Innovation

PepsiCo is a big innovation company. They have so many different lines of drinks from sodas to waters and they seem to do such a good job with the changing with the times. With the health concern that has been happening there has been a trend of the healthier drinks coming out on the market. With that being said they seem to foster innovation within their company to keep up with the trends in the market. They also have innovation in the technology and how they get their product out for example their vending machines and their dispensaries that they have in restaurants which is making them more technologically advanced which is changing with the times.

Organizational Structure

Pepsi Co. is a large company made up of many different divisions and an example would be PepsiCo Americas Beverages (PAB). There looks to be six different divisions in the Pepsi Co. Pepsi is a global company. Not only do they have to coordinate the many different divisions but they have to do it from all over the world. These divisions help to accomplish that goal of keeping the company on top doing well. Zein Abdalla is the president of Pepsi Co. Then underneath him there are six different Chief financial officers for all the different divisions. This is the hierarchy or command in the Pepsi Company.

            PepsiCo has four different global business units. These units are PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, PepsiCo Middle East and Africa. Each of these four different global business units has businesses under them. They all have different ones. This is how it is split up globally.

Pepsi Employee Culture

Pepsi Company has some interesting culture. Pepsi co has many incentives to get their employees to do the things that help the company succeed. Some of these incentives are insurances like medical and dental to also having retirement plans.  They also strive to help to help their employees be very healthy by giving tools and resources for being both physically healthy and also having financial counseling so that their employees can succeed. They also offer help if families need it by offering many different assistance programs for employees that may need help. Pepsi co seems so invested into their employees so they feel safe in their work environment and situation.

 

Global Comany

Pepsi Company is on the heals of Coca Cola Company when it comes to their global markets. Pepsi has been expanding its growth with the setting up of product supplies in more countries than had already have had presence in already. Pepsi has a foot in the door in over 200 counties according to the Pepsi Co website. In 2009, Pepsi Co had a two big deals that got them two huge advantages in their competitive market of the global soda market. These two big deals were through China and Latin America which got their feet in markets that were controlled by Coca Cola before.

Overall, it seems as though Pepsi Company has made their product global and sustained the market that they have had for a long time. Pepsi has many other substitutes that it has to compete with in both the global market and the United States market.

 

Business Level Strategy

Pepsi logo

Pepsi seems to be in a growth stage in the industry life cycle . The reason I believe they are in a growth stage is because they are doing many things to differentiate themselves from other companies such as Coke. In the differentiation process I think it is important to talk about their relationships with stores and different companies, so in other words there network is very strong. They are well known for their brand or image. They have many commercials that have famous actors or people drinking Pepsi products in them and that is what gives them their image. They also have good customer service. This is actually personally known by me because I had to call and deal with them because I bought a defective twelve pack of Pepsi and it was bad so they sent me coupons for a couple free twelve packs to make it up to me. It was exceptional service. I would say they are not doing much as far as trying to be a cost leader because all pop prices are the same the majority of the time so they don’t have lower prices.

Pepsi has its logo that keeps changing and that has a copyright along with they probably have patents on their different products. There are many substitutes for Pepsi but they are very successful and they try to stay on top. This is referring to Porter’s five forces model.  They also have bargaining power over their suppliers because they produce such large amounts of their product that they have to have a good relationship with their suppliers in order to keep up such a good product. I wouldn't say that Pepsi has control over the buyers just because they have other options if they don't want to buy Pepsi.

 

 

The Pepsi logo came from http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=8h1hjJRpz0PJuM&tbnid=hnv3uzuDZYUuxM:&ved=0CAQQjB0&url=http%3A%2F%2Fhtmlgiant.com%2Frandom%2Fwell-be-back-soon-drink-pepsi-products%2F&ei=QbBMUbimJcPc2gWu4IDYBg&bvm=bv.44158598,d.aWc&psig=AFQjCNE8VXQ4aF2hYz4_-_VXOpEMenHSaw&ust=1364066719267442

Intellectual Capital

Pepsi is a very large company. They are in the business of many different products. Pepsi has a large base for intellectual capital. From human capital such as employees and the knowledge they have of their jobs and just how to best do their job. They want to retain employees so they have everything from insurance to retirement plans and have a competitive workforce. They want the people they have working for them so they have the benefits to help entice them to stay. They have to have a good line of communication between their human resources communication and their employees. In order to keep themselves current with what their employees want they have to be evolving along with the generations to be as large and successful as they have been. With evolving times it is important to know what the employees value and what will keep them doing good work and keep them at Pepsi. Other than human capital they also have patents and copyrights that they have in order to keep their brand and image in good shape. They don't want just anyone to be able to make Pepsi on their own because then it would take away from their business. Pepsi overall has a lot of intellectual capital.

Internal enviroment

I want to talk about the value chain within Pepsi. Pepsi is such a large company I think that they don’t outsource many aspects of the value chain. I think they might outsource marketing just because they are all over the place. They also dont have a service. They distribute the product and then they are done with it. Pepsi has a general administration, but on that note I do not believe they have a service section. They have a pretty good outbound logistics because they are good at the distribution. they also must have a good Procurement to because they are such a large company that they make a mass amount of products so they have a buyer power. The also probably have a very productive inbound logistics because they have such a big operation so they need to be organized. I believe that Pepsi’s core competency is quality and price.