Foundation University Rawalpindi Campus
Class: BBA 6B
Submitted to: Sir iftikhar Hussain
Submitted by: Noor us sbah (078)
Mahnoor zafar (068)
Laraib shakeel (067)
Saba Hussain (079)
Organization:
Pepsi – Haidri Beverages Pvt Ltd
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Contents
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Introduction ......................................................................................................................................... 4
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Company .............................................................................................................................................. 4
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Our Mission & Vision ......................................................................................................................... 4
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Our Values and Philosophy........................................................................................................ 5
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Global Code of Conduct ............................................................................................................. 6
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Purpose......................................................................................................................................... 6
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Brands .................................................................................................................................................. 7
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Production process .............................................................................................................................. 7
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Acquiring and Cleaning Bottles: ................................................................................................... 7
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Water Processing: ........................................................................................................................... 7
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Preparation of Syrup: ..................................................................................................................... 7
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Filling of bottles: ............................................................................................................................. 7
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Operational Problems ......................................................................................................................... 8
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Analysis: ............................................................................................................................................... 8
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Water Purification: ......................................................................................................................... 8
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Contamination Problem: ................................................................................................................ 9
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Negligence of Workers: .................................................................................................................. 9
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Energy Crises: ................................................................................................................................. 9
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Recommendations: .............................................................................................................................. 9
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Action plan: ....................................................................................................................................... 10
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Conclusion: ........................................................................................................................................ 10
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 Introduction
 Company
Since PepsiCo first entered Pakistan in 1968, our operations have reflected a strong commitment
to Pakistan’s people, communities and economy. We have steadily expanded our portfolio of
food and beverage brands as the country itself has continued to grow and prosper, supporting and
investing in Pakistan and its bountiful resources through mutually beneficial relationships with
all those who collaborate in PepsiCo’s value chain.
Our business is guided by Performance with Purpose, our governing philosophy. This
philosophy, first articulated in 2006, focuses on delivering sustained financial results while being
responsive to the needs of the world around us. It specifically reflects three overarching
priorities. First is making healthier products by reducing sodium, saturated fat and sugar content
in our products, in some cases by more than 80 percent. Second is limiting our environmental
impact by reducing water and energy consumption while increasing our recycling efforts. Third
is upskilling our people while uplifting the communities we serve by sponsoring various drives
and initiatives to reduce hunger and malnutrition while promoting health and wellness.
The result today is a growing number of partnerships in Pakistan’s business community,
collectively working toward ongoing advancements in the country’s economy, infrastructure,
environment and society.
Many of our brands in Pakistan today are immediately recognizable household names which
have reduced amounts of sugar, salt, saturated and trans-fats. We have leveraged PepsiCo’s
global best practices to establish comprehensive internal procedures that ensure food safety
controls covering the entire supply chain from raw material, through production, and ultimately
the retail shelf.
The pride we have in our business is not simply a result of our growth over the years; it is the
way we have grown – taking a long-term view, making investments that respond to changing
societal needs, and truly seeing ourselves as Pakistan’s development partner.
Our continued success as a company is inextricably linked to the success of the markets we
serve. We are proud of more than 50 years of history in Pakistan and look forward to a brighter
future with the employees, families and communities in the country who have helped make
PepsiCo what it is today.
 Our Mission & Vision
 Our Mission:
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to
evening treats. We are committed to investing in our people, our company and the communities
where we operate to help position the company for long-term, sustainable growth.
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 Our Vision:
At PepsiCo, we aim to deliver top-tier financial performance over the long term by integrating
sustainability into our business strategy, leaving a positive imprint on society and the
environment. We call this Performance with Purpose.
It starts with what we make— a wide range of foods and beverages from the indulgent to the
more nutritious; extends to how we make our products— conserving precious natural resources
and fostering environmental responsibility in and beyond our operations; and considers those
who make them— striving to support communities where we work and the careers of generations
of talented PepsiCo employees.
 Performance with Purpose
At the heart of PepsiCo is Performance with Purpose — our vision to deliver top-tier financial
performance over the long term by integrating sustainability into our business strategy. Together
with our business partners and leading organizations committed to positive change, we are
determined to make our vision a reality.
 Our Values and Philosophy
 Guiding Principles
1. Care for customers and the world we live in:
We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit
toward solutions that benefit both our company and our constituents. We see our success as
inextricably linked to that of our customers, consumers and communities.
2. Speak with truth and candor at all times:
We tell the whole story, not just what's convenient to our individual goals. In addition to being
clear, honest and accurate, we are responsible for ensuring our communications are understood.
3. Respect others and succeed together:
Our mutual success depends on mutual respect, inside and outside the company. It requires
people who are capable of working together as part of a team or informal collaboration. While
our company is built on individual excellence, we also recognize the importance and value of
teamwork in turning our goals into accomplishments.
4. Sell only products we can be proud of
The true test of our standards is our own consumption and endorsement of the products we sell.
Without reservation. Our confidence helps ensure the quality of our products, from the moment
we purchase ingredients to the moment it reaches the consumer's hand.
5. Win with diversity and engagement:
We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings
new perspectives into the workplace and encourages innovation, as well as the ability to identify
new market opportunities.
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6. Balance short-term and long-term:
In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this
balance helps sustain our growth and ensures our ideas and solutions are relevant both now and
in the future
 Global Code of Conduct
At PepsiCo, we believe acting ethically and responsibly is not only the right thing to do, but also
the right thing to do for our business. Our PepsiCo Global Code of Conduct (our "Code") has
been revised effective October 1, 2012 to address changing laws that impact our business. It is
designed to provide our employees with specific guidance.
All PepsiCo employees are expected to embrace the principles of our Code and
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Show respect in the workplace;
Act with integrity in the marketplace;
Ensure ethics in our business activities; and
Perform work responsibly for our shareholders.
Our Code remains our roadmap and compass for doing business the right way.
 Purpose
PepsiCo is focused on delivering sustainable long-term growth while leaving a positive imprint
on society and the environment – what we call Performance with Purpose. Our focus includes
transforming our portfolio and offering healthier options while making our food system more
sustainable and communities more prosperous. In doing so, we believe we will pave the way for
PepsiCo’s future growth and help others thrive.
 Our Focus Areas:
Our 2025 Agenda: To substantially increase our efforts to improve the products we sell, protect
our planet and empower people around the world in order to contribute solutions to shared
challenges. Explore below to learn more about our focus areas: Products, Planet and People.
 Products:
We will continue to refine our food and beverage choices to meet changing consumer needs by
reducing added sugars, saturated fat and salt, and by developing a broader portfolio of product
choices, reaching more underserved communities and consumers.
 Planet:
We will reduce our environmental impact while growing our business and helping to meet the
food, beverage and natural resource needs of our changing world.
 People:
We will advance respect for human rights, promote diversity and engagement, and spur social
and economic development in communities around the world
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 Brands
Beverages
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7.
Pepsi
Sting
Aquafina
Slice
Mountain dew
Mirinda
7up
Food
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4.
Lays
Kurkure
Cheetos
Quaker
 Production process
 Acquiring and Cleaning Bottles:
Pepsi operation began with the process of purchasing and washing of bottles. Mostly company use the
bottles returned from market. In case the company needs more bottles then they are purchased from the
glass company, Lahore. These bottles are place on conveyer and washed with help of automatic plant.
Caustic soda and boiled water is used to clean the bottles returned from the market.
The empty bottles that come from the market are brought into the washing room of bottles were damaged
bottles are screened out from the lot. Only the acceptable lot is allowed going towards the bottle washer
machine. The bottles remain 45 minute in the washer machine, so that only the good quality bottles that
are free from sludge and breakage can be passed to the filling room.
 Water Processing:
In this stage hardness is removed from the water, which is in raw form. Here raw water along with lime,
FeSO4 is passed from coagulation tank in order to remove initial sludge than this water is transferred to
buffer tank to stable it. Then this water is passed from sand filter, which contains sand and gravel bad and
carbon filter, which contain carbon and gravel bed for more purification. After that it is moved to the
Prefix Carbon Filter and then to the Spool Polisher in which the filter papers are used to remove the
sludge and then to Water Polisher. After that Ultra Violet Filter are used in which Ultra Violet rays passes
through the water in order to kill the future growth of bacteria. Finally, this treated water passed through
the Thread Type Filter. After passing through this complex process water is completely free from sludge
and bacteria and other hazardous waste. This soft water is now ready for syrup making.
 Preparation of Syrup:
In preparation of syrup sugar is weighted for different brands, because each brand has different
requirement different quantity of sugar, then this weighted sugar is moved to the syrup storage room,
where the sugar and water in equal quantity processed in Pasteurizer Tanks, and heated up to 85 C where
Activated Carbon, Chlorine and TSP (Tri Sodium Phosphate) are used to remove the bacteria and smell
and color of the sugar. After that this mixture of water and sugar is cooled down up to 20C in order to
prevent from the further growth of bacteria, finally in this mixture Concentrate of each brand is added as
per requirement.
 Filling of bottles:
In the filling room the syrup and CO2 comes from syrup and CO2 room. From Carbon cooler syrup goes
to the filler and from other side empty bottles and then crown cock or cap cocks are fixed on the bottles.
Here operator looks after the production process.
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Filled bottles are then passed thorough light room where bottles are checked again. Under filled or, over
filled bottles or dirty bottles are separated from the lot. There are two light rooms and in each room one
employee is placed to trace out the dirty bottles.
While passing through light room the code is printed on the bottles, which contain the manufacturing
date, machine number and time of manufacturing and the batch number of the product.
After all this checking process bottles are placed in the crates. The whole process of production is
automatic. Only supervision is required. Finally these crates are sent to the output warehouse.
The Pepsi is facing with number of problems. One of them is negligence of worker, Because of less
educated and trained staff in the production department. Negligence is basically carelessness of workers
in maintaining the set standards the company have to ensure. Because of lack of education and training
they do not know the importance of maintaining required level of temperature and pressure, which results
in poor quality product. Peps should try to reduce the negligence because it can cost the company like
McDonald. They have paid compensation to the woman in US because of their negligence of using poor
quality of tea cup. As Pepsi belongs to beverage industry and it is also more concerned to health, the
negligence of the staff in production department can result in losing of license.
Consumers expect high-quality beverages with a long shelf-life, and products that preferably aced by
consist of natural ingredients and few additives. Such requirements make products more vulnerable to
contamination with microorganisms, which can lead to product spoilage or food poisoning. The problem
related to contamination is also faced by the Pepsi. Because after manufacturing the Pepsi they do not
store it in the hygienic and cold stores. Pepsi must take serious measures to over the problem of
contamination. The problem was also faced by Coca-Cola in India, due to which it only not lose
confidence but also was ban for some time.
The energy crises in Pakistan have not only affects the beverage industry but almost whole industry is
affect by this problem. Pepsi s operations are seriously affecting due shortage of gas and electricity which
affects them in maintaining temperature and running the boilers.
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

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Operational Problems
Water purification plant
Temperature and Carbonation
Negligence of workers
Energy Crises
 Analysis:
 Water Purification:
Although various high tech machines were used for water treatment, used in the production of Pepsi. If
the investigation committee was established to discuss the reasons behind the establishment of pesticides
in packaged cans of Pepsi, it was found put that the groundwater was found to be infected. Various water
purifiers are available in the company "Pepsi" and they boost the use of high boiling vessels freely in the
water. Indeed, the quality of the process of Pepsi says that not filtered, but distilled water is used for
making soft drinks. If this process is actually followed in reality Pepsi would not have suffered huge
losses and terminate the name and reputation of the organization. Thus it is clear that water treatment is
an incorrect match, where Pepsi are not as stages assurance that simplifies working plan.
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The company should also understand that when a product that the producer supplies, special attention
should be paid to the hygienic and does not cause any health hazards. This is because a slight negligence
on the part of the company's results could lead to serious health problems, but it can be fatal to the
company's life, and may even end up losing license.
 Contamination Problem:
It is defined in the work plan of the organization that the factory where soft drinks to be produced are
exempts from all kinds of temperature and humidity issues. Indeed, the organization has shown that many
new and improved storage containers and rooms are specially designed so that after the production of soft
drink it is placed in the better rooms before they are packaged. However, this process is not supported
properly and was later concluded that the machines and stores that were made were not of sufficient
quality. This makes the soft drink changes in their chemical composition in the high temperature
differences in different areas. So thanks to theism have chemical reactions and microbes are able to breed
in them and thus contaminate it. Although the company Pepsi says that they are hygienic and special ceils
to store drinks for a long time until it is packaged and delivered, finally, they take appropriate measures to
ensure that this happens in practice. It was clear that after Pepsi is manufactured, they are not stored in
hygienic and cold stores. This change in temperature and unhygienic conditions of the theories has led to
contamination of Pepsi.
 Negligence of Workers:
Most of the problem that the quality of products due to the negligence of workers. The staff and the staff
that were part of the production department were not well educated and well trained. As a result, they did
not understand the importance of maintaining precise temperature and pressure. Nit been made to
understand that minor changes in the levels of temperature and pressure, while the water purification, etc.
can lead to drastic way for the Pepsi disasters.
 Energy Crises:
As there are energy crises in Pakistan, Pepsi also facing and effected due to it. As there is shortage of
electricity and there is huge consumption of electricity to run the operations and maintaining temperatures
in the factory while manufacturing, Pepsi is fulfilling it through generators which take their costs higher
and reduces profit margins.
Same as there is the shortage of natural gas as well. Pepsi needs natural gas to run the boilers for the
operations, due to the shortage of natural gas which is the cheapest mean of energy, Pepsi is now using
alternate means like coal and oil, which are more expansive than the gas, to run their operations.
 Recommendations:
Pepsi should use advance technologies, products, services and unmatched expertise, resulting in
sustainable solution for water purification. As water is main ingredient in beverages that which syrup is to
be dissolved. As underground water may contain insecticides and germs that could make the product
hygienic and harmful for the lives, so it is to be purified and concentrated before it is used. It make sure
that the machinery that is being used for the treatment should be of best quality and the water should be
check after some time if it meeting the required standards or not.
It is necessary to improve the process lines, the composition of the materials and the hygiene in the plant,
to increase the safety and shelf life of the product. It is not easy to meet the requirements and future goals
for the manufacturer of beverages. There are two methods developed by TNO which are helpful in
increasing the product safety and shelf life matters.
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To take broad insights into the microbial hazards the system named Flora-linked Microbial Alert Systems
for Hazards is used in production chain. And secondly to analyze the properties of specific microorganism
Specific-Microbial Alert System for Hazards is used.
Both methods gave the quantitative data, which give quick results of test of large number of samples. It
helps in making interventions and modification in the product which helps in increasing safety and shelf
life of the product.
Quality assurance is an important part of the operation process and workers perform an important part is
maintaining as well as losing the quality matters. So keep it up to date and best working, employees
should be trained before they stand on the production line. Negligence of a single worker can affect the
whole production line and may be the distortion of the company. So the worker should train enough and
should be committed to their work. This is only possible if there is strict check and balance or supervisory
during the production process or on the production line. Daily work plan should be define. There is the
need of HR department to work efficiently for the organization.
As there is shortage of electricity and gas and to full fill it, company has to use alternative solutions which
causing the high in cost of the product and reduces the profits. So to overcome this issue, company’s
marketing department should be effected and work fast. If it increases sales so the production could be on
full capacity which causes in reducing fixed costs. As the production is more and more there will be less
per unit cost on the product that could full fill the gap of the increased cost due to the use of alternative
energy sources.
 Action plan:
The following are the action plains to the above recommendation.
•In order to get pure water our action plan would be that we will retain good supplier of water and as
water is main ingredient of Pepsi cola so, our focus would be on having our own wells of water this will
help us in getting pure water and it will be in low cost because we have to incur cost only at time of
digging. It can be happen that we may not get good quality of water at all places, in order to overcome
this issue than we will look for suppliers or pipeline.
•Our action plan to reduce the contamination problem is that we contact with companies providing
software name Enterprise Quality Management Software. More and more companies are utilizing
Enterprise Quality Management Software as a platform for communication and collaboration across the
value chain. This platform enables organization to process data from a central point and reduces the
resources needed to ensure the overall standard and processes. Using this technology will help food and
beverage companies to optimize their process.
•As we have recommended that we will provide training to employees and strict supervisory will help in
running effective operations. Our action plan will be that we will provide training classes to the
employees and strict supervisory will help us in knowing the deficiencies of the employees. As result we
will arrange the training classes accordingly.
 Conclusion:
We have study Pepsi from operational view point. We also pointed out various operations related issues.
As Pepsi is well known brand all over the world so, we recommended that the company should keep its
product quality high and move towards automation in order to carry on effective operations.
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