Essay
Case study: PepsiCo- a view from corporate office
PepsiCo is the second major food and Beverage Corporation in the world, with returns exceeding $43 billion. Originally started in 1890, Pepsi Cola became the first branded soft drink in the world with time, now it is available in over 200 countries around the world and own 22 brands that achieve retail sales beyond $1 billion each. PepsiCo diversification strategy yields them a great profit in return; around half of PepsiCo’s revenue is produced from their food business, out of which major contributors is Frito-Lay (snack food) and Quaker Oats. PepsiCo has spread all over the world market and now have access to 80% of the world’s market share and generating huge revenue out of it. The Non US market holds 50% of the revenue of PepsiCo. Besides these PepsiCo will look to expand its profit margin in Non-US Market on the basis that per capita consumption of snacks and beverages in other countries is well below US market levels. This has resulted in multiplications of profit margins. It has been observed a 2% fall in US beverage sales in 2011, but the increase in Europe, Asia, the Middle East and Africa is manifold.
Pepsi Co is an international company that has been in existence since the late 19th century when Caleb Bradham, who was a pharmacist from New Bern, North Carolina who invented Pepsi while researching different soft drink. In 1898, Pepsi Cola announced as first branded soft drink and since then their product and the company have matured to a level that it is now recognized as world leader brand in the world of food and beverages. PepsiCo sustained its three-year positive growth strategy by maintaining an forceful presence in the United States and worldwide, resulting healthy profits and marketplace share.
PepsiCo has a past of developing and introducing number of mid-calorie beverages and food line. In 2006, Production volume grew by 5.5%; net income grew 8; return on investment was 26%; total return to
PepsiCo is the second major food and Beverage Corporation in the world, with returns exceeding $43 billion. Originally started in 1890, Pepsi Cola became the first branded soft drink in the world with time, now it is available in over 200 countries around the world and own 22 brands that achieve retail sales beyond $1 billion each. PepsiCo diversification strategy yields them a great profit in return; around half of PepsiCo’s revenue is produced from their food business, out of which major contributors is Frito-Lay (snack food) and Quaker Oats. PepsiCo has spread all over the world market and now have access to 80% of the world’s market share and generating huge revenue out of it. The Non US market holds 50% of the revenue of PepsiCo. Besides these PepsiCo will look to expand its profit margin in Non-US Market on the basis that per capita consumption of snacks and beverages in other countries is well below US market levels. This has resulted in multiplications of profit margins. It has been observed a 2% fall in US beverage sales in 2011, but the increase in Europe, Asia, the Middle East and Africa is manifold.
Pepsi Co is an international company that has been in existence since the late 19th century when Caleb Bradham, who was a pharmacist from New Bern, North Carolina who invented Pepsi while researching different soft drink. In 1898, Pepsi Cola announced as first branded soft drink and since then their product and the company have matured to a level that it is now recognized as world leader brand in the world of food and beverages. PepsiCo sustained its three-year positive growth strategy by maintaining an forceful presence in the United States and worldwide, resulting healthy profits and marketplace share.
PepsiCo has a past of developing and introducing number of mid-calorie beverages and food line. In 2006, Production volume grew by 5.5%; net income grew 8; return on investment was 26%; total return to