Due Diligence of PepsiCo - Case Study Example

R.Preeti 24/2 Due Diligence of PepsiCo EXECUTIVE SUMMARY Today's soft drink beverage market has reached its zenith, right from the evolution of Coca Cola. Soon came Pepsi Cola, which transformed into Coca Cola's main rival. PepsiCo today, is a highly successful Beverage Giant, with a number of brands in its fold. PepsiCo. Inc was founded in 1965 by Donald M. Kendall, President and CEO of Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay through a merger of the two companies.

Ever Since, PepsiCo has registered a high turnover every year. Today, the company has under its brand, products like Pepsi, Frito-Lay, Tropicana, Gatorade and Quaker. It has organized itself under three banners, namely, PepsiCo Americas Beverages, PepsiCo Americas Foods, and PepsiCo International.PepsiCo, as a leader in the Beverage Industry, is also very committed to its Corporate Social Responsibility and believes in giving back to the community.

Its current growth strategy is 'Performance with Purpose', which lays down its commitment towards the community. It outlines PepsiCo's idea of being a leader with people's support.Apart from focusing on the larger community, PepsiCo also believes and works towards keeping its main people happy---PepsiCo's workforce is the focus of the company. The workforce receives great benefits and packages, as part of working with the leader.

It is PepsiCo's way of retaining the talent pool, while also keeping them happy with the company's success.PepsiCo does not solely rely on financial rewards, packages and recognitions to keep its workforce happy. It also is well-dispositioned in terms of its commitment to diversity. The workforce at PepsiCo comprises people from different backgrounds, nationalities and ethnicities. The company takes care of not just the employees, but also their families.

The comfort, health and well-being of the workforce is at the top of their agenda. The principles that the company runs on, can be stated as "We must always strive to care for our customers, our consumers, and the world we live in" (PepsiCo homepage, Values and Philosophy).PepsiCo has had high turnovers over the decades. However, the financial meltdown that hit the US market in 2008, did affect the company's turnover, since 28% of PepsiCo's operations are based in the United States.

Nonetheless, PepsiCo implemented Productivity for Growth initiative to achieve cost savings, while also focusing on fundamentals and strategy-building. As a result, PepsiCo made some shrewd decisions in terms of retaining its assets and focused on productivity. The company made progress by concentrating on expanding its markets in India, Brazil, Mexico, China, etc. Thus, it brought about parity in working out its progress even in the face of the fiscal meltdown.

In addition to changing with changing times and implementing new strategies in accordance to the financial and other conditions, PepsiCo remains abreast of changes that take place in terms of its advertising, branding, positioning and marketing. The company has been able to use the Internet to its advantage in introducing and implementing new strategies, to cash in on the new marketing tool. It keeps itself abreast with software developments, to use it to make its work processes easier, better and more efficient, to benefit its employees and the end consumer.

Evidently, PepsiCo has strived to reach its position as the leader in the Beverage and Foods industry and is painstakingly committed to maintaining the position.