PEPSICO’S TURNING POINT: ESTABLISHING A ROLE IN A SUSTAINABLE SOCIETY Harvard Case Solution & Analysis

PEPSICO’S TURNING POINT: ESTABLISHING A ROLE IN A SUSTAINABLE SOCIETY Case Solution

PEPSICO’S TURNING POINT

PepsiCo is one of the leading beverage and food company that provides its customers high-quality snacks, and food and beverages services all over the world. Indra Nooyi is the Chief Executive officer of PepsiCo and its headquarter is located in the city of New York. Moreover, PepsiCo is considered as the market leader of food and beverages all over the world. The company has five main billion-dollar brands which include, Tropicana, Pepsi-Cola, Quaker, Frito and Gatorade. These brands are present in than 200 countries around the world. The company has earned US$108 billion from its worldwide retail sales and represent approximately US$43.2 billion profit which include net revenues and subsidiaries.

Indra Nooyi became the CEO of the company in 2006. After becoming the CEO of the company, she observed that the lifestyle and choices of the peoples changed and it if the company wants to remain competitive in the organization, then it is necessary for the company to put more of its focus on healthier foods and beverages products which would help the company in achieving its steady business growth in the highly competitive market. Moreover, after analyzing the entire performance of PepsiCo, it is evaluated that the company has made great efforts in order to reduce the negative impact of ecology and health. However, in reaction to these issues, the company shifted its market demand rather than focusing on these trends. There is no denying that PepsiCo and its other brands which include Nestle and Coca cola has made great efforts in changing the consumer behavior and tastes of the customer in the past few decades.

After analyzing the current situation of the company, the CEO of the company decided that whether it would be in the best interest of PepsiCo to use the similar power strategy to shift the consumer’s behavior and taste to a healthier set of options that ultimately catered to society interest. In order to achieve the success in the food and beverage industry, the company built its empire in distribution and manufacture of instantly recognizable products which would help the company in resolving its issues in the society as well as improve the performance of the company in the food and beverage industry. Moreover, one of the observers stated that the success of the PepsiCo is based on its ability to market its product in the market which represent the core competences of the company as well as product expansion is emerging as a new cradle of competitive advantage.

SITUATION ANALYSIS and strategic possibilities

It is expected that the company has been consistently living up to its objective and mission as the company wants to provide its customers a more valuable products that satisfy their needs and requirements. Moreover, the main areas that company needs to focus on for improvement is healthier foods and beverages for kids that appeal to kids as well as promote the products in the market all over the world. Moreover, the company believed that it has competitive advantage in the industry which is based on three things: (1) Strong brand, (2) differentiation and innovative products (3) go to market. Due to its strong brand image, all the employees are focused on young generations which enable the company to achieve its competitive advantage in the market as well as sustain growth and success in the food and beverage industry. The main vision of the company is to bring improvement in the market and food and beverage products as well as improves all aspects of the world in which the company operates its operations. Moreover, the company emphasizes on improving the economic, social and environment factors which would help the company in improving its better position in the market by providing healthier and better products which further improves the factor for healthier and better tomorrow.....................

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