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Pepsico Analysis

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Pepsico Analysis
PepsiCo, Inc.

Katherine Schryner

MBA5002 - Microeconomics And Decision-Making

James Slate

03/09/08 I. Executive Summary
In1898, Caleb Bradham created the Pepsi Company (PepsiCo). The Pepsi-Cola Company merged with other companies (Frito-Lay, Tropicana and Quaker Foods to list a few) between 1965 and 2001 and is now referred to as PepsiCo, Inc. PepsiCo, Inc. has many headquarters worldwide for the several different companies. The main world PepsiCo headquarters residing in New York. These mergers made PepsiCo, Inc. a refreshment and snack company ranking 5th in the world (Pepsi). PepsiCo, Inc. is listed on four stock exchange markets. In 2006, they reported over $35 billion in revenues and listed having 168,000 employees (PepsiCo2).

II. Table of Contents
III. Supply, Demand and Price Analysis………………………………..Page 5
Company Introduction Page 5
Product description Page 5
Factors affecting supply, demand and price of product Page 6

Elasticity of demand and price for product Page 6

Suggested initiatives to improve revenue Page 7

IV. Cost Analysis………………………………………………………...Page 7
Fixed Costs Page 7

Variable Costs Page 7

Life Cycle Costs Page 8

Operating Costs Page 8

Cost Considerations Page 9

Revenue Page 9

Strategies to Enhance Profits Page 10

V. Market Structure………………………………………………….…Page 11
Pricing Strategies Page 12

Maintaining and Improvement Measure Page 14

VI. Comparative Advantage and Environmental Issues………………Page 15
International Trade Page 15

Risk Management Page 17

Comparative Advantages Page 17

Environmental Concerns Page 18

VII. Company 's Overall Strategy and Decision-making Process……..Page 20 Mission Statement Page 20 Business Opportunities Page 22 Long Term Objectives Page 22
VIII. References……………………………………………..…………….Page 24
IX. Appendices…………………………………………….…………….Page


References: Apropos of Something, (2007). Beverage Report: Pepsi Summer Mix. Retrieved on February 2, 2008 from: http://wiw.org/~jess/archives/2007/05/28/pepsi-summer-mix/ Baue, W., (2003). PepsiCo Shareowners Will Address the Business Risks of Water Scarcity http://www.socialfunds.com/news/article.cgi/article1080.html Business Resource Software, Inc., (2008) 2008 from: http://www.businessplans.org/Mission.html. Caggeso, M., (2007) Management to Focus on Emerging Markets. Retrieved on February 1, 2008 from: http://www.moneymorning.com/2007/11/07/dividing-to-conquer-pepsi-shifts-organizational-structure-and-management-to-focus-on-emerging-markets/. Chao, L February 9, 2008 from: http://online.wsj.com/public/article/SB118953841749624079.html Coca-Cola. (2007). Coca-Cola Sitemap. Retrieved on February 1, 2008 from: http://www.coca-cola.com/shared/coke/site_map/sitemap.htm Ecologycenter, (2001). Free trade trade-off 's. 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Company Overview. Retrieved on January 20, 2008 from: http://www.pepsico.com/PEP_Company/Overview/index.cfm PepsiCo3. (2007). Performance with Purpose- PepsiCo Corporate Sustainability Report 2006-2007 http://www.pepsico.com/PEP_Citizenship/sustainability/Gri_v10b.pdf. PepsiCo4, (2006) PepsiCo5. (2008). Human sustainability. (Pg. 1-12). Retrieved on January 20, 2008 from: http://www.pepsico.com/PEP_Citizenship/sustainability/human_v11a.pdf PepsiCo6, (2008). Governance Structure and Management. Retrieved on February 9, 2008 from: http://www.pepsico.com/Pep_Citizenship/sustainability/Governance/ index PepsiCo7, (2008). Environmental News. Retrieved on February 9, 2008 from: http://www.pepsico.com/PEP_Citizenship/EnvironmentalNews/news/index.cfm PepsiCo8, (2008). Vision and Strategies – Guiding Principles. Retrieved on February 16, 2008 from:http://www.pepsico.com/Pep_Citizenship/sustainability/visionstrategy/ mission_values/index.cfm PepsiUSA, (2008). Pepsi embraces environmental sustainability through support of Keep America Beautiful (KAB), the nations largest community improvement network Retrieved on February 9, 2008 from: http://www.pepsiusa.com/whatshot/cause/index.php?secTo=liveEarth Pepsivideotest, (2006). Environmental Video. Retrieved on February 9, 2008 from: http://pepsivideotest.whmhs.com/11102006/PepsiKABflash.htm PepsiWorld, (2007). PepsiWorld Map. Retrieved on February 1, 2008 from: www.pepsiworld.com PR Newswire-FirstCall via COMTEX News Network, (2008). PepsiCo Announces Initiatives With the Earth Institute and H2O Africa To Drive Sustainable Water Practices Efforts To Improve Rural Water in Africa, China, India and Brazil Samuelson, P. and Nordhaus, W., (2005). Microeconomics. (18th Ed.). New York, NY: McGraw-Hill Irwin Sheldon, I., (2004). Evolution of food and agricultural market structure and the rise of product differentiation http://www.farmfoundation.org/projects/documents/IanSheldon.ppt Singer, P., (1992) South, (2008). Lecture notes from MBA 5002. Retrieved on January 20, 2008 from: www.portal.southuniversity.edu Sparknotes (2006). Equilibrium. Retrieved on January 25, 2008 from http://www.sparknotes.com/economics/micro/supplydemand/equilibrium/section3.rhtml Tutor2u. (No Date). Marketing – Skimming V Penetration. Retrieved on February 1, 2008 from: http://tutor2u.net/business/presentations/marketing/skimmingv penetration/default.html US EPA, (2008). Sustainability. Retrieved on February 15, 2008 from: http://www.epa.gov/sustainability Ward, S., (2008). Target Marketing. Retrieved on February 1, 2008 from: http://sbinfocanada.about.com/od/marketing/g/targetmarketing.htm Wellesley Information Services, (2007). Best practices for lead-time improvement, planning, and forecasting- How PepsiCo enhanced SNP to create a new, user-friendly simulation tool for network optimization White, S. (2007). Promotion Strategies. Retrieved on February 1, 2008 from: http://www.amazines.com/Business/article_detail.cfm/204536?articleid=204536 Wikipedia (2008). Product life cycle management. Retrieved on January 27, 2008 from:
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