Discuss PepsiCos Operations Management
Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.
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This paper looked at the operations of the PepsiCo Company. The company has its origins in the United States of America but it has operations in countries worldwide ranging from the large emerging companies of Brazil, Russia, India, and China to the small Caribbean Islands. The company’s products are available in more than 200 countries.
PepsiCo was initially established as Pepsi in 1968 and is a carbonated soft drink in the beverage industry. The company’s development has majorly been through diversification and acquisitions in the food and beverage industry. An essay on Pepsi Company Business Operations majorly looks at both its internal and external environment and its strategic positioning and opportunities which it can utilize to improve its products and services.
PepsiCo's mission is to be the leading and most convenient company in the beverages industry. The companies seek to offer financial rewards to investors who in turn will avail opportunities for the growth and development of the company, the workforce, and their business partners with whom they cooperate in the course of their business. The PepsiCo Company also strives for excellence, honesty, and integrity in everything they do. The operations of the PepsiCo Company and its vision aim at continually improving all their areas of operation.
This essay looked at Operations Management at PepsiCo and how it has led to its growth. Operations management refers to the planning, scheduling, and controlling of all organizational activities that can effectively transform inputs into outputs and services. The concept primarily focuses on planning, manufacturing, quality management, production management, accounting, and management systems among many others. PepsiCo is an American-based multinational corporation that is engaged in the manufacture, marketing, and distribution of a broad range of snack foods and beverage brands including the iconic Pepsi-Cola, which was formulated in 1898 by a pharmacist who founded The Pepsi-Cola Company. It became PepsiCo in 1965 after a merger with Frito-Lay, Inc.
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Discuss PepsiCo’s Operations Management Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the concept of Operations Management and how it is used in various organizations to boost organizational growth
- Understand how Operations Management activities are applicable to PepsiCo in achieving its set goals and objectives.
- Learn how to apply the concept of Operations Management to real-life companies.
1.0 INTRODUCTION
Founded in 1898 as Pepsi Cola, the Pepsi Company is one of the leading beverage companies in the food and beverage industry. PepsiCo came about as a result of Pepsi-Cola merging with the Frito-Lay Company in 1965. It is a leading global beverage and convenience food company with a large portfolio of goods, such as Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. The company manufactures, markets, and distributes a wide range of products and services to customers in more than 200 territories. As of 2022, the company raised an annual revenue of $86.3 million up from $79.4 million in 2021 which was an increase of 9%.
Leading beverage companies worldwide in 2022, based on sales
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The global beverage industry is dominated by two major players PepsiCo and Coca-Cola. Pepsi is one of the world’s largest food and beverage companies having a 25.6 % market share with an $86.3 million revenue and major competitor Coca-Cola has a 40% market share.
The company is focused on growing its international market. PepsiCo is one of the largest beverage producers in the world and it is the world’s leader in its Frito Lay division in the food industry. PepsiCo has a number of competitors in the industry among which include; Coca-Cola Company, Campbell Soup Company, Conagra Brands, Inc., Hormel Foods Corporation, Kellogg Company, Keurig Dr Pepper Inc., The Kraft Heinz Company, Link Snacks, Inc., Mondelēz International, Inc., Monster Beverage Corporation, Nestlé S.A., Red Bull GmbH and Utz Brands, Inc. (PepsiCo annual report 2022)
This report aims to examine and evaluate the external and internal factors that affect the company's performance and direction. It will determine if the company has a strategic fit or drift with its environment and goals.
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