PepsiCo
In this text, I select PepsiCo as my company of choice for the analysis. Amongst other things, I will determine the impact PepsiCo's primary stakeholders, vision, and mission have on the company's overall success. I will also carry out an analysis of the five forces of competition and how they impact on PepsiCo. Further, in addition to conducting a SWOT analysis of the company, I will also discuss a wide range of other strategic management issues in relation to PepsiCo.
PepsiCo: Overview
PepsiCo describes itself as "a world leader in convenient snacks, foods and beverages" (PepsiCo, 2012). Some of the most popular brands on PepsiCo's stable include but they are not limited to Pepsi Cola, 7UP, Lay's potato chips, Tropicana Juices, etc. Headquartered in New York, the company's main competitor remains the Coca-Cola Company. PepsiCo's current chief executive officer is Indra Krishnamurthy Nooyi.
Impact of PepsiCo's Primary Stakeholders, Vision, and Mission on its Overall Success
PepsiCo (2012) outlines its mission as:
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners, and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.
In basic terms, a closer look at PepsiCo's mission statement clearly indicates that it has its focus on all the key stakeholders of the company, i.e. investors, employees, business partners (e.g. suppliers), communities in which it operates, as well as consumers. This unifying approach in my opinion acts as a lighthouse of sorts for the company as far as its purpose and direction is concerned. In that regard, it is unlikely that PepsiCo could veer off the path as it seeks to attain its purpose and/or fulfill its commitment to stakeholders. The relevance of the said mission statement cannot hence be overstated when it comes to the enhancement of the PepsiCo's overall success.
When it comes to the PepsiCo's vision, the same is outlined as: "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate -- environment, social, economic -- creating a better tomorrow than today" (PepsiCo 2013). Essentially, a vision statement captures a given company's aspirations. PepsiCo's vision statement tells us what the company wants to become. In that regard, it is largely motivational and inspirational to PepsiCo's employees, shareholders, customers, and other partners. Thus in addition to serving as a roadmap for the company's future, PepsiCo's vision statement acts as an adhesive that bonds together all the relevant stakeholders of the company. The vision statement thus remains critical as far as the overall success of PepsiCo is concerned.
PepsiCo's key stakeholders also have an important role to play in the overall success of the firm. The company's key stakeholders include but they are not limited to customers, employees, shareholders, suppliers, and the government. Customers purchase the products offered for sale by the company. Their purchase decisions affect PepsiCo's bottom-line and hence its overall success. Employees on the other hand affect PepsiCo's overall performance through the level of commitment that they exhibit in their work. When it comes to shareholders, it is important to note that their decisions (via the board of directors) have a significantly impact on the success of the firm going forward. To ensure that its operations run smoothly, PepsiCo needs the cooperation of suppliers. This is more so the case given that the overall success of the firm on this front, especially as far as production is concerned is largely hinged on the timely, efficient, and cost effective delivery of the required raw materials. Lastly, government regulation could force PepsiCo to modify, review, or even disrupt some aspects of its operations. This could have an impact on the overall success of the firm.
The Five Forces of Competition and their Impact on PepsiCo
Designed by Henry Porter, the five forces of competition according to Henry (2008) include "(1) threat of new entrants, (2) bargaining power of buyers, (3) bargaining power of suppliers, (4) threat of substitute products or services, and (5) intensity of rivalry among firms in an industry." As the author further points out, it is by examining these forces that an organization enhances its ability to assess how effectively it can compete in a given industry (Henry, 2008).
When it comes to the threat of new entrants, Henry (2008) points out...
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