Executive Summary
PepsiCo stands out as one of the largest food and beverage companies in North America. Its focus on manufacturing and distribution of its unique brands such as Gatorade, Pepsi, and Tropicana among others has enabled the company to gain notable revenues and customers from different corners around the world. The company's mission, objectives, and business strategy have guided the company in the right direction as the employees and managing committee have succeeded in securing a strong place in the market.
Introduction
Different strategies and policies have made PepsiCo succeed in different parts of the world due to its simple organizational design that has succeeded in getting the best out of its employees in every department. This work will give a clear insight of key strategic control systems implemented to make the company advance on its profits margins and gain more market superiority in the brands and services manufactured and distributed by PepsiCo.
Delegate your assignment to our experts and they will do the rest.
Main Body
One can tell from PepsiCo's mission and objectives that the main aim of the company is to satisfy its consumers around the globe. The management ensures products are healthy, fun, delicious and affordable to make the company convenient and able to satisfy the customer needs. The company aims at maintaining a friendly relationship with the society as from the mission statement one can tell they focus on taking care of the environment. Notable contributions to the environment such as conservation of water sources in its operations have enabled the company gains good reputation and loyalty from consumers who appreciate the business strategy and efforts by the company to give back to the society. Addressing of such crucial environmental issues has painted the company in a positive light to many populations.
PepsiCo focuses on understanding their customers and specific preferences the society likes. Market researchers and surveys help the company in narrowing down to specific tastes and brands that consumers prefer, this way the company can sustain its customers and capitalize on ideas to generate more revenues. The policy where the employees in the company act as the first consumer shows the confidence the company has in its products. Honest opinions from the employees depict the company as an honest and reliable organization that ensures quality products are dispatched to the consumers. Complaints and opinions from the employees on the products are adhered to keenly and rectified if need be. This ensures only quality products are produced and distributed to the public.
Stoddard, (2006) agrees that the company knows the bargaining power buyers have on the market. PepsiCo faces competition from other food and beverage companies hence the management focuses on capitalizing on the consumers by ensuring the company settles for only quality raw materials. This keen strategy ensures loyalty on the products lasts for a long time because the quality of raw materials determines the quality of the products dispatched for sale. Singaravelavan, (2012) asserts that the competitiveness of the market motivates the company, its employees give their best in ensuring quality services, and products are produced year in year out.
Another strategic approach done by PepsiCo is the handling of substitute products in the market. The company has established itself as one of the top 10 largest food and Beverage Company in the world because of its substitute products that have enabled consumers to have a wider range of products to choose. Largescale production of products such as Mountain Dew, Pepsi, Mirinda, Quaker Oats, and Doritos amongst other commodities has enabled the company to strategize itself in different fronts, as consumers are encouraged to try out different products from the same company hence ensuring maximum profit margins are targeted and maintained.
Its main headquarters in the USA makes it a favorable environmental to do business.
This is clear from the conducive political and legal policies established in the country, which make it successful. Despite higher tax rates in the country, credit for business developments is easily accessible thus providing best conditions for generation of revenues. The company has also implemented technological advancements in its operations and production as machinery and office hardware upgrades have been fitted in the company’s system. This has ensured the company has knowledgeable employees who are effective on new machinery and technological advancements hence more efficiency in the company’s operation.
The lack of fit that is evident from the company's strategy and its mission, objectives, values, and vision is its inability to provide healthy food products for its consumers. As its mission suggests, the company aims at providing different variety of food substances that individuals can access and consume during any time of the day. Healthy products that consumers can purchase for breakfast, daytime and evening treat hence live up to its stand as a convenient company in the market.
PepsiCo has embedded itself perfectly to the ethical prescriptions; the company obeys the law in every environment it does business. The company files its taxes on time as required by law in every state and country where the branch has been opened or product dispatched. Secondly, PepsiCo's management is also evident as the majority of the consumers have been contented with the products and services provided the clear articulation of the company's purpose in the food market. The wide variety of brands under PepsiCo has enabled it to satisfy majority of consumers in United States of America and other world markets in general. Lastly, the employee development structure in the company has enabled the company reaches a new height, and profit margins as the ethics training carried out on new employees have enabled an emotional and robust workforce to operate in the company. The strategic training conducted has enabled PepsiCo to have employees who care about the consumers hence encouraging quality products is available for purchase.
Singaravelavan, (2012) agrees that the company can learn and adjust on ways it can come up with new products that can be able to cope up with developing social trends such as more populations opting to consume healthy products. More consumers are reducing the intake of carbonated drinks and specific snack in the food industry. I would suggest the company should focus on producing new products such as vegetable snack like crisps and healthy drinks like nutrient supplements and natural mineral water for its consumers. This way the company will be able to compete with other food and beverage companies, which provide healthy products and not fast foods and carbonated drinks. Implementing this strategy will guarantee the company remains relevant and reliable in satisfying the consumer needs hence certify the profit margins do not drop due to rigid business implementation strategies. The company can also collaborate with potential small-scale healthy food and beverage providers and help the business grow due to its established market connection to ensure PepsiCo stay relevant in the business by producing healthy products that are gaining rapid recognition in the food industry.
In conclusion, these strategic implementations will enable the company to stay relevant in the food industry market. Adhering to new ideas that focus on healthy products will enable the company gain more market strength and guarantee loyal customers who want to switch to good brands stick with products manufactured by PepsiCo.
References
Stoddard, B. (2006). Warman's Pepsi field guide: Values and identification . Iola, WI:Krause Publications.
Singaravelavan, R. (2012). Food and beverage service. New Delhi, India: Oxford University Press
