PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.

Mission

“PepsiCo’s 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.”

Vision

"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’s vision is to put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose

“At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.”

Products

               PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 22 different product lines that each generate more than $1 billion in annual retail sales. Its brands stand for quality and are respected household names — Pepsi-Cola, Mountain Dew, Lay's, Gatorade, Tropicana, 7Up, Doritos, Lipton Teas, Quaker Foods,  Cheetos , Mirinda, Ruffles, Aquafina, Pepsi Max, Tostitos, Sierra Mist, Fritos, and Walker’s. Its brands stand for quality and are respected household names — Pepsi-Cola, Lay's, Quaker Oats, Tropicana, Gatorade, to name but a few — and they continue to build a portfolio of enjoyable and healthier foods and beverages for their consumers in more than 200 countries.

Divisions

                Beginning in the first quarter of 2011, PepsiCo realigned certain parts of  reportable divisions to reflect changes in management responsibility. As a result, Quaker snacks business in North America is being reported within  Quaker Foods North America (QFNA) division as of the beginning of our 2011 fiscal year. Before this change, Quaker snacks in North America were reported as part of Frito-Lay North America (FLNA) division. Additionally, as of the beginning of the first quarter of 2011,  South Africa snacks business is being reported within Europe division. Prior to this change, this business was reported as part of Asia, the Middle East & Africa (AMEA) division.
These changes did not impact other existing reportable divisions of PepsiCo.  Historical division reporting is being reclassified  to reflect the new organizational structure.
PepsiCo Americas Foods (PAF) includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of our Latin America food and snack businesses (LAF), including our Sabritas and Gamesa businesses in Mexico.
PepsiCo Americas Beverages (PAB) includes PepsiCo Beverages Americas and Pepsi Beverages Company.
PepsiCo Europe includes all beverage, food and snack businesses in Europe.
PepsiCo Asia, Middle East & Africa (AMEA) includes all beverage, food and snack businesses in AMEA.

Key Figures

Revenue	US$ 66.504 billion (2011)
Operating income	US$ 9.633 billion (2011)[2]
Net income	US$ 6.462 billion (2011)[2]
Total assets	US$ 72.882 billion (2011)[2]
Total equity	US$ 20.899 billion (2011)[2]
Employees	297,000 (2011)[2]

Organization Structure & Culture

                       Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 297,000 people worldwide as of 2011.At  Pepsico, the managers and leaders have identified The relationship that exists between themselves and the employees.In this company, the leaders and managers usually use information elements in supporting the employees' decisionmaking for improvement of the working condition.Employee's involvement in decision making especially in regard to their working conditions and environment is a key to ensuring that a healthy culture is developed in an organization Managers and leaders involve all levels of management as well as the employees on the decision making process and they always encourage open and participatory decision making process.Leaders and managers jointly perform the management function which includes planning, budgeting, evaluating and facilitating of organizational resources .While formulating the plans, employees are consulted and their views incorporated in the overall plans of the company and they also aid the managers and leaders in coming up with forecasted budgets for a particular period of operations.Managers of Pepsico are efficient and carry out their leadership functions effectively. This in turn motivates the employees and they willingly follow the leaders.

SWOT ANALYSIS

Strengths

·         Branding - One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of the world, ranked according to Interbrand. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay’s Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water, Cheetos Cheese Flavored Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, and Sierra Mist.

·         The strength of these brands is evident in PepsiCo’s presence in over 200 countries. The company has the largest market share in the US beverage at 39%, and snack food market at 25%. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company

·         Diversification - PepsiCo’s diversification is obvious in that the fact that each of its top 22 brands generates annual sales of over $1,000 million. PepsiCo’s arsenal also includes ready-to-drink teas, juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes.This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates.

·         Distribution - The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services.

Weaknesses

·         Overdependence on Wal-Mart - Sales to Wal-Mart represent approximately 12% of PepsiCo’s total net revenue. Wal-Mart is PepsiCo’s largest customer. As a result PepsiCo’s fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a higher profit margin than national brands. Wal-Mart’s low price themes put pressure on PepsiCo to hold down prices.

·         Overdependence on US Markets - Despite its international presence, 52% of its revenues originate in the US. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions, and labor strikes. Large US customers could exploit PepsiCo’s lack of bargaining power and negatively impact its revenues.

·         Low Productivity - In 2008 PepsiCo had approximately 198,000 employees. Its revenue per employee was $219,439, which was lower that its competitors. This may indicate comparatively low productivity on the part of PepsiCo employees.

Opportunities

·         Broadening of Product Base - PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russia’s leading Juice Company, Lebedyansky, and V Wwater in the United Kingdom. It continues to broaden its product base by introducing TrueNorth Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers.

·         International Expansion - PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico.

·         Growing Savory Snack and Bottled Water market in US - PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina, and Propel are well established products and in a position to ride the upward crest. PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold Gold pretzels, Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of $28 million.

Threats

·         Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline.

·         Potential Negative Impact of Government Regulations - It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates. Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. If the company has to comply with a related regulation and add warning labels or place warnings in certain locations where its products are sold, a negative impact may result for PepsiCo.

·         Intense Competition - The Coca-Cola Company is PepsiCo’s primary competitors. But others include Nestlé, Groupe Danone and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Resently Coca-Cola passed PepsiCo in Juice sales.

·         Potential Disruption Due to Labor Unrest - Based upon recent history, PepsiCo may be vulnerable to strikes and other labor disputes. In 2008 a strike in India shut down production for nearly an entire month. This disrupted both manufacturing and distribution.

PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees. Take a journey through our past and see the key milestones that define PepsiCo.n a major tool that has created a culture of hard work and innovation