Premium Essay

Swot Analysis of Pepsico.

In: Business and Management

Submitted By smrfdady
Words 1409
Pages 6
PepsiCo is a dominant player in the global beverage and snack food business. PepsiCo has interest in other categories throughout the food categories. PepsiCo has a significant market share in various countries around the world. They have positioned themselves for success despite challenging global economics. PepsiCo has room for improvement despite their strong global position.

Strengths PepsiCo is a dominant player in the beverage and snack foods industry. They are the number one snack food company in the world. PepsiCo has twenty two brands in their portfolio that have over one billion in revenue per year (PepsiCo, 2013). This is a strong figure considering the vast amount of competition there is in each of the categories mentioned. PepsiCo. offers a diverse number of products. PepsiCo has acquired or developed brands that are tailored to each region and country that they serve. Not only are the brands different, but the flavors and products offered within these brands are different. The products and flavors are matched to the area in which they are distributed. Being in both the beverage and snack food businesses, they offer complimentary products. The two categories go hand in hand. Pepsi and Frito Lay chips are seen advertised together. This is a double win for the company. PepsiCo has managed and executed successful marketing plans. PepsiCo has placed successful advertisements that have rated among the top ads that ran during the Super Bowl for many years. PepsiCo tries to stay on the cutting edge with their ad campaigns. They products sell themselves, but the advertisements enhance the product exposure and may even draw a different demographic. PepsiCo has partnered with Taco Bell to offer an exclusive Mountain Dew flavor, Baja Blast. They have most recently introduced its top chip flavor as a taco shell for Taco Bell. The Locos Nacho Dorito…...

Similar Documents

Free Essay

Pepsico Business Analysis

...PEPSICO BUSINESS ANALYSIS SWOT ANALYSIS¬¬ Strengths Diverse product range 22 product lines each contributing over 1 billion in revenue (soda, juice, water, to snack foods)(Lambert, 2012, Hoovers) One of the most acknowledgeable brands in the world (PepsiCo.com) Available in more than 200 nations (PepsiCo.com) Weaknesses (Lambert, 2012, Hoovers) Lower productivity compared to Coca-Cola Over dependence of big retail Decline in soda taste Core Competencies (Lambert, 2012, Hoovers) Working towards appealing to consumers changing taste Leading the way into health conscious drinks and health conscious snacks Mass production Effective manufacturing and distribution system Competitive Advantage (PepsiCo.com) Customer Acceptance Wide product range Their Logo/Brand has been around for over 100 years and is considered a household name. Acquisition of bottlers Opportunities (PepsiCo.com) Brand management (Starbucks, Lipton)(PepsiCo.com) Healthier products for both snack lines and drink lines (PepsiCo.com) PepsiCo is taking advantage of growth in other countries such as China, Latin America, and other underdeveloped nations which are virtually untouched by rivals and have huge potential. In China PepsiCo is catering to the local tastes in snacks. Threats (Yahoo Finanace) Coco-Cola being the number one brand of North America is PepsiCo’s largest competitor. Drop of sales in soda Private-label products Government......

Words: 1194 - Pages: 5

Premium Essay

Financial Analysis – Pepsico Inc.

...Financial Analysis – PepsiCo Inc. In 1893, a pharmacist named Caleb Bradham invented a tonic, which he called "Brad's drink". This drink was carbonated and contained sugar, vanilla, rare oils, pepsin, and cola nuts. Bradham sold his drink at his pharmacy's soda fountain and by 1898, "Brad's drink" had been renamed to Pepsi Cola (Zokawics, 2007). Pepsi existed on the brink of ruin under various owners until Loft Candy bought it in 1931. Its fortunes improved in 1933 when, in the midst of the Depression, it doubled the size of its bottles to 12 ounces without raising the five-cent price. In 1939 Pepsi introduced the world's first radio jingle. Two years later Loft Candy merged with its Pepsi subsidiary and became The Pepsi-Cola Company. PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from just the Pepsi product to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001, which also added the Gatorade brand to its portfolio as well. As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the company’s products were distributed across more than 200......

Words: 2047 - Pages: 9

Premium Essay

Pepsico Swot Analysis

...PepsiCo Business Analysis: Part 1 Mufuliat Adeseun Management 521 November 5, 2012 Dr. Olivia Herriford PepsiCo Business Analysis: Part 1 When making any investment decision, it is important for a potential investor to gain insight into the company. An evaluation of the company’s strengths, weaknesses, opportunities, and threats will help the investor determine if the venture is worth going into (Nickels, McHugh & McHugh, 2010). It also provides details about the internal status of the business and the future growth to expect in the future. SWOT Analysis Conducting a SWOT analysis of PepsiCo will help the company determine where change is possible. If the company is at a turning point, an inventory of its strengths and weaknesses can reveal possibilities. The identified strengths can be built on and used to their full potential and makes can be made to reduce the weaknesses. Potential problems that need to be addressed or at least recognized are identified. It will help PepsiCo discover what it does well, could improve, whether they are making the most of the opportunities around them, and whether there are any changes in the market that may require changes in the business (Nickels et al., 2010). Strengths PepsiCo has a diverse product portfolio that includes foods, snacks, and beverages with annual revenue of over $66 billion. The PepsiCo brands such as Pepsi, Gatorade, Tropicana, Mountain Dew, Lay’s, Aquafina, Sierra Mist,......

Words: 1825 - Pages: 8

Premium Essay

Mgt521 Pepsico Business Analysis I

... PepsiCo Business Analysis: Part I Management/MGT-521 Dr. Olivia Herriford PepsiCo Business Analysis: Part I PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $65 billion and more than 285,000 employees. The company headquarters are in Purchase, New York. PepsiCo products can be found in nearly 200 countries around the globe. The company has 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending (PepsiCo, 2012). A SWOT analysis of a company is an important piece for an investor to determining if it is possible invests in a company and have a viable return of this inversion. This analysis will help to understand if the company is achieving its goals and objectives. Another important point would be identifying the company stakeholder and how the needs of those stakeholders are meet. SWOT Analysis Conducting a SWOT analysis of PepsiCo will determine the current status and strength for a potential investor. A SWOT analysis is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats ((Nickels, McHugh, & McHugh, 2010). Strengths PepsiCo has 22......

Words: 1675 - Pages: 7

Premium Essay

Benchmarking Analysis of Pepsico

...Benchmarking Analysis of PepsiCo MGT 521 December 3, 2012 Watler Goodwyn Benchmarking Analysis of PepsiCo It is hard to tell what company to invest in until a person starts calculating their financial ratios. A company may have high revenues; however, that does not mean that they are fiscally responsible for those revenues. I was surprised to notice that just because the company may do good on the current ratio or earnings ratios that does not necessarily mean that they are financially stable. A person cannot look at one or even a few ratios to determine if a company is financially sound. Many ratios have are pulled to determine the financial stability of the company. I used a variety of ratios to use for analysis. I pulled a Current Ratio, Acid Ratio, Debt Ratio, Return on Sales, Return on Equity, Inventory Ratio, Cash Conversion Cycle and Net Income Per Share on the companies of Pepsi Co, Coca Cola, Dr. Pepper Snapple Group and Mondelez International. Because the company I had selected to analyze was PepsiCo, I know that I needed to diversify the companies I selected between food and beverage because the company covers both markets. Coca Cola is the top beverage distributor in the world, Pepsi Co is second and Dr. Pepper Snapple Group is the third. Mondelez International is a food company that is a recent spin-off from Kraft Foods. It has some familiar name brands of......

Words: 1794 - Pages: 8

Premium Essay

Pepsico Financial Statements Analysis

...SCHOOL OF ECONOMICS AND MANAGEMENT CORPORATE FINANCE: PEPSICO Corporation ratio analysis Name: Nguemhe Ngouem Jacques Ludovic Chinese name: 罗维克 Student number: 220123833 Country: Cameroon PEPSICO Balance Sheet | | | View: Annual Data | Quarterly Data | in thousands | Period Ending | Dec 30, 2011 | Dec 24, 2010 | Dec 25, 2009 | | Assets | Current Assets | | Cash And Cash Equivalents | 4,067,000   | 5,943,000   | 3,943,000   | | Short Term Investments | 358,000   | 426,000   | 192,000   | | Net Receivables | 6,912,000   | 6,323,000   | 4,624,000   | | Inventory | 3,827,000   | 3,372,000   | 2,618,000   | | Other Current Assets | 2,277,000   | 1,505,000   | 1,194,000   | | Total Current Assets | 17,441,000   | 17,569,000   | 12,571,000   | Long Term Investments | 1,477,000   | 1,368,000   | 4,484,000   | Property Plant and Equipment | 19,698,000   | 19,058,000   | 12,671,000   | Goodwill | 16,800,000   | 14,661,000   | 6,534,000   | Intangible Assets | 16,445,000   | 13,808,000   | 2,623,000   | Accumulated Amortization | -   | -   | -   | Other Assets | 1,021,000   | 1,689,000   | 965,000   | Deferred Long Term Asset Charges | -   | -   | -   | | Total Assets | 72,882,000   | 68,153,000   | 39,848,000   | | Liabilities | Current Liabilities | | Accounts Payable | 11,949,000   | 10,994,000   | 8,292,000   | | Short/Current Long Term Debt | 6,205,000   |...

Words: 2210 - Pages: 9

Premium Essay

Swot Analysis

...SWOT Analysis อาจารย์อาทิตย์ วงษ์สง่า .............................................................................................................................................................................. 1. บทนา ปัจจุบันการวางแผนกลยุทธ์หรือ Strategic Planning เป็นสิ่งที่ได้มีการนามาใช้กันอย่างแพร่หลาย มาก ทั้งในกิจการด้านการทหาร ด้านการศึ กสงคราม ด้านการเมืองระหว่างประเทศ และโดยเฉพาะในการ บริหารงานภาคธุรกิจเอกชนนั้นถือได้ว่าประสบความสาเร็จสูงมาก ก้าวหน้าและเป็นที่กล่าวขวัญถึงกันมาก สาหรับวงงาน/วงการราชการก็จาเป็นต้องมีการวางแผน/จัดทาแผนกลยุทธ์เช่นเดียวกับวงการธุรกิจเอกชน ทั้งนี้ นอกจากส่วนราชการจะต้องปฏิบัติตามพระราชกฤษฎีกาว่าด้วยหลักเกณฑ์และวิธีการบริหารกิจการ บ้านเมืองที่ดี พ.ศ.2546 มาตรา 9 มาตรา 13 และมาตรา 66 แล้ว ยังจะต้องคานึงถึงความอยู่รอด (Survive) และ ความก้าวหน้า (Growth) ของส่วนราชการในอนาคตอีกด้วย การวางแผนกลยุทธ์เป็นการวางแผนที่มีการกาหนดวิสัยทัศน์ มีการกาหนดเป้าหมายระยะยาวที่แน่ ชัด มีการวิเคราะห์อนาคตและคิดเชิงการแข่งขัน ต้องการระบบการทางานที่มีความสามารถในการปรับตัวสูง ส าหรับ การท างานในสิ่ ง แวดล้ อมที่ มี ก ารเปลี่ ย นแปลงอย่ างรวดเร็ วเพื่ อให้ทัน และสามารถเผชิ ญกั บ การ เปลี่ยนแปลงที่จะเกิดขึ้นในอนาคตได้ และในการวางแผนกลยุทธ์นั้นสิ่งที่สาคัญและจาเป็นสาหรับองค์กรคือ “การกาหนดกลยุทธ์ ” สาหรับใช้ในการทางานเพื่อการบรรลุวัตถุประสงค์ของงาน โดยกลยุทธ์ของแต่ละ องค์กรจะถูกกาหนดตามธรรมชาติและลักษณะขององค์กรนั้น ๆ ทั้งนี้ องค์กรจะสามารถกาหนดกลยุทธ์ได้นั้น ต้องรู้สถานภาพหรือภาวะขององค์กรของตนเสียก่อน และนอกจากนั้นยังต้องมีกระบวนการกาหนดกลยุทธ์ที่......

Words: 645 - Pages: 3

Premium Essay

Swot Analysis - Pepsco

...| SWOT Analysis - The Pepsi Company | Unit 2 - Assignment | | Alicia Rucker - 191951 | 2/15/2013 | | SWOT Analysis of Pepsi Company The Pepsi Company or PepsiCo is a global corporation which manufactures, distributes and markets beverages, snacks and other products. When looking at the net revenue of all the beverage and food companies worldwide, the PepsiCo ranks as the second. However, when compared to only those food and beverage companies within the United States, the PepsiCo is number one. Just in the 2009 alone, PepsiCo's revenue on just 19 of their products brought in over $1 billion each in revenue. (www. mba-posts.blogspot.com) Just reviewing their revenue statements and reading their mission statement “At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business.” (www.pepsico.com) one can clearly see the PepsiCo Corporation is not only looking out for their customers, but the way they manage their strategy is definitely working for them. Strengths * Ranked at #1 in the United States of America * 19 of PepsiCo’s products achieved over $1 billion in revenue each. * Offers wide variety of nationally known products from soft drinks to snacks * In retail sales alone PepsiCo as a daily revenue of over $300 million a day * The PepsiCo potato chip called “Banner Sun” has an annual retail sale of over $10 billion * Unlike its competitors,......

Words: 1020 - Pages: 5

Premium Essay

Pepsico Case Analysis

...PepsiCo Problem PepsiCo’s business strategies were working out very well for them except for in their international operations. The international segment had relatively low profit margins which meant that PepsiCo needed to implement a new organizational structure that would better utilize strategic fits between the company’s international operations. Also, the operating margins and profitability across the different geographic areas and product lines varied a lot for PepsiCo. Gaining some more stability throughout each area and product line would increase the company’s growth and strength within their targeted markets. Situation Analysis In 1997 PepsiCo set out to accomplish a major portfolio restructuring through acquisitions, product innovation, international expansion, and close relationships with distribution allies. All of this restructuring proved positive for the company and they saw success in many areas. They saw their international snack volume grow by 9 percent and the international beverage volume increased by 8 percent in 2007. However, PepsiCo’s international operations were much less profitable than its businesses operating in North America. The company did notice opportunities for growth in these international markets, though. PepsiCo executives expected that, by 2010, China and Brazil would be the two largest international markets for snacks. They also found that it could grow international sales through its Power of One Strategy. Through research PepsiCo...

Words: 1046 - Pages: 5

Premium Essay

Swot Analysis

...SWOT Analysis Yadira Saunders BUS/211 July 13, 2015 Professor Suzanne Remedies SWOT Analysis With today’s economy taking a toll on many families and individuals lifestyle, it is becoming even more difficult to convince consumers that you, as a business, are what they are looking for. As both economy and business markets rise and fall in nature, businesses must determine “the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. This process is known as strategic planning” (Aqeel Ahmed Khan, 2014). The organization policies are broad guidelines for action and its strategies determine the best way to use the resources at hand. When preparing a business plan it is optimal for the organization to ensure they are aware of what customers they will be serving, when they will be able to provide service, what products and services to sell, and the geographic area in which they will compete for business. Strategic planning is becoming more difficult because changes are occurring so fast that plans, even those set for months into the future, may soon be obsolete. Small-business owners often find themselves in a rapidly changing environment, anticipating trends and determining the best strategies and tactics to achieve the goals set forth may be the ultimate option. The predictable change and strategy to react along with forthcoming change should be included within the business plan. A business plan contains...

Words: 731 - Pages: 3

Premium Essay

Pepsico - a Financial Analysis

...PepsiCo, Inc. Part 1: Analysis of Financial Performance By: Randal D. Jenkin Columbia College BUSI 570 Managerial Finance Professor: Dr. Diane Suhler March 2014 Table of Contents Brief History 3 Balance Sheet 4 Income Statement 5 Cash Flow Statement 5 Liquidity 6 Profitability 6 Leverage 7 Working Capital 7 DuPont Analysis 8 Industry Analysis 9 Summary 11 Resources 12 Appendix 13 History PepsiCo is a large, international food and beverage conglomerate headquartered in New York that began as a soft-drink company. The formula for Pepsi-Cola was created by pharmacist Caleb Bradham in 1898 and the Pepsi-Cola Company was formed in 1902 as the drink began to grow in popularity. Bradham registered a patent for the formula of Pepsi-Cola in 1903, but the company went bankrupt during the Great Depression in 1931. That same year, the trademark and recipe for Pepsi-Cola were purchased by Charles Goth, the president of the Loft Candy Company and Pepsi was rebranded and distributed through Loft’s chain of retail candy and ice cream stores. Loft spun their retail stores off and began to focus solely on Pepsi-Cola and developed new soft drinks like Diet Pepsi and Mountain Dew in the 1960s. The Pepsi-Cola Company merged with snack food company Frito-Lay in 1965 to become PepsiCo. Through numerous acquisitions and periods of growth,......

Words: 5080 - Pages: 21

Premium Essay

Swot Analysis

...SWOT Analysis Toni Dominguez BUS/210 August 10, 2014 Melanie Wright SWOT Analysis A SWOT analysis is used to identify the strengths, weaknesses, opportunities, and threats of a business. Hill  (n.d.) " SWOT analysis is a process where the management team identifies the internal and external factors that will affect the company’s future performance" (para. 1). A SWOT analysis is typically used at the beginning stages of the business, after a business plan has been completed, to determine any potential risks or assets. However, an analysis can be completed anytime a change is made internally or externally that can impact the business and is recommended for review of your business every 6 months (Shouldis, 2012).. The Java Culture coffee has completed their business plan for a new coffee shop in a prime location near University of Oregon. They are looking to provide a comfortable and relaxing shop for customers to enjoy coffee with friends while providing excellent customer service. The owners have secured their financing, determined their budget for employees and the day to day needs of the business, lease, and forecasted sales based off the market for the first year. Now the owners will need to complete a SWOT analysis to determine any unseen risks or assets to their business that might be impacting to their success. A SWOT analysis will start with the strengths in the business. In reviewing the business plan for the Java Culture coffee shop they have......

Words: 875 - Pages: 4

Premium Essay

Swot Analysis

...How a SWOT analysis can help companies maximize their marketing strategies in a global context 1 By Chris Hopkins Introduction Business today relies on the ability of a company to grow. With the product saturation in today’s market, businesses are looking to expand globally in an effort to expand their business and continue making a profit. This paper will look at how a SWOT analysis can help companies maximize their marketing strategies in a global context. Section 2 The way that businesses have looked at marketing has changed with introduction of social media and the internet. Customers can readily compare on line different products and shop for the best bargain all in the comfort of their home. As the economy weakened, businesses have looked at expanding globally to make up for the loss of profit. International marketing managers are faced with the challenge of how to cope with the new scope of operations and if they can apply what works domestically with also work in a foreign environment. (Wind, Yoram; Douglas, Susan P.; Perlmutter, Howard V (1973)) Companies looking at expanding into the global market must look at the country they wish to expand into. They must have total understanding of the country’s government, legal and trade regulations, exchange rates, and the culture of the various consumers they are trying to reach. First the company has to define its......

Words: 1023 - Pages: 5

Premium Essay

Pepsico Segment Reporting Analysis

...(LAF), PepsiCo Americas Beverages (PAB), Europe, and Asia, Middle East & Africa (AMEA). Its best-known competitor, Coca-Cola, identified seven reportable segments: Eurasia and Africa; Europe; Latin America; North America; Pacific; Bottling Investments; and Corporate. Why does FASB require companies to disclose information by geographic area? In other words, how is geographic information valuable for financial statement users? For what geographic areas must a company provide disclosure? What geographic disclosures does Pepsi provide? What can you learn about PepsiCo from studying this information? The FASB requires companies to disclose information by geographic areas because financial information about the operations of the company’s divisions in different geographic areas assists stakeholders in understanding concentrations of risks and prospects for growth due to changes in economic conditions. Disclosure by geographic area assists stakeholders in understanding concentrations of risk due to all type of changes specific to those geographic areas (political, economic, environmental, and other types of changes). A company must provide disclosure for its country of domicile and for all foreign countries in total, but only if it is practical for it to do so. Pepsi goes beyond and provides disclosure for the United States (country of domicile), Mexico, Canada, United Kingdom, Russia and Other. The segment named “Other” includes all other geographic locations PepsiCo......

Words: 2222 - Pages: 9

Premium Essay

Swot Analysis

...Advantages and disadvantages of using SWOT analysis to develop corporate strategy. Discuss using examples related to at least two companies. Introduction SWOT analysis SWOT analysis can also be called as SLOT analysis which is a strategic planning or direction for making decision based on available resources to determine valuate the Strength, Weaknesses/limitations, Opportunities, and Threats involved in a project or in a small business (business venture). It mentions the objective of business or a collaborative  enterprise project and recognizes the internal, external factors which come in the achieving of objective. This method of analysis is prepared by an American businessman and a management consultant named Albert S Humphrey (Stanford University in the 1960s and 1970s). An objective of a project or a business venture should be only started after the SWOT analysis has been carried out. It would be easy for the organization to achieve its targets/objective. With the help of SWOT analysis decision makers are able to ascertain after a calculation that whether the objective they are planning is capable of been done or not. If not they must choose the distinct objective and the process is done over again. (Source : http://www.google.co.uk/imgres?imgurl=http://swotanalysistemplate.com/wp-content/uploads/2010/04/Slide5.jpg&imgrefurl=http://swotanalysistemplate.com/&h=302&w=604&sz=36&tbnid=ntJM-sR_xbjS7M:&tbnh=61&tbnw=121&prev=/sea...

Words: 3937 - Pages: 16