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.
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