Essays on PepsiCo Inc Business Ethics Case Study

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The paper "PepsiCo Inc Business Ethics" is a perfect example of a business case study. Pepsi has continued to shake off major tests to its survival and profitability for many decades. The story has been one of the heroic decisions and sometimes costly mistakes that threatened to make the brand Pepsi extinct. In recent years, however, Pepsi has been doing great to please each and every segment of its stakeholders in equal measure although some stakeholders still feel more needs to be done by the company in order to improve its stakeholder relations.

Pepsi has taken a great deal to balance between the interests of all stakeholders as discussed in the following sub-headings. 1.1 To Shareholders Shareholders are the contributors of capital in a business, they might be concerned about other aspects of a business but their chief concern is the profitability and stability of a company (Sharp, 2005). PepsiCo has been on a growth momentum at least for the better part of the past 3 decades. Pepsi has engaged in major acquisitions of performing brands in the United States and other parts of the world.

These acquisitions have increased its market share and consequently shareholders value through the increased asset base of the company and profitability as well. In the year 1997 Pepsi acquired merged with Frito-Lay Inc. to become PepsiCo Inc. there have been other major acquisitions such as the acquisition of Tropicana Products, Taco Bell and Pizza Hut Inc and also partnerships with world-recognized brands like Starbucks. All these combined with the continuous improvement of existing brands and introduction of other brands has ensured that the company remains profitable enough to roll out major advertising campaigns to compete with other players in the industry to give its shareholders value for their investments. 1.2 To Customers Without customer concern, a business will not thrive.

It will only make a profit in the short run but will not be able to sustain sales in the future and guarantee the perpetuity of the business concern (Mohan & Vilcox, 2007). A good entrepreneur is always aware of this fact.  

References

Carroll.A.B., Buchholtz.A.K., (2011) Business and society: Ethics and stakeholder management, Cengage learning

CNN., (2007) “Aquafina lebels to spell out source-tap water”, article available online at http://www.cnn.com/2007/HEALTH/07/27/pepsico.aquafina. [Accessed on 6 Dec 2012]

Ferrell.O.C., Fraedrich.J., (2012) Business Ethics: Ethical Decision Making & Cases, Cengage Learning

Heussner.K.M., Berkowitz.L., (2009) “Is Pepsi’s New Iphone App in Poor Taste?” ABC News, Available online at http://abcnews.go.com/Technology/AheadoftheCurve/pepsis-iphone-app-poor-taste/story?id=8817417 [Accessed on 6 Dec 2012]

Kalb.I.S., (2002) E-Marketing: What went wrong and how to do it right, K&A Press

Majumder.S, (2010) Indian state bans Pepsi and Coke, BBC News, available online from http://news.bbc.co.uk/2/hi/south_asia/4776623.stm [Accessed on 6 Dec 2012]

Mohan.t, Vilcox.M., Eds., (2007) Contemporary issues in business ethics, Nova publishers

PepsiCo., (2010) “PepsiCo Foundation”, article available online at http://www.pepsico.com/Purpose/PepsiCo-Foundation.html [Accessed online on 6 Dec 2012]

PepsiCo., (2009) Annual Report, available online at http://www.pepsico.com/annual09/environmental_sustainability.html [Accessed on 6 Dec 2012]

Sharp.D., (2005) Cases in business ethics, SAGE

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