Back ground information about PepsiCo company
Firm History
* In 1965: PepsiCo, Inc. is founded by Donald M. Kendall, Presidentand CEO of
Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay,through the
merger:
* 1. Pepsi-Cola In 1898: Caleb Bradham, a New Bern, North Carolina,pharmacist,
created "Brad's Drink," a carbonated soft drink he created to servehis drugstore's
fountain customers.
* 2. Frito Company
* 3. H. W. Lay Company.
* The Major products of the companies are: Pepsi-Cola Company,Fritos brand
corn chips, Lay's brand potato chips, Cheetos brand cheese flavoredsnacks,
Ruffles brand potato chips, Rold Gold brand pretzels. MountainDew.
Growth
1966: Doritos is introduced, Pepsi enters Japan and EasternEurope.
1970: PepsiCo moves from New York City to new world headquarters inPurchase, N.Y.
Pepsi is the first company to respond to consumer preference withlightweight,
recyclable, plastic bottles.
1977: PepsiCo acquires Pizza Hut, Inc
1978: Taco Bell
1980: PepsiCo Food Service International (PFSI) is formed to focuson overseas
development of restaurants.
1982:
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-freecolas, are introduced.
Inauguration of the first Pepsi-Cola operation in China.
1985: PepsiCo is now the largest company in the beverage industry.The company has
revenues of more than $7.5 billion, more than 137,000 employees.Pepsi-Cola products
are available in nearly 150 countries and territories around theworld. Snack food
operations are in 10 international markets
1986: PepsiCo purchases 7Up International, the third largestfranchise soft drink
operation outside the United States.
1993: Pepsi-Cola introduces Aquafina bottled water into testmarket.
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1996: Pepsi-Cola launches Pepsi World at www.pepsiworld.com
Global : Pepsi products are in almost 200 countries throughout theworld. There are 22
different brand lines that account for at least $1 billion per yearper brand
2009: Celebrated 75 years in Canada, Was on the “Best Food forWomen” list in
Women’s Health magazine, Began a partnership with the NFL, Won U.S.EPA Smart
Way Environmental Excellence award, Became official beverage ofNorwegian Cruise
Lines.

Vision statement
Our vision is put into action through programs and a focus onenvironmental stewardship,
activities to benefit society, and a commitment to buildshareholder value by making
PepsiCo a truly sustainable company.

Mission Statement
Our mission is to be the world's premier consumer products companyfocused on
convenient foods and beverages. We seek to produce financialrewards 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.
Vision statement
Our vision is put into action through programs and a focus onenvironmental stewardship,
activities to benefit society, and a commitment to buildshareholder value by making
PepsiCo a truly sustainable company.
External Assessment
Opportunities
1. Opening in market for less costly products
2. Growth opportunities in developed countries as well asinternational non established
countries
3. Pepsi recently reacquired ownership of its two largest bottlers,Pepsi Bottling Group
(PBG) and PepsiAmericas (PAS)
4. Compete in more than one industry (non-alcoholic beverageindustry, the salty or
savory snack food industry, and the breakfast food industry)
5. Growth in the carbonated drink market is the largest in Asia andEurope
Threats
1. Fierce competition from Coca-Cola, which owns the largest pieceof the market share
2. The downturn in economy, which lead customers to shift away frombottles of water to
tap water.
3. Because of the recession, customers are finding cheaperalternatives to the national
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brands.
4. Customers are getting more conscious and concerned about theireating habits and
general health.
5. Campaign against plastic containers has impacted the sale ofbottled beverages
Internal Assessment
Strengths
1. Strong brand equity
3. highly Innovative company
4. Ethical, socially responsible, and sustainable company
5. Strong advertising company with more than 40 slogans andsongs
Weaknesses
1.PepsiCo production is really expansive because of the need toconstantly develop new
products to meet the changing customers’ demands
2. PepsiCo is experiencing a lack of focus towards Pepsisodas
3. PepsiCo is experiencing product recalls
4. PepsiCo has a low employment productivity and a weakdistribution
5. PepsiCo depends too much on the US market.
Critical Success factors in beverage industry
• Market Share
• Advertisement
• Price competitiveness
• Product diversity
• Company image
• Customer loyalty
• Financial position
• Sales distribution
• Product quality
• Global expansion

Q# Based on your understanding and the below given informationabout
the company, provide appropriate weights and ratings to the
strengths and weaknesses given at the end. Further, interpretthe
weighted score.