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PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. Asias headquarter is in Hong Kong. Indian headquarter is in Gurgaon, Haryana.

2.4 COMPANY BACKGROUND


PepsiCo India Region: Leadership through Performance with Purpose

PepsiCo entered India in 1989 and in a short period of 20 years has grown into the largest and one of the fastest growing food & beverage business in the country. PepsiCo Indias growth has been guided by PepsiCos global vision of Performance with Purpose. This means that while businesses maximize shareholder value, they have a responsibility to all the stakeholders including the communities in which they operate, the consumers they serve and the environment whose resources they use. Large investor: One of the largest US multinational investors in the country with an investment of over $1 billion, PepsiCo India provides direct and indirect employment to over 1,50,000 people across the country. Its beverage and snack food business is supported by 36 beverage bottling plants, (13 company and 23 franchisee owned) and three food plants. PepsiCo Indias diverse portfolio includes iconic brands like Pepsi, Lays, Kurkure, Tropicana 100%, Gatorade, Quaker and young but immensely popular and fast growing brands such as Nimbooz and Aliva. No.1 food & beverage business in India: PepsiCo India has not only grown to become the countrys largest food and beverage business but has also become a powerful and consistent driver of PepsiCos global growth. Over the last two years, India's beverage and foods businesses have been the largest volume growth contributors to PepsiCo across the globe. PepsiCo India has been frequently recognized for its industry-leading human resource practices, indovations, corporate values, and talent, and was one of the five top marketers of the country in 2009. A third of PepsiCo India's portfolio today comprises healthier products: PepsiCos portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthy products, making the healthful choice an easi-

er choice. As PepsiCo grows, the portfolio transformation will continue with a systematic plan to reduce added sugar, sodium and saturated fats in its products. Today, the portfolio includes several healthier treats like Quaker Oats, Tropicana juices, rehydrator Gatorade, Pepsi Max and Cheetos Whoosh. PepsiCo was the first in India to introduce the use of healthier oils for its snacks -- Lays Potato chips, Kurkure and Cheetos. Model partnership with over 22,000 farmers: PepsiCo has pioneered and established a model of partnership with farmers and now works with over 22,000 happy farmers across ten states. More than 45% of these are small and marginal farmers with a land holding of one acre or less. PepsiCo Indias farming program has improved their livelihoods and incomes by providing assured buy back of their produce at pre-agreed prices thus insulating them from open market price fluctuations. PepsiCo provides 360 degree support to the farmer through quality seeds, extension services, disease control packages, and bank loans, weather insurance and latest technological practices.

Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone, by becoming the first business in the PepsiCo system to achieve Positive Water Balance (PWB). This means that it replenishes more water than it consumes in its manufacturing operations. This has been validated by Deloitte Consulting. PepsiCo is leading a pioneering initiative to replace transplanting of paddy with direct seeding technology which has helped reduce water consumption in paddy cultivation by over 30% and has also cut down GHG emissions by 75%. In 2010, PepsiCo India saved 10.1 billion litres of water through various initiatives. For water relat-

ed environment initiatives, PepsiCo India has received numerous awards such as CII National award for water management, Water Digest award for water practices and Golden Peacock award for water conservation among others.

Care for the environment: Following its success in water conservation, the company is now focused on reducing its carbon footprint. Nearly 30% of its energy is today generated from renewable sources such as rice husk boilers and wind turbines. Initiatives such as agriculture waste boilers in our plants, installation of wind turbines, reduction of use of chemicals, reduction in weight of packaging and film used in product packaging, reduction in weight of metal crowns/polypropylene caps for plastic bottles, conversion of potato waste into bio gas help reduce load on the environment. PepsiCo India also partners NGOs and local administrations in three states of India to recycle household solid waste in an endeavor to keep cities clean. Its award-winning "waste to wealth" recycling program reaches 450,000 families.

Exemplary employment practices: PepsiCo India believes in providing employment and growth opportunities to local talent. Its College of Leadership, ensures early identification of talent, and employees focused development through critical experiences. PepsiCo strongly believes in Winning with Diversity and Inclusion. PepsiCo has been offering employment to women employees at the same employment terms and equal growth opportunities as men. Today women comprise more than 25% of the companys leadership team in India. PepsiCo India currently employs over 100 differ-

ently-abled people and has won the prestigious Hellen Keller award from the National Centre for Promotion of Employment for Disabled People (NCPEDP).

2.5 ABOUT THE CEO OF PEPSICO INDIA


ABOUT INDRA NOOYI

Indra Nooyi is the newly appointed CEO of PepsiCo, ranked no 4 on Forbes Magazines annual survey of the 100 most powerful women in the world. She joins the select brand of woman who head fortune 500 companies. Presently there are only 10 Fortune 500 companies that are run by woman and Indra nooyi is 11th to break into the top echelons of power. Prior to becoming CEO, Indra Nooyi was president, chief Financial officer and a member of the Board of Directors of PepsiCo India. Indra Nooyi spent her childhood in Chennai. She did her B.Sc in Chemistry from Madras Christian College and subsequently earned a Masters degree in Finance and Marketing from IIM Calcutta. Indra Nooyi also holds a Masters degree in Public and private Management from the Yale School of Management. Before joining PepsiCo in1994, Indra Nooyi was senior vice president of Strategy and Strategic Marketing for Asea Brown Boveri, and vice president and director of corporate strategy and planning at Motorola.

2.6 SWOT ANALYSIS (PEPSICO)

STRENGTHS
Experienced management team. A competitive product line. Branding Diversification Distribution

WEEKNESSES
Company is so large and could possibly lose focus or have internal conflicts problems. Overdependence on wall mart Overdependence on US market Low Productivity Image damage due to product recall

OPPURTUNITIES
Growing markets for specialized ethinic foods and healthier food products Broadening of product base International expansion Growing savory snack and bottled water market in US.

THREATS
The almost pure competition in pricing for its products. Decline in carbonated drink sales Potential negative impact of government regulation Intense competition Potential disruption due to labour unrest

2.7 PEPSICO MISSION AND VISION

Our Mission
Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors even as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Our Vision
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today. Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company

2.8 COMMITMENT AND GUIDING PRINCIPLES OF PEPSICO

OUR COMMITMENT

Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by delivering on our promises and remaining committed to succeeding together.

GUIDING PRINCIPLES

We uphold our commitment with six guiding principles. We must always strive to: 1. Care for our customers, our consumers and the world we live in.

We are driven by the competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. Our success depends on a thorough understanding of our customers, consumers and communities. To foster this spirit of generosity, we go the extra mile to show we care. 2. Sell only products we can be proud of. The true test of our standards is that we are able, without reservation, to consume and personally endorse the products we sell. Our absolute endorsement extends to every part of the business, from the purchase of ingredients to the point where our products reach consumers. 3. Speak with truth and candor.

We tell the whole story, not just what is convenient to our individual goals. In addition to being clear, honest and accurate, we take responsibility for ensuring that our communications are understood.

4. Balance the 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 that our ideas and solutions are relevant both now and in the future. 5. Win with diversity and inclusion. We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings new perspectives into the workplace and encourages innovation, helps us identify new market opportunities, develop new products and sustain our commitment to growth through empowered people. 6. Respect others and succeed together. We depend on people who can work together, whether in structured teams or through informal collaboration. Mutual success depends on mutual respect, for both those within and outside the company. While our company is built on individual excellence, the value we attach to teamwork and mutual respect turns our goals into accomplishments.

2.9 PRODUCTS OF PEPSICO AND ITS SCOPE

Brand Facts
PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver enjoyment, nutrition, convenience as well as affordability.

Beverages

PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, Mirinda and Mountain Dew, in addition to low

calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

Foods

PepsiCos food division, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil

to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

2.10 NO. OF EMPLOYEES IN PEPSICO AND ITS TURNOVER

PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $43.3 billion and over 2,85,000 employees worldwide.

2.11 AREA OF BUSINESS


The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2010 it is separated into four main divisions: PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. As of 2009, 71 percent of the companys net revenues came from North and

South America, 16 percent from Europe and 13 percent from Asia, the Middle East and Africa.

2.12 ORGANISATIONAL HIERARCHY

DIRECTOR

HAED OF SALES

PERSONAL DEPARTMENT

FINANCE DEPARTMENT

SHIPPING DEPARTMENT

MARKETING DEVELOPMENT MANAGER

TERRITORY DEVELOPMENT MANAGER


ACCOUNT DEVELOPMENT CORDINATOR

FINANACE MANAGER

SUPERVISO R

MARKETING OFFICER

ACCOUNT EXECUTIVE

STAFF

MERCHANDISER

Sr. CUSTOMER EXECUTIVE

ACCOUNTANAT

CUSTOMER EXECUTIVE

SALESMAN

LOADERS

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