History of PepsiCo Success: From Pharmacy to Transnational Company

Introduction:

In 1893, Pepsi was produced by Caleb Bradham, a pharmacist, in New Bern, North Carolina. He made it in his drugstore when he found that it gets sold very quickly. Before it was called Pepsi-Cola in 1898, he named it Brad’s drink. He started selling Pepsi at a repository instead of his dispensary in 1903. He started his own corporation “Pepsi-Cola” for years where he faced fluctuations, successes, and failures. In 1965, PepsiCo was created by integrating Frito-Lay with Brad’s Pepsi-Cola company, and it became a multinational nibble, drink, and food corporation. For PepsiCo to keep its position between other companies, its operation administration must deliver business needs in the ten planned decision districts which are:

1. Design of Products and Services.
2. Quality administration.
3. Process and Size design.
4. Location plan.
5. Layout design and plan.
6. Job design and human assets.
7. Supply chain administration.
8. Inventory administration.
9. Scheduling.
10. Maintenance.

Body:

The current CEO and chairman is Ramon Laguarta. Ramon is the sixth CEO in the history of PepsiCo. Laguarta was working at a candy company named Chupa Chups before joining PepsiCo in January 1996. He was working in the European business of the company. In September 2017, he was named the president of PepsiCo. On August 6, 2018, the day the previous CEO Indra Nooyi announced she is leaving her position, they voted for Laguarta without him knowing to be the next CEO for PepsiCo. In October, he took her place, while in February 2019, he became the chairman. Laguarta’s three main goals since he became a CEO are to become stronger, better, and increase the rate of organic revenue growth of the company. Laguarta is a democratic CEO, and this appears in his leadership behaviors which include: voice opinions fearlessly, celebrate successes, focus to get things done faster, as mentioned in his biography in PepsiCo’s website. Ramon is a leader in which he always motivates his employees and decides their direction. And his most played role is being a disturbance handler who can handle whatever the situation the company goes through.

As it obvious that the known corona virus decreases access to food and other basic foodstuffs for societies worldwide, PepsiCo is spending more than 60 million dollars worldwide to deliver food and other necessary resources to the most affected societies. As part of this initiative, PepsiCo provides support to protect doctors, nurses, and healthcare workers. It also provided more than 50,000,000 healthy meals to people and communities at risk. They invested a lot of money in most of the countries and in many institutions to help people around the world. PepsiCo is employing dark green approach, as they fill up the water it uses with a high percentage nearly 100%, they also make sure that the water is returned back to the same place it was taken from. They also do their best to reduce their wastes. They design their packaging in a way which will make them be able to recycle them again. As a reason for all these initiatives, customers will love to deal with the company and they will have good feedback all the time, which will make their sales increase and will also make the company face a great success.

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The main growth plan used by PepsiCo is concentration plan which is focusing on a core business line and growing the amount of items sold or served in the markets. Trying to be successful in one single industry which is soft drinks is a way to secure its growth.

SWOT analysis:

• Strengths: Global presence: items are marked in over 200 countries, resulting in $43 billion in annual net sales. Good operating efficiency and capacity to disturbance: class leading delivery systems implemented in-region, meeting specific needs.
• Weakness: Coca-Cola has a greater share of the intake of carbonated soft drinks because they give their drink to more fast food restaurants.
• Reliance: Pepsi depends on bottling companies as they don’t own any bottling companies, unlike Coca-Cola.
• Opportunities: Brand Line Expansion: PepsiCo could add more items to boost market share. Attempting to enter more developing countries: PepsiCo can get more money , increase their income from entering the markets of some developing countries.
• Threats: Change in the policy environment: differences in food and drug regulations, ingredient export and import regulations can change the environment in which PepsiCo operates and can affect the outcome and raise prices and liabilities. Trade merger: Market competition can impact PepsiCo’s business.

The Value Chain is the whole sequence of corporate work activities that add value to every stride starting with the manufacturing of raw materials and finishing with the final product in the hands of end-users. There are 4 possible obstacles to successful value chain management which are:

1. People: Not being inspired to do high quality work / Lack of steadfast dedication to doing whatever it requires.
2. Organizational barriers: Refusal or inability to share data / Willingness to smash the current system.
3. Cultural attitudes: All along the chain there needs to be mutual respect and transparency about the behavior of each member.
4. Required capabilities: Absence of or inability to build the required and necessary skills in managing the value chain puts businesses at risk of loss.

The main purpose of control is to ensure that the activities are completed in ways that lead to organizational goals being achieved. The best source of information for measuring the company’s accomplishment is the oral reports as it allows for verbal and nonverbal feedback. It’s also a fast way to get the needed facts, and it allows you to ask many people.

Conclusion:

In conclusion, we can say that PepsiCo is a company which know how to be successful between all the other companies. Its culture is really a good one. People their know how to grow internationally, and they have a good strategy to do so. It has its own place despite all the weakness the may face. I see it one of the most successful companies worldwide.