Running head: PEPSICO 1

PEPSICO’s Strategic Management

Ondrae Meyers

Trident University International

MGT599 Module 1 Case

Dr. Michael Laverty

May 2019
PEPSICO 2

Executive Summary

This research paper assessed the international company, PepsiCo. The study was

conducted to be able to nurture a more comprehensive and appropriate realization on the

fundamental operations of the organization, most specifically when implementing changes.

Through ensuring the imposition of strategic management and leadership, PepsiCo is most likely

to achieve profitability and long-term success. PepsiCo employed various strategies in

management, which are evaluated and analyzed in this research. Nevertheless, all the approaches

they used enabled them to guarantee organizational success. Various efficient approaches should

be referred to in order to ascertain proper evaluations are conducted to demonstrate their goals

and have them align with the vision, mission and values statement of the organization.
PEPSICO 3

PEPSICO’s Strategic Management

Businesses are likely to be affected by several conditions, elements and environments. It

is important that an organization recognizes the significance of strategic management which will

direct leaders and employees towards realizing their goals and objectives. Evaluations are

deemed significant to strategic planning for this will help in ensuring the competitiveness of the

organization since it will serve as guidance and direction for leaders and managers as they try to

apply the necessary changes and improvements on the processes and operations of the company.

It was discussed by McNamara (2009) that an organization’s success will be made possible by

ensuring that approaches used are associated to its vision, mission and values statement. Doing

so will also guarantee the development on the plans and strategies that will be implemented in

the company. As for PepsiCo, its management should be able to employ rational strategies

aligned with their vision, mission and core values so as to generate proper decisions that will

further assist them in realizing more productivity, competitiveness and success.

PepsiCo (2018) explained that the organization was founded in 1965. Ever since, the

organization has been venturing on the food and beverage industry and was able to easily

dominate the global market. They are catering their food and beverage products to millions of

consumers throughout the world. The company succeeded in broadening their portfolio through

comprehensive varieties of food and drinks. The organization is eyeing on fulfilling the needs of

the target market. According to PepsiCo (2018), the company has already established 22 brands

and has been acquiring $1 billion-worth of annual sales. The organization highly focuses on

institutionalizing strategic management, as they strongly believe on its capability to bring them

more profits and success.

PEPSICO 4

The Vision

Organizations should be able to come up with proper and pertinent vision statement that

must be further characterized by quality content. It was pointed out by Heathfield (2018) that a

company should submit efforts to generate as statement that will expose both its short and long-

term goals and objectives. A good vision statement should likewise stress on the illumination of

the business with regards to the manner by which they will try to realize their goals and

objectives. As for PepsiCo, its vision statement is “Performance with a Purpose”. PepsiCo (2018)

mentioned that this vision statement actually aligns with the approaches of the organization that

will likely bring them success. Their vision seems as if they are really focusing their operations

for their stakeholders.

It’s vision statement also illuminates its objective to become one of the leading

organizations in the industry. This will cause more implications towards the strategies that will

be employed in the organization. Heathfield (2018) stated that the creation of the vision

statement also led to more clarification of the most efficient methodologies and approaches that

are significant in relation to the achievement of their objectives. It is highly essential to ensure

that leaders and employees are awarded with appropriate direction in performing their roles and

duties in the company. PepsiCo must also ascertain sustainable development. It is important that

they remain consistent in terms of administering the organization. This implies the need to come

up with sensible plans and strategies that will allow them to surmount challenges that will come.

Aside from ensuring sustainability, PepsiCo must also regard on their corporate responsibility,

which is, to give back to the society, that is actually relevant to the accomplishment of their

responsibilities to their stakeholders. This will certainly lead to implications towards realizing

proper values, practices and conducts.

PEPSICO 5

Heathfield (2018) mentioned that the primary focus of the vision statement is actually to

inspire the employees to perform their best and realize their goals. PepsiCo’s vision statement is

effective in stimulating the employees’ interests to excel in their functions and responsibilities. It

is one way to encourage the employees to administer their roles and tasks accordingly. It is one

of those motivational factors that will surely capture the employees’ hearts. Aside from this,

PepsiCo’s vision statement also elucidates the insights and values that will guarantee the

realization of all their organizational processes. It was stated by Verna (2009) that the vision

statement must regard on an organization’s future conditions that means several years from the

present. This will be a way to direct employees towards the direction that the company is eyeing

for. In PepsiCo, the vision statement is referring to the implications that is accounted to members

and leaders while they realize sustainable development.

Verna (2009) further explained that it would be really significant to come up with a well-

defined vision statement, specifically with regards to the plans and approaches that must be

integrated towards the company’s processes. It must be associated with the objectives of the

company since it will have direct implications on the decisions and behaviors of the stakeholders

towards the business. This should also stress on the service and the purpose of it so as to

encourage more improved performances and proper execution of duties and responsibilities. As

per Hammonds (2007), the vision statement should be able to fulfil specific criteria so that it

would be effective in supervising leaders and employees.

The Mission

The mission statement is created in order to elucidate the primary purpose of the

organization. This must regard on the need to express and share information that will solidify the
PEPSICO 6

company’s functions and operations. According to PepsiCo (n.d.), the mission statement of the

company stresses on their ambition to become the biggest and the most prominent food and

beverage company all over the world. It is also one of their goals to become the first brand that

clients will choose. The mission statement of the company is demonstrating significant

information and the target consumers that they try to extend themselves to. PepsiCo (n.d.)

explained that its mission statement also includes the range of products that they could offer their

clients with such as varieties of beverages, snacks and healthy food alternatives. PepsiCo’s

products are sold at reasonable prices and comes with health benefits and good taste.

Nevertheless, PepsiCo should see to it that they regard on their sustainable development in their

mission statement.

PepsiCo’s mission statement comes with quality and inclusive content. It has illuminated

the specific functions that must be fulfilled by the leaders and employees in order to come up

with whatever goal they are anticipating for. Additionally, the mission elucidates the

organization’s purpose that is aligned with the trading of food and beverage products and

guaranteeing the fulfilment of client’s needs and demands. The mission statement is highly

instrumental in relation with its operational processes, considering the fact that it regards on the

aim of catering satisfaction.

PepsiCo’s mission statement is rendering the public with the fundamental information

that they have to be aware of. Meanwhile, McNamara (2009) stated that a mission statement

should be of upright quality and must concentrate on the operations of the company, while

likewise, regarding on the essential association that must be established with different

stakeholders that may be possible by nurturing proper partnerships and initiatives to demonstrate

proper conducts and behaviors.

PEPSICO 7

McNamara (2009) pointed out that an ideal mission statement must be able to stress more

on the illumination of organizational goals and objectives. It must regard on providing

consumers with product options equipped of reasonable affordable prices. Moreover, PepsiCo

(n.d.) explained that there should be focus on the deliciousness and nutrition of the products.

This will lead to coming up with the perfect food products that customers would prefer. It is

important to focus on the product’s nutritional content since this will be one of the distinctive

elements that will make PepsiCo different from other brands.

The mission statement of an organization is directing leaders and managers to perform

their duties accordingly. Verna (2009) explained that this will help in elucidating the goals and

merits that will be associated with the company. The vision statement also focused on the

significance of the principles and objectives of the business that must be fulfilled. This will

encourage leaders to render their stipulations that will sustain the organizational structure of the

business. The leaders in PepsiCo will be highly significant in fulfilling the company’s mission

since they are the ones who will perform the strategies and approaches that will have to

demonstrate the potent organizational culture and ethical virtues within. The mission statement

of PepsiCo has been efficient in serving significant information that are instrumental to the

operational system of the organization.

The Values

According to Heathfield (2018), the values statement is also deemed significant to a

company since it focuses on illuminating the virtues and values that must be incorporated while

striving for development. Different principles should be able to direct and be relevant to the

values statement, considering the implications it could bring towards then processes, operations
PEPSICO 8

and realization of the company’s obligations to their clients, their stakeholders and to the

environment.

Additionally, PepsiCo (n.d.) explained that it stresses on the need to regard on the

sincerity of the company’s goals and objectives. Certain values are regarded in terms of

demonstrating proper behavior and traits. This is embracing diversity, patronizing balance and

inclusion and guaranteeing the execution of sensible actions relevant to acknowledging the rights

and needs of the stakeholders. The values statement of PepsiCo is significant in determining

proper behaviors, values and actions, and therefore, be able to ensure productivity within the

organization.

Alignment

When creating vision, mission and values statement, it is very important to incorporate

the needs and demands of the stakeholders, just like what PepsiCo has done with theirs’. By

being able to stress on the interests and needs of the stakeholders, it is more likely that they will

be more contented and satisfied. The primary objective of the organization, as per PepsiCo (n.d.)

is actually to serve their clients with products equipped of high nutritional content that will

ascertain the realization of their duties and obligation, relevant to that of the needs of the

employees and the environment. The organization has also maintained the alignment of the

statements with the interests of the stakeholders. They have seen to it that their performance

actually holds a purpose. This aspect is relevant to the initiatives to become better and be able to

fulfil the needs and demands of the customers. Furthermore, PepsiCo’s mission statement has

been very direct in focusing on the stakeholders’ interests, specifically in terms of consistency

and partnerships. It is highly essential to ensure cognizance of the significance of association as

PEPSICO 9

this will guarantee the more appropriate satisfaction of different tasks, functions and

responsibilities.

Changes

PepsiCo managed to come up with ideal vision, mission and values statements. All these

have sharply stressed on informative statements that must be made comprehensible to the public.

The company is well-aware of its purpose, objectives and goals. Given that there must be

changes to those, it would be ideal to add some rationale, as well as several means on how to

come up with the product that customers would be clamouring for. Nevertheless, all the

statements are made to address things generally, that’s why there is no need for constant

updating, not unless drastic changes must be employed.

Conclusion

In general, the vision, mission and values statement of PepsiCo have caused implications

on the operational system of the business. With that, it would be necessary to conduct

appropriate evaluations that will help in ascertaining one’s comprehension of the approaches that

must be utilized to realize the goals and objectives accordingly. Moreover, evaluations must be

precisely executed in cases where there are necessary changes that must be applied to the

organization. Then again, the mission, vision and values statements of PepsiCo had been

efficient in nurturing the productivity and proficiency of the employees. It is important to note

that strategic management will make it possible to carry out comprehensive assessments towards

organizations to be able to guarantee proper knowledge and awareness of the various

environments that are causing implications towards the functions, processes and operations

within.
PEPSICO 10

References

Hammonds, K. (2007). Michael Porter's big ideas. Fast Company, 44. Retrieved

from https://www.fastcompany.com/42485/michael-porters-big-ideas

Heathfield, S. M. (2018). Build a strategic framework: mission statement, vision, values.

Retrieved from

http://humanresources.about.com/cs/strategicplanning1/a/strategicplan.htm

McNamara, C. (2009a). Basics of developing mission, vision and values statements. Retrieved

from http://www.managementhelp.org/plan_dec/str_plan/stmnts.htm

McNamara, C. (2009b). Developing your strategic plan. Retrieved from

http://www.managementhelp.org/np_progs/sp_mod/str_plan.htm

PepsiCo. (n.d.A.) Our Global Code of Conduct: Doing Business the Right Way. Retrieved from:

http://www.pepsico.com/About/Global-Code-Of-Conduct

PepsiCo. (n.d.B.). Performance with Purpose. Retrieved from:

http://www.pepsico.com/sustainability/Performance-with-Purpose

PepsiCo. (n.d.C.). Sustainability. Retrieved from: http://www.pepsico.com/sustainability

PepsiCo. (2012). Global Code of Conduct. Retrieved from:

http://www.pepsico.com/docs/album/global-code-doc/gcoc_2016/2016-en-english-

booklet-code-of-conduct-code-of-conduct-effective-oct-1-2016.pdf?sfvrsn=8

PepsiCo. (2018). 2017 Annual Report. Retrieved from:

http://www.pepsico.com/docs/album/investor/pepsico-inc-2017-annual-report.pdf

Verma, H. V. (2009). Mission statements--a study of intent and influence. Journal of Services

Research, 9(2), 153.