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PepsiCo mission statement has been worded by CEO Indra Nooyi as Performance

with Purpose and this principle is closely integrated with the strategic direction
chosen for the company. The most prominent aspects of PepsiCo business strategy
are based on the following six principles:
First, achieving growth through mergers and acquisitions (M&A). M&A can
offer the advantages of gaining access to competencies and infrastructure, reducing
direct costs and overheads and achieving organic growth. Recently, PepsiCo has
completed as a set of important acquisitions such as acquisition of juice and diary
businesses Lebedyansky and Wimm-Bill-Dann in Russia, Lucky snacks and Mabel
cookies in Brazil, and Dilexis cookies in Argentina. M&A can be specified as one of
the cornerstones of PepsiCo business strategy. As a result of an aggressive pursuit
of this strategy, today PepsiCo portfolio comprises 22 brands and each of these
brands have generated at least one billion USD in retail sales in 2015.[1]
Second, forming strategic alliances in the global scale. Specifically, strategic
partnerships have been formed with Tingyi in China in order to claim a share in
growing beverage market in China. Moreover, formation of a joint-venture with Tata
in India to enhance drinking water manufacturing capabilities, and initiation of
strategic partnership with Almarai in Saudi Arabia can be mentioned to illustrate
PepsiCos adoption of strategic alliances as an integral part of the corporate
strategy. Important strategic alliances are formed by PepsiCo at home markets as
well. Specifically, by forming a strategic alliance with Starbucks a global coffee
house chain, PepsiCo has been able to claim its share from increasing energy drink
market segment.
Third, focusing on emerging markets. An aggressive pursuit of this strategy has
had positive impact on the bottom line. The year of 2015 witnessed a double-digit
growth in the sales of snacks in China and Pakistan[2] and PepsiCo is also
strengthening its position in the Middle East. The company has been able to more
than double its e-commerce business in China in 2015.[3] Moreover, PepsiCo CEO
Indra Nooyi has publicly expressed commitments to further increase the level of
presence of the company in emerging markets.
Fourth, focusing on organizational culture. Organizational culture can be
defined as the collection of words, actions, thoughts, and stuff that clarifies and
reinforces what a company truly values[4] and the nature of organizational culture
directly impacts its performance in short-term and long-term perspectives. PepsiCo
CEO Indra Nooyi is widely believed to be an unconventional corporate leader for a
good reason. It has been noted that shes been known to walk the halls at Pepsi
barefoot, sometimes even singing along the way[5] and this fact communicates
her willingness to embrace her differences with positive implications on employee
morale and organizational culture.
The same message is effectively communicated to organizational stakeholders and
integrated into Pepsi Brand as well in a way that the brand marketing message is
associated with making the most of the moment, and embracing own
individuality. Being listed among the top 25 Worlds Best Multinational Workplaces
by the Great Place to Work Institute in 2012 and PepsiCo Canada being recognized

as one of Canadas Top 100 Employers for 2014 by Mediacorp Canada Inc[6] can be
interpreted as an indication of effective working culture within PepsiCo.
Fifth, developing and promoting the idea of One PepsiCo. Specifically, Indra
Nooyi has been striving to increase the level of association of individual brands with
PepsiCo company values and philosophy through promoting the idea of One
PepsiCo. This is meant to be facilitated through sharing supply-chain management
and infrastructure, operational costs for many brands within PepsiCo portfolio have
been decreased.
Sixth, innovation in marketing initiatives. A wide range of innovative
marketing initiatives developed by PepsiCo marketing team include Do Us a Flavor
campaign that involved consumers in 17 countries submitting flavor ideas,
development of Lipton Brisk Star Wars game application for mobile phones, and
using celebrity endorsement in an innovative manner by attracting a popular singer
amongst Pepsi brand target customer segment Beyonce Knowles. Importantly,
cross-cultural differences in various markets are taken into account when
developing and delivering PepsiCo marketing messages. For example, the marketing
tagline of Live for Now associated with Pepsi brand has been modified as Yalla
Now and Oh Yes Abhi for Middle East and Indian markets respectively taking into
account cross-cultural differences associated with these markets.
Moreover, the senior management focuses on the framework known as 5Cs to
guide PepsiCo business strategy and long-term planning. 5Cs stand for the
1. Commercial agenda
2. Building new capabilities
3. Increasing focus on costs
4. Fostering a culture of collaboration
5. Exercise discipline when it comes to capital returns
PepsiCo Inc. Report contains more detailed discussion of the companys business
strategy. The report also illustrates the application of the major analytical strategic
frameworks in business studies such as SWOT, PESTEL, Porters Five Forces, Value
Chain analysis and McKinsey 7S Model on PepsiCo. Moreover, the report contains
analyses of PepsiCo leadership and organizational structure and marketing strategy
and discusses the issues of corporate social responsibility.