Worlds Largest Multinational Non Alcoholic Beverage Company Commerce Essay

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Coca-Cola Company is the world's largest Multinational non-alcoholic beverage company. Its current President and CEO is Muhtar Kent. It started in the year of 1886 and its headquarters in Atlanta, Georgia. The company is successfully running more than 125years. It offers a collection of world class quality sparkling and still beverages, stating with Coca-Cola and extend through our 400 soft drinks, juices, teas, coffees, waters, sports and energy juices that refresh, hydrate, nourish, relax and drinks energize. Coca-Cola was first green color. The Coca-Cola recipe was first designated at the eagle drug and chemical company, which is a drug store. It is located in Columbus, Georgia. It was invented by John Pemberton.

In May 1886 Pemberton first "distributed" the new item by carrying Coca-Cola in a jug down the road to Jacobs Drugstore. For five cents customers enjoying a Coca-Cola at sodium fountain. In January 1893 Coca-Cola registered in United States patent office. In 1919 Coca-Cola company was sold to a group of investors for $25million.In 1950 Coca-Cola advertise more than 50 television channel around the world. In1978 two litter bottle was introduced and the same year Coca-Cola introduced plastic bottle. In 1993 Coca-Cola sold more than 10 billion cases worldwide.

Company: PepsiCo

PepsiCo is an American multinational food and beverage company, headquartered in Purchase, New York, United States, in the grain-based snack foods, beverages and other products, manufacturing, marketing and distribution of interests. PepsiCo was founded in 1965, the merger of the Pepsi-Cola Company and Frito-Lay Company, to expand its namesake product PepsiCo food and beverage brands, the largest of which is a more extensive, including the acquisition of Tropicana in 1998, merged with The Quaker Oats Company in 2001, the Gatorade brand, its portfolio.

The company's products are distributed in more than 200 countries and regions, the annual net revenue of $ 43.3 billion and more than one U.S. dollars billions of retail sales, ended 22 January 2012, PepsiCo's product line. Based on net revenue, PepsiCo is the world's second largest food and beverage business. In North America, PepsiCo is ranked (net revenue), as the world's largest food and beverage business.

Indra Krishnamurthy Nooyi of PepsiCo chief executive officer since 2006, the company employed about 297,000 people in the world in 2011. The company's beverage distribution and Pepsi bottling , as well as some areas of the concession bottling. PepsiCo is a. SIC2080 (beverage) company.


Coca-Cola :

Muhtar Kent is the chairman and CEO of international conglomerate, after graduating from university of Hull in England and a Master of Science degree in administrative science from case business school U.K. In 1978 Muhtar Kent joined in Coca-Cola Company in Atlanta. At the time he holds variety of marketing and operation leadership position over the course of his carrier.

In 1985, he became a general manager of coca-cola in turkey and central Asia. In 1989 he worked as president of the company east central east central Europe division and senior vice president of coca-cola worldwide, with liability for 23 countries.

PepsiCo :

Indra Krishnamurthy Nooyi is the chief executive officer of PepsiCo since 2006.Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has sent global strategy for more than a decade and led restructuring PepsiCo, including the 1997 divestiture of its restaurants into Tricon, now known as Yum Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998 and the merger with Quaker Oats Company, which also led to the Gatorade PepsiCo. In 2006, she became the fifth CEO in the 44 year history of PepsiCo. According to Business Week, since she started as CFO in 2000, the annual income of the company rose 72% and net income more than doubled to $ 5.6 billion in 2006. Nooyi was named in the list of Wall Street Journal, 50 women to watch in 2007 and 2008, and was included in the list of 100 most influential people in the time in the world in 2007 and 2008. Forbes called it the # 3 most powerful women in 2008. Fortune is her number one of the most influential women in business in 2009 and 2010. On October 7, 2010 Forbes has its 6th most powerful woman in the world.


Coca-Cola :

Coca-Cola is largest multinational beverage corporation and manufacturer. Major industry includes many beverages like diet coke, fanta, frutonic, Sprite, Limca, ice tea Kinley, Minute maid, mazza, Sprite, Ice Fanta and so on. Coca-Cola is called "Coca-Cola" because of the original ingredients used in medicine, coca leaves and kola seeds. Coca-cola brand is recognized by 94% of world's population. Among them more than 400 brands are more than 3,500 beverage products, four of the world's top five beverage products, soft drink brands are ours. They are Coca-Cola, diet coke, soft drink brands, sprite and Fanta . Thumps up and limca, which are formulated to appeal to local cultures and lifestyles finished products functions generate higher net operating earnings but lower total returns than focus functions. With operations in more than 200 countries, we have a different employees of approximately 146,200 company employees globally .Our family of beverages accounts for approximately 1.3 billion servings worldwide of the 50 billion servings consumed every day.

PepsiCo :

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion. The Coca-Cola Company has historically been considered the main competitor PepsiCo, the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company had a larger market share in carbonated soft drinks sales in the U.S. In the same year, PepsiCo maintain a higher market share of the U.S. refreshment beverage , however, reflect differences in product lines between the two companies, as a result of mergers, acquisitions and partnerships undertaken PepsiCo in the 1990s and 2000s, its business has shifted to include a broader base product, including food, drinks and snacks. The main part of PepsiCo revenues do not come from the production and sale of carbonated soft drinks. Drinks are less than 50 percent of its total revenue in 2009. In the same year, just over 60 percent of PepsiCo's beverage sales came from the main non-carbonated brands, namely Gatorade and Tropicana.

PepsiCo, Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting for about 39 percent of sales in the U.S. snack in 2009. One of the major competitors in the snack market PepsiCo whole is Kraft Foods, which in the same year, 11 percent of the U.S. snack market share.


Leadership is the ability of an individual to influence, motivate and enable others to contribute towards the effectiveness and success of an organization (House et el, 1999, pg.184)

As Coca-Cola and PepsiCo are multinational giants in the same industry of beverage ad food making the rate of competition between the companies will be too high, as a multinational conglomerate both the companies have different divisions operating in various countries, so the importance of a strong leader is very high in both the companies.

The main functions of the leaders of both Coca-cola and PepsiCo are to coordinate the functions which are operated by different divisions operated in various countries and also to formulate strategies to be more competitive in the market.



Muhtar Kent is a Democratic leader, he always makes decision with other peoples and enquires opinion of employees and also he is moral of Coca-Cola workers. Furthermore in his period Coca-Cola earned high profits. In addition he has several commitment and involvement for his share holders.

His secondary leadership type is Transactional, in which he allocates responsibility to every person. If it succeeds he will be given reward and if it failed he has to take whole responsibility to overcome it.


Muhtar always respect his employees and give preferences others opinion and questions as well as while decision making. He undergoes discussion with management staffs before taking major decisions.

He always needs perfection in whatever he does. Some while working with management staffs he keeps the whole data about their past and upcoming projects.


Muhtar Kent was good in technical skills. He is also a skilful decision maker. For example, Muhtar Kent allows employees to question their seniors about their process and products.


As of last quarter, the company operates in six segments: Eurasia and Africa (6% of sales and 10% of profits), Europe (11% of sales and 27% of profits), Latin America (11% of sales and 28% of profits), North America (43% of sales and 18% of profits), Pacific (11% of sales and 17% of profits) and Bottling investments (18% of sales, and 0% of profits). In fiscal 2010, approximately 70% of sales abroad. In connection with the acquisition of North American bottling company, Coca-Cola generates more revenue in U.S. dollars.

Internationally the biggest competitor for Coca-Cola (KO) Company is PepsiCo (PEP). Both companies have a significant presence in the domestic market, but KO sells more drinks outside the U.S. KO gets about 80% of its operating revenue from international sources, and more than half of the world market of soft drinks. PEP, meanwhile, is only 42% of its net profits outside the U.S., and most of the revenue comes PEP, but not on its snack business, market, where KO is not involved.

In addition to the control panel, Dr Pepper Snapple Group (DPS) also sells drinks at the international level, particularly in Australia, Mexico and Canada. DPS predecessor Cadbury Schweppes (CSG) previously sold drinks in Europe, South Africa and Hong Kong, among others, but the new company sold the business in all markets, except for Australia and North America. DPS produces only 10% of its revenue abroad, reflecting the company's desire to concentrate on its strongest markets. There are other manufacturers of concentrates and beverage franchises around the world, though none hold a significant share of the global market, focus on specific geographical areas.



Indra Nooyi the present CEO of PepsiCo is a transformational leader. Indra Nooyi is been rated as #12 in the world's powerful women by fortune global. She transformed the company from a beverage company to a food and beverage conglomerate which provides a variety of snacks and also beverages for its customers. Nooyi's experience in strategy formulating helped the company to survive after recession, during her time the PepsiCo has taken over a no of companies like Frito lay, Tropicana, Quaker etc which helped the improvement of companies overall performances.

The R&D development by Nooyi is considered as the major achievements and also the investments in the world's emerging economies have been started working out.


Indra Nooyi's leadership style is simplicity and warmth. She seems very comfortable in different contexts at office. In Pepsi Co, it has long been known to patrol the office barefoot, singing in the halls. Nooyi is also famous for her team spirit; she attributes all her success for her employees.


Indra Nooyi is very highly skillful in strategy formulation. This helped the company to transform in an effective manner. She has got good experience in strategy formulation before she joined PepsiCo.


Pepsi as a brand a little down on last at number 23, and the brand value of $ 13.7 billion. However, together, these two bitter rivals - The Coca-Cola Company and PepsiCo - dominate the world market of bottled soft drinks. This is the only business Coca-Cola, Pepsi and massive market snack foods.

In the top of 200o Forbes "list of public companies, PepsiCo showed sales of $ 43.23 billion, profits of $ 5.95 billion and a market value of $ 99.58 billion.


Both companies, though based headquarters in the U.S., led by leaders representing the proceeds to a more diverse leadership. PepsiCo CEO Indra Nooyi is an Indian-born and a woman. CEO of Coca-Cola Muhtar Kent is born in the U.S. of Turkish parents. He left Coca-Cola to launch a large Turkish-based drinks company before returning to Coca-Cola in leadership positions and eventually was named chief executive officer. Both companies offer case studies of the potential internationalization of leading a large "West" on the basis of transnational corporations. PepsiCo shows a concrete step forward in a variety of leadership, as it leads by Indian-born women. Personally, we can see an increase in diversity management as a necessary and important achievement, and it would like to follow up on this trend.


Coca-Cola :

The Coca-Cola Company has a separate international division structure, because of its international headquarters are working alone and in isolation from the main office. It has various departments on all continents around the world with the presidents who control each unit continental. Coca-Cola has 5 continental divisions.

Each unit has a continental vice presidents who manage units based regions or countries. This structure is effective for Coca-Cola, as it is a very big company

Coca-Cola is both ethnocentric MNC, because its internal operations are very similar to their international operations. Regardless of the country or region, Coca-Cola works exactly and sells the same brand and type of soft drink. The company has tight control over their operations from the head office.



In Coca Cola they are following six sigma methods to analyze. The Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving for six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service

Coca Cola six sigma model includes three main components: focus on key performance indicators, understanding and alignment of business processes and measure them in terms of the consumer, and, finally, driving improvements through the strict application of DMAIC (define measure, analyze, improve & Control) methodology improvements or DMADV (define, measure, analyze, design, and verification) (re-) design methodology. The company also includes lean techniques as well.



Coca-Cola has a traditional top-down organizational structure so as to increase more and administration becomes difficult to organize. One of the drawbacks of traditional top-down organizational structure is that middle management may be able to grow relatively large. The rules and regulations that the company will not be noticed by low level of workers, because they emphasis on strict rules, rather than creative thinking.

Research and development is not the right answer in some situations. In some cases, Coca-Cola has already filed recently developed methods, while in other cases, new programs have been developed, but not fully implemented. In some cases, technology was not.

The present situation of the market for coca cola is at the best, but the customers are started thinking of more healthier product form the company as there is critiques being spreading that these type of beverages are more in sugar content and will result in the increase in percentage of blood sugar level. Even bottled water has come under fire for being environmentally destructive than just drinking tap water in many places. Given these ideas, and try to be constructive meeting consumer demand and protect the value of the business.


Begin with Coca-Cola has always been worried about the organization and the way of life of the country where they do business. The company has a very strong atmosphere until the organization is not enough for some of the factors that are sometimes forcing the organization back. In the multinational development of the company includes

• Develop a global mindset for employees

• Providing training to periodically to maintain continuity in the development of people

Nowadays, the customer needs and wants change by country, R & D department to conduct surveys in each country. On the basis of this feedback R & D department to make the process very effectively, so

The following process will help increase their efficiency

• To rearrange the R & D department based on performance.

• To test a month to review their knowledge.



PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go to market systems, including direct store delivery (DSD), broker-warehouse, and food service and retail.

PepsiCo is been segregated in different six divisions they are, PepsiCo Americas Beverages (PAB),Frito-Lay North America (FLNA),Quaker Foods North America (QFNA),Latin America Foods (LAF),Europe, Asia, Middle East and Africa

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In PepsiCo each divisions has its own Chief Executive Officer(CEO) they control the major decision making process which was being done at their division, these CEO's are under direct control of the chairman of the company.



PepsiCo mission is to be the top in the world of consumer Products Company focused on convenient foods and beverages. They strive to produce financial rewards to investors as PepsiCo provide opportunities for growth and enrichment of their employees, business partners and the communities in which they operate. And in all that they do strive for honesty, fairness and integrity.

For creating a better tomorrow than today, for this vision they train their employees to strengthen their skill and capabilities. PepsiCo also train their associates to improve in their leadership capabilities, and also providing workplace wellness programs globally. The company also conducts training for employees in the front level to the senior management level, which will help them to achieve their performance goals.


PepsiCo has recently introduced several products that fall between the true "diet" drinks and regular soda. Looks like they're going out of the market , not knowing enough about their segment in market.

Excessive dependence on Wal-Mart - Wal-Mart sales account for about 12% of total net revenue PepsiCo. Wal-Mart is the largest customer of PepsiCo. As a result, the fate PepsiCo, are influenced by the business strategy Wal-Mart in particular its emphasis on private label sales, which generate higher margins than national brands. Wal-Mart low price subject to pressure PepsiCo, to keep prices

Over-dependence on the U.S. market - Despite its international presence, 52% of its revenues are in the U.S. This concentration makes PepsiCo leave some vulnerable to changing economic conditions, and a strike. Large customers can take advantage of the absence of the U.S. PepsiCo negotiations and adversely affect its earnings.

Poor Performance - In 2008, PepsiCo had about 198,000 employees. Its revenue per employee was $ 219,439, which is lower than its competitors. This may indicate a relatively poor performance on the part of PepsiCo.

Picture of damage caused by a product recall - Recently (2008) Salmonella contamination forced PepsiCo to ​​pull Aunt Jemima pancake and waffle mix from retail shelves. This happened after the explosion incident Diet Pepsi cans in 2007. Such occurrences damage the company's image and reduce consumer confidence in the products PepsiCo

A few decades ago, it has already been released in the economic publication. That there has been a big problem with the customer's relationship with a bad taste, they are well aware for several years.

PepsiCo is experiencing a lawsuit for his formula, as it is the alcohol content of a health drink. Consequently, there is a decrease in sales PepsiCo India


Pepsi Co, probably one of the most competitive companies in the bottled liquid manufacturer, has long left the coke and sugar drinks war with Coca Cola Amatil, they produce a lot of extensive energy booster, and other soft drinks. As a result, their annual financial report and the prospects were much better than Coca-Cola over the last few years. It also re-invests significant funds to his business partner. Recently, Pepsi-co-operation will also help inform the cracks and pass. Illegal conduct 3ppl trying to sell Coca-secret recipe.

Pepsi Co as the formation of a healthy competitive environment, in so doing, has a competitive partner does not always seem to be a disadvantage.

1. Trying to promote and create drinks as a healthy lifestyle, not junk drink.

2. Plastic bottles and cans aluminum as the media is not environmentally friendly, age-old problems, but still cost-effective ... creating more and more anxiety.

3. In some countries, such as South-East Asia (Indonesia, Cambodia, Vietnam), I've seen during the trip, the drinks covered with a glass bottle, and not just the heavy and expensive to transport, it prone to damage.

Buy over small bottling company and install a good quality control to supply good quality bottled water.

PepsiCo consistently meeting its goals and objectives, and they offer most valuable foods and beverages to its customers. The main directions they need to continue to focus on improving the recycling containers. In connection with the product liquid nature Pepsi, it is necessary that the solid and non-porous container be used to store products. On the road to recovery, Pepsi position in the minds of public externally and internally in employee satisfaction. In light various discrimination claims for 2001 and 2004, the company faced with the problem of how to improve from within themselves, thus posing a positive external image. Their mission is clear its commitment to customer satisfaction through the integration all staff to equal opportunities and the playing field. This mission inn be carried out more effectively in the future for them to be able to progress forward in the most appropriate manner. Due to the liquid nature of the product Pepsi, it is necessary that the solid and non-porous container will be used for food storage. This fact leads to the use of plastic, aluminum, glass, and as materials for containers, Pepsi stored in. These materials work very well for the purpose of their use, however, these materials do not decompose easily