Essays on SWOT Analysis of PepsiCo Case Study

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The paper "SWOT Analysis of PepsiCo" is a perfect example of a business case study.   The food industry is a wide sector in the market. The industry is characterized as being multi-complex as it comprises different sub-sector. Its importance cannot be overemphasized bearing in mind the contribution it has made of food and beverages for the world population. PepsiCo is a great world leader in convenient food, beverage, and snacks. It was founded in 1965 after the merger of Frito-Lay and Pepsi-Cola. For the past 40 years, the organization has delivered consistent and significant business growth.

PepsiCo, according to the 1999 annual report, is described as a growth company. Indeed, in 2007, it recorded a 13 percent growth in the total net revenue of $40 billion. The company iconic brands are in nearly 250 countries. These generate sales at the retail level of more than $99 billion. The main corporate objective of the company is to capitalize on the value of the shareholders’ investment via a strategy of close control of prices, increased sales, and astute the investment of the financial resources. With a series of company acquisitions, PepsiCo grew to become of the leading Food and Beverage Company in the United States. Murray Goulburn (MG) is a leading food company in Australia in the sector of the dairy industry.

The company was established in 1950 and it is entirely owned by the Australian dairy farmers. The growing and important area of the company does cover a range of products for the consumer and this represents over 40% of the total company sales. As seen in the PepsiCo, MG is also a growing company.

This is attributed to the fact that export has been on the increase in recent years. Export sales have increased by 5% with the main markets in South Asia and China. These countries accounted for the majority in exports. It is important to note that PepsiCo operates as a beverage producer, the soft drinks while Murray Goulburn is in a special category of food sector mainly producing products that are essential in health. Another difference between the companies is the level of operation. PepsiCo is a multinational company whose presence has been felt in the international market.

MG, on the other hand, is a large industry trying to create a niche in the international market. Food Industry in America The food industry is a major manufacturing sector in the United States. It has continued to experience steady growth in recent years. PepsiCo is one of the ten largest manufacturing companies that fall in the food processing sector. Others included Kraft Foods, Dean Food, Tyson Food, and Nestle. Several food companies have continued to venture into the industry. This is attributed to the fact that the American population has continued to increase and therefore, an increase in demand for food products for the consumers has increased. PepsiCo Strategy in the Market At present, PepsiCo has grown to be a global powerhouse.

It has grown to be the largest food and Beverage Company in North America and indeed, the second-largest company in the world. PepsiCo's main mission is to captivate consumers with the world’ s convenient and loved beverages and food. PepsiCo has key strengths that allow it to deliver its mission; creation of super brands that consumers enjoy around the globe; well-positioned to grow by region, trend, and category.

The beverages, nutritional and snack categories have attractive margins, returns, and growth. These categories are positioned to increase revenue at 6% or higher globally; by delighting locally the company is able to innovate globally. It has been observed that the balance of local and global innovation has delivered sustained strong growth; intense productivity focus; phenomenal employees who drive the success of the company through a commitment to excellence and performance and dedication to deliver purpose and performance.

Work Cited

Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, Food Manufacturing, 2009

Delforce, Robert, Andrew Dickson and John Hogan. "Australia’s Food Industry." Australian Commodities 12.2 (2005): 379-390.

Kanter, Moss, Lai, Rajiv and Baldwin, Eric, PepsiCo performance with purpose, achieving the right global balance, Harvard: Social Science Research Network, 2012

Siegel, Karen and Stuckler, David, Sick Societies: Responding to the global challenge of chronic disease. Oxford: Oxford University Press, 2011

Xun, Lei. The determinants of US outgoing FDI in the food-processing sector. Delaware: University of Delaware, 2006.

Annual Report, The power of PepsiCo, 2011

MarketWatch. "PepsiCo, Inc." MarketWatch August 2010: 45-52.

Penzkofer, Andreas. The Market of Pepsi / PepsiCo. Munich: München GRIN Verlag, 2007

Murray Goulburn. "Quality, safety, efficiency and innovation." 2012. .

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