Term Project: Company Background and Data
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Table of Contents
Company History and Overview ................................................ 2
Company Overview .................................................................................................................................... 2
Key Dates in PepsiCo History .................................................................................................................... 3
Corporate Mission ...................................................................................................................................... 3
Corporate Vision ........................................................................................................................................ 4
Value .......................................................................................................................................................... 4
Strategies for Growth ................................................................................................................................. 4
Code for roadmap ....................................................................................................................................... 5
Products lines for Pepsi and Mountain Dew ............................................................................................... 5
Organization Structure and Business Processes ......................... 6
Organizational Structure ............................................................................................................................. 7
Product, Production and other related data .............................. 9
Bill of Materials .......................................................................................................................................... 9
Work centers and Routing .........................................................................................................................11
Vendor .......................................................................................................................................................12
Major Customers .......................................................................................................................................12
Financial Accounts .................................................................................... Error! Bookmark not defined.
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Company History and Overview
Company Overview
PepsiCo was founded in 1965 via the merger of Pepsi-Cola and Frito-Lay, up to now
Pepsi-Cola and Frito-Lay are still the major products of PepsiCo, Inc. In 1966, Doritos
brand tortilla chips are introduced; Pepsi entered Japan and Eastern Europe and open a
broad market. In the 1970s, PepsiCo acquired Pizza Hut, Inc., in the same time, PepsiCola becomes the number one cola drink in the supermarkets. In the 1980s, PepsiCo
focused on the human healthy problems and invented the first major brand caffeine
free colas. In the 1990s, PepsiCo acquired Tropicana Products from Seagram Company
Ltd., the biggest acquisition even undertaken by PepsiCo. Up to now, PepsiCo became
the second largest manufacturer of soft drink in the world; it has 22 different product
lines that offer variety of high quality products providing refreshment and nutrition. Like
Quaker, Cheetos, Mirinda, Starbucks, Fritos, Aquafina, 7 up, Lay’s, Ruffles, which are all
our favorites.
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Indra Krishnamurthy Nooyi, the chairman and chief executive officer of PepsiCo, joined
the company in 1994 and was named CEO in 2006. She is striving for a net-zero impact
on the environment and focuses on the healthier beverages and foods. She also was
ranked No.11 in Fortune’s list of the most powerful women in business.
Key Dates in PepsiCo History
1898, Pepsi-Cola Company formulated. In 1948 and 1964, Mountain Dew and Diet Pepsi
was invented.
1932, Fritos brand corn chips and Lay’s brand potato chips were created.
1960s, Doritos brand tortilla chips are introduced. Pepsi enters Japan and Eastern
Europe.
1970s, PepsiCo moves from New York City to Purchase, N.Y. Pepsi-Cola becomes the
number one cola drink in supermarkets.
1980s, PepsiCo enters the top 25 of the Fortune 500 ranking.
1990s, PepsiCo spins off Kentucky Fried Chicken, Pizza Hut and Taco Bell as Tricon Global
Restaurant, Inc. The Pepsi-Cola Company celebrates its 100th anniversary.
2000s, PepsiCo merges with The Quaker Oats Company. PepsiCo celebrates its 40 th
anniversary.
2010s, Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join PepsiCo’s
portfolio of billion-dollar brands, bringing the total to 22.
Corporate Mission
The mission of PepsiCo is to be first consumer products in this world. Its mean products
are convenient foods and beverages. PepsiCo is always pursuing giving the most profits
to its investors, employees, and business partners. They use honesty, fairness and the
best integrity to create every single product.
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Corporate Vision
“Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder value
by making PepsiCo a truly sustainable company.
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society - delivering what we call Performance with Purpose.
Our approach to superior financial performance is straightforward - drive shareholder
value. By addressing social and environmental issues, we also deliver on our purpose
agenda, which consists of human, environmental, and talent sustainability.”
Value
PepsiCo always want to be an environmentally and socially responsible company.
PepsiCo is aware of how the environment plays an important part in their sustainability;
so they lighted their bottles’ weight, use green materials as more as possible. Via their
customer services, they build trust between their agenda and customers.
Strategies for Growth
PepsiCo has several key strategies for sustainable, long‐term growth, including:

Building a responsible and trustable company

Profitably growing the company’s beverage business worldwide

Seek to produce financial rewards to investors

Ensuring green environmental, responsible financial management
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Code for roadmap
At PepsiCo, they have faith in acting ethically and responsibly are not only the correct
things to do, but also the correct things to do for their business.
 Act responsible and respect in the work environment
 Act with trustiness in the market environment
 Focus on environmental stewardship, activities to benefit society
 Commitment to build shareholder value
Products lines for Pepsi and Mountain Dew
Pepsi
Mountain Dew
● Pepsi Max
(Zero Calories. Maximum PepsiTaste)
●
MTN Dew
●
MTN Dew Baja Blast
●
Black Cherry Kick Start MTN Dew
●
Limeade Kickstart MTN Dew
●
Diet MTN Dew
●
MTN Dew Code Red
●
Diet Pepsi
(Love every sip)
●
Pepsi Next
(Drink it to believe it)
●
MTN Dew Live Wire
●
MTN Dew Voltage
●
MTN Dew White Out
●
MTN Dew Throw Black
●
Orange Citrus Kickstart MTN Dew
●
Fruit Punch Kickstart MTN Dew
Table. 1 Two Products lines in PepsiCo
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Organization Structure and Business Processes
Fig. 2 Detail of organization structure in PepsiCo
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Organizational Structure
Fiscal Year
Client
Variant K1
Credit Control
Area C___
Chart of Accounts
Company Code
Controlling Area
C___
C___
C___
Plant P___
Cost Center
Standard
Hierarchy*
Purchasing
Organization
Purchasing Group
Work Center
Shipping Point
WC___
S___
Sales Organization S___
Distribution Channel
Division
(RE/WH)
Fig. 1 Organization structure
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Company Code: C___
Headquarters
Plant
P___ PepsiCo Inc.
Purchase, NY
USA
Bottling Plant
Plant
P___ The Pepsi Bottling
Group, Inc.
Somers, NY USA
Bottling Plant
Storage Location Raw
Materials
SL__
The Pepsi Bottling
Group, Inc.
Somers, NY USA
Bottling Plant
Storage Location
Finished Goods
SL__
The Pepsi Bottling
Group, Inc.
Somers, NY USA
Distribution
Center
Shipping Point
S___ Refreshments Services
Pepsi
Tallahassee, FL
USA
Distribution
Center
Storage Location
Finished Goods
SL__
Tallahassee, FL
USA
Refreshments Services
Pepsi
Table. 2 Company Code C___ of PepsiCo
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Product, Production and other related data
Bill of Materials
For Diet Pepsi
Material
Part
Qty /
number Unit
Cost /
Order
Order
Qty
Cost / material Vendor
Unit
type
Water
1 ltr
400
4000 ltrs 0.10
raw
Crystal Clear
Water Systems
Mahopac, NY
Artificial
Sweetener
1 ltr
280
140 ltrs
2.00
raw
American Sugar
Refining Inc.
Yonkers, NY
Diet Pepsi
Flavoring Syrup
1 ltr
180
400 ltrs
0.45
raw
Pepsico
Diet Pepsi Cans
7000
350
7000
0.05
raw
Rexam Chicago,
Illinois
Diet Pepsi Lids
7000
70
7000
0.01
raw
Rexam Chicago,
Illinois
12 Pack Box for
Diet Pepsi
600
12
600
0.02
raw
Nepa Carton
and Carrier Co.,
Inc.
Table. 3 Detail of the BOM for Diet Pepsi products
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For Diet MTN Dew
Material
Part
Qty /
number Unit
Cost /
Order
Order
Qty
Cost material Vendor
/ Unit type
Water
1 ltr
400
4000 ltrs 0.10
raw
Crystal Clear
Water Systems
Mahopac, NY
Artificial
Sweetener
1 ltr
280
140 ltrs
2.00
raw
American Sugar
Refining Inc.
Yonkers, NY
Diet MTN Dew
Flavoring Syrup
1 ltr
180
400 ltrs
0.45
raw
Diet Mountain
Dew Cans
7000
350
7000
0.05
raw
Rexam Chicago,
Illinois
Diet MTN Dew
Lids
7000
70
7000
0.01
raw
Rexam Chicago,
Illinois
12 Pack Box for
Diet MTN Dew
600
12
600
0.02
raw
Nepa Carton and
Carrier Co., Inc.
PepsiCo
Table. 4 Detail of the BOM for Diet MTN Dew
Trading goods
Material
Pepsi Bottle
Cap Keychain
Part
Qty /
number Unit
10000
Cost /
Order
Order
Qty
Cost material Vendor
/ Unit type
5000
1000
0.50
trading
goods
Flexsystems
USA, Inc.
El Cajon, CA
Table. 5 Detail of trading goods for PepsiCo
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Work centers and Routing
Routing for Diet Pepsi
Operation
no.:
Ingredients / Parts
used
Steps
Time Cost
(min)
Work
Center
Plant
1
water, artificial
sweetener,
flavouring syrup
mix the ingredients to
form final product i.e.
diet Pepsi
0.09
0.08
WCPS
P110
2
Diet Pepsi Can
fill the cans with diet
Pepsi
0.02
0.01
WCFL
P110
3
Diet Pepsi Lid
seal the cans
0.01
0.01
WCSL
P110
4
Diet Pepsi 12
Pack Carton
make 12 pack cases for
distribution
0.12
0.03
WCPK
P110
Table. 6 Detail of routing for Diet Pepsi products
Routing for Diet MTN Dew
Operation
no.:
Ingredients /
Parts
Used
Steps
Time Cost
(min)
Work
Center
Plant
1
water, artificial
sweetener,
flavouring syrup
mix the ingredients to
form final product i.e.
diet MTN Dew
0.09
0.08
WCPS
P110
2
Diet MTN Dew
Can
fill the can with diet MTN
Dew
0.02
0.01
WCFL
P110
3
Diet MTN Dew lid Seal the can
0.01
0.01
WCSL
P110
4
Diet MTN Dew 12
pack Carton
0.12
0.03
WCPK
P110
Make 12 pack cases for
distribution
Table.7 Detail of routing for Diet MTN Dew products
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Vendor
Vendor Name
Location
Material Type
Material
American Sugar Refining Inc.
Yonkers, NY
Raw Material
Artificial Sweetener
Rexam Chicago, Illinois
Chicago, Illinois
Raw Material
Aluminum Cans
Crystal Clear Water Systems
Mahopac, NY
Raw Material
Water
Flexsystems USA, Inc.
El Cajon, CA
Trading Goods
Pepsi Key Chain
Nepa Carton and Carrier Co., Inc.
Moosic, PA
Raw Material
12 Pack Cartons
Table. 8 Detail of vendor for PepsiCo beverages
Major Customers
Customer Name
Location
Wal-Mart Stores, Inc. (Including Sam’s club)
850 Cherry Avenue San Bruno, CA 94066
Fast Food
Restaurant
KFC
1900 Colonel Sanders Ln Louisville,
KY 40213
McDonalds
McDonald's Corporation 2111 McDonald's
Dr.
Oak Brook, IL 60523
Burger King
Burger King Worldwide 5505 Blue Lagoon
Drive
Miami, FL 33126
Table. 9 Detail of major customers for PepsiCo beverages
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