Pepsico A World Leader In Convenient Snacks Commerce Essay

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PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $60 billion and over 285,000 employees. Pepsi Co is a Fortune 500, American global corporation headquartered in Purchase, Harrison, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 - which added the Gatorade brand to its portfolio as well.

Revenue US$43.23 billion (FY 2009)

Operating income US$8.04 billion (FY 2009)

Net income US$5.95 billion (FY 2009)

Total assets US$39.85 billion (FY 2009)

Total equity US$16.80 billion (FY 2009)

Employees 285,000 (2010)

Divisions PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa


Society is a complex phenomenon with a multitude of intricacies. It is impossible to understand and solve its numerous problems without support of social planning. It is rightly said that we cannot understand and mend society without any knowledge of its mechanism and construction. It helps us to determine the most efficient means for reaching the goals agreed upon. A certain amount of knowledge about society is necessary before any social policies can be carried out.

Social planning relates to the way in which people of a society, in groups behave and interact. It is living to live as a part of a community or colony rather than alone and understanding each other and working towards their welfare and tries to maintain harmony and peace in the society. Social Planning Process consists of thoughts that are:




Collaborating and



To the people of the world...

Their promise has been to encourage people to live healthier by offering a portfolio of both enjoyable and wholesome foods and beverages.

PepsiCo is the world's second-largest food and beverage business. Their brands - which include Quaker Oats, Tropicana, Gatorade, Frito-Lay and Pepsi - are household names that stand for superior quality and great taste throughout the world.

Goals & Commitments

The PepsiCo Foundation's initial relief contributions will support several identified areas of need:

$500,000 to the American Red Cross for food, shelter and emotional support

$250,000 to Save the Children for counseling services, children's health and family services

$200,000 to the World Food Programme's efforts in food distribution

$50,000 to Aid matrix in support of their local logistics capability and distribution network.


PepsiCo is a dynamic global business focused on sustainable growth that relies on the Earth's natural resources every day. As they grow their businesses in developed countries and expand in developing and emerging countries, they remain committed to minimizing the impact our business hazards on the environment. They strive to use only methods and tools that are scientifically proven, socially responsible and economically sound.

Goals & Commitments

The process of conducting research and gathering and assimilating external information is sometimes called environmental scanning or industry analysis. Lobbying is one activity that some organizations utilize to influence external opportunities and threats.

Environment scanning has the management scan eternal environment for opportunities and threats and internal environment for strengths and weaknesses. The factor which are most important for corporation factor are referred as a strategic factor and summarized as SWOT standing for strength, weaknesses, opportunities and threats.

Environmental Scanning

Internal analysis: The external environment consist of opportunities and threats variables that outside the organization.

External analysis: this consists of two parts:

Task Environment:

Task environment includes all those factors which affect the organization and itself affected by the organization. These factor effects the specific related organizations. These factors are shareholders community, labor unions, creditor, customers, competitors, trade associations.

Social Environment:

Social environment is an environment which includes those forces effect does not the short run activities of the organization but it influenced the long run activities or decisions. PEST analysis are taken for social environment PEST analysis stands for political and legal economic socio cultural logical and technological.

Our commitment to responsible sourcing is supported by four areas of focus:

Supplier Corporate Social Responsibility Assurance:

Partnering with our suppliers to operate in a way that respects PepsiCo's values, brands and the communities in which we operate.

Environmental Supplier Outreach:

Setting clear, measurable goals for energy, greenhouse gas (GHG), water, agriculture and forestry resource conservation within the extended supply chain.

Sustainable Packaging:

Optimizing our use of materials and driving to continuously improve the environmental footprint of our packaging.

Sustainable Agriculture:

Ensuring PepsiCo has continued access to the key agricultural raw materials necessary to supply growing consumer needs, while respecting the environment and communities involved in producing those raw materials.

Another integral part of our responsible sourcing mission is a commitment to purchase from a supplier base representative of our associates, consumers, retail customers and communities. Learn more about our commitment to supplier diversity.


Stakeholder engagement and public policy

We will act transparently, engage widely and promote best practice and accountability in the UK and globally.

The external world - changing consumer preferences, new scientific developments, public policy and regulation - profoundly affects our business. Nowhere is this truer than on nutrition, health and wellness. Effective stakeholder engagement is the only way for our business to identify emerging concerns and understand the health and nutrition debate.

Bringing external views into our business

In 2006 PepsiCo UK set up its first External Advisory Board, the Advisory Board reports directly to the PepsiCo UK & Ireland President.

We will maintain our commitment to consult critics actively, listen to what they have to say and act where appropriate.

CASE STUDY - Stakeholder engagement


The paper shows that Pepsi company at some point of time was proven wrong in context of looking after the society and in their social performances but majority of citations proves that the company have always been working for the welfare of the society and its stakeholders, as it can be clearly seen that the share of the stakeholders have always increased since year 2000. Pepsi's goal have been environmental and human sustainability and apart from there business activities they have been working towards the welfare of the society as whole in case of natural calamities and droughts. Their contributions have proved their planning towards welfare of the society and its people. The following were the incidents cited by the media about Pepsi Co's efficient working:

Putting public safety first

Pepsi's strategy was pre-determined. It really had no choice. In today's post-Tylenol era, even if a producer of a popular consumer product wanted to ignore public safety, it would not be able to do so. But, having said that, "pulling the product" is not always the only option to protect the public's safety.

The company could have ordered a full recall. That would not only be expensive, it would have been foolish. Pulling the product, when no public safety threat was really present, would have only prolonged the problem. By sticking to its determination to protect public safety and bring the controversy to an end, Pepsi was well advised to keep product on the shelves.

The perception of maintaining public safety, however, is another story. Some called for a full recall, thinking that would protect the public fully. Pepsi, with its unique perspective, knew syringes were not popping up in cans during the filling process. Demonstrating that it was impossible for such an occurrence to happen during the process, showing the filling line, ultimately brought the case to a close.

b. Taking full responsibility for solving the problem

Actually, Pepsi did not take responsibility for solving the problem. It wisely let regulatory and governmental authorities get to the bottom of the tampering. It cooperated fully, communicated fully and pointed out the inconsistencies in the various reports. That is all it should do.

When the Food & Drug Administration and law enforcement personnel explain what really went on, the explanation takes on more meaning, more force and is more conclusive. Pepsi's final "word" came in the form of its advertisement "NOTHING."

While the company did not actually "solve the problem" it did manage the communication throughout the weeklong siege. It is well known that how a company communicates through a crisis determines, to a large extent, how it is judged to have handled the problem. In other words, good communication translates to good action to most in the consumer public. So Pepsi's responsible actions, combined with aggressive communication, helped bring the case to a close.

Using the media to present its case

when the media are a major force in creating a problem, the only effective way to regain lost ground is through those same media.

In essence, this case is media driven. The media picked up on the story, chased it around the country, inspired copycat replications of the tampering and generally played havoc with reality. Because the media were driving the store, Pepsi was wise in using these same media to present its case to the public.

Today's "general public" gets its news primarily from television (about half) with one-fourth looking to the daily newspaper for its information. Thus, three-fourths of the consumers whose behaviors might be affected by the tampering hoax could be easily reached with good media strategy.

Further, the media, in all fairness, would likely be fully committed to Pepsi's response, given how and why the story had gotten to that point so quickly. Plus, the availability of the filling-line video, the convenience story security tape and Craig Weather up made the story even more appealing. With these elements in place, using the media to reach vast numbers of people quickly was an obvious and useful option.

Pepsi's follow-up advertisement was clever and probably created a "warm, feel-good" effect among bottlers and distributors, but the real work was done via public relations and media relations. Media exposure helped create the problem and commensurate media exposure helped bring the crisis to a close.