1. By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, Marie-Michele Lachance
PepsiCo
By: Ashley Cleary, Sylvia LaBrie, Andrea Baril, Marie-Michele Lachance

2. Overview Company Overview History of Pepsi Growth
2009 Events and Issues
Existing Mission and Vision statement
New Mission and Vision Statement
SWOT Analysis
External Assessment
CPM
EFE
Positioning Map
Internal Assessment
Organizational Chart
Income Statement
Balance Sheet
Financial ratios
IFE Matrix
Strategy Formulation
SWOT Matrix
Grand Strategy Matrix
BCG
Space Matrix Data
Space Matrix
IE Matrix
Matrix Analysis
QSPM Matrix
Strategic Plan
Strategy
Objectives
Recommendations
Assumptions
Implementation
EPS/EBIT
Projected Financials
Evaluation
Balanced Scorecard
Key Future Ratios

3. History
In 1965: PepsiCo, Inc. is founded by Donald M. Kendall, President and 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 serve his 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 flavored snacks, Ruffles brand potato chips, Rold Gold brand pretzels.
Mountain Dew

4. Growth
1966: Doritos is introduced Pepsi enters Japan and Eastern Europe. 1970: PepsiCo moves from New York City to new world headquarters in Purchase, N.Y Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles. 1977: PepsiCo acquires Pizza Hut, Inc 1978: Taco Bell 1980: PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants.

5. Growth Cont.
 1982:
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, 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 the world. Snack food operations are in 10 international markets.
1986:
PepsiCo purchases 7Up International, the third largest franchise soft drink operation outside the United States.
1993:
Pepsi-Cola introduces Aquafina bottled water into test market.
1996:
Pepsi-Cola launches Pepsi World at

6. Global Pepsi products are in almost 200 countries throughout the world
There are 22 different brand lines that account for at least $1 billion per year per brand

7. 2009 Celebrated 75 years in Canada
Was on the “Best Food for Women” list in Women’s Health magazine
Began a partnership with the NFL
Won U.S. EPA SmartWay Environmental Excellence award
Became official beverage of Norwegian Cruise Lines

8. Mission Statement
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards 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.

9. Vision Statement
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

10. Proposed Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages through stores as well as our website. (1,2.3,4) We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. (5,8,9) And in everything we do, we strive for honesty, fairness and integrity. (6,7)
Customer
Products or Services
Markets
Technology
Concern for survival, profitability, and growth
Philosophy
Self-Concept
Concern for public image
Concern for employees

11. Proposed Vision
PepsiCo, in association with smaller brands, offers a wide variety of products from beverages to snacks at low cost.

12. External Assessment

13. Opportunities 1. Opening in market for less costly products
2. Growth opportunities in developed countries as well as international nonestablished 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 beverage industry, the salty or savory snack food industry, and the breakfast food industry)
5. Growth in the carbonated drink market is the largest in Asia and Europe
6. The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks

14. Threats
1. Fierce competition from Coca-Cola, which owns the largest piece of the market share
2. The downturn in economy, which lead customers to shift away from bottles of water to tap water.
3. Because of the recession, customers are finding cheaper alternatives to the national brands.
4. Customers are getting more conscious and concerned about their eating habits and general health.
5. Campaign against plastic containers has impacted the sale of bottled beverages
6. Highly dependent on supplies of clean water, to prevent contamination

15. CPM

16. EFE Opening in market for less costly products
Key External Factors
Weights
Rating
Weighted Score
0.0 to 1.0
1 to 4
Opening in market for less costly products
0.05 2
0.1
Growth opportunities in developed countries as well as international unestablished countries
0.08 3
0.24
Pepsi recently reacquired ownership of its two largest bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) 1
Compete in more than one industry (non-alcoholic beverage industry, the salty or savory snack food industry, and the breakfast food industry)
0.13 4
0.52
Growth in the carbonated drink market is the largest in Asia and Europe
0.09
0.27
The world's demand is experiencing a growth with the sports drinks, bottled water, and energy drinks.
Threats
Fierce competition from Coca-Cola, which owns the largest piece of the market share
0.12
0.48
The downturn in economy, which lead customers to shift away from bottles of water to tap water.
Because of the recession, customers are finding cheaper alternatives to the national brands.
0.3
Customers are getting more conscious and concerned about their eating habits and general health.
0.36
Campaign against plastic containers has impacted the sale of bottled beverages
Highly dependent on supplies of clean water, to prevent contamination
0.06
Totals
3.16

17. Dr. Pepper Snapple Group
Positioning Map
High Prices
Limited Products
Diverse Products
Dr. Pepper Snapple Group
Coca Cola
Pepsi Co.
Low Prices

18. Market Share

19. Revenue Distribution

20. Stock Price History

21. Internal Assessment

22. Strengths 1. Strong brand equity 2. Well-known worldwide
3. Innovating company
4. Ethical, socially responsible, and sustainable company
5. Strong advertising company with more than 40 slogans and songs
6. PepsiCo as the largest part of the market share after Coca-Cola
7. PepsiCo owns a wide variety of smaller brands which able them to offer a large product range from beverages to snacks

23. Weaknesses
1.PepsiCo production is really expansive because of the need to constantly develop new products to meet the changing customers demands
2. PepsiCo is experiencing a lack of focus towards Pepsi sodas
3. PepsiCo is experiencing product recalls
4. PepsiCo has a low employment productivity and a weak distribution
5. PepsiCo depends too much on the US market
6. PepsiCo is far behind Coca-Cola in the international market

24. IFE

25. Income Statement

26. Balance Sheet

27. Financial Ratios

28. Financial Trends
Adapted from

29. Organizational Chart

30. Revenues and Profits

31. Strategy Formulation

32. SWOT Matrix

33. Grand Strategy Matrix

34. BCG Division Revenue % Revenue Profit Profit % Market Share
Market Growth
Frito-Lay North America
$ 13,224.00
31%
$ 3,258.00
38% 1
5.42%
Quaker Foods North America
$ 1,884.00 4% $ 7%
-0.95%
Latin America Foods
$ 5,703.00
13% $
10%
-3.26%
PepsiCo Americas Beverages
$ 10,116.00
23%
$ 2,172.00
25%
0.8
-7.51%
Europe
$ 6,727.00
16% $
11%
0.4
-2.38%
Asia, Middle East & Africa
$ 5,578.00 $ 8%
0.3
8.97%
Total
$ 43,232.00
100%
$ 8,610.00

35. BCG Cont.

36. SPACE Matrix

37. SPACE Graph 1 2 3 4 5 6

38. IE Matrix

39. Matrix Analysis

40. QSPM

41. QSPM Cont.

42. Strategic Plan

43. Strategy
Market development is a strategy that PepsiCo should apply by expanding in countries that not already established
Use forward integration to acquire smaller companies in foreign markets to increase their market share
Product development and related diversification should also be considered while trying to produce and distribute healthier products

44. Recommendations
In the next 3 years, PepsiCo should acquire 3 brands per year in an international marketplace
One of these 3 brands per year must be healthy
Increase production and distribution of carbonated drinks in Asian and European countries
PepsiCo will expand into Africa to make use of the international market they are not part of

45. Objectives
Spend $15 million on a healthier more eco-friendly beverage brand in an already established country
Spend $15 million on a healthier more eco-friendly snack brand in an already established country
Spend $10 million to acquire a smaller brand in Africa
Increase our revenues by 5% in 2010
Start our own environmental cause fund with $1 million

46. Assumptions Spend $40 million to acquire new brands
Spend $1 million to start an environmental cause group
Revenue increase of 5%
Decrease short-term and long-term debt by using some of our cash and cash equivalents as well as retained earnings

47. Implementation

48. Projected Income Statement

49. Projected Balance Sheet

50. Evaluation

51. Balanced Scorecard

52. Future Ratios

53. Fun Facts

54. Pepsi/Coke Rivalry

55. Questions?

56. Sources
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