PepsiCo Turkey Team 7 Report GEB 6930 EMBA11 Study Tour İstanbul, Türkiye PepsiCo Turkey • History and Evolution of Strategy • Mission and Major Goals • Current CEO of Division • Global Operations 2 PepsiCo Turkey – History & Strategy PepsiCo Founded 1965 Donald Kendall CEO & President of Pepsi Cola Herman W. Lay CEO & Chairman of Frito-Lay Entered into Eastern Europe in 1966 3 PepsiCo Turkey – History & Strategy Market Expansion Eastern Europe 1966 U.S.S.R. 1974 China 1985 India 1988 Distributed in 150 countries and 10 markets by 1985 4 PepsiCo Turkey – History & Strategy Environmentally Sensitive Recyclable plastic bottle 1970 Environmental Protection Agency award as water efficiency leader Introduces Hybrid vehicles into Mexico 5 PepsiCo Turkey – History & Strategy Socially Sensitive Worldwide Code of Conduct 1976 Fitness PepsiCo Fitness Center Partnership with Cooper Concepts to promote nutrition, fitness, and wellness Launched “Diversity@work” 2000 100% rating from Human Rights Campaign Foundation 2009 5 years in a row 6 PepsiCo Turkey – Mission & Goals PepsiCo’s Mission: deliver financial success while leaving a positive imprint on society • Be the world’s premier consumer products company, focused on convenient foods and beverages • Produce financial rewards for shareholders • Provide employees and partner’s opportunities for growth and success • Improve all aspects of world in which it operates environmentally, socially and economically 7 PepsiCo Turkey – Mission & Goals “Performance with Purpose”: (1) Human Sustainability (2) Environmental Sustainability (3) Talent Sustainability 8 PepsiCo Turkey – Mission & Goals PepsiCo Europe – Performance Drivers: • Differentiated Value • Revenue Management • Strong Cost Control • Cash Flow Generation 9 PepsiCo Turkey – Mission & Goals Results of Performance Drivers: • PepsiCo Europe – Fiscal Year 2009: – 10% Net Revenue increase – 13% operating profit increase • PepsiCo Turkey: 35% Market Share • Goal: Overtake Coca-Cola as Market Leader 10 PepsiCo Turkey – CEO Ümran Beba – President, South East Europe Region, PepsiCo Europe •1994: Joined Frito Lay as Marketing Director •1994 – 2001: Various Marketing, HR, Sales Duties •2001 – 2004: General Manager, Turkey Operations •2004 - 2008: General Manager, East Mediterranean Business Unit •Named President SEE January 2009 11 PepsiCo Turkey – CEO • Based in İstanbul • South East Europe Region: 13 Countries • Turkey, Greece, Cyprus, Serbia, Bosnia and Herzegovina, Kosovo, Macedonia, Croatia, Slovenia, Montenegro, Romania, Bulgaria, Moldova, and Israel 12 PepsiCo Turkey – CEO • Recently Named to Head PepsiCo’s Asia-Pacific Division • Relocating to Hong Kong March 2010 • Will be Responsible for 18 Countries including Australia, Indonesia, Japan, New Zealand, Pakistan, and Singapore • China and India as Well 13 PepsiCo Turkey – Global Operations PepsiCo: $43 Billion Revenues 198,000 employees worldwide 14 PepsiCo Turkey – Global Operations (1) PepsiCo Americas Foods (PAF) • Frito-Lay North America • Quaker Foods North America • Latin American food and snack businesses (2) PepsiCo Americas Beverages (PAB) • PepsiCo Beverages North America • Latin American beverage businesses (3) PepsiCo International (PI) • United Kingdom, Europe, Asia, Middle East and Africa 15 PepsiCo Turkey – Global Operations PepsiCo Europe part of PepsiCo International 880 million European Consumers PepsiCo Turkey part of PepsiCo South East Europe, one of 14 divisions of PepsiCo Europe Turkey Population (est. July 2009): 76.8 million 16 PepsiCo Turkey – Global Operations PepsiCo Turkey’s Brands: 17