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Pepsi Company Advantages and Disadvantages Essay


Introduction

PepsiCo is a multinational company that makes food and beverages. It markets and distributes snack foods, among others. The company was formed in merger between Frito-Lay and Pepsi-Cola. Over the years, it has expanded its operation with acquisition of other brands such as Tropicana, Gatorade and Quaker Oats. In addition, it is considered to be among the best in production of snacks, beverages and foods.

It employs more than 285000 workers all over the world. Moreover, it has received various awards for participation in business development. It is also quite important to note that it generates over $60 billion annually. This paper will explore PepsiCo, its background, problems, advantages and disadvantages (PepsiCo Inc., 2011, p. 1).

Background

This company began as Pepsi back in 1890s when its recipe was first made. This development was made by Caleb Bradham and New Bern. In 1898, it was named Pepsi-Cola and then registered in 1902. Later on, in 1919, it was incorporated in Delaware. Ownership of the business changed hands between 1920 and 1940.

Further expansions in 1960s led to the merger with Fritos in 1965. This changed its name to PepsiCo. The company has acquired several companies during this period. These include Yum, Tropicana and Gatorade, among others (PepsiCo Inc., 2011, p. 1).

Discussion

PepsiCo employs the strategy of acquisition to its advantage. In addition, the company has expanded its lines of operations with involvement in food snacks, and beverages, foods, as well as soft drinks. This gives them the ability to serve a wider range of customers and hence improve profitability. This is quite evident in their recent revenues results, which surpassed that of Coca Cola. PepsiCo is now considered as one of the largest food industries in the globe (Heizer & Render, 2011, pp.).

Advantages

The company has instituted several activities aimed at giving back to society. These are community development initiatives such as PepsiCo foundation, among others. The foundation funds several initiatives. These include disaster response, associate programs and grants.

Others include funding of education, provision of safe water and community empowerment. Further developments include environmental awareness. PepsiCo values environmental sustainability. In this regard, it has initiated projects, which include preservation of water resources, minimization of land pollution, and reduction of carbon footprint, as well as responsible usage of natural resources (Heizer & Render, 2011, pp.).

Disadvantages

The company receives criticism over its environmental conservation plan. This is mainly because of the plastic bottles used in packaging their products. Further improvement on this is required for justification of claims. Moreover, management strategies have raised concern over its reaction to criticism on health and environmental issues.

Conclusion

PepsiCo is a multinational company that deals in snack food manufacturing and beverages, among others. It also markets and distributes these products. The company began as Pepsi back in 1890s when its recipe was first made. The founders of this recipe were Caleb Bradham and New Bern.

Further expansions in 1960s led to merger with Fritos in 1965. The company has acquired several companies during this period. These include Yum, Tropicana and Gatorade, among others. In essence, PepsiCo employs acquisitions to its advantage. The company funds initiatives such as education provision of safe water, and empowerment of community. However, it also receives criticism over actions in environmental awareness (PepsiCo Inc., 2011, p. 1).

Reference List

Heizer, J. & Render, B. (2011). Operations management (10th ed.). Boston, MA: Prentice-Hall.

PepsiCo Inc. (2011). PepsiCo Foundation. pepsico. Web.

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IvyPanda. (2020, May 15). Pepsi Company Advantages and Disadvantages. Retrieved from https://ivypanda.com/essays/pepsico/

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"Pepsi Company Advantages and Disadvantages." IvyPanda, 15 May 2020, ivypanda.com/essays/pepsico/.

1. IvyPanda. "Pepsi Company Advantages and Disadvantages." May 15, 2020. https://ivypanda.com/essays/pepsico/.


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IvyPanda. "Pepsi Company Advantages and Disadvantages." May 15, 2020. https://ivypanda.com/essays/pepsico/.

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IvyPanda. 2020. "Pepsi Company Advantages and Disadvantages." May 15, 2020. https://ivypanda.com/essays/pepsico/.

References

IvyPanda. (2020) 'Pepsi Company Advantages and Disadvantages'. 15 May.

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