Good Example Of Pepsi Essay

Pepsi is a leading brand in the world dealing with the food, beverages, and snacks. Pepsi comprises of the most admired brands of the world, which are Mountain Dew, Pepsi Cola, Tropicana, Lays, Quaker, Doritos, and Diet Pepsi. These brands are available globally. The globalization and technology is exerting greatly impacting the company. Globalization has enabled Pepsi to survive in the saturated markets of the United States of America, to enter into the emerging economies, and to compete effectively with the rivals such as Coca Cola, which is the biggest competitor of the Pepsi. Further, globalization has enabled Pepsi to achieve more growth opportunities. Further, the company is emphasizing greatly on the preferences of the consumers in order to remain competitive worldwide. The success of the multinational cooperation depends on the capability of responding to the consumer trends such as the attributes of the product, consumer concern for the obesity, and the ingredients of the product. Globalization has also make the company competent enough to enter into the foreign market via joint venture, wholly owned subsidiary, licensing, franchising, and Greenfield investment.
Moreover, Pepsi is also harnessing technology in order to deliver the product throughout the world. The adoption of the wireless technology has enabled the company to improve its method of conducting business particularly in the areas of brand management and sales. This technology has enabled company’s salespeople to differentiate the brand, to pre-sell the products, and attain a better self placement in the stores. Further, technology has enabled the company to effectively communicate with the internal and external stakeholders, and ensured better management via GPS tracking system (Kruz, Stratigakis & Hunt, 2004). The video technology has enabled the company to communicate with the headquarters. Further, because of the technology, Pepsi is constantly innovating, introducing new products, and focusing on the marketing and advertising campaigns.
The Industrial Organization Model considers environmental analysis by considering general environment, industry environment, and the competitor environment (Heracleous, 2003). It describes the external environment, attractiveness of the industry, formulation of the strategy, assets and skills, implementation of the strategy, and superior returns. The Resource based model focuses on the resources, capability, competitive advantage, an attractive industry, strategy formulation, and superior returns of the company. In order to apply the Industrial Organizational Model on Pepsi, the external environment, which comprises of political factors, economic factors, social factors, technological factors, legal and environmental factors that exert their influence on the company are described.
The political factors that are impacting Pepsi are government stability in different countries, rules and regulations relating to employment, health and safety, proposals for tax policy and rates. The economic factors that are influencing the company include income inequality, rapid and constant fluctuations in the exchange rates of currency, inflation rate, changes in the raw materials’ prices, unemployment rate, monetary and the fiscal policies. The social factors comprise of the changes in the attitudes of the customers towards the carbonated beverages, increased focus on the healthy living, and consumer consciousness regarding green packaging. The technological factors such as introduction of the internet-based technology, and innovations on the research and development activities are also positively influencing the company for achieving its major objective of maximization of profit. The legal factors that impact Pepsi are modifications in the regulations of the Food Standard Agency or FSA, Federal laws, rules and regulations particular to the beverage and food sector, and the protection of IP, i.e., Intellectual property. The environmental factors such as packaging activities, increased significance of the use of the alternative sources of energy, and impact of the global warming on the drinking patterns of consumers, also exert their impact on business of Pepsi. These factors are helping the company to analyze the market effectively and earn above average returns as it is evident from the Annual report of Pepsico (2003) of the company that the company’s profitability and revenue have increased in 2103 as compared to 2011, and 2012, and despite of the challenging external environment that include economic instability, ambiguity and uncertainty in several major markets, the company has successfully achieved its financial goals.
Additionally, in terms of the resource based model, the company is effectively utilizing its resources, and capabilities in order to achieve competitive advantage in accordance with strategy of company, and ensuring superior returns. The company is making important investments behind its main brands that are known at a global level. In order to effectively utilize its capabilities and resources, the company has moved from the loose federation of the regions to an effectual model. Pepsi has fine tuned its innovative machines in order to increase their rate of the innovation and success (Pepsico, 2013).
The mission statement of the company serves as a vehicle in order to communicate the directions, ideals, and purpose to the external and internal stakeholders (Harrison & St. John, 2009). The vision indicates what a company wants to become. The vision statement explicitly defines the reason of the company for being in the business (Hill. & Jones, 2011). The mission and vision of Pepsi play a significant role in influencing the overall success of the company; the mission of Pepsi is to become a company of consumers’ products at a global level providing beverages and convenient foodstuff. The company focuses on the provision of the financial rewards the investors, as it gives the growth opportunity to the employees, communities, and business partners. The company emphasize on fairness, honesty, and integrity in all the dealings (Pepsico, 2014).
The vision of Pepsi is to ensure continuous growth by making investments for the improved future for individuals and planet. The vision of the company focuses on benefitting the society, shareholder, and environment.
It can be analyzed from the mission and vision statement of Pepsi that the company considers and emphasizes on the performance with objective and purpose. The company is committed to achieve financial and business success by creating a positive image on the society via its mission and vision. The company has adopted an approach of achieving superior performance financially, and driving the value of shareholders. The company is focusing on addressing the environmental and social issues in order to ensure sustainability of the environment, people, talent, and the company as a whole. Furthermore, Pepsi is considering the needs are requirements of its stakeholders. The stakeholders play significant role in the success of an organization. The internal stakeholders of Pepsi are employees, managers, directors and owners. The external stakeholders of Pepsi are suppliers, customers, society, and government.
The managers and directors of the Pepsi aim to achieve the profitability, benefits, creating long term health of the company, growth, and make the shareholders happy. The employees of the company with their values and skills are working in order to achieve the strategic objective of the company in order to ensure overall success of the company. The suppliers of the company are also working in an effectual manner in order to sustain the image of the company. The customers of Pepsi include retailers and distributors, as the company does not directly provide the products to the customers. The company provides benefits and incentives to the customers, which in turn are making efforts in order to increase the market share of the company. The society provides many favorable features for the company to expand their business, and the government also encourages the growth of business by reducing the taxes and lowering the prices of the raw material, which are ensuring overall success and growth of the company.

References

Kruz, W., Stratigakis, A., & Hunt, G. (2004). The High Performance Enterprise. Trafford Publishing, Canada
Harrison, J., & St. John, C. (2009). Foundations in Strategic Management. Nelson Education Limited, Canada
Heracleous, L. (2003). Strategy and Organization: Realizing Strategic Management. Cambridge University Press: Cambridge
Hill, C., & Jones, G. (2011). Essentials of Strategic Management. Nelson Education Limited, Canada
Pepsico. (2013). Annual Report. Retrieved from :
http://www.pepsico.com/Assets/Download/PEP_Annual_Report_2013.pdf
Pepsico. (2014). Our Mission and Values. Retrieved from:
http://www.pepsico.com/Purpose/Our-Mission-and-Values