Introduction

• PepsiCo was founded in 1965 through the

merger of Pepsi-Cola and Frito- Lays.
• Tropicana was acquired in 1998 and PepsiCo
merged with The Quaker Oats Company,
including Gatorade, in 2001.
• The company consists of Frito-Lay North
America, PepsiCo Beverages North America,
PepsiCo International and Quaker Foods North
America.
• PepsiCo brands are available in nearly 200
countries and territories and generate sales at
the retail level of about $92 billion.
 Mission
• “To be the world's premier consumer products
company focused on convenient foods and
beverages. ”
• Seek to produce healthy financial rewards to
investors as they provide opportunities for
growth and enrichment to their employees,
their business partners and the communities in
which they operate. 
• And in everything they do, they strive for
honesty, fairness and integrity.
 Honours
• Named one of the Best Graduate Employers
in China by university students in China, for
the second year in a row.
• Doritos “Crash the Super Bowl” program won
the 2007 Cannes Gold Medal Lions Award
in the “Fast Moving Consumer Goods”
category.
• Covalence published its Ethical Ranking for
2006, ranking PepsiCo 6th for Best
Reported Performance .
• PepsiCo China was awarded a 2006 Best
Corporate Public Image Award for its brand
image of vitality and youthfulness.
• Indra Nooyi receives India Abroad
award.
 Company’s Structure
• Co-founder of PepsiCo
-Donald M. Kendall
• Indra K. Nooyi
-Chairman of the Board and Chief Executive Officer
• Mitch Adamek
-Senior Vice President and Chief Procurement Officer
• Michael D. White
-Chief Executive Officer, PepsiCo International and Vice
Chairman, PepsiCo
• Julie Hamp
-Senior Vice President, PepsiCo Communications
 Sustainable advantage
• Three major sustainable advantages give
PepsiCo a competitive edge as they operate in
the global marketplace:

• Big, muscular brands;

• Proven ability to innovate and create differentiated
products; and
• Powerful go-to-market systems.
 Competition
• Their chief beverage competitor, The Coca-Cola
Company, has a slightly larger share of carbonated
soft drink (CSD) consumption in the U.S. and
outside.

• PepsiCo have a larger share of chilled juices and

isotonics.

• Their snack brands hold significant leadership

positions in the snack industry worldwide.
 Financial position of PepsiCo
(2006)
• Volume growth - 5.5%.
• Net revenue growth - 8%.
• Division operating profit growth - 7%.
• Earnings per share growth - 13%.
• Total return to shareholders was 8%.
• Return on invested capital was 26%.
• Cash flow from operations was $6.1 billion and
management operating cash flow was $4.1
billion.
 Risks
• product demand,
• their reputation,
• information technology,
• supply chain,
• retail consolidation, the loss of major customers
and failure to maintain good relationships with
their bottling partners,
• global, economic, environmental and political
conditions,
• the regulatory environment,
• workforce retention and outsourcing,
• raw materials and other supplies,&
• competition.
Logo
Thank You

Karishma Seth
PGDM07028