Pepsi-Cola

15 Pages 3691 Words

's sales come from Frito-Lay; this is a threat if the market takes a downturn.
· PepsiCo now competes with Cadbury Schweppes, Coca-Cola, Kraft.
· Size of company will demand a varied marketing program; a cookie-cutter approach will not work.

One of PepsiCo’s major strengths is its reputation with minorities. “PepsiCo has long been dedicated to instilling the broadest possible base of diversity within our own company and among the companies who serve us, and is a strong advocate of diversity within our communities” (http://www.pepsico.com/diversity/). PepsiCo has been a leader in seeking out and working with minorities and women suppliers. The company has received many honors for its participation in the community, and its undying support to women and minorities. Some of these honors are: The One Hundred Companies Providing the Most Opportunities to Hispanics, America’s 50 Best Companies for Minorities, The World’s Best Global Company, America’s Top Corporation for Women’s Business Enterprises and Top Companies for Minority MBAs. Reputation is one asset that will never show up on any balance sheet, or financial statement, but is by far the most valuable asset a firm can hold.
PepsiCo has made continuing efforts to diversify its repertoire. It does not want to be known merely as a drink company; conversely, it owns the number one maker of snacks, Frito-Lay. In 1965 the mergers of Pepsi Cola began with the merger of Frito-Lay. Since 1965, growth has continued with the mergers/purchases of 7-Up International, KFC, Pizza Hut, Taco Bell, Mug Root Beer, Tropicana, and Quaker Oats. With such a diverse portfolio of companies, PepsiCo has been forced to devote a common vision and give direction as a company. The order to produce synergy within an organization as large as PepsiCo is a tall order to fill. The weakness found in PepsiCo’s internal environment is just that, it is hard to inspire vision and direction for t...