MGM255-1204A-05
Karen Kline-Basile
Colorado Technical University
11/04/2012
Number 1 challenge at PepsiCo and what is working:
The number one challenge that PepsiCo is facing is the rapidly changing global economy particularly the slowing U.S. economy. Although, PepsiCo businesses have generally proved resilient in past down turns, it is unclear where they will land during the current slide. To combat the challenges, PepsiCo is going to utilize all tools at their disposal from a productivity stand point, to research better product formulas and ingredient sourcing. They are always coming up new products and new marketing ideas. They have dedicated themselves to offering consumers a wide variety of choices for healthy and convenient snacks / beverages. PepsiCo also balances strong financial returns with giving back to communities in the U.S. and abroad. These returns to the communities have earned them named for the fourth time to the Dow Jones Sustainability World Index and for the fifth time to the Dow Jones Sustainability North America Index in 2010. They were also a top performer in the beverage sector. (PepsiCo, 2012). To ensure that PepsiCo can continue long into the future, it is making considerable efforts and strides to protect the environment it utilizes. In 2010, it launched the Dream Machine, a recycling partnership with three other companies. The partnership has a goal of increasing U.S. beverage container recycling rate from 38 % in 2009 to 50% in 2018. PepsiCo is also engaged in water conservation and efficient agricultural methods. These efforts are not only sustained by PepsiCo’s operations in the U.S. but also in global markets. (PepsiCo, 2012).
Implantations of management strategies:
Here are four strategies that are helping increase revenue thru operational efficiencies:
One strategy that PepsiCo has implemented is called the “Power of One” The “Power of One” is not
References: Food Industry News. (n.d.). Retrieved on November 1, 2012 from http://www.flex-news-food.com/pages/12058/Pepsi/pepsico-unveils-new-organizational-structure-names-ceos-three-principal-operating-units.html Indra Nooyi 's Pepsi challenge