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

  • Why have major producers of processed food been criticized?

Major food producers have been criticized heavily because of their significant impact on the society and health as well as increasing ecological costs.

Processed food producers are using processing techniques that are unusual and the ingredients used are unnatural, nutritional elements are eliminated from the food so that the product lasts longer and thus, has a greater shelf life.

The food industry uses nitrogen rich fertilizers to accelerate the ingredients growth and farming. This has led to many ecological adversities;as per the case the ecological effects from the use of nitrogen, rich fertilizers reduced drinking water, increased greenhouse gas emissions, changed plant composition, contaminated rivers etc. Companies adopt this unnatural way of increasing and accelerating their raw material input production to increase the production and its sales in order cons equently increase profits. However,this has more costs to ecology and environment than profits for the company.

On the other hand, several health hazards conferred from the modern food processing. There is social cost for such malpractice of using the manufactured ingredients. The food manufacturing companies have been using corn and soy in majority of their products. Using these two natural ingredients, the food processing companies produced manufactured ingredients using the scientifically viable processes. These ingredients are quiet low in nutrition as compared to the real food. There were also several chemical process involved, such as adding of antibiotics, hormones, and toxins in food processing, which are cause of many harmful  diseases including cancer and increasing obesity in consumers. All these adversities have led to criticism ofthe processes food producers use in their operations.

 Why is the food industry lobbying against initiatives to improve healthy eating and reduce obesity in children?

 The food industry is processing food in an unnatural way. It is using unnatural ingredients to make its products costs low. Such as use of watered diluted milk with combination of melamine, this is hazardous to health. These manufactured foods lack the nutrients that a pure glass of milk contains. Similarly, food companies use sugary syrups and flavors to make milk drinks more appealing to children. All these foods contain lowered nutrients and the consumer needs to have more of it to make up for the shortfall in nutrients. Therefore, the food company are responsible for make consumers eat and drink more than necessary,which leads to obesity and fatigue. This is against healthy eating habits.

 Is PepsiCo responsible for the effects of its products on the public health and the environment?

 Yes, PepsiCo is one of the leading processed food manufacturing company and as discussed earlier, the food processing companies are placing significant effects on the public health and environment. As per the case, PepsiCo is also involved in the processing practices that produce unhealthy products. It is also involved in promoting misguided adverts such as regarding its Quaker dark chocolate chunk as healthy while in reality it was unhealthier.

 Do companies such as PepsiCo lead or follow consumer “tastes”?

Large food processing companies such as PepsiCo lead consumer tastes. They are responsible for shifting the consumer taste and consumer behavior in the consumer market. The company through its products and mass marketing and advertising make consumers to consume such products. These companies have high loyalty and consumer trust, which can be exploited as well. Being a consumer taste leader, the company has the power to make changes and guide the consumers towards use of healthier products and processed foods......................

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