Assignment 3: Final Project For this section of the final project

Proposal of Final Project

Shannon Rincon

South University

MBA 6012 – Operations and Supply Management

Professor Lyle Cady

January 17, 2015

PEPSICO INC. – PRESENTATION

1. About Company

PepsiCo Inc. is an American global food and beverage corporation from New York, USA, incorporated in the year 1965. Along with manufacturing it does marketing and distribution of the products made. Pepsico is the leading beverage and food business on the parameters of Net Revenue.

2. Product line

The product mix offered is consist approx 60% of food and rest belongs to beverages. Company’s existing product stripe includes several brands including brands of companies those were taken over by the Pepsico like :- Gatorade, Mountain Dew, Pepsi, Diet pepsi, 7 Up, Tropicana beverages, Doritos tortilla chips, Lipton teas, Quaker foods and snaks, Walkers potato crisps, Cheetos, Mirinda, Aquafina bottled water, Ruffles potato chips, Pepsi Max, potato chips by Lay, Sierra Mist, Tostitos tortilla chips etc.

3. Why PepsiCo?

Below reasons could be aligned for the selection of PEPSICO for the course of analysis:

a. PepsiCo is always looking into the future perceptives, trying to make the pepsico more profitable and suiting to its shareholders

b. Proactive and Progressive : According to New York times and many other critics considered PepsiCo as most proactive and progressive.

c. Extensive Distribution channel – Company’s products are served in more than 200 countries on more than 10 million stores

d. Successful marketing and advertising campaign : company’s strategy is not only limited to Billboards, Banners & Stickers on Busses & Trucks, but also includes advertisement with world class celebrities, advertisement on social media, E-advertisement and others like collect & win advertisement.

e. Low Pricing : Low pricing facilitates many buyers who can not afford highly priced product and they have to compromise at the same with low quality product, company is given that product mix for that particular cadre of society with maintained quality.

f. Bottled water consumption growth : Consumption of bottled water is expected to grow in all over the world, would be optimistic point for the company.

g. Increasing demand for healthy food and beverage : Due to many programs to fight with fatness, demands for healthy food & beverages has significantly increased.

h. World’s second largest food and beverage business company

i. Increasing investments in iconic global brands, running many innovative agendas and launching new products like Pepsi Next

j. Huge foreign currency inflow because 50% of net revenue comes from Canada, UK, Russia, Brazil and Mexico.

1. Sustainability and Environment :

a. Performance sustainability : Strive to deliver superior long-term fi nancial performance and sustained shareholder value.

b. Human sustainability : Continue to provide clear nutrition info on the products, & market them suitably to end consumers, including children, in line with global policies and accepted worldwide standards. Continue to purify food and beverage choices to meet changing consumer needs by reducing sodium, saturated fats and added sugars, and emergent a broader portfolio of product choices.

c. Environment sustainability : Help protect and conserve global supplies of natural resource like water, especially in areas where water shortage is there, & provide access to safe natural resource water. Innovate packaging to make it increasingly sustainable, minimizing its impact on the environment. Work to remove concrete waste to landfills from production facilities. Continue to support sustainable crop growing by mounting best practices with growers and suppliers.

2. Corporate Strategy :

a. Marketing :- In past year company has introduced so many marketing campaigns like Blind testing, redesigning of cans of beverages, introduced new logos, production of daily shows on television or youtube like pop culture, internet viral videos and famous person gossips, playing with people so many games and contests as if like collect and win, provided sponsorship to various sports team including international cricket teams and brand promotions.

b. Finance : Along with collecting maximum revenue from core activity business and company is listed on New York stock exchange and also on various other stock exchanges like Tokyo, Amsterdam etc so that shareholders can invest more in the company and by collecting those investments company could grow more and get strength on the parameters on finance. Currently company has more than 55 millions shareholders all over the world.

c. Human Resource : Pepsi is always strive to care for the employees working with and consumers as well. Systems and policies made for the HR (Human resource) are favorable for the employees to provide healthy and comfortable work environment, so that the growth of the company could not be compromised.Create a safe, healthy, diverse and inclusive workplace that reflects the global communities in which they operate