Pepsi is one of the multinational businesses that offers beverages, snacks, and food globally, and its headquarters are in New York. The organization has been evolving over the years with the changes in the market and technological advancement. Changes in lifestyles and trends, the company's willingness to grow, and adapt are the other factors that have enabled it to remain relevant in a competitive market. Some of its global brands include Pepsi and Gatorade, and it operates in more than 200 countries. The firm is committed to undertaking its operations in the right way with the desire to integrate purpose into the strategies that it has adopted. When analyzing the operations of this company, it is important to determine its vision, mission, and objectives that it aims to realize. The customer value proportion, competition in the market, the value chain that the business adopt around the world, and its financial ratios will help in understanding the company's operations. PepsiCo operations can be understood by having an analysis of the industry, its drivers, porter's five forces, and pestle analysis.
PepsiCo Mission and Vision Statements and Values
The vision statement adopted by this company is "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." The ideology is incorporated in the idea of performance with purpose with the main consideration being the corporate social responsibility, sustainability, and high financial performance levels. The firm's mission statement 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." It is an indication that one of the main desires that the firm wants to realize is ensuring that its clients are satisfied through the provision of quality service and delicious, and healthy products. These commodities must be affordable and accessible at their place of convenience. The organization aspires to be the best in the industry both economically and socially, and the ideology is realized through the values that it has adopted. The core values that are assumed by the organization include ensuring that there is sustained growth that will help in empowering all the stakeholders that are interested in the firm's affairs. Responsibility and trust guide the organization leads to the creation of a culture that manages the company's operations. The empowerment process is a win-win situation for all parties involved considering that the workforce and customers manage to rely on each other to derive the satisfaction that they desire. The aim to trigger commitment to everyone supports the engagement and diversity concepts.
PepsiCo Model, Financial and Strategic Objectives
PepsiCo's business model is diversified, and it seems to have a significant presence in the beverage and snacks categories. The program that the firm may utilize in its operations is the Business Objective Model (BOM) which will help the business to create value. The snack category contributes around 50% of its revenues earned, and the diversification process has enabled the business to create complementary products. The financial objective adopted by this entity includes raising its share value in the market, a move that will offer it an opportunity to maximize its shareholders' value. The company has instituted measures that are expected to help in integrating investments, operational, and finance activities. The entity is working on expanding the global market to ensure that it increases the volume of sales and earnings made to support the expansion processes. The management has a great desire to exploit the available opportunities and manage the prevailing risks in the market. The creation of social support agencies and coordination of projects that support society will play a vital role in the realization of the financial objectives.
The strategic objectives adopted by this company are geared towards ensuring that the business is useful in the market. These measures used are geared towards minimization of the operational cost for this will help in raising its competitiveness in the market. The business offers low prices due to the reduced costs, while in other cases, their clients manage to get operational offers with discounted prices. The broad differentiation model of activities attracts its end users to unique characteristics that include the inclusion of health components.
PepsiCo Customer Value Proposition
Custom value proportions are the strategies that are used by companies to create value for their commodities in the market. The statement raised explains why clients should purchase the commodities of that firm. The theory that is applied in this case ensures that Pepsi undertakes measures that will ensure that its brand continues to reign in the market despite the strong competition it is getting from rivals. The organization has over the years instituted policies that will ensure that it makes suitable business decisions, and it also streamlines its marketing processes to ensure that it is working effectively. The provision of commodities that are meeting the clients' needs is an issue that the management is keen to meet. Adopting measures that are enabling the employees to work as a unit is a move that is giving it an upper hand in realizing growth and managing to create confidence among the customers that they are offering health commodities. The organization is keen on following the policies highlighted by the various regulatory bodies, an issue that makes it remain in line with the expected rule of law. It followed its stated mission and vision statements enabling to create an element of confidence among the customers in the market. The organization has been working on making its commodities sustainable for human consumption by ensuring that they are healthy. The main variables that are used in determining the value proportion are customer satisfaction with the quality of commodities provided, their affordability, and the ability of the firm to raise the revenue levels.
The firm determined its customers' perceived value by understanding the sacrifices that it will make to realize the benefits. The utilization of the means-end model regarding the quality, price, and value enables the business to comprehend the correlation that exists among them, allowing the customers to analyze the commodities' intrinsic and extrinsic attributes. The other model that the organization uses in the value proportion process is the field value assessments. The tool enables the firm to gather information about the market first-hand and analyze it to raise findings on the value that they are deriving from the consumption of the company's goods.
PepsiCo Direct and Indirect Competitors and Substitutes
Coca Cola remains one of the significant competitors of PepsiCo in the beverage industry. The other organizations that compete for the available market with this entity are the Dr Pepper Snapple, Red Bull, and Parle. Coca Cola is one of the leading beverage companies in the world, and it operates in more than 200 countries. It is an entity that is known for its popularity and strong marketing abilities, and it is the main competitor to Pepsi, and their rivalry is regarded as the Cola Wars. Red Bull has a low product portfolio, and it mainly competes with Pepsi in the energy drink sector. It operates in more than 171 nations, and its market is mostly in the United States and Western Europe. Despite its limited marketing ability, the organization has managed to hold a significant market share in the regions that it distributes its commodities making Pepsi find ways of countering the competition. The Dr Pepper Snapple has an estimated 50 brands, and it mainly competes with PepsiCo for the American market. It has made several acquisitions over the last few years, and this is with the desire to widen its customer base and business level.
Figure 2. Market Share of Carbonated Beverages Worldwide as of 2015
The Competitive Dynamics Theory helps to explain the impact of the actions taken by a business and the rival entities in the industry. Some of the organizations that offer indirect competition to Pepsi include the business in the alcoholic industry since they provide commodities that are alternatives to the PepsiCo products. Some of the leading organizations providing indirect competition are Nestle, which offers the coffee brands and Lipton offering tea to the global market. Therefore, customers in the market may decide to consumer their commodities instead of the beverages manufactured by PepsiCo. Additionally, another source of indirect competition is from the companies that use the same raw materials needed by Pepsi. For example, it is important to note that corn sweeteners, oats, sugar, oils, and sucralose are products that are used to make alcoholic products. Additionally, some of them are utilized in the making of drugs and sugar for human consumption (Bhasin, 2018). Therefore, PepsiCo competes for these raw materials with other companies that do not manufacture beverages. The high competition level may trigger a rise in the costs of raw material, affecting the company's operations.
Consumers may prefer to use their products instead, for the beverages provided by PepsiCo, and in this case, some of the elements that they may select include tap water, coffee, tea, chocolates, and nuts may act as substitutes, for the food products and snacks that are provided by the business. Therefore, the management should be keen to popularize their commodities, considering that the consumers have a wide range of commodities to choose from in the market. They can either take the substitute or buy from rival companies.
PepsiCo Pestle Analysis and Evaluation
The models that will be used in this analysis are the Pestle and SWOT theories. Pestle Analysis is the tool that is used to make an evaluation of the company's operations and the elements affecting its activities. The company is the second-largest in the beverage industry after Coca Cola. Therefore, it is supposed to act in the right way to ensure that it remains relevant in the market. The Pestle Analysis model is a managemen...
Cite this page
PESTLE, SWOT, PepsiCo Cmp. Forces & Evaluation, Drivers of Ind. Change & Impact - Essay Sample. (2023, Apr 06). Retrieved from https://proessays.net/essays/pestle-swot-pepsico-cmp-forces-evaluation-drivers-of-ind-change-impact-essay-sample
If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:
- Areas of Management for Apple - Management Essay
- Case Study Analysis: Amazon
- Assignment Example on Microsoft Case
- Apple Inc. Company History and Financial Statements Paper Example
- Apple Inc. Marketing Plan Paper Example
- Evaluation Essay on Apple: Leading Innovation With Unique Products and Digital Content
- Coca-Cola's Secret to Success: Innovating with Technology - Essay Sample