1. Carson Clark
Shea Kirkwood
Brenden Kelley
William Ritter
Summer Wert

2. Background
 PepsiCo is broken into 4 main divisions:
 PepsiCo Americas Beverages
 PepsiCo Americas Foods
 PepsiCo Europe
 PepsiCo Middle East & Africa

3. PepsiCo Industry
 Pepsi is the 2nd largest soft drink company in the world
 Frito Lay is the world’s largest salty snack company
 PepsiCo sells its products in 160 countries

4. Mission Statement
“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 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.”

5. Strategies being used (Grand/Corporate
AND Business)
 Combination Strategy
Defensive
1. Laying-off employees to reallocate capital to
marketing
2. Increasing costs due to high commodity costs
Stability
1. Redirecting attention to flagship brands

6. Strategies being used (Grand/Corporate
AND Business) Continued….
Growth
1. Developing alliances with huge companies in all
across world
2. Diversified with beverages, salty snacks,
nutritional
3. Taking steps to surpass competitors across the
world

7. Business Strategy
Differentiation strategy
 Brand leveraging
 High quality vs competitors
 Able to serve all types of customers unlike any
other competitor

8. Corporate Culture
 Quality
 Performance of their products & services
 Social Responsibility

9. Corporate Culture
 Performance with purpose
 “Blaze new trails. Never settle for second best. Succeed
together, celebrate and do something bigger. That’s what
performing with purpose is all about.”

10. Corporate Culture
 Employees
 Take initiative
 Pursue goals- without too much structure
 Easy access to higher management
 Allows ideas to be heard

11. Corporate Culture
 Encourage diversity
 Respect for one another
 unique traits, backgrounds, perspectives and experiences.

12. Strengths
 Branding-Pepsi is one of the most widely recognized
brands in the world with 150 million in annual sales
 Tremendous growth from diversification such as: Lay’s
chips, Mountain Dew, Tropicana, Aquafina and others
 Broad Product base allows for stability with
fluctuating market and economic conditions
 Presence in over 100 countries

13. Weaknesses
 Overdependence on Wal-Mart, which accounts for
over 12% of Pepsi’s yearly net revenue
 Wal-Mart’s business strategy influences Pepsi to keep
prices low to maintain present contracts
 Despite international presence, 52% of market share
originates in the US, leading to reduced production
during periods of economic weakness

14. Opportunities
 Expansion into Europe with the acquisition of Vwater
in the UK and Lebedyansky in Russia.
 Partnership with Unilever is expected to see continual
growth (Lipton Teas)
 Bottled beverage sales including Aquafina and propel
are expected to peak at the end of this year generating
24 million alone.

15. Threats
 With increasing health concerns, carbonated drink
sales have been in continual decline.
 Intense competition from Coca-Cola has decreased
market share
 Coca-Cola beat Pepsi in non-carbonated juice sales
last year

16. Competitive Advantage
 Advertises towards the “New Generation,” “Generation
Next,” or “The Pepsi Generation”
 Bought several fast food restaurants

17. Competitive Advantage
 PepsiCo customers buy their products because of
taste, price, packaging, promotional factors, and a
wide variety of brands
 They will be the first to use Ace-K
 A break through in sweeteners for diet sodas