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Internal Analysis of Pepsi

Internal Analysis of Pepsi

PepsiCo is comprised by three major divisions namely PepsiCo America Beverages, PepsiCo Americas Foods, and PepsiCo International. PepsiCo America Beverages includes beverage business in North America and Latin America. PepsiCo brands are made available in more than 200 countries, generating sales at the retail level of more than $100 billion. Its beverage product line includes Tropicana, Gatorade, and its own bottled water product Aquafina. Aquafina is distributed across United States, Canada, and a handful of Asian countries. PepsiCo’s Aquafina reached a milestone as it became the United States best-selling bottled water product in terms of measured retail channels. Aquafina utilizes PepsiCo’s trademark seven-step purification system called HydRO-7. HydRO-7 is a water purification procedure that undergoes ozonation, reverse osmosis, and charcoal filtration. Unlike some bottled water products, Aquafina boasts of its wide array of flavored water variants such as Aquafina Sparkling, Aquafina FlavorSplash, Aquafina Alive, and Aquafina Plus. The product is available in 12-fluid ounce, 500-milliliter (16.9 fl oz), 20-ounce, 24-ounce, 1-liter, and 1.5-liter bottles, making it a versatile product in order to meet consumer diversity and preferences (PepsiCo, 2008).

Pepsico has a significant competitive advantage over its rivals who use Total Quality Management such as the Coca-Cola Company.

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Pepsico has big distinct brands, innovative differentiated products, and efficient go-to-market systems (Light, 1999). The firm’s wide array of competitive advantages is the key to Pepsico’s net profit generation. Pepsico maximizes these competitive advantages in order to generate substantial revenues from top-line growth and progress, as well as cost-saving initiatives. Pepsico’s value cycle is sustained by its internal and external operations in order to please shareholders. Traditional management has done it for Pepsico, investing in its research and development division in order to enhance its brands. Traditional management has augmented the company’s brand management as well. Partial revenues are reinvested in order to allocate essential funding for new products, and for its R&D purposes (Brady, 2004).

Pepsico’s main rival, Coca-Cola uses Total Quality Management in its operations. TQM is a business management strategy that instills quality in all of its organizational procedures and benchmarking. Coca-Cola uses its Code of Conduct to spearhead its Total Quality Management in its company operations. The Coca-Cola Company owes the success of its internal operations to its principles of corporate responsibility. The firm has incorporated an apt ethics program; this will guide their employees, and ensure them growth, achievement, and satisfaction for their jobs. In order to make this possible, The ideology of corporate responsibility is moderated and promulgated by the Public Policy and Corporate Reputation Council. The Council is comprised by a group of senior managers from each beverage and bottling company in the industry. It ascertains the risks and opportunities that each company in the industry encounters. The PPCR Council advises beverage companies in their employee management and operations. Feasible business strategies are generated in order to achieve growth and progress for beverage companies like the Coca-Cola Company (The Coca-Cola Company, 2008).

The Coca-Cola Company firmly adheres to its Code of Business Conduct. The Code of Business Conduct guides the workforce and top management of the firm. The company’s Code of Business Conduct the very thrust of the ethics and compliance program of Coca-Cola. It promulgates integrity and honesty in all aspects of the company. The firm makes it an obligation for its directors and senior associates to comprehend and fully understand the code, and its relation to the company’s growth and progress. The company’s Ethics and Compliance Committee serves as the administrator of the Code. It ensures that the Code is implemented on the entirety workforce; it reminds the workforce that the compliance program of the company is a crucial aspect of the growth and progress of the company. The Code is a crucial aspect that concerns the firm’s holistic operations as well. It sustains the firm’s benchmarking in order to operate under apt standards (The Coca-Cola Company, 2008).

            The Code of Business Conduct has been the beacon of guidance for the Coca-Cola Company. It does not only promote benchmarking for the firm, but also urges aspects of financial integrity, competitive intelligence, and workplace behavior. The compliance program, which has been launched in order to augment the promulgation of the Code has been the linchpin for supporting policies, training, and audits for the entire workforce. The firm believes there is no Coke without the presence of its prolific employees, which is the major force behind more than satisfactory results for the growth and progress of the company. Its operations are bolstered by innovative thinking, unique perspectives, and operational excellence of the workforce, which sustains profit margins of the firm as well as its image. With this in mind, the company recognizes the crucial role of its workforce plays in its worldwide operations. The Coca-Cola Company puts a premium on job satisfaction. The firm ensures that the Coca-Cola workplace is an environment where people can generate excellent input and augment their performance while enjoying what they do (The Coca-Cola Company, 2008).

            In order to make Pepsico adhere to the principles of Total Quality Management, the firm should incorporate the best compensation and benefit programs in the world. Pepsico’s benchmarking extends from its operations to its compensation programs. Furthermore, the firm has launched the Pepsico Forum, which provides as a melting pot for all the managers and associates of the firm. With the help of the Peak Performance System, the firm’s performance management has been able to collaborate with a plethora of development forums made up of managers and directors that will share their ideas and plans for the betterment of the firm’s operations. At Pepsico, employees should be more than subordinates; Pepsico’s workforce is the very ideology of the company itself (Pepsico, 2008). With this in mind, Total Quality Management can be realized at Pepsico.

Reference

Brady, D. (2004). A Thousand and One Noshes; How Pepsi deftly adapts products to changing

consumer tastes. Business Week. New York: June 14, 2004., Issue 3887: page 54

Pepsico. (2008). Company Overview. Retrieved September 27 2008, from

http://www.pepsico.com/PEP_Company/index.cfm

The Coca-Cola Company.(2008).Governance & Ethics. Retrieved September 27,2008, from

            http://www.thecoca-colacompany.com/citizenship/governance_ethics.html

Light, L. (1999). Now Thats a Pepsi Challenge. Business Week. New York: May 3, 1999., Iss.

3627; pg. 151

 

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