goods trademarks in the US (Jallow, 2021). As a result, the company has a broad customer base as it sells through its stores, wholesalers, and other outlets.
Moreover, PepsiCo has a strong brand effect, diversified products, and a broad market base starting local to international. The company has three business units, namely PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), and PepsiCo International (Jallow, 2021). PAF produces various branded snacks and cereals foods such as Frito-Lay North America, Quaker Foods North America, and Latin America Foods. PAB provides different beverages under the brands Pepsi, Gatorade, and Tropicana juice drinks. It also offers ready-to-drink tea and coffee through a joint venture with Lipton and Starbucks (Jallow, 2021). Finally, PepsiCo International provides their private label snack and beverages in Europe, Asia, the Middle East, and Africa.
PepsiCo Within Its Industry
PepsiCo is one of the companies operating in the food and beverage industry. It is the largest food and beverage company in North America. In the fiscal years 2020 and 2021, PepsiCo was the most profitable food and beverage corporation (Jallow, 2021). Food and beverage processing across the continent generated more revenue for the firm. However, it is the second-largest in the entire globe after Nestle. This is an indication that PepsiCo is performing well in its industry. In the beverage sector, Coca-Cola has been the main rival of Pepsi (Sehrawat, 2019). With this stiff rivalry, the two companies have been applying several strategies to achieve a competitive advantage in the market. Therefore, PepsiCo is among the best-performing companies in the food and beverage industry.
PepsiCo’s Mission, Vision Statements, Objectives, and Strategies
Corporations are best driven by a vision and mission statement, which spell out their desired goals and the path they want to accomplish their tough and important mission. Additionally, each company follows a different path to achieve its goals (Fernández, 2019). PepsiCo ensures that its mission and vision are current and significant in the contemporary business environment. This is important because it illustrates the firm’s intense diversification and growth based on its target marketing. The vision and vision of PepsiCo motivate the corporation to develop products that suit the growing market demands of its devoted clients. As a result, a company’s corporate vision and mission statement help identify activities to fulfill the organization’s goal.
Vision Statement
The vision of PepsiCo highlights its role in the global market. As a result, a company’s corporate vision determines the organization’s growth and long-term viability. Its vision is to “be the global leader in convenient foods and beverages by winning with purpose” (PepsiCo, 2022, para 1). The statement focuses on three core areas: performance, sustainable development, and corporate social responsibility. PepsiCo’s focus, as mentioned above, as well as its strong commitment to giving back to society via social responsibility. As a result, this factor significantly influences the firm’s policies for organizational success, especially regarding the effect on stakeholders.
Mission Statement
A mission statement provides the ways to accomplish the vision through integrated and enhanced objective settings to meet an organization’s intended goals. Furthermore, a mission statement offers appropriate meaning and a focused direction on how goals might be attained within a certain timeline. For example, as PepsiCo’s website shows, the statement reads, “Create more smiles with every sip and every bite” (PepsiCo, 2022, para 2). This statement emphasizes the worldwide reach of the company’s products. It also shows the company’s aim to have the greatest possible impact on everybody, particularly direct consumers, through distinctive products. Therefore, the corporation’s mission provides a clear direction on what it intends to achieve through its products.
Objectives
PepsiCo’s primary objective is to ensure that its products meet the customers’ needs. In addition, it wants to be the greatest business partner possible for its clients. Therefore, producing products that are distinctive and of high quality helps not only the organization but also the consumers who purchase PepsiCo products (Sehrawat, 2019). In addition, the company wants to provide consumers with nutritious and delicious foods and beverages that are convenient and match their lifestyle needs. For example, one of their brand sustainability goals is eliminating added sugars, salt, and saturated fats in many of our food goods. As a result, the goal is to ensure that their most popular brands remain part of a healthy diet for their clients.
PepsiCo wants to be the most sustainable corporation across the globe. First, the company wants to protect the water supply through conservation (Khare, 2019). They argue that water is crucial in producing their products and assisting in attaining the world’s resource needs. The company is working to reduce the quantity of water used by maximizing the process of water reuse to lower pollution. Apart from water conservation, PepsiCo intends to engage in activities that protect the environment. They support the climate change agenda and work towards lowering greenhouse gas emissions by 20% by 2030 (Sehrawat, 2019). The company is also keen on reducing waste discharge to landfills, lowering food waste products by the organization, and constantly recycling and reusing their packaging to prevent environment and water pollution.
Moreover, the corporation intends to attain the objective of creating a safe and healthy working environment. It observes and values human rights through codes of conduct when handling employees, offering compensation packages, providing protective gear, and ensuring a safe working environment (Sehrawat, 2019). They also make sure that employees are treated with dignity regardless of their age, gender, and culture. For example, they want to ensure that all the staffs are satisfied with their tasks. Furthermore, PepsiCo’s corporate culture has the benefit of motivating people. The focus on intentional actions and corporate leadership gives employees’ contributions to the company meaning. Therefore, one of the corporation’s objectives is to promote a suitable working environment.
Strategies
The first strategy is achieving growth throw mergers and acquisitions. The advantages of this strategy include gaining access to skills and facilities, minimizing direct costs and overheads, and achieving organic growth (Jallow, 2021). Recently, PepsiCo completed a number of significant acquisitions, such as Mabel cookies, Dilexis biscuits, and others in the juice and dairy industries (Jallow, 2021). The strategy is a pillar of PepsiCo’s overall corporate approach. PepsiCo’s catalog today includes more than 22 brands due to aggressively following this strategy. Therefore, the strategy enables the company to grow and expand its operations across the globe.
The second strategy involves the use of strategic marketing techniques to penetrate the market and achieve a competitive advantage. For instance, this strategy boosts revenue by increasing its market share (Jallow, 2021). PepsiCo, for example, employs extensive marketing to increase client acquisition. Despite market saturation, a strategic goal connected with this rapid expansion is to cut costs and prices in order to attract more clients. Since consumers are normally price-sensitive, the tactic is working for the corporation. As a result, PepsiCo’s generic cost leadership competitive strategy compliments this aggressive expansion strategy.
PepsiCo’s third strategy is product design, which ensures that consumers’ requirements are satisfied. To attract more clients, particularly those who are health concerned, this aggressive strategy needs the manufacture of nutritious items (Jallow, 2021). For example, the company continues to develop new products or improve existing ones, such as reduced-calorie, low-salt, and reduced-saturated-fat food and beverage options. Adopting substantial research for product innovation is a strategic goal associated with this ambitious expansion plan (Jallow, 2021). In addition, PepsiCo’s generic competitive approach of broad differentiation intensive strategy provides unique or healthy goods to drive sales and expand the organization.
SWOT Analysis
Table 1: Analysis of Internal and External Factors
Conclusion
PepsiCo is the world’s second-largest corporation in the food and beverage market. This is based on the company’s ability to leverage its strengths in order to grow, reduce its weaknesses and threats as well as make use of the opportunities. Currently, the firm has a strong brand which is attributed to its quality products and sustainable operations. Additionally, the vision and mission statement of the company provides guidelines and directions for stakeholders, especially its employees. For example, the company intends to make everyone happy through its products and meeting its purpose. In addition, the strategies adopted by PepsiCo are geared towards achieving a competitive advantage. Therefore, based on the internal and external environment analysis, the company has the potential to perform effectively in its industry.
References
Fernández, P. (2019). Valuation of brands and intellectual capital. SSRN.
Jallow, D. (2021). A Strategic Case Study on PepsiCo. Available at SSRN 3828353.
Keller, S., & Schaninger, B. (2019). Beyond performance 2.0: A proven approach to leading large-scale change. John Wiley & Sons.
Khare, A. K. (2019). Green Marketing Concept and Its Impact on Market. Think India Journal, 22(35), 1199-1205.
PepsiCo. (2022). Mission and Vision. PepsiCo, Inc. Official Website.
Sehrawat, S. (2019). PepsiCo’s sustainable strategies. Journal of Management, 6(2). Web.