Capstone on Pepsi

Topics: Economic growth, Strategic planning, Coca-Cola Pages: 6 (2232 words) Published: February 12, 2012
Capstone Project on PepsiCo 1. Analyze the company’s mission and vision statements against the performance of the organization. Then, evaluate how well the company lives out its mission and vision statement. Provide support from the organization’s performance in your evaluation. PepsiCo mission statement is to be the world's premier consumer products company focused on convenient foods and beverages. They seek to produce financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate. And in everything they do, they strive for honesty, fairness and integrity. Their vision statement is, "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today." Their performance for 2010 lives up to their statements. On a constant currency basis, the net revenue grew 33 percent; core division operating profit rose 23 percent and core earnings per share grew 12 percent. In addition, management operating cash flow reached $6.9 billion, up 23 percent, which excluded certain items; $8 billion was returned to their shareholders through share repurchases/dividends; and they raised the annual dividend by 7 percent. In 2010 they stepped up their investments in brand building, research and development, emerging markets infrastructure and their people. Brand building - they have a total of 19 brands; up from just 11 in 2000. Some of the brands include: Pepsi-Cola brands, Frito-Lay brands, Gatorade brands, Tropicana brands, and Quaker brands. Research and development – they increased investments in sweetener technologies, next-generation processing and packaging and nutrition products. Emerging markets infrastructure - they increased selling and delivery systems by putting more coolers in the market and adding route and distribution capacity ahead of growth in India, China,

Russia and other countries. People – emphasized leadership development to rotational assignments to experiential learning programs. (PepsiCo, 2011) 2. Assess how the organization’s strategic goals link to the company’s mission and vision. An organization’s strategic goals are major targets or end results that relate to the long-term survival, value and growth of the organization. PepsiCo has set goals in four key areas: performance, human sustainability, environmental sustainability and talent sustainability. Performance - to all their investors, it is a promise to strive to deliver superior, sustainable financial performance. Human sustainability - to the people of the world, it is a promise to encourage people to live healthier by offering a portfolio of both enjoyable and healthier foods and beverages. Environmental sustainability - to the planet we all share, it is a promise to be a good citizen of the world, protecting the Earth’s natural resources through innovation and more efficient use of land, energy, water and packaging in their operations. Talent sustainability - to the associates of PepsiCo, it is a promise to invest in their associates to help them succeed and develop the skills needed to drive the company’s growth, while creating employment opportunities in the communities they serve. With these four areas as their guide, PepsiCo is strategically transforming itself for success in a changing global environment. Each of these areas reflects what the mission statement represents: consumers, investors, employees and the community. They are the link to the goals and the mission. 3. Analyze the company’s financial performance to determine the link between the company’s strategic goals, strategy, and its financial performance. Detail your findings. The company recorded revenues of $57,838 million during the financial year ended December 2010 (FY2010), an increase of 33.8% over 2009 ($43,232). In 2010, their revenues outside the

U.S. grew...

References: PepsiCo. (2011). Company: Our mission and vision. Retrieved Dec 8, 2011from PepsiCo. (2011). Company: PepsiCo Values & Philosophy. Retrieved Dec 9, 2011 from PepsiCo. (2011). Investors: Annual Reports. Retrieved Dec 8, 2011 from Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting & Executing Strategy The quest for competitive advantage: concepts and cases (2009 custom ed.). Boston, MA: McGraw_Hill Learning Solutions. Wikinvest. (2011). PepsiCo (PEP). Retrieved Dec 9, 2011 from Wimm-Bill-Dann. (2010). PepsiCo to Acquire 66% of Russia’s Wimm-Bill-Dann Dairy and Juice Company for $3.8 Billion. Retrieved Dec 9, 2011 from Yahoo Finance. (2011). Pepsico, Inc: Competitors. Retrieved Dec 9, 2011 from
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