PepsiCo Corporation
A Successful Company
Table of Contents
Primary Business Practices............................................................................................................................ 3
Strategy ..................................................................................................................................................... 3
Execution................................................................................................................................................... 4
Culture ...................................................................................................................................................... 4
Structure ................................................................................................................................................... 4
Secondary Business Practices ....................................................................................................................... 4
Talent ........................................................................................................................................................ 4
Innovation ................................................................................................................................................. 5
Leadership ................................................................................................................................................. 5
Mergers & Partnerships ............................................................................................................................ 5
Conclusion ..................................................................................................................................................... 5
References .................................................................................................................................................... 5
PepsiCo Corporation – A Successful Company
To:
Ray Smith, Chief Executive Officer
From:
Date:
June 1, 2013
Subject:
PepsiCo; “A Successful Company”
Through research, I have found PepsiCo Corporation to be a successful company. PepsiCo has excelled
in the four primary practices in business; Strategy, Execution, Culture, and Structure. They have also
met three of the four secondary practices; Talent, Innovation and Mergers & Partnerships. Joining a
partnership with this organization will not only assist in meeting the needs of our customers, it will
strengthen us as an organization.
Table 1: Business Practices Review
Primary Business Practices
Strategy
Execution
Culture
Structure
Met
Met
Met
Met
or
or
or
or
Exceeded
Exceeded
Exceeded
Exceeded
Secondary Business Practices
Talent
Innovation
Management
Mergers & Partnerships
Met or Exceeded
Met or Exceeded
Not Met
Met or Exceeded
Primary Business Practices
Strategy
PepsiCo has a strategy of delivering sustained growth by placing importance on empowering their
employees and building trust from within the organization as well as the community. There are six
guiding principles that are reviewed on a regular basis. Frequent review ensures management the overall
strategies are met during the day to day business decisions.
Below is a list of the six guiding principles:
1.
2.
3.
4.
5.
6.
Care for customers, consumers and the world.
Sell only products we can be proud of.
Speak with truth and candor.
Balance short term and long term.
Win with diversity and inclusion.
Respect others and succeed together.
Execution
PepsiCo consistently review corporate performance indicators used to assist in the evaluation of progress
from the previous year. Those indicators are also used to mark progress from their competitors. PepsiCo
realizes execution is not necessarily the work performed. It is how well that work is performed.
Below is a list of an example of their benchmarks:






Performance: Total net revenue; Core total operating profit; Common share repurchases;
Dividends paid.
Human Sustainability: Compliance with advertising-to-children pledge.
Environmental Sustainability: Greenhouse gas emissions; Fuel use reduction; Waste
percentage to landfill; Water Conservation, etc.
Talent Sustainability: Demographics regarding race and gender, Lost time injuries, etc.
Responsible & Sustainable Sourcing: Suppliers in Carbon Disclosure Project; Supplier
diversity.
Community & Philanthropy: PepsiCo Foundation contributions.
Culture
The culture at PepsiCo advocates employee involvement, empowerment and engagement to encourage
employees and managers to do their best. To assist with ensuring employees are involved; programs
were implemented to seek employee input regarding current and future processes. In 2004, new
performance based compensation program was implemented to reward employees and managers for
their performance. Diversity is a main focus in the PepsiCo culture. The inclusion of diversity awareness
and celebration events allows employees to feel part of the team even if they are from different culture.
In 2010, PepsiCo was listed in the World’s Most Ethical Companies by Ethisphere and came in first in the
50 Most Powerful Woman in Business by Fortune.
Structure
PepsiCo Corporation’s structure is setup in a way to simplify the work. On March 12, 2012, PepsiCo
announced a new global structure. The purpose of this change was to strengthen the management team
and continue to produce sustainable growth.
Secondary Business Practices
Talent
PepsiCo has embraced training and involvement in the decision making process to empower and
encourage the advancement of the talent hired. They have investigated and implemented programs
related to training and education, personal and professional development, associate engagement, and
award programs. Employee involvement is supported and encouraged in management discussions
regarding changes and enhancements in the workforce. These programs increase employee engagement
which enables PepsiCo to retain their talented employees.
Innovation
PepsiCo embraces technology and process enhancements to improve efficiency to remain ahead of their
competitors. In 2012, PepsiCo was announced as one of the most innovative suppliers by Progressive
Grocery. The Toolbox Advantage program, configured to meet PepsiCo’s needs, has offered a platform
for management to track professionals, sales managers, shipment, ad tracking data, etc. The data
compiled from this program assist PepsiCo with new attractive products and delivery methods for their
customers.
PepsiCo was also recognized for their partnership with a national retailer where they gained a better
understanding of the shopper. They investigated price, promotion, placement, and product. The result
of this partnership, PepsiCo reworked their product placement to allow retailers to showcase new
products. This change allowed PepsiCo to outpace their market with double digit growth.
Leadership
PepsiCo Corporation didn’t excel in the Leadership business practice. Data was not readily available to
effectively measure the leadership outcome since the management reorganization in 2010.
Mergers & Partnerships
PepsiCo Corporation has a long history of successfully acquiring organizations and entering into
partnerships to enhance their business portfolio and diversify their product line. PepsiCo acquired Mabel
in 2011. Mabel was a producer of cookies, crackers and snacks. They were located in Brazil. In 2008,
the acquisition of V Water occurred. They were a producer of vitamin water located in the U.K.
Conclusion
As you can see from the above data, PepsiCo Corporation is a successful company. A partnership with
them will assist us in meeting our customer needs and help strengthen us as an organization.
References
PepsiCo Values & Philosophy. Retrieved May 22, 2013, from PepsiCo Corporation
website: http://www.pepsico.com/Company.html
PEPSICO PROVIDES YEAR-END ASSESSMENT AND 2004 OUTLOOK, Retrieved May 23, 2013, U.S.
Securities and Exchange Commission
http://www.sec.gov/Archives/edgar/data/77476/000007747603000054/exhibit99-1.htm
PepsiCo Announces New Global Structure and Leadership to Drive Continued Growth, Retrieved May
23, 2013. PR Newswire. http://www.prnewswire.com/news-releases/pepsico-announces-newglobal-structure-and-leadership-to-drive-continued-growth-142287945.html
PepsiCo Opts for Customized ToolBox CatMan Solution, Retrieved May 27, 2013. Progressive Grocer.
http://www.progressivegrocer.com/top-stories/headlines/technology/id36169/pepsico-optsfor-customized-toolbox-catman-solution/
PepsiCo Inc., Retreived May 26, 2013. From Mergent Online.
http://www.mergentonline.com.libproxy.uncg.edu/companyownership.php?compnumber=6581