History and structure of PepsiCo - Free Essay Example

Pepsico is founded by Donald M Kendall. He was the chief executive officer of PepsiCo and Herman w lay chairman and chief executive officer of Frito-lay through the merger of the two companies. Pepsicola was created in the 1890 by Caleb Bradhan. Firto-lay was formed by the merger of Frito company in 1961. Herman is chairman of the board of the director of this Donald M Kendall is president and CEO. The new company report sales of 510 million dollar and has 19000 employees. Major product of the company. Pepsi-colaDiet Pepsi and mountain dew. Mountain dew launch its first campaign yahoo mountain dew. Doritos brand tortilla chips are introduced . Pepsi introduced the industry`s first two liter bottle. Pepsi is the first company to respond to consumer preference with light weight, recyclable plastic bottles. Pepsico acquires pizza hut was founded in 1958 by Dan and frank Carney. In 1980 PepsiCo food service international is formed to focus on overseas development of restaurant. Pepsico had 111000 employees in 1980. Pepsico launches PepsiCo food system, its restaurant supply company. In 1981 five me a dew success the slogan reach for the sun, reach for the mountain dew. In 1985 PepsiCo is now the largest company in the average industry. The company has revenue of more than 7.5 billion dollar more than 137000 employees. Pepsico available in nearly 150 countries and in 10 international markets. In 1990 PepsiCo sign the largest commercial trade agreement in history with the soviet union. Pepsico profit exceed 1 billion dollar for the first time. Key facts Global headquarter situated in New York. Annual revenue nearly 60 billion dollar , 52% beverages, 48% snacks and foods 61% in the U. S and Canada , 39% international. Chairman and CEO of this company Indra K Nooyi Now Pepsico has 285000 employee. Corporate structure Pepsico is comprised of four business units 1.Pepsico Americas beverages 2.Pepsico America foods. 3.Pepsico Europe . 4.Pepsico Asia, Middle east , Africa. Strategies for growth Pepsico has several key strategies for long term, sustainable growth . Building the company`s global macro snack portfolio. Responsibly and profitably growing the company`s beverage business. 3. Building the company`s nutrition business, in dairy , grains, fruit and vegetables. 4. Delivering on commitment. 5. Refreshing the organization to prosper in a changing environment. Some brands of PepsiCo Pepsico offer the world`s largest portfolio of billion- dollor food and beverages brands, including 19 different products line. Some brands name following; Pepsi Aquafina Lipton Mirinda Mountain dew Fritolay Tropicana Quaker Energy juice AMP Sabritus Walkers Gamesa Sierra mist 7up Pepsico in India Pepsico enter in Indian market in 1988 by joint venture with the Punjab government owned Punjab agro industrial corporation and Voltas India limited. They sold Lehar Pepsi until 1991, when the use of foreign brand was allowed PepsiCo bought out its partners and ended the joint venture in 1994. The headquarter of Pepsi in India is in Gurgaon and chairman of Pepsi Mr. Rajiv Bakshi. Presently it is operated in196 countries. Pepsico is the second largest food beverage company in the world. it manufactures market sales a variety of salty, sweet grain based snakes, carbonated non-carbonated PepsiCo seeds to achieve growth long turn value in it operational activities by creating competitive advantage through new product innovation. At PepsiCo were committed to achieving business and financial success while living a positive imprint n society- we delivering what we call a performance with purpose. Grow international revenue art two times real global GDP growth rate. Ensure high level of associate engagement and satisfaction as compare with other 500 companies. Launching its agro-business in India with special focus on exports of value-added processed foods, Pepsi Foods Ltd. (PepsiCo hereafter) entered India in 1989 by installing a Rs 22 crore tomatos processing planrt at jahura in Hoshiarpur district of Punjab. The company want to produce asptically packed pastes and pures for the international and national market. Before it goes ahead, the company recognized that the investment in agro-processing plants would not be viable unless the yields and quality of agricultural produce to be process were up to international standards. At that point of time, tomato had never been cultivated in Punjab for its solid content, with a focus on high yields and other desirable processing characteristics such as colour, viscosity and water binding properties. Furthermore, little effort had been made to create a database on the performance of various varieties an d hybrids, or to introduce modern farming practices. There were no logistically efficient procurement models for fruits and vegetables that could be built on by the company. These apart, there were simply not enough quantities of tomato available even if the grown varieties/hybrids were procured from the open market. The total Punjab tomato crop was 28000 tons, available over a 25-28 day period, while PepsiCo required at least 40000 tons of tomato to operate its factory, which had a gigantic capacity of 39 tons fresh fruit per hour. The company required this intake over a minimum 55-day time frame, and in 1989, the season in Punjab did not last beyond 28 days. Sceptics had expressed doubts over the feasibility of the Zahura tomato processing plant, and had said that it would remain a museum piece! There were formidable challenges before the company and nothing short of a horticultural revolution was required to solve the problem. There was no choice but to alter the tomato productio n and logistics situation in Punjab. This led to the birth of PepsiCos backward linkage with farmers of Punjab. PepsiCo follows the contract farming method described earlier, where the grower plants the companys crops on his land, and the company provides selected inputs like seeds/saplings, agricultural practices, and regular inspection of the crop and advisory services on crop management. The PepsiCo model of contract farming, measured in terms of new options for farmers, productivity increases, and the introduction of modern technology, has been an unparalleled success. The company focused on developing region- and desired produce-specific research, and extensive extension services. It was thus successful in bringing about a drastic change in the Punjab farmers production system towards its objective of ensuring supply of right produce at the right time in required quantities to its processing plant. Another important factor in PepsiCos success is the strategic partnership of the company with local bodies like the Punjab Agricultural University (PAU) and Punjab Agro Industries Corporation Ltd. (PAIC). Right from the beginning, PepsiCo knew that changing the mindset and winning the confidence of farmers would not be an easy task for outsiders. The companys unique partnership with PAU and PAIC fuelled its growth in Punjab. Pepsi believes that its snacks food has given a great fillip to potato cultivation in India. Each year it buys thousand of tons of potatoes from Punjab, Himachal Pradesh and from places as far away as Karnataka. Local potato varieties are good are good for table purpose but unfortunately not good for chip making because of their high moisture and sugar content , which causes browning in chips. So Pepsi imported six processing varieties, some of the best varieties of mini-tubes, from its own Pepsi facility in the united states. They gave them to the central potato research institute(CPRI) in Shimla for testing. There is a restriction o n the import of potato seeds because it is a vegetatively propagated crop; a disease will be passed on to the offspring. The CRPI certified and released five varieties for trials and cultivation. They are high on solids, their sugar levels are low and they are good on colour and uniform in size. Pepsi began multiplying the seed through tissue culture at their research farm in 1995. The phenomenon increase in yield has led to doubling of farmers income to about 30,000 per hector. Success in tomato processing is being repeated in chilies. More than 1700 farmer in about 5 Punjab district have planted Pepsi chillies .This is remarkable not due to the number of farmer who have planted chillies, but the fact that until Pepsi came in the picture ,there was almost no commercial chilli farming in Punjab as it was not economically viable. The average chilli yield was 5 tons per hectare. with the Pepsi technology and varieties the yield has short up four times about 20 tons per hectare. PepsiCos success is a result of the companys strategy to experiment with tomato and chilli varieties from around the world and develop from these their own varieties that work best of processing under local agro-conditions. In chillies, for example the company imported more than a hundred varieties from the united states, Korea , Holland, Indonesia, Taiwan and from India. They planted these on their research farm. Through tissue culture and other techniques, their scientist eventually evolved five or six varieties that have traits price the most for paste making-yields weight, size, solids, colour, pungency, resistance to disease- trials that are best under the states agro climatic conditions Pepsi produced several millions diseases free chilli plantlets at its farm and supplies them to the farmers with a buy-back guarantee at a predetermined price. Pepsico soon hope to get into ginger paste, garlic paste and the processing of several fruits like mangoes and guava to spread their agribusiness operation to other part of India. Pepsico operation in India are many and varied in addition to its many beverage business l,, the company has a modern rice plant in Sonipat Haryana, a joint venture project in the Tamil Nadu for manufacture of polyester chips and pre-forms used in making PET bottles and a canning factory in Maharashtra. In 2006 some problem had faced Pepsi due to phosphoric acid in this cold drink. This cold drink damage the stomach. They also desolve the calcium in the bones, making them frangile, and one another chemical added to cold drinks is ethelene glycol. And anti-freeze compound so that soft drink can consumed really chilled but it is known to cause of cancer. To coner the beta test of all the above additives, cold drinks contains an excessive amount of sugar 8 to 9 Tea spoon full per 300 ml bottle. It also create heart problem and of course acid and sugar also promote tooth decay. After that public mind had become Pepsi h ave made us mental slaves. They are destroying our health and destroying our environment of country .Their deprising drinking water and destroying their livelihood their brazenly breaking the law of the country yet the government is not taking action against them. Therefore Indian public think we must act and they join the growing country wide movement against pepsi.They took put a rally against pepsi on 16 february 2006 and many colleges and organization declare our environment is a pepsi free zone .