Week 10 - Pepsico Case Study

WEEK 10

What are Pepsi Co’s strategic objectives? Why does the firm exists?

Pepsi Co is an American Multinational Corporation which produces food and nonalcoholic drinks and aims to be the world’s top food and beverage manufacturing company. Strategic objectives of Pepsi Co’s are as follows:

Ø  Provide products which suits people of every age group.

Ø  Conduct all activities with the sense of urgency.

Ø  Undertake investments in developing countries.

Ø  Provide food items and beverages that are healthy and nutritious as well.

Ø  Increase goodwill.

Ø  Ready to take corporate social responsibility.

Ø  Expand in other parts of world and even merge with efficient firms to increase their market.

Like every organization, Pepsi Co wishes to lengthen their profitability period, be one of the best company, along with it improve the society and the country in which they operate and even to increase the value of shareholders i.e. make more money. For these reasons Pepsi Co exists. (Paul Ziobro, 2012).

What are the possible strengths and benefits of the strategy?

Pepsi Co has been successfully achieving almost all of their strategic objectives hence; they have strengths and benefits like demand, brand image, good income and customer loyalty. All these gives the company even more motivation to do more and best. In this way the services they provide even benefits to the customers. 

What are the possible weaknesses and disadvantage of the strategy?

The weakness of the strategy is that it does not specifically define how to compete with other firms as there are many competitors of Pepsi co. And the disadvantage of the strategy is that merger or acquisition is not easy especially in foreign countries where there are different cultures and they have different products with different names and has confused people about whose products they are consuming.   

Do you think the organization has the right balance between profitability and responsibility?

In my opinion Pepsi Co has got the right balance between profitability and responsibility. The company not just focuses on making money but also do care about the welfare of the people and the society as a whole in which they operate. They provide nutritious and hygienic food to people and they are even willing to take any responsibility of any kind of default they cause. They even have donated $20m to Refresh Project which aims to help young homeless people. For these reasons we can say that Pepsi Co has got right balance between profitability and responsibility. 

References:

1. tmcorp. (2013). PepsiCo International Case Study. Available: http://www.tmcorp.com/Our-Solutions/Case-Studies/PepsiCo-International-Case-Study/110/. Last accessed 2/5/2013.
 2. Paul Ziobro. (2012). PepsiCo Overhauls Strategy. Available: http://online.wsj.com/news/articles/SB10001424052970203646004577212742610551170. Last accessed 2/5/2013.
 3. pepsico. (2012). Performance with Purpose is our goal to deliver sustained financial performance. Available: http://www.pepsico.com/Purpose/Performance-with-Purpose. Last accessed 2/5/2013.